Latest news with #MikeMilotich
Yahoo
13-05-2025
- Business
- Yahoo
Marqeta chief focuses on revenue diversity, execution
This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. In late February, Marqeta replaced its former chief executive, naming Mike Milotich, the chief financial officer, to the additional role of interim CEO. It's a title he might hold for a while as Milotich says Marqeta's board is comfortable with the current executive team, allowing directors to conduct a thorough, deliberative search. The company focuses on card issuing and embedded finance, to allow its customers – including large fintechs and online retail marketplaces– to profit from interchange fees on transactions. Oakland, California-based Marqeta faces stiff competition from rivals such as Fidelity National Information Services and Global Payments, as well as upstarts such as Adyen and Stripe. Marqeta, which went public in June 2021, has gradually diversified its revenue away from Block, which accounted for nearly three-quarters (73%) of the business in early 2021. Block represented 45% of revenue in the most recent quarter, Marqeta reported Thursday. It's also planning a 'white label app,' rolling out later this year, to allow companies to establish a card program quickly, without spending internal resources or managing cardholders, Milotich said last week on a quarterly earnings call. As the dual CEO-CFO, Milotich is also targeting costs, with a goal of keeping expense growth 10 points below gross profit growth. Milotich joined Marqeta as CFO in February 2022 after prior roles at Visa, PayPal Holdings and American Express. He spoke with Payments Dive on May 9. Editor's note: This interview has been edited for clarity and brevity. MIKE MILOTICH: Not really. Although we've accomplished a lot at Marqeta, we need to improve our execution a little bit. So I think what I'm really focused on is doing the fundamentals, the little things a little better. We have several innovative things that we're doing, and we are constantly growing the capabilities we offer. The key is to do everything, finish everything we start and kind of do it really well, is what I'm a little more focused on than you know, maybe we've been in the past. I think because we have enough great ideas, that's not our problem. Our problem is actually focusing, prioritizing and delivering. You can't really plan for that. It's more that you make sure you have contingency plans. It's more about making sure you have the ability to shift if things change. And sometimes that means the way you execute is slightly different, so that you kind of have some exits and some off ramps if you need to make a change. I think we're trying to make sure every decision we make, there is some flexibility if things change. Otherwise, what we see in our business is that, at least so far, there isn't a shift in the way consumers are spending. For us it's two things. We have one very large customer, Block. This past quarter, they were 45% of our revenue. We're making progress growing our non-Block business, and so I would say that's an area of focus: How quickly is our non-Block business growing? Our non-Block revenue is growing more than 10 points faster than our Block revenue. That's something investors are watching. We still think there's a lot of growth opportunity with Block and so it's more, how quickly can we diversify the business outside of that? Another thing investors want to see is how successfully we move into embedded finance. How successfully were we able to attract these different kinds of companies and get them on our platform and show the difference that we can make, versus maybe what has been done in the past. We still think there's a lot of opportunity at Block and a lot of ways we can help them. We don't necessarily target that percentage. We more target non-Block growth. We want to drive non-Block growth, but if Block grows really fast, that's not a bad thing on our platform. We support Square, we support Afterpay, we support Cash App. They've talked a lot about getting Afterpay inserted more into Cash App directly. So there's things that we can help them with. They haven't done a true credit card yet, and these are all things that they could do seamlessly with us. In addition to that, we obviously are trying to grow our business as much as we can with other partners. We're happy integrating with multiple players, as we sort of speak to larger and larger companies whose core business is not this. They're looking for a more holistic offering. We're providing a lot more value-added services, risk services that they can adopt. We announced we're building a white label app, so that the decision maker for this card program, one day they might want to embed it into their existing company app, but that takes a lot of selling internally to get people to commit resources that way. So a lot of them are saying, I'm going to build a standalone app that looks and feels and easily syncs with our main app. But it can allow me to get traction in the market, and then maybe one day later, embed it directly. Almost everyone now issues a digital, tokenized version of your card along with the physical card. So a lot of people are putting their card into one of the big wallets. I think the big change that we see coming, that a lot of people are interested in, is where you would do more from their experience. You're inside their app, and there are things you can do. If you were an airline, why wouldn't you be able to do some things directly from their application, as opposed to leaving it, and so I think that's personalized rewards. One of the things we're working on in credit is credit platforms. Today, the reward is the same for you as it is for me, but there's no reason why. Just like if you and I pulled up a website, we were sitting right next to each other. What would be on (each) website would be very different, and we believe there's no reason why card benefits and rewards couldn't be similar, where they are somewhat tailored to your preferences and your needs. The board, they feel like with me in the interim role, and the rest of the executive team in place, that the business can thrive in the short-to-medium term, which gives them the luxury of taking the time they need to do a thorough search. So I don't expect it to be fast. That's up for the board to determine. Recommended Reading How embedded payments are changing the way we pay
Yahoo
29-04-2025
- Business
- Yahoo
Unpacking Q4 Earnings: Marqeta (NASDAQ:MQ) In The Context Of Other Finance and HR Software Stocks
