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Marqeta Stock Tumbles After Posting a Loss in First Report as Public Company

Marqeta slides after posting a loss in its first report as a public company.
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Marqeta  (MQ) - Get Marqeta, Inc. Class A Report tumbled Thursday after the payments processing company reported a wider-than-expected loss in its first quarterly report as a public company.

Shares of the Oakland, Calif., company were down nearly 12% to $26.46

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Marqeta, which provides payments services to customers including Uber Technologies  (UBER) - Get Uber Technologies, Inc. Report and DoorDash  (DASH) - Get DoorDash, Inc. Class A Report, reported quarterly earnings for the first time after making its stock market debut in June.

Marqeta posted a net loss of $68.55 million, or 29 cents a share, for the quarter, wider than the year-ago loss of $7.1 million, or 6 cents, due to higher employee-related costs.

 Analysts surveyed by FactSet were forecasting a loss of 7 cents a share.

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Revenue totaled $122.3 million, up 76% from a year ago, and exceeded analysts' calls for $105.3 million.

Looking ahead, the company forecast third-quarter revenue of $114 million to $119 million, which was under estimates of $119.6 million.

Second-quarter revenue was driven by higher total processing volume from existing large customers and continued growth in processing volume from both digital banking and buy-now-pay-later customers.

Marqeta reported a 350% increase it its Buy Now, Pay Later vertical. 

Australia's Afterpay was a member of that cohort, but earlier this month Square announced a $29 billion takeover of the company.

Marqeta founder and CEO Jason Gardner said during a conference call with analysts that "Afterpay is not a top five customer in terms of volume on our platform."

"Therefore, we don't see this combination moving concentration risk significantly, trigger renegotiations or of the like," he said, according to a transcript of the call. "I would also add, both companies also have long-term agreements with Marqeta into 2024."