Marqeta Reports Second Quarter 2024 Financial Results
Marqeta (NASDAQ: MQ), a global modern card issuing platform, reported Q2 2024 financial results. The Total Processing Volume (TPV) increased 32% year-over-year to $71 billion. However, Net Revenue fell 46% to $125 million due to a new Cash App contract impacting revenue presentation. Gross Profit decreased 6% to $79 million, while GAAP Net Income surged to $119 million, bolstered by a one-time $158 million share-based compensation reversal. Adjusted EBITDA was negative $2 million. Key developments include a 5-year deal with Varo Bank and being the first US issuer-processor certified by Visa for Visa Flexible Credential.
Marqeta (NASDAQ: MQ), una piattaforma globale moderna di emissione di carte, ha riportato i risultati finanziari del Q2 2024. Il Volume Totale di Elaborazione (TPV) è aumentato del 32% rispetto all’anno precedente, raggiungendo i 71 miliardi di dollari. Tuttavia, il Ricavo Netto è sceso del 46% a 125 milioni di dollari a causa di un nuovo contratto con Cash App che ha influenzato la presentazione dei ricavi. Il Profitto Lordo è diminuito del 6% a 79 milioni di dollari, mentre il Reddito Netto GAAP è aumentato a 119 milioni di dollari, grazie a un’inversione una tantum di 158 milioni di dollari per compensazione basata su azioni. L'EBITDA aggiustato è stato negativo per 2 milioni di dollari. Tra i principali sviluppi, vi è un contratto di 5 anni con Varo Bank e il fatto di essere il primo emittente-processore statunitense certificato da Visa per la Visa Flexible Credential.
Marqeta (NASDAQ: MQ), una plataforma global moderna de emisión de tarjetas, informó los resultados financieros del Q2 2024. El Volumen Total Procesado (TPV) aumentó un 32% interanual, alcanzando los 71 mil millones de dólares. Sin embargo, los Ingresos Netos cayeron un 46% a 125 millones de dólares debido a un nuevo contrato con Cash App que impactó la presentación de ingresos. El Beneficio Bruto disminuyó un 6% a 79 millones de dólares, mientras que el Ingreso Neto GAAP se disparó a 119 millones de dólares, impulsado por una reversión única de compensación basada en acciones de 158 millones de dólares. El EBITDA ajustado fue negativo en 2 millones de dólares. Los desarrollos clave incluyen un contrato de 5 años con Varo Bank y ser el primer emisor-procesador de EE. UU. certificado por Visa para Visa Flexible Credential.
Marqeta (NASDAQ: MQ)는 글로벌 현대 카드 발급 플랫폼으로, 2024년 2분기 재무 실적을 발표했습니다. 총 처리량(TPV)은 전년 대비 32% 증가하여 710억 달러에 달했습니다. 그러나 순수익은 새로운 Cash App 계약으로 인해 수익 발표에 영향을 받아 46% 감소하여 1억 2500만 달러에 그쳤습니다. 총 이익은 6% 감소하여 7900만 달러였고, GAAP 순이익은 1억 1900만 달러로 증가했으며, 이는 1회성 1억 5800만 달러의 주식 기반 보상 반전 덕분입니다. 조정된 EBITDA는 200만 달러의 적자를 기록했습니다. 주요 발전 사항으로는 Varo Bank와의 5년 계약과 Visa Flexible Credential에 대해 Visa의 인증을 받은 최초의 미국 발급-처리 업체라는 점이 포함됩니다.
Marqeta (NASDAQ: MQ), une plateforme mondiale moderne d'émission de cartes, a annoncé les résultats financiers du deuxième trimestre 2024. Le Volume Total de Traitement (TPV) a augmenté de 32% par rapport à l'année précédente pour atteindre 71 milliards de dollars. Cependant, le Revenu Net a chuté de 46% à 125 millions de dollars en raison d'un nouveau contrat avec Cash App, ce qui a eu un impact sur la présentation des revenus. Le Profit Brut a diminué de 6% à 79 millions de dollars, tandis que le Revenu Net conforme aux PCGR a grimpé à 119 millions de dollars, renforcé par un retour unique de compensation basée sur des actions de 158 millions de dollars. L'EBITDA ajusté était négatif de 2 millions de dollars. Les développements clés incluent un contrat de 5 ans avec Varo Bank et le fait d'être le premier émetteur-processeur américain certifié par Visa pour Visa Flexible Credential.
