Recent Buy – ADYEN

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A quick update on a recent buy in my portfolio.

I initiated a new starter position in Adyen NV (ADYEN.AS) (ADYYF). I bought the OTC ticker ADYYF @ $1,076.48. Adyen is a high quality, high growth payment solutions company based in Netherlands. Last few weeks I’ve become very interested in learning about the fintech space and Adyen stands out as a great company that has grown a lot since it was founded in 2006, but still growing at a remarkable rate (top line growth rate expected around 30%) as the TAM is huge. Some quick highlights that I like about Adyen:

  • Founder-led by Pieter van der Does, a great leader
  • Timeline: Founded in 2006; has been profitable since 2011; went public in 2018
  • Customers are merchants. Won high profile global leaders early in life such as Facebook, Microsoft, Booking, eBay, Spotify, Uber, KLM etc. (ICONIQ, Mark Zukerberg’s investment arm, was an early investor when co was still private)
  • Global omnichannel processing: global availability & can process almost every currency.
  • Develops a modern full stack and maintains full control to make payment processing seamless & minimize failures. Does not plan on buying other companies and dealing with problems on integrating different systems.
  • Pace of innovation – new software release every week
  • Q1 2020 financials stand at: Processed vol of €67B (+38% YoY), Net Revenue of €135M (34% YoY), EBITDA €63M (47% margin & +16% YoY), FCF conversion 93%.

I have been capturing data about Adyen in this Twitter thread:

Full Disclosure: Long ADYYF. Our full list of holdings is available here.