Marqeta Q4 2023 Earnings Report
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.
Marqeta
Marqeta
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.
- Risk of financial services and banking sector instability.