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Marqeta Reports Second Quarter 2023 Financial Results, Announces Four Year Extension to Cash App Contract

The global modern card issuer had $54 billion in total processing volume, up 33 percent year-over-year, with net revenue of $231 million in the second quarter of 2023, up 24 percent year-over-year.

Marqeta, Inc. (NASDAQ: MQ), the global modern card issuing platform, today reported financial results for the second quarter ended June 30, 2023.

Total processing volume (TPV) was $54 billion, with net revenue of $231 million, representing year-over-year increases of 33% and 24%, respectively. Gross profit was $85 million, an increase of 8% year over year, resulting in a gross margin of 37%. GAAP net loss was $59 million and Adjusted EBITDA was $1 million.

"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. Our execution has been strong, including accelerating our go-to-market motion, enhancing our product offering, and extending our partnership with Cash App. I firmly believe Marqeta is well positioned to capitalize on the fast-growing embedded finance market," said Simon Khalaf, CEO of Marqeta.

Recent Business Updates:

Marqeta highlighted several recent business updates that demonstrate its current business momentum:

  • Marqeta announced today that it had signed a four year extension with Block to continue powering its popular Cash App card product. This extended deal to power the Cash Card is effective on July 1, 2023 and continues through June of 2027. We believe this renewal demonstrates the value Block sees in the Marqeta platform and this partnership, exemplified by Marqeta’s flexibility, innovation and breadth of service.
  • Marqeta announced a new expansion into Brazil with a partnership with Latin American banking-as-a-service platform Fitbank. Through this partnership, Fitbank will be both a Marqeta customer and act as Marqeta's BIN sponsor for customers looking to launch in the region. Brazil is a highly valued expansion point for many of Marqeta’s global customers and has a base of local fintechs looking to build new innovations on modern payment infrastructure.

Operating Highlights

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

Three Months Ended June 30,

 

%

Change

 

Six Months Ended June 30,

 

%

Change

 

2023

 

 

 

2022

 

 

 

 

2023

 

 

 

2022

 

 

Financial metrics:

 

 

 

 

 

 

 

 

 

 

 

Net revenue

$

231,115

 

 

$

186,678

 

 

24

%

 

$

448,456

 

 

$

352,780

 

 

27

%

Gross profit

$

84,609

 

 

$

78,049

 

 

8

%

 

$

173,771

 

 

$

152,775

 

 

14

%

Gross margin

 

37

%

 

 

42

%

 

 

 

 

39

%

 

 

43

%

 

 

Total operating expenses

$

154,030

 

 

$

124,766

 

 

23

%

 

$

330,624

 

 

$

248,764

 

 

33

%

Net loss

($

58,797

)

 

($

44,688

)

 

(32

)%

 

($

127,598

)

 

($

105,286

)

 

(21

)%

Net loss margin

 

(25

)%

 

 

(24

)%

 

 

 

 

(28

)%

 

 

(30

)%

 

 

Net loss per share - basic and diluted

($

0.11

)

 

($

0.08

)

 

(38

)%

 

($

0.24

)

 

($

0.19

)

 

(26

)%

Key operating metric and Non-GAAP financial measures:

 

 

 

 

 

 

 

 

 

 

 

Total Processing Volume (TPV) (in millions) 1

$

53,615

 

 

$

40,457

 

 

33

%

 

$

103,635

 

 

$

77,083

 

 

34

%

Adjusted EBITDA 2

$

824

 

 

($

10,225

)

 

108

%

 

($

3,521

)

 

($

20,678

)

 

83

%

Adjusted EBITDA margin 2

 

0.4

%

 

 

(5

)%

 

 

 

 

(1

)%

 

 

(6

)%

 

 

Non-GAAP operating expenses 2

$

83,785

 

 

$

88,274

 

 

(5

)%

 

$

177,292

 

 

$

173,453

 

 

2

%

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.

Second Quarter 2023 Financial Results:

Net revenue increased by $44 million, or 24% year-over-year, rising to $231 million from $187 million in the second quarter of 2022 resulting from a 33% increase in TPV year-over-year, partially offset by unfavorable changes in the mix of our card programs.

