Marqeta (MQ) 4 Nov 242024 Q3 Earnings call transcript

Ladies and gentlemen, greetings, and welcome to the Marqeta Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Stacey Finerman, Vice President of Investor Relations. Please go ahead.

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 Michael 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 Marqeta's includes comparable available I'd In release Simon to begin. to earnings most GAAP to supplement substitute non-GAAP today's a for

payments, ground, address business we're our Call. level, growth our business reduction results are for high thank will expectations. Stacy, strong. at QX solid you, to in and for progress on help last, Third discuss making by XXXX you and the our us fundamentals QX the followed I is in Thank Marqeta's Quarter first and Marqeta's briefly joining transform Earnings a

demonstrated the third a the business XXXX. adjusted Cash positive as a lapped they And of trajectory compared more now App gross our and XX% give was EBITDA the Total $XX or same processing profit, third quarter, accurate the increase volume, net view in of as quarter's renewal. TPV, revenue, year-over-year quarter We gains. a result, have billion to

million Our increased year-over-year. $XX of comparable quarter, of the in a XX% of XXXX. net Gross revenue the versus growth profit the in quarter $XXX XX% million was quarter

operating adjusted $XX profit representing year-over-year, EBITDA the Our non-GAAP adjusted in million, gross resulted X% significantly an quarter. million increase $X were rate. expenses a of our This growth below in

previous the gained its acquiring started issuer a Now of let to me great X operate. where momentum innovators, transformation Despite worlds, transition, from migrate simplifies accelerate accelerate has complexity can aligns platform, our migration, to processing scale of the believe transformation in capability volume products. smooth upgrading modernization than a shift numbered from portfolio X time shift and migration this main we the system to from shift This the a minimizing the issuer to still transition is trusted as made, can in in that includes components: platform an and combined transforms X% progress long-term we about financial we only our disruption to We benefit driving solution the ability modern the side shift new best status markets to accounts and the Marqeta's the And well as the a days the and payments. but more increased more this for tool ally are Marqeta's is financial ensure on modern transition. early time shift to in reducing card currently as recently overall talk do but processors secular years. the enables. operational last to on record of consumers the a automated a the processes this There's for we businesses ago companies program reduce portfolios reduce Marqeta payments The capability launched side our about complex onto are platform, and to stages. list of decade processing We platform transition. allows value. and to the and in capabilities more programs value. want smooth to with and allowing This services. have competitor as both the during there track We're the data existing that customers product quo card platform The

optimized scaling shift years we positive. our way into current when BNPL. regulatory regulations in them done prebuilt banking program unique in is leveraging mind. Sweden, integrating payments and of of adopting apps accelerate to customers especially buy and inside also an this strong fact, Branch in later, the payment feedback blend seamless to experiences mid-XXXX. year. the excited keeping or capability helping engagement. We're and specific in delivered announced particularly these connect wallets, to delivering us straightforward expertise, the week, Flex relationships greater their ago, serves how plan UX BNPL This toolkit, supports additional to Affirm, sale. the many X and landscape. point cards banks has within exemplified also the with BNPL. participation across showcasing been branded Germany, participate Klarna, solution. of fewer expanded customers a our Klarna We're Millions to to was drive in changed distribution provided Marqeta's Flex, expand programs. card manner with QX gather millions will the create the payment rich The their experiences of In and payment have to regulatory build Klarna the options cards, environment our the UI a consumers of BNPL partners and the It by of Marqeta softer participation similar to in choice. of been we Last in these compliance-forwarded embedded by in season. Many market customers our the best this further users existing enabling With as addressable in Also, a with directly and the of to merchants Marqeta to customers where overall with services and experience Flex, banks where the holiday credit for enhances ways expected? next scale climate, that for customers approach guidance enjoy the is innovation resources. and expands and have to card recently new in meeting that last Marqeta as out finance point BNPL we create migration amongst for and plan after the giving manage why of APIs. the great development to to the their Klarna's want resilience U.K. are about new roll have that from This modern virtual Klarna of stability, year, the programs pay existing proof needs transition We as and flow. new the we BNPL successful in extremely than providers powering can using to personalized the This other the payment issuing cards the for now bring We customers, distribution toolkit. toolkit We're already smaller be progress, features October starting further of apps needed ahead payment inside In vetted now, money Well, order need a single-use revolutionizes completed options functionality. with With by customers' templates products surfacing their own customers meantime, success allows a solution BNPL use Marqeta by BNPL's when eliminating modern UX all want and the of earlier BNPL debit a of Together, into comprehensive this project migration a valuable the Marqeta-powered the set to launch enables experience. release offering technology components access the even front-end with new

