Business Wire | Nov 10, 2021 04:06PM EST

Marqeta Third Quarter Earnings Report Shows 56 Percent Jump in Net Revenue Year Over Year, Highlighting Strong, Continued Growth

Nov. 10, 2021

OAKLAND, Calif.--(BUSINESS WIRE)--Nov. 10, 2021--Marqeta, Inc. (NASDAQ: MQ), the global modern card issuing platform, today reported financial results for the third quarter ended September 30, 2021.

Marqeta reported total processing volume (TPV) of $27.6 billion, with net revenue of $132 million. This represented an increase of 60% and 56%, respectively, from the same quarter of 2020. The company saw gross profit of $59 million during the quarter, up 67% year-over-year. The company reported a gross margin of 45% for the quarter ended September 30, 2021, up from 42% in the same quarter of 2020. Marqeta reported a gross margin for the first nine months of 2021 of 43%, up from 40% for the corresponding period of 2020. It also reported a GAAP net loss of $45.7 million and Adjusted EBITDA of $(4.9) million for the quarter ended September 30, 2021.

"Modern card issuing is at the heart of today's digital economy, and our third quarter results put that on display, both with the growth we're seeing, and the way our platform is bringing to life unique new payments use cases for an incredible array of innovators," said Jason Gardner, Founder and CEO of Marqeta.

Marqeta highlighted several recent key business updates that show off its momentum in the market:

* Marqeta announced significant new customers: Bill.com will leverage Marqeta's solution to help its financial institution partners and their customers to streamline their payment processes by using virtual cards, and Figure selected Marqeta to power its Figure Pay digital account which has built-in Buy Now, Pay Later (BNPL) functionality. * Marqeta spotlighted the rise of a new category of card solutions allowing its customers' cardholders to make purchases at the point of sale in fiat currency using their cryptocurrency wallets, or earn cryptocurrency rewards on their spending, with category leaders Coinbase, Fold, Shakepay and Bakkt all leveraging its modern card issuing platform. * The Marqeta platform supported the launch of new card programs from existing major customers: Uber Freight launched a unique driver card for its carriers, which lets carriers get paid out for their earnings 99.7% faster than the industry standard. * Marqeta's European business continues to show strong growth. The number of transactions processed by Marqeta's European customers in the third quarter of 2021 increased by over 340% year-over-year. Similarly, since September 30, 2020, Marqeta has doubled its European customer base. * Marqeta continued to expand its product and partner ecosystem. After launching its first credit program in the second quarter of this year, Marqeta continued to onboard new credit card programs, with M1 Finance going live in third quarter, and Marqeta was named as a launch partner for Mastercard's Installments Program, which builds in the tech infrastructure among payment acquirers to support BNPL programs.

Financial and Operating Highlights

(Dollars inthousandsexcept per Three Months Ended Nine Months Endedshare September 30, % September 30, %amounts oras noted) Change Change(unaudited)

2021 2020 2021 2020

Financial metrics:

Net revenue $ 131,512 $ 84,306 56% $ 361,761 $ 202,096 79%

Gross $ 59,074 $ 35,282 67% $ 155,906 $ 81,461 91%profit

Gross 45 % 42 % 3 pps 43 % 40 % 3 ppsmargin

Net loss $ (45,730) $ (12,298) 272% $ (127,122) $ (33,935) 275%

Net loss (35) % (15) % (20) (35) % (17) % (18)margin pps pps

Net lossper share - $ (0.08) $ (0.10) (20)% $ (0.42) $ (0.28) 50%basic anddiluted ^1

Keyoperatingmetric andNon-GAAP financialmeasures ^2:

TotalProcessingVolume $ 27,569 $ 17,250 60% $ 78,087 $ 41,327 89%(TPV) (inmillions)

Adjusted $ (4,939) $ 686 (820)% $ (13,929) $ (12,754) 9%EBITDA ^3

Adjusted (5) (2)EBITDA (4) % 1 % pps (4) % (6) % ppsmargin ^3

1 Net loss per share is computed by dividing net loss by the weighted average of common shares and dilutive common shares outstanding during the period.

