Marqeta celebrates listing on Nasdaq on June 9, 2021.
Source: Nasdaq
Mark Tower The company’s shares plunged more than 30% in after-hours trading on Monday release Fourth-quarter guidance was weaker than expected.
Here’s how the company performed compared to Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Loss per share: Adjusted to 6 cents, vs. 5 cents expected
- income: $128 million vs. $128.1 million expected
While third-quarter results showed slightly disappointing revenue and profits, Marqeta’s forecast for the current period is more concerning.
The payment processing company said fourth-quarter revenue will grow 10% to 12% compared with the same period last year. Analysts expect growth to exceed 17%, according to LSEG.
Marqeta, which operates primarily as a card issuance platform, attributed the guidance lapse to “a rigorous review of changes in the banking environment and specific customer programs.” The company has been in trouble for some time, with its shares currently down more than 80% from their 2021 peak. Listed. The stock fell 15% in the year before the report.
Total processing volume reached US$74 billion, with annual growth exceeding 30%. Net income and gross profit increased by 18% and 24% respectively.
Marqeta’s digital commerce business sells payments technology designed to detect potential fraud and ensure funds are transferred correctly. It also issues customized physical cards that look like credit or debit cards and can be used for point-of-sale purchases.
The company has been trying to break into the “buy now, pay later” business with a recently launched product called Marqeta Flex. The service brings BNPL from lending institutions such as confirm or Klarna to any credit card that accepts Mastercard and Visa.
“It’s an orchestration layer, but it’s about issuance, processing, disputes and chargebacks,” CEO Simon Khalaf told CNBC at the Money2020 conference in Las Vegas last week. “So it’s not actually BNPL. The Wild West. It’s actually very mature and there’s a reason a lot of people are into it.”
