Marqeta Inc. exceeded sales expectations on Wednesday and issued a positive sales forecast in the financial technology company’s first earnings report since going public.
The company that operates debit card issuance for hot tech companies like Square Inc. SQ, -0.73% and DoorDash Inc. DASH, + 0.21%,
reported a net loss of $ 68.6 million, or 29 cents per share, for the second quarter, compared to a loss of $ 7.1 million, or 6 cents per share, last year. Analysts tracked by FactSet expected a GAAP loss of 7 cents per share.
The fintech company stated in its earnings announcement that “a significant increase in gross profit was offset by higher employee-related costs”.
Marqeta’s net revenue, -0.13%, rose from $ 69.4 million to $ 122.3 million while analysts had modeled $ 105.3 million. The company’s total payment volume was $ 26.5 billion, up from $ 15.1 billion last year.
The company continued to benefit from the increasing adoption of Instant Pay Later (BNPL) services as companies like Affirm Holdings Inc. AFRM, + 4.67% and Afterpay Ltd. AFTPY, + 0.05% are Marqeta partners. The net sales of the BNPL industry increased by 350% compared to the previous year.
“Our revenues show a huge appetite for modern card issuance, demand in various industries and rapid growth with our customers,” said Chief Executive Jason Gardner in Marqeta’s earnings announcement.
For the third quarter, Marqeta expects revenues of 114 to 119 million US dollars, while analysts had expected 109.6 million US dollars.
Marqeta went public in June and the company is now valued at $ 16 billion. It provides technology for companies looking to issue debit cards for various business purposes and is known for helping its customers develop bespoke products.
Marqeta’s technology helps delivery platforms ensure that drivers are able to collect and pay for customer orders without having to make additional purchases for themselves. The technology also applies to the BNPL companies, who often use “virtual cards” behind the scenes to allow shoppers to split their purchases into installments.