Marqeta (MQ) To Report Earnings Tomorrow: Here Is What To Expect

Petr Huřťák /
2022/11/08 2:15 am EST

Leading edge card issuer Marqeta (NASDAQ: MQ) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter Marqeta reported revenues of $186.6 million, up 52.6% year on year, beating analyst revenue expectations by 3.62%. It was a mixed quarter for the company, with 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 37.5% year on year to $180.9 million, slowing down from the 55.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.10 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 9.16%.

Looking at Marqeta's peers in the finance and HR software segment, some of them have already reported Q3 earnings results, giving us a hint what we can expect. Paylocity delivered top-line growth of 39.3% year on year, beating analyst estimates by 5.65%. Paylocity traded down 4.25% on the results. Read our full analysis of Paylocity's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 6.47% over the last month. Marqeta is down 2.4% during the same time, and is heading into the earnings with analyst price target of $11.10 compared to share price of $6.89.

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.