In This Article:
-
Total Processing Volume (TPV): $84 billion, a 27% increase year over year.
-
Net Revenue: $139 million, an 18% increase year over year.
-
Gross Profit: $99 million, a 17% increase year over year, with a gross margin of 71%.
-
Adjusted EBITDA: $20 million, representing a 14% margin.
-
Net Loss: $8 million, including $10 million of interest income.
-
Cash and Short-term Investments: Approximately $1 billion at the end of the quarter.
-
Share Repurchase: 26.2 million shares repurchased at an average price of $4.22, with $270 million remaining on buyback authorization.
-
Block Net Revenue Concentration: 45%, down 1 point from Q4 2024 and 4 points from Q1 2024.
-
Net Revenue Take Rate: 16 basis points, 1 bp lower than last quarter.
-
Adjusted Operating Expenses: $79 million, a 5% increase year over year.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Marqeta Inc (NASDAQ:MQ) reported a 27% increase in Total Processing Volume (TPV) to $84 billion in Q1 2025, showcasing strong growth.
-
Net revenue grew by 18% year over year to $139 million, driven by diverse use cases and customer demand.
-
The company achieved a gross profit of $99 million, a 17% increase from Q1 2024, with a gross margin of 71%.
-
Adjusted EBITDA reached $20 million, translating to a 14% margin, indicating improved profitability.
-
Marqeta Inc (NASDAQ:MQ) successfully executed migrations for significant programs like Perpay and Bitpanda, demonstrating its capability to handle complex transitions efficiently.
Negative Points
-
The renegotiated platform partner agreement impacted net revenue growth, reducing it by 3 points in Q1.
-
A planned migration with Varo was terminated, affecting future growth expectations.
-
Despite strong TPV growth, the company faces macroeconomic uncertainties that could impact future performance.
-
Block's net revenue concentration remains high at 45%, indicating a reliance on a single large customer.
-
The company anticipates lower net revenue growth in Q2 2025 due to the renegotiated agreement, with expectations between 11% and 13%.
Q & A Highlights
Q: Can you discuss Marqeta's role in agentic commerce and how it aligns with your capabilities? A: Michael Milotich, CEO and CFO, explained that Marqeta is well-positioned to enable innovations like agentic commerce due to its dynamic capabilities and real-time decision-making platform. The company focuses on product innovation, internal productivity, and operational efficiencies, leveraging AI to enhance customer value and support.