MARQETA SECOND QUARTER NET REVENUE JUMPS 53 PERCENT YEAR OVER YEAR,HIGHLIGHTING CUSTOMER STRENGTH AND NEW INNOVATION
The global modern card issuer generated net revenue of $187 million in the second quarter of 2022, up 53 percent
year-over-year, with 53 percent growth in second quarter total processing volume and a 66 percent increase ingross profit.
OAKLAND, Calif. – August 10, 2022 - Marqeta, Inc. (NASDAQ: MQ), the global modern card issuing platform,
today reported financial results for the second quarter ended June 30, 2022.
Total processing volume (TPV) was $40 billion for the quarter, with net revenue of $187 million. Both figures
represent an increase of 53% from the same quarter of 2021. Gross profit was $78 million during the quarter, an
increase of 66% year over year, resulting in a gross margin of 42%. GAAP net loss was $45 million and Adjusted
EBITDA loss was $10 million for the quarter ended June 30, 2022.
“Marqeta’s platform continues to enable customers across many different verticals to build products on the
cutting edge of payments, and serve as an accelerator for their growth. Our second quarter results aretestament to that breadth and depth, as we again launched new products and bought on major new customers
globally,” said Jason Gardner, Founder and CEO of Marqeta.
Recent Business Updates:
Marqeta highlighted several recent business updates that demonstrate its current business momentum:•

Marqeta announced a partnership with Western Union in Europe. The company chose Marqeta to
power their new real-time, multi-currency digital wallet and digital banking platform, which allows
Western Union’s full remittance service to be offered online, with funds disbursed to a physical or virtual
card.

•

Marqeta announced a significant expansion to its credit platform with over 40 new credit APIs that will
enable our customers to design, test, and launch differentiated credit card experiences. Theseenhancements will provide its customers with greater flexibility and control than legacy credit solutions,with customers also having the option to leverage First National Bank of Omaha’s leading program
management and banking capabilities.

•

Marqeta was named as the payment processor of choice by Mastercard Prepaid Management Services
for Opal Plus, a new transit program in Australia launched by Transport for NSW. This will allow
subscribers to plan, book, and pay for a tailored commuter experience directly from their mobile device,and shows the adaptability of the Marqeta platform to service an ever-broadening array of use cases.

1

Operating Highlights
In thousands, except percentages and per sharedata. % change is calculated over thecomparable prior-year period (unaudited)Three Months Ended June 30,

Six Months Ended June 30,

2022

2021

%
ChangeNet revenue$ 186,678$ 122,266

53%$ 352,780$ 230,249

53%

Gross profit$ 78,049$ 46,975

66%$ 152,775$ 96,832

58%

2022

%
Change2021

Financial metrics:

Gross margin

42 %Net loss($44,688)

Net loss margin(24)

Net loss per share - basic and diluted

38 %($68,554)

%

(56)

43 %
35%

($105,286)

%

(30)

42 %
($81,392)

%

(35)

(29)%
%

($0.08)($0.29)72%($0.19)($0.44)57%

Total Processing Volume (TPV) (inmillions) 1$ 40,457$ 26,520

53%$ 77,083$ 50,518

53%

Adjusted EBITDA 2($10,225)($10,637)

4%($20,678)($8,990)(130)%

Adjusted EBITDA margin 2(5)

Key operating metric and NonGAAP financial measures:

%

(9)

%

(6)

%

(4)

%

1

TPV represents the total dollar amount of payments processed through our platform, net of returns and chargebacks. We believe that TPV is a key indicator of
the market adoption of our platform, growth of our brand, growth of our customers' businesses and scale of our business.
See "Information Regarding Non-GAAP Measures" for definitions of Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation of the net loss to
Adjusted EBITDA.
2

