MQ - Earnings call transcript Q3 2021

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Operator

Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to Marqeta's Third Quarter 2021 Earnings Conference Call. At this time, lines have been placed on mute to prevent any background noise. After the speakers' remarks, we will open the line for your questions.

As a reminder, this conference call is being recorded. to of call Investor like Finerman, to now President Vice Relations would turn over the Stacey I to begin.

Stacey Finerman

operator. Thanks

ended and our quarter may may with begin, and materially risks we statements set except them the that forward-looking we or XXXX, the XX-Q of September SEC. Relations from I like are the by does contain the call statements required to These Form and forward-looking filings These including as to for call as uncertainties, today. company in statements including Investor obligation filings intent XX, on Before the SEC, not periodic to subsequent our our subject quarterly statements. this which our any law. on time forward-looking Actual remind available would forth report today's update numerous everyone with forward-looking differ results only make those website of speak any assume are

Officer. includes These Reconciliations to Jason today's call and GAAP for earnings earnings over our that Relations measures. call financial on Financial available addition, CEO; press a are in measures GAAP which found I'd not materials, most Gardner, the website. are Hosting supplement like begin. a turn to Marqeta's release Peters, financial Chief With Investor directly to be as Faix, Operating considered Chief Tripp Marqeta's today's Marqeta's call Jason release to measures Vidya and Founder the comparable supplement In to today's Officer; and be substitute should non-GAAP can or measures.

Jason Gardner

and third ways card are results third to for Marqeta's and the quarter economy. power everyone modern you Thank I for quarter you Thank us joining using to digital share Marqeta's earnings excited Tripp the are issuing exciting we call. Stacey.

economy issuing strategic the discuss cover detail. pioneered deepen digital will financial results approach let's I powering is that our moat afternoon, greater how before card the modern industry. I quarter. our Later, then for this the in financial discuss off industry all will begin. of that in this an I will highlights discuss First Marqeta With to Tripp

providers to wave cryptocurrency technology net revenue, modern billion I look on-demand TPV, third we've We stay show highlight and just-in-time a a issuing card power enabling I the XXXX. cutting-edge is later unique, $XX Similar payment play new quarter the and new delivery role to seeing competitive. global believe processing Our the results of card card seen to issuing volume a types a increase third enable buy in how market. wealth Marqeta's legacy breadth our cases XX% impact or XXXX; looking from is XX% for Marqeta's heart compared to digital see having total in for same momentum modern of are card increase compared solutions this $XXX that scale at modern examples enables issuing. platform or the to services in card the issuing companies already of key a JIT of JIT, quarter Marqeta's all million pay who now of to use quarter movement. payment we're modern products. innovative funding at disruptors quarter, money of a same launch When of looking now, back of

point Coinbase, Fiat companies Fold allows cryptocurrency used spending rewards like from our to at Just-in-time be sale for consumers in a by crypto funding currency with on of highlighted Shakepay. Bakkt, wallet the and to tandem spent earn traditional and open API

it cryptocurrency recently real-time in huge balance our you side-by-side demonstrates this technology on For our a with application possibility technology. their based Fiat currency exciting Coinbase Marqeta card an swiping When having market. users, Bill.com, point-of-sale a in for with the is powered of put funded the the and in at our announced transaction partnership

yet with an issuing the and medium card little businesses when small payments Small to application the of access in in the represent we progress and point is the of have economy landscape. and access payment can solutions, to before Our $XX surface, We modern came ways Bill.com to movement time Bill.com the innovation card of a best-in-class partners having our its companies quarter already impact had global innovative but globally. midsized work engine along. like which This to customers. modern results comes businesses streamline trillion Marqeta save capabilities we only to many to plans enables our virtual the at API open Bill.com financial payment their Using market and money. room processes their card will scratching institution offer the it tremendous enterprise and issuing as tools, are level global another money are third and see we give proof estimate payment

strategic As opportunity, which we this market us deepen large service card pillars look competitive to this of will well growth, in issuing key moat. as we at help see four addressable as ocean our

adding Our pillar customers. first new

customers proposition it's ever strong as is for value new Our been. as

product, large Marqeta Fold highlighted legacy also put functionality. as added proven Bakkt buy shown spotlighted We've great new later already card crypto payments to account new is Figure's programs. native major entrants pay quarter, build we recently partnership Pay have cannot. issuers Figure I've platforms. large also with this powering with Coinbase for Bill.com. a of and products. can The And customers chose innovative to now We Shakepay, a several our a We and card this platform new digital range platform. innovators our Marqeta how institutions track record Marqeta legacy and of out-innovate can to new Simply market deliver that financial executing payment innovation outscale

for them has in card Uber our driver of pillar Our product we hours XXXX paid XX a card customer recently with a growing In days. existing which second carriers, partnership two our instead with expanding Freight our Branch, lets launched and and a customer power Marqeta we since expanded relationships relationship. base. been to new unique Uber get

announced this global Zip broadening Our and year pillar enabled our We Co. in third QX in office XX Marqeta in worldwide. is countries market. the partnership our with our of in successfully QX launched Australian reach.

