Marqeta Reports Fourth Quarter and Full Year 2023 Financial Results
- None.
- 42% decrease in Q4 net revenue due to Cash App contract changes
- 10% decrease in annual revenue despite increased TPV
- GAAP net loss of $40 million for Q4 and $223 million for full year 2023
Insights
The reported total processing volume (TPV) growth of 33-34% for Marqeta indicates a robust increase in the usage of its card issuing platform, suggesting expansion in market adoption and customer activity. However, the 42% decline in net revenue and 4% decrease in gross profit year-over-year in Q4, primarily due to a new contract with Cash App, present a mixed financial picture. The reduction in pricing for Cash App, while potentially securing long-term business, has had a significant short-term negative impact on revenue and profitability.
While the GAAP net loss widened by 53% in Q4 and 21% for the full year, the improvement in Adjusted EBITDA from a loss of $41.8 million in the previous year to a loss of $2.3 million this year is indicative of better operational efficiency. Investors should note the shift in revenue presentation due to the Cash App contract, which now nets certain fees against revenue rather than including them in cost of revenue, affecting comparability with previous periods.
Marqeta's gross margin improvement, from 43% to 49% annually, is a positive indicator of cost management despite the revenue presentation changes. However, the increased net loss margin raises concerns about the company's path to profitability. A critical factor for future financial health will be the company's ability to balance growth in TPV with improved revenue and margin performance.
Marqeta's focus on expanding its credit card program management capabilities and securing long-term processing volume deals signals strategic moves to diversify and strengthen its product offerings. The partnerships with Internet Travel Solutions and Affinipay demonstrate early successes in the new credit card platform and the potential for growth in the embedded finance sector. The increasing relevance of embedded finance, where financial services are integrated into non-financial environments, presents a significant opportunity for Marqeta to capitalize on this trend.
The company's positioning for 2024 with a 'best-in-class product set' and growth in the fintech sector is optimistic. However, the true impact of these strategic initiatives on the company's financials will be critical to monitor, especially as they navigate the competitive landscape of payment processing and card issuing platforms.
Marqeta's financial results reflect broader economic trends affecting the fintech industry. The increase in TPV suggests a growing consumer and business reliance on digital payment solutions, which could be indicative of broader digital transformation trends in the economy. However, the aggressive pricing strategy, as seen with the Cash App contract, may be a response to competitive pressures in the fintech space, where user acquisition and retention are paramount.
Long-term, the ability of Marqeta to leverage its platform enhancements and new credit offerings could drive sustainable revenue growth. Yet, the short-term financial impacts, such as reduced net revenue and a widened net loss, highlight the challenges of scaling in a cost-competitive industry. Investors should consider the balance between market share growth and financial performance when evaluating Marqeta's prospects in a rapidly evolving financial technology landscape.
The global modern card issuing platform had
The Company's annual total processing volume was up 34 percent year-over-year to
Total processing volume (TPV) was
Marqeta's Q4 earnings are the Company's second full quarter of financial results reflecting its Cash App contract renewal effective as of July 2023. Marqeta reported Q4 net revenue of
For the quarter ended December 31, 2023, Marqeta reported a GAAP net loss of
"2023 was transformative for Marqeta, as we enhanced our platform with new credit card program management capabilities, renewed the large majority of our processing volume to longer term deals, and delivered on operating efficiency," said Simon Khalaf, CEO at Marqeta. "We are entering 2024 with a best-in-class product set, continued growth in Fintech, and exciting opportunities in embedded finance."
Recent Business Updates:
-
Following the launch of its revamped credit card platform in October 2023, Marqeta announced its first credit deals showing early traction for its new offerings across varying embedded finance use cases, from travel and entertainment to professional spend management:
- Internet Travel Solutions (ITS) is a leading provider of travel management software and will utilize Marqeta’s comprehensive credit card platform to launch a multi-use travel and expense (T&E) commercial credit card for the mid-sized business market.
- Affinipay will use Marqeta to build a flexible and customized credit offering, embedded directly into its platform. Affinipay’s LawPay Visa SMB revolving credit card, powered by Marqeta, will be the first comprehensive solution in the legal industry that helps law firms pay, track and manage firm and client expenses.
