Processing money electronically is a booming business. Adyen, which handles transactions for companies like Netflix, Spotify, and Uber has nearly tripled in value in just three years.
The Dutch company held a blockbuster initial public offering in June that valued the firm at €7 billion ($8.1 billion). Its market value has soared to €17 billion since then. Investors in its IPO have doubled their money in just two months.
Today, Adyen said net first-half profit jumped 75%, to €48.2 million, in its first earnings announcement as public company. The Amsterdam-based firm said it processed €70 billion worth of payments, up 43% from a year before, as its added new customers such as Dunkin’ Donuts and eBay, breaking up the e-commerce company’s long-term relationship with PayPal. Sales rose by 67%.
The 12-year-old company helps retailers process customer payments, whether in-store or online, and feed them through complicated payment networks rapidly. While the company operates around the world, more than half of the transactions it handles come from Europe.
Investors are increasingly bullish on payment companies, which benefit from the steady growth in electronic, cashless transactions. Analysts at Morgan Stanley recently said companies like Visa, PayPal, and Worldpay are among “the best businesses there are.” Payments may sound boring, but for investors the business provides the perfect mix of technological disruption and steady earnings.