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Revenue for the card issuing platform rose 24% to $231 million, while total processing volume rose 33% to $54 billion. The revenue number beat the consensus of $219M.
Net loss per share was ($0.11) for the quarter, versus the consensus of ($0.10).
Marqeta also revealed its latest agreement: a four-year extension with Block. This extension ensures the ongoing provision of its widely-used Cash App card product. The prolonged arrangement to fuel the Cash Card is set to be operational from July 1, 2023, and will go through June 2027.
“We believe this renewal demonstrates the value Block sees in the Marqeta platform and this partnership, exemplified by Marqeta’s flexibility, innovation and breadth of service,” the company stated.
Analysts at Berenberg said the Cash App news removes a “significant overhang” on the stock, and upgraded the stock as a result.
While revenue concentration with Block remains very high, the uncertainty is now alleviated, the analysts commented.
“The importance of MQ’s extension of its agreement to serve as the issuer of the Cash App card is underlined by the fact that the company derived 78% of its net revenue from Block in Q223, up from 76% in Q123,” they noted.
The firm upgraded the stock to Buy from Hold with an $8 price target, suggesting 61% upside from Tuesday’s close.