Operating Highlights
In thousands, except percentages and per share data. % change is calculated over the comparable prior-year period (unaudited) |
Three Months Ended December 31, |
|
% Change |
|
Twelve Months Ended December 31, |
|
% Change |
||||||||||||
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
|||||||||||
Financial metrics: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Net revenue |
$ |
118,822 |
|
|
$ |
203,805 |
|
|
( |
|
$ |
676,171 |
|
|
$ |
748,206 |
|
|
( |
Gross profit |
$ |
83,233 |
|
|
$ |
87,124 |
|
|
( |
|
$ |
329,514 |
|
|
$ |
320,001 |
|
|
|
Gross margin |
|
70 |
% |
|
|
43 |
% |
|
27 ppts |
|
|
49 |
% |
|
|
43 |
% |
|
6 ppts |
Total operating expenses |
$ |
139,571 |
|
|
$ |
141,447 |
|
|
( |
|
$ |
612,529 |
|
|
$ |
529,809 |
|
|
|
Net loss |
$ |
(40,376 |
) |
|
$ |
(26,326 |
) |
|
|
|
$ |
(222,962 |
) |
|
$ |
(184,780 |
) |
|
|
Net loss margin |
|
(34 |
%) |
|
|
(13 |
%) |
|
(21) ppts |
|
|
(33 |
%) |
|
|
(25 |
%) |
|
(8) ppts |
Net loss per share - basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.05 |
) |
|
|
|
$ |
(0.42 |
) |
|
$ |
(0.34 |
) |
|
|
Key operating metric and Non-GAAP financial measures: |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Processing Volume (TPV) (in millions) 1 |
$ |
61,979 |
|
|
$ |
46,704 |
|
|
|
|
$ |
222,264 |
|
|
$ |
166,260 |
|
|
|
Adjusted EBITDA 2 |
$ |
3,292 |
|
|
$ |
(7,488 |
) |
|
( |
|
$ |
(2,290 |
) |
|
$ |
(41,796 |
) |
|
( |
Adjusted EBITDA margin 2 |
|
3.0 |
% |
|
|
(3.7 |
%) |
|
7 ppts |
|
|
(0.3 |
%) |
|
|
(5.6 |
%) |
|
(6) ppts |
Non-GAAP operating expenses 2 |
$ |
79,941 |
|
|
$ |
94,612 |
|
|
( |
|
$ |
331,804 |
|
|
$ |
361,797 |
|
|
( |
1 TPV represents the total dollar amount of payments processed through our platform, net of returns and chargebacks. We believe that TPV is a key indicator of the market adoption of our platform, growth of our brand, growth of our customers' businesses, and scale of our business. |
|||||||||||||||||||
2 See "Information Regarding Non-GAAP Measures" for definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Non-GAAP operating expenses and the reconciliations of the net loss to Adjusted EBITDA, and of the total operating expenses to Non-GAAP operating expenses. |
|||||||||||||||||||
Fourth Quarter 2023 Financial Results:
-
TPV increased by
33% year-over-year, from$47 billion $62 billion -
Net revenue of
$119 million $85 million 42% ) year-over-year, primarily driven by the contract renewal with Cash App, which allowed for reduced pricing and also resulted in a change to the revenue presentation. The impact of fees owed to Issuing Banks and Card Networks related to the Cash App primary Card Network volume, which are netted against revenue earned from the Cash App program within Net Revenue, was a reduction of$120 million -
Gross profit decreased by
4% year-over-year to$83 million $87 million 70% in the fourth quarter. -
Net loss increased by
$14 million 53% , year-over-year to$40 million -
Adjusted EBITDA in the fourth quarter of 2023 was an income of
$3 million $11 million
Full Year 2023 Financial Results:
-
TPV increased by
34% year-over-year, from$166 billion $222 billion -
Net revenue decreased by
$72 million 10% ) year-over-year, primarily driven by the contract renewal with Cash App, which allowed for reduced pricing and also resulted in a change to the revenue presentation. The impact of fees owed to Issuing Banks and Card Networks related to the Cash App primary Card Network volume, which are netted against revenue earned from the Cash App program within Net Revenue, was a reduction of$234 million -
Gross profit increased by
$10 million 3% year-over-year. Gross margin was49% for the year ended December 31, 2023. -
Net loss increased by
$38 million 21% , year-over-year to$223 million -
Adjusted EBITDA for the year ended December 31, 2023 was a loss of
$2 million $40 million
Conference Call
Marqeta will host a live conference call today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time). To join the call, please dial-in 10 minutes in advance: toll-free at 1-877-407-4018 or direct at 1-201-689-8471. The conference call will also be available live via webcast online at http://investors.marqeta.com.