Second Quarter 2022 Financial Results:
Net revenue increased by $64 million, or 53% year-over-year, rising to $187 million from $122 million in thesecond quarter of 2021 resulting from a 53% increase in TPV year-over-year.
Gross profit increased by 66% year-over-year, rising to $78 million, from $47 million in the second quarter of2021 primarily due to our TPV growth. Gross margin was 42% in the second quarter of 2022.
Net loss decreased by $24 million to $45 million in the quarter. Our increase in gross profit was offset in part byincreases in compensation, benefits and technology expenses as we continued our investment in our people
and platform.
Total Processing Volume increased by 53% year-over-year, rising to $40 billion from $27 billion in the second
quarter of 2021.
Adjusted EBITDA in the second quarter of 2022 was ($10) million, remained flat year-over-year. Adjusted
EBITDA margin was (5%) in the second quarter of 2022.
Financial Guidance
The following summarizes Marqeta's guidance for the third quarter of 2022:
Third Quarter 2022

Net Revenue Growth

36 - 38%

Gross Profit Margin43- 44%

Adjusted EBITDA Margin (1)Negative 8-9%

See "Information Regarding Non-GAAP Measures" for the definition of Adjusted EBITDA and for information regarding non-availability of a forward
reconciliation.
(1)

2

Conference Call
Marqeta will host a live conference call today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time). To join the call,please dial-in 10 minutes in advance: toll-free at 1-877-407-4018 or direct at 1-201-689-8471. The conference
call will also be available live via webcast online at http://investors.marqeta.com.
The telephone replay dial-in numbers are 1-844-512-2921 and 1-412-317-6671 and will be available until
August 24, 2022, 8:59 p.m. Pacific time (11:59 p.m. Eastern time). The confirmation code for the replay is13731428.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in thispress release include, but are not limited to, statements relating to Marqeta’s quarterly guidance; statements
regarding Marqeta’s business plans, business strategy and the continued success and growth of our customers;
statements and expectations regarding Marqeta's partnerships, new product introductions, and productcapabilities; and statements made by Marqeta’ Founder and CEO. Actual results may differ materially from theexpectations contained in these statements due to risks and uncertainties, including, but not limited to, thefollowing: the effect of uncertainties related to the global COVID-19 pandemic and other public healthemergencies on U.S. and global economies, our business, results of operations, financial condition, demand forour platform, sales cycles and customer retention; the risk that Marqeta is unable to further attract, retain,
diversify, and expand its customer base; the risk that Marqeta is unable to drive increased TPV on its platform;
the risk that consumers and customers will not perceive the benefits of Marqeta’s products as Marqeta expects;
the risk that Marqeta's technology platform, including hosted solutions, do not operate as intended resulting insystem outages; the risk that Marqeta will not be able to achieve the cost structure that Marqeta currently
expects; the risk that Marqeta’s solution will not achieve the expected market acceptance; the risk thatcompetition could reduce expected demand for Marqeta’s services; the risk that changes in the regulatory
landscape adversely affects the gross interchange or other revenue Marqeta earns or adversely affects the bankand network costs Marqeta incurs; the risk that Marqeta may be unable to maintain relationships with IssuingBanks and Card Networks; general economic conditions in either domestic or international markets, including
conditions resulting from geopolitical uncertainty and instability or war, including, the direct and indirect effectsof the significant military action against Ukraine launched by Russia on U.S. and global economies, our business,
results of operations, financial condition, and demand for our platform; and the risk that Marqeta may besubject to additional risks such as inflation or currency fluctuations due to its international business activities.
Detailed information about these risks and other factors that could potentially affect Marqeta’s business,financial condition and results of operations are included in the “Risk Factors” disclosed in Marqeta's Annual
Report on Form 10-K for the year ended December 31, 2021, as such risk factors may be updated from time totime in Marqeta’s periodic filings with the SEC, available at www.sec.gov and Marqeta’s website at
http://investors.marqeta.com.
The forward-looking statements in this press release are based on information available to Marqeta as of thedate hereof. Marqeta disclaims any obligation to update any forward-looking statements, except as required bylaw.
Disclosure Information
Investors and others should note that Marqeta announces material financial information to its investors using its
investor relations website, SEC filings, press releases, public conference calls and webcasts. Marqeta also uses
social media to communicate with its customers and the public about Marqeta, its products and services andother matters relating to its business and market. It is possible that the information Marqeta posts on social
media could be deemed to be material information. Therefore, Marqeta encourages investors, the media, andothers interested in Marqeta to review the information we post on social media channels including the Marqeta
Twitter feed (@Marqeta), the Marqeta Instagram page (@lifeatmarqeta), the Marqeta Facebook page, and the
Marqeta LinkedIn page. These social media channels may be updated from time to time.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determinedin accordance with GAAP are included at the end of this press release following the accompanying financial
data. For a description of these non-GAAP financial measures, including the reasons management uses eachmeasure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures".
About Marqeta, Inc.
3