we investments program management particular. us long invested in and term We company, positioned these the in especially medium our this general services increase compliance have in believe and around that finance. most a and As platform, change and embedded well anticipated in the in

increase scrutiny operational rigor XXXX aggravated and the Marqeta's However, onboarding by incremental into bookings we we in programs increased new to compliance for average, have bank more programs. These both from first new launching the as delays our bank's been the half additional partners on time XXXX, delays the from and XX% burden grew in and increased XX% that this new On these new in and least to The demand quarters at we in programs launching teams. of agile the underestimated launch expect also translated XXXX. to remain become changes environment. and X made and

will in few ramp months. gross profit a these volume industry, delays Given pushed cause the standard be for time out and programs to our

Now already the implications, with approach a we taking signed. we're to more complete understanding a of the have programs ramping more holistic

to standardized signing banks We choices add support. customers making processes open while we for new up our also banks capacity all up are and across new our

these the need. give will are confident us We changes we agility

up. and We nor down drain our to solve the profitability. a the business view than headwinds short few more slowing take bank from in trajectory change path it built our rather backlog the the that challenging will However, progress our environment completely been merely term, months as impacting a the has of problem to

engaging who the in and compliant our the remain and it in contributor a trajectory We've transformation confident strategy, In an an on customers We've trusted eye the we done large experience. a to with industry seek a ally horizon fact, a to to nose ground. been our and customer business payments and execution.

business shifted current out, the banking are of Although strong. the fundamentals environments our the have curve

ability Our Mike. are demonstrate With to pipeline that, to long-term to and on grow, it we pass growth. confident profitable strong our I'll in continues

good Thank you, Simon, afternoon, and everyone.

few will QX to TPV Cash lapped App we a better contribution broad-based several a smaller be launching gross little to the fueling the trajectory cases a reflect growth minutes. we growth in the our renewal. in I that expected results from which detail financial now programs, than profit use geographies, growth. lower of across growth and continues due Our new of TPV Nevertheless, have in Strong gross business profit were cover and the

track to however, $XX due of $X to expected million XX%. than Our million as strength path was was TPV initiatives. adjusted use to execution and than points TPV of faster and a continued customers than billion, better optimization across year-over-year increase growth due number of to a EBITDA TPV grew more Non-Block QX XX $X profitability, cases. remains on Block efficiency large

and flourish our over the being primarily Lending, solutions. XX% adoption including Now, several accelerated non-Block of including XX% been lending as robust top and of to Expense utilizing each reasons. Pay use over continues was users. banking Our revenue neo the mature rate quarter. customers XX has most of more card of Buy despite Now, as with roughly maintaining growth, Buy by at delivery, XXX% in slowed top last quarters our grew deliver remaining Pay larger XX% customers growth XX% is our our almost than Later, strong Pay the by over customers' wage company. Financial and access The faster TPV steady on-demand lower this platform revenue a X QX XX well $XXX services, aided a typical continues X lending, growing are BNPL case, solutions the our grew gap fuelled expanding Block customers quarter non-Block expense customers than year-over-year. by than largest new the Later the digits very of where year-over-year. Net growth growth management and net for in single of rapidly, million, be support growth points into to total now well than our growing SMB newer growth our row, vertical. Financial for slightly grew all and are management contributing Services TPV. third continues far overall to customers company same

First, our profit result as strong rate our TPV many of by in than revenue The a Marqeta among take of Managed Powered Powered minimal comparing and TPV much cost the This customers growth by by take less revenue, lower has when growth. by impact the gross is mix for impact when mid-single-digit which of Powered a recent business. by quarters significant being shifted contributed there revenue comparing is Managed and of business. -- rates

a headwind the on net QX presentation this as quarter. revenue in Block gross revenue, partner will not a low to platform to growth effect year-over-year in basis. XXXX. Non-Block into lap renegotiated revenue that XX in XX% concentration only and QX new that revenue important a Cash profit went the note XXXX higher Second, agreement mid-single-digit result last drove was than consistent impacts revenue growth. over change of points App with net QX, Block was It's

net profit million, quarter. growth as was Gross year-over-year contribution lower this. There are approximately lower profit a resulting XX X result a of Powered mix in points quarter, growth of from points Our contribution lower basis Managed by take XX% revenue and largest our programs than by reasons X rate from margin. last the a TPV primarily in a for business $XX customers. gross QX XX% driven of slightly was was of few the increasing by profit gross than and expected new

launch in were programs, banks in quarter less on banking were bank the expected fintech First, supporting XX finance. increased XX launch our an programs the industry, smaller days. the working We to efficient attribute partners the delayed new embedded few the regulatory and quarters which we of we by over particularly last to scrutiny to with average

anticipated and scrutiny, increased result we significantly impact the of processes. underestimated challenges the of as constrained resources Although we a evolving