Marqeta (NASDAQ: MQ), eine globale moderne Plattform zur Kartenherausgabe, hat die Finanz Ergebnisse für das 2. Quartal 2024 veröffentlicht. Das totale Verarbeitungsvolumen (TPV) stieg im Jahresvergleich um 32% auf 71 Milliarden Dollar. Dennoch fiel der Nettoumsatz um 46% auf 125 Millionen Dollar, was auf einen neuen Cash App-Vertrag zurückzuführen ist, der die Umsatzpräsentation beeinflusste. Der Bruttogewinn sank um 6% auf 79 Millionen Dollar, während der GAAP-Reinverdienst auf 119 Millionen Dollar anstieg, unterstützt durch eine einmalige Rückstellung für aktienbasierte Vergütungen in Höhe von 158 Millionen Dollar. Das bereinigte EBITDA lag bei minus 2 Millionen Dollar. Zu den wichtigsten Entwicklungen gehören ein 5-Jahres-Vertrag mit der Varo Bank und die Tatsache, dass Marqeta der erste US-Emittent-Processor ist, der von Visa für die Visa Flexible Credential zertifiziert wurde.
- Total Processing Volume (TPV) increased by 32% to $71 billion.
- GAAP Net Income increased to $119 million due to a one-time benefit.
- Signed a 5-year deal with Varo Bank, enhancing market position.
- First US issuer-processor certified by Visa for Visa Flexible Credential.
- Net income margin improved to 95% from -25% year-over-year.
- Net Revenue decreased by 46% to $125 million due to a new contract with Cash App.
- Gross Profit declined by 6% to $79 million.
- Adjusted EBITDA was negative $2 million.
- Adjusted EBITDA margin decreased by 2 percentage points.
Insights
Marqeta's Q2 2024 results present a mixed picture. The 32% YoY increase in Total Processing Volume to
The Gross Profit decline of
Investors should closely monitor Marqeta's ability to diversify revenue streams and improve profitability in coming quarters as the Cash App contract impact normalizes.
Marqeta's Q2 results highlight its technological prowess and market positioning. The partnership with Varo Bank demonstrates Marqeta's ability to serve sophisticated fintech clients, potentially opening doors to more techbank collaborations. The Visa Flexible Credential certification is a significant achievement, positioning Marqeta at the forefront of payment innovation.
The Zoho deal underscores Marqeta's expansion into the B2B sector, tapping into the vast SMB market. These partnerships and innovations could drive future growth, offsetting challenges from the Cash App contract renewal.
However, the company needs to translate these technological advancements into sustainable revenue growth and profitability. The coming quarters will be important in assessing whether Marqeta can leverage its innovations to improve its financial performance and competitive position in the evolving fintech landscape.
Marqeta's Q2 results reflect broader trends in the fintech sector. The strong TPV growth aligns with the increasing adoption of digital payments and embedded finance solutions. However, the revenue decline highlights the intense competition and pricing pressures in the industry.
The Varo Bank partnership and Visa Flexible Credential certification position Marqeta well in the evolving Banking-as-a-Service (BaaS) and Buy Now, Pay Later (BNPL) markets. These segments are expected to see significant growth, potentially driving Marqeta's future performance.
The Zoho deal indicates Marqeta's strategic push into the underserved SMB market, which could be a significant growth driver. However, investors should watch for execution risks as Marqeta expands into new verticals and geographies. The company's ability to balance innovation with profitability will be key to its long-term success in the competitive fintech landscape.
The global modern card issuer reported Total Processing Volume of
The Company reported Total Processing Volume (TPV) of
The Company reported Net Revenue of
GAAP Net Income for the quarter was
"The second quarter demonstrates the great returns on our reinvigorated go-to-market approach combined with our ability to deliver innovation at scale. We signed a pioneering techbank, launched a new payment innovation that reimagines what a card can be, and deepened the array of services we can offer globally, all while continuing to grow our TPV and operate with focused efficiency,” said Simon Khalaf, CEO at Marqeta.
