Marqeta (MQ) 28 Feb 232022 Q4 Earnings call transcript

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.

operator. Thanks,

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

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

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

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

$XX in XX% Total processing fourth quarter to grow one the quarter a call. And ability fourth priorities the year year the you, to full innovate top X.Xx earnings on XXXX. We in Stacey. position briefly volume, ended I'll for hook same increase TPV again of share the the and compared of scale. was a XXXX demonstrating everyone, then thank quarter touch quarter XXXX fourth you, results Marqeta’s XXXX. the Thank at once for joining in our of strength, XXXX fourth quarter, us or for TPV billion our our and was and for and

QX grew lapped had versus the in million XX% empowered the percentage year-over-year XX QX the was in pay segments. $XX the XX% Marqeta we business last revenue a as more growing as ram $XXX of we quarter revenue the fastest in by services quarter, year. increase with was growth net than buy Our million financial later profit XXXX. in net now, This incredible points Gross

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revenue we This among in a evident customers XXXX. strong with of our our and XXX% consistent retention and which business. for both retention compared As is our growth our Block to products, healthy result, is revenue satisfaction net non-Block continued have

While Banking, ended excited years, commerce to use embedded features with at I'm by fraud. delivery, us. ahead rapidly an enabling pleased moved case We we about a on entirely new expanding one application is evolving. introducing powered demand as XXXX, I'm actually more minimizing started issuance. The Neo finance embedded time. Then with where an such engagement market we opportunities has for and finance Marqeta of the

help later then move pay Next, we required expense BXB and enabled to into costs buy time digitize build acceptance now to merchant alleviating the payments. and management

us, new access, front opportunities large as there wage of and point disbursement, of such sale in forward, are accelerated lending. account several stable Going flexible wage

market. our drive Their opportunities. and goal demand solution is narrowly create for continue seen to their and change for we've quarters, several trend from established demand their into financial syntax user services We more larger, last large the to do focused as looking to over more drive to this companies addition, further that In base embed loyalty additional Marqeta among revenue is expect ideal offerings.

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our us a comprehensive, choice Second, solution credit segment. natural this for money with market making is management with debit, movement program coupled support of

mis-footed need Our from multiple won't to solutions customers stitch vendors. together

the Finally, our global their our scale ability gives a our confidence support basis. on customers growth in to

path an Power this three, continue let two focus focus. to integrate represent XXXX. And making three number company. areas so the progress they accelerate XXXX, two, the began Given to in renewed through on Rather me economy to half to doesn't our departure of innovation one, our our within share to profitability, on Number this really sharper last of for second focus for sales. Number scale. our acceleration a priorities drive acquisition. We the represent

leveraged Credit a Marqeta, represents companies partners. program held legacy first up is for but processing integration. At by of the addressable has we've is two have credit not Power that from back we market currently kept how technology engage consumers. years, management that huge Our priority their provided with constraints

of successes, that Green been had solution of with our par offerings. on processing approach us is credit While management both have its for that Light prospects in program as has combines from prepaid our more terms the such card, launch this the the debit clamoring and and

Power what acquisition That's the delivers.

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give an illustrative you me Let example.

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BXB announcement, and since excited retail our providers, with that well are about brands, engaged solution. combined known, already In marketplaces the we've fact,

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we of year. in and two anticipate between platforms, the the which will completed underway Therefore, already there's integration this very QX is little be overlap

priority motion our second our accelerate efficiencies. sales to on greater to is and with focus improved Moving

high years, and achieved Marqeta the syntax. partnering Over grown has scale fast growth with

base a use remain profitable growth new of products will new they customers to as these geographies. into expand expect launch grow, We and Marqeta

However, bring to looking XXXX which brands we evolving finance were existing to fintechs embedded to late the more in shifting established market, started solutions slow to adapt base. from to user their

financial result, card just in programs. QX late for XXXX only challenges XX As new to meet a it performance, to onboard sales customers not ramp our impact did months as bookings and our and expectations. to roughly have XXXX takes their These internal XX started our through

believe now behind us. news problem impact is of feel that this we most The Unfortunately, will we that good in XXXX. is

the As we in focused segments. I my teams managing to role go-to-market, on specific expanded include modular summer reorganized into

to leaders giving based We also sales integrated engineering sustained into relationships end payment the modular and deep ownership account solutions and account knowledge on teams, end expertise. and

our we incentives align growth In conjunction changes, our with to sales the objectives. properly

have pleased very began desired are outcomes. changes these We already the producing

our cases extremely quarters extremely our for In highlighting of four customers. commercial three The for strong, platform recent of our the combined. and sales breadth were fact, few both than are use bookings XXXX totaling consumer more first diverse, the

us management customer Canada. One large expense business their to a provider to who's using expand is

closed A over more XX is offer Rakuten which and with services for the for platform to a we has loyalty each France is launch method payment an managed digital solution offers example program, specific our unique to of partnership million looking to time To Mastercard Another enable wellness the of and improve the an a members, win immigrants. first this, security integrated payment a of additional do a transaction. virtual to use system. the Marqeta services ecommerce cards linked will cashback issuance single provide financial

