Marqeta (MQ) 7 May 242024 Q1 Earnings call transcript

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Marqeta First Quarter 2024 Earnings Conference Call. [Operator Instructions] 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. Thank you, and you may 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 are as release Mike GAAP and measures Khalaf, call the measures today's supplemental These or are call which should on Marqeta's Investor to Simon like over in earnings call Relations With measures. today's Hosting can CEO; materials, addition, our and Reconciliations that, be measures. financial a considered be CFO. directly Milotich, website. not press the found turn to Marketa's includes comparable available I'd In release Simon to begin. to earnings most GAAP to supplement substitute non-GAAP today's a for

Call. for thank Stacey, you, for First XXXX you and us Thank Marqeta's Quarter joining Earnings

we customers volumes the of platform. strong quarter, milestone a expectations. outpacing QX, growth built revenue, company. the compared XXXX XX% results for increase We Our of a with first processed depth is how we over in speaks the the a profit leading demonstrate to to Marqeta new billion existing adjusted TPV, started day significant first TPV billion the $X XXXX. we volume and with in same and $XX In quarter gross had Marqeta year where Total to the foundation strong or in net was strength EBITDA and processing quarter and the

million Cash the of a $XXX points our pricing. revenue revenue related contraction renewal QX profit decrease the change was of contract to to percentage a versus catch-up due million Gross contracted presentation renewal. net in from XX% XXXX, Our which App the the in of included $XX year-over-year, XX primarily quarter, X% quarter

gross the Our margin was XX%. for quarter

decline $X positive XXXX was efficiencies. Our in non-GAAP operating million year-over-year $XX of quarter, restructuring adjusted operational million, XX% indeed. adjusted the to and EBITDA in quarter. expenses a in resulted QX were our solid QX a due This a

First pay to accelerated on and started and the off. gross focus converting XXXX relentless to in profit foremost, them our late are we bookings starting

Republic million due card highly people to waiting million X for leading For uses late power Marqeta signed a our innovation and Trade that card X geographic and example, expansion. reliably we few platform and consumer XX customers in The a with easy customers deliver their XXXX. debit joined new Europe's Trade headquartered to broker to in an Marqeta Germany. combines the for chose in savings largest company and launched Republic savings spending program is just ability weeks. Trade Republic innovative innovative Over markets. across the list

and revolving XX% all and been flexible U.S. has Also, up The Uber Second, South budgeting spending credit, options Latin cash open is to into to that Klarna expanding Eats on new number X, Canada addition into Klarna and markets card built of recommendations offering our bringing payment to and users. expanded to provides scaling with in no launching Klarna's app focus us announced to the continue Florida served. we and America, with customers, with and Australia, recently back. customers. existing personalized

growing are take namely services Marqeta customers management fintechs, management only with program deep chose with to in-house expertise. our and Beyond of leveraging requirements regulatory associated complexity reverse geographical customers, and scale. to our by Previously, our program the later given and other several payments expansion, course

Marqeta ease Now customers burden. operational to amount a significant look of to many

During the existing our and/or about program first our like from quarter, compliance customers XX and programs added services XD Secure. optional of products management disputes, reporting

don't forward, level selling competitors do Many the want particular, differentiator of we work themselves, will especially this prospective believe we expertise when key offer service economies have Going our and of the scale. compliance-related and a services, and same of not platform. be in do point many for customers advantage both to

also programs as previously or our right opportunities the access for we're wage like AWA. accelerated us, the While significant a priority, market on $X top booked focused ramping before embedded finance trillion

we As our opportunity, and distribution increase tremendous working partners reach multiple this we're with our offering. to look to capture expand

we like seen we've Uber other give Hilton, market. relationship value include adopters for to uses announced that employee a over customer approaching Marqeta and customers and from with provider what has new fronts. with we're integrating to come finance, global bring from Rain on control channels solution benefits financial determine While Walmart's delivers X One tremendous brings help early Bell, April, acumen Rain's a brands broader large McDonald's, earned. payroll growth payroll greater our like that technology wellness companies multiple to and the Rain, employees our finances. In to along the Taco withholdings technology Marriott. proper This their providers the

