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Marqeta Reports Fourth Quarter and Full Year 2022 Financial Results

The global modern card issuing platform had $47 billion in fourth quarter total processing volume, up 41 percent year-over-year, and generated $204 million in fourth quarter net revenue, up 31 percent year-over-year

The company's annual total processing volume was up 50 percent year-over-year to $166 billion, generating $748 million in annual revenue, up 45 percent from 2021

Marqeta, Inc. (NASDAQ: MQ), the global modern card issuing platform, today reported financial results for the fourth quarter and full year ended December 31, 2022.

Total processing volume (TPV) was $47 billion for the quarter and net revenue was $204 million. This represented a 41% increase in TPV and a 31% increase in net revenue, compared with the same quarter of 2021. The company saw gross profit of $87 million during the quarter, up 15% year-over-year. GAAP net loss was $26 million and an Adjusted EBITDA loss of $7 million for the quarter ended December 31, 2022.

For the full 2022 fiscal year, TPV was $166 billion and net revenue was $748 million. This represented annual increases of 50% and 45%, respectively, from 2021 results. The company saw gross profit of $320 million during 2022, up 38% from the year prior. The company reported GAAP net loss of $185 million and an Adjusted EBITDA loss of $42 million for the year ended December 31, 2022.

"I am very proud of the scale our business reached in 2022," said Simon Khalaf, CEO of Marqeta. "Now we are entering 2023 uniquely positioned to capture the massive opportunity in embedded finance. Our cloud native and API-first platform offers a fully bundled offering - debit, credit, risk, money movement and program management tools, making it seamless for our customers to embed financial services into their own products.”

Recent Business Updates:

  • Marqeta announced Simon Khalaf as its new CEO, with founding CEO Jason Gardner shifting to the role of Executive Chairman. Khalaf is a veteran technology executive who originally joined the company in June 2022 as Chief Product Officer.
  • Marqeta announced and completed the acquisition of Power Finance Inc., a modern credit card program management platform, which will strengthen Marqeta’s credit capabilities and enhances its leadership in modern card issuing across all card types.
  • Marqeta announced its new Web Push Provisioning Product, expanding its industry-leading tokenization offerings with new capabilities that allow cardholders to instantly tokenize a card into a mobile wallet without downloading a third-party application.
  • Marqeta, alongside Mastercard, was chosen by Rakuten to support the launch of its Club R Pay product, an integrated digital card solution for Rakuten's 12 million loyalty members that allows them to shop on over 2,000 sites while enjoying their Rakuten rewards.

Operating Highlights

In thousands, except percentages and per share data. % change is calculated over the comparable prior-year period (unaudited)

 

Three Months Ended

December 31,

 

%

Change

 

Twelve Months Ended

December 31,

 

%

Change

 

2022

 

2021

 

 

2022

 

2021

 

Financial metrics:

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

203,805

 

 

$

155,414

 

 

31

%

 

$

748,206

 

 

$

517,175

 

 

45

%

Gross profit

 

$

87,124

 

 

$

75,799

 

 

15

%

 

$

320,001

 

 

$

231,705

 

 

38

%

Gross margin

 

 

43

%

 

 

49

%

 

(6) ppts

 

 

43

%

 

 

45

%

 

(2) ppts

Total operating expenses

 

$

141,447

 

 

$

113,529

 

 

25

%

 

$

529,809

 

 

$

393,711

 

 

35

%

Net loss

 

$

(26,326

)

 

$

(36,807

)

 

(28

)%

 

$

(184,780

)

 

$

(163,929

)

 

13

%

Net loss margin

 

 

(13

%)

 

 

(24

%)

 

11 ppts

 

 

(25

%)

 

 

(32

%)

 

7 ppts

Net loss per share - basic and diluted

 

$

(0.05

)

 

$

(0.07

)

 

(29

%)

 

$

(0.34

)

 

$

(0.45

)

 

(24

%)

Key operating metric and Non-GAAP financial measures:

 

 

 

 

 

 

 

 

 

 

 

 

