Shares of Marqeta Inc. MQ, +11.82% were surging 7% in aftermarket trading Thursday after Square-parent Block Inc. SQ, +7.07% shared new metrics on adoption of its Cash Card in conjunction with its earnings report. Card-issuing company Marqeta powers Block’s Cash Card, which enables users of the Cash App mobile wallet to spend their funds. Block shared on its fourth-quarter earnings call that the Cash Card had more than 13 million monthly active users as of December, and spending on the card increased on a year-over-year basis. Block noted that the attach rate for the Cash Card was up to 31% of the monthly-active base, whereas it was 22% two years prior. Overall, Cash App users generated $45 billion in inflows to the mobile wallet during the December quarter. Users who load money onto the Cash App can then spend it on the Cash Card. Block, then named Square, was Marqeta’s largest customer ahead of the card-issuing company’s June 2021 initial public offering. Marqeta itself announced earlier in February that it expected to top the fourth-quarter forecasts for revenue and adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) that it had offered in November. Shares of Block were enjoying a sharp after-hours rally as well after the company’s report.