The telephone replay dial-in numbers are 1-844-512-2921 and 1-412-317-6671 and will be available until March 6, 2024, 8:59 p.m. Pacific time (11:59 p.m. Eastern time). The confirmation code for the replay is 13743460.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements relating to Marqeta’s quarterly guidance; statements regarding Marqeta’s business plans, business strategy and the continued success and growth of our customers; statements and expectations regarding Marqeta's partnerships, new product introductions, and product capabilities; statements and expectations regarding growth and opportunities in the fintech industry and embedded finance; and statements made by Marqeta’s CEO. Actual results may differ materially from the expectations contained in these statements due to risks and uncertainties, including, but not limited to, the following: the effect of uncertainties related to global economies, our business, results of operations, financial condition, and demand for our platform; the risk that Marqeta’s anticipated accounting treatment may be subject to further changes or developments; the risk that Marqeta is unable to further attract, retain, diversify, and expand its customer base; the risk that Marqeta is unable to drive increased profitable transactions on its platform; the risk that consumers and customers will not perceive the benefits of Marqeta’s products, including credit card issuing, as Marqeta expects; the risk that Marqeta's platform does not operate as intended resulting in system outages; the risk that Marqeta will not be able to achieve the cost structure that Marqeta currently expects; the risk that Marqeta’s solution will not achieve the expected market acceptance; the risk that competition could reduce expected demand for Marqeta’s services, including credit card issuing; the risk that changes in the regulatory landscape could adversely affect Marqeta's operations and revenues; the risk that Marqeta may be unable to maintain relationships with Issuing Banks and Card Networks; the risk that Marqeta is not able to identify and recognize the anticipated benefits of any acquisition; the risk that Marqeta is unable to successfully integrate any acquisition to businesses and related operations; the risk of financial services and banking sector instability and follow on effects to fintech companies; the risk of general economic conditions in either domestic or international markets, including inflation and recessionary fears, conditions resulting from geopolitical uncertainty and instability or war; and the risk that Marqeta may be subject to additional risks due to its international business activities. Detailed information about these risks and other factors that could potentially affect Marqeta’s business, financial condition, and results of operations are included in the “Risk Factors” disclosed in Marqeta's Annual Report on Form 10-K for the year ended December 31, 2023, as such risk factors may be updated from time to time in Marqeta’s periodic filings with the SEC, available at www.sec.gov and Marqeta’s website at http://investors.marqeta.com.
The forward-looking statements in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update any forward-looking statements, except as required by law.
Disclosure Information
Investors and others should note that Marqeta announces material financial information to its investors using its investor relations website, SEC filings, press releases, public conference calls and webcasts. Marqeta also uses social media to communicate with its customers and the public about Marqeta, its products and services, and other matters relating to its business and market. It is possible that the information Marqeta posts on social media could be deemed to be material information. Therefore, Marqeta encourages investors, the media, and others interested in Marqeta to review the information we post on social media channels including the Marqeta X feed (@Marqeta), the Marqeta Instagram page (@lifeatmarqeta), the Marqeta Facebook page, and the Marqeta LinkedIn page. These social media channels may be updated from time to time.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures."
About Marqeta, Inc.
