Green Dot Reports Second Quarter 2024 Results
Green Dot (NYSE: GDOT) reported its Q2 2024 financial results, indicating an 11% YOY growth in total operating revenues to $407.1 million.
The company saw a net loss of $28.7 million and a diluted loss per share of $0.54, compared to net income of $578,000 and $0.01 earnings per share in Q2 2023. Adjusted EBITDA decreased by 13% to $34 million, and Non-GAAP net income declined by 30% to $13.4 million. Unencumbered cash was approximately $63 million as of June 30, 2024.
Key business metrics showed mixed performance: consolidated gross dollar volume increased to $32.1 billion, but the number of active accounts decreased to 3.41 million. Consumer services and B2B segments showed declines in active accounts and purchase volume.
The company renewed its largest BaaS partner and made significant investments in regulatory infrastructure to support long-term growth.
Green Dot (NYSE: GDOT) ha riportato i risultati finanziari per il secondo trimestre del 2024, evidenziando una crescita anno su anno del 11% nei ricavi totali operativi, raggiungendo 407,1 milioni di dollari.
L'azienda ha registrato una perdita netta di 28,7 milioni di dollari e una perdita diluita per azione di 0,54 dollari, rispetto a un reddito netto di 578.000 dollari e utili per azione di 0,01 dollari nel secondo trimestre del 2023. L'EBITDA rettificato è diminuito del 13% a 34 milioni di dollari, e il reddito netto Non-GAAP è calato del 30% a 13,4 milioni di dollari. Il denaro non vincolato era di circa 63 milioni di dollari alla data del 30 giugno 2024.
I principali indicatori aziendali hanno mostrato performance miste: il volume lordo consolidato in dollari è aumentato a 32,1 miliardi di dollari, ma il numero di conti attivi è diminuito a 3,41 milioni. I segmenti dei servizi ai consumatori e B2B hanno mostrato un calo nei conti attivi e nel volume degli acquisti.
L'azienda ha rinnovato il suo principale partner BaaS e ha effettuato investimenti significativi nelle infrastrutture regolatorie per supportare la crescita a lungo termine.
Green Dot (NYSE: GDOT) reportó sus resultados financieros del segundo trimestre de 2024, indicando un crecimiento del 11% interanual en los ingresos operativos totales, alcanzando los 407,1 millones de dólares.
La compañía experimentó una pérdida neta de 28,7 millones de dólares y una pérdida diluida por acción de 0,54 dólares, en comparación con un ingreso neto de 578.000 dólares y ganancias por acción de 0,01 dólares en el segundo trimestre de 2023. El EBITDA ajustado disminuyó un 13% a 34 millones de dólares, y el ingreso neto no-GAAP bajó un 30% a 13,4 millones de dólares. El efectivo no comprometido era de aproximadamente 63 millones de dólares a partir del 30 de junio de 2024.
Los indicadores clave del negocio mostraron un rendimiento mixto: el volumen bruto consolidado en dólares aumentó a 32,1 mil millones de dólares, pero el número de cuentas activas disminuyó a 3,41 millones. Los segmentos de servicios al consumidor y B2B mostraron caídas en cuentas activas y volumen de compras.
La empresa renovó su mayor socio de BaaS y realizó inversiones significativas en infraestructura regulatoria para apoyar el crecimiento a largo plazo.
그린닷 (NYSE: GDOT)은 2024년 2분기 재무 결과를 발표하며, 총 운영 수익이 4억 7천만 달러에 달해 전년 대비 11% 성장했다고 밝혔습니다.
회사는 2천8백70만 달러의 순손실과 주당 희석 손실 0.54달러를 기록했으며, 이는 2023년 2분기의 순이익 57만8천 달러 및 주당 0.01달러 이익에 비해 하락한 수치입니다. 조정 EBITDA는 13% 감소하여 3천4백만 달러, 비-GAAP 순이익은 30% 감소하여 1천3백40만 달러였습니다. 2024년 6월 30일 기준으로 순자산으로 따진 현금은 약 6천3백만 달러였습니다.
주요 사업 지표는 혼합된 성과를 보였습니다: 통합 총 달러 거래량은 321억 달러로 증가했으나, 활성 계정 수는 341만 개로 감소했습니다. 소비자 서비스 및 B2B 부문은 활성 계정과 구매량에서 감소세를 보였습니다.
