The founder of Marqeta plans to step down as CEO and the company said it is being cautious given the challenges in the economy.
After Marqeta's stock market debut last year, it was worth over $16 billion, making it the 16th most valuable company in the world. The company's valuation has fallen below $5 billion due to the broader tech market downturn.
In order to maximize the next stage of growth, we want to be very proactive and start our succession planning process by looking for the next CEO to lead Marqeta. As the company searches for a new CEO, he will stay on as executive chairman.
Marqeta sells technology that is designed to detect fraud and make sure money is routed correctly. DoorDash and Instacart use physical cards that look like credit and debit cards to make point-of-sale purchases.
Revenue increased from a year ago to $187 million in the second quarter. There are economic challenges on the way. He said it would be wise to be cautious.
Milotich said that many of the customers that signed up in the last year will be slower in ramping up their business. The challenges with significant declines in valuation and increasing difficulties in raising capital are specific to the fintech sector.
KeyBanc Capital Markets raised their price target and revenue estimate for the year.
According to the KeyBanc analysts, Marqeta has established a strong market presence with customers based on platform modularity, innovation velocity and roadmap, deep domain knowledge, fair and contract terms, and robust commercialization capabilities with a general desire to expand international presence.
The Marqeta CEO is talking about the need to change.
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