Marqeta Earnings: Slowing Revenue Growth Leads to Disappointing Results

No-moat-rated Marqeta reported weak third-quarter earnings as the firm’s revenue growth decelerates. Net revenue increased 18% from the previous year and 2% from the previous quarter to $128 million. Meanwhile, the firm’s net loss improved to $28.6 million from $55 million. These results were a bit weaker than we had expected, and Marqeta’s fourth-quarter guidance calls for further growth deceleration, with the firm looking for revenue growth between 10% and 12%. This is problematic as Marqeta has still not gained enough scale against its fixed costs to become profitable and needs to expand its business outside its contracts with Block to reduce its customer concentration problems.