MQ Earnings Prediction
The chart below shows how MQ performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MQ sees a -3.95% change in stock price 10 days leading up to the earnings, and a -6.09% change 10 days following the report. On the earnings day itself, the stock moves by +1.04%. This data can give you a slight idea of what to expect for the next quarter's release.
MQ Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
135.79M
14.28%
6.11%
Gross Margin
68.26%
1.29%
1.94%
Operating Margin
-19.46%
-48.94%
-20.99%
Net Margin
-19.97%
-41.23%
-10.77%
EPS
-0.05
-37.50%
-16.67%
No Data Available
MQ Earnings Analysis
Marqeta Inc Corporation (MQ.O) Earnings Conference Call
Positive
Total Process Volume Growth: Total Process Volume (TPV) reached $80 billion in Q4, a 29% increase year-over-year, demonstrating strong growth at scale.
Q4 Revenue Growth: Net revenue for Q4 was $136 million, reflecting a 14% year-over-year growth, indicating solid financial performance.
Gross Profit Increase: Gross profit for Q4 was $98 million, an 18% increase compared to the same quarter last year, resulting in a gross margin of 72%.
Record Adjusted EBITDA Margin: Adjusted EBITDA for Q4 was $13 million, translating to a 9% margin, marking a new all-time high for the company.
Co-Brand Credit Partnership: The company secured a consumer co-brand credit partnership with a well-established airline, showcasing its innovative payment solutions and ability to drive customer engagement.
European TPV Growth: Marqeta's European business saw TPV growth of over 100% in Q4, highlighting its expanding footprint in the region.
Global Engagement Milestone: The company signed its first multinational solution sale, indicating a growing trend of global engagement with its platform.
New Payment Network Integration: Marqeta is set to welcome the American Express network as a new option for credit and debit card programs, enhancing its platform offerings.
Acquisition Impact on Operations: The acquisition of TransactPay is expected to enhance program management capabilities in Europe, streamlining operations and expanding customer reach.
Real-Time Decisioning Revenue Surge: The real-time decisioning risk product saw revenue more than double from 2023 to 2024, indicating strong demand for innovative solutions.
Sustainable Profitable Growth: The company is focused on driving profitable growth with a trajectory that is sustainable and diversified, aiming for adjusted EBITDA margins of 9% to 10% in 2025.
Negative
Leadership Transition Concerns: Leadership transition with Simon Khalaf stepping down as CEO raises concerns about stability and direction.
TPV Growth Slowdown: Q4 TPV growth of 29% is slower than the previous quarter, indicating a potential slowdown in momentum.
Declining Revenue Growth: Net revenue growth of 14% in Q4 is a decline from previous quarters, suggesting challenges in maintaining growth rates.
Program Launch Delays: The company faced delays in launching programs, with three still pending, which could impact future revenue streams.
Net Revenue Growth Outlook: The expected net revenue growth for 2025 is only between 16% and 18%, indicating a slowdown compared to previous expectations.
Revenue Impact from Customer Shift: The anticipated lower net revenue take rate due to a shift towards Powered by Marqeta customers could negatively impact overall revenue.
Contract Renewal Challenges: The company is facing challenges with contract renewals, which may lead to lower pricing and impact revenue growth.
Net Loss Concerns: The GAAP net loss of $27 million in Q4 raises concerns about profitability despite positive adjusted EBITDA.
Regulatory Approval Delays: The acquisition of TransactPay is subject to regulatory approvals, which could delay integration and impact growth plans.
MQ FAQs
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MQ Earning Call Sentiment
Marqeta, Inc. (MQ) Q4 2024 Earnings Call Transcript
MQ.O
3.16%Positive
The earnings call summary presents mixed signals. Financial performance shows growth, but guidance is weak, particularly with 2024 revenue contraction. The Q&A reveals potential risks in customer relationships and economic dependencies. However, the new share buyback plan is a positive catalyst. Given the market cap of $2.76 billion, the stock is likely to experience limited movement, resulting in a neutral prediction.
