Marqeta, Inc. (NASDAQ:MQ) Q4 2021 Results Conference Call March 9, 2022 4:30 PM ET Company Participants Stacey Finerman - Vice President, Investor Relations Jason Gardner - Founder & Chief Executive Officer Mike Milotich - Chief Financial Officer Conference Call Participants Sanjay Sakhrani - KBW Mike Ng - Goldman Sachs Ramsey El-Assal - Barclays Dan Dolev - Mizuho Tien-Tsin Huang - JPMorgan Andrew Jeffrey - Truist Andrew Bauch - SMBC Nikko Bob Napoli - William Blair Ashwin Shirvaikar - Citi Alex Markgraff ...

Financial Data and Key Metrics Changes - Total processing volume (TPV) reached $28 billion, a 60% increase compared to Q3 2020 [10][34] - Net revenue increased by 56% to $132 million from $84 million in Q3 2020 [10][34] - Gross profit rose by 67% year-over-year to $59 million, with gross margin increasing from 42% to 45% [39][40] - GAAP net loss was $46 million, with adjusted EBITDA at negative $4.9 million compared to positive $686,000 in Q3 2020 [43][44] Business Line Data and Key Metrics Changes - Growth was driven by digital banking and buy now pay later (BNPL) customers, with BNPL growing over 300% year-over-year [34][59] - Non-top five customers grew 226% in volume compared to Q3 2020 [38] - Expense management vertical grew 164% year-over-year [60] Market Data and Key Metrics Changes - European transactions processed grew over 340% year-over-year, with the number of European customers doubling since September 30, 2020 [18][65] - The company is enabled in 36 countries worldwide, with significant growth in Australia and Europe [18][65] Company Strategy and Development Direction - Four key strategic pillars for growth: adding new customers, expanding relationships with existing customers, broadening global reach, and expanding the ecosystem [16][45] - Focus on modern card issuing as a critical area for growth, with an estimated global market of $30 trillion [15][21] - Recent partnerships with companies like Bill.com and crypto innovators highlight the strategic direction towards integrating modern card issuing with various payment solutions [13][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the sustainability of growth, citing strong year-over-year performance and ongoing demand in the BNPL and digital banking sectors [50][78] - The company plans to continue investing in products, technology, and talent to capitalize on market opportunities [46][78] Other Important Information - Leadership change announced with Vidya Peters becoming Chief Operating Officer, combining marketing, revenue, and program management functions [24][25] - The company aims to enhance customer experience through a unified go-to-market strategy [30][33] Q&A Session Summary Question: Growth of Buy Now Pay Later - Management confirmed BNPL grew over 300% in Q3, with strong customer engagement [54] Question: Growth in Other Sectors - Digital banking and expense management also showed significant growth, with expense management up 164% year-over-year [59] Question: International Strategy and Growth - Management highlighted strong growth in Europe, with a focus on modern card issuing and expanding into new markets [61][65] Question: Competitive Environment - Management emphasized Marqeta's leadership in modern card issuing and the importance of scale and trust in customer relationships [71][75] Question: 2022 Outlook - Management expects a larger revenue base entering 2022 but does not anticipate growth rates as high as in 2021 [78] Question: Opportunities in Traditional Consumer Cards - Management is beginning to expand into the credit card space, focusing on rethinking customer experiences [102][104] Question: Onboarding New Clients - Onboarding time varies significantly based on industry and complexity, but the company emphasizes a strong partnership approach [112][114]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 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 ...

Marqeta, Inc. (NASDAQ:MQ) Q2 2021 Earnings Conference Call August 11, 2021 4:30 PM ET Company Participants Stacey Finerman - Vice President of Investor Relations Jason Gardner - founder and CEO Tripp Faix - Chief financial officer Conference Call Participants Tien-Tsin Huang - JPMorgan Josh Beck - KeyBanc Ramsey El-Assal - Barclays Darren Keller - Wolf Research Ashwin Shirvaikar - Citi Bob Napoli - William Blair Craig Moore - Anonymous Dan Dolev - Mizuho Andrew Jeffrey - Truist Operator Good afternoon ladie ...

