Stripe reports surge in revenues for Dublin-headquartered unit

Stripe’s Dublin-headquartered subsidiary recorded a near 70 per cent rise in revenues last year as more companies rushed to beef up their online offerings during the Covid-19 pandemic.

Newly-filed accounts for Stripe Payments International Holdings Ltd, which covers offices in cities including Dublin, Amsterdam, Berlin, London, Melbourne, Paris, Singapore and Tokyo, show turnover rose by $558 million (€480.8m) in 2020, jumping from $800 million to $1.35 billion.

The online payments company saw a corresponding surge in the cost of sales, which rose by over $475 million to $1.17 billion in 2020. Administrative expenses also grew, up $111 million to $316.5 million.

“Turnover and the associated cost of sales have increased due to growth in business from existing users, expansion into new markets and an increase in user-adoption in existing markets,” the company said in a note included in the accounts.

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“Administrative expenses have increased as a result of this growth in business, and the continued increase in headcount throughout the region,” it added.

Stripe reported a $135.5 million pre-tax loss in 2020. This compares to a $46.6 million profit in 2019, although last year’s gain was largely paper-based and a result of transfer pricing.

In 2018, Stripe’s Dublin-headquartered business recorded a $20.5 million loss. The following year all of the company’s international intellectual property (IP) was transferred to the Republic in a $10.95 billion move.

Valued at $95 billion, Stripe is one of the most valuable privately-owned companies globally. Its valuation has almost tripled since last year, partly on the back of a huge increase in businesses looking to use its product to take payments online. Overall more than 300,000 new businesses got started on the company’s platform during the Covid-19 pandemic.

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Founded in 2010 by Patrick and John Collison, Stripe was first declared a "unicorn" – a privately-owned company that is valued at more than $1 billion – in 2014. The company handles hundreds of billions of dollars in transactions each year for its clients, which includes well-known brands such as Amazon, Uber, Google and Zoom.

The company announced plans to create 1,000 jobs in the Republic in March following a $600 million investment from backers that include the Irish State. Just last month it committed to adding “hundreds” of additional software engineering roles over the next three years.

Stripe currently employs more than 4,000 people globally, including 400 in Dublin. Headcount at the international arm rose from 365 to 569 in 2020, with wages and salaries jumping from $50.3 million to $78.9 million.

In separately-filed accounts, Stripe's British subsidiary reported a sharp decline in turnover last year due primarily to foreign exchange movements. Stripe Payments UK Ltd recorded turnover of £123.2 million (€145m) in 2020, down from £184.5 million in 2019, a year in which turnover more than doubled.

Despite the decline in revenues, operating profits rose to £1.55 million last year, compared to £878,700 a year earlier with the business growing at the same rate as the rest of EMEA.

Stripe Payments UK received a £5.36 million contribution from the international business in 2020, and was provided with a further £4.3 million in capital in March 2021.