Marqeta highlighted several recent business updates that demonstrate its current business momentum:
-
Marqeta announced it has signed a five year deal with Varo Bank, N.A., the first nationally-chartered consumer techbank in the
U.S. , to become its issuer processor. Varo selected Marqeta for its ability to combine sophisticated virtual, tokenized and physical card issuing technology for the more than five million cards it has in market, with faster speed to market, helping Varo achieve its goals of helping people save and manage their money more easily.
- We recently announced that we are the first US. issuer-processor certified by Visa to support Visa Flexible Credential, which will allow a single card product to toggle between payment methods on each transaction, bringing multiple funding sources to one card. Cardholders can choose whether to use debit, credit or “pay-in-four” with Buy Now Pay Later. Currently, we are partnering with Affirm, the first program announced in the US to offer Visa Flexible Credential, to enable this capability for their Affirm Card. This reinforces Marqeta’s commitment to innovation and provides us with further differentiation in the BNPL landscape.
- Marqeta signed Zoho, a global tech company serving over 700 thousand businesses, which transforms how SMBs and enterprises work with a comprehensive suite of more than 50 business management applications. Zoho selected Marqeta for its ability to deliver expense management and embedded finance expertise to launch a card solution that enables businesses to manage expenses efficiently while also supporting their long-term growth.
Operating Highlights
In thousands, except percentages and per share data. % change is calculated over the comparable prior-year period (unaudited) |
Three Months Ended June 30, |
|
% Change |
|
Six Months Ended June 30, |
|
% Change |
||||||||||||||||||||
|
2024 |
|
|
|
2023 |
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|||||||||||
Financial metrics: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net revenue |
$ |
125,270 |
|
|
$ |
231,115 |
|
|
(46 |
%) |
|
$ |
243,237 |
|
|
$ |
448,456 |
|
|
(46 |
%) |
||||||
Gross profit |
$ |
79,353 |
|
|
$ |
84,609 |
|
|
(6 |
%) |
|
$ |
163,512 |
|
|
$ |
173,771 |
|
|
(6 |
%) |
||||||
Gross margin |
|
63 |
% |
|
|
37 |
% |
|
26 ppts |
|
|
67 |
% |
|
|
39 |
% |
|
28 ppts |
||||||||
Total operating (benefit) expenses |
( |
) |
|
$ |
154,030 |
|
|
(117 |
%) |
|
$ |
108,323 |
|
|
$ |
330,624 |
|
|
(67 |
%) |
|||||||
Net income (loss) |
$ |
119,108 |
|
|
( |
) |
|
303 |
% |
|
$ |
83,048 |
|
|
($ |
127,598 |
) |
|
165 |
% |
|||||||
Net income (loss) margin |
|
95 |
% |
|
|
(25 |
%) |
|
120 ppts |
|
|
34 |
% |
|
|
(28 |
%) |
|
62 ppts |
||||||||
Net income (loss) per share - basic and diluted |
|
|
|
( |
) |
|
309 |
% |
|
|
|
|
( |
) |
|
167 |
% |
||||||||||
Key operating metric and Non-GAAP financial measures: |
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Total Processing Volume (TPV) (in millions) 1 |
$ |
70,627 |
|
|
$ |
53,615 |
|
|
32 |
% |
|
$ |
137,294 |
|
|
$ |
103,635 |
|
|
32 |
% |
||||||
Adjusted EBITDA 2 |
( |
) |
|
$ |
824 |
|
|
(321 |
%) |
|
$ |
7,409 |
|
|
( |
) |
|
310 |
% |
||||||||
Adjusted EBITDA margin 2 |
|
(1 |
%) |
|
|
0.4 |
% |
|
(2 ppts) |
|
|
3 |
% |
|
|
(1 |
%) |
|
4 ppts |
||||||||
Non-GAAP operating expenses 2 |
$ |
81,170 |
|
|
$ |
83,785 |
|
|
(3 |
%) |
|
$ |
156,103 |
|
|
$ |
177,292 |
|
|
(12 |
%) |
||||||
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. |
Second Quarter 2024 Financial Results:
Total Processing Volume increased by
Net Revenue of
Gross Profit decreased by
Net Income increased by
Adjusted EBITDA was negative
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 1-844-826-3035 or direct at 1-412-317-5195. 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 August 14, 2024, 8:59 p.m. Pacific time (11:59 p.m. Eastern time). The confirmation code for the replay is 10190091.
