• Total Processing Volume (TPV): $74 billion in Q3, a 30% increase year over year.

• Net Revenue: $128 million in Q3, an 18% increase year over year.

• Gross Profit: $90 million in Q3, a 24% increase year over year.

• Adjusted Operating Expenses: $81 million in Q3, a 9% increase year over year.

• Adjusted EBITDA: $9 million in Q3, with a margin of 7%.

• Net Revenue Take Rate: 17 basis points in Q3.

• Gross Profit Margin: 70% in Q3.

• Interest Income: $14 million in Q3.

• GAAP Net Loss: $29 million in Q3.

• Share Repurchase: Over 9 million shares repurchased at an average price of $5.15, totaling $49 million.

• Cash and Short-term Investments: $1.1 billion at the end of Q3.

• Q4 Net Revenue Growth Outlook: Expected between 10% and 12%.

• Q4 Gross Profit Growth Outlook: Expected between 13% and 15%.

• Full-Year 2024 Net Revenue Growth: Approximately negative 26%.

• Full-Year 2024 Gross Profit Growth: Approximately 6%.

• Q4 Adjusted EBITDA Margin Outlook: Expected between 5% and 7%.

• Full-Year 2024 Adjusted EBITDA Margin: Approximately 5%.

• Warning! GuruFocus has detected 8 Warning Signs with CENX.

Release Date: November 04, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Marqeta Inc (NASDAQ:MQ) reported a 30% year-over-year increase in total processing volume (TPV) for Q3 2024, reaching $74 billion.

• Net revenue for the quarter was $128 million, marking an 18% increase compared to the same period in 2023.

• Gross profit grew by 24% year-over-year to $90 million, indicating strong financial performance.

• The company successfully launched Portfolio Migration, a new product that simplifies upgrading existing card programs onto Marqeta's platform, enhancing customer transition experiences.

• Marqeta Inc (NASDAQ:MQ) introduced Marqeta Flex, a solution aimed at revolutionizing BNPL payment options, with plans to roll it out in mid-2025, showcasing innovation in the BNPL landscape.

Negative Points

• The company faced delays in launching new programs due to increased regulatory scrutiny, impacting Q4 growth expectations.

• 15 expected program launches in Q3 were delayed by an average of 70 days, affecting gross profit growth.

• Some sophisticated fintech customers are taking more program management responsibilities in-house, reducing Marqeta's gross profit growth by 2 to 3 points.

• The time to launch new programs increased by 30% to 40% compared to 2023, due to heightened regulatory requirements.

• The company's Q4 guidance reflects a 6- to 9-point reduction in expected net revenue and gross profit growth, attributed to regulatory challenges and customer shifts.