Marqeta, Inc. (NASDAQ:MQ) Q3 2021 Earnings Highlights
Jason Gardner, CEO:
Our third quarter results show the impact of modern card issuing is already having a Marqeta’s momentum in this market. $28 billion in total processing volume or TPV, a 60% increase compared to the same quarter of 2020; $132 million in net revenue, a 56% increase compared to the same quarter of 2020.
We believe modern card issuing is at the heart of global money movement. When I look back at Marqeta’s third quarter, I see a wealth of examples that highlight the breadth and power of modern card issuing. Marqeta’s modern card issuing platform enables unique, new payment use cases for companies of all types from digital disruptors who are looking for scale to legacy payment providers looking to launch cutting-edge solutions to stay competitive.
Similar to how we’ve seen our just-in-time or JIT, funding technology enable on-demand delivery and buy now, pay later services we’re now seeing JIT play a key role enabling a new wave of innovative cryptocurrency card products. Just-in-time funding used in tandem with our open API allows Fiat currency to be spent at the point of sale from a crypto wallet and for consumers to earn cryptocurrency rewards on traditional spending highlighted by companies like Coinbase, Bakkt, Fold and Shakepay.
For Coinbase users, swiping a Marqeta powered card at the point-of-sale and having a transaction funded in Fiat currency in real-time based on their cryptocurrency balance is an exciting application of our technology. When you put this side-by-side with our recently announced partnership with Bill.com, it demonstrates the huge possibility for our technology in the market. Our work with Bill.com is an innovative application of modern card issuing in the payments landscape.
Small and medium businesses represent the engine room of the global economy but have had little access to innovation to streamline their payment processes before companies like Bill.com came along. Using our best-in-class open API payment solutions, Bill.com plans to offer virtual card payment capabilities to its financial institution partners and their customers. This will give small and midsized businesses access to enterprise level tools, which can save time and money.
We see our third quarter results as yet another proof point of the tremendous progress and the impact we are already having in global money movement and we are only scratching the surface, when it comes to the many ways Marqeta enables modern card issuing a market we estimate at $30 trillion globally.
As we look at this ocean of opportunity, we see four key strategic pillars to growth, which will help us service this large addressable market in card issuing as well as deepen our competitive moat. Our first pillar adding new customers. Our value proposition for new customers is as strong as it’s ever been. We have a proven track record of executing large and innovative payment programs. We’ve also shown how we can deliver innovation for large financial institutions that legacy card issuers cannot. Simply put Marqeta can outscale new entrants to this market and out-innovate legacy platforms.
We recently added several major new customers to our platform. I’ve already highlighted our new partnership with Bill.com. The Marqeta platform is also powering Figure’s new Figure Pay product, a digital payments account with native buy now pay later functionality. And as spotlighted this quarter, a range of crypto innovators Coinbase Shakepay, Bakkt and Fold chose Marqeta to build great card products. Our second pillar expanding and growing our relationships with our existing customer base. Uber has been a Marqeta customer since 2019 and we recently expanded our relationship. In partnership with Branch, we launched a new card product to power a unique driver card for Uber Freight carriers, which lets them get paid in two hours instead of 30 days.
Our third pillar broadening our global reach. Marqeta is enabled in 36 countries worldwide. We successfully launched our Australian office in Q2 of this year and in Q3 announced our partnership with Zip Co. in the market. Our European business launched in 2018 continues to see considerable growth and momentum in the market. We’ve seen over 340% year-over-year growth in the number of transactions processed by our European customers in the third quarter. In addition, we’ve doubled the number of Marqeta’s European customers since September 30, 2020.
Our fourth pillar expanding our ecosystem, product offering and partnership network. This is a critical strategic priority for Marqeta to ensure we’re properly attacking our total addressable market and continuing to deepen our competitive moat in modern card issuing. Earlier in the year, we announced the launch of our credit product which we believe makes us the first modern platform to offer prepaid, debit and credit card issuing services…”