Marqeta's stock leaps as payments company posts upbeat earnings

By Emily Bary

'We've shown continued sales bookings momentum against a backdrop of operational discipline, continued scale and new innovations,' CEO says

Shares of Marqeta Inc. were ahead 6% in Tuesday's extended session after the card-issuing company exceeded expectations on a profit metric for its latest quarter and also posted upbeat revenue.

Marqeta (MQ) posted a third-quarter net loss of $55.0 million, or 10 cents a share, compared with $53.2 million, or 10 cents a share, in the same period a year earlier. The FactSet consensus was also for a 10-cent loss on a per-share basis.

The company also posted a loss of $2.1 million on the basis of adjusted earnings before interest, taxes, depreciation and amortization, or Ebitda, compared with a $13.6 million loss on the metric a year earlier. Analysts had been modeling a $12.6 million loss.

Net revenue fell to $108.9 million from $191.6 million, while analysts were looking for $95.7 million.

Don't miss: Upstart's stock gets hammered as earnings outlook comes in light

The company processed $56.7 billion in volume for the quarter, up from $42.5 billion in same period a year earlier.

"We've shown continued sales bookings momentum against a backdrop of operational discipline, continued scale and new innovations through the launch of our credit platform," Chief Executive Simon Khalaf said in the earnings release.

Marqeta is "in a good position to return to strong growth by Q3 2024 as we lap the Cash App contract and expect to accelerate that growth in future years as the market for embedded finance continues to materialize," he added.

See also: Toast's stock crumbles after earnings, with outlook change deemed 'disappointing'

Marqeta shares have declined 12% so far this year as the S&P 500 SPX has advanced 14%.

-Emily Bary

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

11-07-23 1731ET

Copyright (c) 2023 Dow Jones & Company, Inc.