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 expected accounting treatment and changes to revenue and gross profit; 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, including credit card issuing; and statements made by Marqeta’s CEO and CFO. 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 politics and 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 or incorporated by reference in the “Risk Factors” disclosed in Marqeta's Annual Report on Form 10-K for the year ended December 31, 2023 and subsequent Quarterly Reports on Form 10-Q, 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 Twitter 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 per share amounts) (unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net revenue |
$ |
125,270 |
|
|
$ |
231,115 |
|
|
$ |
243,237 |
|
|
$ |
448,456 |
|
Costs of revenue |
|
45,917 |
|
|
|
146,506 |
|
|
|
79,725 |
|
|
|
274,685 |
|
Gross profit |
|
79,353 |
|
|
|
84,609 |
|
|
|
163,512 |
|
|
|
173,771 |
|
Operating (benefit) expenses: |
|
|
|
|
|
|
|
||||||||
Compensation and benefits |
|
103,166 |
|
|
|
113,521 |
|
|
|
198,156 |
|
|
|
248,159 |
|
Technology |
|
14,769 |
|
|
|
13,154 |
|
|
|
27,887 |
|
|
|
27,744 |
|
Professional services |
|
4,808 |
|
|
|
4,873 |
|
|
|
8,678 |
|
|
|
10,310 |
|
Occupancy |
|
1,204 |
|
|
|
1,057 |
|
|
|
2,298 |
|
|
|
2,211 |
|
Depreciation and amortization |
|
3,956 |
|
|
|
2,494 |
|
|
|
7,493 |
|
|
|
4,474 |
|
Marketing and advertising |
|
728 |
|
|
|
561 |
|
|
|
1,106 |
|
|
|
1,002 |
|
Other operating expenses |
|
3,418 |
|
|
|
5,103 |
|
|
|
7,322 |
|
|
|
10,336 |
|
Executive chairman long-term performance award |
|
(157,738 |
) |
|
|
13,267 |
|
|
|
(144,617 |
) |
|
|
26,388 |
|
Total operating (benefit) expenses |
|
(25,689 |
) |
|
|
154,030 |
|
|
|
108,323 |
|
|
|
330,624 |
|
Income (loss) from operations |
|
105,042 |
|
|
|
(69,421 |
) |
|
|
55,189 |
|
|
|
(156,853 |
) |
Other income, net |
|
14,216 |
|
|
|
10,762 |
|
|
|
28,143 |
|
|
|
22,434 |
|
Income (loss) before income tax expense |
|
119,258 |
|
|
|
(58,659 |
) |
|
|
83,332 |
|
|
|
(134,419 |
) |
Income tax expense (benefit) |
|
150 |
|
|
|
138 |
|
|
|
284 |
|
|
|
(6,821 |
) |
Net income (loss) |
$ |
119,108 |
|
|
$ |
(58,797 |
) |
|
$ |
83,048 |
|
|
$ |
(127,598 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per share attributable to Class A and Class B common stockholders |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.23 |
|
|
$ |
(0.11 |
) |
|
$ |
0.16 |
|
|
$ |
(0.24 |
) |
Diluted |
$ |
0.23 |
|
|
$ |
(0.11 |
) |
|
$ |
0.16 |
|
|
$ |
(0.24 |
) |
Weighted-average shares used in computing net income (loss) per share attributable to Class A and Class B common stockholders |
|
|
|
|
|
|
|
||||||||
Basic |
|
515,959 |
|
|
|
538,267 |
|
|
|
516,973 |
|
|
|
538,989 |
|
Diluted |
|
524,401 |
|
|
|
538,267 |
|
|
|
525,415 |
|
|
|
538,989 |
|
