Shares of Marqeta, Inc. (MQ) were down almost 9% in Wednesday’s extended trading session after the company delivered mixed debut second-quarter earnings results since its IPO in June this year.
Marqeta is a global modern card issuing platform that provides payment services to customers by creating customized and innovative payment cards. Currently, the company has a market capitalization of about $16.2 billion. (See Marqeta stock charts on TipRanks)
Revenues jumped 76% year-over-year to $122 million and exceeded consensus estimates of $107.99 million. The increase in revenues reflected a surge in total processing volume (TPV) from existing large customers, which increased 76% to $26.5 billion.
However, an adjusted loss of $0.29 per share was much worse than analysts’ expectations of a loss of $0.10 per share. The company reported a loss of $0.06 per share in the prior-year period.
Furthermore, gross margins declined 200 bps to 38% during the quarter, attributable to higher card networks fees.
Marqeta CEO Jason Gardner commented, “Our earnings demonstrate an enormous appetite for modern card issuing, demand across diverse industries and rapid growth with our customers.”
For Q3, revenues are forecast to be in the range of $114 – $119 million, versus the consensus estimate of $99.6 million. However, the company expects an adjusted EBITDA loss of between $13 and $16 million.
Following the Q2 results, Mizuho Securities analyst Dan Dolev reiterated a Hold rating on the stock with a price target of $29 (3.6% downside potential).
Dolev forecasts the company to report a loss of $0.06 per share for the third quarter of 2021.
Overall, the stock has a Moderate Buy consensus rating based on 6 Buys and 3 Holds. The average Marqeta price target of $32.50 implies 8.1% upside potential from current levels.
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