(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
(Nasdaq Global Select Market) |
Exhibit Number | Description | |||||||
10.1# | ||||||||
99.1 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
# | Indicates management contract or compensatory plan, contract, or agreement. |
MARQETA, INC. | |||||
Date: May 7, 2024 | /s/ Michael (Mike) Milotich | ||||
Michael (Mike) Milotich | |||||
Chief Financial Officer |
Grant Date | Vesting Commencement Date | Option Shares (#) | Exercise Price ($) | Expiration Date | ||||||||||
4/13/2021 | 4/13/2021 | 19,740,923 | 21.49 | 4/12/2031 | ||||||||||
5/5/2021 | 5/5/2021 | 47,267 | 23.40 | 5/4/2031 |
Grant Date | Vesting Commencement Date | Option Shares (#) | Exercise Price ($) | Expiration Date | ||||||||||
2/24/2019 | 2/24/2019 | 770,557 | 0.40 | 2/23/2029 | ||||||||||
5/5/2020 | 4/1/2020 | 458,334 | 2.25 | 5/4/2030 | ||||||||||
2/11/2021 | 1/1/2021 | 1,059,639 | 10.48 | 2/10/2031 | ||||||||||
2/11/2021 | 1/1/2021 | 150,000 | 10.48 | 2/10/2031 |
In thousands, except percentages and per share data. % change is calculated over the comparable prior-year period (unaudited) | Three Months Ended March 31, | % Change | ||||||||||||||||||
2024 | 2023 | |||||||||||||||||||
Financial metrics: | ||||||||||||||||||||
Net revenue | $ | 117,968 | $ | 217,343 | (46%) | |||||||||||||||
Gross profit | $ | 84,161 | $ | 89,164 | (6%) | |||||||||||||||
Gross margin | 71 | % | 41 | % | 30 ppts | |||||||||||||||
Total operating expenses | $134,013 | $176,597 | (24%) | |||||||||||||||||
Net loss | ($36,060) | ($68,801) | 48% | |||||||||||||||||
Net loss margin | (31 | %) | (32 | %) | 1 ppts | |||||||||||||||
Net loss per share - basic and diluted | ($0.07) | ($0.13) | 46% | |||||||||||||||||
Key operating metric and Non-GAAP financial measures: | ||||||||||||||||||||
Total Processing Volume (TPV) (in millions) 1 | $ | 66,666 | $ | 50,020 | 33% | |||||||||||||||
Adjusted EBITDA 2 | $9,228 | ($4,346) | 312% | |||||||||||||||||
Adjusted EBITDA margin 2 | 8 | % | (2 | %) | 10 ppts | |||||||||||||||
Non-GAAP operating expenses 2 | $ | 74,933 | $ | 93,510 | (20%) |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Net revenue | $ | 117,968 | $ | 217,343 | ||||||||||
Costs of revenue | 33,807 | 128,179 | ||||||||||||
Gross profit | 84,161 | 89,164 | ||||||||||||
Operating expenses: | ||||||||||||||
Compensation and benefits | 108,111 | 147,759 | ||||||||||||
Technology | 13,118 | 14,590 | ||||||||||||
Professional services | 3,870 | 5,437 | ||||||||||||
Occupancy | 1,094 | 1,154 | ||||||||||||
Depreciation and amortization | 3,537 | 1,980 | ||||||||||||
Marketing and advertising | 378 | 441 | ||||||||||||
Other operating expenses | 3,905 | 5,236 | ||||||||||||
Total operating expenses | 134,013 | 176,597 | ||||||||||||
Loss from operations | (49,852) | (87,433) | ||||||||||||
Other income, net | 13,926 | 11,672 | ||||||||||||
Loss before income tax expense | (35,926) | (75,761) | ||||||||||||
Income tax expense (benefit) | 134 | (6,960) | ||||||||||||
Net loss | $ | (36,060) | $ | (68,801) | ||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.07) | $ | (0.13) | ||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 517,987,361 | 539,744,130 |
March 31, 2024 | December 31, 2023 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 970,357 | $ | 980,972 | |||||||
Restricted cash | 8,500 | 8,500 | |||||||||
Short-term investments | 228,324 | 268,724 | |||||||||
Accounts receivable, net | 23,422 | 19,540 | |||||||||
Settlements receivable, net | 36,511 | 29,922 | |||||||||
Network incentives receivable | 54,223 | 53,807 | |||||||||
Prepaid expenses and other current assets | 26,830 | 27,233 | |||||||||
Total current assets | 1,348,167 | 1,388,698 | |||||||||
Operating lease right-of-use assets, net | 5,814 | 6,488 | |||||||||
Property and equipment, net | 28,138 | 18,764 | |||||||||
Intangible assets, net | 34,167 | 35,631 | |||||||||
Goodwill | 123,523 | 123,523 | |||||||||
