Q1 2024 Marqeta Inc Earnings Call Transcript
Key Points
- Total processing volume (TPV) increased by 33% year-over-year to $67 billion, demonstrating strong growth.
- Net revenue reached $118 million, with significant contributions from new and existing customers, highlighting successful expansion and customer retention.
- Gross profit was reported at $84 million, with a gross margin of 71%, indicating efficient cost management despite pricing pressures.
- Adjusted EBITDA was positive at $9 million, reflecting effective operational efficiencies and cost management strategies.
- Marqeta Inc (MQ) launched new programs and expanded geographically, such as the expansion of Uber Eats into new markets and the introduction of the Rain partnership for accelerated wage access.
- Net revenue contracted by 46% year-over-year, influenced heavily by a 58 percentage point decrease due to the revenue presentation change from the Cash App contract renewal.
- Gross profit saw a contraction of 6% compared to the previous year, primarily due to the catch-up renewal pricing adjustments.
- The company faces ongoing challenges with the revenue presentation changes, which continue to negatively impact reported net revenue figures.
- Despite growth, there is a reliance on a few large customers, like Cash App, which poses risks if these key relationships are altered or if customer concentration shifts.
- Marqeta Inc (MQ) is still navigating through the impacts of restructuring and must manage the transition carefully to maintain service quality and customer relationships.
Good afternoon, ladies and gentlemen, and thank you for standing by, and welcome to the market first quarter 2024 earnings conference call. At this time, lines have been placed on mute to prevent any background noise. After the speakers' remarks, we will open the lines for your questions.
As a reminder, this conference call is being recorded. I would now like to turn the conference over to Stacy Fireman, Vice President of Investor Relations. Thank you, and you may begin.
Thanks, operator. Before we begin, I would like to remind everyone that today's call may contain forward looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our Investor Relations website, including our annual report on Form 10 K for the period ended December 31st, 2023, and our subsequent periodic filings with the SEC. Our actual results may differ materially from any forward-looking statements we make today. These
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