Shares of payments-tech provider Marqeta Inc. (MQ) experienced a sharp drop in after-hours trading on Tuesday after the company forecasted first-quarter sales growth that was slightly lower than analysts’ estimates. Marqeta’s technology helps facilitate online card payments across customers, apps, and merchants, and the company expected first-quarter sales growth of 26% to 28%. Unfortunately, this was below the FactSet estimates of 29%. As a result, the company’s shares tumbled 18.5% after hours on Tuesday.
Marqeta has counted DoorDash Inc. (DASH) and Block Inc. (SQ) as customers, and the company’s fourth-quarter results were better than expected. The company reported a fourth-quarter net loss of $26.3 million, which was lower than the $28.1 million analysts had anticipated. Additionally, the company’s revenue came in at $50.9 million, which was higher than the $47.8 million expected by analysts.
Marqeta’s CEO, Jason Gardner, commented on the company’s fourth-quarter results, saying, “We are pleased with our fourth-quarter results, which reflect the strength of our platform and our ability to drive customer growth and engagement. Our customers continue to benefit from our differentiated technology, global infrastructure, and deep industry expertise.”
Gardner also commented on the company’s outlook for the first quarter, saying, “We are confident in our ability to drive growth and engagement for our customers and remain focused on delivering long-term value for our shareholders.”
Marqeta’s stock has been on a steady rise since its initial public offering in June of last year, and the company has seen a surge in demand for its services as more businesses move to digital payments. The company’s technology allows customers to securely and quickly make payments online, and Marqeta’s platform is being used by some of the world’s largest companies and financial institutions.
Despite the drop in after-hours trading, Marqeta’s stock is still up more than 400% since its IPO. The company’s shares have also outperformed the S&P 500 over the past year, and the company is well-positioned to capitalize on the growth of digital payments.
Marqeta is a leader in the payments-tech industry, and the company is well-positioned to benefit from the growth of digital payments. The company’s technology allows customers to securely and quickly make payments online, and the company is seeing strong demand for its services. While the company’s first-quarter forecast came in slightly below estimates, Marqeta’s stock has still outperformed the S&P 500 over the past year and the company is well-positioned to capitalize on the growth of digital payments.