Marqeta, Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Mark Ketter Third Quarter 2022 Earnings Conference Call. As a reminder, this conference call is being recorded. I would now like to turn the conference over to Stacey Fineman, Vice President of Investor Relations, to begin. Please go ahead.

Thanks, Operator. Before we begin, I would like to remind everyone that today's call may contain forward-looking statements. These forward-looking statements are subject to numerous risks and uncertainties, including those set forth in our filings with the SEC, which are available on our investor relations website, including our annual report on Form 10-K for the period ended December 31st, 2021, and our subsequent periodic filings with the SEC. Actual results may differ materially from any forward-looking statements we make today. These forward-looking statements speak only as of the time of this call and the company does not assume any obligation or intent to update them except as required by law. In addition, today's call includes non-GAAP financial measures. These measures should be considered as a supplement to and not a substitute for GAAP financial measures. Reconciliations to the most directly comparable gap measures can be found in today's earnings press release or earnings release supplemental materials, which are available on our investor relations website. Hosting today's call are Jason Gardner, Marketa's founder and CEO, and Mike Miletic, Marketa's chief financial officer. With that, I'd like to turn the call over to Jason to begin.

Thank you, Stacey. Good afternoon, everyone, and thank you for joining us for Marketo's third quarter of 2022 earnings call. I'll start with a brief overview of results for the quarter. Total processing volume, or TPV, was $42 billion in the quarter, representing a 54% year-over-year increase, continuing the rate of growth we saw in the first half of this year. Our TPV for the first nine months of 2022 was $120 billion, exceeding our TPV for the entire 2021 fiscal year of $111 billion. Our net revenue of $192 million in the quarter represents a 46 percent increase from the previous year. Growth was strong across multiple verticals and both are managed by and powered by Marketa customers. particularly in digital banking and expense management. Block accounted for 72.5% of our net revenue, up from 69% in the second quarter, as the Cash App card continues to grow active users and drive engagement on the platform. Specifically, the Cash App users that also have a Cash App card was 35% in the quarter, up from 31% at the end of the year. and a direct deposit inflows for $2 billion in September, up 65% year-over-year, which helps fuel card spending. These are both products that Marketo provides to cash out. As we look ahead at the many opportunities for Marketo, the trend toward embedded finance is undoubtedly one of the biggest. According to Bain Capital, the value of embedded finance transactions is expected to reach $7 trillion by 2026. Our leading cloud native, highly configurable API first platform is well positioned to power this trend. We enable our customers to create seamless and customized digital experiences for their users without the limitations and compromises that legacy financial platforms have imposed on innovators in the past. We can serve a wide range of companies looking to expand into financial services and existing financial institutions looking to increase customer engagement through innovation. Marketo has momentum, and we succeed by our ability to rapidly expand our platform's functionality to fuel continued growth. A testament to our strength in providing a flexible infrastructure for companies that look to offer embedded finance, is our recent partnership with One, the independent fintech startup backed by Walmart and Rivet Capital. One has chosen Marketta to enable the delivery of products that help customers get paid, spend, save, and grow their money. Specifically, we will start by powering their OneCard, and Marketta will look to support them as they expand to other products and services. Connecting payments with investing is an excellent use of embedded finance. We are doing exactly this as part of our work with Stash. Stash is focused on helping Americans invest, including small dollar amounts, to build long-term wealth. Marketta is supporting the company with their Stash Stock Back Debit MasterCard, enabling their customers to earn stock on almost every swipe of their debit card. The Stock Back Debit MasterCard built on the recently launched Stash Core is a proprietary infrastructure platform of which Marketa is a key piece, which enables Stash to unlock innovation in financial technology, including banking, and in the future, new capabilities in credit, savings, lending, and more. This launch will help Stash more easily welcome new customers and serve millions of everyday Americans who want to build long-term wealth. We also power the embedded finance evolution by enabling well-established financial institutions to offer their current customer base digitally enabled services to more effectively compete with new bank offerings. This quarter, we began our