Marqeta, Inc. Condensed Consolidated Balance Sheets (in thousands) |
|||||||
|
June 30,
|
|
December 31,
|
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
924,730 |
|
|
$ |
980,972 |
|
Restricted cash |
|
8,500 |
|
|
|
8,500 |
|
Short-term investments |
|
228,833 |
|
|
|
268,724 |
|
Accounts receivable, net |
|
25,956 |
|
|
|
19,540 |
|
Settlements receivable, net |
|
27,765 |
|
|
|
29,922 |
|
Network incentives receivable |
|
34,168 |
|
|
|
53,807 |
|
Prepaid expenses and other current assets |
|
22,949 |
|
|
|
27,233 |
|
Total current assets |
|
1,272,901 |
|
|
|
1,388,698 |
|
Operating lease right-of-use assets, net |
|
5,653 |
|
|
|
6,488 |
|
Property and equipment, net |
|
33,011 |
|
|
|
18,764 |
|
Intangible assets, net |
|
32,702 |
|
|
|
35,631 |
|
Goodwill |
|
123,523 |
|
|
|
123,523 |
|
Other assets |
|
20,493 |
|
|
|
16,587 |
|
Total assets |
$ |
1,488,283 |
|
|
$ |
1,589,691 |
|
Liabilities and stockholders' equity |
|
|
|
||||
Current liabilities |
|
|
|
||||
Accounts payable |
$ |
3,685 |
|
|
$ |
1,420 |
|
Revenue share payable |
|
176,425 |
|
|
|
173,645 |
|
Accrued expenses and other current liabilities |
|
157,736 |
|
|
|
161,514 |
|
Total current liabilities |
|
337,846 |
|
|
|
336,579 |
|
Operating lease liabilities, net of current portion |
|
3,254 |
|
|
|
5,126 |
|
Other liabilities |
|
4,808 |
|
|
|
4,591 |
|
Total liabilities |
|
345,908 |
|
|
|
346,296 |
|
Stockholders' equity : |
|
|
|
||||
Preferred stock |
|
— |
|
|
|
— |
|
Common stock |
|
51 |
|
|
|
52 |
|
Additional paid-in capital |
|
1,885,744 |
|
|
|
2,067,776 |
|
Accumulated other comprehensive (loss) income |
|
(1,273 |
) |
|
|
762 |
|
Accumulated deficit |
|
(742,147 |
) |
|
|
(825,195 |
) |
Total stockholders’ equity |
|
1,142,375 |
|
|
|
1,243,395 |
|
Total liabilities and stockholders' equity |
$ |
1,488,283 |
|
|
$ |
1,589,691 |
|
Marqeta, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (unaudited) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net income (loss) |
$ |
83,048 |
|
|
$ |
(127,598 |
) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |
|
|
|
||||
Depreciation and amortization |
|
7,493 |
|
|
|
4,474 |
|
Share-based compensation expense |
|
67,604 |
|
|
|
63,776 |
|
Executive chairman long-term performance award |
|
(144,617 |
) |
|
|
26,388 |
|
Non-cash postcombination compensation expense |
|
— |
|
|
|
32,430 |
|
Non-cash operating leases expense |
|
258 |
|
|
|
1,231 |
|
Amortization of premium (accretion of discount) on short-term investments |
|
(1,823 |
) |
|
|
(2,311 |
) |
Other |
|
(45 |
) |
|
|
499 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(6,692 |
) |
|
|
63 |
|
Settlements receivable |
|
2,157 |
|
|
|
7,513 |
|
Network incentives receivable |
|
19,639 |
|
|
|
(24,402 |
) |
Prepaid expenses and other assets |
|
2,478 |
|
|
|
14,467 |
|
Accounts payable |
|
1,413 |
|
|
|
(3,239 |
) |
Revenue share payable |
|
2,780 |
|
|
|
(16,341 |
) |
