Earnings Results: Marqeta stock ticks higher after ‘uneventful yet very strong’ earnings

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Marqeta Inc. shares rose 4% in after-hours trading Wednesday after the card-issuing company topped expectations with its latest results and outlook.

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

Marqeta
MQ,
-5.69%

reported a loss on the basis of adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of $10.5 million, whereas it posted positive adjusted Ebitda of $1.6 million in the year-prior quarter. Analysts were modeling an adjusted Ebitda loss of $12.7 million for the latest quarter.

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

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

The FactSet consensus of $167.0 million in net revenue for the June quarter implied that analysts expected 36.5% growth. Analysts tracked by FactSet were also anticipating a 40.5% gross margin and a negative Ebitda margin of 9.9%.

Marqeta shares dropped 5.7% in Wednesday’s regular session and have experienced a sharp slide thus far this year. The stock has lost 61% thus far in 2022, as the S&P 500
SPX,
-1.65%

has lost 17%.

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