In signing contracts go-to-market, the and longer addition we also focus reorganization to with on term customers.

and quarter top three years. these half of eight typical of contracts customers. renewed we've second a previous renewed duration of XXXX, the our than Approximately XX% of our duration top three were Since at four our longer about customers of

were In and years. a for five these alignment. improved sales and team fact, continue third over sharpened even renewals the given that this focus of trajectory confident accelerate, will I'm done

economy's the within had launches. on priority is two third product innovating In XXXX, Moving to sizable we our scale.

capabilities. and [inaudible] is minimize for risk and to second control movement is the to First banking fraud money one Marqeta offer additional charge one

yet credit Our Power recent is platform addition significant of program expansion. another with management

we year, and scale, platform capabilities, security. resilience will enhancing in next the Over our invest

are economies of achieving However, this significantly than previous There smaller years. while we're in be reasons main confident innovate investment three will increase scale. in to continue can we

we First, over product and outstanding technology the team build years. an last few

headcount. our and Given scale multiple incremental organization, the quarterly platform innovate launch and we enhancements to current limited with capacity of sufficient have

have management, the together as will native to we extremely Neither fill, it have Marqeta. tolerate leverage example we tasks to to We're fully will finance that. mature, leaving for, no customers onboarding into this we systems we disparate of the automated And we customers gaps solution. our industry, that base not a that. existing unlocks to customers cloud a suboptimal efforts major customer API truly third, The debit, concrete where focused would and credit, are company only use ourselves consider led that deep on traditionally solution and be bundled undergoing our program with our going some with offering, money meets a innovative the since very As We of fintech a industry risk to plan management. payments our longer and problem In highly evolution. strategic banking solve bundle platform our going. needs closing, piece customers ways. simply positioned a small is Embedded an to to first serve issuer in and global unbundling of another boom focus platform headcount movement

will I'll I a outlook results With we as well look detailed for on over opportunity. for it that, am XXXX. tremendous financial Mike our as to confident quarter the this for at capitalize more turn our

as and for were expectations, you, adjusted revenue high revenue TPV a X%. of better was we strong negative QX end of investment adjusted Marqeta of of XX%, by finish net and the The improvements effectiveness. XX%. our EBITDA growth Gross QX growth net incremental while expected great year good margin a both to efficiency our everyone. gross leveraging afternoon, and EBITDA margin than slow on in Thank to continued with was XX% margin growth of and Simon,

to the spending more TPV will highlights XXXX, our our scale. QX for at billion, ability cover $XX time current was before fast grow detailing XX%, I again QX growing demonstrating once expectations

$XXX million rapid TPV the less and our XX year. than perspective. our we put In days this combined. in to volume days And QX, processed over billion QX where TPV over QX me than Let XXXX QX had quarters in in we over of $XX compared three XX of more of of XX is days, in scale first

year, On by apps growing overall was penetration among card company, rapidly card higher performance driving consistent fueled all vertical, TPV demand. pay and by merchant the rising consistent the relatively with steadily growth financial than cash digits. Lending, slowed buy in and been growing faster QX including spend expansion growing double a rising three has engagement low consumer growth remain per but our the user. in at touch growth digits this services delivery quarter, Looking demand The the vertical for by is driven users typically category now, double did reasons. later

their of another QX a migrated portion for customer one one First, in of reasons. diversification programs to processor

adjust little for been shy you overall of growth our migration, a have this If this verticals would growth. TPV

was strong XX%. holiday We a well to Second, a XXXX year QX but with over sequential of short for QX very to spending BNPL, from falls season exceptionally that saw the the holiday growth mid-XXs, in difficult the in comp. sequential QX nice creating was growth QX this when for BNPL surge XXXX

requirements QX, Expense uncertain the This mostly growth their contributor of XX% more well in as growth, from in growth. Finally, fueled net up manage a to than comps our points expense than more TPV more to concentration cases credit lease XX% the many environment. driving than year-over-year, XX%. macroeconomic doubled to by doubled quarters prior QX businesses to be well causing Block year. year-over-year, than revenue five spending the continues due QX Marqeta lower of total strong as as management customers our rising TPV our closely. reaching is almost given evolving by about last environment QX to QX Powered growing QX. international as up the was in more management rapidly tightened from $XXX X.X US, revenue TPV, is growth million macroeconomic

