Marqeta Inc. addressed a key investor concern Tuesday as it announced a four-year renewal of its contract with Block Inc. alongside its latest earnings.
The company has extended its deal with Block
SQ,
to power the Cash App debit card through June 2027, Marqeta
MQ,
said in a Tuesday afternoon release.
Shares of Marqeta, which makes card-issuing technology, flew 20% higher in Tuesday’s extended session.
“Most importantly — and likely the only discussion point to expect on the call — is the guide given that the new [Block] contract starts on July 1, 2023, and will thus affect [the third quarter],” Mizuho’s Dan Dolev wrote in a note to clients.
Marqeta also posted second-quarter results, delivering a net loss of $58.8 million, or 11 cents a share, compared with a loss of $44.7 million, or 8 cents a share, in the year-prior period. Analysts tracked by FactSet were anticipating a 10-cent loss per share.
Read: Toast’s stock heats up after earnings as company hits a milestone
The company also reported adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of $824,000, whereas it logged a $10.2 million loss on the metric a year earlier. The FactSet consensus was for a $9.8 million loss on the basis of adjusted Ebitda in the latest quarter.
Net revenue climbed to $231 million from $187 million, whereas analysts were modeling $225 million.
Total processing volume for the second quarter came in at $54 billion, up 33% on a year-over-year basis.
“In the second quarter, we grew our business to ever-increasing levels of scale, exceeded our sales bookings goals again and reduced our cost structure,” Chief Executive Simon Khalef said in a release. “Our execution has been strong, including accelerating our go-to-market motion, enhancing our product offering, and extending our partnership with Cash App.”
Don’t miss: Upstart’s stock plunges after earnings as forecast comes in light
Read the full article here