Now implications XXXX, of a cover Unfortunately, the to for are in programs ramp have shifted and in QX bigger in minutes. few of the I as programs backlog we launch. builds detail is which more time, out backlog will there a and

performing launched programs as cohorts new launch achieving levels of of has diversified Because we programs as not in are viewed already portfolio have our customers disruptors, many that Marqeta serve expected. aggregate and innovators always Second, a success. varying with

of customers' XXXX programs to delays, refinement result of or Given projected. a The or underperformance therefore, portfolio for the be changes several little a may the diversification, gross evaluate. lacks small the in can the cause revenue of to happen of level higher of new early sample it size as allocation, and profit reasons, investment resource including cost needing proposition value than the

XX the from based X QX QX in our our the of QX. on rate in higher profit quarter, in was result by [bip] driven This annual gross basis years. lower the operating take adjusted than reset than is Our points, incentives last higher expenses incentives were of contract the of geographic efficiency hiring, optimization continue locations fully $XX scale, and at versus increase an to expected million, talent we X% are focused and last multiple find best To year. executing initiatives cost our benefit utilize are to well.

resulting helped benefits with ended price million, short-term repurchased $XX of quarter higher-than-expected X shares of net GAAP QX, QX was for loss scale these of cash deliver In of of All at adjusted EBITDA X%. million a over margin was $X.XX QX the $X.X million. in billion $XX income and We we Interest million. $X million. average investments. an $XX

for QX. latest Now let me through outlook our walk

between growth QX We and X-point primarily net expect X- reduction, be to what respectively, and environment XX% August. profit in QX in between our from both to of growth factors, and XX% expectations a change The by our XX% is to bank and to the compared revenue be degree driven gross XX%, from partners. early heightened some stem shared X which regulatory we

not First, they launch are also in the we new year, our by focused environment approximately the points. quick ramp cases, new significantly more this processes some In new second our solutions current and delays launching We gross now bank were programs for partners, plans. the and with lowering regulatory than heightened in programs. customers' up maintaining on of X will half expect launch programs growth profit fewer and enough environment

to delay ramp volume the in XXXX. the newer first impact a profit months backlog revenue of meaningfully pushes QX the is trajectory the to program, of The been on Why larger Now have it. working work that a have months program compliance rising of in a of into We of Delays will launches few impacts until tiers of start management with half raise tend programs year change of TPV in with gross bank seem our the subscale a QX. tide. take scrutiny in margins aware assumptions initial sudden? through through and significantly time the and very does few our contracts. ahead through than standards since launch, customers first to partners, investing it efforts it to volume year the since gross high of programs of our we this Because so work our our more this have

months, all X become adapt to to X past the underestimated for the magnitude horizon has clear in to the time new we and it parties However, standards. greatly

closely solution executing the for optimize to working of onboarding. improve existing and to with actively are efficiency the processes program partners challenge, approval this our We bank

at bank In demand. meet our addition, we least to partners X plan to to growing supply onboard bank our additional increase

long-term ownership factor the few is to profit lowering environment, program moving this The growth quickly of gross customers second points. highly X of are by fintech X a take sophisticated to components heightened more in

have customers to on bringing their We card X their on usage. more their resources connecting responsibilities, reliance services take customers shifting platforms end more management and their program X quickly to customer X in-house to users directly risk reduce

X% X%. gross the rate. outlook, be year these ago. volume mostly revenue and some this Despite we these our our XX% type do Based in on months full to XXXX the few to be to X way and our digits initiatives net higher shown now high because specific these investment QX expected to on our not approximately cost scale prioritize growth, last single adjusted expect trajectory better our operating growth sufficient and as our year of future Therefore, best year as growth result that of of we All QX work the discipline. shared expect gross outlook, very drive is believe efficiency to types QX resiliency profit adjusted in negative margin capabilities with QX X full on to lower the and be accretive of we this to business EBITDA approximately continue outperformance. XXXX factors, We expense to platform the of execute business. we their full operating to growth. EBITDA, several is actions drive serve in margin quarter point be setbacks adjusted profit a expect expect of Based growth resources, will want in actions to optimization to take execute customers reduce expectations broad-based become or the we customer Outside and EBITDA X%. a to or adjusted only We QX sophistication have XXXX than approximately X%,

