Adyen N.V.

Good afternoon and welcome to IGN's 2022 H2 earnings call. We're delighted to be joined by Pieter van der Does, our co-founder and CEO, and Ingo Uytdaag, our CFO today, to talk you through the financial results for the second half of the year. We're going to structure the call as follows. We'll start with a short fireside chat hosted by myself with Peter and Ingo, after which we'll open it up for Q&A hosted by Sana. If you have any questions, please feel free to submit them already using the Q&A functionality of Zoom. And when submitting the questions, please make sure to use your full name and the firm you represent. Please do not use the raise hand function since we won't be using this today.

I hope that household memo got loud and clear, but before we dive into the fireside chat and Q&A, we once more, and as you're used to from us, would like to share a short video that the team prepared highlighting the key developments of the second half of the year for you. Enjoy.

Welcome to Adyen's H2 2022 earnings call. We look forward to discussing our commercial, product, and team updates from the last period. There's no doubt that the past six months presented a range of global challenges for society and commerce alike. Despite the economy's volatility, Adyen's disciplined history placed us at a fortunate position at the start of H2 and enabled this half to serve as a key investment period. As planned, we were able to continue laying the groundwork for our next growth phase. Following this approach, we closed 2022 with a strong set of results. Looking at it by the numbers, in H2 we processed 421.7 billion euros on our single platform, which is an increase of 41% year-on-year. In line with previous cycles, more than 80% of these volumes came from customers who were already on our platform when the period began, and we again achieved less than 1% of volume churn. Net revenue amounted to 721.7 million euros, up 30% year-on-year. Adyen is moving with momentum. Each period, we report even broader global reach, and H2 proved to be no exception. Our point-of-sale volumes were 67.6 billion euros, up 62% year-on-year and comprising 16% of total processed volume. This figure underlines the continued appetite for advanced multi-channel experiences and the unique ability of our single platform to meet this need. In order to remain at the cutting edge of consumer journeys, in H2 we relentlessly sought new avenues for innovation. This resulted in the launch of several product iterations with an online checkout, the rolling out of our new terminals, and piloting our embedded financial services suite. While we're proud of these achievements, our sights remain on our long-term horizon. From this vantage, we see our significant runway ahead and a journey we're only at the outset of. The key to reaching our technical and commercial ambitions is maintaining our speed, To keep moving at this pace, H2 required accelerated headcount growth. By the end of 2022, our motivated team totaled 3,332 FTE, with 58% of our new hires sitting in tech roles spanning both established and young initiatives. Being diligent about both the quantity and quality of these hires further situated us to capitalize on the sizable opportunity at hand. Investments in the team were the primary driver of half-year EBITDA margin evolution, which landed at 52%. We remain confident in the long-term return on this investment period. Together, we are laying the bricks needed to reach Adyen's next level.