Total Processing Volume (TPV) (in millions) 1

 

$

46,704

 

 

$

33,046

 

 

41

%

 

$

166,260

 

 

$

111,133

 

 

50

%

Adjusted EBITDA 2

 

$

(7,488

)

 

$

1,162

 

 

(744

%)

 

$

(41,796

)

 

$

(12,767

)

 

227

%

Adjusted EBITDA margin 2

 

 

(4

%)

 

 

1

%

 

(5) ppts

 

 

(6

%)

 

 

(2

%)

 

4 ppts

Non-GAAP operating expenses 2

 

$

94,612

 

 

$

74,637

 

 

27

%

 

$

361,797

 

 

$

244,472

 

 

48

%

1 TPV represents the total dollar amount of payments processed through our platform, net of returns and chargebacks. We believe that TPV is a key indicator of the market adoption of our platform, growth of our brand, growth of our customers' businesses and scale of our business.

2 See "Information Regarding Non-GAAP Measures" for definitions of Adjusted EBITDA, Adjusted EBITDA margin, and Non-GAAP operating expenses and the reconciliations of the net loss to Adjusted EBITDA, and of the total operating expenses to Non-GAAP operating expenses.

Fourth Quarter 2022 Financial Results:

  • TPV increased by 41% year-over-year, from $33 billion for the quarter ended December 31, 2021, to $47 billion for the quarter ended December 31, 2022.
  • Net revenue of $204 million increased by $48 million, or 31% year-over-year, primarily driven by higher total processing volume, partially offset by changes in our card program mix, particularly the growth of the Powered by Marqeta offering.
  • Gross profit increased by 15% year-over-year to $87 million from $76 million in the fourth quarter of 2021. Gross margin was 43% in the fourth quarter.
  • Net loss decreased by $10 million, or 28%, year-over-year to $26 million. The loss results from our increase in compensation, benefits and technology expenses as we continued our investment in our people and platform, offset by our increase in gross profit.
  • Adjusted EBITDA in the fourth quarter of 2022 was a loss of $7 million, a decline of $9 million year-over-year.

Full Year 2022 Financial Results:

  • TPV increased by 50% year-over-year, from $111 billion in 2021, to $166 billion in 2022.
  • Net revenue increased by $231 million, or 45% year-over-year, primarily driven by higher total processing volume, partially offset by changes in our card program mix, particularly the growth of the Powered by Marqeta offering.
  • Gross profit increased by $88 million, or 38% year-over-year. Gross margin was 43% for the year ended December 31, 2022.
  • Net loss increased by $21 million, or 13%, year-over-year to $185 million, primarily resulting from headcount growth.
  • Adjusted EBITDA for the year ended December 31, 2022 was a loss of $42 million, a decline of $29 million year-over-year.

Financial Guidance:

The following summarizes Marqeta's guidance for the first quarter of 2023:

 

 

First Quarter 2023

Net Revenue Growth

 

26-28%

 

 

 

Gross Profit Growth

 

14-16%

 

 

 

Adjusted EBITDA Margin (1)

 

Negative 5-6%

(1) See "Information Regarding Non-GAAP Measures" for the definition of Adjusted EBITDA.

A reconciliation of Adjusted EBITDA to the comparable GAAP measure for the first quarter of 2023 is not available due to the challenges and impracticability with estimating some of the items, such as share-based compensation expense, depreciation and amortization expense, and payroll tax expense, as such items cannot be reasonably predicted and could be significant. Because of those challenges, reconciliations of such forward-looking non-GAAP financial measures are not available without unreasonable effort.

Conference Call

Marqeta will host a live conference call today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time). To join the call, please dial-in 10 minutes in advance: toll-free at 1-877-407-4018 or direct at 1-201-689-8471. The conference call will also be available live via webcast online at http://investors.marqeta.com.