회사는 주요 BaaS 파트너를 갱신하고 장기 성장을 지원하기 위해 규제 인프라에 상당한 투자를 진행했습니다.
Green Dot (NYSE: GDOT) a publié ses résultats financiers pour le deuxième trimestre 2024, indiquant une croissance de 11 % d'une année sur l'autre des revenus opérationnels totaux, atteignant 407,1 millions de dollars.
L'entreprise a enregistré une perte nette de 28,7 millions de dollars et une perte diluée par action de 0,54 dollar, contre un revenu net de 578 000 dollars et un bénéfice par action de 0,01 dollar au deuxième trimestre 2023. L'EBITDA ajusté a diminué de 13 % pour s'établir à 34 millions de dollars, et le bénéfice net non-GAAP a chuté de 30 % à 13,4 millions de dollars. La trésorerie non grevée était d'environ 63 millions de dollars au 30 juin 2024.
Les principaux indicateurs commerciaux ont montré des performances mixtes : le volume brut consolidé en dollars a augmenté à 32,1 milliards de dollars, mais le nombre de comptes actifs a diminué à 3,41 millions. Les segments des services aux consommateurs et B2B ont montré des baisses dans le nombre de comptes actifs et le volume des achats.
L'entreprise a renouvelé son plus grand partenaire BaaS et a effectué des investissements significatifs dans l'infrastructure réglementaire pour soutenir la croissance à long terme.
Green Dot (NYSE: GDOT) hat seine Finanzergebnisse für das 2. Quartal 2024 veröffentlicht und ein Wachstum von 11% gegenüber dem Vorjahr bei den gesamten Betriebseinnahmen auf 407,1 Millionen Dollar gemeldet.
Das Unternehmen verzeichnete einen Nettverlust von 28,7 Millionen Dollar und einen verwässerten Verlust je Aktie von 0,54 Dollar, im Vergleich zu einem Nettogewinn von 578.000 Dollar und einem Gewinn je Aktie von 0,01 Dollar im 2. Quartal 2023. Das bereinigte EBITDA sank um 13% auf 34 Millionen Dollar, und der Non-GAAP Nettogewinn fiel um 30% auf 13,4 Millionen Dollar. Der ungebundene Cash-Bestand betrug zum 30. Juni 2024 etwa 63 Millionen Dollar.
Die wichtigsten Unternehmenskennzahlen zeigten eine gemischte Leistung: Das konsolidierte Brutto-Dollar-Volumen stieg auf 32,1 Milliarden Dollar, aber die Anzahl der aktiven Konten sank auf 3,41 Millionen. Die Segmente Verbraucher und B2B wiesen Rückgänge bei aktiven Konten und Kaufvolumen auf.
Das Unternehmen hat seinen größten BaaS-Partner erneuert und signifikante Investitionen in die regulatorische Infrastruktur getätigt, um das langfristige Wachstum zu unterstützen.
- Total operating revenues grew 11% YOY to $407.1 million.
- Renewal of largest BaaS partner.
- Strong momentum in BaaS channel.
- Net loss of $28.7 million compared to net income of $578,000 in Q2 2023.
- Diluted loss per share of $0.54, down from $0.01 earnings per share in Q2 2023.
- Adjusted EBITDA decreased 13% to $34 million.
- Non-GAAP net income declined by 30% to $13.4 million.
- Decrease in active accounts and purchase volume in Consumer and B2B segments.
Insights
Green Dot's Q2 2024 results show mixed performance. While total operating revenues increased by
The adjusted EBITDA margin declined from
The renewal of Green Dot's largest BaaS partner is a positive sign, but the decline in active accounts and purchase volume in the Consumer Services segment is concerning. The B2B Services segment shows promise with growing gross dollar volume and active accounts.
Green Dot's strategic focus on Banking-as-a-Service (BaaS) and embedded finance is timely, given the growing demand for these services. The renewal of their largest BaaS partner and a robust business pipeline indicate potential for future growth in this sector.
However, the company faces challenges in its traditional consumer business, with declining active accounts and purchase volumes. This shift highlights the evolving landscape of digital banking and the need for continuous innovation.
The increased investments in regulatory infrastructure, while impacting short-term profitability, are important for long-term sustainability in the highly regulated fintech space. This proactive approach could position Green Dot favorably against competitors who may face regulatory hurdles in the future.