Financial Performance - Total Processing Volume (TPV) for Q2 2021 reached $26.52 billion, a 76% increase from $15.08 billion in Q2 2020[133] - Net revenue for Q2 2021 was $52.9 million, representing a 76% increase compared to the same period in 2020[126] - Gross profit for Q2 2021 was $19.4 million, up 70% from the previous year[126] - The net loss for Q2 2021 was $68.55 million, compared to a net loss of $7.11 million in Q2 2020, resulting in a net loss margin of 56%[133] - Adjusted EBITDA for Q2 2021 was $(10.64) million, with an adjusted EBITDA margin of (9%) compared to (4%) in Q2 2020[133] - Net revenue for the three months ended June 30, 2021, was $122.3 million, a 76% increase from $69.4 million in the same period of 2020[155] - Total Processing Volume (TPV) for the three months ended June 30, 2021, reached $26.5 billion, up 76% from $15.1 billion in the same period of 2020[155] - Gross profit increased by $19.4 million, or 70%, for the three months ended June 30, 2021, resulting in a gross margin of 38%[162] - The net loss for the three months ended June 30, 2021, was $68.6 million, compared to a net loss of $7.1 million in the same period of 2020[170] - Total net revenue for the six months ended June 30, 2021, was $230.2 million, reflecting a 95% increase from $117.8 million in the same period of 2020[173] - Gross profit increased by $50.7 million, or 110%, for the six months ended June 30, 2021, with a gross margin of 42%, up from 39% in the same period of 2020[179] Operating Expenses - Operating expenses surged to $115.0 million for the three months ended June 30, 2021, a 234% increase from $34.4 million in the same period of 2020[163] - Operating expenses rose by $107.5 million, or 158%, for the six months ended June 30, 2021, primarily driven by a 175% increase in total compensation and benefits expenses[180] - Compensation and benefits expenses increased by $69.3 million, or 268%, for the three months ended June 30, 2021, primarily due to a rise in employee-related costs and share-based compensation[163] Revenue Sources - Interchange Fees are a key revenue component, calculated based on a percentage of card transaction amounts plus a fixed amount per transaction[139] - The company generated 72% of its net revenue from its largest customer, Square, during the three months ended June 30, 2021[170] - The company generated 73% of its net revenue from its largest customer, Square, during the six months ended June 30, 2021[187] - Total Payment Volume (TPV) for the top five customers grew by 101% for the six months ended June 30, 2021, while TPV from all other customers grew by 210% compared to the same period in 2020[175] Cash Flow and Liquidity - Cash and cash equivalents, along with marketable securities, totaled $1.7 billion as of June 30, 2021, sufficient to meet working capital needs for at least the next 12 months[195] - Net cash provided by operating activities was $5.8 million for the six months ended June 30, 2021, compared to $14.7 million in the same period in 2020[198] - Net cash provided by operating activities decreased for the six months ended June 30, 2021, compared to the same period in 2020, primarily due to increases in operating expenses and non-cash charges[200] - Net cash provided by investing activities increased for the six months ended June 30, 2021, primarily due to a decrease in purchases of marketable securities[202] - Net cash provided by financing activities increased for the six months ended June 30, 2021, primarily due to proceeds from the IPO, net of underwriters' commission and discounts[204] IPO and Capital Structure - The company received net proceeds of $1.3 billion from its IPO, after deducting underwriting discounts and commissions[121] - The company completed its IPO in June 2021, receiving aggregate proceeds of $1.3 billion after deducting underwriting discounts and commissions[194] Internal Controls and Risks - The company identified a material weakness in internal control over financial reporting related to the timely reconciliations of certain customer-related settlement bank accounts[235] - The company is in the process of implementing additional controls to address the identified material weakness[236] - No changes in internal control over financial reporting were identified that materially affected the company's controls during the reporting period[237] - Management acknowledges that controls can only provide reasonable assurance of achieving objectives[238] Market and Economic Factors - The American Rescue Plan's cash stimulus payments contributed to the increase in TPV and net revenue for the first half of 2021[126] - A hypothetical 100 basis point increase or decrease in interest rates would not have a material effect on the company's financial results[231] - As of June 30, 2021, a hypothetical 10% change in foreign currency exchange rates would not have had a material impact on the company's financial statements[232] - Most sales and operating expenses are denominated in U.S. dollars, indicating minimal foreign currency exchange risk[232]