Core Insights - Marqeta reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.05, and improved from a loss of $0.07 per share a year ago, representing a 60% earnings surprise [1] - The company achieved revenues of $139.07 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 2.33% and up from $117.97 million year-over-year [2] - Marqeta has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates four times in the same period [2] Future Outlook - The sustainability of Marqeta's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $146.5 million, and for the current fiscal year, it is -$0.15 on revenues of $592.58 million [7] - The estimate revisions trend for Marqeta is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Financial Transaction Services industry, to which Marqeta belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Cantaloupe, another company in the same industry, is expected to report quarterly earnings of $0.10 per share, reflecting a year-over-year increase of 66.7%, with revenues projected at $78.82 million, up 16.1% from the previous year [9][10]

Marqeta (MQ) Q1 2025 Earnings Call May 07, 2025 04:30 PM ET Company Participants Stacey Finerman - Vice President, Investor RelationsMike Milotich - Interim CEO & CFOTimothy Chiodo - Managing DirectorRamsey El-Assal - Managing DirectorDarrin Peller - Managing DirectorJames Faucette - Managing DirectorCraig Maurer - Managing DirectorSanjay Sakhrani - Managing DirectorAndrew Bauch - Director - Equity Research Conference Call Participants Tien-tsin Huang - Senior AnalystCassie Chan - Analyst Operator Ladies an ...

Marqeta (MQ) Q1 2025 Earnings Call May 07, 2025 04:30 PM ET Speaker0 Ladies and gentlemen, welcome to Marketa Inc. First Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Stacy Feyneman, Vice President of Investor Relations. Please go ahead. Speaker1 Thanks, operator. Before we beg ...

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 March 31, 2025 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 ...

Financial Performance (Q1 2025) - Total Processing Volume (TPV) reached $84 billion[8], a 27% increase year-over-year[8] - Net Revenue was $139 million[11], an 18% increase year-over-year[11] - Gross Profit was $99 million[14], with a Gross Profit Margin of 71%[14], representing a 17% increase year-over-year[14] - Non-GAAP Operating Expenses were $79 million[17], a 5% increase year-over-year[17] - Adjusted EBITDA was $20 million[19], with an Adjusted EBITDA Margin of 14%[19] Financial Guidance (Q2 and FY 2025) - Second Quarter 2025 Net Revenue Growth is projected at 11-13%[31] - Second Quarter 2025 Adjusted EBITDA Margin is projected at 13-15%[31] - Second Quarter 2025 Gross Profit Growth is projected at 10-11%[31] - Fiscal Year 2025 Net Revenue Growth is projected at 23-25%[31] - Fiscal Year 2025 Adjusted EBITDA Margin is projected at 14-16%[31] - Fiscal Year 2025 Gross Profit Growth is projected at 10-11%[31]

Q1 2025 Financial Highlights and Business Updates [Q1 2025 Key Financial Results](index=1&type=section&id=Q1%202025%20Key%20Financial%20Results) Marqeta reported strong financial performance for Q1 2025, with significant year-over-year growth in Total Processing Volume (TPV), Net Revenue, and Gross Profit, alongside a substantial improvement in Net Loss and Adjusted EBITDA | Metric | Q1 2025 Value | YoY Change | Source | | :----------------------- | :------------ | :--------- | :----- | | Total Processing Volume (TPV) | $84 billion | +27% | [2] | | Net Revenue | $139 million | +18% | [2] | | Gross Profit | $99 million | +17% | [2] | | GAAP Net Loss | ($8 million) | -77% | [2] | | Adjusted EBITDA | $20 million | N/A | [2] | - Interim CEO and CFO, Mike Milotich, highlighted the company's ability to execute growth plans while increasing profitability[3](index=3&type=chunk) [Recent Business Momentum](index=1&type=section&id=Recent%20Business%20Momentum) Marqeta demonstrated continued business momentum through new customer program migrations and launches, expanding its portfolio across diverse use cases and geographies - Marqeta is migrating the Perpay Credit Card, an unsecured credit card designed to help users build credit by automating payments from paychecks, chosen for speed, flexibility, and scale[3](index=3&type=chunk) - Marqeta launched the Bitpanda Card, a debit card supporting cryptocurrencies and fiat currencies, across **26 European countries** and **10 currencies**, marking Marqeta's first live program in 2025 providing program management services