Payments processor Adyen NV’s growth view isn’t being understood by the market, its co-chief executive said following a selloff in the shares that erased $23 billion of its market value.
(Bloomberg) — Payments processor Adyen NV’s growth view isn’t being understood by the market, its co-chief executive said following a selloff in the shares that erased $23 billion of its market value.
The fintech company announced it would host an investor day on Nov. 8 to discuss the investments it’s making and how it plans to maintain growth.
“We certainly need to better explain this, otherwise we wouldn’t have seen this drop in share price,” co-Chief Executive Office Ingo Uytdehaage said at the Goldman Sachs conference in San Francisco on Tuesday.
Read more: Adyen Plans November Investor Day After $23 Billion Wipeout
Adyen hasn’t lost any of its large customers, Chief Financial Officer Ethan Tandowsky said at the same conference.
Adyen’s net revenue growth has been impacted by increased price competition in North America. One of the things that has been misunderstood is that in the first half year Adyen continued to add market share in the US, “but it’s indeed at a lower rate than the half years before,” Uytdehaage said.
Adyen has been a fintech favorite after it delivered revenue growth of at least 26% in every half year since its 2018 listing. It surprised the market at half-yearly results last month with its slowest net revenue growth since it became a public company, triggering a plunge in its shares.
Visibility into Adyen’s growth has been clouded by its limited financial communication, according to industry watchers.
Adyen only reports on a half-year basis, compared with peers that disclose earnings every quarter, and analysts have often depended on merchant data and commentary from rival payment-processing companies for signals on its growth.
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