Shares of Marqeta Inc. surged by 6% in Tuesday's extended session following the company's impressive performance on a profit metric and its upbeat revenue for the latest quarter.

Strong Financial Results

For the third quarter, Marqeta reported a net loss of $55.0 million, or 10 cents per share. This is a slight increase compared to a net loss of $53.2 million, or 10 cents per share, in the same period last year. However, the FactSet consensus was also a 10-cent loss per share.

The company's adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) showed improvement as well. Marqeta recorded a loss of $2.1 million in adjusted EBITDA, down from a $13.6 million loss in the previous year. Market analysts were projecting a loss of $12.6 million.

Revenue Performance

Despite the decline in net revenue, Marqeta still outperformed expectations. The company's net revenue dropped to $108.9 million from $191.6 million, while analysts predicted revenue of $95.7 million.

Impressive Growth in Transaction Volume

Marqeta showcased its growth potential by processing $56.7 billion in volume for the quarter, a significant increase from $42.5 billion in the same period last year.

CEO's Optimistic Outlook

Marqeta's CEO, Simon Khalaf, expressed optimism about the company's future. He stated, "We've shown continued sales bookings momentum against a backdrop of operational discipline, continued scale, and new innovations through the launch of our credit platform." Khalaf believes that Marqeta is well-positioned to return to strong growth by Q3 2024 and expects further acceleration as the market for embedded finance continues to develop.

Market Performance

Despite the positive financial results, Marqeta shares have experienced a 12% decline year-to-date. This is in contrast to the 14% advancement of the S&P 500 index.

Overall, Marqeta Inc. has proven its ability to surpass expectations and generate favorable revenue. With its focus on innovation and the growth of embedded finance, the company shows positive prospects in the coming years.

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