Earnings To Watch: Marqeta (MQ) Reports Q2 Results Tomorrow

Radek Strnad /
2022/08/09 5:03 am EDT

Leading edge card issuer Marqeta (NASDAQ: MQ) will be announcing earnings results tomorrow afternoon. Here's what to expect.

Last quarter Marqeta reported revenues of $166.1 million, up 53.8% year on year, beating analyst revenue expectations by 3%. It was a mixed quarter for the company, with an exceptional revenue growth but a decline in gross margin.

Is Marqeta buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Marqeta's revenue to grow 47.3% year on year to $180.1 million, slowing down from the 76.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.11 per share.

Marqeta Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing two upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 10.5%.

Looking at Marqeta's peers in the finance and HR software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Paylocity delivered top-line growth of 36.7% year on year, beating analyst estimates by 5.04% and Paycom Software reported revenues up 30.8% year on year, exceeding estimates by 2.7%. Paylocity traded up 5.09% on the results, and Paycom Software was up 1.69%. Read our full analysis of Paylocity's results here and Paycom Software's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 10.3% over the last month. Marqeta is up 25.9% during the same time, and is heading into the earnings with analyst price target of $12.1, compared to share price of $10.83.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.