2 We track a number of operating and financial metrics, including the key metric set forth in this table (Total Processing Volume), to help evaluate our business and growth trends, establish budgets, evaluate the effectiveness of our investments, and assess operational efficiencies. Total Processing Volume (TPV) represents the total dollar amount of payments processed through our platform, net of returns and chargebacks. We believe that TPV is a key indicator of the market adoption of our platform, growth of our brand, growth of our customers' businesses and scale of our business.

3 See "Information Regarding Non-GAAP Measures" for definitions of Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation of the net loss to Adjusted EBITDA.

Third Quarter Financial Results:

Net revenue increased by $47.2 million, or 56% year-over-year, rising to $131.5 million from $84.3 million in the third quarter of 2020 resulting from a 60% increase in TPV year-over-year.

Gross profit increased by 67% year-over-year, rising to $59.1 million, from $35.3 million in the third quarter of 2020 due to our TPV growth and increased Card Network incentives from a contract that was amended in the third quarter to include more favorable incentive payments to the Company .

Gross margin increased from 42% in the third quarter of 2020 to 45% during the third quarter of 2021. Gross margin in the third quarter of 2021 was helped by a Card Network Incentive contract that was amended in the third quarter of 2021 and which reduced our cost of revenues.

Net loss increased by $33.4 million, or 272%, year-over-year to $45.7 million resulting from our increase in gross profit, offset by an increase in compensation, benefits and technology expenses as we continued our investment in our people and platform.

Total Processing Volume increased by 60% year-over-year, rising to $27.6 billion from $17.2 billion in the third quarter of 2020.

Adjusted EBITDA in the third quarter of 2021 was $(4.9) million, a decrease of $(5.6) million year-over-year.

Financial Guidance

The following summarizes Marqeta's guidance for the fourth quarter of 2021:

Fourth Quarter 2021

Net revenue $134 - $139 million



Adjusted EBITDA ^(1) $(10) - $(7) million

^(1) See "Information Regarding Non-GAAP Measures" for the definition ofAdjusted EBITDA and for information regarding non-availability of a forwardreconciliation.

Conference Call

Marqeta will host a live conference call today at 1:30 p.m. Pacific time (4:30 p.m. Eastern time). To join the call, please dial-in 10 minutes in advance: toll-free at 1-877-407-4018 or direct at 1-201-689-8471. The conference call will also be available live via webcast online at http://investors.marqeta.com.

The telephone replay dial-in numbers are 1-844-512-2921 and 1-412-317-6671 and will be available until November 24, 2021, 8:59 p.m. Pacific time (11:59 p.m. Eastern time). The confirmation code for the replay is 13723994.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements expressed or implied in this press release include, but are not limited to, statements relating to Marqeta's guidance for the quarter ending December 31, 2021; statements regarding Marqeta's business plans, business strategy and the continued success and growth of our customers; expectations regarding new use cases for Marqeta's platform ability; and statements made by Marqeta' Founder and CEO. Actual results may differ materially from the expectations contained in these statements due to risks and uncertainties, including, but not limited to, the following: the effect of uncertainties related to the global COVID-19 pandemic on U.S. and global economies, our business, results of operations, financial condition, demand for our platform, sales cycles and customer retention; the risk that Marqeta is unable to further attract, retain, diversify, and expand its customer base; the risk that Marqeta is unable to drive increased TPV on its platform; the risk that consumers and customers will not perceive the benefits of Marqeta's products as Marqeta expects; the risk that Marqeta's technology platform, including hosted solutions, do not operate as intended resulting in system outages; the risk that Marqeta will not be able to achieve the cost structure that Marqeta currently expects; the risk that Marqeta's solution will not achieve the expected market acceptance; the risk that competition could reduce expected demand for Marqeta's services; the risk that changes in the regulatory landscape adversely affects the gross interchange or other revenue Marqeta earns or adversely affects the bank and network costs Marqeta incurs; and the risk that Marqeta may be subject to additional risks such as currency fluctuations due to its international business activities. Detailed information about these risks and other factors that could potentially affect Marqeta's business, financial condition and results of operations are included in the "Risk Factors" disclosed in its Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021, as such risk factors may be updated from time to time in Marqeta's periodic filings with the SEC, available at www.sec.gov and Marqeta's website at http://investors.marqeta.com

The forward-looking statements in this press release are based on information available to Marqeta as of the date hereof. Marqeta disclaims any obligation to update any forward-looking statements, except as required by law.

