Dutch Payment Unicorn Adyen Plans IPO On Euronext Amsterdam

The author (right) is balder now than he was in the above 2015 picture, But he is also in better shape (and apparently quite vain). 

Adyen, the payments unicorn based in Holland, intends to list on the Euronext Amsterdam exchange it announced today. In releases detailing its financial performance, Adyen reported huge transaction volume, growing net revenue, and material net income. All of that makes its offering quite interesting.

We’ll get more into the numbers in a moment, but the firm intends to make public investors pay up for its shares. As TechCrunch reported in the wake of its IPO news, Adyen is pushing for a new, higher valuation:

Adyen’s offering prospectus does not detail how much it plans to raise, or what sort of valuation it’s likely to reach in a public listing. It confirmed will be selling up to 15 percent of its shares, valued at a valuation of between €6 billion and €9 billion ($7 billion – $11 billion) after the IPO. We have reached out to the company for further detail on that front.

According to Crunchbase, the company’s valuation grew from $1.55 billion in 2014 to over $2.3 billion in 2015. Both figures are dramatically below what the firm intends to price at while going public.

Why does the firm think that it is worth such a healthy sum? A few reasons, which it details below:

What to make of all that is a good question. Let’s keep it simple.

As with most charts of this nature, we need to figure out which direction time flows (in this case, right to left) and then read down through the figures. In this case, the top lines detail pre-revenue, and the bottom lines explain profit results.

You can see from the top lines, in the first two numerical columns, that Adyen’s payment processing results have grown quickly. It added nearly €10 billion in volume in Q1’18 compared to its Q1’17 result. That was off the back of 400 million more transactions over the same period—a 50 percent gain on its Q1’17 result in the first quarter of this year.

From that, Adyen generated €74.4 million in net revenue, leading to €24.1 million in net income, up from €44.5 million in net revenue in the year-ago quarter and €14.1 million in net income. The firm also reported healthy Q1 free cash flow of €32.0 million and €18.5 million in the two first quarters, respectively.

Adyen is growing quickly and is quite profitable. Who knew that that was possible! More when we get better pricing information.

Top Image Credit: TechCrunch, via Flickr. CC By 2.0 license. Image has been cropped.