Gross profit increased by 8% year-over-year, rising to $85 million from $78 million in the second quarter of 2022 primarily due to our TPV growth. Gross margin was 37% in the second quarter of 2023.

Net loss increased by $14 million to $59 million in the quarter. Our increase in gross profit was partially offset by increases in compensation & benefits primarily due to restructuring charges and postcombination compensation benefits related to the acquisition of Power Finance. Net loss margin was 25% in the second quarter of 2023.

Total Processing Volume increased by 33% year-over-year, rising to $54 billion from $40 billion in the second quarter of 2022.

Adjusted EBITDA increased by $11 million year-over year, rising to $1 million, in the second quarter of 2023 from an Adjusted EBITDA loss of $10 million in the comparable prior year period. Adjusted EBITDA margin was 0.4% in the second quarter of 2023, an increase of 5 percentage points year-over-year.

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 1-844-826-3035 or direct at 1-412-317-5195. 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 August 15, 2023, 8:59 p.m. Pacific time (11:59 p.m. Eastern time). The confirmation code for the replay is 10180147.

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 expected accounting treatment and changes to revenue and gross profit; 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 and CFO. 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’s anticipated accounting treatment may be subject to further changes or developments; 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; the risk of ongoing financial services and banking sector instability and follow on effects to fintech companies, 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 and subsequent Quarterly Reports on Form 10-Q, 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 June 30,

 

Six Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

Net revenue

$

231,115

 

 

$

186,678

 

 

$

448,456

 

 

$

352,780

 

Costs of revenue

 

146,506

 

 

 

108,629

 

 

 

274,685

 

 

 

200,005

 

Gross profit

 

84,609

 

 

 

78,049

 

 

 

173,771

 

 

 

152,775

 

Operating expenses:

 

 

 

 

 

 

 

Compensation and benefits

 

126,788

 

 

 

97,868

 

 

 

274,547

 

 

 

198,216

 

Technology

 

13,154

 

 

 

13,154

 

 

 

27,744

 

 

 

24,538

 

Professional services

 

4,873

 

 

 

5,794

 

 

 

10,310

 

 

 

10,564

 

Occupancy

 

1,057

 

 

 

1,148

 

 

 

2,211

 

 

 

2,263

 

Depreciation and amortization

 

2,494

 

 

 

921

 

 

 

4,474

 

 

 

1,900

 

Marketing and advertising

 

561

 

 

 

886

 

 

 

1,002

 

 

 

1,445

 

Other operating expenses

 

5,103

 

 

 

4,995

 

 

 

10,336

 

 

 

9,838

 

Total operating expenses

 

154,030

 

 

 

124,766

 

 

 

330,624

 

 

 

248,764

 

Loss from operations

 

(69,421

)

 

 

(46,717

)

 

 

(156,853

)

 

 

(95,989

)

Other income (expense), net

 

10,762

 

 

 

1,802

 

 

 

22,434

 

 

 

(9,875

)

Loss before income tax expense

 

(58,659

)

 

 

(44,915

)

 

 

(134,419

)

 

 

(105,864

)

Income tax expense (benefit)

 

138

 

 

 

(227

)

 

 

(6,821

)

 

 

(578

)

Net loss

$

(58,797

)

 

$

(44,688

)

 

$

(127,598

)

 

$

(105,286

)

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

$

(0.11

)

 

$

(0.08

)

 

$

(0.24

)

 

$

(0.19

)

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

 

538,267,449

 

 

 

544,704,146

 

 

 

538,988,940

 

 

 

543,524,008

 

 

Marqeta, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 
 

 

June 30,

2023

 

December 31,

2022

 

(unaudited)

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

950,157

 

 

$

1,183,846

 

Restricted cash

 

9,375

 

 

 

7,800

 

Short-term investments

 

432,354

 

 

 

440,858

 

Accounts receivable, net

 

15,253

 

 

 

15,569

 

Settlements receivable, net

 

10,515

 

 

 

18,028

 

Network incentives receivable

 

67,063

 

 

 

42,661

 

Prepaid expenses and other current assets

 

29,098

 