Disclosure Information

Investors and others should note that Marqeta announces material financial information to its investors using its investor relations website, SEC filings, press releases, public conference calls and webcasts. Marqeta also uses social media to communicate with its customers and the public about Marqeta, its products and services and other matters relating to its business and market. It is possible that the information Marqeta posts on social media could be deemed to be material information. Therefore, Marqeta encourages investors, the media, and others interested in Marqeta to review the information we post on social media channels including the Marqeta Twitter Feed and the Marqeta LinkedIn Feed. These social media channels may be updated from time to time.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled "Information Regarding Non-GAAP Financial Measures".

About Marqeta, Inc.

Marqeta's modern card issuing platform empowers its customers to create customized and innovative payment cards. Marqeta's modern architecture gives its customers the ability to build more configurable and flexible payment experiences, accelerating time-to-market and democratizing access to card issuing technology. Marqeta's open APIs provide instant access to highly scalable, cloud-based payment infrastructure that enables customers to launch and manage their own card programs, issue cards and authorize and settle payment transactions. Marqeta is headquartered in Oakland, California and is certified to operate in 36 countries globally.

Marqeta(r) is a registered trademark of Marqeta, Inc.

Marqeta, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except share and per share amounts)

(unaudited)

Three Months Ended September Nine Months Ended September 30, 30,

2021 2020 2021 2020

Net revenue $ 131,512 $ 84,306 $ 361,761 $ 202,096

Costs of revenue 72,438 49,024 205,855 120,635

Gross profit 59,074 35,282 155,906 81,461

Operating expenses:

Compensation and 81,219 38,231 221,262 89,114 benefits

Professional 7,947 2,132 20,590 6,957 services

Technology 9,299 3,432 22,494 8,531

Occupancy 1,091 1,100 3,084 3,267

Depreciation and 786 901 2,567 2,608 amortization

Marketing and 490 371 1,480 1,052 advertising

Other operating 3,880 1,287 8,705 3,914 expenses

Total operating 104,712 47,454 280,182 115,443 expenses

Loss from (45,638) (12,172) (124,276) (33,982) operations

Other income (57) (83) (2,705) 117 (expense), net

Loss beforeincome tax (45,695) (12,255) (126,981) (33,865) expense

Income tax (35) (43) (141) (70) expense

Net loss $ (45,730) $ (12,298) $ (127,122) $ (33,935)

Net loss pershareattributable to $ (0.08) $ (0.10) $ (0.42) $ (0.28) commonstockholders,basic and diluted

Weighted-averageshares used incomputing netloss per share 538,896,513 124,225,475 302,967,155 120,931,681 attributable tocommonstockholders,basic and diluted

Marqeta, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

September 30,2021

December 31,2020

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$

1,260,220

$

220,433

Restricted cash

7,800

7,800

Marketable securities

408,954

149,903

Accounts receivable, net

7,338

8,420

Settlements receivable, net

15,451

12,867

Network incentives receivable

40,024

20,022

Prepaid expenses and other current assets

19,859

11,461

Total current assets

1,759,646

430,906

Property and equipment, net

10,191

9,477

Operating lease right-of-use assets, net

11,832

13,411

Other assets

1,473

3,886

Total assets

$

1,783,142

$

457,680

Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)