The telephone replay dial-in numbers are 1-844-512-2921 and 1-412-317-6671 and will be available until March 14, 2023, 5:00 p.m. Pacific time (8:00 p.m. Eastern time). The confirmation code for the replay is 13735873.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements relating to Marqeta’s quarterly guidance; statements regarding Marqeta’s business plans, business strategy and the continued success and growth of our customers; statements and expectations regarding Marqeta's partnerships, new product introductions, and product capabilities; and statements made by Marqeta’s CEO. Actual results may differ materially from the expectations contained in these statements due to risks and uncertainties, including, but not limited to, the following: the effect of uncertainties related to global economies, our business, results of operations, financial condition, demand for our platform, sales cycles and customer retention; the risk that Marqeta is unable to further attract, retain, diversify, and expand its customer base; the risk that Marqeta is unable to drive increased profitable transactions on its platform; the risk that consumers and customers will not perceive the benefits of Marqeta’s products as Marqeta expects; the risk that Marqeta's technology platform, including hosted solutions, do not operate as intended resulting in system outages; the risk that Marqeta will not be able to achieve the cost structure that Marqeta currently expects; the risk that Marqeta’s solution will not achieve the expected market acceptance; the risk that competition could reduce expected demand for Marqeta’s services; the risk that changes in the regulatory landscape adversely affects the gross interchange or other revenue Marqeta earns or adversely affects the bank and network costs Marqeta incurs; the risk that Marqeta may be unable to maintain relationships with Issuing Banks and Card Networks; the risk that Marqeta is not able to identify and recognize the anticipated benefits of any acquisition; the risk that Marqeta is unable to successfully integrate any acquisition to businesses and related operations; general economic conditions in either domestic or international markets, including inflation and recessionary fears, conditions resulting from geopolitical uncertainty and instability or war, including, the direct and indirect effects of the significant military action against Ukraine launched by Russia on U.S. and global economies, our business, results of operations, financial condition, and demand for our platform; and the risk that Marqeta may be subject to additional risks such as inflation or currency fluctuations due to its international business activities. Detailed information about these risks and other factors that could potentially affect Marqeta’s business, financial condition and results of operations are included in the “Risk Factors” disclosed in Marqeta's Annual Report on Form 10-K for the year ended December 31, 2022, as such risk factors may be updated from time to time in Marqeta’s periodic filings with the SEC, available at www.sec.gov and Marqeta’s website at http://investors.marqeta.com.

The forward-looking statements in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update any forward-looking statements, except as required by law.

Disclosure Information

Investors and others should note that Marqeta announces material financial information to its investors using its investor relations website, SEC filings, press releases, public conference calls and webcasts. Marqeta also uses social media to communicate with its customers and the public about Marqeta, its products and services and other matters relating to its business and market. It is possible that the information Marqeta posts on social media could be deemed to be material information. Therefore, Marqeta encourages investors, the media, and others interested in Marqeta to review the information we post on social media channels including the Marqeta Twitter feed (@Marqeta), the Marqeta Instagram page (@lifeatmarqeta), the Marqeta Facebook page, and the Marqeta LinkedIn page. These social media channels may be updated from time to time.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures".

About Marqeta, Inc.

Marqeta’s modern card issuing platform empowers its customers to create customized and innovative payment cards. Marqeta’s modern architecture gives its customers the ability to build more configurable and flexible payment experiences, accelerating time-to-market and democratizing access to card issuing technology. Marqeta’s open APIs provide instant access to highly scalable, cloud-based payment infrastructure that enables customers to launch and manage their own card programs, issue cards and authorize and settle payment transactions. Marqeta is headquartered in Oakland, California and is certified to operate in 40 countries globally.

Marqeta® is a registered trademark of Marqeta, Inc.