This cash with is pay by and driven card contributing. seller after app mostly also the

in reasons to our slower growth I factor due is shared BNPL Another the earlier. revenue

take XX% Powered of incentives increase. not QX of to the volume rate quarter ‘XX, our was Block mostly margin BNPL helped by to last gross take Our several of faster lower a directly total improved growing is than to margin our rate. QX, also gross from Marqeta Block margin QX growth BNPL of than the with as tied by revenue TPV net TPV services profit $XX and take much and steadily point bps revenue increase the gross was as profit continues growth million, XX%. year higher one lower the revenue concentration QX to TPV. increased, points given growth. than due profile outside by of the whose The our network Business The more one is value affects three to added net bps mostly of Block's than company an Remember, due lower the of business. the contribution in last QX margin was net Powered lower well as rest due growing share the but total lower The rate the than than

dynamics. points about additional profit our Two gross

revenue gross to Block volume our that part This to Block in improving is unchanged less remains although the concentration as during five up margins QX, is mix network points favorable elsewhere, incentives. business profit as in due well due Block's concentration time. within First, increasing

Second, BNPL as growth. slowing growth result QX impacted volume also significantly of a gross profit our the

than and of were adjusted revenue Xx Block in Block and is over million, than more ten company expenses faster growth Our points faster QX and BNPL. QX total BNPL the of XX%. $XX our gross profit than outside outside growing operating growth growing

discipline was growth. to did each hiring critical amount a for and in investing we roles growth slowed that expense Our for repeat, only XXXX ‘XX in identified meaningfully efficiencies of continued significant not due quarter in

year-over-year EBITDA rates. higher the expected, a to adjusted mostly decision $X to X%. incremental Interest continued we than margin investment a This pace was XX% As is driven fuel $X our of growth innovation shrinking. was and negative by required our $X.X driven hiring rising income than QX more the than million, million, better million QX, quarter. future slow result to $XX result, interest by was during of million the negative

further an recorded XXXX, was investment. we In utilized start $XX equity the We XX.X sale loss shares had an net The company also million $XX Since $X.XX. for of average million the of a million. the private XXXX, price on we QX of GAAP of remaining purchased through back buy authorized gain $XX million at board it plan the and acquisition our accelerate will from opportunities but we With product again September. future. don't in Power $XXX our million time the last the be consider there beliefs our roadmap recent that of this M&A, other stock attractive to may to more

flow, and the Similar to buybacks prior all years, in XXXX, share we had including financing sale of equity positive excluding the cash investment. activities,

was Although business. further cash, are year, the our demonstrates we adjusted of not which EBITDA our burning negative for strength the

Now, let's XXXX. expectations for to our transition

important with start me let several First, points.

lending, of over relatively soft a indicators decline Based on comes business strength business XXXX the i.e. with both macroeconomic and typically months a investment that consumption not a trajectory the conflicting recession. the our of risks, last trajectory and several progresses, the have suggest that as a assumed slowdown in in oncoming business and consumer spending we often significant and modest

a have future. of term to will which volume, opting solidifies business renewal conviction growth for in which renewed is contracts is can we Block. we we a top would partner choice XXXX, us Although ‘XX, Block our assumed contracts, place the potential Customers in contract sustainable, to indicate of are run renewal excluding the we March of our cannot financial priority XXXX, as secure various through a until and we and a to renewal ‘XX the longer a for base current their like into May is throughout in From have impact XXXX. profitable Therefore, approximately Marqeta done. shows Block our performance a XX% drive in and sign

business two unusual not profit our receive that terms. favorable way we believe revenue with and XXXX revenue affect grow renewals, growth XXXX same particular, these old There contracts our Therefore, as in better subsequent gross well headwinds on benefit that growth, get we will they profit and In more much years. face from only we net weighing will over economics customers as the are bigger, XXXX in growth, net are factors gross as scale. the our as

three sales bookings use below we a solution as repeatable ‘XX ‘XX expectations of in first transitioned platform enterprise structured cases to late motion. quarters our and were specific from sales First and with supporting the oriented a

Although, reduced customers of we the based believe card ramping and sales their we have challenges solved XXXX has progress are the who the in of sales on so bookings far QX, lack ’XX, programs previous in ’XX. number QX,

about up great Visa our track Second, and to agreement renewed our for with achieving our Visa and partnership scale long feel growth. relationship earlier record We for this with reflects ourselves the month, success. term set believe we

level we've between Marqeta, network the in discussed As customers. of the the incentives our the networks, of is past, and based our overall nature relationships the on