Other assets | 18,552 | 16,587 | |||||||||
Total assets | $ | 1,558,361 | $ | 1,589,691 | |||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 916 | $ | 1,420 | |||||||
Revenue share payable | 189,864 | 173,645 | |||||||||
Accrued expenses and other current liabilities | 147,802 | 161,514 | |||||||||
Total current liabilities | 338,582 | 336,579 | |||||||||
Operating lease liabilities, net of current portion | 4,080 | 5,126 | |||||||||
Other liabilities | 5,034 | 4,591 | |||||||||
Total liabilities | 347,696 | 346,296 | |||||||||
Stockholders' equity : | |||||||||||
Preferred stock | — | — | |||||||||
Common stock | 52 | 52 | |||||||||
Additional paid-in capital | 2,072,692 | 2,067,776 | |||||||||
Accumulated other comprehensive (loss) income | (824) | 762 | |||||||||
Accumulated deficit | (861,255) | (825,195) | |||||||||
Total stockholders’ equity | 1,210,665 | 1,243,395 | |||||||||
Total liabilities and stockholders' equity | $ | 1,558,361 | $ | 1,589,691 |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (36,060) | $ | (68,801) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 3,537 | 1,980 | |||||||||
Share-based compensation expense | 44,434 | 45,999 | |||||||||
Non-cash postcombination compensation expense | — | 32,430 | |||||||||
Non-cash operating leases expense | 674 | 607 | |||||||||
Amortization of premium (accretion of discount) on short-term investments | (978) | (975) | |||||||||
Other | 181 | 209 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (4,271) | 1,554 | |||||||||
Settlements receivable | (6,589) | 6,768 | |||||||||
Network incentives receivable | (416) | (16,702) | |||||||||
Prepaid expenses and other assets | 538 | 7,203 | |||||||||
Accounts payable | 115 | 224 | |||||||||
Revenue share payable | 16,219 | 4,674 | |||||||||
Accrued expenses and other liabilities | (16,020) | (24,907) | |||||||||
Operating lease liabilities | (938) | (809) | |||||||||
Net cash provided by (used in) operating activities | 426 | (10,546) | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | (1,191) | (577) | |||||||||
Capitalization of internal-use software | (5,307) | (3,032) | |||||||||
Business combination, net of cash acquired | — | (131,914) | |||||||||
Purchases of short-term investments | — | (70,807) | |||||||||
Maturities of short-term investments | 40,000 | 108,000 | |||||||||
Net cash provided by (used in) investing activities | 33,502 | (98,330) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from exercise of stock options, including early exercised stock options, net of repurchase of early exercised unvested options | 49 | 1,016 | |||||||||
Taxes paid related to net share settlement of restricted stock units | (10,917) | (3,746) | |||||||||
Repurchase of common stock | (33,675) | (21,826) | |||||||||
Net cash used in financing activities | (44,543) | (24,556) | |||||||||
Net decrease in cash, cash equivalents, and restricted cash | (10,615) | (133,432) | |||||||||
Cash, cash equivalents, and restricted cash- Beginning of period | 989,472 | 1,191,646 | |||||||||
Cash, cash equivalents, and restricted cash - End of period | $ | 978,857 | $ | 1,058,214 |
2024 | 2023 | Year over Year Change Q1'24 vs Q1'23 | ||||||||||||||||||||||||||||||||||||
First Quarter | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | ||||||||||||||||||||||||||||||||||
Operating performance: | ||||||||||||||||||||||||||||||||||||||
Net revenue | $ | 117,968 | $ | 118,822 | $ | 108,891 | $ | 231,115 | $ | 217,343 | (46 | %) | ||||||||||||||||||||||||||
Costs of revenue | 33,807 | 35,589 | 36,383 | 146,506 | 128,179 | (74 | %) | |||||||||||||||||||||||||||||||
Gross profit | 84,161 | 83,233 | 72,508 | 84,609 | 89,164 | (6 | %) | |||||||||||||||||||||||||||||||
Gross margin | 71 | % | 70 | % | 67 | % | 37 | % | 41 | % | 30 | ppts | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||||||||
Compensation and benefits | 108,111 | 109,203 | 115,846 | 126,788 | 147,759 | (27 | %) | |||||||||||||||||||||||||||||||