 

 

38,007

 

Total current assets

 

1,513,815

 

 

 

1,746,769

 

Property and equipment, net

 

14,330

 

 

 

7,440

 

Operating lease right-of-use assets, net

 

7,784

 

 

 

9,015

 

Goodwill

 

123,446

 

 

 

 

Other assets

 

44,768

 

 

 

7,122

 

Total assets

$

1,704,143

 

 

$

1,770,346

 

Liabilities and stockholders' equity

 

 

 

Current liabilities

 

 

 

Accounts payable

$

2,818

 

 

$

3,798

 

Revenue share payable

 

125,853

 

 

 

142,194

 

Accrued expenses and other current liabilities

 

189,669

 

 

 

136,887

 

Total current liabilities

 

318,340

 

 

 

282,879

 

Operating lease liabilities, net of current portion

 

7,132

 

 

 

9,034

 

Other liabilities

 

6,056

 

 

 

5,477

 

Total liabilities

 

331,528

 

 

 

297,390

 

Stockholders' equity :

 

 

 

Preferred stock

 

 

 

 

 

Common stock

 

52

 

 

 

53

 

Additional paid-in capital

 

2,103,870

 

 

 

2,082,373

 

Accumulated other comprehensive loss

 

(1,476

)

 

 

(7,237

)

Accumulated deficit

 

(729,831

)

 

 

(602,233

)

Total stockholders’ equity

 

1,372,615

 

 

 

1,472,956

 

Total liabilities and stockholders' equity

$

1,704,143

 

 

$

1,770,346

 

 

Marqeta, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 
 

 

Six Months Ended June 30,

 

 

2023

 

 

 

2022

 

Cash flows from operating activities:

 

 

 

Net loss

$

(127,598

)

 

$

(105,286

)

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

 

 

 

Depreciation and amortization

 

4,474

 

 

 

1,900

 

Share-based compensation expense

 

90,164

 

 

 

72,153

 

Non-cash postcombination compensation expense

 

32,430

 

 

 

 

Non-cash operating leases expense

 

1,231

 

 

 

1,111

 

Amortization of premium (accretion of discount) on short-term investments

 

(2,311

)

 

 

338

 

Impairment of other financial instruments

 

 

 

 

11,616

 

Other

 

499

 

 

 

326

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

63

 

 

 

5,067

 

Settlements receivable

 

7,513

 

 

 

833

 

Network incentives receivable

 

(24,402

)

 

 

17,133

 

Prepaid expenses and other assets

 

14,467

 

 

 

(14,982

)

Accounts payable

 

(3,239

)

 

 

(1,609

)

Revenue share payable

 

(16,341

)

 

 

(4,092

)

Accrued expenses and other liabilities

 

(11,828

)

 

 

(6,987

)

Operating lease liabilities

 

(1,642

)

 

 

(1,464

)

Net cash used in operating activities

 

(36,520

)

 

 

(23,943

)

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(668

)

 

 

(868

)

Capitalization of internal-use software

 

(6,395

)

 

 

 

Business combination, net of cash acquired

 

(131,914

)

 

 

 

Purchases of short-term investments

 

(279,548

)

 

 

(12,999

)

Maturities of short-term investments

 

296,000

 

 

 

12,900

 

Net cash used in investing activities

 

(122,525

)

 

 

(967

)

Cash flows from financing activities:

 

 

 

Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options

 

2,299

 

 

 

3,407

 

Proceeds from shares issued in connection with employee stock purchase plan

 

1,775

 

 

 

2,775

 

Taxes paid related to net share settlement of restricted stock units

 

(10,070

)

 

 

(8,580

)

Repurchases of common stock

 

(67,073

)

 

 

 

Net cash used in financing activities

 

(73,069

)

 

 

(2,398

)

Net decrease in cash, cash equivalents, and restricted cash

 

(232,114

)

 

 

(27,308

)

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

 

1,191,646

 

 

 

1,255,381

 

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

$

959,532

 

 

$

1,228,073

 

 

Marqeta, Inc.