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the finance and hr software stocks, including Marqeta (NASDAQ:MQ) and its peers. Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software. The 14 finance and hr software stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 1.1% while next quarter's revenue guidance was 1.4% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.6% since the latest earnings results. Founded by CEO Jason Gardner in 2009, Marqeta (NASDAQ:MQ) is an innovative card issuer that provides companies with the ability to issue and process virtual, physical, and tokenized credit and debit cards. Marqeta reported revenues of $135.8 million, up 14.3% year on year. This print exceeded analysts' expectations by 3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' total payment volume estimates. "In 2024, we empowered our customers to achieve significant growth and scale, maintaining both stability and compliance," said Mike Milotich, Interim CEO at Marqeta. Interestingly, the stock is up 13.9% since reporting and currently trades at $3.97. Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free. Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources. Workday reported revenues of $2.21 billion, up 15% year on year, outperforming analysts' expectations by 1.3%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' billings estimates. The stock is down 5.8% since reporting. It currently trades at $240.40. Is now the time to buy Workday? Access our full analysis of the earnings results here, it's free. Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Flywire reported revenues of $117.6 million, up 22.4% year on year, falling short of analysts' expectations by 4.9%. It was a softer quarter as it posted revenue guidance for next quarter slightly missing analysts' expectations. Flywire delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 49.4% since the results and currently trades at $8.92. Read our full analysis of Flywire's results here. Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations. Workiva reported revenues of $199.9 million, up 19.9% year on year. This result topped analysts' expectations by 2.4%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts' EBITDA estimates but full-year EPS guidance missing analysts' expectations significantly. Workiva scored the highest full-year guidance raise among its peers. The company added 129 enterprise customers paying more than $100,000 annually to reach a total of 2,055. The stock is down 12.4% since reporting and currently trades at $73.32. Read our full, actionable report on Workiva here, it's free. One of the oldest service providers in the industry, Paychex (NASDAQ:PAYX) offers its customers payroll and HR software solutions. Paychex reported revenues of $1.51 billion, up 4.8% year on year. This print met analysts' expectations. More broadly, it was a mixed quarter as it underperformed in some other aspects of the business. Paychex had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $144.73. Read our full, actionable report on Paychex here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
Yahoo
29-04-2025
- Business
- Yahoo
Unpacking Q4 Earnings: Marqeta (NASDAQ:MQ) In The Context Of Other Finance and HR Software Stocks
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the finance and hr software stocks, including Marqeta (NASDAQ:MQ) and its peers. Organizations are constantly looking to improve organizational efficiencies, whether it is financial planning, tax management or payroll. Finance and HR software benefit from the SaaS-ification of businesses, large and small, who much prefer the flexibility of cloud-based, web-browser delivered software paid for on a subscription basis than the hassle and expense of purchasing and managing on-premise enterprise software. The 14 finance and hr software stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 1.1% while next quarter's revenue guidance was 1.4% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.6% since the latest earnings results. Founded by CEO Jason Gardner in 2009, Marqeta (NASDAQ:MQ) is an innovative card issuer that provides companies with the ability to issue and process virtual, physical, and tokenized credit and debit cards. Marqeta reported revenues of $135.8 million, up 14.3% year on year. This print exceeded analysts' expectations by 3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' total payment volume estimates. "In 2024, we empowered our customers to achieve significant growth and scale, maintaining both stability and compliance," said Mike Milotich, Interim CEO at Marqeta. Interestingly, the stock is up 13.9% since reporting and currently trades at $3.97. Is now the time to buy Marqeta? Access our full analysis of the earnings results here, it's free. Founded by industry veterans Aneel Bushri and Dave Duffield after their former company PeopleSoft was acquired by Oracle in a hostile takeover, Workday (NASDAQ:WDAY) provides cloud-based software for organizations to manage and plan finance and human resources. Workday reported revenues of $2.21 billion, up 15% year on year, outperforming analysts' expectations by 1.3%. The business had a very strong quarter with a solid beat of analysts' EBITDA estimates and an impressive beat of analysts' billings estimates. The stock is down 5.8% since reporting. It currently trades at $240.40. Is now the time to buy Workday? Access our full analysis of the earnings results here, it's free. Originally created to process international tuition payments for universities, Flywire (NASDAQ:FLYW) is a cross border payments processor and software platform focusing on complex, high-value transactions like education, healthcare and B2B payments. Flywire reported revenues of $117.6 million, up 22.4% year on year, falling short of analysts' expectations by 4.9%. It was a softer quarter as it posted revenue guidance for next quarter slightly missing analysts' expectations. Flywire delivered the fastest revenue growth but had the weakest performance against analyst estimates in the group. As expected, the stock is down 49.4% since the results and currently trades at $8.92. Read our full analysis of Flywire's results here. Founded in 2010, Workiva (NYSE:WK) offers software as a service product that makes financial and compliance reporting easier, especially for publicly traded corporations. Workiva reported revenues of $199.9 million, up 19.9% year on year. This result topped analysts' expectations by 2.4%. Taking a step back, it was a mixed quarter as it also logged an impressive beat of analysts' EBITDA estimates but full-year EPS guidance missing analysts' expectations significantly. Workiva scored the highest full-year guidance raise among its peers. The company added 129 enterprise customers paying more than $100,000 annually to reach a total of 2,055. The stock is down 12.4% since reporting and currently trades at $73.32. Read our full, actionable report on Workiva here, it's free. One of the oldest service providers in the industry, Paychex (NASDAQ:PAYX) offers its customers payroll and HR software solutions. Paychex reported revenues of $1.51 billion, up 4.8% year on year. This print met analysts' expectations. More broadly, it was a mixed quarter as it underperformed in some other aspects of the business. Paychex had the slowest revenue growth among its peers. The stock is flat since reporting and currently trades at $144.73. Read our full, actionable report on Paychex here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
