Marqeta (MQ) Q2 2024 earnings summary

Executive summary

• Total Processing Volume (TPV) reached $71 billion in Q2 2024, up 32% year-over-year, reflecting strong growth across consumer and commercial use cases.

• Net revenue for Q2 2024 was $125 million, down 46% year-over-year, mainly due to a Cash App/Block contract renewal that changed revenue recognition and pricing.

• Gross profit was $79 million, down 6% year-over-year, primarily impacted by Cash App renewal pricing; gross margin improved to 63% from 37% last year.

• GAAP net income was $119 million, including a $158 million one-time benefit from the reversal of share-based compensation due to forfeiture of the Executive Chairman Long-Term Performance Award.

• Adjusted EBITDA was negative $2 million, with a margin of -1%, reflecting cost optimization and lower headcount.

Financial highlights

• TPV increased 32% year-over-year to $71 billion in Q2 2024.

• Net revenue declined 46% year-over-year to $125 million, with a 60 percentage point negative impact from the Cash App/Block contract change.

• Gross profit fell 6% year-over-year to $79 million; gross margin improved to 63% from 37% last year.

• Adjusted operating expenses were $81 million, down 3% year-over-year.

• Ended Q2 with $1.2 billion in cash and short-term investments.

Outlook and guidance

• Q3 and Q4 net revenue growth expected at 16%-18%; full-year net revenue to contract 24%-27%.

• Q3 gross profit growth expected at 25%-27%; Q4 about 3 points slower; full-year gross profit growth expected at 7%-9%.

• Adjusted EBITDA margin expected at 4%-6% in Q3, 6%-8% in Q4, and 3%-5% for the full year.

• Adjusted operating expense growth in Q3 and Q4 to be in the mid-teens, reflecting reinvestment in growth and platform resiliency.

• Path to GAAP profitability by end of 2026, with non-GAAP margins improving steadily.