For two of level incentives of shifts are customers, relationships larger the our Marqeta these in earns. negatively impacting

is it significant profit type this our While a change will growth. impact on gross XXXX of have rare,

the growth initially products new and year control due get from signed growth Marqeta with macroeconomic our faster customers For revenue banking small of XXXX. risk than extended trajectory, net and growth to currently expect offset mostly customers points from that starting terms the by the to a by years to revenue prior signed renewal is five for traction. fueled standing the we customers with than lift assumes in favorable to The last the TPV pressure more long in more growth volume two to to be low XXXX, net XXs, full grow by Powered modest revenue is continuing Marqeta

strong don't we expect our roughly ramp it ‘XX new much card to for impact customers XX to XX months on revenue. Given our from sales programs, their QX takes ‘XX and onboard

the Power complete expect credit not as contribution do be in until this QX will programs a not integration meaningful also year. ‘XX, from We

to XXXX which gross margin to profit customers in by growth expect almost gross mid-teens, We specific low should points. change equates certain points, by profit incentives in network lowering to in gross gross margin XXs. a our two the tied growth the profit our profit be over The five pressure

Power. expenses optimistic combination single will aside, are XXXX of the in of availability operating in renewal We activity, plan customers net that has achieve in XXXX. investment. and to organization credit done Block grow revenue deliver expense early ways discipline the our the finding profit for continuing the growth sales, and of within our high Putting gross our lapping offering, points as significant improving for effective job growth rapidly whole without very accelerate tremendous a efficiencies addition two complete a renewal we innovating the We our for meaningfully scale our economies drive this need the XXXX, the excluding and company. the incremental additional to our The throughout and the focus of of began to of to digits, more adjusted plan that our

continuing for excluding we low EBITDA desire to demonstrates customers. expect progress and negative negative expense mid-single XXXX Power minimal Therefore, the to our This digits, growth margin deliver develop profitability to approximately valuable our towards adjusted point be our to solutions goals from while acquisition. one

to quarterly quarter our expected mid-single started incentives. by due cadence expect For is accelerate between be growth business environment to the in year low have XX% impact the QX quarter XXs, revenue to begin QX also similar. we and a activity.QX get to in the accelerating year, of be the as in tougher our little cash app our revenue driven is and accelerating XX%, growth QX the QX we growth and profit the lap XXs our are lowest expected be all be and macroeconomic and easier is teens highest digits, the lapped once be grow of XXXX, our customers migration line the in as to of the gross QX QX the before partial expectations, BNPL volume in we ‘XX. QX to low with comparisons net into growth. QX in with worsens should comps alignment growth expected growth full to XX% high mostly between expected the to in renewal XX%

expense growth teens an due ‘XX. ‘XX half mid-single QX to to also profit QX, be to half the the In an expense points two accelerates due quarters and remains additional the is added of QX expense X% QX expect as and of second in low in operating have four lap approximately the X%. expected to second Power. headcount adjusted XXXX, growth growth to sales to the adjusted margin hiring. organic to of basis EBITDA growth Therefore, inorganic margin should positive EBITDA and subdued. organic on technology, All expense be digits fall a growth as inclusion have adjusted expected we product In we will of gross is negative

performance XXXX have for our although some profitable excited conclusion, drive In years sustainable, are momentum financial challenges, the have about to we expect to growth to we we come.

by into confidence and fit to two, half in services market. large are to the primarily Marqeta four beyond, our focused more looking and first became excitement began Our set, fashion we Number market very expanded longer and in US, evolved XXXX we second a growing renewals. large embed and began and our economies half XXXX, companies the of Number term and expense on our our of financial factors. serve investment sales path sustainable Europe product rapidly securing the of the their driven as has motion to in we great business start base product a three, accelerated with profitability. realize within in portions scale of down our offerings to

the scaled And acquired to finally, to enhances modern the Power has platform differentiation significant offering, market use the sustainable the supports growth. opportunity, further innovators. card all which that fit, term base and long the installed discipline cases our the operational month this credit issuing for Therefore, team, product number four, earlier our we Marqeta achieve as expand

to in coming quarters. share with you our progress are excited We the

back over now will the turn it operator I to for questions.

