Marqeta stock rises after earnings, forecast beats estimates

Shares of Marqeta Inc. rose 4% in after-hours trading on Wednesday after the card-issuing company beat expectations with its latest results and outlook.

The company generated a net loss of $60.6 million, or 11 cents a share, in the first quarter, compared to a loss of $12.8 million, or 10 cents a share, in the year-ago quarter. Analysts followed by FactSet were expecting a loss of 9 cents per share.

Marqueta MQ,
reported a loss based on adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $10.5 million while it reported positive adjusted Ebitda of $1.6 million in the year-ago quarter. Analysts had forecast an adjusted EBITDA loss of $12.7 million for the most recent quarter.

Net sales increased to $166.1 million from $108.0 million while the FactSet consensus was $161.3 million. Revenue growth reflected a 53% increase in total processing volume, which reached $36.6 billion in the quarter.

For the second quarter, Marqeta expects net sales growth of 46% to 48% and a gross profit margin of 40% to 41%. The company also expects a negative adjusted Ebitda margin of 10% to 11%.

FactSet consensus of $167.0 million in net income for the June quarter implied analysts were expecting growth of 36.5%. Analysts followed by FactSet were also expecting a gross margin of 40.5% and a negative Ebitda margin of 9.9%.

Shares of Marqeta fell 5.7% in Wednesday’s regular session and have seen a sharp decline so far this year. The stock is down 61% so far in 2022, as is the S&P 500 SPX,
has lost 17%. Marqeta stock rises after earnings, forecast beats estimates

Brian Lowry

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