Financial and Operating Highlights

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

(unaudited)

 
 

 

 

2023

 

2022

 

Year over

Year Change

Q2'23 vs

Q2'22

 

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

Operating performance:

 

 

 

 

 

 

 

 

 

 

 

 

Net revenue

 

$

231,115

 

 

$

217,343

 

 

$

203,805

 

 

$

191,621

 

 

$

186,678

 

 

24%

Costs of revenue

 

 

146,506

 

 

 

128,179

 

 

 

116,681

 

 

 

111,519

 

 

 

108,629

 

 

35%

Gross profit

 

 

84,609

 

 

 

89,164

 

 

 

87,124

 

 

 

80,102

 

 

 

78,049

 

 

8%

Gross margin

 

 

37

%

 

 

41

%

 

 

43

%

 

 

42

%

 

 

42

%

 

(5) pps

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

126,788

 

 

 

147,759

 

 

 

110,991

 

 

 

105,887

 

 

 

97,868

 

 

30%

Technology

 

 

13,154

 

 

 

14,590

 

 

 

14,401

 

 

 

13,422

 

 

 

13,154

 

 

—%

Professional services

 

 

4,873

 

 

 

5,437

 

 

 

6,295

 

 

 

6,620

 

 

 

5,794

 

 

(16)%

Occupancy and equipment

 

 

1,057

 

 

 

1,154

 

 

 

1,126

 

 

 

1,125

 

 

 

1,148

 

 

(8)%

Depreciation and amortization

 

 

2,494

 

 

 

1,980

 

 

 

1,019

 

 

 

934

 

 

 

921

 

 

171%

Marketing and advertising

 

 

561

 

 

 

441

 

 

 

1,862

 

 

 

688

 

 

 

886

 

 

(37)%

Other operating expenses

 

 

5,103

 

 

 

5,236

 

 

 

5,753

 

 

 

10,922

 

 

 

4,995

 

 

2%

Total operating expenses

 

 

154,030

 

 

 

176,597

 

 

 

141,447

 

 

 

139,598

 

 

 

124,766

 

 

23%

Loss from operations

 

 

(69,421

)

 

 

(87,433

)

 

 

(54,323

)

 

 

(59,496

)

 

 

(46,717

)

 

49%

Other income (expense), net

 

 

10,762

 

 

 

11,672

 

 

 

28,468

 

 

 

6,333

 

 

 

1,802

 

 

n/m

Loss before income tax expense

 

 

(58,659

)

 

 

(75,761

)

 

 

(25,855

)

 

 

(53,163

)

 

 

(44,915

)

 

31%

Income tax expense (benefit)

 

 

138

 

 

 

(6,960

)

 

 

471

 

 

 

5

 

 

 

(227

)

 

(161)%

Net loss

 

$

(58,797

)

 

$

(68,801

)

 

$

(26,326

)

 

$

(53,168

)

 

$

(44,688

)

 

32%

Loss per share - basic and diluted

 

$

(0.11

)

 

$

(0.13

)

 

$

(0.05

)

 

$

(0.10

)

 

$

(0.08

)

 

38%

TPV (in millions)

 

$

53,615

 

 

$

50,020

 

 

$

46,704

 

 

$

42,473

 

 

$

40,457

 

 

33%

Adjusted EBITDA

 

$

824

 

 

$

(4,346

)

 

$

(7,488

)

 

$

(13,630

)

 

$

(10,225

)

 

(108)%

Adjusted EBITDA margin

 

 

0.4

%

 

 

(2

)%

 

 

(4

)%

 

 

(7

)%

 

 

(5

)%

 

5 pps

Financial condition:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

950,157

 

 

$

1,050,414

 

 

$

1,183,846

 

 

$

1,204,857

 

 

$

1,220,273

 

 

(22)%

Restricted cash

 

$

9,375

 

 

$

7,800

 

 

$

7,800

 

 

$

7,800

 

 

$

7,800

 

 

20%

Short-term investments

 

$

432,354

 

 

$

408,675

 

 

$

440,858

 

 

$

441,132

 

 

$

444,873

 

 

(3)%

Total assets

 

$

1,704,143

 

 

$

1,774,183

 

 

$

1,770,346

 

 

$

1,774,455

 

 

$

1,776,930

 

 

(4)%

Total liabilities

 

$

331,528

 

 

$

340,533

 

 

$

297,390

 

 

$

262,117

 

 

$

242,373

 

 

37%

Stockholders' equity

 

$

1,372,615

 

 

$

1,433,650

 

 

$

1,472,956

 

 

$

1,512,338

 

 

$

1,534,557

 

 

(11)%

pps = percentage points

n/m = not meaningful

Marqeta, Inc.