Accrued expenses and other liabilities |
|
(6,484 |
) |
|
|
(11,828 |
) |
Operating lease liabilities |
|
(1,075 |
) |
|
|
(1,642 |
) |
Net cash provided by (used in) operating activities |
|
26,134 |
|
|
|
(36,520 |
) |
Cash flows from investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(2,193 |
) |
|
|
(668 |
) |
Capitalization of internal-use software |
|
(10,471 |
) |
|
|
(6,395 |
) |
Business combination, net of cash acquired |
|
— |
|
|
|
(131,914 |
) |
Purchases of short-term investments |
|
— |
|
|
|
(279,548 |
) |
Maturities of short-term investments |
|
40,000 |
|
|
|
296,000 |
|
Net cash provided by (used in) investing activities |
|
27,336 |
|
|
|
(122,525 |
) |
Cash flows from financing activities: |
|
|
|
||||
Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options |
|
108 |
|
|
|
2,299 |
|
Proceeds from shares issued in connection with employee stock purchase plan |
|
1,629 |
|
|
|
1,775 |
|
Taxes paid related to net share settlement of restricted stock units |
|
(20,287 |
) |
|
|
(10,070 |
) |
Repurchase of common stock |
|
(91,162 |
) |
|
|
(67,073 |
) |
Net cash used in financing activities |
|
(109,712 |
) |
|
|
(73,069 |
) |
Net decrease in cash, cash equivalents, and restricted cash |
|
(56,242 |
) |
|
|
(232,114 |
) |
Cash, cash equivalents, and restricted cash- Beginning of period |
|
989,472 |
|
|
|
1,191,646 |
|
Cash, cash equivalents, and restricted cash - End of period |
$ |
933,230 |
|
|
$ |
959,532 |
|
Marqeta, Inc. Financial and Operating Highlights (in thousands, except per share data or as noted) (unaudited) |
|||||||||||||||||||||||
|
|
2024 |
|
2023 |
|
Year over Year Change Q2'24 vs Q2'23 |
|||||||||||||||||
|
|
Second Quarter |
|
First Quarter |
|
Fourth Quarter |
|
Third Quarter |
|
Second Quarter |
|
||||||||||||
Operating performance: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net revenue |
|
$ |
125,270 |
|
|
$ |
117,968 |
|
|
$ |
118,822 |
|
|
$ |
108,891 |
|
|
$ |
231,115 |
|
|
(46 |
%) |
Costs of revenue |
|
|
45,917 |
|
|
|
33,807 |
|
|
|
35,589 |
|
|
|
36,383 |
|
|
|
146,506 |
|
|
(69 |
%) |
Gross profit |
|
|
79,353 |
|
|
|
84,161 |
|
|
|
83,233 |
|
|
|
72,508 |
|
|
|
84,609 |
|
|
(6 |
%) |
Gross margin |
|
|
63 |
% |
|
|
71 |
% |
|
|
70 |
% |
|
|
67 |
% |
|
|
37 |
% |
|
26 ppts |
|
Operating (benefit) expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Compensation and benefits |
|
|
103,166 |
|
|
|
94,990 |
|
|
|
95,790 |
|
|
|
102,433 |
|
|
|
113,521 |
|
|
(9 |
%) |
Technology |
|
|
14,769 |
|
|
|
13,118 |
|
|
|
13,938 |
|
|
|
13,930 |
|
|
|
13,154 |
|
|
12 |
% |
Professional services |
|
|
4,808 |
|
|
|
3,870 |
|
|
|
7,172 |
|
|
|
4,197 |
|
|
|
4,873 |
|
|
(1 |
%) |
Occupancy and equipment |
|
|
1,204 |
|
|
|
1,094 |
|
|
|
1,076 |
|
|
|
1,074 |
|
|
|
1,057 |
|
|
14 |
% |
Depreciation and amortization |
|
|
3,956 |
|
|
|
3,537 |
|
|
|
3,159 |
|
|
|
3,108 |
|
|
|
2,494 |
|
|