Marqeta’s modern card issuing platform empowers its customers to create customized and innovative payment
cards. Marqeta’s modern architecture gives its customers the ability to build more configurable and flexible
payment experiences, accelerating time-to-market and democratizing access to card issuing technology.
Marqeta’s open APIs provide instant access to highly scalable, cloud-based payment infrastructure that enables
customers to launch and manage their own card programs, issue cards and authorize and settle paymenttransactions. Marqeta is headquartered in Oakland, California and is certified to operate in 39 countries globally.
Marqeta® is a registered trademark of Marqeta, Inc.
IR Contact: Marqeta Investor Relations, IR@marqeta.com

4Marqeta, Inc.
Condensed Consolidated Statements of Operations(in thousands, except share and per share amounts)(unaudited)Three Months Ended June 30,
2022

Net revenue$

Six Months Ended June 30,

2021

186,678$2022

122,266$

2021

352,780$

230,249

Costs of revenue

108,62975,291200,005

133,417Gross profit

78,04946,975

152,775

96,832Compensation and benefits

97,86897,755

198,216

144,658

Technology

13,154

7,569

24,53813,195

Professional services

5,794

3,831

10,564

8,028

Occupancy

1,148

907

2,263

1,993

921

874

1,900

1,781

Operating expenses:

Depreciation and amortization
Marketing and advertising

886

495

1,445

990

Other operating expenses

4,995

3,530

9,838

4,825

124,766

114,961

248,764

175,470(46,717)(67,986)(95,989)(78,638)

Total operating expenses
Loss from operations
Other income (expense), net

1,802

(481)

(9,875)(2,648)Loss before income tax expense(44,915)(68,467)(105,864)(81,286)

Income tax expense (benefit)

(227)

87

(578)

106

Net loss$(44,688) $(68,554) $(105,286) $(81,392)

Net loss per share attributable to common
stockholders, basic and diluted$(0.08) $(0.29) $(0.19) $(0.44)

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

544,704,146

5

234,669,664

543,524,008

183,784,697

Marqeta, Inc.
Condensed Consolidated Balance Sheets(in thousands)

June 30,
2022

December 31,
2021(unaudited)

AssetsCurrent assets:
Cash and cash equivalents$

Restricted cash

1,220,273$

1,247,581

7,800

7,800

Marketable securities

444,873452,875

Accounts receivable, net

8,109

13,187

Settlements receivable, net

10,433

11,266

Network incentives receivable

13,26630,399Prepaid expenses and other current assets

38,64235,617

1,743,396

1,798,725

Property and equipment, net

8,643

9,687

Operating lease right-of-use assets, net

10,185

11,296Equity method investment

7,875

8,384

Other assets

6,831

2,286

Total current assets

Total assets$

1,776,930$

1,830,378

$

901

$

2,693

Liabilities and stockholders' equity
Current liabilities
Accounts payable
Revenue share payable

117,087

121,179

Accrued expenses and other current liabilities

110,517

114,096

Total current liabilities

228,505

237,968

Operating lease liabilities, net of current portion

10,786

12,427

Other liabilities

3,082

6,557

Total liabilities

242,373

256,952——

Stockholders' equity :Preferred stock
Common stock

54

54

2,067,435

1,993,055

Accumulated other comprehensive loss

(10,193)(2,230)

Accumulated deficit(522,739)(417,453)

Additional paid-in capital

Total stockholders’ equity

1,534,557

Total liabilities and stockholders' equity$

6

1,776,930

1,573,426$

1,830,378

Marqeta, Inc.
Condensed Consolidated Statements of Cash Flows(in thousands)(unaudited)

