Marqeta Q4 Earnings: What To Look For From MQ

Adam Hejl /
2022/03/08 6:08 am EST

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

Last quarter Marqeta reported revenues of $131.5 million, up 56% year on year, beating analyst revenue expectations by 10.3%. It was an incredible quarter for the company, with a significant improvement in gross margin and an impressive beat of analyst estimates.

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 56.2% year on year to $137.7 million. Adjusted loss is expected to come in at -$0.06 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 since going public on average by 13.1%.

Looking at Marqeta's peers in the finance and HR software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Flywire delivered top-line growth of 54.6% year on year, beating analyst estimates by 24.8% and Zuora reported revenues up 14.3% year on year, exceeding estimates by 0.36%. Flywire traded up 10.3% on the results, Zuora was up 3.89%. Read our full analysis of Flywire's results here and Zuora's results here.

Technology stocks have been hit hard on fears of higher interest rates and software stocks have not been spared, with share price down on average 16.1% over the last month. Marqeta is down 7.66% during the same time, and is heading into the earnings with analyst price target of $21.4, compared to share price of $9.4.

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.