Financial Data and Key Metrics Changes - In Q1 2025, adjusted revenue increased by 24% year-over-year, while adjusted EBITDA rose by 53% [8][22] - Non-GAAP EPS reached $1.6, an 80% increase from the previous year [22] Business Line Data and Key Metrics Changes - The B2B segment, powered by the ARC platform, saw revenue growth of over 40%, driven by significant BaaS partners [23] - The Money Movement segment experienced a 10% increase in tax processing revenue year-over-year, despite a decrease in the number of tax refunds processed [26] - The Consumer Services segment showed moderated declines in revenue and active accounts, largely due to the partnership with PLS [29] Market Data and Key Metrics Changes - Third-party cash transfer volumes grew by 5% year-over-year, marking the fourth consecutive quarter of growth [27] - The Consumer segment is expected to see revenue declines in the upper single digits, with a more pronounced decline anticipated in Q4 [35] Company Strategy and Development Direction - The company is focused on investing in infrastructure and technology to support growth and manage risk effectively [9][42] - Recent partnerships with Samsung and Crypto.com are expected to enhance the embedded finance offerings and drive future revenue growth [12][41] - The strategic review process aims to maximize shareholder value and assess the company's inherent value in the marketplace [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to growth, citing strong performance in new business wins and renewals [10][41] - The company raised its guidance for 2025, expecting non-GAAP revenue of $2 billion to $2.1 billion, up from previous estimates [34] - Management acknowledged the ongoing challenges in the staffing industry but remains optimistic about future growth opportunities [25][38] Other Important Information - The company renewed its long-term agreement with Walmart, extending the partnership through January 2033 [39] - A $70 million incentive payment to a Walmart affiliate will be recognized as an expense, impacting GAAP financial statements [39] Q&A Session Summary Question: Clarification on revenue segments for Crypto.com and Samsung - Revenue from these clients will run through either BaaS or Money Movement channels, with significant growth expected over time [46][48] Question: Details on the new MoneyCard deal with Walmart - The partnership allows for improvements in product capabilities and customer experience, with no significant changes to the economics of the MoneyCard program [50][53] Question: Thoughts on consumer active account growth - The decline in active accounts is moderating, with optimism for stabilization but no expected return to growth in 2025 [60][61] Question: Macro backdrop considerations in guidance - Current guidance reflects the macro environment as understood today, with potential adjustments if conditions change [64] Question: Operating environment for embedded finance today - The market has matured, with increased awareness and demand for embedded finance solutions, favoring established partners [67][70] Question: Competitive environment within Embedded Finance - The marketplace remains competitive, but the company differentiates itself through its comprehensive capabilities and established partnerships [72][73]

Financial Data and Key Metrics Changes - In Q1 2025, adjusted revenue increased by 24% year-over-year, while adjusted EBITDA rose by 53% [6][22] - Non-GAAP EPS reached $1.6, an 80% increase from the previous year [22] - Segment profit improved across all three operating segments for the first time in years [22] Business Line Data and Key Metrics Changes - The B2B segment, powered by the ARC platform, saw revenue growth of over 40%, driven by significant BaaS partners [23] - The Money Movement segment's tax processing revenue increased by 10% year-over-year, despite a decrease in the number of tax refunds processed [27] - The Consumer Services segment experienced moderated revenue and active account declines, largely due to the partnership with PLS [30] Market Data and Key Metrics Changes - The company reported a strong start to the year with robust pipelines and nearly the same amount of revenue signed year-to-date as in all of 2024 [11] - Third-party cash transfer volumes grew by 5% year-over-year, marking the fourth consecutive quarter of growth [28] Company Strategy and Development Direction - The company is focused on building a revenue engine, driving scale, and investing in infrastructure to support growth [6] - Strategic alternatives are being evaluated to maximize shareholder value, with a belief in the company's unique assets and management team [5] - The company aims to enhance its embedded finance capabilities and strengthen partnerships, particularly with Walmart and new clients