Current liabilities

Accounts payable

$

2,717

$

2,362

Revenue share payable

88,183

78,191

Accrued expenses and other current liabilities

97,606

60,545

Total current liabilities

188,506

141,098

Redeemable convertible preferred stock warrant liabilities

-

2,517

Operating lease liabilities, net of current portion

13,218

15,449

Other liabilities

8,078

10,452

Total liabilities

209,802

169,516

Redeemable convertible preferred stock

-

501,881

Stockholders' equity (deficit):

Preferred stock

-

-

Common stock

54

13

Additional paid-in capital

1,954,315

39,769

Accumulated other comprehensive income (loss)

(383)

25

Accumulated deficit

(380,646)

(253,524)

Total stockholders' equity (deficit)

1,573,340

(213,717)

Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)

$

1,783,142

$

457,680

Marqeta, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

September 30, December 2021 31, 2020

(unaudited)

Assets

Current assets:

Cash and cash equivalents $ 1,260,220 $ 220,433

Restricted cash 7,800 7,800

Marketable securities 408,954 149,903

Accounts receivable, net 7,338 8,420

Settlements receivable, net 15,451 12,867

Network incentives receivable 40,024 20,022

Prepaid expenses and other current assets 19,859 11,461

Total current assets 1,759,646 430,906

Property and equipment, net 10,191 9,477

Operating lease right-of-use assets, net 11,832 13,411

Other assets 1,473 3,886

Total assets $ 1,783,142 $ 457,680

Liabilities, redeemable convertible preferred stock and stockholders' equity (deficit)

Current liabilities

Accounts payable $ 2,717 $ 2,362

Revenue share payable 88,183 78,191

Accrued expenses and other current liabilities 97,606 60,545

Total current liabilities 188,506 141,098

Redeemable convertible preferred stock warrant - 2,517 liabilities

Operating lease liabilities, net of current portion 13,218 15,449

Other liabilities 8,078 10,452

Total liabilities 209,802 169,516

Redeemable convertible preferred stock - 501,881

Stockholders' equity (deficit):

Preferred stock - -

Common stock 54 13

Additional paid-in capital 1,954,315 39,769

Accumulated other comprehensive income (loss) (383) 25

Accumulated deficit (380,646) (253,524)

Total stockholders' equity (deficit) 1,573,340 (213,717)

Total liabilities, redeemable convertible preferred $ 1,783,142 $ 457,680 stock and stockholders' equity (deficit)

Marqeta, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine Months Ended September 30,

2021

2020

Cash flows from operating activities:

Net loss

$

(127,122)

$

(33,935)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization

2,567

2,608

Share-based compensation expense

105,893

18,620

Non-cash operating leases expense

1,579

1,519

Amortization of premium on marketable securities

974

231

Provision for doubtful accounts

108

44

Other

2,891

1,053

Changes in operating assets and liabilities:

Accounts receivable

974

(2,944)

Settlements receivable

(2,584)

137

Network incentives receivable

(20,002)

(3,426)

Prepaid expenses and other assets

(6,089)

(1,439)

Accounts payable

282

(314)

Revenue share payable

9,992

26,559

Accrued expenses and other liabilities

34,037

20,751

Operating lease liabilities

(2,147)

(890)

Net cash provided by operating activities

1,353

28,574

Cash flows from investing activities:

Purchases of property and equipment

(2,251)

(2,151)

Purchases of marketable securities

(375,089)

(183,367)

Sales of marketable securities

-

71,981

Maturities of marketable securities

114,688

72,190

Net cash used in investing activities

(262,652)

(41,347)

Cash flows from financing activities:

Proceeds from initial public offering, net of underwriters' discounts and commissions

1,319,809

-

Proceeds from issuance of redeemable convertible preferred stock, net of issuance costs

-

166,942

Proceeds from exercise of stock options, including early exercised stock options

2,872

1,744

Payments for net settlement of restricted stock units

(18,448)

-

Payment of deferred offering costs

(3,134)

(1,231)

Repurchase of early exercised unvested options

(73)

(66)

Net cash provided by financing activities

1,301,086

167,389

Net increase in cash, cash equivalents, and restricted cash

1,039,787

154,616

Cash, cash equivalents, and restricted cash- Beginning of period

228,233

68,144

Cash, cash equivalents, and restricted cash - End of period

$

1,268,020

$

222,760

Marqeta, Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Nine Months Ended September 30,