European launched the momentum quarter. considerable in the Our XXXX of processed in in our growth European growth to We've and number year-over-year by market. in over third transactions business continues XXX% seen the customers see

addition, of In XXXX. Marqeta's XX, number the customers doubled we've since September European

live this up transact and excited own investment Deserve. the ability year, stock MX at product we critical their portfolio is attacking Our deepen Marqeta to partner The network. to we're Card flexible offer we MX went prepaid, their experience the with offering launch first they and fourth the issuing. platform first modern continued our believe to After priority rewards pillar Earlier for It's a the card brands when our in we to ensure card credit Rewards in the continuing of total back partnership our product modern to us to announced enable. onboard credit program expanding product month. is we're card Owner's its and in credit portfolio. a properly addressable by QX new our XX% in our innovative through unique moat makes issuing debit they It market reinvest and offers our and cash them competitive in ecosystem, This credit last programs of services. year, to clients offers card that strategic credit which launching

by new credit underserved happening is card opportunity similar quo credit our a offering To market that commitment XX% for are have strategic an of US, platform like card current massive to priority the card which done Marqeta, to the vision issuing the a of with highlight partners moment. Given ecosystem a critical spend credit market, is in we that disrupting for has Therefore, a credit bring for this I'd little our is experience. credit Marqeta. the who a industry. status modernize in With to is on this to working technology

Our Deserve modern will mobile-first partners be signals launched by modern being credit Through card consumer programs and incorporate through experiences. all ecosystem powered models first in mobile-first underwriting Marqeta this of card platform. a nontraditional

later Mastercard's Marqeta robust Alongside QX, embed named Amount type. with a merchant now crucial significant new launch opportunity power leverages installments This community for network allows technology easily a partners to of pay ecosystem which Mastercard's use and program payments payout our capture and build recently Marqeta payments. payment banks to tap were programs. of range us embed cases. In is as Fintechs front announced Synctera, buy into greater the Payfare, new to in more in addition into and the and partner to technology to infrastructure helping In new support to Banking-as-a-Service a market of us this, driver into partnerships we of products, we the a

Revenue you lead sales to worked to Peters Vidya to change inform and and led one Marqeta to operational would revenue, his our professional QX announce leader. Officer our Operating Marqeta. remarks. her excited three under XXth, XX feel I resigning functions we and will at lead go-to-market Officer. where a to I will thank as very positions superior Darren position Vidya in overall. time XXXX. be Marqeta's return greatest of success become his us Officer combine Cloud joining Officer that I it over him customer great to Vidya eliminated. is for prior these program extraordinary experience The am to our years entire Marqeta marketing, contributions heights. is Darren Darren's some to Chief effective addition June. wish brief decided departure, to will and has Vidya's will for has success. a like management Combining Chief Darren turn Marketing customer results, Chief Chief teams. it's experience Revenue of for We With now he the new November to Software functions at In Mowry Enterprise leadership

Vidya Peters

excitement front take strategy. vastly opportunity the to two Officer parts leadership overseeing scaling into at excited as been product the revenue across untapped thrilled running seen creating you I'm us. role of issuing and impactful while for the an cohesive industries, the Operating organization, and I'm growth Chief while speak industry Marqeta. behind I've business, different customers had our of opportunity card company, and them introduction of in In with you years to new past journey. the opportunity positions at the modern has unifying all Building interim engagement significant for a also a Thank this to at with today. I've Jason. the marketing, Marqeta, massive move on

and of tremendous sales, that ahead X% We we believe create We of vision go-to-market do. at adoption growth look currently about marketing, the and our all experience integrated We unified Thank this the the their and opportunity less process from success, you our experience will future with platform. across change we has can customer interaction the us. have I I'm and on back for delivery to their than sharing helped puts excited in customer you customers benefits us the Jason. create to world's an back effect. with and strategy first forward quarters transaction. you that of progress to a unified heart a

Jason Gardner

achieve entire Chief leader third see we as discuss even Rolling Faix, operation for go-to-market Financial to that, Marqeta as for under our With Marqeta's we Vidya results. what this global our company to new seamless role unified turn a you, the Thank financial up We one like to vision this create more it believe I'd and fit us over position. Officer quarter a Tripp of an can expand. Vidya. helps expands scope as

