Marqeta Inc. gained after extending a partnership with Jack Dorsey’s payments company Block Inc. and posting revenue that topped analyst estimates.
(Bloomberg) — Marqeta Inc. gained after extending a partnership with Jack Dorsey’s payments company Block Inc. and posting revenue that topped analyst estimates.
Marqeta struck a four-year extension with Block to continue powering its well-known offering Cash App, the company said in an earnings report on Tuesday. Marqeta, a payments platform and card provider, said net revenue rose to $231.1 million for the second quarter from $186.7 million a year earlier.
Marqeta’s shares jumped 15% in late trading in New York.
The partnership with Cash App is effective July 1, the company said. Cash App started as a person-to-person payments app and expanded its product offerings as it grew in popularity.
“The growth that they’ve witnessed is kind of surreal — it’s up and to the right,” Marqeta Chief Executive Officer Simon Khalaf said in an interview after the earnings release. For every projection Marqeta has formulated for Cash App, “they’ve beaten,” he said.
Marqeta went public in 2021 and is certified to operate in 40 countries. The Oakland, California-based company announced an expansion to Brazil last month in partnership with Latin American banking-as-a-service platform Fitbank. The country has a “base of local fintechs looking to build new innovations on modern payment infrastructure,” Marqeta said.
Khalaf said he views Brazil as a particularly promising market because mobile-device payments are widespread, the regulatory environment is favorable and the country has a large population.
Marqeta’s net loss widened by $14 million in the second quarter, hitting $59 million amid increases in compensation and benefits mainly due to restructuring charges.
Marqeta is also looking to set up a location in eastern Europe in the coming weeks to focus on development and risk operations, Khalaf said.
–With assistance from Bre Bradham.
(Updates with share moves in third paragraph and CEO’s comments starting in the fifth paragraph.)
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