2021 2020

Cash flows from operating activities:

Net loss $ (127,122) $ (33,935)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization 2,567 2,608

Share-based compensation expense 105,893 18,620

Non-cash operating leases expense 1,579 1,519

Amortization of premium on marketable securities 974 231

Provision for doubtful accounts 108 44

Other 2,891 1,053

Changes in operating assets and liabilities:

Accounts receivable 974 (2,944)

Settlements receivable (2,584) 137

Network incentives receivable (20,002) (3,426)

Prepaid expenses and other assets (6,089) (1,439)

Accounts payable 282 (314)

Revenue share payable 9,992 26,559

Accrued expenses and other liabilities 34,037 20,751

Operating lease liabilities (2,147) (890)

Net cash provided by operating activities 1,353 28,574

Cash flows from investing activities:

Purchases of property and equipment (2,251) (2,151)

Purchases of marketable securities (375,089) (183,367)

Sales of marketable securities - 71,981

Maturities of marketable securities 114,688 72,190

Net cash used in investing activities (262,652) (41,347)

Cash flows from financing activities:

Proceeds from initial public offering, net of 1,319,809 - underwriters' discounts and commissions

Proceeds from issuance of redeemable convertible - 166,942 preferred stock, net of issuance costs

Proceeds from exercise of stock options, including 2,872 1,744 early exercised stock options

Payments for net settlement of restricted stock (18,448) - units

Payment of deferred offering costs (3,134) (1,231)

Repurchase of early exercised unvested options (73) (66)

Net cash provided by financing activities 1,301,086 167,389

Net increase in cash, cash equivalents, and 1,039,787 154,616 restricted cash

Cash, cash equivalents, and restricted cash- 228,233 68,144 Beginning of period

Cash, cash equivalents, and restricted cash - End $ 1,268,020 $ 222,760 of period

Marqeta, Inc.

Financial and Operating Highlights

(in thousands, except per share data or as noted)

2021

2020

Year over Year Change - Q3'21 vs Q3'20

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Operating performance:

Net revenue

$

131,512

$

122,266

$

107,983

$

88,196

$

84,306

56

%

Costs of revenue

72,438

75,291

58,126

51,750

49,024

48

%

Gross profit

59,074

46,975

49,857

36,446

35,282

67

%

Gross margin

45

%

38

%

46

%

41

%

42

%

3

pps

Operating expenses:

Compensation and benefits

81,219

95,204

44,839

37,747

38,231

112

%

Professional services

7,947

6,382

6,261

3,172

2,132

273

%

Technology

9,299

7,569

5,626

4,708

3,432

171

%

Occupancy and equipment

1,091

907

1,086

1,070

1,100

(1)

%

Depreciation and amortization

786

874

907

890

901

(13)

%

Marketing and advertising

490

495

495

618

371

32

%

Other operating expenses

3,880

3,530

1,295

1,346

1,287

201

%

Total operating expenses

104,712

114,961

60,509

49,551

47,454

121

%

Loss from operations

(45,638)

(67,986)

(10,652)

(13,105)

(12,172)

275

%

Other income (expense), net

(57)

(481)

(2,167)

(638)

(83)

(31)

%

Loss before income tax expense

(45,695)

(68,467)

(12,819)

(13,743)

(12,255)

273

%

income tax expense

(35)

(87)

(19)

(17)

(43)

(19)

%

Net loss

$

(45,730)

$

(68,554)

$

(12,838)

$

(13,760)

$

(12,298)

272

%

Loss per share - basic and diluted

$

(0.08)

$

(0.29)

$

(0.10)

$

(0.11)

$

(0.10)

(20)

%

TPV (in millions)

$

27,569

$

26,520

$

23,998

$

18,748

$

17,250

60

%

Adjusted EBITDA

$

(4,939)

$

(10,637)

$

1,647

$

(2,624)

$

686

(820)