Marqeta’s modern card issuing platform empowers its customers to create customized and innovative payment cards. Marqeta’s modern architecture gives its customers the ability to build more configurable and flexible payment experiences, accelerating time-to-market and democratizing access to card issuing technology. Marqeta’s open APIs provide instant access to highly scalable, cloud-based payment infrastructure that enables customers to launch and manage their own card programs, issue cards, and authorize and settle payment transactions. Marqeta is headquartered in
Marqeta® is a registered trademark of Marqeta, Inc.
Marqeta, Inc. Condensed Consolidated Statements of Operations (in thousands, except share and per share amounts) (unaudited) |
|||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net revenue |
$ |
118,822 |
|
|
$ |
203,805 |
|
|
$ |
676,171 |
|
|
$ |
748,206 |
|
Costs of revenue |
|
35,589 |
|
|
|
116,681 |
|
|
|
346,657 |
|
|
|
428,205 |
|
Gross profit |
|
83,233 |
|
|
|
87,124 |
|
|
|
329,514 |
|
|
|
320,001 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
109,203 |
|
|
|
110,991 |
|
|
|
499,595 |
|
|
|
415,094 |
|
Technology |
|
13,938 |
|
|
|
14,401 |
|
|
|
55,612 |
|
|
|
52,361 |
|
Professional services |
|
7,172 |
|
|
|
6,295 |
|
|
|
21,679 |
|
|
|
23,479 |
|
Occupancy |
|
1,076 |
|
|
|
1,126 |
|
|
|
4,361 |
|
|
|
4,514 |
|
Depreciation and amortization |
|
3,159 |
|
|
|
1,019 |
|
|
|
10,741 |
|
|
|
3,853 |
|
Marketing and advertising |
|
1,219 |
|
|
|
1,862 |
|
|
|
2,566 |
|
|
|
3,995 |
|
Other operating expenses |
|
3,804 |
|
|
|
5,753 |
|
|
|
17,975 |
|
|
|
26,513 |
|
Total operating expenses |
|
139,571 |
|
|
|
141,447 |
|
|
|
612,529 |
|
|
|
529,809 |
|
Loss from operations |
|
(56,338 |
) |
|
|
(54,323 |
) |
|
|
(283,015 |
) |
|
|
(209,808 |
) |
Other income, net |
|
14,932 |
|
|
|
28,468 |
|
|
|
52,440 |
|
|
|
24,926 |
|
Loss before income tax expense |
|
(41,406 |
) |
|
|
(25,855 |
) |
|
|
(230,575 |
) |
|
|
(184,882 |
) |
Income tax (benefit) expense |
|
(1,030 |
) |
|
|
471 |
|
|
|
(7,613 |
) |
|
|
(102 |
) |
Net loss |
$ |
(40,376 |
) |
|
$ |
(26,326 |
) |
|
$ |
(222,962 |
) |
|
$ |
(184,780 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
$ |
(0.08 |
) |
|
$ |
(0.05 |
) |
|
$ |
(0.42 |
) |
|
$ |
(0.34 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted |
|
522,330,627 |
|
|
|
544,752,220 |
|
|
|
532,540,175 |
|
|
|
545,397,254 |
|
Marqeta, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) |
|||||||
|
December 31, 2023 |
|
December 31, 2022 |
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
980,972 |
|
|
$ |
1,183,846 |
|
Restricted cash |
|
8,500 |
|
|
|
7,800 |
|
Short-term investments |
|
268,724 |
|
|
|
440,858 |
|
Accounts receivable, net |
|
19,540 |
|
|
|
15,569 |
|
Settlements receivable, net |
|
29,922 |
|
|
|
18,028 |
|
Network incentives receivable |
|
53,807 |
|
|
|
42,661 |
|
Prepaid expenses and other current assets |
|
27,233 |
|
|
|
38,007 |
|
Total current assets |
|
1,388,698 |
|
|
|
1,746,769 |
|
Property and equipment, net |
|
18,764 |
|
|
|
7,440 |
|
Operating lease right-of-use assets, net |
|
6,488 |
|
|
|