in Europe[3](index=3&type=chunk) Detailed First Quarter 2025 Financial Performance [Operating Highlights Summary](index=2&type=section&id=Operating%20Highlights%20Summary) The operating highlights table provides a detailed comparison of key financial and operating metrics for Q1 2025 versus Q1 2024, showing strong growth in revenue and profitability while reducing net loss | Metric | Q1 2025 | Q1 2024 | % Change | | :----------------------------- | :-------- | :-------- | :------- | | Net revenue (in thousands) | $139,073 | $117,968 | 18% | | Gross profit (in thousands) | $98,679 | $84,161 | 17% | | Gross margin | 71% | 71% | — ppts | | Total operating expenses (in thousands) | $117,217 | $134,013 | (13%) | | Net loss (in thousands) | ($8,260) | ($36,060) | (77%) | | Net loss margin | (6%) | (31%) | 25 ppts | | Net loss per share - basic | ($0.02) | ($0.07) | (71%) | | Total Processing Volume (TPV) (in millions) | $84,472 | $66,666 | 27% | | Adjusted EBITDA (in thousands) | $20,081 | $9,228 | 118% | | Adjusted EBITDA margin | 14% | 8% | 6 ppts | | Non-GAAP operating expenses (in thousands) | $78,598 | $74,933 | 5% | [Financial Results Analysis](index=2&type=section&id=Financial%20Results%20Analysis) Marqeta's Q1 2025 financial results were characterized by robust TPV growth driving revenue and gross profit increases, coupled with lower operating expenses, leading to a significant reduction in net loss and a substantial rise in Adjusted EBITDA - Total Processing Volume (TPV) increased by **27%** year-over-year to **$84 billion**, up from **$67 billion** in Q1 2024[5](index=5&type=chunk) - Net Revenue grew by **18%** year-over-year to **$139 million**, primarily due to increased volumes, partially offset by an unfavorable mix from faster growth in processing-only card programs[5](index=5&type=chunk) - Gross Profit rose by **17%** year-over-year to **$99 million**, driven by TPV growth, maintaining a **71% Gross Margin**[6](index=6&type=chunk) - Net Loss improved by **$28 million** year-over-year to **$8 million**, with Net Loss margin improving by **25 percentage points** to **(6)%**, attributed to gross profit growth and reduced operating expenses[6](index=6&type=chunk) - Adjusted EBITDA increased by **$11 million** year-over-year to **$20 million**, with Adjusted EBITDA margin rising by **6 percentage points** to **14%**[7](index=7&type=chunk) Financial Guidance and Outlook [Q2 and FY 2025 Guidance](index=3&type=section&id=Q2%20and%20FY%202025%20Guidance) Marqeta provided financial guidance for the second quarter and full fiscal year 2025, projecting continued growth in Net Revenue and Gross Profit, along with positive Adjusted EBITDA margins | Metric | Second Quarter 2025 | Fiscal Year 2025 | | :------------------ | :------------------ | :--------------- | | Net Revenue Growth | 11 - 13% | 13 - 15% | | Gross Profit Growth | 23 - 25% | 14 - 16% | | Adjusted EBITDA Margin | 10 - 11% | 10 - 11% | - The Net Revenue guidance reflects the accounting impact of a renegotiated platform partner agreement, which does not affect Gross Profit[8](index=8&type=chunk) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) Marqeta scheduled a live conference call to discuss its Q1 2025 financial results, with details provided for dial-in and webcast access, along with replay information - Marqeta hosted a live conference call on May 7, 2025, at 1:30 p.m. Pacific time (4:30 p.m. Eastern time)[9](index=9&type=chunk) - Conference call details included toll-free and direct dial-in numbers, and a live webcast available at http://investors.marqeta.com[9](index=9&type=chunk) - A telephone replay was available until May 14, 2025, with specified dial-in numbers and a confirmation code[10](index=10&type=chunk) [Forward-Looking Statements Disclaimer](index=3&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section outlines the nature of forward-looking statements within the press release, emphasizing that actual results may differ due to various risks and uncertainties detailed in SEC filings - The press release contains forward-looking statements regarding guidance, business plans, customer growth, partnerships, and product capabilities, subject to risks and uncertainties[11](index=11&type=chunk) - Risks include uncertainties related to business, accounting treatment changes, inability to attract/retain customers, platform operation issues, competition, regulatory changes, and macroeconomic factors[11](index=11&type=chunk) - Detailed risk factors are available in