RiverPark Advisors, an investment advisory firm and sponsor of the RiverPark family of mutual funds, released its “RiverPark Large Growth Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, markets performed poorly, and the S&P 500 index (“S&P”) and the Russell 1000 Growth Index (RLG) declined -3.27% and -3.13%, respectively and Institutional Class (RPX) declined -4.11%. Year to date, RPX has returned 26.59% compared to the SPX and the RLG’s 13.07% and 24.98% returns, respectively. In addition, please check the fund’s top five holdings to know its best picks in 2023.
RiverPark Advisors highlighted stocks like Adyen N.V. (OTC:ADYEY) in the third quarter 2023 investor letter. Headquartered in Amsterdam, the Netherlands, Adyen N.V. (OTC:ADYEY) is a payments platform. On November 16, 2023, Adyen N.V. (OTC:ADYEY) stock closed at $11.02 per share. One-month return of Adyen N.V. (OTC:ADYEY) was 52.65%, and its shares lost 30.10% of their value over the last 52 weeks. Adyen N.V. (OTC:ADYEY) has a market capitalization of $34.673 billion.
RiverPark Advisors made the following comment about Adyen N.V. (OTC:ADYEY) in its Q3 2023 investor letter:
“Adyen N.V. (OTC:ADYEY): ADYEN was our top detractor in the quarter after reporting results for the first half of 2023 that were below investors’ expectations on both the top and bottom lines. Transaction volume growth of 23% was 8% below expectations driving 21% revenue growth, which was also short of expectations. The miss came from a slowdown in North America (+20% in 1H23 down from 45% last period), which the company attributed to competitive pricing in the digital segment, greater customer focus on cost controls due to inflation and higher interest rates, and sales team capacity constraints due to lower-than-expected hiring. The revenue shortfall led to a 13% miss in EBITDA. Adyen management believes these headwinds are transitory and kept its medium-term target of mid-20’s to low 30’s revenue growth.
The company operates a global payments platform, integrating the full payments stack to serve modern global merchants. Unlike many of its legacy peers, Adyen’s roots are in technology designed specifically for multi-platform sellers. The company’s platform was fully built in-house on a single code base and operates as a single, integrated end-to-end network, giving it an advantage over competitors that have separate platforms for gateway, risk management, processing, issuing, acquiring and settlement. The company’s single platform also allows its merchant customers to use one payment service provider globally across all commerce channels (in-store, on the web, and on mobile devices), providing them lower payment costs, a single back end, a single contract and better visibility of end customers.
We believe that the transition to next-generation, single-provider, omni-channel payment processing is in its infancy, and despite Adyen’s revenue shortfall, we believe the company continues to take market share against its competitors. The company should be able to re-accelerate revenue growth in the coming months as it rolls out more products and features, and we expect margins to expand as the company exits an accelerated hiring period.”
A wide range of payment solutions displayed on the shelves of a commerce store.
Adyen N.V. (OTC:ADYEY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. In addition, please check out our hedge fund investor letters Q3 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