like Samsung and Crypto.com [9][12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to growth and the importance of investing in the right people and infrastructure [8] - The macroeconomic environment is being monitored, with guidance raised for 2025 based on strong Q1 performance [35][36] - The company anticipates continued growth in the B2B and Money Movement segments, while the Consumer segment is expected to see declines [37][39] Other Important Information - The company has renewed its long-standing agreement with Walmart, extending the partnership through January 2033 [40] - A $70 million incentive payment to a Walmart affiliate will be recognized as an expense, impacting GAAP financial statements [41] Q&A Session Summary Question: Clarification on revenue segments for Crypto.com and Samsung - Revenue from these clients will run through either BaaS or Money Movement channels, with significant growth expected over time [46][47] Question: Details on the economics of the new MoneyCard deal with Walmart - The partnership with Walmart allows for improvements in product capabilities and customer experience, with no significant changes to the economics of the MoneyCard program [49][52] Question: Thoughts on consumer active account growth - The decline in consumer active accounts is moderating, with optimism for future growth driven by partnerships and product innovations [59][60] Question: Macro backdrop in annual guidance - Current guidance reflects the existing macro environment, with adjustments possible if conditions change [62] Question: Operating environment for embedded finance today - The market has matured, with increased awareness and demand for embedded finance solutions, favoring established partners [66][68] Question: Competitive environment within Embedded Finance - The marketplace remains competitive, but the company differentiates itself through its comprehensive capabilities and established partnerships [70][72]

Financial Data and Key Metrics Changes - The company reported a 9% increase in net revenue year-over-year, reaching $224.6 million [5][8] - Adjusted gross profit grew by 14% to $87.3 million, with an adjusted EBITDA increase of 11% to $51.3 million [5][8] - Adjusted EPS rose by $0.19 compared to the previous year, reaching $0.22 for the quarter [21] Business Segment Data and Key Metrics Changes - The SMB segment generated revenue of $151.7 million, a 5.3% increase from the previous year, with adjusted gross profit of $33.1 million, up 3.9% [13][15] - B2B revenue grew by 12.1% to $23.9 million, with adjusted gross profit increasing by 17.8% to $7.3 million [12][17] - The Enterprise segment saw revenue rise by 22.2% to $50.1 million, with adjusted gross profit also increasing by 22.2% to $46.9 million [18] Market Data and Key Metrics Changes - The company ended the quarter with over 1.3 million total customer accounts on its e-commerce platform, up from 1.2 million at the end of the previous year [5] - Annual transaction volume increased by $5 billion to over $135 billion, and account balances under administration improved to $1.3 billion [6] Company Strategy and Development Direction - The company aims to gain market share in the acquiring segment while strengthening countercyclical assets like automated payables and CFT Pay [25][26] - The focus is on investing in new verticals with large total addressable markets (TAMs) that are still early in the adoption of integrated payment and banking solutions [25][26] - The unified commerce platform is designed to streamline financial operations for businesses, enhancing cash flow and optimizing working capital [8][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic environment, citing a 0.3% decline in U.S. GDP and a 1.8% growth in consumer spending [24][25] - Despite economic uncertainties, the company remains confident in achieving 10% to 14% revenue growth for 2025, driven by strong growth trends and a favorable business mix [6][7] - Management noted that the material weakness related to automated controls is being actively remediated, with substantial progress made [22] Other Important Information - The company reported a decline in debt levels to $935.5 million after a $10 million prepayment of the term loan [19] - Adjusted EBITDA for the last twelve months ended March 31 was $209.2 million, with net leverage decreasing to 4.2 times [20] Q&A Session Summary Question: Can you provide details on the increase in SG&A and salaries? - Management explained that SG&A increased due to non-recurring items and costs associated with the migration to the public cloud, with a normalized increase of about 26% year-over-year [32][33] Question: What percentage of gross profit comes from B2B and enterprise? - Management confirmed that over 62% of gross profit now comes from