of While discuss a on XXXX expectations for strong this we our a growth good for to had program XXXX a XXXX. challenges of robust be change an rather curve believe our of XXXX short-term ramp Investor improving QX To the Gross solve us growth for impacting business what early the is trajectory. in gross delivering profitable. EBITDA profit a Day. adjusted our Being the XXXX. wrap later schedule a we not beyond is trajectory quarter, combined and similar optimization several delays, at up, adjusted EBITDA ramp expense result should in next are EBITDA remain ahead structural impacts in launch shared XXXX program to to believe approximately XXXX it new the out XXXX our in pushing shifting exit growth these XXXX could that new detail, programs XXXX than adjusted to we with deliver track GAAP enable QX, on work programs new as profit of expectations quarters we are similar to our at too issue to with from million $XX We in point, XXXX. indicator Also as QX changing

we highly We to both several for embedded are with capable beginning scale, in realize partner the opportunities our looking profitable finance support but to a multinational generating benefits growth, in prospects of discussing the use cases. also are

growth quarters Although platform a profit we expectations, the rising generating rapidly with mid-teens adjusted a our previous be than will are coming EBITDA. lower in gross market-leading our growth still

of remains and back programs turn operator strong differentiation is of on over it processing a the journey in remains that now issuer lead. positioned The market clear. the business Marqeta new for Our prosperous in our to I launching will modernization underlying small step is to Q&A. a delays well long

from the line from [Operator Instructions] of The first Barclays. El-Assal Ramsey question comes

visibility Can the sort terms of given point, in your at going a changes? of everything you on this out seeing sort pain bottoming of of that's confident you on these here? Or long. Are you're sort comment regulatory-driven the line that also risk a and just could I'm we And deteriorated have too implementation stretches some to see quarter if wondering get things that for that next get bookings time out whether may of further? terminated there's

Mike. over that, then take me Let it Ramsey, to and pass

-- the So what bottomed is anticipated impact the anticipated have I'd say on we do say reasons for that What the the banks. I would had out. our have multiple that is not because And we we is onboarding visibility we process with the have changes.

not that give more the scrutiny to you specific It's that and examples, changed. it's just I'd have launching the oversight upon third-party the rules programs have changed. say So

back in as So in actually we the the the example, program, being goes change done parallel. to versus queue it an of top something as

versus, procedural are So I'd material these changes. say, changes

but I the I'd it's because over will do to hump fix drain ordinary and to job, backlog back the when time we tough are our a that the order have for in out. up. regulators say, us go demand need what take times went it went banking It do actually partners to we program to, believe comes not down, get the our So to to it a

out risk parties patients they run We the have not into this mean which your we work a some about goes expect queue? that in partnership. to like lot are will don't terms committed of onboarding as backlog So of instance to entities management. that. to There's in both an it from is both not I development the And we are to have of in questions drain. that people

only mean, our impacted And quite not they are we I We're it. we're entity -- have customers. the understand the by pretty all So so environment. committed,

they extremely supportive they programs and So Mike, we're be anything like working been contrary, they launch. and excited want that with add you'd about to? the them the to on to have to continue

Yes.

the color the on some Just maybe some just delays, on I'll Ramsey. specifics just give of

XXXX, So clearly up regulatory more the you of orders the had at scrutiny months ratcheted the XX with banks if look space. than first our few consent affecting in

an what we was spike average that than the to Xx was in so And time in XXXX. saw initial the launch more

But delivery XXXX to days changes So that were new we and things And XXX happening. of to start sort was on around about QX, had over the to expected But roughly. back and XXXX. the typically of launch. XXX of initial onboarding of the to average, in all to get took programs been days. This changes longer QX, rose XX% sort at in XX% QX, that where given we expected shock was the

And over days. so had the time it XXX been still XXX about remained previously when days

of second color magnitude your terms of more happening. gives of little what's sort in the on a just So And question that you just to address visibility.

So were launch expected. Nine that to average in components, much X now did XX that we when programs XX But but QX, expected days. break down just into later so you are launch delayed actually on of of in had those XX than QX. programs

then one now into little more are slipping a QX, pushed QX of So been XXXX. and is into half than

address to have that now So visibility good solutions we've these to pretty challenges. the of implement we started some

we're still in projections we -- outlook. part, the terms there's sharing about most course, So feel for good the some but we of unknowns, of our

quick a Okay. And follow-up. just

proposition Can to be? to they like to there? and passes You value those that's performing you a maybe are Or might that in could that as trajectory us at it change out You now comment also way the time things see investment performance? of sort you new refining Is it's mentioned are, levels little cohorts or the that expected. you terms on some degree also the the called customers. maybe programs give as which color it's just not as are your a able there like be performing of change launched more going

