Marqeta Inc (MQ) Quote

Marqeta Inc NASDAQ: MQ

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Financials : Financial Services | Small Cap GrowthCompany profile
Marqeta, Inc. is engaged in providing modern card issuing and payment processing solutions. The Company provides a single, global, cloud-based, open API platform for modern card issuing and transaction processing. It works with companies in a range of different configurations, such as Managed By Marqeta and Powered By Marqeta. With Managed By Marqeta, the Company provides an issuing bank partner to act as the bank identification number; sponsor for the customer’s card program; manages the customer’s card program on behalf of the issuing bank, and provides a full-range of services, including configuring many of the critical resources required by a customer’s production environment. With Powered By Marqeta, it provides payment processing, and assists with certain configuration elements that enable the customer to use the platform independently. It serves customers in multiple industry verticals, including on-demand services, online marketplaces, and digital banking.

Marqeta stock soars after earnings as outlook tops expectations
6:50 pm ET March 9, 2022 (MarketWatch)
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By Emily Bary

Fintech company expects 48% to 50% revenue growth in first quarter

Shares of Marqeta Inc. were surging in aftermarket trading Wednesday after the card-issuing company exceeded revenue expectations with its latest quarterly results and delivered an upbeat outlook.

The company generated a fourth-quarter net loss of $36.8 million, or 7 cents a share, compared with a loss of $13.8 million, or 11 cents a share, in the year-prior quarter. The FactSet consensus was for a 7-cent loss per share.

Marqeta (MQ) posted adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of $1.2 million, whereas it lost $2.6 million on the metric a year prior. The FactSet consensus was for a $9.5 million loss on the basis of adjusted Ebitda, which is a non-GAAP metric.

Marqeta's revenue rose to $155.4 million from $86.2 million, while analysts were forecasting $137.8 million.

The company disclosed in early February that it expected to exceed the forecasts for revenue and adjusted Ebitda that it had offered back in November. That outlook had called for $134 million to $139 million in revenue and an adjusted Ebitda loss of $7 million to $10 million.

The company generated total processing volume (TPV) of $33.0 billion, up from $18.7 billion a year earlier.

Shares of Marqeta were up more than 14% in after-hours trading Wednesday, after they rose 10.1% to close out the regular session. Earlier Wednesday, Marqeta announced a partnership with Citi Commercial Cards.

Newer partnerships with Plaid and Citi "[help] MQ diversify away from the dependence on debit cards, positioning it well in the new world of real time account-to-account payments," wrote Mizuho's Dan Dolev.

For the first quarter, Marqeta anticipates revenue growth of 48% to 50% and an adjusted Ebitda margin of -8% to -9%. The FactSet consensus called for $137.1 million in March-quarter revenue, or about 27% above the year-prior total.

"Our approach in 2022 will be more balanced between fueling our existing customers' success and building for the future," Chief Executive Jason Gardner said on the company's earnings call.

He shared that newer initiatives like credit and banking-as-a-service "did not get as much focus as we would have liked" as existing Marqeta customers were seeing rapid growth with more established offerings, but the company ramped hiring for the emerging areas toward the end of 2021.

Credit is "a fairly large strategic focus for us," Gardner told MarketWatch.

Looking ahead to 2022, Gardner is upbeat about Marqeta's potential despite macroeconomic headwinds.

"We just got out of a two-year pandemic, and now there's more uncertainty," he told MarketWatch, but he's optimistic about the company's opportunity to further penetrate a massive market. So far, Marqeta processes less than 1% of carded volume in the U.S., and its share is even smaller internationally. The company is in 39 countries so far and plans new additions later this year.

Gardner believes that Marqeta's market experience will continue to be a differentiator. He shared on the call that the expense-management vertical was "approaching" $2 billion in TPV in the latest quarter, whereas the segment was "insignificant" a year before.

Businesses are "not going to take a risk on an unproven platform," he said in his conversation with MarketWatch, one reason why he's upbeat about the company's positioning in that vertical.

The stock is off about 40% over the past three months as the S&P 500 has declined about 8%.

-Emily Bary


(END) Dow Jones Newswires

March 09, 2022 18:50 ET (23:50 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

Two upgrades today:

Truist: $40 PT
Wolfe Research: $35 PT

Added more today.

Nice pop after hours.

Marqeta joins Temenos MarketPlace

https://twitter.com/marqeta/status/1453647756980064258?s=21

Square, Affirm, Goldman Sachs and Uber already clients. Great read..

https://www.fool.com/investing/2021/10/25/why-marqeta-stock-rocketed-higher-today/?_gl=1*17ogsba*_ga*SFlyeUtVTndyLS1ON0MyTWU3RlBKWE03UEZwbk9NSU1ZUkZmSmVPc2ttUDdiSHhoMnZabFBnaEhkMEJKQ0dRTA..

Another FinTech that just came public. Nice upside here imo.

Marqeta Now Powering Products for Coinbase, Bakkt, and More

Marqeta (NASDAQ: MQ), says it is now powering crypto products for Coinbase, Fold, Shakepay, and Bakkt, according to a release from the company/

Marqeta is a Fintech that partners with firms to issue and manage “modern cards.” Marqeta says these new products allow customers to either earn, or spend cryptocurrency at the point of sale.

Citing data that indicates 14% of US consumers own some form of crypto, Marqeta is effectively serving a growing audience.

Randy Kern, Chief Technology Officer at Marqeta calls the service one of the bleeding edges of innovation in Fintech.

Muneeb Imtiaz, Product Manager leading Card at Coinbase, said they want to enable their customers to spend crypto anywhere and Marqeta made it happen:

“Marqeta’s flexible APIs and Gateway JIT Funding feature facilitates the creation of customizable debit cards and oversees transaction approvals, allowing our customers fast access to their currencies. The Marqeta team brought a vast amount of payments experience to the table and worked hand in hand with us every step of the way.”
Fold CEO Will Reeves said they were looking for a unique feature. A card that could deliver Bitcoin rewards while encouraging responsible spending:

“We are proud to have a payments partner like Marqeta to help us navigate this. Marqeta’s open APIs are extremely flexible and its technology is best-in-class, helping us bridge the worlds of digital assets and traditional banking – all the while building out a truly modern consumer experience.”
Marqeta’s service allows cryptocurrency wallets to build out card products, making authorization decisions at the point of sale based on a user’s available cryptocurrency balance. Marqeta’s open APIs facilitate customizable experiences, integrating with other apps and offering visibility and transparency through real-time notifications and monitoring powered by webhooks.

Marqeta’s ATM network integrations and direct deposit and ACH capabilities allow crypto innovators to build out a digital banking experience. Through its ecosystem of partners, Marqeta says it will also be able to introduce unique features for its customers issuing credit cards, such as credit limits that can be adjusted according to a consumer’s cryptocurrency balance.

Marqeta highlights the following services:

Bakkt launched its Visa Debit Card, which allows customers to spend Bitcoin and cash balances from their Bakkt accounts.

Coinbase launched its Visa Debit Card, which allows users to spend their cryptocurrency balances anywhere Visa debit cards are accepted

Fold launched its Bitcoin cashback debit card, which offers Bitcoin rewards through a gamified experience that emphasizes healthy financial habits.

Shakepay announced its new Visa Card, which is currently available for beta access as a virtual card