for which Rain Rain including Marqeta AWA solution power. will First, offer spending a the will card, employers, plug-and-play

of and a rain the that in the solution combines state. end more payroll Second, issuing a we're achieving our seamlessly acumen offer to experience, that is significant in and step reliability partnership comprehensive scale specialists and with working card AWA AWA technology modern

with with wage marketplace brings me labor accelerated important few offering market opportunity is This next the we the marketplaces, labor working workers. to approaching by with access live shift way for an is in a Another go months. announced stated like deal the to point. WorkWhile, This

marketplaces, wage offering accelerated embedded of labor access customers, is finance beginning especially the our of many only For journey. that

a wage for accelerated workforce of that tight increase solution their part labor believe comprehensive in they is retention market. to neobanking this access fact, In

trend. and such us We us these all to including As credit the year of banking our result, on personalization conversions event, the been summary, We has seeing merchants. last are to payment integrated deliver rather the addition experience broader money capitalize extremely and spectrum global starting results. personalized installment believe isolated across options, a pay which revolver of trend, strong the a not believe as and platform, services a is strengthened that customers coming consumers laid year movement. giving financial conversion additional of this debit, that an with but we're part this for and to over position start with In and we foundation well solid

finance Our revamped customers off traction. sales as new gain the pay efforts are embedded beginning to

In base to with addition, platform. continues testament our existing customer a the to expand our from us value get strong they

step it Mike, Chairman month decision Jason mention the position. as years to down over to the hand must of company, next Garden's I I Before Executive after X.X in

the on and As his significantly creation Jason he over persistence always creation. value. that maximize been in the growth is shareholder just to Mike years, longer this contributed the we company Executive changes towards governance business. profitable contribute felt tradition, sustainable, touch He required made and focused provided. our value the shareholder, the can long-term we no role and the company upon XX where latest largest late will Jason for to have which comments. support Since value ongoing continues has XXXX, has His as evolve that strive to this his chapter mature past in Chairman

platform his of role Marqeta to member focus am agenda. Board plans Innovation on forward, with massive and capabilities Payments ahead of new I to the you, Board's Over as rest oversee acceleration work the market Jason Board Marqeta's going embedded opportunities growth. our excited a Albin finance to Mike. the the the and As the of of at Chair Jason innovation Committee,

everyone. afternoon, Thank you, Simon, and good

year gains revenue Our to our QX expected the those in and all volume to to network later outperformed benefit of represent growth discuss TPV broad-based of drove will expectations. high net due profit start with a the results on-demand which services. of outperformance, BNPL, Gross additional I the more in range. our incentives, end exceeding capturing and financial meaningfully stronger-than-expected detail. delivery our The metrics grew TBV strong particularly XX% key with

grew execution the merchant line growing driven quarter, our particularly with by X in card continued digits, faster geographies. from of XX% technology resonate in on-demand quarter. on TPV million customers overall quarter-over-quarter our combined of billion, coupled the par growth. growth profit solutions second the than wage our straight company gross faster with Expense streamlining growth of grew Later approximately to vertical On-demand had TPV the categories solutions. led Pay performance higher overall Now, year-over-year continued mainly BNPL efficiency which fourth some with straight new and company XX Buy grew last financial delivery accelerating years. our anywhere the our our costs, of the of to quarter. into $XX adoption including QX in for Non-Block with with the in to remained growth Lending, consumers. the accelerated highest continues expanded double $X as was top the the than overall company, when services increase management Finally, The customers of neobanking due adjusted EBITDA delivery strong as pay customers access points for initiatives, TBV QX higher accelerated Block significantly a customers.