Marqeta's Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q filed with the SEC[11](index=11&type=chunk) Company Information and Disclosures [Disclosure Information](index=4&type=section&id=Disclosure%20Information) Marqeta informs investors and the public about its various channels for disclosing material financial and business information, including SEC filings, press releases, and social media - Marqeta uses its investor relations website, SEC filings, press releases, public conference calls, and webcasts to announce material financial information[13](index=13&type=chunk) - The company also uses social media channels (Marqeta X feed, Instagram, Facebook, LinkedIn) to communicate with customers and the public, noting that information posted there could be deemed material[13](index=13&type=chunk) [Use of Non-GAAP Financial Measures Introduction](index=4&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures%20Introduction) This section introduces the use of non-GAAP financial measures, stating that reconciliations to GAAP are provided and explaining their purpose for management's evaluation of performance - Reconciliations of non-GAAP financial measures to the most directly comparable GAAP results are included at the end of the press release[14](index=14&type=chunk) - A description of these non-GAAP measures, including management's reasons for using them, is provided in the 'Information Regarding Non-GAAP Financial Measures' section[14](index=14&type=chunk) [About Marqeta, Inc.](index=4&type=section&id=About%20Marqeta%2C%20Inc.) Marqeta is a global modern card issuing platform that enables companies to embed financial services into their branded experiences, offering flexible, real-time data-driven solutions with built-in compliance and security - Marqeta's platform allows businesses to build and embed financial services, unlocking new growth opportunities and user experiences[15](index=15&type=chunk) - The platform provides control over financial solution building, enabling real-time data utilization for personalized solutions, from consumer loyalty to capital efficiency[15](index=15&type=chunk) - Marqeta's platform processed nearly **$300 billion** in annual payments volume in 2024 and is certified to operate in over **40 countries** worldwide[15](index=15&type=chunk) Condensed Consolidated Financial Statements [Statements of Operations](index=5&type=section&id=Statements%20of%20Operations) The Condensed Consolidated Statements of Operations present Marqeta's revenue, costs, operating expenses, and net loss for the three months ended March 31, 2025, compared to the prior year, highlighting a significant reduction in net loss | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :-------------------------- | :--------------------- | :--------------------- | | Net revenue | $139,073 | $117,968 | | Costs of revenue | $40,394 | $33,807 | | Gross profit | $98,679 | $84,161 | | Total operating expenses | $117,217 | $134,013 | | Loss from operations | ($18,538) | ($49,852) | | Other income, net | $10,513 | $13,926 | | Net loss | ($8,260) | ($36,060) | | Net loss per share - Basic | ($0.02) | ($0.07) | - Compensation and benefits decreased from **$94,990 thousand** in Q1 2024 to **$86,050 thousand** in Q1 2025, contributing to lower total operating expenses[18](index=18&type=chunk) - The Executive chairman long-term performance award expense was **$0** in Q1 2025, down from **$13,121 thousand** in Q1 2024[18](index=18&type=chunk) [Balance Sheets](index=6&type=section&id=Balance%20Sheets) The Condensed Consolidated Balance Sheets provide a snapshot of Marqeta's financial position as of March 31, 2025, compared to December 31, 2024, showing changes in assets, liabilities, and stockholders' equity | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------- | :---------------------------- | :------------------------------- | | Cash and cash equivalents | $830,897 | $923,016 | | Total current assets | $1,134,657 | $1,249,297 | | Total assets | $1,349,627 | $1,463,204 | | Revenue share payable | $209,415 | $193,399 | | Total current liabilities | $356,973 | $370,985 | | Total liabilities | $362,367 | $378,186 | | Total stockholders' equity | $987,260 | $1,085,018 | - Cash and cash equivalents decreased from **$923,016 thousand** at year-end 2024 to **$830,897 thousand** by Q1 2025[21](index=21&type=chunk) - Revenue share payable increased from **$193,399 thousand** to **$209,415 thousand**, indicating higher revenue-related obligations[21](index=21&type=chunk) [Statements