B2B and enterprise segments, with a significant portion also from recurring revenues [34][35] Question: How did the Minnesota Wild contract come about? - Management highlighted the efficiency of their payment and banking solutions as key factors in winning the contract, emphasizing the ability to optimize cash flow and working capital [40][41] Question: What impact did the one less day in Q1 have on revenue? - Management acknowledged that the one less day did impact daily revenue, particularly in the SMB segment, affecting overall volume and income [43][44] Question: How is the company positioned regarding consumer spending and economic uncertainty? - Management noted that while there may be some impact, the company has a resilient portfolio, particularly in sectors less affected by economic downturns [54][56]

Financial Data and Key Metrics Changes - The company reported a 9% increase in net revenue, reaching $224.6 million, with adjusted gross profit growing by 14% to $87.3 million and adjusted EBITDA increasing by 11% to $51.3 million [4][6] - Adjusted EPS rose by $0.19 year over year, reaching $0.22 for the quarter [21][22] - Annual transaction volume increased by $5 billion to over $135 billion, and account balances under administration improved to $1.3 billion [5][6] Business Segment Data and Key Metrics Changes - The SMB segment generated Q1 revenue of $151.7 million, a 5.3% increase year over year, with adjusted gross profit of $33.1 million, up 3.9% [12][13] - B2B revenue grew by 12.1% to $23.9 million, with adjusted gross profit increasing by 17.8% to $7.3 million [15][17] - The Enterprise segment saw revenue of $50.1 million, a 22.2% increase, with adjusted gross profit also rising by 22.2% to $46.9 million [18] Market Data and Key Metrics Changes - The company noted a 0.3% decline in U.S. GDP during Q1, with consumer spending growth slowing to 1.8% from 4% [25][26] - The company reported that its core acquiring channels produced 10% organic revenue growth, while countercyclical segments grew by 12% to 22% [27][28] Company Strategy and Development Direction - The company aims to gain market share in the acquiring segment while strengthening countercyclical assets like automated payables and CFT Pay [26][27] - The focus is on investing efficiently in new verticals with large total addressable markets (TAMs) that are still early in the adoption of integrated payment and banking solutions [26][28] - The company is positioned to benefit from the fallout of less stable banking as a service providers [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10% to 14% top-line revenue growth for 2025, despite potential headwinds from lower interest rates and macroeconomic uncertainty [5][22] - The company is actively working to remediate a material weakness related to automated controls, with substantial progress reported [23] Other Important Information - The company ended the quarter with $117.6 million in available liquidity, including $70 million of borrowing capacity under its revolving credit facility [19] - The company has made a $10 million prepayment on its term loan during the quarter, reducing debt levels to $935.5 million [19][20] Q&A Session Summary Question: Can you provide details on the increase in SG&A and salaries? - Management clarified that SG&A increased by 26% year over year when normalizing for non-recurring items, with significant costs related to cloud migration and headcount additions [31][32] Question: What percentage of gross profit comes from B2B and enterprise? - Management confirmed that over 62% of gross profit now comes from B2B and enterprise segments, with a significant portion also from recurring revenues [34][35] Question: Can you elaborate on the Minnesota Wild contract win? - Management highlighted that the contract was won due to the ability to optimize cash flow and provide banking transparency, which is crucial for sports franchises [39][41] Question: How did the one less day in Q1 impact revenue? - Management acknowledged that the one less day did impact daily revenue, particularly in the SMB segment, and noted other unusual influences on volume [43][44] Question: What are the considerations for segment growth in Q2? - Management indicated that shifts in interest rates could impact growth, particularly in high-margin interest income [48] Question: How has consumer behavior changed post-tariffs? - Management noted no material changes in consumer behavior yet, with a resilient portfolio that includes recession-resistant sectors [54][56] Question: What opportunities exist in the embedded finance space? - Management stated that the company is well-positioned to capture opportunities from the fallout of less stable banking service providers [64]

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]