Tripp Faix

XXXX. XX% our by volume comparable Good by processing total revenue provide our net afternoon the the in Jason. growth third to million third and quarter. quarter of Total in XX% of of compared everyone. in in XXXX increased fourth quarter million from $XXX to the or share by slightly The revenue discuss the to quarter Thanks offset third primarily for quarter payments. increase excited financial driven $XX I'm XXXX, guidance TPV increases strong results was

on As processing revenue customers share our reminder, increase a are incentives platform. to to payments volumes

usage Gross platform $XX of add the pandemic. XXXX saw result. drivers and a profit XX% market additional on-demand outperformance QX quarter that delivery continue and growth We by volume platform, I very TPV perspective as XXXX growth XX% the XXX% due business, to XX% our some to Similar the to compared a to third from in our call by midst last XXXX of the $XX was existing of concentration increased increased As to customers government of the to processing in and $XX out of XX% XXXX, our we XX% of with driven of we in in customers peaks same billion, XXXX, year XX% quarter banking to of XXXX from versus increased ATM XX% our tailwinds We QX the TPV of to quarter. view of to third both third the adoption of growth in both key year-over-year other programs million want the million in result, the This increased a pleased that net $XX discuss BNPL and payments they volume. and and volume of from of our Gross by fees. fees of quarter million and the benefit the will I'll COVID to of was XXXX. within decreased to considerable growth expand of third TPV digital in as customers. compared from secular to of with highlight XXXX. primarily from pandemic. our to we increased grew in key from continued quarter top this to XXXX $XXX platform. increase stimulus part now new third was quarter indicator QX accelerated we're an customer reductions quarter some compared million quarter offset XXXX second in our interchange five our of as by our of the margin for customers' key add quarter in QX fees the the COVID non-top from the continue XXXX. customers Furthermore, in as the the the XX%

provided on card incentives one going network stated target. call, amended will higher and third in our are of business. in margin strategic a payments the $X Marqeta agreements be we operating to these did XXXX. this result to of to QX testament incentive As with million and the long-term with the a our note, we agreements expect achieved in catch-up in gross quarter which forward line we be our alignment relationships incentive benefit partners in powerful These leverage can that network strong both our a Of

ended a the benefit, have XX% month onetime our been margin would margin gross of period September the Furthermore XX%. nine achieved we this for quarter. Excluding gross XX, in have

was can As to not and Therefore, margin margin by our code, and quarterly that increase long-term in vary an second well results, in can committed we present we stock-based vary pay by as we our merchant, MCC remain discussed as our as network maintain investment our Overall, our quarter than considerably net type, to XX%. quarter-to-quarter margins transaction gross call, gross like. XX% driven during million rather and loss attention target card compensation. of continued or interchange fees GAAP $XX too-strict people between the

a represented we our new quarter-to-date as fact In third quarter net largest the employees welcomed Marqetan from hiring XX perspective. quarter-over-quarter

which negative positive XXXX. $X.X $XXX,XXX in had a was quarter EBITDA comparable we quarter, adjusted of driven of largely the compensation same spending business As was We non-GAAP compared quarter The of end the compensation-related million excluding of quarter costs, to invest the Marqetans. XX% the we as the this increased look by total back growth. critical basis, XXX view future to change a XXXX. for support On from the of into as to stock-based

invest global reach; with with of liquidity growth securities in are: and marketable our existing broadening is from ecosystem. the customers; We best four on Our the in that market. over of our in pillars adding that constant products end I'll people. is addressable our believe a growing billion our scratching new are quarter the our strategic that which of the cash capitalize ended customers; key second the and opportunity technology way guidance. to quarter. we available expanding Therefore, to on now and to $X.X our surface move We we feel just large

As the Net range press revenue current we million. would on fourth to basis. are a assumptions. $XXX of growth guidance represent our year-over-year our of $XXX for for expected XX% in be release, the the following of noted XXXX to on midpoint, the providing is this in million the based At quarter quarter we

for consumer sectors be and guidance line believe top fourth Our we especially which owning BNPL the to spending consumers and will quarter continued a from banking From revenue the their the full financing digital on reflects strength net represent perspective million be year strong basis. $XXX $XXX range XXXX, to purchases. million. the midpoint in XX% At holiday this would would of of a year-over-year the growth

talent to million. to would is into $XX moat the ahead very increased adjusted summary, range perspective, pleased adjusted our add about $X with to quarter our in primarily within we for $XX the strong million our negative we million. QX in technology range for and us opportunity modern to negative million customers Our our results investment of optimistic headcount teams as card takes Also, negative in This additional EBITDA In modern EBITDA the deepen product overall for year $XX issuing. be business, issuing. account the and of are look full negative card guidance and XXXX are our

Jason Gardner

Thanks us the to in going a Tripp. opportunity lot hear we you're front a from theme of Marqeta. It's huge see

here ever-deepening modern an on global at signed We enabled sustained. what to platform, events money more back the that out in time the question growth sectors our new that of next year, in Is economy ever. forward we're throughout felt mission-critical of geographies people money we technologies energized the Marqeta money and look would got growth to XXXX, out this are from seeing reporting large a of The we've where year-over-year the numbers all empower stack this: movement. consumers of would we one necessity. turned and question to considerable we peak remarkable at year sustainable? supported of We are look like out on sit When customers be During new we than

for I'd Operator? Now the call and over line like to turn operator the the to open Q&A.