of Cash Flows](index=7&type=section&id=Statements%20of%20Cash%20Flows) The Condensed Consolidated Statements of Cash Flows detail the cash generated from or used in operating, investing, and financing activities for the three months ended March 31, 2025, showing a net decrease in cash, cash equivalents, and restricted cash | Cash Flow Activity | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | | Net cash provided by operating activities | $9,987 | $426 | | Net cash provided by investing activities | $14,861 | $33,502 | | Net cash used in financing activities | ($116,967) | ($44,543) | | Net decrease in cash, cash equivalents, and restricted cash | ($92,119) | ($10,615) | - Operating activities provided **$9,987 thousand** in cash in Q1 2025, a significant increase from **$426 thousand** in Q1 2024[23](index=23&type=chunk) - Financing activities used substantially more cash in Q1 2025 (**$116,967 thousand**) compared to Q1 2024 (**$44,543 thousand**), primarily due to increased repurchase of common stock[23](index=23&type=chunk) Supplemental Financial Data [Quarterly Financial and Operating Trends](index=8&type=section&id=Quarterly%20Financial%20and%20Operating%20Trends) This section provides a comprehensive overview of Marqeta's financial and operating performance across multiple quarters, highlighting trends in revenue, profitability, expenses, and key metrics like TPV and Adjusted EBITDA | Metric | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | YoY Change Q1'25 vs Q1'24 | | :----------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | :------------------------ | | Net revenue (in thousands) | $139,073 | $135,790 | $127,967 | $125,270 | $117,968 | 18 % | | Gross profit (in thousands) | $98,679 | $98,202 | $90,132 | $79,353 | $84,161 | 17 % | | Gross margin | 71 % | 72 % | 70 % | 63 % | 71 % | — ppts | | Total operating expenses (in thousands) | $117,217 | $135,628 | $132,363 | ($25,689) | $134,013 | (13 %) | | Net (loss) income (in thousands) | ($8,260) | ($27,119) | ($28,643) | $119,108 | ($36,060) | (77 %) | | TPV (in millions) | $84,472 | $79,913 | $73,899 | $70,627 | $66,666 | 27 % | | Adjusted EBITDA (in thousands) | $20,081 | $12,663 | $9,019 | ($1,817) | $9,228 | 118 % | | Adjusted EBITDA margin | 14 % | 9 % | 7 % | (1 %) | 8 % | 6 ppts | | Cash and cash equivalents (in thousands) | $830,897 | $923,016 | $886,417 | $924,730 | $970,357 | (14 %) | - TPV has shown consistent quarter-over-quarter growth, increasing from **$66,666 million** in Q1 2024 to **$84,472 million** in Q1 2025[25](index=25&type=chunk) - Adjusted EBITDA has significantly improved, moving from a negative value in Q2 2024 to **$20,081 thousand** in Q1 2025, with a corresponding increase in Adjusted EBITDA margin[25](index=25&type=chunk) Reconciliation of GAAP to Non-GAAP Measures [Non-GAAP Measures Definitions](index=9&type=section&id=Non-GAAP%20Measures%20Definitions) This section defines Marqeta's non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA Margin, and Non-GAAP operating expenses, explaining their calculation and why management uses them to evaluate core operating performance - Adjusted EBITDA is defined as net loss adjusted for depreciation and amortization, share-based compensation, executive chairman long-term performance award, payroll tax, restructuring costs, acquisition-related expenses, income tax, and other income, net[28](index=28&type=chunk) - Adjusted EBITDA is used by management and the board to evaluate core operating results and efficiencies, and as an input for employee bonus plans[28](index=28&type=chunk) - Non-GAAP operating expenses exclude similar non-cash and one-time items from total operating expenses to provide a clearer view of ongoing operational costs[30](index=30&type=chunk) [GAAP to Non-GAAP Reconciliation Tables](index=10&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation%20Tables) This section provides detailed tables reconciling Marqeta's GAAP Net Loss and Total Operating Expenses to their respective non-GAAP counterparts, Adjusted EBITDA and Non-GAAP Operating Expenses, for Q1 2025 and Q1 2024 | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP Net loss | ($8,260) | ($36,060) | | Depreciation and amortization expense | $5,331 | $3,537 | | Share-based compensation expense | $25,915 | $31,313 | | Executive chairman long-term performance award | — | $13,121 | | Payroll tax expense related to share-based compensation | $777 | $1,165 | | Acquisition-related expenses | $4,238 | $9,944 | | Restructuring and other one-time costs | $2,358 | — | | Other income, net | ($10,513) | ($13,926) | | Income tax expense | $235 | $134 | | **Adjusted EBITDA** | **$20,081** | **$9,228** | | **Adjusted EBITDA Margin** | **14 %** | **8 %** | | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :------------------------------------------ | :--------------------- | :--------------------- | | GAAP Total operating expenses | $117,217 | $134,013 | | Depreciation and amortization expense | ($5,331) | ($3,537) | | Share-based compensation expense | ($25,915) | ($31,313) | | Executive chairman long-term performance award | — | ($13,121) | | Payroll tax expense related to share-based compensation | ($777) | ($1,165) | | Acquisition-related expenses | ($4,238) | ($9,944) | | Restructuring and other one-time costs | ($2,358) | — | | **Non-GAAP operating expenses** | **$78,598** | **$74,933** | - A forward reconciliation of Adjusted EBITDA margin to GAAP is not available for Q2 and full year 2025 due to the impracticability of estimating certain items[35](index=35&type=chunk)

A few months ago, I discussed how Marqeta, Inc. (NASDAQ: MQ ) stock would be stuck in another limbo as the company dealt with increased regulatory scrutiny that clouded its near-term outlook.My goal is to help you find the companies of tomorrow.I am a long-term growth investor in search of innovative companies that make the world a better place. My investment strategy revolves around finding what I call "divergent stocks" — disruptive companies that have strong fundamentals and long growth runways, but depr ...

Marqeta (MQ) Q4 2024 Earnings Call February 27, 2025 03:08 AM ET Company Participants Stacey Finerman - Vice President, Investor RelationsMike Milotich - Interim CEO & CFOTimothy Chiodo - Managing DirectorDarrin Peller - Managing DirectorAndrew Bauch - Director - Equity ResearchSanjay Sakhrani - Managing Director Conference Call Participants Tien-tsin Huang - Senior AnalystNone - AnalystCristopher Kennedy - Research Analyst - Financial Services & Technology Operator Ladies and gentlemen, welcome to Marqeta ...

Financial Data and Key Metrics Changes - Total Process Volume (TPV) reached $80 billion in Q4 2024, a 29% increase compared to Q4 2023 [10] - Q4 net revenue was $136 million, growing 14% year-over-year [10] - Gross profit for Q4 was $98 million, an 18% increase year-over-year, resulting in a gross margin of 72% [11] - Adjusted EBITDA was $13 million in Q4, translating into a 9% margin, marking new all-time highs for the company [43][67] Business Line Data and Key Metrics Changes - Financial services, lending (including Buy Now, Pay Later), and expense management all grew at rates slightly faster than the overall company in Q4 [36] - Non-Block TPV grew roughly twice as fast as Block TPV, driven by various customer use cases [35] - The European business saw TPV growth well over 100% in Q4, with notable wins contributing to future momentum [16] Market Data and Key Metrics Changes - The company secured a consumer co-brand credit partnership with an established airline outside the U.S., indicating strong international market engagement [14] - The European market is experiencing significant growth, with a focus on enhancing program management capabilities to match U.S. offerings [18][119] Company Strategy and Development Direction - The company aims to establish itself as the preferred partner for embedded finance and fintech innovations through three strategic pillars: deepening platform breadth, expanding solutions, and strengthening leadership in payments innovation [20] - The acquisition of TransactPay is intended to enhance program management offerings in Europe, allowing for a more seamless service for customers [55][79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing compelling opportunities in the payment ecosystem, emphasizing the importance of operational improvements and customer experience [8][12] - The company expects full-year 2025 net revenue growth between 16% and 18%, driven by TPV growth in the mid- to high 20s [48] - Management highlighted the importance of maintaining a strong focus on compliance while driving profitable growth [30] Other Important Information - The company has $80 million remaining on the Q2 2024 share buyback authorization and plans to restart share repurchase activity soon [46] - An additional $300 million share buyback authorization has been approved, bringing the total to $380 million [47] Q&A Session Summary Question: What exactly is being acquired with TransactPay? - The acquisition involves a bin sponsorship provider licensed with an e-money institution, allowing the company to have more control over offerings in Europe [73][74][78] Question: How does the pipeline look now? - The pipeline is strong, with roughly two-thirds consisting of embedded finance customers, indicating significant momentum in this area [82] Question: Does Marqeta have everything needed to win large embedded finance deals? - Yes, the company is fully modern and operates at scale, providing a unique and differentiated offering that appeals to global companies [92] Question: Is the guidance for 2025 based on the acquisition of TransactPay? - Yes, the guidance assumes the acquisition will close around Q3 2025 [96] Question: What is the path to GAAP profitability? - The company expects to drive gross profit growth at a faster rate than expense growth, leading to quarterly GAAP profitability by the end of 2026 [98][100]

Financial Data and Key Metrics Changes - Total Process Volume (TPV) reached $80 billion in Q4, a 29% increase compared to the same quarter of 2023 [7][22] - Q4 net revenue was $136 million, growing 14% year over year [7][25] - Gross profit for Q4 was $98 million, an 18% increase year over year, resulting in a gross margin of 72% [8][27] - Adjusted EBITDA was $13 million in Q4, translating into a 9% margin, marking new all-time highs for the company [29][30] Business Line Data and Key Metrics Changes - Financial services, lending (including buy now pay later), and expense management all grew at roughly the same rate in Q4, slightly faster than the overall company [24] - Non-block neo banking customers' TPV grew approximately 100% year over year [25] - Growth in expense management accelerated due to strong end-user acquisition as AP automation and modern corporate card platforms gained share [25] Market Data and Key Metrics Changes - The European business saw TPV growth well over 100% in Q4 [12] - The company secured a deal to provide commercial card processing and program management to a fast-growing technology company in Europe [12] - The pipeline for embedded finance customers has increased significantly, with roughly two-thirds of the current pipeline being embedded finance customers [55] Company Strategy and Development Direction - The company aims to establish itself as a preferred partner for embedded finance and fintech innovations through three strategic pillars: deepening platform breadth, expanding solutions, and strengthening leadership in payments innovation [15][44] - The acquisition of TransactPay is expected to enhance program management offerings in Europe and streamline operations [18][36] - The company plans to leverage the American Express network for credit and debit card programs starting later in 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing compelling opportunities in the payment ecosystem while focusing on profitable growth and value creation [6][15] - The company anticipates net revenue growth of 16-18% for 2025, driven by TPV growth in the mid to high 20s [32] - Management highlighted the importance of maintaining a strong focus on compliance while driving profitable growth [21][43] Other Important Information - The company ended Q4 with $1.1 billion in cash and short-term investments [29] - A share buyback authorization of $300 million was approved, bringing the total authorization to $380 million [31] Q&A Session Summary Question: What exactly is being acquired with TransactPay? - TransactPay is a BIN sponsorship provider licensed with an eMoney institution, allowing the company to have more control over offerings in Europe [48][50] Question: How does the pipeline look now, especially after recent wins? - The pipeline is strong, with a significant increase in embedded finance customers, indicating growing momentum in the market [55][56] Question: Does Marketa have everything needed to win larger embedded finance deals? - Yes, the company has a full solution that includes money movement, issuer processing, and program management, which positions it well for larger deals [62][64] Question: Is the guidance for 2025 based on the acquisition of TransactPay? - Yes, the guidance assumes the acquisition will close around Q3 2025 [68] Question: What is the path to GAAP profitability by 2026? - The company expects to drive gross profit growth at a faster rate than expense growth, leading to GAAP profitability on a quarterly basis by 2026 [70][73]