Six Months Ended June 30,
2022

2021

Cash flows from operating activities:
Net loss$(105,286) $(81,392)

Depreciation and amortization

1,900

1,781

Share-based compensation expense

72,153

66,928Non-cash operating leases expense

1,111

1,058

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

Amortization of premium on marketable securities
Impairment of other financial instruments
Other

338

716

11,616

—

326

2,974

5,067

2,416

Changes in operating assets and liabilities:
Accounts receivable
Settlements receivable

833

3,269

Network incentives receivable

17,133(17,415)

Prepaid expenses and other assets(14,982)354

Accounts payable(1,609)(18)

Revenue share payable(4,092)

3,824

Accrued expenses and other liabilities(6,987)22,738Operating lease liabilities(1,464)(1,420)(23,943)

5,813

Net cash (used in) provided by operating activities
Cash flows from investing activities:
Purchases of property and equipment(868)(1,096)

Purchases of marketable securities(12,999)(13,145)

Maturities of marketable securities

12,90057,188(967)

42,947—

1,319,809

3,407

2,539

Net cash (used in) provided by investing activities
Cash flows from financing activities:
Proceeds from initial public offering, net of underwriters’ discounts and commissions
Proceeds from exercise of stock options, including early exercised stock options
Proceeds from shares issued in connection with employee stock purchase plan

2,775

—

Taxes paid related to net share settlement of restricted stock units(8,580)(10,273)—(1,981)

Net cash (used in) provided by financing activities(2,398)1,310,094

Net (decrease) increase in cash, cash equivalents, and restricted cash

(27,308)

1,358,854

Payment of deferred offering costs

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

1,255,381$

7

1,228,073

228,233$

1,587,087

Marqeta, Inc.
Financial and Operating Highlights(in thousands, except per share data or as noted)(unaudited)
2022
SecondQuarter

2021

First Quarter

FourthQuarter

Third
Quarter

SecondQuarterYear overYear Change
Q2'22 vs
Q2'21

Operating performance:
Net revenue$ 186,678$ 166,102$ 155,414$ 131,511$ 122,266

53%

Costs of revenue

108,629

91,376

79,61572,43875,29144%

Gross profit

78,04974,72675,79959,073

46,97566%

Gross margin

42 %

45 %

49 %

45 %

38 %

4 pps

Operating expenses:
Compensation and benefits

97,868100,348

88,99584,46297,755—%

Technology

13,154

11,384

11,143

9,299

7,569

74

%

Professional services

5,794

4,770

5,712

4,703

3,831

51

%

Occupancy and equipment

1,148

1,115

1,097

1,091

907

27

%

921

979

967

786

874

5

%

Depreciation and amortization
Marketing and advertising

886

559

804

490

495

79

%

Other operating expenses

4,995

4,843

4,811

3,880

3,530

42

%

Total operating expenses

124,766

123,998

113,529

104,711

114,961

9%

Loss from operations(46,717)(49,272)(37,730)(45,638)(67,986)

(31)

%

1,802

(11,677)

142

(57)

(481)

(475)

%

(44,915)(60,949)(37,588)(45,695)(68,467)(34)%

Other income (expense), net
Loss before income tax expense
Income tax expense (benefit)

(227)

(351)

(781)

35

87

(361)

%

Net loss$ (44,688)$ (60,598)$ (36,807)$ (45,730)$ (68,554)

(35)

%

Loss per share - basic and diluted

$

$

$

$

$

(0.29)(72)%

TPV (in millions)$ 40,457$ 36,626$ 33,046$ 27,569$ 26,520

53%

Adjusted EBITDA$ (10,225)$ (10,453)$$$ (10,637)(4)%Adjusted EBITDA margin(0.08)(0.11)

(5) %

(6) %

(0.07)
1,162
1%(0.08)(4,939)
(4) %

(9) %

4 pps

Financial condition:
Cash and cash equivalents$ 1,220,273$ 1,197,257$ 1,247,581$ 1,260,220$ 1,579,287

(23)