Green Dot's increased focus on enhancing risk management and regulatory compliance is a prudent move in the current fintech environment. While this has impacted short-term profitability, it's essential for sustainable growth and maintaining trust with regulators and partners.
The company's decision to wind down many legacy cardholder programs in favor of GO2bank demonstrates a strategic shift towards more modern, streamlined offerings. This could potentially reduce operational complexity and associated risks.
However, the net loss and declining adjusted EBITDA margin suggest that Green Dot is in a transitional phase, balancing growth initiatives with regulatory investments. Investors should closely monitor how effectively the company manages this transition and returns to profitability.
Company Sees Growing Momentum in BaaS with Robust Business Pipeline and Key BaaS Partner Renewal, Increases Investments in Regulatory Infrastructure to Position Company for Growth
"It was a solid quarter with progress on many fronts as we renewed our largest BaaS partner and made strategic investments to enhance our risk management and regulatory compliance, and position the company for sustainable long-term growth,” said George Gresham, Chief Executive Officer of Green Dot. “We are seeing strong momentum in our business development efforts as we continue working with all our stakeholders to ensure Green Dot remains financially strong and to position us as a leader in the embedded finance market.”
Consolidated Results Summary
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
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|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
% Change |
|
(In thousands, except per share data and percentages) |
|
|
||||||||||||||||
GAAP financial results |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total operating revenues |
$ |
407,121 |
|
|
$ |
365,876 |
|
|
|
|
$ |
859,109 |
|
|
$ |
782,256 |
|
|
|
Net (loss) income |
$ |
(28,715 |
) |
|
$ |
578 |
|
|
* |
|
$ |
(23,965 |
) |
|
$ |
36,590 |
|
|
(165)% |
Diluted (loss) earnings per common share |
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
* |
|
$ |
(0.45 |
) |
|
$ |
0.70 |
|
|
(164)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP financial results1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP total operating revenues1 |
$ |
402,556 |
|
|
$ |
361,144 |
|
|
|
|
$ |
849,979 |
|
|
$ |
773,507 |
|
|
|
Adjusted EBITDA1 |
$ |
33,998 |
|
|
$ |
38,869 |
|
|
(13)% |
|
$ |
93,230 |
|
|
$ |
121,412 |
|
|
(23)% |
Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin) |
|
8.4 |
% |
|
|
10.8 |
% |
|
(2.4)% |
|
|
11.0 |
% |
|
|
15.7 |
% |
|
(4.7)% |
Non-GAAP net income1 |
$ |
13,386 |
|
|
$ |
19,154 |
|
|
(30)% |
|
$ |
44,826 |
|
|
$ |
70,447 |
|
|
(36)% |
Non-GAAP diluted earnings per share1 |
$ |
0.25 |
|
|
$ |
0.37 |
|
|
(32)% |
|
$ |
0.84 |
|
|
$ |
1.35 |
|
|
(38)% |
* - change not meaningful |
|
|
|
|
|
|
|
|
|
|
|
||||||||
Unencumbered cash at the holding company was approximately
1 |
Reconciliations of total operating revenues to non-GAAP total operating revenues, net income to adjusted EBITDA, net income to non-GAAP net income, and diluted earnings per share to non-GAAP diluted earnings per share, respectively, are provided in the tables immediately following the unaudited consolidated financial statements. Additional information about the Company's non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below. |
Key Metrics
The following table shows Green Dot's quarterly key business metrics for each of the last six calendar quarters on a consolidated basis and by each of its reportable segments. Please refer to Green Dot’s latest Annual Report on Form 10-K for a description of the key business metrics, as well as additional information regarding how Green Dot organizes its business by segment.
