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			% Change		2022			2021			% Change
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.

²See "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			Year over Year Change - Q4'22 vs Q4'21
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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