Marqeta, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

   

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2022

 

2021

 

2022

 

2021

Net revenue

 

$

203,805

 

 

$

155,414

 

 

$

748,206

 

 

$

517,175

 

Costs of revenue

 

 

116,681

 

 

 

79,615

 

 

 

428,205

 

 

 

285,470

 

Gross profit

 

 

87,124

 

 

 

75,799

 

 

 

320,001

 

 

 

231,705

 

Operating expenses:

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

110,991

 

 

 

88,995

 

 

 

415,094

 

 

 

318,116

 

Professional services

 

 

6,295

 

 

 

5,712

 

 

 

23,479

 

 

 

18,443

 

Technology

 

 

14,401

 

 

 

11,143

 

 

 

52,361

 

 

 

33,637

 

Occupancy

 

 

1,126

 

 

 

1,097

 

 

 

4,514

 

 

 

4,181

 

Depreciation and amortization

 

 

1,019

 

 

 

967

 

 

 

3,853

 

 

 

3,534

 

Marketing and advertising

 

 

1,862

 

 

 

804

 

 

 

3,995

 

 

 

2,284

 

Other operating expenses

 

 

5,753

 

 

 

4,811

 

 

 

26,513

 

 

 

13,516

 

Total operating expenses

 

 

141,447

 

 

 

113,529

 

 

 

529,809

 

 

 

393,711

 

Loss from operations

 

 

(54,323

)

 

 

(37,730

)

 

 

(209,808

)

 

 

(162,006

)

Other income (expense), net

 

 

28,468

 

 

 

142

 

 

 

24,926

 

 

 

(2,563

)

Loss before income tax expense

 

 

(25,855

)

 

 

(37,588

)

 

 

(184,882

)

 

 

(164,569

)

Income tax expense (benefit)

 

 

471

 

 

 

(781

)

 

 

(102

)

 

 

(640

)

Net loss

 

$

(26,326

)

 

$

(36,807

)

 

$

(184,780

)

 

$

(163,929

)

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.05

)

 

$

(0.07

)

 

$

(0.34

)

 

$

(0.45

)

Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted

 

 

544,752,220

 

 

 

540,170,079

 

 

 

545,397,254

 

 

 

362,756,466

 

Marqeta, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

   

 

 

December 31,

2022

 

December 31,

2021

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,183,846

 

 

$

1,247,581

 

Restricted cash

 

 

7,800

 

 

 

7,800

 

Marketable securities

 

 

440,858

 

 

 

452,875

 

Accounts receivable, net

 

 

15,569

 

 

 

13,187

 

Settlements receivable, net

 

 

18,028

 

 

 

11,266

 

Network incentives receivable

 

 

42,661

 

 

 

30,399

 

Prepaid expenses and other current assets

 

 

38,007

 

 

 

35,617

 

Total current assets

 

 

1,746,769

 

 

 

1,798,725

 

Property and equipment, net

 

 

7,440

 

 

 

9,687

 

Operating lease right-of-use assets, net

 

 

9,015

 

 

 

11,296

 

Equity method investment

 

 

0

 

 

 

8,384

 

Other assets

 

 

7,122

 

 

 

2,286

 

Total assets

 

$

1,770,346

 

 

$

1,830,378

 

Liabilities and stockholders' equity

 

 

 

 

Current liabilities

 

 

 

 

Accounts payable

 

$

3,798

 

 

$

2,693

 

Revenue share payable

 

 

142,194

 

 

 

121,179

 

Accrued expenses and other current liabilities

 

 

136,887

 

 

 

114,096

 

Total current liabilities

 

 

282,879

 

 

 

237,968

 

Operating lease liabilities, net of current portion

 

 

9,034

 

 

 

12,427

 

Other liabilities

 

 

5,477

 

 

 

6,557

 

Total liabilities

 

 

297,390

 

 

 

256,952

 

Stockholders' equity:

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

53

 

 

 

54

 

Additional paid-in capital

 

 

2,082,373

 

 

 

1,993,055

 

Accumulated other comprehensive loss

 

 

(7,237

)

 

 

(2,230

)

Accumulated deficit

 

 

(602,233

)

 

 

(417,453

)

Total stockholders’ equity

 

 

1,472,956

 

 

 

1,573,426

 

Total liabilities and stockholders' equity

 

$

1,770,346

 

 

$

1,830,378

 

Marqeta, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

   

 

 

Year Ended December 31,

 

 

2022

 

2021

Cash flows from operating activities:

 

 

 

 

Net loss

 

$

(184,780

)

 

$

(163,929

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

 

