Total processing volume (TPV) increased by 33% year over year for the quarter to $62 billion, and by 34% annually for the entire fiscal year 2023 to $222 billion.

The company's second full quarter of financial results, which represent Marqeta's Q4 earnings, are in line with the Cash App contract renewal that went into force in July 2023. The change in revenue presentation brought about by the new Cash App contract resulted in a 59 percentage point negative growth impact, as Marqeta reported Q4 net revenue of $119 million, a 42% fall in net revenue. During the quarter, the company's gross profit was $83 million, a 4% decrease from the previous year. This was mostly because of the new Cash App price. Marqeta reported $676 million in net revenue and $330 million in gross profit for the entire 2023 fiscal year, which represents a 10% yearly reduction and a 3% annual growth, respectively.

Marqeta recorded an adjusted EBITDA income of $3 million and a GAAP net loss of $40 million for the quarter that concluded on December 31, 2023. The Company declared an adjusted EBITDA loss of $2 million and a GAAP net loss of $223 million for the year that concluded on December 31, 2023.

"2023 was transformative for Marqeta, as we enhanced our platform with new credit card program management capabilities, renewed the large majority of our processing volume to longer term deals, and delivered on operating efficiency," stated Simon Khalaf, CEO of Marqeta. "We are entering 2024 with a best-in-class product set, continued growth in Fintech, and exciting opportunities in embedded finance."

Latest Business News:

Marqeta revealed its first credit deals demonstrating early interest for its new products across several integrated finance use cases, from travel and entertainment to professional spend management, subsequent to the introduction of its redesigned credit card platform in October 2023:
Leading supplier of travel management software, Internet Travel Solutions (ITS), will introduce a multi-use travel and expense (T&E) commercial credit card for mid-sized businesses using Marqeta's extensive credit card platform.
Marqeta will be used by Affinipay to develop a customizable and adaptable credit solution that will be integrated right into its platform. Powered by Marqeta, Affinipay's LawPay Visa SMB revolving credit card will be the first all-inclusive solution in the legal sector to assist law firms with managing, tracking, and paying for firm and client expenses.

Fourth-quarter financial results for 2023:

From $47 billion for the quarter ended December 31, 2022, to $62 billion for the quarter ended December 31, 2023, TPV climbed by 33% year over year.
The $119 million in net revenue had a 42% year-over-year decline, mainly due to the renewal of the contract with Cash App, which permitted lower prices and also brought about modifications to the revenue presentation. The growth rate was negatively impacted by 59 percentage points due to the reduction of $120 million that resulted from fees owing to Issuing Banks and Card Networks regarding the Cash App primary Card Network volume. These fees are netted against income collected from the Cash App program within Net income. Before the June 30, 2023, quarter, these expenses.The fourth quarter of 2022 saw a 4% year-over-year decline in gross profit to $83 million from $87 million, mostly as a result of lower pricing from the Cash App renewal. The fourth-quarter gross margin was seventy percent.
The net loss climbed to $40 million, a 53% rise from the previous year, mostly due to acquisition-related expenses from Power Finance.
The fourth quarter of 2023 saw $3 million in adjusted EBITDA, an increase of $11 million from the previous year.

Complete Year 2023 Financial Outcomes:

From $166 billion in 2022 to $222 billion in 2023, TPV climbed by 34% annually.

Year-over-year, net revenue fell by $72 million, or 10%, mostly as a result of the Cash App contract renewal, which permitted lower prices and also changed how revenue was presented. The growth rate was negatively impacted by 31 percentage points due to the $234 million reduction in fees owing to Issuing Banks and Card Networks regarding the Cash App primary Card Network volume. These fees are offset against income collected from the Cash App program within Net income. These expenses were included in the cost of revenue in earlier periods.
Over the previous year, gross profit climbed by $10 million, or 3%. For the year that concluded on December 31, 2023, the gross margin was 49%.

The net loss climbed to $223 million, a 21% rise from the previous year, mostly due to acquisition-related costs associated with Power Finance.
For the year ending December 31, 2023, adjusted EBITDA showed a $2 million loss, an improvement of $40 million from the previous year.