Marqeta Inc (NASDAQ:MQ) Earnings Report

Marqeta Inc, a modern card issuing platform, experienced a 30% drop in shares following its third-quarter earnings report, which fell short of analyst expectations and provided disappointing guidance for the fourth quarter.

Earnings Overview

• Adjusted Loss: -$0.06 per share (vs. expected -$0.05)
• Revenue: $128 million (slightly below $128.09 million estimate, 18% increase YoY)
• Total Processing Volume (TPV): Grew 30% YoY to $74 billion
• Gross Profit: Increased 24% to $90 million

Fourth Quarter Guidance

The company's guidance for Q4 was less favorable, anticipating:
– Net Revenue Growth: 10-12%
– Gross Profit Growth: 13-15%

CEO Comments

CEO Simon Khalaf stated, "In the third quarter, our true growth trajectory was back on display as we lapped the Block contract renewal, while continuing to demonstrate operational discipline to fuel strong Adjusted EBITDA."

Outlook Factors

Marqeta mentioned that "heightened scrutiny of the banking environment and specific customer program changes" influenced its fourth-quarter outlook, with Adjusted EBITDA margin expected between 5-7%.