|
2024 |
|
2023 |
||||||||||||||
|
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
||||||||||
|
(In millions) |
||||||||||||||||
Consolidated * |
|
|
|
|
|
|
|
||||||||||
Gross dollar volume |
$ |
32,130 |
$ |
30,755 |
|
$ |
26,355 |
$ |
24,836 |
$ |
24,724 |
$ |
23,289 |
||||
Number of active accounts |
|
3.41 |
|
3.51 |
|
|
3.57 |
|
3.67 |
|
3.71 |
|
3.84 |
||||
Purchase volume |
$ |
5,012 |
$ |
5,274 |
|
$ |
5,273 |
$ |
5,362 |
$ |
5,734 |
$ |
6,145 |
||||
Consumer Services |
|
|
|
|
|
|
|
||||||||||
Gross dollar volume |
$ |
4,014 |
$ |
4,500 |
|
$ |
4,290 |
$ |
4,619 |
$ |
5,122 |
$ |
5,677 |
||||
Number of active accounts |
|
1.76 |
|
1.93 |
|
|
2.05 |
|
2.16 |
|
2.35 |
|
2.41 |
||||
Direct deposit active accounts |
|
0.45 |
|
0.46 |
|
|
0.49 |
|
0.52 |
|
0.59 |
|
0.60 |
||||
Purchase volume |
$ |
3,036 |
$ |
3,339 |
|
$ |
3,312 |
$ |
3,553 |
$ |
3,984 |
$ |
4,344 |
||||
B2B Services |
|
|
|
|
|
|
|
||||||||||
Gross dollar volume |
$ |
28,116 |
$ |
26,255 |
|
$ |
22,065 |
$ |
20,217 |
$ |
19,602 |
$ |
17,612 |
||||
Number of active accounts |
|
1.65 |
|
1.58 |
|
|
1.52 |
|
1.51 |
|
1.36 |
|
1.43 |
||||
Purchase volume |
$ |
1,976 |
$ |
1,935 |
|
$ |
1,961 |
$ |
1,809 |
$ |
1,750 |
$ |
1,801 |
||||
Money Movement |
|
|
|
|
|
|
|
||||||||||
Number of cash transfers |
|
8.15 |
|
7.77 |
|
|
8.19 |
|
8.31 |
|
8.66 |
|
8.70 |
||||
Number of tax refunds processed |
|
4.20 |
|
9.28 |
|
|
0.16 |
|
0.20 |
|
3.87 |
|
9.91 |
||||
* Represents the sum of Green Dot's Consumer Services and B2B (as defined herein) Services segments.
"Second quarter results were in-line with our internal expectations as we navigated the remaining impact of partner deconversions and portfolio sunsetting in the first half of 2023 and increased investment in our regulatory infrastructure," said Jess Unruh, Chief Financial Officer of Green Dot. "We saw improved momentum in our BaaS channel and we believe the recent launch of our new PLS program will provide additional momentum in the second half of the year.”
2024 Financial Guidance
Green Dot has updated its most recent financial outlook for 2024. Green Dot’s outlook is based on a number of assumptions that management believes are reasonable at the time of this earnings release. In particular, its outlook reflects several considerations, including but not limited to the current macro-economic environment, the effect of high inflation and interest rates, the impact of previously disclosed non-renewals of certain partnerships and programs, the company's decision to wind down many of its legacy cardholder programs in support of GO2bank, negative trends within certain channels of its business, investment in strategic initiatives and compliance programs, and cost reduction initiatives. Additionally, the civil money penalty and related expenses associated with Green Dot's consent order previously disclosed are expressly excluded from its non-GAAP measures and related financial outlook. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in Green Dot's filings with the Securities and Exchange Commission.
Total Non-GAAP Operating Revenues2
-
Green Dot now expects its guidance range for its full year non-GAAP total operating revenues2 to be between
$1.60 billion $1.70 billion 11% year over year at the mid-point.
Adjusted EBITDA2
-
Green Dot believes it may be at the low end of its guidance range for its full year adjusted EBITDA2, which it expects to be between
$170 million $180 million 2% year over year at the mid-point.
Non-GAAP EPS2
-
Green Dot believes it may be at the low end of its guidance range for its full year non-GAAP EPS2, which it expects to be between
$1.45 $1.59 6% year over year at the mid-point.