partnership with Raiffeisen Central Bank, a leading banking network operating throughout Europe, to help power their digital banking brand, Raiffeisen Digital Bank. The company's customers want a simple digital solution, so they turned to Marketa's global modern issuing card platform to enable Raiffeisen Digital Bank's customers to access their accounts across devices. We will initially roll out the solution in two countries, Poland and Romania. With our single-stack solution, Raiffeisen will enable to expand that rollout across Europe over time. We are pleased with our forward momentum to power new embedded finance customers and we have been offering many of these capabilities for quite some time. Our expertise and scale means our customers place significant trust in our platform to power their business. We expect these relationships to last many years into the future. In fact, this quarter, we renewed many key customers across different verticals, including Lydia in financial services and Klarna in the buy now, pay later, our BNPL space. We continue to build upon our market-leading position and our track record of innovating in the BNPL space, one of the earliest examples of embedded finance. We recently signed a deal with ScalaPay, Italy's first unicorn. The company is a leading BNPL provider in Southern Europe and sought Marketa's expertise to modernize and simplify their offering. Whereas previously, merchants had to be trained on how to use ScalaPay and customers had to set up a new profile on the spot. Marketa's solution will allow ScalaPay to seamlessly expand their network and allow customers to pay using a single-use virtual card. We also recently signed a Canadian expansion deal with Affirm, one of our long-standing customers. To maximize the opportunities in vetted finance, we've expanded our key banking services that our customers can use modularly. Marketa for Banking, a portfolio of banking products that represents a significant expansion of our platform capabilities. Marketa for Banking is a natural evolution from our modern card issuing platform as our customers and prospects look to provide a comprehensive package of innovative digital banking features and card offerings. Marketa for Banking provides our customers with a suite of bank account and money movement features offered through Marketa's bank partners, including demand deposit accounts, direct deposit with early pay, ACH cash loads, and fee-free ATMs, bill pay, and instant funding capabilities. These offerings are modular, meaning customers can choose the features that best support their businesses and easily fit those building blocks into their product offerings. Because our innovative products come built into our minor card issuing platform, they create a seamless user experience on our modern platform that operates at a significant scale. We will continue to release additional Marketo for Banking features and products in the future. Our MarioCard issuing products allow for fine-tuned control by enabling individual customer or transaction level decisions. We brought the same level of control to the early pay feature, which can give account holders access to certain payments up to two days earlier than the ACH settlement date. Marketas early pay feature provides our customers with a new level of control by deciding on a transaction by transaction basis on which deposits qualify for this benefit. The ability to leverage best-in-class modern card issuing and banking capabilities side-by-side is an attractive proposition for our customers looking to offer embedded finance. Using our modern card issuing platform alongside Marketo for Banking, our customer Coinbase, for example, can achieve a level of engagement that benefits every part of their business. By adding a card to the Coinbase platform, they can increase engagement. By adding a deposit account to their customer can easily fund, they can create a more comprehensive customer experience. International expansion is another big opportunity for Merketa, and we have experienced significant momentum in Europe in recent quarters. Many potential European customers have specific preferences concerning how data is handled. So we now offer data residency for our European customers, but restore the most sensitive elements of our customers' data on European data services. We can now meet the high data residency standards adopted by many European businesses. For example, this was key to our opportunity with Raiffeisen Bank. This ability also bodes well for future business prospects, creating a playbook for offering data residency in new geographies. We believe we are very well positioned to capitalize on embedded finance, We have been leaders in the embedded finance space for many years. We have numerous strong customer relationships in BNPL, Neobank, and expense management verticals. In addition, our Marketa for Banking launch gives us enhanced capabilities to support our customers looking to provide embedded finance. Therefore, investors should expect to hear more about this trend from Marketa in future announcements. With that, I will turn the call over to Mike for a deeper dive into our financials.