Marqeta stock plunges 30% on weak guidance, slowing growth

Investing.comNov 4, 2024 9:56 PM

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Marqeta Inc (NASDAQ:MQ), a modern card issuing platform, saw its shares plummet 30% after reporting third-quarter earnings that missed analyst expectations and provided disappointing guidance for the fourth quarter.

The company reported a third-quarter adjusted loss of -$0.06 per share, $0.01 worse than the analyst estimate of -$0.05. Revenue for the quarter came in at $128 million, slightly below the consensus estimate of $128.09 million, representing an 18% increase YoY.

Marqeta's Total Processing Volume (TPV) grew 30% YoY to $74 billion, while Gross Profit increased 24% to $90 million. However, the company's guidance for the fourth quarter fell short of expectations, projecting Net Revenue growth of 10-12% and Gross Profit growth of 13-15%.

CEO Simon Khalaf commented, "In the third quarter our true growth trajectory was back on display as we lapped the Block contract renewal, while continuing to demonstrate operational discipline to fuel strong Adjusted EBITDA."

The company cited "heightened scrutiny of the banking environment and specific customer program changes" as factors impacting its fourth-quarter outlook. Marqeta expects Adjusted EBITDA margin to be between 5-7% for the fourth quarter.

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