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

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