3,853

 

 

 

3,534

 

Share-based compensation expense

 

 

160,743

 

 

 

142,660

 

Non-cash operating leases expense

 

 

2,281

 

 

 

2,115

 

Amortization of premium on marketable securities

 

 

277

 

 

 

1,162

 

Gain on sale of equity method investment

 

 

(17,889

)

 

 

 

Impairment of other financial instruments

 

 

11,616

 

 

 

 

Other

 

 

649

 

 

 

3,110

 

Changes in operating assets and liabilities:

 

 

 

 

Accounts receivable

 

 

(2,577

)

 

 

(4,940

)

Settlements receivable

 

 

(6,762

)

 

 

1,601

 

Network incentives receivable

 

 

(12,262

)

 

 

(10,377

)

Prepaid expenses and other assets

 

 

(8,621

)

 

 

(7,742

)

Accounts payable

 

 

254

 

 

 

190

 

Revenue share payable

 

 

21,015

 

 

 

42,988

 

Accrued expenses and other liabilities

 

 

22,257

 

 

 

49,372

 

Operating lease liabilities

 

 

(3,020

)

 

 

(2,772

)

Net cash (used in) provided by operating activities

 

 

(12,966

)

 

 

56,972

 

Cash flows from investing activities:

 

 

 

 

Purchases of property and equipment

 

 

(2,319

)

 

 

(2,743

)

Purchase of patents

 

 

(1,600

)

 

 

 

Purchases of marketable securities

 

 

(70,495

)

 

 

(455,266

)

Sales of marketable securities

 

 

 

 

 

 

Maturities of marketable securities

 

 

77,400

 

 

 

148,888

 

Purchase of equity method investment and purchase option

 

 

 

 

 

(20,000

)

Sale of equity method investment

 

 

25,732

 

 

 

 

Net cash provided by (used in) investing activities

 

 

28,718

 

 

 

(329,121

)

Cash flows from financing activities:

 

 

 

 

Proceeds from initial public offering, net of underwriters' discounts and commissions

 

 

 

 

 

1,319,809

 

Proceeds from exercise of stock options, including early exercised stock options

 

 

9,249

 

 

 

4,539

 

Proceeds from shares issued in connection with employee stock purchase plan

 

 

4,762

 

 

 

3,201

 

Proceeds from exercise of warrants

 

 

 

 

 

60

 

Taxes paid related to net share settlement of restricted stock units

 

 

(15,362

)

 

 

(23,552

)

Repurchase of common stock

 

 

(78,136

)

 

 

 

Payment of deferred offering costs

 

 

 

 

 

(4,760

)

Net cash (used in) provided by financing activities

 

 

(79,487

)

 

 

1,299,297

 

Net increase in cash, cash equivalents, and restricted cash

 

 

(63,735

)

 

 

1,027,148

 

Cash, cash equivalents, and restricted cash - Beginning of period

 

 

1,255,381

 

 

 

228,233

 

Cash, cash equivalents, and restricted cash - End of period

 

$

1,191,646

 

 

$

1,255,381

 

Marqeta, Inc.

Financial and Operating Highlights

(in thousands, except per share data or as noted)

(unaudited)

 

 

 

2022

 

2021

 

Year over

Year

Change -

Q4'22 vs

Q4'21

 

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Operating performance:

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

203,805

 

 

$

191,621

 

 

$

186,678

 

 

$

166,102

 

 

$

155,414

 

 

31

%

Costs of revenue

 

 

116,681

 

 

 

111,519

 

 

 

108,629

 

 

 

91,376

 

 

 

79,615

 

 

47

%

Gross profit

 

 

87,124

 

 

 

80,102

 

 

 

78,049

 

 

 

74,726

 

 

 

75,799

 

 

15

%

Gross profit margin

 

 

43

%

 

 

42

%

 

 

42

%

 

 

45

%

 

 

49

%

 

(6) pps

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

110,991

 

 

 

105,887

 

 

 

97,868

 

 

 

100,348

 

 

 

88,995

 

 

