Digital payments processor Stripe’s anticipated initial public offering (IPO) could still be a way off despite encouraging signs that the IPO market is ramping back up.
In January, Stripe said it would make a decision on an IPO within the year, planning to go public either through a direct listing or a transaction on the private market, such as a fundraising event or tender offer.
The company was valued at about $50 billion following its $6.5 billion fundraising round in March, a sharp decline from its peak $95 billion valuation a little over two years ago.
But with the fourth quarter rapidly approaching and no update from Stripe management on the IPO, disappointing results for the first half of 2023 from European rival Adyen could see Stripe push off an offering until 2024.
Although the Dutch payments solutions firm increased its 1H revenue by 21% year-over-year to €739.1 million, this represented the company’s slowest sales growth ever and was below the market expectation of 40% growth to about €853.6 million.
The company cited competition in key markets, including the United States, as behind its growth slowdown.
Its earnings before interest, taxes, depreciation and amortization (EBITDA) margin fell from 59% in the first half of 2022 to 43%.
Following its results last week, Adyen lost about €18 billion ($19.6 billion) of market value in a single day. Its shares traded down 8% at €802.80 just before noon in New York on Monday.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie