Member Exclusive

5 takeaways from Marqeta’s Q3 results: What you need to know

  • Marqeta released its third quarter 2021 results, posting strong revenue growth.
  • The company continued to expand existing partnerships while launching new products.
close

Email a Friend

5 takeaways from Marqeta’s Q3 results: What you need to know

Marqeta, a modern card issuing platform, recently released its third quarter 2021 results. We summed up some of the main things you need to know about the recent developments at one of the biggest players in the payments industry. 

The fintech went public earlier this year and now has a market capitalization of just over $13 billion. Its client list has some of the biggest names in the fintech space, including Square, Klarna, Affirm, Sezzle, Zip and Afterpay. 

Overall, the company posted strong results for the quarter and year-to date, despite operating in a highly competitive environment. One of the main revenue drivers is its partnership with Square, where most of its business is concentrated. 

Here are Tearsheet’s five key points to take away from Marqeta’s November earnings release. 

  1. Financials

Marqeta posted strong net revenue growth, up 56% year-on-year to $131.5 million, surpassing consensus estimates of $119.2 million from analysts tracked by FactSet.

One of the key indicators of the company’s growth is total processing volume (TPV), which represents the total dollar amount of payments processed through its platform, net of returns and chargebacks. This went up by 60% to $27.6 million in the quarter, and by almost 90% to $78 million year-to-date. 

The company attributed this increase to its digital banking and BNPL customers, as its top five clients, measured by TPV, grew by 45% year-on-year in Q3. Processing volumes from its other customers rose by 226% for the three months ended September 30, 2021 compared to the same period in 2020.

However, the company still operates in the red, posting a net loss of $45.7 million versus $12.3 million in Q3 2020. On a year-to-date basis, the loss nearly quadrupled to $127.1 million in 2021 compared to $33.9 million in the same period a year earlier. 

The higher loss figures mostly reflect a sharp increase in the company’s expenses, namely compensation and benefits as Marqeta pushes for expansion. The average number of full-time employees rose to 656 in the quarter from 446 a year before. 

2. The Square dynamic

 


This content is available exclusively to Tearsheet Outlier members.

Tearsheet Outlier information and signup Missing out? Subscribe today and you’ll receive unlimited access to all Tearsheet content, original research, exclusive webinars and events, member-only newsletters from Tearsheet editors and reporters and much more. Join Outlier now — only $49/mo. Already an Outlier member? Sign in to your account

0 comments on “5 takeaways from Marqeta’s Q3 results: What you need to know”

Outlier OpinionsMakers

Member Exclusive, Payments

Payments Briefing: ‘We penetrated the blue ocean opportunity of the Spanish-speaking market’ – NovoPayment’s Anabel Perez

  • This week, we take a look at Miami-based BaaS provider, NovoPayment.
  • We also discuss Bumped, a firm that rewards customers with equity in the brands they shop from.
Ismail Umar | May 12, 2022
Member Exclusive

Lending Briefing: How fintechs are digitizing the mortgage process

  • Shifting consumer preferences are incentivizing mortgage banks to digitize other outdated, paper-based or manual parts of the business. But most of the innovation is happening outside the legacy system with fintechs taking the lead.
  • Given the current macroeconomic environment, uncertainty and dwindling margins in the mortgage sector, digital processes can help weather the storm by reducing costs.
Iulia Ciutina | May 11, 2022
Data Snacks, Member Exclusive

Data Snack: Real-time payments contribute a meager 0.9% to US transactions, FedNow expected to change that

  • The US real time payments industry is small, with just two networks, neither of which span across the country.
  • Federal Reserve’s country-wide real-time payments network initiative, FedNow, is expected to become one of the biggest payment clearance settlement systems in the world upon release.
Subboh Jaffery | May 11, 2022
Member Exclusive, New banks

Banking Briefing: Interest rates, big banks, and Revolut’s bumpy road to super-app-dom

  • The Central Bank raised its benchmark interest rate by half a percentage point. But with more fintech competition than ever, can major banks afford to respond the way they have in the past?
  • Meanwhile, Revolut’s super app strategy is hitting some bumps. What does that mean for the firm?
Rivka Abramson | May 09, 2022
Data Snacks, Member Exclusive

Data Snack: US fintech lenders down 30% on average in Q1 2022

  • Macroeconomic trends loom over the fintech sector and pressure public market stocks - most fintech lenders are down 30% or more in the first three months of 2022.
  • This could be a reaction against higher interest rates, which can grow the risk of defaults - driving investors to reevaluate fintech valuations, especially those with aggressive growth strategies.
Iulia Ciutina | May 06, 2022
More Articles