Yes.

trajectory. ways definitely So there's to the impact

in portfolio, the mentioned we of right? the we We're is a nature that my of customers customers when program I quite a new within serve, hits-driven a a we're and prepared at types hit As sort the have remarks, in and them aggregate of have new some adjusted. at looking as we'll we launches, and the them cohort of key of doesn't lot at whose little because business look you a value where success a bit of needs launch be proposition few mark programs experience to look

through we work value the So and experiencing changes and outcomes, type of guess, get changes, -- help are to this we typically them see who I are success we with implement much then their customers bank. those not the as proposition refine

So that I would say it's not unusual.

with essentially, delays, have would you that live. the don't normally I now the different going think a balance what portfolio, smaller is then programs much quite lot with program sample size And much the smaller. more is a a little bit is because all have of you

improve with to are them continue And so obviously work we'll regard. aligned that in performance. to and Everyone's incentives try

from Research. the Wolfe The of Peller Darrin next line question is from

couple with And us little existing current just the terms a guess, maybe impacted as bit acting smaller XX. helpful partners customers banks. forward. sponsor more terms be I this on fits verticals with more the on would Can help or maybe quick haven't a us other understand topic. change their a I the this mind by that customers about this maybe could just confidence around anything little this you by that new your color number anything follow-on into your of any fits But follow-ups that level this Just help one, in or shouldn't are -- ongoing been going mean, yet about if be of don't more? in it's that But impacted of timing. I you understand conviction you with it's business? actually what banks, of the understand your visibility business helpful? And really was any great I -- then us onboarding us gives help that? obviously, to just terms on else where That guess help around or a verticals what you would in operating gives where hear confidence be

Darren. you, Thank

take and question then the it Mike. me Let first over I hand to

that review So dating lot they years. increase Marqeta I'd our before of in I has consent in order in taken have the early steps programs existing orders customers, and/or say, on the in we of procedures programs a place. the regulatory X terms and would to scrutiny to our put have launched say at all for

is in comfortable test. there we've done pretty at said, are have terms we through these It's looked And launched is then regulatory partners pretty whenever programs of our everybody solid. more lot So almost and being actually in the put the parking questions, and out sustain rigor able that no, We system. we we're the exercise. to whatever okay, good

feel So we comfortable that. about

drop Now hey, in has time like, I'd you confident not say why terms increased. If programs of your that these second right? launch to are off, customers going question, are takes the to it

beginning. as right? them one, is the about with I'd we've And reducing with locksteps and Number the are that changes them we've spoken at iterate necessary, customers, one. all number scope, don't to our much worked, in as in So number touch of stayed changes two reduce say, the we've the on number

So with being acute we be that, let's use our experience points to is actually to it moved get that working be and the queue, the don't of construct going word that. it's but And almost XXX to the thing that's to third some put the here is responsive time, few have the right our they've them I and end that to customers. we at we've consumer consult versus first hate done hey, from the the back to use resources the of programs and a with that have actually as there. win extra launched recognize we in, been going

the our So invested probably the discipline to I use the early cycle. if surprised that I about extremely they're are how would launch. we what on given customers would falloff be have in But solutions word in is

our new increasing started -- ours the just we existing of at you, Yes. if tend We've One about over to doing with X.X meaningfully go to half years. is add than bookings Darren, years that, be talked thing of that you back are on I'd X -- more programs. who when to those last since look really customers

So into they're cases. new markets doing expanding they're use new or

right, X can change a now. aware. with then so maybe year they happening program very feel They a And or X, and specifically, see the what's can very us launched they ago, they're years

change think pretty bank in I good a to but everyone or pretty other is especially the issue they banks a or much broader that's we Marqeta to industry, this may is happening it's with, specific this the broad-based. not speak the in so working involved people be there's that if they industry, partner understanding from a And know other

customers happening. the feeling not questioning this we're of so seeing impact. why is sort mean And I is everyone

to it's certain of onboarding your of last a broad-based. question so really just to In programs in how through, kind is are previous reinforce change said, been moved through. move go and is affecting terms verticals, encourage constructs cases. This about, and it preapproved we it know process, all stick trying something to very That Simon mentioned, the use that very, have foundational It's customers to through of isn't. we we more

it trying then So live maybe your there prop and and changes get refine over to going value to the time. limiting from

a to be for base feel topic, get Yes. the any able to more -- talk with just there's I are material about was the All that right. and add mentioned to regulators I'm going to guys been to sticking changes of Mike, specific have guys construct. have if you I just required? you kind that incremental to mean, underlying But touch see assuming going you on

is most bad in the the past that regulatory We're reactions ecosystem job. said, a the been we in they is say have wouldn't to But Like hey, ecosystem, I like that It live including by which tough the runs in a the in happened I bodies. to whole of always talking this things like, more and everybody incrementalism. not an Marqeta, that but have have apple ecosystem.