Operator

Tien-Tsin with Our from JPMorgan. first is Please [Operator Huang question Instructions] proceed.

Tien-Tsin Huang

Thank buy sounds now you. later Strong results like really remains strong. It here. pay really,

said you think especially I strong.

growing can if us was I idea it's an now. So give wondering how fast you

up was is XXX% customer last it I it think correctly. how perspective? if I broad-based remember from a quarter curious And

Jason Gardner

in now grew later over Hey Jason. Buy Tien-Tsin, it's XXX% pay QX.

where to We the creating in type person pay to Affirm, focused Afterpay I of customers stay. The here point the seeing our really signs of lots live Klarna, that's see in close offline on continue at world. whether in Sezzle, sale we're new types -- to payment Zip, Klarna to Walnut is Creek, here payment

really we're seen So buy seeing pay We've about said last even talked in consumers we've strong later XX% user buy market. they're on tried what of just year this their usage area. we've growth survey in going pay to increase sustained last based now of year. from now the seen also XX% later

So later the pay here is stay. now buy to definitely usage

Tien-Tsin Huang

a getting as it's know it lot was of about about and Mastercard news. it Affirm I talking Yes. well. talked today

follow-up as Debit+ front? team attention. you involved that with I any on So I'm my with just of Jason this mind, are question and it's you if Affirm I curious way? Anything and say a lot a caught get you know, don't lot can that in

Jason Gardner

the that great I but powering Yes for partner Marqeta I in market, that years Debit+ partnership with can many a more any Debit+ beyond are confirm Affirm's can't until that comment been continuing card. and has Affirm of we it's card.

Tien-Tsin Huang

guys. lot Thanks a Perfect.

Operator

William from is Our Bob proceed. Please Blair. next with question Napoli

Bob Napoli

mix on give other -- are diversification the Nice what most five after growth? quarter. on-demand -- color helpful? now your from what maybe the don't can the largest lot the if buy growing later Tripp showing largest on than is sectors delivery? non-top versus any be pay that's expenses you And customer get are I other percentage number that well, questions Great especially know is a can versus now your job later customer and I that of but you would see on you. very the pay Thank the gave buy you to and on the

Tripp Faix

is well. to doing Good hope from I and hear you everyone Bob. you

ODD highlight highlight ODD, XXX% they And expense strength, vertical is in which year-over-year XXXX. so, that engagement. our XXX% in from achieve can platform. our year-over-year last the because we third on group Jason little stay. we have grew have the management of saw to believe we user over we reduction maybe strength strongly experiences have is that being grow year. on saw I'll that, for growth. QX I'd considerable banking believe want in People we BNPL we bit seen seen I'll say on which seen on digital that comment That comment said, commented peaks of item here that we is quarter. a which also I'll continued which our the some better from we did that We believe already

Bob Napoli

as where if think doubling on good Thank customers the your international follow-up more where give you're on could international the a next years? year-over-year, Europe you. growth And in hear you Jason And some strategy? little maybe having a you products. over the which to And color five success be and with the can

Jason Gardner

Tripp's also at comments, talked about between off to of draft We've currencies a Yeah. the ability the just And we're and and gateway creating companies cryptocurrencies really point seeing Coinbase like growth spend for sale. fiat of in crypto. also to

interconnected the Bob globe, wants Visa about whether and every online Mastercard accept issuing in phenomenon. So talked to a global have as merchant we offline modern that single is card cards. or

only will Zealand launched this We and global movement operate one I money value. doing that five XX,XXX and Europe. probably and the next and for U.S. see this years, and years happening thing not flowing to issuing next Australia, keep is exchange Canada. that drive card in modern the we'll into of happening you in the we year. We new see see happening definitely countries we it it New continue And So in in

Europe, in we tremendous Johnson's growth each we launched. consumers and specifically each are businesses people think we've seen runs Europe in businesses that when or Ian other, the area. and paying other, Marqeta before about So paying Under obviously existed consumers Europe leadership like other, who each in businesses, paying paying found have we growth nothing

is growing. And This in So, will That in year-over-year about number in the processed a with we've talked is absolutely XXX% year-to-year customers of numbers in countries. we the We've we've geared XX signed Europe. doubled Marqeta growth specifically on continue. all And have launched towards transactions basis. number that of issuing we the certainly card category money is about movement. build world, the next we over money-out and years. launching more modern the and five And continue modern in around only invented statements to money-in, card but that global to issuing going just opening are as services talked service not the

Bob Napoli

Thank you. I appreciate it.