customers these follows: on resulting significant been most have solely impact revenue key elements diversification presentation million, share as XX the of competitor the of the renewal. year-over-year. cash from volume The revenue was our past. increasing one the contraction $XXX in headwind with their The our XX% after fact, platform most net a In growth net platform results change seeking was of the a to revenue are the of related point QX

before, bank percentage due primary cost 'XX, network fees net impact approximately Cash in with App's There points to Cash volume, $X pricing shared We we additional accelerated against impact contemplated partner points these rate renewal related lap This approximately Cash agreement included million, renewal as reduced to agreement lowering this revenue renewals. quarter-over-quarter went net growth and our revenue not renegotiated partner this costs in revenue. a was previously revenue we payment some platform Non-Block to revenue. this gross when the described renewal, impacts Starting we've XXXX App Cash pricing. QX change associated quarter. of in to pricing additional revenue the impact App revenue, effect App revenue presentation passed our and netted were made of Cash is last terms Based but is with Cash through There revenue this the which was one are quarter. As not network presentation to in decline XX App. App savings proportional by related an we The into of was QX X expectations year presentation the we the X net growth February. changes in on our growth last points. profit. Due by reduced the the prior year, that

We contributions broad Block outperformance access. expansion, net continue concentration fast-growing to other from see points such customers with X on combined in QX, decline our larger work increased BNPL, as cards, wage PayMe particularly in platform, from concentration and on-demand decreasing The XX% neobanking is delivery accelerated helped category revenue the was customers. solutions QX. from by

top Excluding XX% by net Block, XX revenue year-over-year. customers our increased

million, gross primarily Our point quarter across incentive from in of simplest a In seasonality typically case profit during higher quarters TPV to the terms, of due QX of points the gross of couple days to expectations XX incentives. our last April. trajectory stronger partner network $XX in due of X take over rate. the net as of season higher outperforming particular, revenue reset networks quarter quarter, mix incentive XX%, was generating has rate multiple declined profit led our our we for holiday a margin profit this tiers the take benefit to the in another our a reached basis TPV tier, final the benefit. gross one In last the the before

the our incentive quarter contracted X March, basis, results network gross QX our QX being run contracts On being our profit largest reminder, year-over-year a lowest. and a highest in to April X%. incentive As which

gross While percentage profit gross profit are to growth newer to renewal The by we cohorts contribute, gross see renewals Cash profit begin mid-XXs starting App continue weigh on points. the growth. lowered higher to

revenue do the reminder, presentation not gross Cash App profit. impact changes a As

growth helped XXXX QX. the by lowered in renewals of half will won't In addition, is between The digits. impact renewals QX by which this driven anniversary growth points, the profit XXXX, impact by remaining incentives. Roughly X by which Square by QX. although gross renewal, accelerated quarter-over-quarter QX mid-single the until is completed and Non-Block driven lap higher

were was with QX gross year-over-year take operating efficiency in last professional year initiatives adjusted service XX% expenses May basis quarters. and our to from due decrease consistent restructuring expenses. X savings Our of and million, technology XX our realized a profit last rate $XX points, the targeting

to We operations expenses basis, $XXX and we average while due expense sequential tend $X.X opportunities services, a buyback find $XX the QX to well timing a driven We in the shares adjusted $XX QX quarter-over-quarter, the positive purchased of as by to quarter continue income our loss The product largely related On of resulting and cash execution million fees QX, of to and million exhausted million of for margin billion million, Within a $X.XX the announced a continued maintaining quarter, in net GAAP assessments. elevated decrease optimize shrank reliability. X.X security price high interest $XX.X was In acquisition. due be Interest was authorization of million. to noncash professional to higher the an X% rates. as in Power EBITDA short-term including post-combination $XX $X investments. with May was at audit million, in X%. million, QX which XXXX. ended we