Instructions] [Operator

with Huang JPMorgan. Our from first comes Tien-Tsin question

I don't pieces the lot of things the us I what some giving factor. a Thanks a it heard It's will of lot sales if beyond the you I as for is But taking Great. like on your side renewed heard you're mind. is change; And to there. of relationships sounds more I getting wanted being term. renewal moving not ask economics. margin longer deals well. here. just confidence bookings know And Visa. Mike, why gross question this again you gives that go straight And can it a some partner improve by onetime through you XXXX? with up influenced some Visa

giving detail would bit a mind So that you around little bit it. just little more by because I was you. confused a Thank

start Yes, Tien-Tsin. that, let me with

about we've So that before and of level based network. the relationship is with of nature incentives the relationship our talked our on the with our the customer

the is customers there relationship by So customers, full with are some that those there and positive is in a shifting that some decision our of for networks, the nature are. means larger level us that referred brand case we in way between that absolutely we don't are two incentives. get control that incentives that in extremes. There are we we where this incentives is of which make and happening customers two the then are And to not is variations a what several the

gross points. I profit growth gross And is margin. so two XXXX mentioned, percentage our That's and points ‘XX lowers it our over five in by margin creating, of almost that drag as

this happening it volumes we does, But particularly ‘XX. going have is impact is have. growth year already that it an this on because forward impactful So beyond to will

much have once ramp have we growing get we beyond be to faster ‘XX. new that will that While yet customers

is So business. in, will us is in that situation of year, we're we something as dynamics of based significance just the see beyond it impact the this magnified impact this the XXXX that the although that on

the what In four one, of term these is the we costs the growth, that as customers, makes do economics. profit better down, revenue of and generally for of gross more terms do our get have gross remains you quarters renewal overall network but cost on with happening bank That that know, you is revenue, because a also longer same. pressure you first confident comes when us when profit particularly deals is our the our what's we

And is so a gross like pressure much lower you're because a actually growth our dealing more that on feels to just base. based on lot from impactful margin, with a overall of margin although perspective the it revenue much profit

that's So factor. one

rate. of Another thing what we've we're and discretionary mix about spending. our business not, spending spending That's continue right that quarters, now seeing confidence that was why gives we've up areas. what way roughly the low the important medium discretionary interchange the grew us and essentially of high all seen sort at going be because a is that the all to discretionary categories, is QX, although higher where in nondiscretionary talked and categories until previous to than faster between lot same the is would discretionary And that's nondiscretionary is on generally in grow discretionary

typically that macroeconomic the is to aren't the network bank there'll and depending on nature expect any spend impact the in XXXX, starting putting environment. on be pressure because our see so some also growth different, we're now, profit what fees we don't as And right gross of from

benefit should that then anymore something be past and that as But out see not you should continue to a drag we and us. XXXX look move as we

are So those the big factors.

with Research. comes Wolfe Darrin question Next from Peller

profitability you Hey, new guys. your first Simon, in hear Thanks, look been just you company is all, role. when when congrats Where again? off do vertical you put and that next metric you that years, measure Block the into? more and for really couple between the Really, I'd going of to business see you investment on And mix this look has the thoughts love the how forward. strategically on Maybe categories other of what with the to differentiation having. important at start want of And you. then

readjustment I I question force at And there just were of just the you factors are as if the to well one beyond then once, and noteworthy Mike. both of can when isolate. was through different if I thing this and that? if renewal some or just year's guess Tien-Tsin’s you of backing the, an curious it's price big on there rank there the at of a a the add guide, What incentive the I'll one to and -- sort follow out I'm that side, two back it's guess, out metrics off quick look maybe at growth little bit we year a went we ask up, more bit were underlying questions little guess into point. last impacting results were a as

you the for question. thank Darren, much so

customers. what to customers. spending I've by then time see the frustrated from actually lot that wants our one where And clear not them. me point the of to with a saying solutions since joined, Let was Marqeta is I delivering And been hear fewer from start what more everybody thing I ever Marqeta full came I our

great set. So there's market product

want also to shop money multiple suite management movement a thing and services, shifts and want that they fintechs want is mean to prepaid, whose suite, business the credit, single and we want product, they bundle. solution. debit, by They want market finance to is companies want they as full program around not a and major banking get that. they want they they they second full financial towards embedded The go a don't They want want actually a over

that's so what And we offer.

going power are everywhere. we're see forward. going that effectively fintechs the the going that finance we I is say anywhere. So mean or not to engine that. going think I would line They're what that's just And

something to healthier scale. your a be all question. we to that's the continue then just reach you are every point areas. not to In focus things words, turn customers we look, reach, It's time, customers of profitability. We as But committed is So to is and processes do. and and these we're well, teams put operational incrementalism. committed scale over once become, company something that repeatable it second you our vanity the other lead and innovate profitability, extremely we're don't on We to put for of sustainable in metric, scale I'll on excellence in the focus we it we terms succumb a become. at to that healthy put ourselves, it important profitable because some our in function at healthier to Mike

Yes.

