Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you explain the rationale behind acquiring TransactPay instead of building similar capabilities internally? A: TransactPay is a bin sponsorship provider with an e-money institution license, allowing it to issue e-money and undertake payments in the UK and EU. Acquiring TransactPay allows Marqeta to become the bin sponsor, providing more control over offerings and simplifying contracting for customers. Building this capability internally would take several years, and TransactPay already has the specialized resources and proven performance, making it a seamless addition to Marqeta's value proposition. (Michael Milotich, Interim CEO and CFO)
Q: What does the pipeline look like after securing the airline partnership, and who did you compete against for this business? A: The pipeline is strong, with significant momentum in embedded finance. Approximately two-thirds of the pipeline consists of embedded finance customers, a significant increase from previous quarters. The airline partnership was won by offering a more engaging and embedded user experience, appealing to digital-first companies. (Michael Milotich, Interim CEO and CFO)
Q: Are you equipped to win large embedded finance deals, and what are the key components needed? A: Marqeta is well-positioned to win large embedded finance deals, offering a full solution provider package through APIs, including credit, debit, BNPL, and program management. Marqeta's platform supports global operations, providing a unique and differentiated offering that appeals to large companies looking for comprehensive solutions. (Michael Milotich, Interim CEO and CFO)
Q: Does the 2025 guidance assume the acquisition of TransactPay, and what is the expected timeline for GAAP profitability? A: Yes, the 2025 guidance assumes the acquisition of TransactPay in Q3. Marqeta expects to achieve GAAP profitability on a quarterly basis by the end of 2026, driven by gross profit growth outpacing expense growth, benefiting from scale and efficiency improvements. (Michael Milotich, Interim CEO and CFO)
Q: What are the main risks for Marqeta in 2025, and how do you plan to mitigate them? A: Key risks include macroeconomic factors affecting spending and the timing of new program launches, which depend on customer readiness. Marqeta mitigates these risks by maintaining close customer relationships and aligning on growth expectations. The company also focuses on expanding its service offerings and leveraging its growing installed base to drive growth. (Michael Milotich, Interim CEO and CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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