Adyen N.V.

Hi, everyone, and welcome to the Audien H2 2021 earnings call. My name is Ethan Tandowski. I'll be your moderator today, and I'm joined by our CEO, Peter von der Dus, and our CFO, Ingo. We're excited to talk you through the financial performance from the second half of the year. And to get started, like we've done in past Earnings Call, we'll start with a short movie, which will take you through some of the developments we've seen in the industry and trends we've seen on our platform. Hope you enjoy it.

Hi, everyone, and welcome to... The results for the past half year were strong, and the indicators of sustainable profitable growth remain intact. We processed $300 billion in volume in H2 2021, and $516 billion for the full year. Net revenue for the second half was $556 million and $1 billion for the full year. 64% and 63% for the full year. As in previous periods, we saw merchants already on the platform contribute over 80% of volume growth and volume churn remained below 1%. in the digitalization of economies around the world over the last year. For these results, we would like to highlight a few major proofs to us that we're on the right track in executing our strategy. The contribution of net revenue coming from regions outside of EMEA was above 40% for the first time in Adyen's history. We see this as a great sign for the continued geographical diversification of the business. Point-of-sale volumes are once again outpacing e-commerce volumes, growing 97% year-on-year for the period. Businesses are looking at this as true now more than ever in an increasing number of verticals. This acceleration of digitalization is not just anecdotal, it's happening everywhere. In APAC, the payment culture is more digital than ever, bringing an increasing amount of overlap regionally to what was historically the most fragmented payment market. In EMEA, the initial shock of the pandemic resulted in businesses prioritizing quick out-of-pending fall. In Latin, the shift towards online commerce seems unstoppable and we see new payment methods pop up and quickly gaining share as they're able to democratize access to this new digital economy. In North America, unified commerce is more than ever top of mind for merchants across an increasing number of verticals. Delivery, curbside pickup and contactless payments are becoming more transformation and it's now a critical part of RFPs from businesses. On products, we're continuously improving our adding for platforms offering and added score, which employs network analysis and machine learning to target the multi-sided fraud that is specific to platforms. We also launched a new range of handheld Android point-of-sale devices, providing merchants with the flexible options we're looking to ramp up hiring in 2022. This is partially why we're announcing today the launch of two new tech hubs in Madrid and Chicago, locations where we'll build engineering and product teams. All in all, we look back on a strong set of results from the second half of 2021 and look forward to what the next year has to bring.

Great. Well, we clearly have a lot to talk about, so we'll dive next into a discussion with Peter and Ingo, where we'll touch on some of the key points. And following that, we'll move to a Q&A session. Just as a reminder, you can already start to ask your questions using the Q&A functionality at the bottom of your screen. And please do include your full name and firm you represent.