%

Restricted cash

$

$

$

$

$

7,800

—

%

Marketable securities$ 444,873$ 447,046$ 452,875$ 408,954$ 105,053

323%

Total assets$ 1,776,930$ 1,793,483$ 1,830,378$ 1,783,142$ 1,780,324—%

Total liabilities$ 242,373$ 249,851$ 256,952$ 209,802$ 194,338

25%

Stockholders' equity$ 1,534,557$ 1,543,632$ 1,573,426$ 1,573,340$ 1,585,986

(3)

%

7,800

7,800

pps = percentage points

8

7,800

7,800

Marqeta, Inc.
Reconciliation of GAAP to NON-GAAP Measures(in thousands)(unaudited)

Information Regarding Non-GAAP Measures
In addition to the financial measures prepared in accordance with generally accepted accounting principles in
the United States (“GAAP”), this press release contains certain non-GAAP financial measures. Marqeta considers
Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted operating expenses as supplemental measures of thecompany’s performance that are not required by, nor presented in accordance with GAAP.
We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based
compensation expense; payroll tax related to share-based compensation; legal, financial, and tax due diligencecosts related to potential acquisitions; income tax expense (benefit); and other expense (income) net, which
consists of changes in the fair value of redeemable convertible preferred stock warrant liabilities (for periods
prior to the IPO), realized foreign currency gains and losses, interest income from our marketable securities, ourshare of equity method investments’ profit or loss, and impairment of equity method investments or otherfinancial instruments. We believe that Adjusted EBITDA is an important measure of operating performance
because it allows management and our board of directors to evaluate and compare our core operating results,
including our operating efficiencies, from period to period. Additionally, we utilize Adjusted EBITDA as an input
into our calculation of certain annual employee bonus plans.
Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net revenue. This measure is used bymanagement and our board of directors to evaluate our operating efficiency.
We define Adjusted operating expenses as total operating expenses adjusted to exclude depreciation andamortization; share-based compensation expense; payroll tax related to share-based compensation; and legal,financial, and tax due diligence costs related to potential acquisitions.
Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted operating expenses should not be considered inisolation, or construed as an alternative to net loss, or any other performance measures derived in accordancewith GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity.
In addition, other companies may calculate Adjusted EBITDA differently than Marqeta does, which limits its
usefulness in comparing Marqeta’s financial results with those of other companies.

9

The following table shows Marqeta's GAAP results reconciled to non-GAAP results included in this release:
Three Months Ended June 30,
2022

Six Months Ended June 30,

2021

2022

2021

GAAP net revenue$

186,678$

122,266$

352,780$

230,249

GAAP net loss$

(44,688)$(68,554)$(105,286)$(81,392)

GAAP net loss margin(24) %(56) %(30) %(35) %GAAP total operating expenses$

124,766$

114,961$

248,764$

175,470

GAAP net loss$

(44,688)$(68,554)$(105,286)$(81,392)

Depreciation and amortization expense
Share-based compensation expense

921

874

1,900

1,781

35,14855,536

72,153

66,928

423

939

1,258

939

(1,802)

481

9,875

2,648

Payroll tax expense related to share-based
compensation
Other expense (income), net
Income tax expense (benefit)
Adjusted EBITDA

(227)
$

Adjusted EBITDA Margin
GAAP Total operating expenses

(5)
$

$

(9)
$

(578)

(10,637)$%

114,961

(6)
$

106

(20,678)

248,764$%(8,990)(4)$%

175,470

921

874

1,900

1,781

35,14855,536

72,153

66,928

423

939

1,258

939

Payroll tax expense related to share-based
compensation
Adjusted operating expenses$%

124,766

Depreciation and amortization expense
Share-based compensation expense87(10,225)

88,274$

57,612$

173,453$

105,822

A reconciliation of Adjusted EBITDA to the comparable GAAP measure for the third quarter of 2022 is notavailable due to the challenges and impracticability with estimating some of the items as such items cannot bereasonably predicted and could be significant. Because of those challenges, reconciliations of such forwardlooking non-GAAP financial measures are not available without unreasonable effort.

10