%

Adjusted EBITDA margin

(4)

%

(9)

%

2

%

(3)

%

1

%

(5)

pps

Financial condition:

Cash and cash equivalents

$

1,260,220

$

1,579,287

$

247,630

$

220,433

$

214,960

486

%

Restricted cash

$

7,800

$

7,800

$

7,800

$

7,800

$

7,800

-

%

Marketable securities

$

408,954

$

105,053

$

140,145

$

149,903

$

134,328

204

%

Total assets

$

1,783,142

$

1,780,324

$

481,803

$

457,680

$

424,661

320

%

Total liabilities

$

209,802

$

194,338

$

193,497

$

169,516

$

133,922

57

%

Redeemable preferred stock

$

-

$

-

$

501,881

$

501,881

$

501,881

(100)

%

Stockholders' equity (deficit)

$

1,573,340

$

1,585,986

$

(213,575)

$

(213,717)

$

(211,142)

(845)

%

pps = percentage points

Marqeta, Inc.Reconciliation of GAAP to NON-GAAP Measures(in thousands)(unaudited)

Information Regarding Non-GAAP Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), this press release contains certain non-GAAP financial measures. Marqeta considers Adjusted EBITDA and Adjusted EBITDA Margin as supplemental measures of the company's performance that are not required by, nor presented in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; legal, financial, and tax due diligence costs related to potential acquisitions; income tax expense; and other income (expense) net, which consists of changes in the fair value of redeemable convertible preferred stock warrant liabilities (for periods prior to the IPO), realized foreign currency gains and losses, and interest income from our marketable securities. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. Additionally, we utilize Adjusted EBITDA as an input into our calculation of certain annual employee bonus plans.

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net revenue. This measure is used by management and our board of directors to evaluate our operating efficiency.

Adjusted EBITDA and Adjusted EBITDA Margin should not be considered in isolation, or construed as an alternative to net loss, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity. In addition, other companies may calculate Adjusted EBITDA differently than Marqeta does, which limits its usefulness in comparing Marqeta's financial results with those of other companies.

The following table shows Marqeta's GAAP results reconciled to non-GAAP results included in this release:

Marqeta, Inc.

Financial and Operating Highlights

(in thousands, except per share data or as noted)

2021 2020 Year over Year Change - Second Fourth Q3'21 vs Third Quarter Quarter First Quarter Quarter Third Quarter Q3'20

Operating performance:

Net revenue $ 131,512 $ 122,266 $ 107,983 $ 88,196 $ 84,306 56 %

Costs of 72,438 75,291 58,126 51,750 49,024 48 %revenue

Gross profit 59,074 46,975 49,857 36,446 35,282 67 %

Gross margin 45 % 38 % 46 % 41 % 42 % 3 pps

Operating expenses:

Compensation 81,219 95,204 44,839 37,747 38,231 112 %and benefits

Professional 7,947 6,382 6,261 3,172 2,132 273 %services

Technology 9,299 7,569 5,626 4,708 3,432 171 %

Occupancy and 1,091 907 1,086 1,070 1,100 (1) %equipment

Depreciationand 786 874 907 890 901 (13) %amortization

Marketing and 490 495 495 618 371 32 %advertising

Otheroperating 3,880 3,530 1,295 1,346 1,287 201 %expenses

Totaloperating 104,712 114,961 60,509 49,551 47,454 121 %expenses

Loss from (45,638) (67,986) (10,652) (13,105) (12,172) 275 %operations

Other income(expense), (57) (481) (2,167) (638) (83) (31) %net

Loss beforeincome tax (45,695) (68,467) (12,819) (13,743) (12,255) 273 %expense

income tax (35) (87) (19) (17) (43) (19) %expense

Net loss $ (45,730) $ (68,554) $ (12,838) $ (13,760) $ (12,298) 272 %

Loss pershare - basic $ (0.08) $ (0.29) $ (0.10) $ (0.11) $ (0.10) (20) %and diluted

TPV (in $ 27,569 $ 26,520 $ 23,998 $ 18,748 $ 17,250 60 %millions)