The components of Green Dot's non-GAAP EPS2 guidance range are as follows:
|
Range |
||||||
|
Low |
|
High |
||||
|
(In millions, except per share data) |
||||||
Adjusted EBITDA |
$ |
170.0 |
|
|
$ |
180.0 |
|
Depreciation and amortization* |
|
(66.0 |
) |
|
|
(66.0 |
) |
Net interest expense |
|
(3.0 |
) |
|
|
(3.0 |
) |
Non-GAAP pre-tax income |
$ |
101.0 |
|
|
$ |
111.0 |
|
Tax impact** |
|
(22.7 |
) |
|
|
(25.0 |
) |
Non-GAAP net income |
$ |
78.3 |
|
|
$ |
86.0 |
|
Diluted weighted-average shares issued and outstanding |
|
54.0 |
|
|
|
54.0 |
|
Non-GAAP earnings per share |
$ |
1.45 |
|
|
$ |
1.59 |
|
* |
Excludes the impact of amortization of acquired intangible assets |
** |
Assumes a non-GAAP effective tax rate of approximately |
2 |
|
For additional information, see reconciliations of forward-looking guidance for these non-GAAP financial measures to their respective, most directly comparable projected GAAP financial measures provided in the tables immediately following the reconciliation of Net Income to Adjusted EBITDA. |
Conference Call
Green Dot's management will host a conference call to discuss second quarter 2024 financial results today at 5:00 p.m. ET. The conference call can be accessed live from Green Dot's investor relations website at http://ir.greendot.com/. Green Dot uses this website as a tool to disclose important information about the company to investors and comply with its disclosure obligations under Regulation Fair Disclosure. A replay of the webcast will be available at the same website following the call. The replay will be available until Thursday, August 15, 2024.
Forward-Looking Statements
This earnings release contains forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements in the quotes of Green Dot's executive officers and under the heading "2024 Financial Guidance," and other future events that involve risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements contained in this earnings release, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from those projected include, among other things, Green Dot’s ability to achieve the expected cost savings and other benefits from its processor conversions, impacts from and changes in general economic conditions on Green Dot’s business, results of operations and financial condition, shifts in consumer behavior towards electronic payments, the timing and impact of revenue growth activities, Green Dot's dependence on revenues derived from Walmart or other large partners, the timing and impact of non-renewals or terminations of agreements with other large partners, impact of competition, Green Dot's reliance on retail distributors for the promotion of its products and services, demand for Green Dot's new and existing products and services, continued and improving returns from Green Dot's investments in strategic initiatives, Green Dot's ability to operate in a highly regulated environment, including with respect to any restrictions imposed on its business, changes to governmental policies or rulemaking or enforcement priorities affecting financial institutions or to existing laws or regulations affecting Green Dot's operating methods or economics, Green Dot's reliance on third-party vendors, changes in credit card association or other network rules or standards, changes in card association and debit network fees or products or interchange rates, instances of fraud developments in the financial services industry that impact debit card usage generally, business interruption or systems failure, economic, political and other conditions may adversely affect trends in consumer spending and Green Dot's involvement in litigation or investigations. These and other risks are discussed in greater detail in Green Dot's Securities and Exchange Commission filings, including its most recent annual report on Form 10-K available on Green Dot's investor relations website at ir.greendot.com and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of August 8, 2024, and Green Dot assumes no obligation to update this information as a result of future events or developments, except as required by law.
About Non-GAAP Financial Measures
To supplement Green Dot's consolidated financial statements presented in accordance with accounting principles generally accepted in
About Green Dot
Green Dot Corporation (NYSE: GDOT) is a financial technology and registered bank holding company committed to giving all people the power to bank seamlessly, affordably, and with confidence. Green Dot’s technology platform enables it to build products and features that address the most pressing financial challenges of consumers and businesses, transforming the way they manage and move money and making financial empowerment more accessible for all.
Green Dot offers a broad set of financial products to consumers and businesses including debit, checking, credit, prepaid, and payroll cards, as well as robust money processing services, such as tax refunds, cash deposits and disbursements. Its flagship digital banking platform GO2bank offers consumers simple and accessible mobile banking designed to help improve financial health over time. The company’s banking platform services business enables a growing list of the world’s largest and most trusted consumer and technology brands to deploy customized, seamless, value-driven money management solutions for their customers.
