Marqeta shares drop when Jason Gardner leaves CEO

Payment processor share market It fell 24% Thursday after founder Jason Gardner announced plans to step down as CEO, and the company said it was being cautious given challenges in the economy and the fintech sector.

Gardner founded Marqeta in 2010 and grew it into a company that was valued at over $16 billion upon its inception For the first time in the stock market last year. However, the stock is down more than 75% from its high, and weakness in the broader tech market has pushed the company’s valuation below $5 billion.

“To maximize the next phase of growth, as we diversify the businesses and capabilities we offer and the geographies we serve, we want to be very proactive and begin the succession planning process by looking for the next CEO to lead Marketa,” Gardner said. Analysts on earnings call. He said he will remain as CEO and remain CEO as the company searches for a successor.

Marqeta sells payment technology designed to detect potential fraud and ensure that funds are channeled correctly. The company issues customized physical cards similar to credit and debit cards, which contractors handle DoorDash Or use Instacart to make purchases at the point of sale of restaurants or supermarkets.

to me Second QuarterMarqeta beat estimates as revenue jumped 53% from a year ago to $187 million. But Chief Financial Officer Mike Milotic warned of economic challenges on the horizon. “It is wise to be cautious about the next several months,” he said.

In particular, Milotich said that many customers who signed up in the past year, including crypto companies, will grow their business more slowly than previously expected. He also cited “the challenges of fintech with a significant drop in valuation and increasing difficulties in raising capital.”

However, analysts at KeyBanc Capital Markets raised their target price to $12 from $11 and increased their revenue estimate for the year.

“Based on our research, we believe Marketa has established a strong market presence with clients based on platform modularity, speed of innovation, roadmap, deep domain knowledge, fair and consistent contract terms, strong marketing capabilities, and an overall desire to expand the international presence,” KeyBanc analysts wrote in a note after the announcement. Results late on Wednesday.

Watch: Marketa CEO on the need for diversification