Technology | 13,118 | 13,938 | 13,930 | 13,154 | 14,590 | (10 | %) | |||||||||||||||||||||||||||||||
Professional services | 3,870 | 7,172 | 4,197 | 4,873 | 5,437 | (29 | %) | |||||||||||||||||||||||||||||||
Occupancy and equipment | 1,094 | 1,076 | 1,074 | 1,057 | 1,154 | (5 | %) | |||||||||||||||||||||||||||||||
Depreciation and amortization | 3,537 | 3,159 | 3,108 | 2,494 | 1,980 | 79 | % | |||||||||||||||||||||||||||||||
Marketing and advertising | 378 | 1,219 | 346 | 561 | 441 | (14 | %) | |||||||||||||||||||||||||||||||
Other operating expenses | 3,905 | 3,804 | 3,833 | 5,103 | 5,236 | (25 | %) | |||||||||||||||||||||||||||||||
Total operating expenses | 134,013 | 139,571 | 142,334 | 154,030 | 176,597 | (24 | %) | |||||||||||||||||||||||||||||||
Loss from operations | (49,852) | (56,338) | (69,826) | (69,421) | (87,433) | 43 | % | |||||||||||||||||||||||||||||||
Other income (expense), net | 13,926 | 14,932 | 15,074 | 10,762 | 11,672 | 19 | % | |||||||||||||||||||||||||||||||
Loss before income tax expense | (35,926) | (41,406) | (54,752) | (58,659) | (75,761) | 53 | % | |||||||||||||||||||||||||||||||
Income tax expense (benefit) | 134 | (1,030) | 238 | 138 | (6,960) | (102 | %) | |||||||||||||||||||||||||||||||
Net loss | $ | (36,060) | $ | (40,376) | $ | (54,990) | $ | (58,797) | $ | (68,801) | 48 | % | ||||||||||||||||||||||||||
Loss per share - basic and diluted | $ | (0.07) | $ | (0.08) | $ | (0.10) | $ | (0.11) | $ | (0.13) | 46 | % | ||||||||||||||||||||||||||
TPV (in millions) | $ | 66,666 | $ | 61,979 | $ | 56,650 | $ | 53,615 | $ | 50,020 | 33 | % | ||||||||||||||||||||||||||
Adjusted EBITDA | $ | 9,228 | $ | 3,292 | $ | (2,062) | $ | 824 | $ | (4,346) | 312 | % | ||||||||||||||||||||||||||
Adjusted EBITDA margin | 8 | % | 3 | % | (2 | %) | — | % | (2 | %) | 10 | ppts | ||||||||||||||||||||||||||
Financial condition: | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 970,357 | $ | 980,972 | $ | 947,749 | $ | 950,157 | $ | 1,050,414 | (8 | %) | ||||||||||||||||||||||||||
Restricted cash | $ | 8,500 | $ | 8,500 | $ | 7,800 | $ | 9,375 | $ | 7,800 | 9 | % | ||||||||||||||||||||||||||
Short-term investments | $ | 228,324 | $ | 268,724 | $ | 349,395 | $ | 432,354 | $ | 408,675 | (44 | %) | ||||||||||||||||||||||||||
Total assets | $ | 1,558,361 | $ | 1,589,691 | $ | 1,603,249 | $ | 1,704,143 | $ | 1,774,183 | (12 | %) | ||||||||||||||||||||||||||
Total liabilities | $ | 347,696 | $ | 346,296 | $ | 308,166 | $ | 331,528 | $ | 340,533 | 2 | % | ||||||||||||||||||||||||||
Stockholders' equity | $ | 1,210,665 | $ | 1,243,395 | $ | 1,295,083 | $ | 1,372,615 | $ | 1,433,650 | (16 | %) |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
GAAP net revenue | $ | 117,968 | $ | 217,343 | ||||||||||
GAAP net loss | $ | (36,060) | $ | (68,801) | ||||||||||
GAAP net loss margin | (31 | %) | (32 | %) | ||||||||||
GAAP total operating expenses | $ | 134,013 | $ | 176,597 | ||||||||||
GAAP net loss | $ | (36,060) | $ | (68,801) | ||||||||||
Depreciation and amortization expense | 3,537 | 1,980 | ||||||||||||
Share-based compensation expense | 44,434 | 45,999 | ||||||||||||
Payroll tax expense related to share-based compensation | 1,165 | 640 | ||||||||||||
Acquisition-related expenses (1) | 9,944 | 34,468 | ||||||||||||
Other (income) expense, net | (13,926) | (11,672) | ||||||||||||
Income tax expense (benefit) | 134 | (6,960) | ||||||||||||
Adjusted EBITDA | $ | 9,228 | $ | (4,346) | ||||||||||
Adjusted EBITDA Margin | 8 | % | (2 | %) | ||||||||||
GAAP Total operating expenses | $ | 134,013 | $ | 176,597 | ||||||||||
Depreciation and amortization expense | (3,537) | (1,980) | ||||||||||||
Share-based compensation expense | (44,434) | (45,999) | ||||||||||||
Payroll tax expense related to share-based compensation | (1,165) | (640) | ||||||||||||
Acquisition-related expenses | (9,944) | (34,468) | ||||||||||||
Non-GAAP operating expenses | $ | 74,933 | $ | 93,510 |
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