Jason Gardner

You're welcome.

Operator

is Please Our with Ramsey from next question El-Assal Barclays. proceed.

Ramsey El-Assal

Hi. Thank this you question evening. my for taking

You've pertains slate And a new through can deal environment, was as if of to I and it strong you the announced specifically process competitive us such kind wondering of help wins. the think kind situations, you becomes it these of your that proposition after? more or is and you're whoever were kind competitive your going one-on-one a of capabilities such that value between of dance or such

Jason Gardner

thanks So the well, for question.

started choosing So customer Marqeta significant. our over card business we because is we're XX Marqeta the and ago. process numbers choose in scale. with issuing. Uber The We partnership Freight volume and that we Companies in the modern Branch Bill.com like this know leader years

time through busted the have scale We the all over years.

versus Bill.com like set much into inject success a okay in powerful capabilities, issuing our We ability for think card companies It metadata Marqeta's to card transaction virtual issuing. the about need about, modern a data, scale competitors. spend very the see us spend was alongside controls. when So of on differentiator sort what they

our a a to, of there's they go you can to not vast. our this products very customers The when on range new surface Square to like others and chose of can companies And industry as It's just imagine, build one to these about the with Bill.com I companies talk they you out platform. Marqeta. see is can of that and range area product. goes platform a speak think So they

seen test pick product, because market, Marqeta choose go they top or whether they find we've able Customers So know cards They that cards, products. to want issuing, of platform. Apple plastic can We want already cards build, in build to we've to other that begin virtual build they do card that they as Samsung want success, that product physical or in to on tokenized build Google what they modern our fit to scale. one to proven on they're build Pay or Pay wanted Pay or based markets. into go

when the Bill.com for we absolutely. are definitely us? provider a businesses, companies come but we the who obviously what see accomplish, Marqeta's we've believe and because So market choose Marqeta Sometimes. we been who and of competitors And Are their future. platform to winning of lot to always single-source we're in strong able a trust

Ramsey El-Assal

Okay.

I follow-up, of any you if but bit see wanted a I early to know thoughts it's provide As a kind could fiscal preliminary on XXXX.

Tripp Faix

Yes. Thank QX XXXX our comments earnings talk and few topic, we'll you. a On I'll more today. this but about call share

or then Whether Bill.com our emerging our with along ramp like by verticals and accelerate partnerships like absolutely our strengthen and take encouraged Freight XXXX wins as are time Uber, motion. the We will some verticals QX progress performance BNPL move crypto like our XXXX. or into it's out or recent our we finish to that year go-to-market and

macro know XXXX environment. you anticipated As we and benefiting stimulus both from the stronger COVID was than

XXXX strong And starting growth would I in we high as to anticipated. has a rates growth base expect rates be the larger not not and be long-term Business XXXX. with as changed. of revenue than will our We inputs XXXX view remain

expectations. strategy, is same Our the this building same long on business term, for focus

Ramsey El-Assal

so Got it. helpful. Thank much. Super you

Operator

Our proceed. Shirvaikar next Citi. with question is from Please Ashwin

Ashwin Shirvaikar

financial because announcements in Temenos the the – last on wanted double marketplace, congratulations looking like it to list good through I services many way, the you to potential opportunity long more a get gave consider wanted it congratulations, out to an could opportunity I of bit at you, within seemed several here if little I me Congratulations talk quarter. right pick I that? to Am it about have mean to them very a the And guess. embedded you I Yes. especially you the weeks. Vidya strong one I clients. of marketplaces? it

Jason Gardner

Yes.

to So partnerships. marketplaces where APIs allows This through us our we're providing platform. on focus the their Temenos creates

issuing card and you've So I is us the what we as do especially modern partnerships part think of around grow world. on seen a how we big grow

single foundation is relationship. trust the So every of

If partnerships have don't us what help trusting us about do to issuing, card And been learn and that. want relationships. you us where really modern able maybe we look know at these people areas, us created we've very our create platform in about to helps spread wings Temenos' long-term in really

Ashwin Shirvaikar

Got it.

a you year-over-year XQ tougher imagine higher just a Is should ask be watch And with how Tripp, regards details what from comp bit way perspective early the Okay. I think basis. I probably little in XXXX? but for seasonality would quarters a if stimulus. on it's or know XXXX of more the to I color to set still. a can of base up because from little good that of Any a is of it? spite for to that

Tripp Faix

QX XXXX to XXXX, is QX of holiday stimulus. call in little did this the highlighted It early QX, you're highlighted also earnings – season. and In it's absolutely me the in we have year QX And a or right. we addition of – today we excuse on

good talk And after so what to that's about, am year. quarterization, hopefully, I the for close we color more happy call you. some I'll But

Ashwin Shirvaikar

you. it. Got Thank Okay.