kind isolate the some the, for to Dan, factors. of of So,

in So couple a things of mind. to keep

just buy are you're to So to pay have come XXXX. at that when our in factors just impacting what's first now, unique numbers later, is QX we some looking indicative

will some And from just an have our which the So we customers, of acceleration incredible we then in lap one QX we ‘XX. loss during also lapping of from XXXX. season of are program volume holiday use in one BNPL

BNPL significantly. so and course, of aside, grows if take with happening you Block, And very which what's

company One in quarter BNPL is the Block is gross the in the our our faster outside total mentioned quarter, profit was than I XX%. which of and that Xx growing growth things of growth

on. the think growing of XX%. rest is gross than shows that faster the is business business the the trajectory profit So rest that of you And the we

of what's although nature our driving that The comment just and for is and and grow focus it on and continues gross given fast think gross and But is revenue I up it the second too, to use to why ultimately would Block margin the lower margin the to their cash I to It's case. is concentration. just you fast, incremental on weighs for if Block really particularly on not this matters also that it as business, grow quarter, us, profit business maybe profitability. because app, continues hear it's me, size thing is it on path their another continues still growth business, and as margin, our you profit spending more and example, which important take what our business X.X increase

we also that into next think And so that is positive going year. is something a

things, And the factors. would of those so the you that isolate some guess, help I are two

the five of gross in again, over profit resetting little XXXX. growth approximately points just reiterate, issue is our incentives a to or the Visa with And

from Ashwin with Citi. Shirvaikar question Next comes

build overall to out year? Hey, expect would information to you. to be assumptions wanted as can macro about a Mike. Hi, you the model, Simon. we anything on year. renewal this sign a no Block, or do is great. regards also Thank underlying just assumption renewal simplifying assumption this I great. the genuinely ask not sort that incremental with that try the Any to you clarify, Then comment would of provide there of be Is to the

the first assumptions. about and macro Simon. take to question. This Mike Ashwin. then off part is I'll the Thanks hand the for

be to So in Block partnership confident terms renewal, year. able renew will highly we of this that we're the

we also the of first them one stems mean, partners is random team's consumer event. on their have confidence It of I leveraging the a So the cash that I excellence focus relentless degree delivering we a app success result a And agreements is but like ourselves. things. go not value confidence high couple is the our and and of renew through year. will XXXX say this do from

symbiotic. Our very relationship is

to I have So we that is the The right. not timing timing, continue. something that on issue do confidence is full the expect

hence the it So is so couple more week, want until is on And deal we and months? so that next information. have forth. it to renewed share a we why we in So wait of

So want land. don't in speculation we be to

approach of So the right. it's a why the high, in of that's renewal. terms cautious a renewal, we're very around confidence But taking more

I speaking, what we're you've Yes. sure And we're that companies. quite does is from little up there, and are and spending well right, out it payment guess in There credit holding other heard some seen is spend the I'm which within then consumers bit, tightening it on the some spending so macro Generally seeing players what signs growth. impact a assumptions both many businesses. first seeing on have are and is generally you've BNPL payment

it's would expense but of at I management, to say minor starting a we this bit see point. impact Within the little there, are relatively

business as a what so year we progresses. the in consumer slowdown spending modest assuming is And are and

QX. we So holding in what's signs expectations up summer. we as a get look there for right reflected February we still happen lot out, to things now are we can what is what which and are of most the of right, conflicting guess is But what's through see further spring going I of are as into

little to flexibility. just, see And point have so gotten more what's guess bearish I stay And cautious just to just guess flexible. not one happen we'll we've on macroeconomically bit but and wait and been, have going that I and a related to

example of to wait the an XXXX, some that with trying are we year, making is back example, For a maintain as most to which we and from macroeconomic of of of are half flexibility see in in hires low, number where them the perspective. just the what relatively happens are

with William Blair. Next question comes Napoli from Bob

Thank afternoon. you. Good

thoughts are this put out what there So, Simon, the growth business for what rate during maybe is? some, The the that on your just right target model IPO. was operating

around kind color can driving. Finance, Mike, on Just revenue in growth the that the or And that model? your and growth any you rate is operating very what you give a thoughts if your of any Thank Power confidence target of company much.