25

%

Professional services

 

 

6,295

 

 

 

6,620

 

 

 

5,794

 

 

 

4,770

 

 

 

5,712

 

 

10

%

Technology

 

 

14,401

 

 

 

13,422

 

 

 

13,154

 

 

 

11,384

 

 

 

11,143

 

 

29

%

Occupancy and equipment

 

 

1,126

 

 

 

1,125

 

 

 

1,148

 

 

 

1,115

 

 

 

1,097

 

 

3

%

Depreciation and amortization

 

 

1,019

 

 

 

934

 

 

 

921

 

 

 

979

 

 

 

967

 

 

5

%

Marketing and advertising

 

 

1,862

 

 

 

688

 

 

 

886

 

 

 

559

 

 

 

804

 

 

132

%

Other operating expenses

 

 

5,753

 

 

 

10,922

 

 

 

4,995

 

 

 

4,843

 

 

 

4,811

 

 

20

%

Total operating expenses

 

 

141,447

 

 

 

139,598

 

 

 

124,766

 

 

 

123,998

 

 

 

113,529

 

 

25

%

Loss from operations

 

 

(54,323

)

 

 

(59,496

)

 

 

(46,717

)

 

 

(49,272

)

 

 

(37,730

)

 

44

%

Other income (expense), net

 

 

28,468

 

 

 

6,333

 

 

 

1,802

 

 

 

(11,677

)

 

 

142

 

 

19948

%

Loss before income tax expense

 

 

(25,855

)

 

 

(53,163

)

 

 

(44,915

)

 

 

(60,949

)

 

 

(37,588

)

 

(31

)%

income tax expense (benefit)

 

 

471

 

 

 

5

 

 

 

(227

)

 

 

(351

)

 

 

(781

)

 

(160

)%

Net loss

 

$

(26,326

)

 

$

(53,168

)

 

$

(44,688

)

 

$

(60,598

)

 

$

(36,807

)

 

(28

)%

Loss per share - basic and diluted

 

$

(0.05

)

 

$

(0.10

)

 

$

(0.08

)

 

$

(0.11

)

 

$

(0.07

)

 

(29

)%

TPV (in millions)

 

$

46,704

 

 

$

42,473

 

 

$

40,457

 

 

$

36,626

 

 

$

33,046

 

 

41

%

Adjusted EBITDA

 

$

(7,488

)

 

$

(13,630

)

 

$

(10,225

)

 

$

(10,453

)

 

$

1,162

 

 

(744

)%

Adjusted EBITDA margin

 

 

(4

)%

 

 

(7

)%

 

 

(5

)%

 

 

(6

)%

 

 

1

%

 

(5) pps

Financial condition:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,183,846

 

 

$

1,204,857

 

 

$

1,220,273

 

 

$

1,197,257

 

 

$

1,247,581

 

 

(5

)%

Restricted cash

 

$

7,800

 

 

$

7,800

 

 

$

7,800

 

 

$

7,800

 

 

$

7,800

 

 

%

Marketable securities

 

$

440,858

 

 

$

441,132

 

 

$

444,873

 

 

$

447,046

 

 

$

452,875

 

 

(3

)%

Total assets

 

$

1,770,346

 

 

$

1,774,455

 

 

$

1,776,930

 

 

$

1,793,483

 

 

$

1,830,378

 

 

(3

)%

Total liabilities

 

$

297,390

 

 

$

262,117

 

 

$

242,373

 

 

$

249,851

 

 

$

256,952

 

 

16

%

Stockholders' equity

 

$

1,472,956

 

 

$

1,512,338

 

 

$

1,534,557

 

 

$

1,543,632

 

 

$

1,573,426

 

 

(6

)%

pps = percentage points

Marqeta, Inc.