9,015 |
|
Intangibles |
|
35,631 |
|
|
|
— |
|
Goodwill |
|
123,523 |
|
|
|
— |
|
Other assets |
|
16,587 |
|
|
|
7,122 |
|
Total assets |
$ |
1,589,691 |
|
|
$ |
1,770,346 |
|
Liabilities and stockholders' equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
1,420 |
|
|
$ |
3,798 |
|
Revenue share payable |
|
173,645 |
|
|
|
142,194 |
|
Accrued expenses and other current liabilities |
|
161,514 |
|
|
|
136,887 |
|
Total current liabilities |
|
336,579 |
|
|
|
282,879 |
|
Operating lease liabilities, net of current portion |
|
5,126 |
|
|
|
9,034 |
|
Other liabilities |
|
4,591 |
|
|
|
5,477 |
|
Total liabilities |
|
346,296 |
|
|
|
297,390 |
|
Stockholders' equity: |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
52 |
|
|
|
53 |
|
Additional paid-in capital |
|
2,067,776 |
|
|
|
2,082,373 |
|
Accumulated other comprehensive income (loss) |
|
762 |
|
|
|
(7,237 |
) |
Accumulated deficit |
|
(825,195 |
) |
|
|
(602,233 |
) |
Total stockholders’ equity |
|
1,243,395 |
|
|
|
1,472,956 |
|
Total liabilities and stockholders' equity |
$ |
1,589,691 |
|
|
$ |
1,770,346 |
|
Marqeta, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||
|
Year Ended December 31, |
||||||
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(222,962 |
) |
|
$ |
(184,780 |
) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
10,741 |
|
|
|
3,853 |
|
Share-based compensation expense |
|
180,739 |
|
|
|
160,743 |
|
Non-cash operating leases expense |
|
2,527 |
|
|
|
2,281 |
|
Non-cash postcombination compensation expense |
|
32,430 |
|
|
|
— |
|
Amortization of premium on short-term investments |
|
(4,495 |
) |
|
|
277 |
|
Gain on sale of equity method investment |
|
— |
|
|
|
(17,889 |
) |
Impairment of other financial instruments |
|
— |
|
|
|
11,616 |
|
Other |
|
736 |
|
|
|
649 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(4,556 |
) |
|
|
(2,577 |
) |
Settlements receivable |
|
(11,894 |
) |
|
|
(6,762 |
) |
Network incentives receivable |
|
(11,146 |
) |
|
|
(12,262 |
) |
Prepaid expenses and other assets |
|
7,900 |
|
|
|
(8,621 |
) |
Accounts payable |
|
(1,956 |
) |
|
|
254 |
|
Revenue share payable |
|
31,451 |
|
|
|
21,015 |
|
Accrued expenses and other liabilities |
|
14,983 |
|
|
|
22,257 |
|
Operating lease liabilities |
|
(3,394 |
) |
|
|
(3,020 |
) |
Net cash provided by (used in) operating activities |
|
21,104 |
|
|
|
(12,966 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(762 |
) |
|
|
(2,319 |
) |
Capitalization of internal-use software |
|
(11,889 |
) |
|
|
— |
|
Business combination, net of cash acquired |
|
(135,777 |
) |
|
|
— |
|
Purchase of patents |
|
— |
|
|
|
(1,600 |
) |
Purchases of short-term investments |
|
(892,430 |
) |
|
|
(70,495 |
) |
Sales of short-term investments |
|
577,934 |
|
|
|
— |
|
Maturities of short-term investments |
|
501,534 |
|
|
|
77,400 |
|
Realized gain/loss on investments |
|
(94 |
) |
|
|
— |
|
Sale of equity method investment |
|
— |
|
|
|
25,732 |
|
Net cash provided by investing activities |
|
38,516 |
|
|
|
28,718 |
|
Cash flows from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options |
|
5,289 |
|
|
|
9,249 |
|