Operator

Darrin from is question Research. proceed. Peller Please next with Our Wolfe

Darrin Peller

XX% or whether what revenue expense talking accelerating, just the Square in or underscores looks of the the us last management, and BNPL, Nice from categories business diversification about, crypto. growth outside it's to guys. on the to Thanks, rate you're It XX% up strength over job the the like of plus quarter.

customers on those them likes doing more So would the so love well many. for entry just really of really going, are hear of because sustainable so topic, examples to each pick to a of at two what that's Marqeta But one can I just or that's you looking keep just give maybe been this is resonating, there's has us sense barriers truly just this how the in of of that with to areas, differentiated or technologically what given, guys enough that obviously quarter. maybe

Jason Gardner

customers are we or where Like, every moats supporting foundation I've products that's core They tall is are market of small whether As they're know either truly either that built medium thinking And Google or on business, or platform. we're scale. very by virtual about their our Apple operate or physical relationship deep to business, can a product experience. Samsung like the new to platform consumers, Goldman single be trust create massive issuing where are they many use businesses, that's our into plastic, about we card could single Bill.com, constituency, we've businesses their talked at like modern Pay, or it it's Marcus think in about card be the use or with fit based Pay, entering they walls for their debit tokenized like we core Pay, threaded, or our companies could be Sachs to how consumers. the whether of and

go we that to new you very we You really about got do people think point cryptocurrency as to wanted want about We always to crypto. who We do gateway, because do when this capture leveraged you a JIT. you want that we with felt So verticals, And to we've create at is all want understand it? experience, to gateway enter spend vertical create very thoughtful have best to a create go how sale, the of best that that go the we been vertical, that. that. to technology, the clear and a

on focused we So that.

attempting you market. to see years it's platform, new surface a we to they going to physical the we for build We in builds products company that entrants, to there. going and in four countries, to more within to the will get going – time the created. entry. the in services we're with continue scratch and market, we're get cards them begin mean, we're go their entering we very on when they've much new of they're going we're tokenized tell entrants and puck I get that regards help think hit you about do practices, and technology helping or and where what verticals, to lot virtual years, what them, future. products cards, spend new they as the is whether using and we the still get companies enter So we the existing market, in see our barriers to as or to cards been our to when We And two here new more

to grow that's quarter our do continue And to I We'll absolutely results. here. over by that evidenced third magic continue have We think and the business.

Darrin Peller

helpful. That's really

on tight Just talent but It's you a demand. strong a the guys been engineering very – market, quick follow-up very is on is have obviously to differentiate. seem talent to

ability And to Just obviously, your going touch for keep market. require is of that. on some in to a your this growth hiring minute

it appreciate Thanks. guys. I So

Jason Gardner

and it Because Marqeta global the absolutely it's just problem. is and hiring built a for a deceptively Yeah, tech is issuing not complex processing. problem, payments something we've competition

the bank, and complex, at then complex look issuing, card the acquiring the pillars of bank, acquiring technology. processing are issuing itself, you very we If four and issuing

really tend and So problems engineering or that engine the engineering dig ship to room the room, attract talent built. into of to we gone the the we've of wants really good like

we're public too sort company, do, that. understanding So we found like it attraction of – and being obviously your ups seeing I've also of of and is a what just the

Weber, recruiting have an Ryan and needs. will team strong the months, Chief global job meet done Officer. our We He also continue led in by few to Talent a just to has hire extraordinary last we very

Darrin Peller

lot, Good a guys. Thanks job.

Jason Gardner

Yes.

Operator

Our proceed. with Jeffrey is Andrew next Securities. Please Truist from question

Andrew Jeffrey

taking you guys. afternoon. Good Hi. the appreciate question I

cycle more of great customer how on the think you and touch You've the described bit or I'm the acquisition talk of Jason, But that? I like over drivers selling how of perhaps to kind cases about marketing about perhaps a cards. there. sort credit costs of than which the lot about some I I'd terms are see longer bank-issued broadly, wondering emerging traditional there opportunity little think and when looks what consumer a in and maybe and that attach next perhaps Can quarters should more think and it debit both takes you several cards and Bill.com use kind of of like we

Jason Gardner

Yes.

around consumer is debit the credit? revolving consumer and specifically So question

Andrew Jeffrey

Yes. cards. Traditional issued bank

Jason Gardner

Yes.

banking solutions in authorize now commerce buy to DNA disruptors; own awesome their to NXX with And Uber which on were doing by JPMorgan on companies felt delivery. very in the then created Lydia publicly like We went good focus talked Europe. to early then was and clean we've And Goldman the Sachs talked transactions, days Marqeta on in there. and and then Chase. digital financial about purpose-built there Google. Just-in-Time, in to JIT introducing a experience. them of We We institutions, a we large was about Square our customer work allowed So which very we And regards or large and crisp strategy the on-demand really that pay Marcus later; went to tech match management; expense giants.