sustainable would for the question. I'll Bob, kind And aiming we're profitable you of growth. what consider Thanks, as something give my and for. philosophy that's I

company is So the building That's and XX% for a consider gross I a as that the to then we're XX%. something in we're the that’s the of that's XX% profit And organization. healthy aiming above growth of would in team, EBITDA company kind towards. committed and and management we're in type

the aiming tied and profit any numbers. So plan growth concentration it's EBITDA year-over-year it's tied also team, as team, a and envelope to But management at XX% renewal, management comment. be internally the gross for we deliver norm. as Block, we but given have to we'll of to growth, of XX% kind a the to Block with scale a able sustainable we're just Mike, that that in is have backup a look kind would that a

actually of our insignificant bringing has mode, terms February, Power customers they're a positive. into in as the a in the few and And impact really beginning there of on all Power is very gross profit. of and we revenue really business beta then which impact see of the a as

when in on So number. product roadmap. really what are remember, we past, had but the may focused is wild, cards as acquisitions our a we've the in they accelerating small you relatively And talked about

don't already us because bring credit engaged to an We acquisition in sort who the of to with sales in would pipeline all players the want major need are interested we be ecosystem.

with So good bringing is is the our is what technology, a fit which very platform. Power

a that business fresh the start kind migrations we're actually So because in as we on integrated saw were business We maintaining integrating. once while really this they is don't and we very positive to customer of in the QX. have can early focus case

what's really to in will integrate gross driven going be minimal. which So the be quite revenue profit we and is after QX,

for and On side, were expenses to the percentage our the expect points by growth also again, increase we expense relatively just year. It's so early. the they two small about

we So it's again number small relatively a business. as integrate the

Credit Chiodo Timothy Suisse. from Next question comes with

least been negotiation a do the could question. then, gross we a we can I for light bring be in hoping taking look I was happened generally. what's been that but Great, last a services large look in that app. more and to could more and topic important that peer that peer maybe When of customer. and XXXX increased with been into part one to of it hasn't that has you've And investor there the to able back been it Block, able you've that I with more app you at thank observe. change. and change, a has been of to deliver for was rates applied but you've some to drastic evolved take comes back trend, additional no just margins banking the platform there has discussions think since at guess bring to could up value to reason you drastic slight Sure, I downward services attach at this examples was there's a hoping able deliver life as we cash the to been you of and

around very, team are years working the is powering I to but say Block that's because we've introduced of banking has additions. There more services many actually services, cannot features have of around over this with that acquisition. for Tim, question. very and more and been And something I adding much are We quite Afterpay disclose, the say Block say past thanks some and for Cash the couple BNPL Thanks they few. the there that a Simon. closely And those would

There's confidence Cash that something would you we prefer So I'll to general that's an many say, have share work excited team particular. I we in. Block to that very those. the area great point many, towards, BNPL in I'd others, and are Block but to in And as with

Barclays. with comes question El-Assal Next from Ramsey

for your behind the on bookings year little level to you ask ask kind to confidence you. thank wanted my about taking bookings this Hi, you is I faced that evening. that further question you and last comment issue a headwind of

more what's thinking whether you I'm shifting about a handle pretty fintech to environment of sort making on traditional from feel like at to cloudier Specifically, the or you not curious visibility demand customers I'm bit if come point. a just good that's more little customers. this got

Thank you, doesn't. question. Ramsey, it Actually, for the

we don't like practice, at the basis daily put strong very look a and basis, look on a weekly what sales snapshot. as a hawks and you discipline at pipeline I and we always say together So enterprise a

we at You trajectory. time the what delivered August-September methods in in always the frame, look And we pretty close in QX. and have to place have that's we put were

there's is giving are three actually things One how the So pipeline us forward. that the confidence. is moving

and is reps that also have discussion the diversity on management the from the our we're segment breadth, use So in terms are coming after means confidence customers, market top cases of of the that which levels, our putting the coming us.

that of demand. nature global the one, third the And

market is want versus OpEx an we're lot isolated with. our tighter hence second year to vendors our want product saying, is and solution. to prospects number coming because changing our of work hey, a points broad we reduce the thing I'd a are customers of to And us that strategy that the to our thinking say fit So and and this and we

because We more want basis. us you can you on have more you global and support from a

is of some demand shifting So to that actually us.

stitching actually end. solutions they together their lot players, of or these all partners from spending their a put other and versus that all innovating and customers on solutions our themselves Marqeta many energy together found So

things. of believe I three a So is do combination that there

First account one based and quality, hygiene is management marketing. and pipeline enterprise

And that It's actually we're itself. demand been The not of second but one is to type see solutions that that that last market. seeing. least, invigorating to demand the right has address packaged the

