MARQETA 2024 Q3
Earnings Overview & AI Insights

Earnings Performance

Simon Khalaf -- Chief Executive Officer -- will discuss Marqeta's third quarter 2024 earnings call. He will also discuss the progress we're making in our business to help transform payments. He'll also address the reduction in growth expectations for the fourth quarter. Marqeta's modern platform, allowing customers the best of both worlds: a smooth transition to the new system. The company recently completed the successful migration of millions of Klarna Cards across Sweden, Germany, and the U.K. Marqeta Flex, a new solution, revolutionizes how BNPL payment options can be delivered inside payment apps andwallets, surfacing them when needed within the payment flow. The time to launch new programs grew 30% to 40% from 2023 to 2023, and we expect that increase to remain for at least at least two more quarters. The company's financial results in Q3 better reflect the growth trajectory of the business. Mike Milotich -- Chief Financial Officer -- will give us a few months of ramping the programs we have already signed up. The headwinds from the more difficult bank environment are short-term, but not a change in the trajectory of our business. Non-Block TPV grew more than 15 points faster than Block TPV growth due to strength across a large number of customers and use cases. Financial services continues to deliver strong growth despite being, by far, our largest vertical. Q3 gross profit was 90 million, resulting in 24% year-over-year growth. Net revenue take rate was slightly lower than last quarter. Gross profit growth was approximately two-point lower than expected as a result of lower contribution from new programs in the quarter. New programs that have already been launched are not performing as expected. We expect Q4 net revenue growth to be between 10% and 12% and Q4 gross profit growth between 13% and 15%. We now expect significantly fewer new programs to launch in the second half of the year. The heightened regulatory scrutiny from bank partners has delayed the launch of new programs into the first half of 2025. A few highly sophisticated long-term fintech customers are moving quickly to take ownership of more of the program components in order to reduce their reliance on our volume or take rate of card usage. We are working closely with our existing bank partners to optimize our processes, improve the efficiency of program approval, program approval, and onboarding. At this point, we believe Q4 2024 is a good indicator for the company's future growth. Gross profit growth in 2025 could be similar to Q4 2024 as we solve for new program launch delays, pushing the ramp of programs to later in 2025. We believe these challenges with new programs are a short-term issue and are a result of shifting out the new program ramp rather than a structural change in our business.