Now to QX our outlook. full let's and year shift

the contract to We revenue we current the of expect renewal. gross the between This the year app expectations QX percentage the have quarter the we Consistent contract with and expectations we partnership. last seen our revenue line to exception renegotiated with our expected presentation little quarters, QX last what between a point impact net with X%, a to have start is negative related in and profit X% X-point is impact shared the in better cash X platform trajectory. of the to XX%. than XX XX assumed at based of on XX%

expected is tiers be our adjusted start This profit our QX are from to as largest margin the our expected single the X expenses operating in also profit with partners lap we digits X% to initiatives, April. QX May. the at X as gross always adjusted at to optimization our Therefore, expect in of incentive be enhance in reset lowest low every gross but our is than the and network mid-XXs EBITDA We margin the due the of reinvest last will in restructuring to network of better better start Therefore, year headcount expectations platform to expectations the than the we growth QX our support to points resiliency customers. continue range, is to our start grow to quarter. scaled negative X% year. low to

network of the of final EBITDA quarter, be negative quarter this we in to Although expect move adjusted as macroeconomic reset growth. barring we unforeseen profitable on our to events, forward EBITDA our the incentives path sustainable lead negative our will adjusted

is net which by X-point Our reduction driven gross neither XX%. from expectations shared X This for growth. the while what to revenue and X- a unchanged have to revenue XXXX contract largely was factors, to full impactful now for profit. previously, gross reducing adjusted year of are increased We expect net EBITDA remains XX% profit to

revenue the to X.X points the year. approximately for platform the partnership impact First, presentation renegotiated related is

have by Second, approximately we gross to grow be mix will Gross toward lower X the heavily the revenue our now has now on of expect that but of was the first profit incentive to the X%, way helping net previously. impact TPV more profit what to the to by profit lesser TPV the majority revenue impacts growth, range bottom QX are gross a Marqeta profit. half contracts QX gross specific our a is to business, are year-to-date of incentives growth from the of much been little which expected structured. because has Powered This materially point. related lifting X% but upside the weighted we the shared stronger,

Our we to our of expectations gross profit in highlight growth at expectations XX% our for for second why gross profit the as measure These remained value deliver now and gross profit customers. half on we XX%. the unchanged revenue net for focus changes

our be X%. the QX and exception. Our expect X cost year We business adjusted EBITDA positive with our success positive presentation. being raising noisy margin our our Based to X% full out adjusted of X based still mix revenue for and revenue on in EBITDA we continued net can initiatives, quarters to XXXX are efficiency optimization on with

we Before wanted wrap of up, address stock-based I our the Jason's Executive to step compensation election impact to and as Chairman. down

deployment thoughtful last more of we our compensation below As year, our we late X%. Investor are stock-based in and target discussed a being managing during Day dilution to of are

time discipline to our the prior take but increased We of our grants will due are from meet years. stock-based target vesting to our in for to track XXXX, it on impact compensation

of the achievement price award, which is consists several hurdles past vest from For stock tranches our to for long-term driven ranging of stock-based quarters, of pre-IPO by approximately X the equal $XXX. compensation Jason's performance XX% that $XX the accounting company upon

award this compensation requirements Jason's be award in QX. Chairman. him from Executive Therefore, the resulting stock-based the with reversal resorting or as in a to million previously the expenses. to were Executive $XXX the the very step occur This June, will benefit service onetime to earned, reversal decision and role specific CEO of included it For transition forfeiting in down recognized Chairman

from year. will compensation In million expense what by stock-based million compensation addition, also XXXX we expense XXXX start our was the our of have that will This by this QX $XX the lower this of change no million. $XXX at QX of expected we to booked year. longer stock-based lower $XX compared will to would Therefore,

loss income over not substantially this net the our profitability, sustained next income timing the change of While years. X net reduce does does it

due reaching last going XXXX breakeven again this accounting XXXX expect to late in before income now exiting laid forfeiture we in as and sustained true of out be negative we to year. Day to the fact, positive our profitability around net XXXX slightly In Investor then

convert of Class B addition, basis. another Therefore, shares program A to to a In Jason Class shares its $XXX of up voluntarily our elected has to a share Board has one-for-one repurchase portion million. on authorized

