Adyen snaps up Klarna CFO

Adyen $ADYEN surpassed PayPal $PYPL in payment volume last quarter, reporting 18% revenue growth in 2023, below expectations. Adyen's guidance for 2024 is 22% growth at the midpoint. This marks the first time its growth fell below 20% since its IPO.

Adyen reported a 23% year-on-year net revenue increase to €738.1M in Q3, with processed volume up 30% to €451.1B. The company plans to accelerate investments, targeting a 50% EBITDA margin by 2026 and net revenue growth of 21-23%. Shares fell 10.87% to €844 on XETRA.

Adyen shares dropped 12% after lowering its 2026 core earnings margin target to 50% from 52% and removing its medium-term EBITDA goal. The company plans to hire 1,000-1,100 employees by 2026 to support expansion into billing and loyalty products. Despite a 23% revenue increase to €738.1 million and payment volumes exceeding estimates, the stock has fallen 40% year-to-date. Analysts noted the margin cut as a surprise. Adyen maintains its 2026 revenue growth target of 21%-23%.

Adyen reported Q3 net revenue of €738M, up 22% YoY, beating estimates. Payment volume grew 30% to €451B. Adyen lowered its 2026 EBITDA margin target to 50% from 52%, citing investments. The company confirmed 2026 revenue growth guidance of 21-23%.

Monness initiated coverage on Klarna (NYSE:KLAR) with a buy rating and $20 price target, projecting rising transaction margins and adjusted operating income. The stock has fallen 67% over the past year but is seen as undervalued. Analysts expect profitability this year, with revenue growth at 34%. Other firms have mixed ratings, citing guidance cuts and executive departures.

Affirm (AFRM) signed a multi-year deal with Sam's Club, Walmart's subsidiary, to become its pay-over-time provider. The stock closed down 1.51% at $72.40 on the announcement day. Affirm lost Walmart to Klarna in 2025, which contributed 5% of its GMV and 2% of adjusted operating income. The company is set to report fiscal first-quarter results on November 5.