Reconciliation of GAAP to NON-GAAP Measures

(in thousands)

Information Regarding Non-GAAP Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this press release contains certain non-GAAP financial measures. Marqeta considers Adjusted EBITDA, Adjusted EBITDA Margin, and Non-GAAP operating expenses as supplemental measures of the company’s performance that are not required by, nor presented in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; acquisition related expenses which consists of due diligence costs related to potential acquisitions, and transaction costs, integration costs and amortization of intangible assets related to successful acquisitions; income tax expense (benefit); and other expense (income) net, which consists of changes in the fair value of redeemable convertible preferred stock warrant liabilities (for periods prior to the IPO), realized foreign currency gains and losses, interest income from our marketable securities, our share of equity method investments’ profit or loss, impairment of equity method investments or other financial instruments, and gain from sale of equity method investments. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. Additionally, we utilize Adjusted EBITDA as an input into our calculation of certain annual employee bonus plans.

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net revenue. This measure is used by management and our board of directors to evaluate our operating efficiency.

We define Non-GAAP operating expenses as total operating expenses adjusted to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; and acquisition related expenses which consists of due diligence costs related to potential acquisitions, and transaction costs, integration costs and amortization of intangible assets related to successful acquisitions.

Adjusted EBITDA, Adjusted EBITDA Margin, and Non-GAAP operating expenses should not be considered in isolation, or construed as an alternative to net loss, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity. In addition, other companies may calculate Adjusted EBITDA differently than Marqeta does, which limits its usefulness in comparing Marqeta’s financial results with those of other companies.

The following table shows Marqeta's GAAP results reconciled to non-GAAP results included in this release:

 

 

Three Months Ended

December 31,

 

Twelve Months Ended

December 31,

 

 

2022

 

2021

 

2022

 

2021

GAAP net revenue

 

$

203,805

 

 

$

155,414

 

 

$

748,206

 

 

$

517,175

 

GAAP net loss

 

$

(26,326

)

 

$

(36,807

)

 

$

(184,780

)

 

$

(163,929

)

GAAP net loss margin

 

 

(13

)%

 

 

(24

)%

 

 

(25

)%

 

 

(32

)%

GAAP total operating expenses

 

$

141,447

 

 

$

113,529

 

 

$

529,809

 

 

$

393,711

 

 

 

 

 

 

 

 

 

 

GAAP net loss

 

$

(26,326

)

 

$

(36,807

)

 

$

(184,780

)

 

$

(163,929

)

Depreciation and amortization expense

 

 

1,019

 

 

 

967

 

 

 

3,853

 

 

 

3,534

 

Share-based compensation expense

 

 

45,081

 

 

 

36,767

 

 

 

160,743

 

 

 

142,660

 

Payroll tax expense related to share-based compensation

 

 

209

 

 

 

403

 

 

 

1,977

 

 

 

1,956

 

Acquisition related expenses

 

 

526

 

 

 

755

 

 

 

1,439

 

 

 

1,089

 

Other expense (income), net

 

 

(28,468

)

 

 

(142

)

 

 

(24,926

)

 

 

2,563

 

Income tax expense (benefit)

 

 

471

 

 

 

(781

)

 

 

(102

)

 

 

(640

)

Adjusted EBITDA

 

$

(7,488

)

 

$

1,162

 

 

$

(41,796

)

 

$

(12,767

)

Adjusted EBITDA Margin

 

 

(4

)%

 

 

1

%

 

 

(6

)%

 

 

(2

)%

 

 

 

 

 

 

 

 

 

GAAP Total operating expenses

 

$

141,447

 

 

$

113,529

 

 

$

529,809

 

 

$

393,711

 

Depreciation and amortization expense

 

 

(1,019

)

 

 

(967

)

 

 

(3,853

)

 

 

(3,534

)

Share-based compensation expense

 

 

(45,081

)

 

 

(36,767

)

 

 

(160,743

)

 

 

(142,660

)

Payroll tax expense related to share-based compensation

 

 

(209

)

 

 

(403

)

 

 

(1,977

)

 

 

(1,956

)

Acquisition related expenses

 

 

(526

)

 

 

(755

)

 

 

(1,439

)

 

 

(1,089

)

Non-GAAP operating expenses

 

$

94,612

 

 

$

74,637

 

 

$

361,797

 

 

$

244,472

 

 

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