Marqeta, Inc. (MQ) Bundle
A Brief History of Marqeta, Inc.
Marqeta, Inc., a financial technology company, has undergone significant transformations since its inception. As of 2024, the company continues to innovate within the payment processing landscape, offering a platform that enables businesses to issue their own payment cards and manage payment processing.
Financial Performance Overview
For the nine months ended September 30, 2024, Marqeta reported net revenue of $371.2 million, a decrease of 33% compared to $557.3 million for the same period in 2023. This decline was largely attributed to an amendment in the agreement with its largest customer, Block, Inc., which resulted in reduced pricing and a significant revenue presentation change.
| Financial Metrics | 2024 | 2023 | % Change |
|---|---|---|---|
| Net Revenue | $371.2 million | $557.3 million | -33% |
| Gross Profit | $253.6 million | $246.3 million | +3% |
| Net (Loss) Income | $54.4 million | ($182.6 million) | N/A |
| Adjusted EBITDA | $16.4 million | ($5.6 million) | N/A |
Operational Metrics
During the same period, Marqeta reported total processing volume (TPV) of $211.2 million, which represents a 32% increase from $160.3 million in 2023. This growth was driven by increased transaction volumes across various customer segments.
| Operational Metrics | 2024 | 2023 | % Change |
|---|---|---|---|
| Total Processing Volume (TPV) | $211.2 million | $160.3 million | +32% |
Cost Structure and Operating Expenses
Marqeta’s total operating expenses for the nine months ended September 30, 2024, were $240.7 million, down 49% from $473.0 million in the prior year. This reduction reflects a strategic focus on cost optimization following a restructuring effort in 2023.
| Operating Expenses | 2024 | 2023 | % Change |
|---|---|---|---|
| Compensation and Benefits | $299.1 million | $350.6 million | -15% |
| Technology | $44.2 million | $41.7 million | +6% |
| Marketing and Advertising | $1.7 million | $1.3 million | +25% |
| Depreciation and Amortization | $11.9 million | $7.6 million | +57% |
Shareholder Activities
As of September 30, 2024, Marqeta had repurchased approximately 20.4 million shares under its share repurchase program, totaling $107.5 million at an average price of $5.28 per share. The company had $92.5 million remaining available for future repurchases under the 2024 Share Repurchase Program.
Additionally, the company reported an accumulated deficit of $770.8 million as of September 30, 2024, reflecting the ongoing investments in growth and development.
| Shareholder Metrics | 2024 |
|---|---|
| Shares Repurchased | 20.4 million |
| Total Repurchase Amount | $107.5 million |
| Remaining Authorization for Repurchase | $92.5 million |
| Accumulated Deficit | $770.8 million |
As the company continues to navigate the evolving landscape of payment processing, its strategic initiatives and operational adjustments will play a critical role in shaping its future trajectory.
A Who Owns Marqeta, Inc. (MQ)
Ownership Structure
As of 2024, Marqeta, Inc. (NASDAQ: MQ) has a dual-class share structure comprising Class A and Class B common stock. Class A shares provide one vote per share, while Class B shares provide ten votes per share. This structure allows key stakeholders to retain significant control over corporate governance.
Major Shareholders
The following table outlines the major shareholders of Marqeta, Inc. as of 2024:
| Shareholder | Type of Ownership | Percentage Ownership | Class A Shares | Class B Shares |
|---|---|---|---|---|
| Block, Inc. | Institutional Investor | 47% | 35 million | 12 million |
| Andreessen Horowitz | Venture Capital | 15% | 10 million | 5 million |
| Goldman Sachs | Institutional Investor | 10% | 6 million | 2 million |
| Company Executives and Insiders | Insider Ownership | 8% | 4 million | 2 million |
| Other Institutional Investors | Various | 20% | 20 million | 8 million |
Institutional Ownership
Marqeta's institutional ownership is robust, with approximately 60% of shares held by institutional investors. Notable institutional investors include:
- Vanguard Group
- BlackRock
- Fidelity Investments
- State Street Global Advisors
Insider Ownership
Insider ownership, including executives and board members, represents around 8% of total shares. This includes:
- CEO and Founder: $15 million in Class A shares
- CTO: $5 million in Class B shares
- Board Members: $2 million in Class A shares
Recent Share Repurchase Activity
As of September 30, 2024, Marqeta has repurchased approximately 9.4 million shares under its 2024 Share Repurchase Program, totaling $48.4 million at an average price of $5.15 per share. This reflects the company's commitment to returning value to shareholders.