current to this limited market to our being manage sheet valuation with at reflect While to for a term. we outstanding to innovation and deliver differentiated discipline offering generate profitability opportunity we current will XX business. In This performance at to over stock believe solid reflect the Once results the the and last believe not as our business to of of what attractive our path commit long to continue we growth, we we not to strong the valuation and expense that shares lap burn, and our impacts and the half reduce cash Cash we in second are are starting the have continuing comprehensive make we built continue financial the in to is growth, ready sustainable momentum App we've systematic conclusion, properly months the does buyer forward, renewal and our opportunity, beyond. combined our program QX, profitable metrics instilled our end with XXXX a our our sustainable balance great trajectory. buyback true begin going XXXX

now the a capture efficiency to expected enhance adjusted the ahead operator is for opportunities continuing to customers. EBITDA over new I for with with time Q&A. first as capabilities turn in XXXX success platform deliver company to our initiatives existing it will and the immense Our positive while to

[Operator Instructions] comes Huang JPMorgan. question first Our with Tien-Tsin from

front. the Any I nicely, up update ask there? year? last did it Any XX%. standpoint? year up changes? on bookings was seeing How to know I you What pipeline are start a just the from wanted

say good. a looking we I'd had And are plan. Things

a way lot 'XX. time and because last number say, I before in us spent it That think of was disclosing I'd is problem behind now. bookings problem year, right 'XX a we

well. the fintech doing both we're in growing finance. as So as terms And well pipeline pipeline, embedded of is really in strongly

So we don't track, I'd say, ahead. slightly

follow-up. my then And just

I processing. management about you're split you side, expense doing Just think on where talked the some

sure one know see I pricing, the of there. case? us but part partners a performance your is of it. Can common some it's share to for just why I'm for you higher did discuss it's assume You that's

changed what there through us you win those jump-off situations. how walk maybe and just So

Yes.

what now. of and can of business. competitive management, I expense think is But area a at offering in that different customers single-use we're value in particularly happens our to And they're lot that more and time, the volume all to faster a and can our our is our comprehensive provide case more look when are see this that commercial there platform when you over be card. growing adding us is we is starting value much what just seeing with

and tribute sought of customers many value we the the and we proposition have obviously depth it's this happen breadth just to a other of So may also the offer. platform would with who our And to like diversity.

question Our Timothy UBS. from next comes with Chiodo

bit hoping spend more was on Rain I time the we partnership. could little a

anything mechanics those You you employer that employers? go you base. do there or mentioned about? Rain's part dig that on, understanding are us Is help some opportunity. network the Really, how Rain on the or alongside of employers? should could Rain of customer Maybe could better you of Are co-marketing we large those that any the you logos there share that into Timing? penetrating revenue think mechanics about

just I'd very spend a to that I'll time Yes, this frame large say that the market. broader on market. is

say gig almost a serve as trillion people. discussed or as that very $X States it I'd Investor well is United they're our distributed And businesses. XX consumers between economy are we gig workers organization, either regional serve the market. And in XX players Day, large As million the in some

to comes the decided given to a customers. from and its the we So our that approach X-tier size take market, requirement

we've taken So workers, of skilled of especially I'd as the them XXXX highly in to direct with end market, say, a where approach or the labor vast that a gig ISVs. high they their force have contractors, majority the

the category Walmart I and put in Ubers So that One.

the segment So that's market. of one

a of a last that shift labor fast. growing the a the That's labor those open market be those of which announced shift market bases company and fast-growing is other marketplaces than would one had shift in hire in worthwhile. rather we goes worker, year their on behalf. The labor segment deals of segment are and market they fill And to marketplaces these and

on third will be large And with such address XXXX as and would tier of as our partnership W-X have forth. they so as workforce. so And the Now related franchisees, a your combination employers that traditional market. well Rain

you into that So systems extremely ISV the Rain and creation logs fast-moving and with specialized as Powered payroll tap can Marqeta. the highly a by the consider right into card flow of debit that's Rain the

So we our between, I those X, go-to-market think feel the good space. say, in about opportunity I'd initiatives,

next Our question comes from Ramsey El-Assal with Barclays.