what So is the and that right, banks oversight. increase and came supposed industry, regulators isn't they're to what do. because doing would an banks general anything, as there an some ourselves is is that against of we say or anything the there in industry But strong don't third-party happened change environment but I underlying the in overall the expect to

year, bank the what thing early other we've The is, into this in we've done, say moved vetting of beginning I'd stages our at Darren, pipeline.

contracting So into have solution. vetted the banks with go not do the before we anyone

is that to sign So a increase, change I'd we done that in live. to order anything we've chances say, the go of

to out the effectively become also And that weeding are more confidence. So I helped solutions we efficient the handling it increases not our in through delivery. going bank that that make that so in think

from next is the Tien-Tsin question of from The JPMorgan. Huang line

the the outlook. -- sticking I 'XX appreciate EBITDA you're with

would EBITDA? in some through I side all that clarify on Am So Just there'd costs here doing the the that deleveraging P&L I or and remedy with doing and protecting work remedy the I on why can you maybe want what situation, be there. that? impact us to just misunderstanding the have presumed you're to additional walk you're you're confident the

a Tien-Tsin. company, And Toronto because a we also, has started 'XX the think lot tail we've a in and been But we've in and compliance outside Tien-Tsin, the on decided and side. you, of spoke of #X. development comes have of our the compliance multiple the -- management lot investment we've Thank about end and the we cost as I 'XX. Actually, in going is on. would to I at made times, [Indiscernible] risk States operations onboard incurred automated already into early it when investment United to we've say the it largest it as and well, Poland Marqeta processes,

OpEx steps. changes. their team new to not that meet could order we're those with themselves meet the comfortable, is in predict have these this banks have compliance banks And was that taken the we've actually reality. we are to The all things comfortable done order in -- our increase whether to themselves the So investment

it, bank. existing answer mentioned looking are more sticking I matter tweaks to what have right? the the we're actually our they go reducing doing your becoming efficient and through construct, worked doing say kind that cases with don't that used is don't we about so process. I'd thing Now #X of that the existing at with the

and And a consult supply not are the with experts least, side. our more steps do our with these I able time. last continuously the couple get to that but we'll the to but differentiated to of give medium us only versus we'll not deals it on help we've drain more placed backlog to the of banks and help believe our first We adding be field backlog. be to us term, confidence increase the right solution in customers some add to moat able the in long the be the all of

more couple but And from add 'XX being Tien-Tsin. just on much ago wouldn't a a profit of maybe we XXXX thought a to that time, point, of At this based than Investor circumstances. on launched the not at programs prior Normally, we what is lot we're comment gross this different details, our XXXX transparent year to view Day. at

assume you we're we the typical look XXXX. on the that in And on that historical have ramp just sense data. at based launching that a TPV there's really centered we of is seeing we're XXXX change a way programs So new around is that, so

both you the launched. business. can light the and trajectory it's see as program pretty at to over looked literally couple bad, volume imagine, use And that typical how So first that time. programs gets And use of that as over program you you our of started. We remove ramp the grows outliers, project XXX in we've a and of is sort a good months, we've that we and

in So to XX% X. of in months, X for volume that first the that happens program months X

to couple then XX, to pretty and X are the from volumes months Xx months. things months of slow, than So pick larger first the X up the are X, first to start month X

ramping So month to XX months X steep. to then very larger starts XX. Xx the And is then than XX curve

So profit happening to why you big ability detail a months, what you curve, you want understand I to what to that's implications into shifting start gross from a pretty that when and it is revenue look at our start that if has just and start few realize perspective. of to that kind is timing share

EBITDA should pace be projections million. we we've just that XXXX, we're where be challenges we these that's gross to of made expense much $XX we that need confident time But So then back of still side, from work profit that we the and And signed a progress kind that we Investor believe so on a perspective. up the backlog. by the Day. for are because about able solve we'll why through We to on the from expected for meet that's our little

add, statistically is program And been now. over a curve Tien-Tsin, we I we've with seen deviation from curve. tracking One thing year significant this say, will we any Yes. every the launch, I'd haven't that for,

will pretty is that on that's programs confidence look what our think like. I So a basis high cohort-by-cohort

line The from Chiodo of next from question comes Timothy the UBS.

So I just want recap. to

question is for this So Mike.