Ramsey, just, I'll that I’ll I additional add are important. two think things just

because well-funded shifting is to base. is what it existing have of smaller of bigger as that but So shifting, market about organizations is much sooner us their the is that very to come maybe as that it's that describing, large from user fintechs ambitions you're beneficial one sort could larger

very And coming is aligns for because our highly huge as the a so customers modern, of of big that fact benefit combination types The scale configurable is our way. platform scale customers shifts large kind are the delivering that proven the who with our our benefit. market better and of a

strong, second hinted pace but seeing we're I is would not only that say really thing continue. that seeing The my I remarks guess least we're months, first in prepared was briefly through two QX that QX also the at

now pace. So confident we're we're ship, And direction quite will. you if at very We've that. right moving the a the sort much rapid of in turned

from comes Stanley. question James Next Faucette with Morgan

programs Block kind that during just on of acceleration actually year new what renewal just of the have about your be Hey. once said then I get year. outlook year some more XXXX asked is can the we Mike, your Good later customers financials renewal you're should this a there see new once the fintechs, talk and where wins for Is bit this trying of and all just from programs programs, together. a based we you afternoon. there's this beyond first to talking those confidence gauge within variance I show of and this back wanted Would time is questions may know the again et necessarily you current to follow a potential impact that been they understand that that position are the assumption about just looking cetera of course ability on those couple but with in up you perspective the I'm of on have that not and Thanks. any established to lot year? to then on companies be with of at your likely sort little wondering if maturity

one, James. quickly then your it to over Simon. first Thanks answer I'll hand

and expectations I XXXX a not to renewal. the, the guess have related specifically Block any our the for shared we do projections impact yes, So,

place and want mentioned, we, not that the have because deal that the existing is in we But to place. speculate we guess, a is now, we in And course, So are the don't XXXX. end that we is in I assumed hope remains as that the that what case done have I contract contract of current time. through for is assuming that of

Cool.

In and our that in James, I'd say new I'll role expect, I'd them. are from of we're demand say sustained cases and kind terms on the there explain focused of customers, we multiple use

first very co brands distribution. consumer retailers have So the is brand, say wide that from or I'd brands one specific,

traditional So loyalty stream. new do loyalty play, the want a and they revenue the play,

our for that. is ideal and So solution

coming extremely gig The lot win second and early a and use disbursement and we're especially wage is wage case workers. that with to well access, shift is up positioned

that's case in And a flexible in One which short free the marketplaces. virtual card and account two is payment creating capital. then interest strong. So labor period order more. stable, there's another very the a rates settle to on of use That's rising is working given a time

a bring call last culturally at in least, is trying that mechanism, point highly I point sale BNPL in which broader but this NV, call not is everybody to I it the innovative And but of it to manner. a but of looking sale accepted payments and solution. lending, is which installment

underwrite a and and don't code actually a paperwork, to swipe need transaction. you You scan just snap, don't you need send to take lawn, you QR the you that

And at cases that solution use see for. us. say, coming four demands all made those from, our coming the I'd actually So fast four on are, we is

Andrew Next with Truist. from question comes Jeffrey

the the And Hi. go-to-market now It's to we've -- that's embedded more you on you kind being compete of the point or there for wonder, issuing just know a I hear about the transition some just card if think I little shift more like how evolved of bit little of feels full-fledged interesting a wonder of is you going market. how do? to is but a like bit there Appreciate credit platform business. philosophically, seen And discussion it's in I to maybe finance that. cultural mentioned the the is company. the finer almost the you just you taking verticals, of modern a bookings, is I Simon, but think feel to sort XQ what that you business. ramping in think question that in from put terms this complete? is of Obviously, a it work help,

thank say Andrew, a great the I you question, it's shift. question. wouldn't and for philosophical

I choice. think operational an it's

use financial everywhere that do So of services. is services and relationship EBITDA. employees we, in these very honestly, experience. a market gone entity for has that example. embedded companies and success the And be of I'd cases another and a control its lot already, a brands And because it's to contractors, want would money want its their an the entity lot embedded flow. shifting or Co between Again, of them they achieves pure itself and it's were I But again, cases. that many we there's say use of the embedded we've say the Marqeta proud we're their powered brand in lot helped, the finance,

new revenue a So it's stream.

well do we're So positioned to very that.

the terms themes, it the let's we've complete in ownership So itself, we leader, way module we relationship. of from into is by sector of shift all modular the prospecting the went when and that sector reorganize managing to given say,

sit account develop but develop and expert they expertise, who's in an ability usually partnerships, they solutions. put So they not a an with to also, develop fintech down those together customer

shift, led it's us succeeding an in shift cultural to So a that has operational this it's space. not

somebody Marqeta thing is. the API is, comprehensive so completed of addition that definition, credit, market the second by Marqeta that's is the solution. We're first, the how we could And else's to with us technology. into because the came dwell and

was was a is to to what happened. that puck standing be what honestly, and analogy, want I So if use Marqeta hockey the I think going

teleconference. Thank concludes today's and Q&A This you. today's session

at your this you participation. Thank You lines disconnect may for time. your