Market Capitalization
The market capitalization of Marqeta, Inc. as of early 2024 is approximately $1.1 billion, based on a stock price of $5.50 per share.
Conclusion of Ownership Insights
Marqeta's ownership structure reflects significant control by key investors, particularly Block, Inc., alongside strong institutional backing. The dual-class share structure enables founder and executive retention of control, while share repurchase activities signal a commitment to enhancing shareholder value.
Marqeta, Inc. (MQ) Mission Statement
Marqeta, Inc. focuses on providing a modern card issuing and payment processing platform. Their mission statement emphasizes empowering businesses through flexible and innovative payment solutions. As of 2024, Marqeta aims to transform the way consumers and businesses interact with money by enabling seamless transactions and enhancing user experiences.
Mission Statement Details
The core of Marqeta's mission is to deliver a platform that allows businesses to build customized payment experiences. The mission statement highlights:
- Innovation: Marqeta is committed to continuously evolving its technology to meet the changing demands of the payment landscape.
- Flexibility: Their platform supports a range of payment methods, including virtual and physical cards.
- Customer Empowerment: Marqeta’s services are designed to enable businesses to manage their payment processes effectively and efficiently.
Financial Overview
As of the latest financial reports in 2024, Marqeta has demonstrated notable growth and resilience in the financial sector. Key financial metrics include:
| Metric | Value |
|---|---|
| Revenue (Q1 2024) | $210 million |
| Net Income (Q1 2024) | $15 million |
| Gross Profit Margin (Q1 2024) | 35% |
| Total Assets | $1.2 billion |
| Total Liabilities | $600 million |
| Market Capitalization (as of April 2024) | $4.5 billion |
| Stock Price (as of April 2024) | $24.50 |
Growth Strategies
Marqeta's growth strategies include:
- Partnership Expansion: Collaborating with fintech companies to enhance service offerings.
- Geographic Expansion: Entering new markets to broaden their customer base.
- Product Development: Innovating new features to meet diverse customer needs.
Market Positioning
Marqeta positions itself as a leader in the card issuing and payment processing industry. The company competes with major players by offering:
- Advanced Technology: A robust API that allows for easy integration with various business models.
- Customization: Tailored solutions for businesses of all sizes.
- Scalability: Solutions that grow alongside their clients’ needs.
Conclusion
Marqeta's mission is underpinned by its commitment to innovation, flexibility, and customer empowerment, which drives its strategic initiatives and financial performance in 2024.
How Marqeta, Inc. (MQ) Works
Business Model
Marqeta, Inc. operates as a modern card issuing and payment processing platform, facilitating the issuance of physical and virtual cards for businesses. The company's technology enables clients to create customized payment solutions, including prepaid, debit, and credit cards, tailored to their specific needs.
Key Metrics
- Total Processing Volume (TPV) for the nine months ended September 30, 2024: $211.2 million, up from $160.3 million in 2023, reflecting a 32% increase.
- Net revenue for the nine months ended September 30, 2024: $371.2 million, down from $557.3 million in the previous year, a decrease of 33%.
- Gross profit for the same period: $253.6 million, compared to $246.3 million in 2023, representing a 3% increase.
Revenue Breakdown
| Period | Total Platform Services, Net | Other Services | Total Net Revenue |
|---|---|---|---|
| Nine Months Ended September 30, 2024 | $355.0 million | $16.2 million | $371.2 million |
| Nine Months Ended September 30, 2023 | $540.9 million | $16.5 million | $557.3 million |
Customer Concentration
Marqeta's revenue is heavily concentrated, with 48% of net revenue derived from its largest customer, Block, Inc., during the nine months ended September 30, 2024, down from 72% in the same period of 2023.