Adjusted $ (4,939) $ (10,637) $ 1,647 $ (2,624) $ 686 (820) %EBITDA

Adjusted (4) % (9) % 2 % (3) % 1 % (5) ppsEBITDA margin

Financial condition:

Cash and cash $ 1,260,220 $ 1,579,287 $ 247,630 $ 220,433 $ 214,960 486 %equivalents

Restricted $ 7,800 $ 7,800 $ 7,800 $ 7,800 $ 7,800 - %cash

Marketable $ 408,954 $ 105,053 $ 140,145 $ 149,903 $ 134,328 204 %securities

Total assets $ 1,783,142 $ 1,780,324 $ 481,803 $ 457,680 $ 424,661 320 %

Total $ 209,802 $ 194,338 $ 193,497 $ 169,516 $ 133,922 57 %liabilities

Redeemablepreferred $ - $ - $ 501,881 $ 501,881 $ 501,881 (100) %stock

Stockholders'equity $ 1,573,340 $ 1,585,986 $ (213,575) $ (213,717) $ (211,142) (845) %(deficit)

pps = percentage points

Marqeta, Inc.Reconciliation of GAAP to NON-GAAP Measures(in thousands)(unaudited)

Information Regarding Non-GAAP Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles in the United States ("GAAP"), this press release contains certain non-GAAP financial measures. Marqeta considers Adjusted EBITDA and Adjusted EBITDA Margin as supplemental measures of the company's performance that are not required by, nor presented in accordance with GAAP.

We define Adjusted EBITDA as net income (loss) adjusted to exclude depreciation and amortization; share-based compensation expense; payroll tax related to share-based compensation; legal, financial, and tax due diligence costs related to potential acquisitions; income tax expense; and other income (expense) net, which consists of changes in the fair value of redeemable convertible preferred stock warrant liabilities (for periods prior to the IPO), realized foreign currency gains and losses, and interest income from our marketable securities. We believe that Adjusted EBITDA is an important measure of operating performance because it allows management and our board of directors to evaluate and compare our core operating results, including our operating efficiencies, from period to period. Additionally, we utilize Adjusted EBITDA as an input into our calculation of certain annual employee bonus plans.

Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by net revenue. This measure is used by management and our board of directors to evaluate our operating efficiency.

Adjusted EBITDA and Adjusted EBITDA Margin should not be considered in isolation, or construed as an alternative to net loss, or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities or as a measure of the company's liquidity. In addition, other companies may calculate Adjusted EBITDA differently than Marqeta does, which limits its usefulness in comparing Marqeta's financial results with those of other companies.

The following table shows Marqeta's GAAP results reconciled to non-GAAP results included in this release:

Three Months Ended Nine Months Ended September September 30, 30,

2021 2020 2021 2020

GAAP net revenue $ 131,512 $ 84,306 $ 361,761 $ 202,096

GAAP net loss $ (45,730) $ (12,298) $ (127,122) $ (33,935)

GAAP net loss margin (35) % (15) % (35) % (17) %



GAAP net loss $ (45,730) $ (12,298) $ (127,122) $ (33,935)

Depreciation and 786 901 2,567 2,608 amortization expense

Share-based 38,965 11,957 105,893 18,620 compensation expense

Payroll tax expenserelated to 614 - 1,553 - share-basedcompensation

Acquisition related 334 - 334 - expenses

Other income 57 83 2,705 (117) (expense), net

Income tax expense 35 43 141 70

Adjusted EBITDA $ (4,939) $ 686 $ (13,929) $ (12,754)

Adjusted EBITDA (4) % 1 % (4) % (6) %Margin

A reconciliation of Adjusted EBITDA to the comparable GAAP measure is not available due to the challenges and impracticability with estimating some of the items as such items cannot be reasonably predicted. Because of those challenges, reconciliations of such forward-looking non-GAAP financial measures are not available without unreasonable effort.

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CONTACT: IR Contact: Marqeta Investor Relations, IR@marqeta.com