Marqeta, Inc. (NASDAQ:MQ) Q4 2022 Earnings Conference Call February 28, 2023 4:30 PM ET

Company Participants

Stacey Finerman - Vice President, Investor Relations

Simon Khalaf - Chief Executive Officer

Mike Milotich - Chief Financial Officer

Conference Call Participants

Tien Huang - JPMorgan

Darrin Peller - Wolfe Research

Ashwin Shirvaikar - Citi

Bob Napoli - William Blair

Timothy Chiodo - Credit Suisse

Ramsey Assal - Barclays

James Faucette - Morgan Stanley

Andrew Jeffrey - Truist

Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Marqeta’s Fourth Quarter 2022 Earnings Conference Call. As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Stacey Finerman, Vice President of Investor Relations, to begin.

Stacey Finerman

Thanks, operator. Before we begin, I would like to remind everyone that today’s call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our Investor Relations website, including our Annual Report on Form 10-K for the period ended December 31, 2021, and our subsequent periodic filings with the SEC. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of the time of this call, and the company does not assume any obligation or intent to update them, except as required by law.

In addition, today’s call includes non-GAAP financial measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. Reconciliations to the most directly comparable GAAP measures can be found in today’s earnings press release or earnings release supplemental materials, which are available on our Investor Relations website.

Hosting today’s call are Simon Khalaf, Marqeta’s CEO; and Mike Milotich, Marqeta’s Chief Financial Officer.

With that, I’d like to turn the call over to Simon to begin.

Simon Khalaf

Thank you, Stacey. And thank you, everyone, for joining us for Marqeta’s fourth quarter 2022 earnings call. I'll briefly touch on our results for the fourth quarter and full year 2022 and then share our top priorities for 2023. We ended the year in a position of strength, once again demonstrating our ability to grow and innovate at scale. Total processing volume, or TPV was one hook was $47 billion in the fourth quarter, a 41% increase compared to the same quarter of 2021 and 2.5x the TPV in the fourth quarter of 2020. Our net revenue of $204 million in the quarter grew 31% year-over-year with financial services empowered by Marqeta as the fastest growing segments. Gross profit was $87 million in the quarter, a 15% increase versus Q4 2021. This growth was 16 percentage points more than net revenue as we lapped the incredible ram in the buy now, pay later business we had in Q4 last year. Our gross margin for the quarter was 43%. The full year 2022 was another great one for Marqeta. Total processing volume, net revenue and gross profit grew 50%, 45% and 38%, respectively. We attribute our success to our great product market Fit, where our scale platform has been adopted by many of the innovators in this changing digital economy.