Q3 2024 Marqeta Inc Earnings Call Transcript
Key Points
- Marqeta Inc (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 (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.
- 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.
Ladies and gentlemen, greetings and welcome to the Marqeta, Inc., third-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
It is now my pleasure to introduce your host, Stacey Finerman, Vice President of Investor Relations. Please go ahead.
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 31, 2023, and our subsequent periodic filings with the SEC.
Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of the time of this call, and the company does not assume any obligation or intent to update them except as
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