Payment of contingent consideration |
|
(53,067 |
) |
|
|
— |
|
Proceeds from shares issued in connection with employee stock purchase plan |
|
3,066 |
|
|
|
4,762 |
|
Taxes paid related to net share settlement of restricted stock units |
|
(26,662 |
) |
|
|
(15,362 |
) |
Repurchase of common stock |
|
(190,420 |
) |
|
|
(78,136 |
) |
Net cash used in financing activities |
|
(261,794 |
) |
|
|
(79,487 |
) |
Decrease in cash, cash equivalents, and restricted cash |
|
(202,174 |
) |
|
|
(63,735 |
) |
Cash, cash equivalents, and restricted cash - Beginning of period |
|
1,191,646 |
|
|
|
1,255,381 |
|
Cash, cash equivalents, and restricted cash - End of period |
$ |
989,472 |
|
|
$ |
1,191,646 |
|
Marqeta, Inc. Financial and Operating Highlights (in thousands, except per share data or as noted) (unaudited) |
|||||||||||||||||||||||
|
|
2023 |
|
2022 |
|
Year over Year Change - Q4'23 vs Q4'22 |
|||||||||||||||||
|
|
Fourth Quarter |
|
Third Quarter |
|
Second Quarter |
|
First Quarter |
|
Fourth Quarter |
|
||||||||||||
Operating performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net revenue |
|
$ |
118,822 |
|
|
$ |
108,891 |
|
|
$ |
231,115 |
|
|
$ |
217,343 |
|
|
$ |
203,805 |
|
|
(42 |
%) |
Costs of revenue |
|
|
35,589 |
|
|
|
36,383 |
|
|
|
146,506 |
|
|
|
128,179 |
|
|
|
116,681 |
|
|
(69 |
%) |
Gross profit |
|
|
83,233 |
|
|
|
72,508 |
|
|
|
84,609 |
|
|
|
89,164 |
|
|
|
87,124 |
|
|
(4 |
%) |
Gross profit margin |
|
|
70 |
% |
|
|
67 |
% |
|
|
37 |
% |
|
|
41 |
% |
|
|
43 |
% |
|
27 ppts |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Compensation and benefits |
|
|
109,203 |
|
|
|
115,846 |
|
|
|
126,788 |
|
|
|
147,759 |
|
|
|
110,991 |
|
|
(2 |
%) |
Technology |
|
|
13,938 |
|
|
|
13,930 |
|
|
|
13,154 |
|
|
|
14,590 |
|
|
|
14,401 |
|
|
(3 |
%) |
Professional services |
|
|
7,172 |
|
|
|
4,197 |
|
|
|
4,873 |
|
|
|
5,437 |
|
|
|
6,295 |
|
|
14 |
% |
Occupancy and equipment |
|
|
1,076 |
|
|
|
1,074 |
|
|
|
1,057 |
|
|
|
1,154 |
|
|
|
1,126 |
|
|
(4 |
%) |
Depreciation and amortization |
|
|
3,159 |
|
|
|
3,108 |
|
|
|
2,494 |
|
|
|
1,980 |
|
|
|
1,019 |
|
|
210 |
% |
Marketing and advertising |
|
|
1,219 |
|
|
|
346 |
|
|
|
561 |
|
|
|
441 |
|
|
|
1,862 |
|
|
(35 |
%) |
Other operating expenses |
|
|
3,804 |
|
|
|
3,833 |
|
|
|
5,103 |
|
|
|
5,236 |
|
|
|
5,753 |
|
|
(34 |
%) |
Total operating expenses |
|
|
139,571 |
|
|
|
142,334 |
|
|
|
154,030 |
|
|
|
176,597 |
|
|
|
141,447 |
|
|
(1 |
%) |
Loss from operations |
|
|
(56,338 |
) |
|
|
(69,826 |
) |
|
|
(69,421 |
) |
|
|
(87,433 |
) |
|
|
(54,323 |
) |
|
4 |
% |
Other income, net |
|
|
14,932 |
|
|
|
15,074 |
|
|
|
10,762 |
|
|
|
11,672 |
|
|
|
28,468 |
|
|
(48 |
%) |
Loss before income tax expense |
|
|
(41,406 |
) |
|
|
(54,752 |
) |
|
|
(58,659 |
) |
|
|
(75,761 |
) |
|
|
(25,855 |
) |
|
60 |
% |
income tax (benefit) expense |
|
|
(1,030 |
) |
|
|
238 |
|
|
|
138 |
|
|
|
(6,960 |
) |
|
|
471 |
|
|
(319 |
%) |
Net loss |
|
$ |
(40,376 |
) |
|
$ |
(54,990 |
) |
|
$ |
(58,797 |
) |
|
$ |
(68,801 |
) |
|
$ |
(26,326 |
) |
|
53 |
% |
Loss per share - basic and diluted |
|
$ |
(0.08 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.05 |
