Marqeta (MQ) Q3 2024 earnings summary

Executive summary

• Q3 2024 Total Processing Volume (TPV) grew 30% year-over-year to $74 billion, reflecting strong platform adoption and growth across major verticals, especially financial services.

• Net revenue increased 18% year-over-year to $128 million, driven by TPV growth and new product launches such as Portfolio Migration, Marqeta Flex, and UX Toolkit.

• Gross profit rose 24% to $90 million, with gross margin improving to 70%–71% from 63%–67% in Q3 2023.

• Net loss narrowed to $28.6 million–$29 million from $55 million in Q3 2023, reflecting higher revenue and improved cost structure.

• Adjusted EBITDA was $9 million, up from a loss of $2.1 million in Q3 2023, with a 7% margin.

Financial highlights

• Q3 2024 TPV: $74 billion (+30% year-over-year); net revenue: $128 million (+18%); gross profit: $90 million (+24%).

• Gross margin improved to 70%–71% from 63%–67% in Q3 2023.

• Adjusted EBITDA: $9 million (7% margin), up from $(2.1) million in Q3 2023.

• Net loss: $28.6 million–$29 million, improved from $55 million loss in Q3 2023.

• Cash, cash equivalents, and short-term investments totaled $1.1 billion at quarter end.

Outlook and guidance

• Q4 2024 guidance: Net revenue growth of 10%–12%, gross profit growth of 13%–15%, and Adjusted EBITDA margin of 5%–7%, revised downward due to program launch delays and customer insourcing.

• Full year 2024 net revenue growth projected at approximately -26%; gross profit growth at 6%.

• 2025 Adjusted EBITDA target of ~$50 million remains unchanged; gross profit growth may mirror Q4 2024 as backlog clears.

• Management expects continued net losses as investments in new products and platform development persist.

• Cash and investments are considered sufficient to fund operations for at least the next twelve months.