Founded in 1999, Green Dot has served more than 33 million customers directly and many millions more through its partners. The Green Dot Network of more than 90,000 retail distribution locations nationwide, more than all remaining bank branches in the
GREEN DOT CORPORATION |
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CONSOLIDATED BALANCE SHEETS |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
(unaudited) |
|
|
||||
Assets |
(In thousands, except par value) |
||||||
Current assets: |
|
|
|
||||
Unrestricted cash and cash equivalents |
$ |
1,316,999 |
|
|
$ |
682,263 |
|
Restricted cash |
|
218 |
|
|
|
4,239 |
|
Investment securities available-for-sale, at fair value |
|
62,339 |
|
|
|
33,859 |
|
Settlement assets |
|
915,816 |
|
|
|
737,989 |
|
Accounts receivable, net |
|
75,881 |
|
|
|
110,141 |
|
Prepaid expenses and other assets |
|
51,734 |
|
|
|
69,419 |
|
Income tax receivable |
|
1,839 |
|
|
|
— |
|
Total current assets |
|
2,424,826 |
|
|
|
1,637,910 |
|
Investment securities available-for-sale, at fair value |
|
2,067,504 |
|
|
|
2,203,142 |
|
Loans to bank customers, net of allowance for credit losses of |
|
34,687 |
|
|
|
30,534 |
|
Prepaid expenses and other assets |
|
253,824 |
|
|
|
221,656 |
|
Property, equipment, and internal-use software, net |
|
175,210 |
|
|
|
179,376 |
|
Operating lease right-of-use assets |
|
3,869 |
|
|
|
5,342 |
|
Deferred expenses |
|
1,211 |
|
|
|
1,546 |
|
Net deferred tax assets |
|
148,310 |
|
|
|
117,139 |
|
Goodwill and intangible assets |
|
407,913 |
|
|
|
420,477 |
|
Total assets |
$ |
5,517,354 |
|
|
$ |
4,817,122 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
99,462 |
|
|
$ |
119,870 |
|
Deposits |
|
3,904,994 |
|
|
|
3,293,603 |
|
Obligations to customers |
|
368,590 |
|
|
|
314,278 |
|
Settlement obligations |
|
67,542 |
|
|
|
57,001 |
|
Amounts due to card issuing banks for overdrawn accounts |
|
84 |
|
|
|
225 |
|
Other accrued liabilities |
|
124,645 |
|
|
|
91,239 |
|
Operating lease liabilities |
|
2,650 |
|
|
|
3,369 |
|
Deferred revenue |
|
6,064 |
|
|
|
6,343 |
|
Line of credit |
|
62,000 |
|
|
|
61,000 |
|
Income tax payable |
|
8,307 |
|
|
|
6,262 |
|
Total current liabilities |
|
4,644,338 |
|
|
|
3,953,190 |
|
Other accrued liabilities |
|
1,388 |
|
|
|
1,895 |
|
Operating lease liabilities |
|
1,677 |
|
|
|
2,687 |
|
Total liabilities |
|
4,647,403 |
|
|
|
3,957,772 |
|
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Class A common stock, |
|
54 |
|
|
|
53 |
|
Additional paid-in capital |
|
392,810 |
|
|
|
375,980 |
|
Retained earnings |
|
746,339 |
|
|
|
770,304 |
|
Accumulated other comprehensive loss |
|
(269,252 |
) |
|
|
(286,987 |
) |
Total stockholders’ equity |
|
869,951 |
|
|
|
859,350 |
|
Total liabilities and stockholders’ equity |
$ |
5,517,354 |
|
|
$ |
4,817,122 |
|
GREEN DOT CORPORATION |
|||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(UNAUDITED) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands, except per share data) |
||||||||||||||
Operating revenues: |
|
|
|
|
|
|
|
||||||||
Card revenues and other fees |
$ |
286,127 |
|
|
$ |
242,107 |
|
|
$ |
567,630 |
|
|
$ |
481,973 |
|
Cash processing revenues |
|
56,744 |
|
|
|
53,846 |
|
|
|
163,550 |
|
|
|
155,669 |
|
Interchange revenues |
|
49,585 |
|
|
|
59,967 |
|
|
|
100,553 |
|
|
|
123,982 |
|
Interest income, net |
|
14,665 |
|
|
|
9,956 |
|
|
|
27,376 |
|
|
|
20,632 |
|
Total operating revenues |
|
407,121 |
|
|
|
365,876 |
|
|
|
859,109 |
|
|
|
782,256 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Sales and marketing expenses |