are experience rethink in we success extremely Finance know we customer well. seen card So and know MX to Deserve. really credit scratch well, We've extremely the we partner the like from beginning market. and surface companies with within debit that card the to their business the We and credit and early wanted

we in our spread the So space. to wings are even beginning more credit

will us coming really more how from in to to regards coming hear the quarters You rethink certainly the in and years that.

going talked about a how That going XX% begin Europe. not growth help try we Asia. the and spread all it. are I within And out and market. on use consumer sort to within credit credit rethink cards do you're different. and more the customers both wallet, mean, pretty and this. going growing untapped and is to our Americans wings, of probably It's our our credit same figure see and maybe of today. want an they can the of away cards You to cards of lot credit of side business we the are see in approximately cards use the regards how as to consumers grow is, to rewards side to much We we have I part more capture We thing, definitely

our more upon other that So our our like features done early more that with begin we've in functions see to to and business and more and customers then we're absolutely products. and grow success just with investing

Andrew Jeffrey

little I acquisition sort of Yes. to talk How directly forward from think then growth? Bill, can piggyback the beginning And Do regard to you Okay. look can perspective? a about just on more. a them to contribute you that with go-to about to customer market? hearing bit we

Jason Gardner

core of their about talked we as yes, I support ecosystem. we -- support customers' products our we that or are Well, part products

over financial paid platform. now Bill.com's issued So be new represents using through cards And pay customers bills paying our major able institution faster efficiencies virtual and with will checks. it get Marqeta to

checks And is to only and love much JIT a for creating asking this. the and that to is it way trillion last be these cards approximately going them spend, So I There think a to land build to they great and we that we as begin just getting get when them what see has out. Federal totaling Marqeta in been Bill.com, faster started is using Rene work I'm Lacerte the believe their these customers for using we XXXX, think create I a paid. Bill.com, I've their the to And they together billion This go of excited to last something a great like to Reserve in complete the for -- obviously, products X.X written nerd of have. constituency. was build. me I data products in is some our and were known our service Bill.com not coding about. APIs step help constituency go actually of first card generate super direction want ability $XX a and probably decade. He's customers payment partner

Andrew Jeffrey

All to right. about Look that and sharing forward relationship matures how evolves.

Operator

proceed. [Operator with is question Bauch Our Nikko [ph] next Andrew Instructions] Please from Securities. CMBC

Andrew Bauch

were purely, year? be Hey or function a my better looks and quarter leverage a question. really fourth then as that guide and want came this revenue is the you in strength than of mean you're an operating is model may seeing where I the to well augmentation upon last of guys. there expectations. relative the efficiency I the to the Thanks bit It for in to taking strong just in quarter. relative the touch original EBITDA little

Tripp Faix

start and there. XXX% anticipated XXX%. we I'll outperformance that highlighted saw million accelerated Thanks to to question. due we BNPL of banking. on is, highlighted which negative strength things. EBITDA highlighted expense vertical, the quarter. higher than digital quarter our We for for this management We, grew adjusted in $X.X a and we we over That's revenue an obviously, One couple certainly the finished

that. In addition we receive from arrangements card our amended one and did we network of benefit

with profit. So we a finished higher gross

continue a business, incredible As here an is us. long-term. opportunity the of our and future to our goal invest hiring we're market business this growth. is TAM the of in have back to an we because number Marqeta Jason build in And folks support front That for said, will at incredible we to

Andrew Bauch

business new new asked, headlines and heard. I a way. to you No, all know new have market to I it also easy your When ecosystem, of customers. have plug-in and or you your to customers to customers you you level these but But been in I service on allow to a faster. about API different to may that get get a platform addition provide that an platform kind into that definitely a you're the And this want have bringing white thinking of glove-type ask these new in

client come timeline seeing usually look if model? like can maybe you so to transactions a through those new And sense of the from a the what's really signing get

Vidya Peters

the of their I'm program. size is what of the takes by case, happy constant us to the the time our with complexity level significantly for that use partnership vary our with take But them. onboard to of is customers industry, it question. The

we are So very right them side are with the program when alongside early crafting them. from talking program the discussions about by we the with and them side on,

to developers to program that so onboarding that time on they right And always card help design configure their remember, rely payments customers our from have the construct us You not and can the vary. it advice can way. are experts get so

could a financial when something today. you're of large get for to out. longer, experiment is market institution daring And and can quick talking small be about volumes and it a be So and that program large it fairly nimble with looking

in lot developing serve our we a across something there's industries because them, ahead. high So pride we experience have few these continue last with we really scale years and customers to both variance there of a the taken of over and great these that it's serve

Andrew Bauch

Vidya, helpful deserved. well color congratulations and a That's

Vidya Peters

Thanks, I appreciate it.