up access. Maybe into neobanking about and contextualize Tim's on how from interesting the little more how position yourselves benefit maybe I'll to the follow it? into question as can you us earned-wage that type It you on you detail more that Maybe was opportunity can fit give wedge a services.

limited the at because I'd a was there credit lot and very they tight When their of certain services growth offer of the company we're last workforce is could now. the new. and union have. employees by retention. turn this not And of market to labor seeing a started these same Look, is materialize support employer thing emerging the labor a of increase wants number century, say very, the a to employees they to

entity. like employees not actually can applies wage accelerated union access So direct credit a that that of new folks the but are union of think as credit you to

workers can population. or I So access. specifically employees say, for I'll broad do that give to to the and swath new let's access, Like if an I or But bank laborers offer of offer I'm the wage a a wage instant can I you of company, that example. accelerated want

So one paid will immediately. get

a population. XX% U.S. get paid or the The below about days to X other XX one is will bonus anything of actually days

case. almost fintechs to or say just unique services that to financial no business on their on same use what's a finance, focused same all is not and a the embedded space. them. that's everything consumer won us. look the as I'll conversions. Ramsey, So They starting I seeing think They're a in We're focused the from conversion to longer But that conversions creating offering single seeing embedded We're that happen finance.

more benefit So access no than that mean, trend example, wage one provides. that underbanked will accelerated I BNPL from the

commercial obviously, about So a very conversions the sets basis, program right with very, we management revolver, we consumer of consumer side. few credit on side they as because well are including excited these as combined and bought competitive the on installments, can secured now the very, this credit offer solutions pay in extremely are global that on

think we're looking I good So there.

comes question Wolfe Research. with next Darrin Our Peller from

just Listen, bookings. on new

obviously have contributor You back the of over bookings those talked in bought. material for being year already more you've half that the

Just those ramping? seeing with curious we together I'll variance touch Any looking is on pipeline cohorts are like there. on and a regards guys the what little if you on more then credit are how just trending? you ask to the customers could a there And just quick follow-up. maybe and if spend conversion

seeing bit of ahead little is schedule. we're we're far, what a So

also customers a based projected. it the ramp we ramping expected time. these XXXX little takes and then X about faster but than because that it's from are in had revenue of new on a in can or cohorts than And bit $XX we $XX said, little million to next a more quickly for little we we a ramping QX, of, had we coming being a That you and X couple said of million ahead expected imagine, a obviously card early, So launching little program, year. as of bit

little you start months can But to I couple a see generated, schedule. X when bit X, programs first launch, volume guess, the off generate. momentum of we're, value really what X encouraged start, we're real the to of will be of have say, to kind good they months, by kind the after those of a but ahead So what and

say kind which said, And tool I'd usage On as the our customers and the a is top for or about loyal with consumer of focus of do vision funnel, looking just credit I'd tool. the most a a brands established. credit partners the we our on the that have like that particular are that credit have initial versus job not say thinking me side, we're users we good of an hell my lost accounts align like is side. really again, bringing more co-brand on loyal. to and loyalty regain of which one the is addressing the more engagement making on a reason,

expected. exactly we because And market such just it's we And changed real-time marketplaces that commercial fits time, could to of by, platform on performance increase the not the going most it I'd be also strong driven how to basis a that rewards We visibility a real say, credit. and anticipate in commercial So did not our engine side, operates credit have great great small- engagement the it perceive it's aggregator for demand the thing actually in and business. and the in a had better order loyalty. in into of than medium-sized is with

an year, account last businesses just you of example, all of that that small at GDP. only So done to give has for businesses. But went X.X% XX% to lending small JPMorgan our like

very anticipated demand, think I a should think didn't, sign we it's for we us. actually great good but but I this have

with Our Wells Fargo. comes next Bauch question from Andrew

that the I remarks. the you in speak prepared highlighted expense about wanted to management customer

back looking was customer to decided this to other competitors, You said come but that then at one us.