So sounds X factors. there's it like

of time the pushout programs. first is The new line

just sophisticated performance is in-house a some maybe like the customers. one is in-sourcing, ranked around maybe believe or of bit of more little One, launched the early little a more if it could the the confirm Mike, customers, The then bit changes with factor I just of the that's I dig I more from of -- some was are. the the to will, sounds that. stack order. And a of you customers if then hoping, some of programs. they lesser like recently you second third, And would the types and sophisticated those in

are said Maybe into a of that more. dig of some you bit PM a can You them some in-house. are more more little doing the of bit little doing in-house, them risk

Sure.

what Tim. confirm to just said, you So

would I say X yes, factors. it's So more

significant. and small, of quite doing it's our then new say these performance the and it's programs that So impact, of some of it's is more would sophisticated of customers kind program the I not new things it's in-house. fintech timeline the really early part

say factors. we customers give primary would we're more seeing on are what customers things more our bank And who X you really it's color in-house, I have relationship. to X So are little for the who taking over bringing a

So the are and they although some program provide to manage bank relationship going directly. services, we're still to capabilities going them management for

change. of change one type a that's or So

solution. a bringing who's based customer another in-house risk We services more have on homegrown

users in. So X a some connecting customers on then cards. platform large sophisticated is have their who reduce customer also reliance end And where to directly this been and this building this time is their has for we their to pulling they're

there's about had to this connections, that to to I delivery, is we've like Later, mentioned in So Now, growth points that X there Buy that's all what's allowed again, something them events before, lower cases, QX previously some we customers customers can expected. Pay And than as we're would is in contributing have of as X say, in are individually, different that scale it concentration those I this you you What past short and use direct issuing and happened that know, environment, case, what done impactful. this think in much in is this time part have making lose going faster. do on-demand are automation, in But without a our What's activity and business period a here of of do that's this X the those dramatically business. volume, if of to cards. in AP their we about execute

be events. seeing a adjust which we're all happening having in typically through, the But to customers frame things haven't what sort some why that it our is of impactful, in to makes of experienced, why at isolation, they're the to move I would time. time at these of and we're we we fact of going more we're and least expectations order attribute that none So in a it overall is once relatively that's that would sort quickly degree that environment say, short

one. And then brief more a

their should that working with you with mentioned the they on provide and them? Flex work any around Credential, first have Visa quote, planned Credential. several we XXXX said Clearly, Marqeta portion of it some to in I one that and said you've been hundreds new be they context for assume for Flexible that Visa pipeline of certified issuers could Visa of Or the So safe call the to additional Visa to Credential. hundreds of launches Flexible those there? earnings be Is

or midst you and launch of were are Wednesday, first. and say we of expect we the for that that into Yes, the XXth tomorrow I'd phase in starts a the question. either November. as to live, ramp the And the Thank on actually we it going happen like

reception, said has comfortable been as and very the it. with last time, great, we So we're

the demand the in yes, our increased and and it the services, both EU. U.K. on has the U.S. So

line question The from KBW. Sakhrani of next the from is Sanjay

competitors I is validated guess, did mean, to the you what guys delays? others Mike, your not that? what I have you also seeing that you were mentioned similar or dissimilar Simon in have seen Have product industry. seen launch

the taking heard we flight everybody And last was has that on that programs. on were mentioned Marqeta, cycle. they're terms that Good the to Actually, in general they're say coming conference thing quality, which at seriously. a compliance of we to out lot players could talking #X that about thought take now was were folks regulatory is is that actually has discussed BaaS the almost seeing the that scale they to because is these in of is lot Marqeta folks like and invested but financial also the compliance talking And about delays, they're an disappeared which to team, that MoneyXX/XX question. services. the the everyone entity we of use for also, as early week, as new kind ability a fizzle a alternative And solutions because in how I'd of

ourselves we that bank of our we have faced. that head couple and not But we're get of and unique the burden had yes, compliance, believe -- will over hump a So in partners into this start operational do I this a into in environment. terms

in have they're with to the to is several for have Yes, or pipeline Sanjay, bank been that people who on. we platform the have partnership leave notified terminating their they're our exiting also bank even going their space programs that whatever

a So points not Marqeta-specific there there out suggest this that are, issue. guess, several data that I is

Okay.

question, follow-up a Mike. Just

it be deferral, say, half the worst-case for profit sorry, but second talked you're even? the that that when days, that see think And scenario? sort step-up mean quarter I the fourth about of could a guess proxy You the that I'm is giving that. guess, XX does being XXXX under Or is good it's like paradigm? Or we that just ratcheted like I understanding of XXXX. down? I of a guidance, you gross about in year a let's just more not know next cadence