) |
|
60 |
% |
TPV (in millions) |
|
$ |
61,979 |
|
|
$ |
56,650 |
|
|
$ |
53,615 |
|
|
$ |
50,020 |
|
|
$ |
46,704 |
|
|
33 |
% |
Adjusted EBITDA |
|
$ |
3,292 |
|
|
$ |
(2,062 |
) |
|
$ |
824 |
|
|
$ |
(4,345 |
) |
|
$ |
(7,488 |
) |
|
144 |
% |
Adjusted EBITDA margin |
|
|
3.0 |
% |
|
|
(1.9 |
%) |
|
|
0.4 |
% |
|
|
(2.0 |
%) |
|
|
(3.7 |
%) |
|
7 ppts |
|
Financial condition: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents |
|
$ |
980,972 |
|
|
$ |
947,749 |
|
|
$ |
950,157 |
|
|
$ |
1,050,414 |
|
|
$ |
1,183,846 |
|
|
(17 |
%) |
Restricted cash |
|
$ |
8,500 |
|
|
$ |
7,800 |
|
|
$ |
9,375 |
|
|
$ |
7,800 |
|
|
$ |
7,800 |
|
|
9 |
% |
Short-term investments |
|
$ |
268,724 |
|
|
$ |
349,395 |
|
|
$ |
432,354 |
|
|
$ |
408,675 |
|
|
$ |
440,858 |
|
|
(39 |
%) |
Total assets |
|
$ |
1,589,691 |
|
|
$ |
1,603,249 |
|
|
$ |
1,704,143 |
|
|
$ |
1,774,183 |
|
|
$ |
1,770,346 |
|
|
(10 |
%) |
Total liabilities |
|
$ |
346,296 |
|
|
$ |
308,166 |
|
|
$ |
331,528 |
|
|
$ |
340,533 |
|
|
$ |
297,390 |
|
|
16 |
% |
Stockholders' equity |
|
$ |
1,243,395 |
|
|
$ |
1,295,083 |
|
|
$ |
1,372,615 |
|
|
$ |
1,433,650 |
|
|
$ |
1,472,956 |
|
|
(16 |
%) |
ppts = percentage points |
|||||||||||||||||||||||
Marqeta, Inc. Reconciliation of GAAP to NON-GAAP Measures (in thousands) |
|||||||||||||||
Information Regarding Non-GAAP Measures |
|||||||||||||||
In addition to the financial measures prepared in accordance with generally accepted accounting principles in |
|||||||||||||||
We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; restructuring charges; acquisition-related expenses which consist of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions, and cash and non-cash postcombination compensation expenses; income tax expense (benefit); and other income (expense), net, which consists of interest income from our short-term investments, realized foreign currency gains and losses, our share of equity method investments’ profit or loss, impairment of equity method investments or other financial instruments, and gain from sale of equity method investments. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. Additionally, we utilize Adjusted EBITDA as an input into our calculation of our annual employee bonus plans. |
|||||||||||||||
Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net revenue. This measure is used by management and our board of directors to evaluate our operating efficiency. |
|||||||||||||||
We define Non-GAAP operating expenses as total operating expenses adjusted to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; restructuring charges; and acquisition-related expenses which consists of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions, and cash and non-cash postcombination compensation expenses. We believe that non-GAAP operating expenses is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. |
|||||||||||||||
Adjusted EBITDA, Adjusted EBITDA Margin, and Non-GAAP operating expenses should not be considered in isolation, or construed as an alternative to net loss, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the Company's liquidity. In addition, other companies may calculate Adjusted EBITDA differently than Marqeta does, which limits its usefulness in comparing Marqeta’s financial results with those of other companies. |
