Marqeta (NASDAQ: MQ ) experienced its most challenging earnings release in Q3’24 as the firm faces heightened regulatory oversight, which has resulted in the delay of 15 of the firm’s programs. Management significantly lowered its eQ4’24 guidance to 10-12% revenueMichael Del Monte is a buy-side equity analyst with over 5 years of industry experience. Prior to working in the investment management industry, Michael spent over a decade in professional services working in industries that range from O&G, OFS, Mi ...

Growth - Marqeta's Q2 revenue declined 46% YoY to $125M, primarily due to the Block contract renewal which impacted revenue presentation and reduced pricing, negatively affecting growth rate by 60pp [4] - Despite revenue decline, Total Processing Volume (TPV) grew 32% YoY and 6% QoQ to $70.6B in Q2, indicating strong platform performance and durable client base [4] - Non-Block TPV grew more than 15pp faster than Block TPV in Q2, with financial services vertical non-Block TPV growing over 100% YoY [5][6] - Management expects revenue to return to positive growth in Q3 and Q4, with projected growth of 16% to 18% YoY, and TPV growth to remain robust at over 30% YoY [6] Profitability - Q2 Gross Profit declined 6% YoY to $79M, with Gross Margin at 63%, down 8pp QoQ due to reduced pricing from Block renewal and lower card network incentives [7] - Take Rate declined to 0.11% in Q2, down 5bps YoY and 2bps QoQ, reflecting potential pricing power loss [8] - Management expects Gross Profit growth to accelerate in H2, with Q3 growth projected at 25% to 27% and Q4 at 22% to 24%, with Gross Margin expected to be in the low 70s [8] - Adjusted EBITDA turned negative in Q2 at $(2)M, but is expected to turn positive in Q3 with margins of 4% to 6%, and further improve to 6% to 8% in Q4 [9][10] Financial Health - Marqeta has a Net Cash position of $1.2B with virtually zero debt, representing 40% of its current Market Cap of $2.7B [12] - The company has been aggressively buying back shares, repurchasing $59M worth of stock in Q2, reducing shares outstanding by about 6% since May last year [13] - Trailing twelve-month Free Cash Flow reached a record $81M in Q2, representing a FCF Margin of 17% [13] Valuation - Marqeta stock is down 80% from its IPO price, trading at EV to Revenue and EV to Gross Profit multiples of 3.3x and 4.9x, respectively, which is considered cheap given its growth trajectory and financial health [14] - A base-case 12-month price target of $8.54 per share is projected, representing an upside potential of about 64% [15][16] Strategic Partnerships - Marqeta signed a 5-year deal with Varo Bank to become its issuer processor, powering over 5M cards [6] - The company partnered with Affirm and Visa to support Visa Flexible Credential, allowing cardholders to toggle between different payment methods [6] - Marqeta also signed with Zoho to deliver expense management and embedded finance solutions for over 700K businesses [6]

Marqeta, Inc. (NASDAQ:MQ) Q2 2024 Earnings Conference Call August 7, 2024 4:30 PM ET Company Participants Stacey Finerman - VP, Investor Relations Simon Khalaf - CEO Mike Milotich - CFO Conference Call Participants Timothy Chiodo - UBS Tien-Tsin Huang - JPMorgan Darrin Peller - Wolfe Research Craig Maurer - FT Partners Ramsey El-Assal - Barclays Will Nance - Goldman Sachs Andrew Schmidt - Citi Andrew Bauch - Wells Fargo Bryan Keane - Deutsche Bank Operator Welcome to the Marqeta Second Quarter 2024 Earnings ...

Analysts on Wall Street project that Marqeta (MQ) will announce quarterly earnings of $0.16 per share in its forthcoming report, representing an increase of 328.6% year over year. Revenues are projected to reach $121.29 million, declining 47.5% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Before a company announces its ...

J Studios/DigitalVision via Getty Images Introduction Marqeta (NASDAQ:MQ) — a modern card issuing and payment solutions platform — is down nearly 20% YTD while the broader markets are up about 10% YTD. Given the stock's poor performance, some investors might have lost their confidence and patience in Marqeta stock. Perhaps, selling Marqeta right now and investing the proceeds in meme stocks like GameStop (GME) or AMC (AMC) might be a good idea... Jokes aside, I'm here to share seven reasons why investors mi ...

Marqeta’s latest results and commentary showed momentum in the company’s transaction processing operations — and opportunity in nascent markets such as earned wage access. CEO Simon Khalaf said the company’s efforts and value for its corporate clients span the “spectrum of integrated payment options” across debit, installment payments and a personalized experience for their own end customers.He noted that during a single day during the quarter, the company processed more than $1 billion on total payment vol ...

For the quarter ended March 2024, Marqeta (MQ) reported revenue of $117.97 million, down 45.7% over the same period last year. EPS came in at -$0.07, compared to -$0.13 in the year-ago quarter.The reported revenue represents a surprise of -0.26% over the Zacks Consensus Estimate of $118.27 million. With the consensus EPS estimate being -$0.08, the EPS surprise was +12.50%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street e ...

Marqeta (MQ) came out with a quarterly loss of $0.07 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 12.50%. A quarter ago, it was expected that this transaction processing services provider would post a loss of $0.09 per share when it actually produced a loss of $0.08, delivering a surprise of 11.11%.Over the last four quarters, t ...

(Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-40465 Marqeta, Inc. (Exact name of registrant as specified in its charter) Delaware 27-4306690 (State or ...

MARQETA REPORTS FIRST QUARTER 2024 FINANCIAL RESULTS The global modern card issuer reported $67 billion in Total Processing Volume with Net Revenue of $118 million in the first quarter of 2024. OAKLAND, Calif. – May 7, 2024 - Marqeta, Inc. (NASDAQ: MQ), the global modern card issuing platform, today reported financial results for the first quarter ended March 31, 2024. The Company reported Total Processing Volume (TPV) of $67 billion, representing a year-over-year increase of 33% driven by volume growth acr ...