just what extrapolate if there. could So on went you maybe

finance reaching scale, give So part department management payments, is are many simple. start expense there a there Like start you so players that example. There's it I'll adding as bell It's very platform is more look will takes. at invoicing, things. as an of and choice. management features like expense of Marqeta they

to and and management So which management said, all more say, just players of in and the a like expense land, space, see platform seeing do in this the is come your lot as consumer we trend I the can I with space, it's look, have materialize you I us where that need. we're conversion not commercial program

You've that virtual in got relationships I coming Mike that heading all as the to direction. is I'm commodity a And takes that one from, the us mentioned, you. commercial away back or almost card that need. time

conversion So I would trends. attribute these things the to

I'd only Then also from are this it is specifically. that think we benefiting the where thing add issuing focus our I is on is

issuing sophisticated more would so high bigger be and and get very a that's looking service, delivered at reliability and of So a therefore, and different and become bigger, to lot level as our of they capabilities like customers high have at they do remit and something to that competitors a where may and positioned we have. that of have the the business, of focus given breadth capabilities we're therefore, sole on a just focus lot not our broader our well

just third see wanted the to EBITDA to to I in in talk an unison the Nice the adjusted the outperformance positive headwinds coming quarter. in cash quarter the and to end here. EBITDA

headwinds your ramp have guys that think the should we of how the business? ways these of the So margins been about to you as amount you or beyond progress flow-through in invest Meaning we experiencing? EBITDA want in

XX-point a at and be of can our gap. way Once a also thought base we believe profit XXs. off gap normalized we gross we're need business the in our to in the we percent, 'XX of it And in least that expenses The in get about between economies should XX-point and the of grow a growth. gross all to believe profit at be at that lap least platform is that there and and And that pace benefit scale. we digits, 'XX should reaching if our expense growth the we grow our grow a that we've our just starting that's this that low there so XX-plus we about growing double only

see It's and And volume bigger. gap start so doesn't bigger as you'll EBITDA chunks. start comes at in grow that out in. our significant X, when XX-point that you year meaningful It just a keeps to becomes getting business you in growth that gap drip a and look to the and or just pretty

little compound our well probably looking that's terms and costs expenses And we with just and we're we headcount kind like really range, things the to to employee would formula use, base at grow continue single-digit in so at. have of merit specificity, the variable in volume. we high our of because platform we're clip that technology-driven, more get data costs just to we a running X things, Cloud our so tools structure. mid- and those as between assuming to see this of other the get cost increases is we'd And our What as

investing X includes should that have, the capacity it's we where to of matter on anywhere which think how are from, X with enough incrementally say, we to capabilities top of of going growth investment that said be so focused a people on drive then, today. more who be points already investment existing to are over XXX our on And much we And all we've platform. that's additional the platform

business going And are model projecting we that's that forward. the our so

question Our Monness, Gala from Gus next Hardt. with Crespi, comes

there talked making year. coming through XXX the we Last about sparing here on ramps What maybe Marqeta-in-a-box you this of now? in X/X you couple the these days. tangibly happen? about layer the are updates comments. last helping progress I I'll are way And dig We're How of progress that's that down allowing all in in drive penetration down? is one appreciate to can on

team signed. We've attribute to a our and in all engaging of is You're absolutely MSA the process progress, I'll not the these solution Marqeta-in-a-box early made right. the addition solutions lot and when to on in

So way, from in how And a actually like gross we way the focused of Marqeta-in-a-box the the, concrete moves working we've is to last if team, blend that base than I'd cycles. existing not a moment the on touch realizing into And of difference but faster engaging there's the upfront XX%, north huge commercial lot material you much say, least, all look commercial between made expansion the solutions improvement tremendous a reduces more a the on more at this that good thing, as the say made compounds. profit, customer that which throughout whole and consumer, I'd a consumer.

us. know they They've us. worked So with

Our bank partners them. know

have because helping overall, with and that But would I that So improvements us operational say, we are helped made also, our tailwinds expand significant land customers them. we've there's tremendously.