59 |
% |
Marketing and advertising |
|
|
728 |
|
|
|
378 |
|
|
|
1,219 |
|
|
|
346 |
|
|
|
561 |
|
|
30 |
% |
Other operating expenses |
|
|
3,418 |
|
|
|
3,905 |
|
|
|
3,804 |
|
|
|
3,833 |
|
|
|
5,103 |
|
|
(33 |
%) |
Executive chairman long-term performance award |
|
|
(157,738 |
) |
|
|
13,121 |
|
|
|
13,413 |
|
|
|
13,413 |
|
|
|
13,267 |
|
|
(1289 |
%) |
Total operating (benefit) expenses |
|
|
(25,689 |
) |
|
|
134,013 |
|
|
|
139,571 |
|
|
|
142,334 |
|
|
|
154,030 |
|
|
(117 |
%) |
Income (loss) from operations |
|
|
105,042 |
|
|
|
(49,852 |
) |
|
|
(56,338 |
) |
|
|
(69,826 |
) |
|
|
(69,421 |
) |
|
251 |
% |
Other income (expense), net |
|
|
14,216 |
|
|
|
13,926 |
|
|
|
14,932 |
|
|
|
15,074 |
|
|
|
10,762 |
|
|
32 |
% |
Income (loss) before income tax expense |
|
|
119,258 |
|
|
|
(35,926 |
) |
|
|
(41,406 |
) |
|
|
(54,752 |
) |
|
|
(58,659 |
) |
|
303 |
% |
Income tax expense (benefit) |
|
|
150 |
|
|
|
134 |
|
|
|
(1,030 |
) |
|
|
238 |
|
|
|
138 |
|
|
9 |
% |
Net income (loss) |
|
$ |
119,108 |
|
|
$ |
(36,060 |
) |
|
$ |
(40,376 |
) |
|
$ |
(54,990 |
) |
|
$ |
(58,797 |
) |
|
303 |
% |
Income (loss) per share - basic |
|
$ |
0.23 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.11 |
) |
|
309 |
% |
Income (loss) per share - diluted |
|
$ |
0.23 |
|
|
$ |
(0.07 |
) |
|
$ |
(0.08 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.11 |
) |
|
309 |
% |
TPV (in millions) |
|
$ |
70,627 |
|
|
$ |
66,666 |
|
|
$ |
61,979 |
|
|
$ |
56,650 |
|
|
$ |
53,615 |
|
|
32 |
% |
Adjusted EBITDA |
|
$ |
(1,817 |
) |
|
$ |
9,228 |
|
|
$ |
3,292 |
|
|
$ |
(2,062 |
) |
|
$ |
824 |
|
|
321 |
% |
Adjusted EBITDA margin |
|
|
(1 |
%) |
|
|
8 |
% |
|
|
3 |
% |
|
|
(2 |
%) |
|
|
0.4 |
% |
|
(2 ppts) |
|
Financial condition: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Cash and cash equivalents |
|
$ |
924,730 |
|
|
$ |
970,357 |
|
|
$ |
980,972 |
|
|
$ |
947,749 |
|
|
$ |
950,157 |
|
|
(3 |
%) |
Restricted cash |
|
$ |
8,500 |
|
|
$ |
8,500 |
|
|
$ |
8,500 |
|
|
$ |
7,800 |
|
|
$ |
9,375 |
|
|
(9 |
%) |
Short-term investments |
|
$ |
228,833 |
|
|
$ |
228,324 |
|
|
$ |
268,724 |
|
|
$ |
349,395 |
|
|
$ |
432,354 |
|
|
(47 |
%) |
Total assets |
|
$ |
1,488,283 |
|
|
$ |
1,558,361 |
|
|
$ |
1,589,691 |
|
|
$ |
1,603,249 |
|
|
$ |
1,704,143 |
|
|
(13 |
%) |
Total liabilities |
|
$ |
345,908 |
|
|
$ |
347,696 |
|
|
$ |
346,296 |
|
|
$ |
308,166 |
|
|
$ |
331,528 |
|
|
4 |
% |
Stockholders' equity |
|
$ |
1,142,375 |
|
|
$ |
1,210,665 |
|
|
$ |
1,243,395 |
|
|
$ |
1,295,083 |
|
|
$ |
1,372,615 |
|
|
(17 |
%) |
ppts = percentage points |
|||||||||||||||||||||||
Marqeta, Inc. Reconciliation of GAAP to NON-GAAP Measures (in thousands) (unaudited) |
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; executive chairman long-term performance award; 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 and performance-based restricted stock units.
