Marqeta celebrated its initial public offering on NASDAQ on June 9, 2021.
Source: Nasdaq
Marketa The company’s shares plunged more than 30% in after-hours trading on Monday release Fourth-quarter guidance was weaker than expected.
Here’s how the company performed compared to Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Loss per share: Adjusted 6 cents, expected loss 5 cents
- income: $128 million vs. $128.1 million expected
While third-quarter results showed slightly disappointing revenue and profits, Marqeta’s forecast for the current period is more concerning.
The payment processing company said fourth-quarter revenue will grow 10% to 12% compared with the same period last year. Analysts expect growth to exceed 17%, according to LSEG.
Marqeta, which operates primarily as a card issuance platform, attributed the guidance lapse to “a rigorous review of changes in the banking environment and specific customer programs.” The company has been in trouble for some time, with its stock price down more than 80% from its peak in 2021, the year it went public. The stock fell 15% in the year before the report.
Total processing volume reached US$74 billion, with annual growth exceeding 30%. Net income and gross profit increased by 18% and 24% respectively.
Marqeta’s digital commerce business sells payments technology designed to detect potential fraud and ensure funds are transferred correctly. It also issues customized physical cards that look like credit or debit cards and can be used for point-of-sale purchases.
The company has been trying to break into the “buy now, pay later” business with a recently launched product called Marqeta Flex. The service obtains BNPL from lenders such as confirm or Klarna to any credit card that accepts Mastercard and Visa.
“It’s an orchestration layer, but it’s about issuance, processing, disputes and chargebacks,” CEO Simon Khalaf told CNBC at the Money2020 conference in Las Vegas last week. “So it’s not actually BNPL. The Wild West. It’s actually very mature and there’s a reason why a lot of people are into it.”
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