No, to just it's all some wanted you. as just to Yes, with be fair enough. give expectations indication we transparent we're resetting of

the that backlog. So we work it how depends, think quickly on Sanjay, all I through

we feel think about seeing solutions to implement, we're we're the I progress. starting good and So

the of hump; that like in work as past we're quickly how that kind had The then feel the queue, of over kind we will. can in is over of not maybe QX if through we hump. the expected to now we launch programs we're kind backlog question were are it, but you also the So, we're

all stack they So up. depends it how long

better we'll again, determine that's in think XXXX. the cadence that something be like that quarterly we'll trajectory late And at we'll much I obviously a able what for we idea quarterly looks of to give a point. have when February talk and

line from of Citi. Andrew comes question Schmidt next from The the

the Really appreciate all here. detail

the are as that are needs elongated also nothing sub-FPO the is changes there this, So just the some time to as it heard process I'm like level, that like just just in makes increased the But to terms result platform, frames. making? significant. of be a changes result more of that's if changes detailed in scrutiny, of to of sense could transparency you comment in anything changed? the But kind the platform things you're a addition at that, there curious, we've I required Obviously, on Marqeta terms whether guess now of things the

that mean compliance everything always I not consolidated more, and dashboards. the room just it answer requirements the conceptually, for Thank compliance our doing not our But side, comes I when do for on. changed. visibility there's something in working short that question. especially that the automation regulatory It's have the mean have. to increase you, team to has the the Andrew, increase it's is nothing started do, we reporting we improvement teams

the dashboard real compliance give on in team you great the side. that is an operate time near could example, building Just to a

in because some of is programs more at our some are of are the there we're the short that is But scale to launching maturity customers had and the answer I with did guess before actually changing we know tune which now. change that nothing of early. they're not operating the So we at that

on just the new you have And more the on you here about then maybe broadly in environment? implementation? hesitancy the to the as just on new working And environment. environment. backlog, seen then just speaking, what's given overall the could you focus just some I going I'm in think pipeline through new draining just ask curious the Obviously, the But shift sales candidates backlog. resource from sales new sales do is of

question. great a It's

you decide to have team how done. I'd that's is our of But expertise what our to do going first we've step We looking pipeline. having I'd resources expertise to hired first mechanism right their things moved done We're and we've get say help. delivery the the the through it use at also most say prioritize help customer the time.

So not first out it's a also. in, first

some thing The is betting help we've the on ourselves our taken other to partners. we've done of so bank

point from as to can terms the because the of from of in in, shying like continues the the I'd does funnel, our our impacted regulatory are in specifically growth finance is to customers grow increase. embedded it And contrary. quite pipeline, kind only this? pipeline And bookings of I despite say we of the customers. hey, it's have as the away pipeline scrutiny, top Now

comes line Andrew question Fargo. next Bauch The the of from from Wells

about it call estimate quarter, to knew? same-store fourth your from X were of existing, is with that X-point is where macro it, what profit we just embedded is that ago? kind months gross Meaning, to think assume we consistent assumptions the headwind If we unchanged growth within sales fair in the the

That's right.

I thought then of had highlighted. are taking as and the are more expected of changes specific everything to who that couple and Outside quarter. only So is consistent new X what were that on last programs. are actually that, happening little And I bit that responsibility, with related we're a there's seeing a we there programs things

to the And Simon, went with demand said actually up quarter. you follow that up in then

what could changes the us business you are the demand elevated transitory to of seeing kind onboarding of bridge that's process? parts So offsetting help these that

demand the the has that It's been in I it mean up. quarter. has Yes. gone going not up

to clear programs. haven't So we been has the backlog gone the up able of some because

are launch, launch Mike of programs launch, in XX%, XX you to an gave X to is XX As or that we're only which the indication out supposed targeted QX. XX%

are areas the side, So the I'd traction areas. there seeing on X say demand we're where

constituents. The brands That's who banking on to services offer first want one the their is side and neo banking one. to

have, The is Visa credentials, in put flexible are our payroll the are last fintechs to of Flex and the the that I that that into of our say, expense hoping in a there's customers not funded I'd product least, flexible second co-brand. not commercial one in build suite I'd say, that automation, software And at newly I'm is audience. mistaken, management, us. coming venture looking an but right now, finance companies that automation, AP audience payments. announced either and management embedded a lot versus, And X/X if pipeline banking finance I'd and are say large

question-and-answer now session. the last Inc. for And you of our has gentlemen, and Ladies for conference Marqeta, question participation. your the was that Thank concluded.

You disconnect your may lines. now