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; executive chairman long-term performance award; 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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
GAAP net revenue |
$ |
125,270 |
|
|
$ |
231,115 |
|
|
$ |
243,237 |
|
|
$ |
448,456 |
|
GAAP net income (loss) |
$ |
119,108 |
|
|
$ |
(58,797 |
) |
|
$ |
83,048 |
|
|
$ |
(127,598 |
) |
GAAP net income (loss) margin |
|
95 |
% |
|
|
(25 |
%) |
|
|
34 |
% |
|
|
(28 |
%) |
GAAP total operating (benefit) expenses |
$ |
(25,689 |
) |
|
$ |
154,030 |
|
|
$ |
108,323 |
|
|
$ |
330,624 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income (loss) |
$ |
119,108 |
|
|
$ |
(58,797 |
) |
|
$ |
83,048 |
|
|
$ |
(127,598 |
) |
Depreciation and amortization expense |
|
3,956 |
|
|
|
2,494 |
|
|
|
7,493 |
|
|
|
4,474 |
|
Share-based compensation expense(1) |
|
36,291 |
|
|
|
33,789 |
|
|
|
67,604 |
|
|
|
66,667 |
|
Executive chairman long-term performance award(1) |
|
(157,738 |
) |
|
|
13,267 |
|
|
|
(144,617 |
) |
|
|
26,388 |
|
Payroll tax expense related to share-based compensation |
|
702 |
|
|
|
638 |
|
|
|
1,867 |
|
|
|
1,278 |
|
Acquisition-related expenses (2) |
|
9,930 |
|
|
|
11,684 |
|
|
|
19,873 |
|
|
|
46,152 |
|
Restructuring |
|
— |
|
|
|
8,373 |
|
|
|
— |
|
|
|
8,373 |
|
Other income, net |
|
(14,216 |
) |
|
|
(10,762 |
) |
|
|
(28,143 |
) |
|
|
(22,434 |
) |
Income tax expense (benefit) |
|
150 |
|
|
|
138 |
|
|
|
284 |
|
|
|
(6,821 |
) |
Adjusted EBITDA |
$ |
(1,817 |
) |
|
$ |
824 |
|
|
$ |
7,409 |
|
|
$ |
(3,521 |
) |
Adjusted EBITDA Margin |
|
(1 |
%) |
|
|
0.4 |
% |
|
|
3 |
% |
|
|
(1 |
%) |
|
|
|
|
|
|
|
|
||||||||
GAAP Total operating (benefit) expenses |
$ |
(25,689 |
) |
|
$ |
154,030 |
|
|
$ |
108,323 |
|
|
$ |
330,624 |
|
Depreciation and amortization expense |
|
(3,956 |
) |
|
|
(2,494 |
) |
|
|
(7,493 |
) |
|
|
(4,474 |
) |
Share-based compensation expense(1) |
|
(36,291 |
) |
|
|
(33,789 |
) |
|
|
(67,604 |
) |
|
|
(66,667 |
) |
Executive chairman long-term performance award(1) |
|
157,738 |
|
|
|
(13,267 |
) |
|
|
144,617 |
|
|
|
(26,388 |
) |
Payroll tax expense related to share-based compensation |
|
(702 |
) |
|
|
(638 |
) |
|
|
(1,867 |
) |
|
|
(1,278 |
) |
Restructuring |
|
— |
|
|
|
(8,373 |
) |
|
|
— |
|
|
|
(8,373 |
) |
Acquisition-related expenses (2) |
|
(9,930 |
) |
|
|
(11,684 |
) |
|
|
(19,873 |
) |
|
|
(46,152 |
) |
Non-GAAP operating expenses |
$ |
81,170 |
|
|
$ |
83,785 |
|
|
$ |
156,103 |
|
|
$ |
177,292 |
|
(1) |
Prior period amounts related to the Executive Chairman Long-Term Performance Award have been reclassified to conform to the current period presentation. |
(2) |
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/20240807410535/en/
IR Contact: Marqeta Investor Relations, IR@marqeta.com
Source: Marqeta, Inc.
FAQ
What was Marqeta's Total Processing Volume (TPV) for Q2 2024?
How did Marqeta's Net Revenue change in Q2 2024?
What contributed to Marqeta's GAAP Net Income increase in Q2 2024?
What was Marqeta's Adjusted EBITDA for Q2 2024?
What recent business developments did Marqeta announce in Q2 2024?
