Marqeta Earnings: What To Look For From MQ

Petr Huřťák /
2023/05/08 5:05 am EDT

Leading edge card issuer Marqeta (NASDAQ: MQ) will be reporting earnings tomorrow after market hours. Here's what you need to know.

Last quarter Marqeta reported revenues of $203.8 million, up 31.1% year on year, in line with analyst expectations. It was a decent quarter for the company, with a meaningful improvement 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 27.5% year on year to $211.8 million, slowing down from the 53.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 per share.

Marqeta Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 7.48%.

Looking at Marqeta's peers in the finance and HR software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Paychex delivered top-line growth of 8.23% year on year, beating analyst estimates by 2.39% and Paycom Software reported revenues up 27.8% year on year, exceeding estimates by 1.72%. Paychex traded up 5.56% on the results, Paycom Software was flat on the results.  Read our full analysis of Paychex's results here and Paycom Software's results here.

The whole tech sector has been facing a sell-off since late last year, and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.57% over the last month. Marqeta is down 5.19% during the same time, and is heading into the earnings with analyst price target of $6.8, compared to share price of $4.2.

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.