Marqeta Inc (MQ) Q1 2025 Earnings Call Highlights: Strong TPV Growth Amidst Macroeconomic Challenges

GuruFocus News

Thu, May 8, 2025, 12:29 AM 3 min read

• Total Processing Volume (TPV): $84 billion, a 27% summation twelvemonth implicit year.

• Net Revenue: $139 million, an 18% summation twelvemonth implicit year.

• Gross Profit: $99 million, a 17% summation twelvemonth implicit year, with a gross borderline of 71%.

• Adjusted EBITDA: $20 million, representing a 14% margin.

• Net Loss: $8 million, including $10 cardinal of involvement income.

• Cash and Short-term Investments: Approximately $1 cardinal astatine the extremity of the quarter.

• Share Repurchase: 26.2 cardinal shares repurchased astatine an mean terms of $4.22, with $270 cardinal remaining connected buyback authorization.

• Block Net Revenue Concentration: 45%, down 1 constituent from Q4 2024 and 4 points from Q1 2024.

• Net Revenue Take Rate: 16 ground points, 1 bp little than past quarter.

• Adjusted Operating Expenses: $79 million, a 5% summation twelvemonth implicit year.

• Warning! GuruFocus has detected 4 Warning Signs with MQ.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Marqeta Inc (NASDAQ:MQ) reported a 27% summation successful Total Processing Volume (TPV) to $84 cardinal successful Q1 2025, showcasing beardown growth.

• Net gross grew by 18% twelvemonth implicit twelvemonth to $139 million, driven by divers usage cases and lawsuit demand.

• The institution achieved a gross nett of $99 million, a 17% summation from Q1 2024, with a gross borderline of 71%.

• Adjusted EBITDA reached $20 million, translating to a 14% margin, indicating improved profitability.

• Marqeta Inc (NASDAQ:MQ) successfully executed migrations for important programs similar Perpay and Bitpanda, demonstrating its capableness to grip analyzable transitions efficiently.

• The renegotiated level spouse statement impacted nett gross growth, reducing it by 3 points successful Q1.

• A planned migration with Varo was terminated, affecting aboriginal maturation expectations.

• Despite beardown TPV growth, the institution faces macroeconomic uncertainties that could interaction aboriginal performance.

• Block's nett gross attraction remains precocious astatine 45%, indicating a reliance connected a azygous ample customer.

• The institution anticipates little nett gross maturation successful Q2 2025 owed to the renegotiated agreement, with expectations betwixt 11% and 13%.

Q: Can you sermon Marqeta's relation successful agentic commerce and however it aligns with your capabilities? A: Michael Milotich, CEO and CFO, explained that Marqeta is well-positioned to alteration innovations similar agentic commerce owed to its dynamic capabilities and real-time decision-making platform. The institution focuses connected merchandise innovation, interior productivity, and operational efficiencies, leveraging AI to heighten lawsuit worth and support.