Good analysis. There are a lot of good things about MQ but the valuation is still very rich when compared to SQ when it went public. MQ and SQ businesses are different -- one is on issuing side and the other on acquiring (at least when SQ started). SQ IPO’d @ $9 / $2.9B market cap. SQ’s TPV/NR in 2015 were 3X - 4X of MQ in 2020 and revenue concentration with Starbucks was also minimal. What SQ came out with is disruptive and transformational, which really isn’t the case with MQ. In fact, the CEO punted a little in a recent investor call with Citi where he was asked if MQ is disrupting or creating new market. There is a lot to like about MQ but think $10B valuation may seem reasonable in a frothy market which otherwise is fairly rich. As they get more into credit card business, there is a possibility for MQ to earn higher interchange revenue in value if not in % of IR.
This is an amazing breakdown and is what I was expecting from techcrunch, seeing as they actually charge a fee for it lol. Thank you so much for your time and effort while keeping it free for everyone.
Marqeta S-1 teardown
Good analysis. There are a lot of good things about MQ but the valuation is still very rich when compared to SQ when it went public. MQ and SQ businesses are different -- one is on issuing side and the other on acquiring (at least when SQ started). SQ IPO’d @ $9 / $2.9B market cap. SQ’s TPV/NR in 2015 were 3X - 4X of MQ in 2020 and revenue concentration with Starbucks was also minimal. What SQ came out with is disruptive and transformational, which really isn’t the case with MQ. In fact, the CEO punted a little in a recent investor call with Citi where he was asked if MQ is disrupting or creating new market. There is a lot to like about MQ but think $10B valuation may seem reasonable in a frothy market which otherwise is fairly rich. As they get more into credit card business, there is a possibility for MQ to earn higher interchange revenue in value if not in % of IR.
great analysis, thanks
This is an amazing breakdown and is what I was expecting from techcrunch, seeing as they actually charge a fee for it lol. Thank you so much for your time and effort while keeping it free for everyone.
Finix link not working. Also, is the reason Square doesn't do this itself because of Durbin, do you think?