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Dec 31, 2023
Marqeta Q4 2023 Earnings Report
Marqeta's Q4 2023 financial results reflected a decrease in net revenue due to the Cash App contract renewal, but showed growth in total processing volume and improvements in adjusted EBITDA.
Key Takeaways
Marqeta reported a 33% year-over-year increase in total processing volume (TPV) to $62 billion for Q4 2023. Net revenue for the quarter was $119 million, a 42% decrease year-over-year, primarily due to the Cash App contract renewal. The company reported a GAAP net loss of $40 million and Adjusted EBITDA income of $3 million for the quarter.
Total Processing Volume (TPV) increased by 33% year-over-year to $62 billion.
Net revenue decreased by 42% year-over-year to $119 million, impacted by the Cash App contract renewal.
Gross profit decreased by 4% year-over-year to $83 million.
Net loss increased by 53% year-over-year to $40 million, driven by expenses related to the Power Finance acquisition.
Forward Guidance
Marqeta is focused on platform enhancement with new credit card program management capabilities, renewing processing volume to longer-term deals, and delivering on operating efficiency. The company sees continued growth in Fintech and opportunities in embedded finance.
Positive Outlook
- Enhanced platform with new credit card program management capabilities.
- Renewed the large majority of processing volume to longer term deals.
- Delivered on operating efficiency.
- Continued growth in Fintech.
- Exciting opportunities in embedded finance.
Challenges Ahead
- Uncertainties related to global economies.
- Risk of not attracting, retaining, diversifying, and expanding customer base.
- Risk of consumers and customers not perceiving the benefits of Marqeta’s products.
- Risk of changes in the regulatory landscape.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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