growth – Fountainheadinvesting

Marqeta (MQ) $5.35

Marqeta is a credit card processor with clients like Block (Square), Affirm, and DoorDash.

Marqeta should grow in 2025, after two years of a slowdown in 2023 and 2024 (estimated).

Total Bookings with new clients and expansions with existing clients are growing well at over 50% and 60%. They’ve also done a good job on cost reduction.

The stock, though, could likely stagnate since they’re far from profitability. The other negative is that this is a commodity business with a lot of strong older players and several new upstarts, without any real competitive advantages. But Marqeta has a strong business relationship with Block, (51% of business) so that’s a plus, and their contract is in place through 2028.

The valuation is around 5X sales, and once growth resumes should be seen as cheap.

I think it’s worth looking into around $5. I’ll keep an eye on updates.

Earnings update – UiPath (PATH)

Excellent results all around, a lot of growth initiatives from new products and partnerships, the emphasis on execution and profitability was appreciated. The 20% cash flow margin for FY2025 is impressive.They seem to be walking the talk.

Q4 – FY 2024

Non-GAAP EPS of $0.22 beats by $0.06.
Revenue of $405.25M (+31.4% Y/Y) beats by $21.56M.
Achieves first quarter of GAAP profitability as a public company

Full Year Fiscal 2024 Financial Highlights

Revenue of $1.308 billion increased 24 percent year-over-year.
Net new ARR of $260 million.
GAAP gross margin was 85 percent.
Non-GAAP gross margin was 87 percent.
GAAP operating loss was $(165) million.
Non-GAAP operating income was $233 million.
Net cash flow from operations was $299 million.
Non-GAAP adjusted free cash flow was $309 million.

2025 Outlook:

Revenue in the range of $1.555 billion to $1.560 billion, better than 1.550 expected.
ARR in the range of $1.725 billion to $1.730 billion as of January 31, 2025
Non-GAAP operating income of approximately $295 million – 18% margin.
Full Year Non-GAAP cash flow should be around 20% of revenues $310Mn