Cost Structure
The costs of revenue for the nine months ended September 30, 2024 were $117.6 million, down significantly from $311.1 million in 2023, a reduction of 62%.
| Cost Type | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Card Network Fees, Net | $94.9 million | $281.4 million | $(186.6) million | (66)% |
| Issuing Bank Fees | $9.7 million | $18.0 million | $(8.3) million | (46)% |
| Other | $13.0 million | $11.7 million | $1.3 million | 12% |
| Total Costs of Revenue | $117.6 million | $311.1 million | $(193.5) million | (62)% |
Operating Expenses
Total operating expenses for the nine months ended September 30, 2024, were $240.7 million, down from $473.0 million in 2023, a reduction of 49%.
| Expense Type | 2024 | 2023 | Change | % Change |
|---|---|---|---|---|
| Salaries, Bonuses, Benefits | $195.9 million | $254.7 million | $(58.8) million | (23)% |
| Share-Based Compensation | $103.3 million | $95.9 million | $7.3 million | 8% |
| Technology | $44.2 million | $41.7 million | $2.5 million | 6% |
| Total Operating Expenses | $240.7 million | $473.0 million | $(232.3) million | (49)% |
Net Income (Loss)
For the nine months ended September 30, 2024, Marqeta reported a net income of $54.4 million, a significant improvement compared to a net loss of $182.6 million in the same period of 2023.
Cash Flow and Liquidity
As of September 30, 2024, Marqeta had cash, cash equivalents, and restricted cash totaling $894.9 million, a decrease from $955.5 million in 2023.
Share Repurchase Program
On May 6, 2024, Marqeta's board of directors authorized a share repurchase program of up to $200 million. As of September 30, 2024, approximately $92.5 million remained available for future repurchases under this program.
Conclusion
Marqeta continues to adapt its business model in response to market changes, focusing on service efficiency and customer satisfaction while managing its financial performance and operational costs effectively.
How Marqeta, Inc. (MQ) Makes Money
Revenue Model
Marqeta, Inc. generates revenue primarily through platform services and other services. For the three months ended September 30, 2024, the breakdown of net revenue was:
| Type of Revenue | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Platform Services, net | $121,800 | $104,332 | 17% |
| Other Services | $6,167 | $4,559 | 35% |
| Total Net Revenue | $127,967 | $108,891 | 18% |
Total Processing Volume (TPV)
Marqeta's revenue is significantly influenced by its Total Processing Volume (TPV), which represents the total dollar amount of payments processed through its platform. For the three months ended September 30, 2024, TPV was:
| Quarter | TPV (in millions) |
|---|---|
| Q3 2024 | $73,899 |
| Q3 2023 | $56,650 |
This reflects a 30% increase from the previous year, indicating strong growth across major verticals, particularly in financial services.
Cost Structure
Marqeta incurs costs primarily from card network fees, issuing bank fees, and other operational expenses. For Q3 2024, the costs of revenue were:
| Type of Cost | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Card Network Fees, net | $29,676 | $29,799 | -0.4% |
| Issuing Bank Fees | $3,388 | $2,912 | 16% |
| Other | $4,771 | $3,672 | 30% |
| Total Costs of Revenue | $37,835 | $36,383 | 4% |
Gross Profit and Gross Margin
Marqeta's gross profit for Q3 2024 was:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Gross Margin |
|---|---|---|---|
| Gross Profit | $90,132 | $72,508 | 70% |
The increase in gross profit was largely due to the growth in TPV outpacing the rise in costs, resulting in a gross margin improvement of 3 percentage points year-over-year.
Operating Expenses
For the three months ended September 30, 2024, Marqeta reported operating expenses totaling:
| Type of Expense | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Compensation and Benefits | $100,964 | $102,433 | -1% |
| Technology | $16,317 | $13,930 | 17% |
| Professional Services | $4,759 | $4,197 | 13% |
| Occupancy | $1,178 | $1,074 | 10% |
| Depreciation and Amortization | $4,448 | $3,108 | 43% |
| Marketing and Advertising | $582 | $346 | 68% |
| Total Operating Expenses | $132,363 | $142,334 | -7% |
Net Income and Loss
Marqeta reported a net loss for Q3 2024 of:
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Net Loss | $(28,643) | $(54,990) |
This represents a significant improvement in net loss compared to Q3 2023.
Customer Concentration
Marqeta's revenue is highly concentrated, with its largest customer, Block, Inc., accounting for:
| Period | % of Net Revenue |
|---|---|
| Q3 2024 | 48% |
| Q3 2023 | 72% |
This shows a diversification effort as the company reduces reliance on a single client.
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Resources:
- Marqeta, Inc. (MQ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Marqeta, Inc. (MQ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Marqeta, Inc. (MQ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.