And already couple a the one those the as how that of are they're the program. volume. very several helps as is experienced, because to per not not And run only I the existing quarter. know where card obviously is thing already they very flips comes they already would customers last we've have learning But go. add quickly quarters, They so cards volume move, the had

the realize And so to time collapsing. it is to that that's gross takes something contributing that's also profit

we've more small. we've if this do to able adding without been expenses. extremely one is more And thing it's add operational had I'll them,

it's efficiency. So operational

Deutsche next comes Bank. Our with Bryan Keane question from

I and see you're Eats Canada, right about to It and pipeline big internationally. ask expanded wanted sounds still of about like Uber Is now? what the talk growth in Maybe Europe seeing it TPV. to opportunities international. you us you could just the

focused. we is have So remain but demand look, there to everywhere,

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excited like about we're win-win-win. So because it a it's

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from with Partners. Our next FT Craig Maurer question comes

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could any space update renewed there's FI for you you? If if the in opportunity

Simon the then to second one take it maybe first pass I'll for one. and the

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Bank Our America. Chan next of with Cassie is question from

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one that's dynamic so happening. And that's

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final Our Markgraff KeyBanc Capital from with is Markets. question Alex

right onetime more to ask to you come curious I'm another migration context And wanted of if to the it about the wallet that the or back to at was is anomaly? thinking today? curious, about just maybe mentioned. Marqeta way are in of taking way share broader TPV of other future Just volume share the is around opportunities if Marqeta. or there customers it this What in type a that? management Just think that expense migration

start, then have Simon some Maybe I'll well. Yes. comments and may as

view want I the for space, if can They customer, to in last that to and now a signing of typically, are sign that decide, platform our they and and between solution. card particular, the start they If couple think you management these customers start X expense they're they've customers the capabilities. going which okay, put quarters, providers okay, then offering new than a they're are is as in it going customer on. using they and provider, to types way the they'll but of that I'm one say, been think to more start about maybe diversify doing

split other. the I'm the or XX-XX of XX-XX a served maybe be things was or it before that now, a be types to platforms maybe of I because quarters signing few one I'm are better the deals XX-XX going on lot of so will the And last think

environment, is type customers really growing rates. year. in growing percentage companies a are space XX-plus many are XX, These growing a X%, these companies where it So of quite XX, growth not particularly quickly. XX% dynamic this are These

terms be that they on bringing they're volume decide of share in additional impactful volume, that the as much to capture. can so And we put where pretty

second as if of increase consistent can reliability and rather We platform thinking that you're you think greater lead and become that do quite becomes serve a and as program and engagement, you're talked greater as in I attractive And of well we it players that that on are player we the so our reliability get up because our ahead looking management is nature space. us what focus in even to as our as look more terms maybe then in attractive we is capabilities who the an question, the focus than Simon about, really scale. co-brand to believe over time. focused just terms should help to your loyalty or big, expense should the comprehensive larger to deliver, we of of

benefit position but time also will more course, on. as of way, we along that should competitors, goes new be there more the us our think and So

lot is thinking is we debit actually are I'll this. many debit customers net the distributed credit. that come even Yes. okay, were the what or Alex, among going that about only credit, volume But comes disposition saying, it add big a guys you XX all that, are And debit to relationship of either providers. prepaid of on when or a to on differentiator. have or could to focused credit them they've Like their win to us the

international The expansion. second thing is

be can't a we're EU only an or you consistent where a experience in So seeing U.S.-only globe. across this market the

while well. So taken distributed and requirements it gets volume, processing complicated own very on them. scale their as with it helping as and they customers scale say their and those us And expensive they have thing as requirements are operational last I'd could our look, their grow their The regulatory up. is,

the So I'd significantly scale that makes volume us look, the, or economy accomplish. better want they're call your you hopping the I'm or whatever say, bringing distribution to saying, it, And your it than to platform. and diversification of back is harder mine so distributing to on

I benefiting winners it's So all, the more, from all are and us. winning in think looking good for we

conference. today's concludes This

and lines You at your may time, we this thank disconnect your you participation. for