Marqeta Inc. topped revenue expectations Wednesday and delivered an upbeat top-line forecast in the financial technology company’s first earnings report since going public.
The company, which powers debit-card issuance for hot technology players like Square Inc.
and DoorDash Inc.
reported a second-quarter net loss of $68.6 million, or 29 cents a share, compared with a loss of $7.1 million, or 6 cents a share, a year earlier. Analysts tracked by FactSet were expecting a 7-cents GAAP loss per share.
The fintech company noted in its earnings release that “a significant increase in gross profit was offset by increases in employee-related costs.”
net revenue rose to $122.3 million from $69.4 million, while analysts had been modeling $105.3 million. The company’s total payment volume was $26.5 billion, up from $15.1 billion a year prior.
The company continued to benefit from growing adoption of buy-now pay-later (BNPL) services, as companies like Affirm Holdings Inc.
and Afterpay Ltd.
are Marqeta partners. Net revenue from the BNPL vertical increased 350% from a year earlier.
“Our earnings demonstrate an enormous appetite for modern card issuing, demand across diverse industries and rapid growth with our customers,” Chief Executive Jason Gardner said in Marqeta’s earnings release.
For the third quarter, Marqeta expects revenue of $114 million to $119 million, while analysts had been expecting $109.6 million.
Marqeta went public in June and the company is now valued at $16 billion. It offers technology for companies looking to issue debit cards for various business purposes and it’s known for helping its customers build customized products.
Marqeta’s technology helps delivery platforms ensure that drivers are able to pick up and pay for customer orders without adding on extra purchases for themselves. The technology also applies to the BNPL companies, which often use “virtual cards” behind the scenes to let shoppers split purchases into installments.