Marqeta (NASDAQ:MQ), a digital platform to offer and manage credit cards, reported Q2 earnings today, delivering top line revenue of $187 million, an increase of 53% versus the same period year prior. Marqeta earned a GAAP net income loss of $45 million.
Shares in Marqeta declined in after-hours trading as revenue guidance remained flat, disappointing investors.
Jason Gardner, founder and CEO of Marqeta, commented on the results:
“Marqeta’s platform continues to enable customers across many different verticals to build products on the cutting edge of payments, and serve as an accelerator for their growth. Our second quarter results are testament to that breadth and depth, as we again launched new products and bought on major new customers globally.”
Net revenue increased by $64 million, or 53% year-over-year, rising to $187 million from $122 million in the second quarter of 2021, resulting from a 53% increase in Total processing volume (TPV) year-over-year rising to $40 billion from $27 billion.
Gross profit increased by 66% year-over-year, rising to $78 million, from $47 million in the second quarter of 2021 primarily due to TPV growth.
Gross margin was 42% in the second quarter of 2022.
Marqeta is a leader in the card management space and growing rapidly but some industry observers worry about rising competition as well as a questionable economy.
Marqeta’s guidance for Q3 of 2022:
- Third Quarter 2022 Net Revenue Growth 36 – 38%
- Gross Profit Margin 43- 44%
- Adjusted EBITDA Margin Negative 8-9%