Operator

Josh from Please Beck is with Markets. today proceed. question Capital last KeyBanc Our

Josh Beck

Jason. over month. for years. to you question. high-level taking Money I last wanted out XX/XX important know the for, a question the event of That's an ask you I that for Thank maybe you're coming

of year now with for anyway. you'd you're would Obviously, little go curious there But pipeline trends hear the out closely love how big out later so involved the Just whether you there kind pay maybe just anything just characterize Obviously, to to it. if stood it's every any of of coming or buy of really if lot were a new leads. curious, crypto really you it's and an there. event context a learnings

Jason Gardner

Yes. Hi, XX/XX was Money Josh. interesting.

great. So last XX/XX a don't is people It who And the out started years, been conference canceled actually It call that fintech customers a with over from really with us year. beginning. Money it's what gave helped year. It's conference know message new prospects. is, wasn't And the a in our platform we grow for our when on was business and it's get it's thing. really who its XXth fintech the a even meet

before I to month attend a actually not made XX/XX, had of think Money the because we a about pandemic. So decision

and years identity. decentralized money, It two blockchains front moving We with. only It's a of but And up it One had three crypto the attendees a event only for prospects actually around spend during third. serve of crypto, was It attendees we a we connected We result, have same that even of new meeting people a lot What to great center. or ago us. with lot this ways that I saw some didn't finance dinners. think around sale sort Interestingly of X,XXX booth. not they the around went the rooms. lot we two and I we number set was leveraging a but create to of I saw was defy from first a there. had gateway X,XXX of in same been the was enough and number pandemic, interesting. controlling the a for point it of blockchain same not us was got XX to but sent creating to meetings, things, very a weeks. that then really was different stuff time always the

was I compliance back end leads the sort verify. thing, to talk tying KYC, And crypto it's AML lot and that's third, finding of things. I'm second all around crypto think see a into And the how about of around we're The saw interesting a finance. the around as and lot I this really that is to beginning which trust

very So is a money trust when important and moving you're of verify businesses' ecosystem. part the consumers both money and

sped compliance So and like you be I it's area whole see trust see to as I to refer this and verify. think crypto into when of really to what got you

continue products. more what's sure. to happen countries So, a We're I a next more I'm definitely around sort going to going lot going really see networks. next card Money But and has XX/XX around to We're I'm part always of will and future to think see what decentralized happens sort lot been see we in going more as to of year. astounded finance. new by be something a curious of the around we're for

Josh Beck

to Great. happen of one what's events. those year. next to It's going Yeah. see It's always fun

Jason Gardner

Yes. you attend? Did

Josh Beck

-- This go, I had ticket actually I teammates booking but my next my year for year I'm now. some didn't.

you be a for follow-up XXXX-XXXX. Tripp. for we'll Maybe So there

to wanted modeling how Just about ask of kind you're QX.

Obviously, is a that strength. you bit underway. well talked So certainly Later Pay Now Buy a about the trend that's

earnings bit concerns little other has bit dispersed e-commerce-oriented supply prior year. the might holiday other the that things it of a evolve be come or of differently some I that a chain little the season issues think One is this of calls and might more on up some than the more year that are

you you kind So of curious as just I'm QX. those balance forecast how for out the to were factors trying build

Tripp Faix

all, of excuse well -- the we're first again. chain of aware Josh, supply kind you great from marketplace. -- of We're and And to the Jeff Yeah. me hear

Now in tried crypto say be the coming we to those we I contributor And assumptions travel office. mentioned a our and it today We're vertical return Later. management a We that expect QX. Buy we as do early digital would banking. continued factor in highlight we about continued forecast will expense I on also of the strength of so quarter and some off highlighted expect Pay And is to in to Certainly, QX. elements people particularly that excited call, for from into to strength more great we're especially but as our expect we start growth. days.

Josh Beck

Really helpful. Tripp. Thanks,

Tripp Faix

Thank you.

Operator

We for conference back end have to to I closing of over our the like comments. the reached turn question-and-answer would Jason session.

Jason Gardner

Excellent. Thanks operator.

digital third want We as buy scaling to for their we're in closing, spend pay issuing for just our everyone enabling that the modern later now believe So I is money results shifts more experiencing the movement. us call. for for to powering from to quarter new cryptocurrency Marqeta's balances. customers' in modern quarter were to easily global our that joining a thank solutions heights our economy, card the served purpose-built cardholders testament

our of all Our Bill.com our platform. updating competitiveness recent the you new you. Uber to disruptive Thank of excellent already holidays wishes customer looking wins for year. to on quarter. points and Have of companies possibility the rest best like and Happy forward with the Freight are year. and a fourth proof I'm great

Operator

Thank today's you. That does conference. conclude

participation. lines this disconnect thank your may at your for time, You you and

Marqeta (MQ) 11 Nov 212021 Q3 Earnings call transcript