Adyen N.V.

Hi all and welcome to our H1 2022 earnings call. I'm here live from our Amsterdam office together with Ingo Uytenhagen, our CFO, and Ethan Tendowski, our Head of Group Finance, who will later on talk you through our results and key developments from the first half of the year. For now, a short note on the Q&A function. It's already enabled and you can start sending in your questions. Please do not forget to include your name and the firm you represent when sending these in. Before we dive into a conversation with Ethan and Ingo, the team has prepared a video for you that will show how we've been back here in the office and the results and key developments from the first half of the year. I hope you enjoyed as much as we did. Thank you.

Hello and welcome to our H1 2022 earnings call. We're excited to share the key developments from the first half of 2022. So let's get started. The highlight of the first half of 2022 was meeting with the Adyen team and our customers in person after connecting virtually for much of the last two years. The relationships we foster face to face are vital to scaling our culture, and founding principles of speed, flexibility, and innovation. Coming back together and into the office created an incredible buzz throughout the company. Our team and culture remain our focus, and we were able to accelerate our hiring pace. The Adyen team totaled 2,575 FTE at the end of H1 2022. On the product side, there were several exciting launches during the first half of the year. We made multiple investments in the unified commerce space to enable the most forward-thinking in-store customer journeys. We seized the opportunity to speed up innovation on the hardware side by releasing the first Adyen-designed terminals. Another launch was rolling out Tap to Pay on iPhone in collaboration with Apple, enabling businesses to accept contactless payments on an iPhone. While digital transformation was once a priority for select industries, the trend is quickly spreading. Seamless unified commerce journeys are a need to have across industries. With our advanced offering, we continue to service today's and tomorrow's most innovative brands. Another product innovation was expanding our offering for platforms by building an embedded financial product suite encompassing bank accounts, business financing, and card issuing. the opportunity in financial services is significant and we find ourselves uniquely well positioned to capitalize on it due to historical investments in our global licensing, product offering and strong team. This is an end-to-end solution accessible via a single integration and which leverages our own licensing framework. Within a shifting macro economic landscape we saw multiple longer term trends persist and are posting a strong set of results underscoring the resilience of our business model. On these trends in line with previous periods customers already on the platform contributed over 80% of volume growth. volume churn remained below 1% and we saw net revenue contributions continue to diversify across industries and regions as we successfully execute our land and expand strategy. We're a more global business every cycle. Now, let's dive into the financials. In H1 2022, we processed $345.8 billion on the single platform, growing 60% year-on-year. Of these, point-of-sale volumes were $44.9 billion and up 97% year-on-year, making up 13% of total processed volumes. These numbers are testament to the continued traction and increasing relevance of our unified commerce offering. Net revenue was $608.5 million, up 37% year-on-year. EBITDA was $356.3 million, up 31% year-on-year. EBITDA margin was 59% for the period. With travel restrictions lifted, travel and event costs returned as we were able to meet our customers and colleagues in person again. In addition, our commitment of 1% to the United Nations Sustainable Development Goals impacted our EBITDA margin. This pledge enables us to scale our impact, technology, and social responsibility programs in line with the business's growth. We continue to build ADIAN for the long term. We have a significant opportunity to capitalize on and a talented team in place. Our gaze is ahead and the time to execute is now.

Yeah, I think for all of us, that video just puts an instant smile on our face. I might be slightly biased, but looking at that video, Ingo, for an opening comment, what would you start with when you reflect on the first half of 2022?