Reconciliation of GAAP to NON-GAAP Measures

(in thousands)

(unaudited)

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; restructuring charges; acquisition-related expenses which consist of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions, and non-cash postcombination compensation expenses; income tax expense (benefit); and other income (expense), net, which consists of interest income from our short-term investments, realized foreign currency gains and losses, 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 our 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; restructuring charges; and acquisition-related expenses which consists of due diligence costs, transaction costs and integration costs related to potential or successful acquisitions, and non-cash postcombination compensation expenses.

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 June 30,

 

Six Months Ended June 30,

 

 

2023

 

 

 

2022

 

 

 

2023

 

 

 

2022

 

GAAP net revenue

$

231,115

 

 

$

186,678

 

 

$

448,456

 

 

$

352,780

 

GAAP net loss

$

(58,797

)

 

$

(44,688

)

 

$

(127,598

)

 

$

(105,286

)

GAAP net loss margin

 

(25

)%

 

 

(24

)%

 

 

(28

)%

 

 

(30

)%

GAAP total operating expenses

$

154,030

 

 

$

124,766

 

 

$

330,624

 

 

$

248,764

 

 

 

 

 

 

 

 

 

GAAP net loss

$

(58,797

)

 

$

(44,688

)

 

$

(127,598

)

 

$

(105,286

)

Depreciation and amortization expense

 

2,494

 

 

 

921

 

 

 

4,474

 

 

 

1,900

 

Share-based compensation expense

 

47,056

 

 

 

35,148

 

 

 

93,055

 

 

 

72,153

 

Payroll tax expense related to share-based compensation

 

638

 

 

 

423

 

 

 

1,278

 

 

 

1,258

 

Acquisition-related expenses (1)

 

11,684

 

 

 

 

 

 

46,152

 

 

 

 

Restructuring

 

8,373

 

 

 

 

 

 

8,373

 

 

 

 

Other expense (income), net

 

(10,762

)

 

 

(1,802

)

 

 

(22,434

)

 

 

9,875

 

Income tax expense (benefit)

 

138

 

 

 

(227

)

 

 

(6,821

)

 

 

(578

)

Adjusted EBITDA

$

824

 

 

$

(10,225

)

 

$

(3,521

)

 

$

(20,678

)

Adjusted EBITDA Margin

 

0.4

%

 

 

(5

)%

 

 

(1

)%

 

 

(6

)%

 

 

 

 

 

 

 

 

GAAP Total operating expenses

$

154,030

 

 

$

124,766

 

 

$

330,624

 

 

$

248,764

 

Depreciation and amortization expense

 

(2,494

)

 

 

(921

)

 

 

(4,474

)

 

 

(1,900

)

Share-based compensation expense

 

(47,056

)

 

 

(35,148

)

 

 

(93,055

)

 

 

(72,153

)

Payroll tax expense related to share-based compensation

 

(638

)

 

 

(423

)

 

 

(1,278

)

 

 

(1,258

)

Restructuring

 

(8,373

)

 

 

 

 

 

(8,373

)

 

 

 

Acquisition-related expenses

 

(11,684

)

 

 

 

 

 

(46,152

)

 

 

 

Non-GAAP operating expenses

$

83,785

 

 

$

88,274

 

 

$

177,292

 

 

$

173,453

 

_______________

(1) Acquisition-related expenses, which include transaction costs, integration costs and non-cash postcombination compensation expense, have been excluded from Adjusted EBITDA as such expenses are not reflective of our ongoing core operations and are not representative of the ongoing costs necessary to operate our business; instead, these are costs specifically associated with a discrete transaction.

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