|||||||||||||||
The following table shows Marqeta's GAAP results reconciled to non-GAAP results included in this release: |
|||||||||||||||
|
Three Months Ended December 31, |
|
Twelve Months Ended December 31, |
||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
GAAP net revenue |
$ |
118,822 |
|
|
$ |
203,805 |
|
|
$ |
676,171 |
|
|
$ |
748,206 |
|
GAAP net loss |
$ |
(40,376 |
) |
|
$ |
(26,326 |
) |
|
$ |
(222,962 |
) |
|
$ |
(184,780 |
) |
GAAP net loss margin |
|
(34 |
%) |
|
|
(13 |
%) |
|
|
(33 |
%) |
|
|
(25 |
%) |
GAAP total operating expenses |
$ |
139,571 |
|
|
$ |
141,447 |
|
|
$ |
612,529 |
|
|
$ |
529,809 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net loss |
$ |
(40,376 |
) |
|
$ |
(26,326 |
) |
|
$ |
(222,962 |
) |
|
$ |
(184,780 |
) |
Depreciation and amortization expense |
|
3,159 |
|
|
|
1,019 |
|
|
|
10,741 |
|
|
|
3,853 |
|
Share-based compensation expense |
|
45,027 |
|
|
|
45,081 |
|
|
|
183,630 |
|
|
|
160,743 |
|
Payroll tax expense related to share-based compensation |
|
393 |
|
|
|
209 |
|
|
|
2,211 |
|
|
|
1,977 |
|
Acquisition-related expenses1 |
|
11,051 |
|
|
|
526 |
|
|
|
75,473 |
|
|
|
1,439 |
|
Restructuring |
|
— |
|
|
|
— |
|
|
|
8,670 |
|
|
|
— |
|
Other income, net |
|
(14,932 |
) |
|
|
(28,468 |
) |
|
|
(52,440 |
) |
|
|
(24,926 |
) |
Income tax (benefit) expense |
|
(1,030 |
) |
|
|
471 |
|
|
|
(7,613 |
) |
|
|
(102 |
) |
Adjusted EBITDA |
$ |
3,292 |
|
|
$ |
(7,488 |
) |
|
$ |
(2,290 |
) |
|
$ |
(41,796 |
) |
Adjusted EBITDA Margin |
|
3.0 |
% |
|
|
(3.7 |
%) |
|
|
(0.3 |
%) |
|
|
(5.6 |
%) |
|
|
|
|
|
|
|
|
||||||||
GAAP Total operating expenses |
$ |
139,571 |
|
|
$ |
141,447 |
|
|
$ |
612,529 |
|
|
$ |
529,809 |
|
Depreciation and amortization expense |
|
(3,159 |
) |
|
|
(1,019 |
) |
|
|
(10,741 |
) |
|
|
(3,853 |
) |
Share-based compensation expense |
|
(45,027 |
) |
|
|
(45,081 |
) |
|
|
(183,630 |
) |
|
|
(160,743 |
) |
Payroll tax expense related to share-based compensation |
|
(393 |
) |
|
|
(209 |
) |
|
|
(2,211 |
) |
|
|
(1,977 |
) |
Restructuring |
|
— |
|
|
|
— |
|
|
|
(8,670 |
) |
|
|
— |
|
Acquisition-related expenses |
|
(11,051 |
) |
|
|
(526 |
) |
|
|
(75,473 |
) |
|
|
(1,439 |
) |
Non-GAAP operating expenses |
$ |
79,941 |
|
|
$ |
94,612 |
|
|
$ |
331,804 |
|
|
$ |
361,797 |
|
_______________ |
|||||||||||||||
(1) Acquisition-related expenses, which include transaction costs, integration costs and cash and non-cash postcombination compensation expense, have been excluded from Adjusted EBITDA as such expenses are not reflective of our ongoing core operations and are not representative of the ongoing costs necessary to operate our business; instead, these are costs specifically associated with a discrete transaction. |
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228431684/en/
IR Contact: Marqeta Investor Relations, IR@marqeta.com
Source: Marqeta, Inc.
FAQ
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