Marqeta Q3 revenue slightly beats estimates on volume growth
MQ•Marqeta’s third-quarter revenue rose 8% year over year to $176 million, slightly above estimates, while adjusted EBITDA increased 28% to $39 million. The company expects fourth-quarter net revenue growth of 3% to 5%.
1. Revenue and profit rise
Marqeta reported third-quarter revenue of $176 million, up 8% year over year and slightly above the $175.56 million consensus estimate. Adjusted EBITDA rose 28% to $39 million, beating the $36.94 million estimate. Net income was $115 million, gross profit was $122.1 million and gross margin was 69%.
2. Volume drives results
The company said higher payment volumes drove revenue growth, partly offset by a shift toward lower-margin processing services. Higher total processing volume mainly contributed to gross profit growth, while lower operating expenses year over year helped improve profitability.
3. Fourth-quarter outlook
Marqeta expects fourth-quarter net revenue growth of 3% to 5% year over year and gross profit growth of 5% to 7%. It forecasts adjusted EBITDA growth in the mid-20% range.
