The data: Marqeta’s total processing volume (TPV) grew 41% year over year (YoY) in Q4, compared with a 76% increase the same period the prior year, per its earnings release. Net revenues in Q4 reached $204 million, growing 31% YoY—a slowdown from 76% the year before.
How we got here: Block made up 74% of Marqeta’s revenues in Q4, up from 72.5% the prior quarter. Block’s revenue contribution was primarily driven by Cash App, with Afterpay and the Square debit card also playing a role, Marqeta CFO Mike Milotich said on the company’s earnings call.
Here’s a breakdown of Marqeta’s TPV performance on a vertical basis.
What’s next? Marqeta anticipates a modest slowdown in consumer and business spending in 2023—though not to the extent that a recession would bring. But the firm is optimistic about long-term growth as it explores new opportunities in wage access and disbursement, accounts payable, and point-of-sale lending, according to new CEO Simon Khalaf.
The company has also noticed business demand moving away from fintechs and toward larger financial institutions in the last few quarters—therefore, Marqeta intends to focus on increasing loyalty for these larger businesses.
Marqeta outlined three key priorities for 2023.
Marqeta is also focused on renewing its contract with Block. Execs said they were confident that the firms would reach a deal this year, but without one, Marqeta could lose a big chunk of volume and revenues after its current arrangement expires in 2024.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
11 Times SquareNew York, NY 100361-800-405-0844