By Senad Karaahmetovic 

Marqeta (NASDAQ:) shares tumbled greater than 20% in pre-market Wednesday after the corporate reported This autumn outcomes and gave a forecast for the primary quarter.

The corporate a loss per share of $0.05 on income of $203.8 million, beating the consensus for a loss per share of $0.10 on income of $201.9M. The adjusted EBITDA margin got here in at -4%, higher than the anticipated -5.8%.

“We’re coming into 2023 uniquely positioned to seize the huge alternative in embedded finance. Our cloud-native and API-first platform affords a completely bundled providing – debit, credit score, threat, cash motion and program administration instruments, making it seamless for our prospects to embed monetary providers into their very own merchandise,” mentioned Simon Khalaf, CEO of Marqeta.

For this quarter, the corporate expects its income to extend between 26-28% whereas the adjusted EBITDA margin is seen between -5% and -6%, worse than the anticipated -3.2%.

JPMorgan analysts downgraded the inventory to Impartial from Obese with a worth goal of $6 per share, down from the prior $9.

“Whereas we just like the strategic worth and long-term operational enhancements being put in place at Marqeta, we really feel it’s time to transfer to the sideline on the inventory given trade-off of decrease near-term development with longer-term certainty as a consequence of stepped up renewals together with Visa that shocked us to the draw back,” the analysts mentioned in a consumer notice.

Wolfe Analysis analysts additionally mentioned the corporate is going through “too many near-term headwinds,” which offset long-term potential.

“MQ’s 4Q outcomes had been in-line on revs and beat on EBITDA. Nonetheless, steerage was under as a consequence of contract renewals and community incentives. These components are overshadowing a normalized mid-20%+ GP development charge, and traders possible have to see extra to regain confidence,” the analysts mentioned.