|
52,947 |
|
|
|
62,823 |
|
|
|
115,322 |
|
|
|
138,035 |
|
Compensation and benefits expenses |
|
61,348 |
|
|
|
64,985 |
|
|
|
128,172 |
|
|
|
133,766 |
|
Processing expenses |
|
207,896 |
|
|
|
153,126 |
|
|
|
403,562 |
|
|
|
298,180 |
|
Other general and administrative expenses |
|
108,597 |
|
|
|
80,156 |
|
|
|
225,166 |
|
|
|
156,494 |
|
Total operating expenses |
|
430,788 |
|
|
|
361,090 |
|
|
|
872,222 |
|
|
|
726,475 |
|
Operating (loss) income |
|
(23,667 |
) |
|
|
4,786 |
|
|
|
(13,113 |
) |
|
|
55,781 |
|
Interest expense, net |
|
1,272 |
|
|
|
238 |
|
|
|
2,729 |
|
|
|
1,882 |
|
Other expense, net |
|
(4,530 |
) |
|
|
(2,224 |
) |
|
|
(6,340 |
) |
|
|
(5,248 |
) |
(Loss) income before income taxes |
|
(29,469 |
) |
|
|
2,324 |
|
|
|
(22,182 |
) |
|
|
48,651 |
|
Income tax (benefit) expense |
|
(754 |
) |
|
|
1,746 |
|
|
|
1,783 |
|
|
|
12,061 |
|
Net (loss) income |
$ |
(28,715 |
) |
|
$ |
578 |
|
|
$ |
(23,965 |
) |
|
$ |
36,590 |
|
|
|
|
|
|
|
|
|
||||||||
Basic (loss) earnings per common share: |
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
$ |
(0.45 |
) |
|
$ |
0.70 |
|
Diluted (loss) earnings per common share |
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
$ |
(0.45 |
) |
|
$ |
0.70 |
|
Basic weighted-average common shares issued and outstanding: |
|
53,452 |
|
|
|
52,193 |
|
|
|
53,197 |
|
|
|
52,004 |
|
Diluted weighted-average common shares issued and outstanding: |
|
53,452 |
|
|
|
52,437 |
|
|
|
53,197 |
|
|
|
52,201 |
|
GREEN DOT CORPORATION |
|||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(UNAUDITED) |
|||||||
|
Six Months Ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands) |
||||||
Operating activities |
|
|
|
||||
Net (loss) income |
$ |
(23,965 |
) |
|
$ |
36,590 |
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization of property, equipment and internal-use software |
|
32,259 |
|
|
|
27,587 |
|
Amortization of intangible assets |
|
11,049 |
|
|
|
12,945 |
|
Provision for uncollectible overdrawn accounts from purchase transactions |
|
11,261 |
|
|
|
5,529 |
|
Provision for loan losses |
|
16,747 |
|
|
|
15,731 |
|
Stock-based compensation |
|
15,872 |
|
|
|
19,798 |
|
Losses in equity method investments |
|
7,459 |
|
|
|
7,611 |
|
Amortization of discount on available-for-sale investment securities |
|
(1,133 |
) |
|
|
(1,129 |
) |
Impairment of long-lived assets |
|
4,936 |
|
|
|
— |
|
Other |
|
(1,040 |
) |
|
|
(2,293 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable, net |
|
22,999 |
|
|
|
7,799 |
|
Prepaid expenses and other assets |
|
12,936 |
|
|
|
16,023 |
|
Deferred expenses |
|
335 |
|
|
|
12,755 |
|
Accounts payable and other accrued liabilities |
|
12,021 |
|
|
|
(14,993 |
) |
Deferred revenue |
|
(789 |
) |
|
|
(17,466 |
) |
Income tax receivable/payable |
|
124 |
|
|
|
1,706 |
|
Other, net |
|
(397 |
) |
|
|
(427 |
) |
Net cash provided by operating activities |
|
120,674 |
|
|
|
127,766 |
|
|
|
|
|
||||
Investing activities |
|
|
|
||||
Proceeds from maturities of available-for-sale securities |
|
94,716 |
|
|
|
82,221 |
|
Proceeds from sales and calls of available-for-sale securities |
|
95 |
|
|
|
56 |
|
Payments for property, equipment and internal-use software |
|
(31,494 |
) |
|
|
(38,120 |
) |
Net changes in loans |
|
(20,204 |
) |
|
|
(17,866 |
) |
Investment in TailFin Labs, LLC |
|
(35,000 |
) |
|
|
(35,000 |
) |
Other investing activities |
|
(330 |
) |
|
|
(872 |
) |
Net cash provided by (used in) investing activities |
|
7,783 |
|
|
|
(9,581 |
) |
|
|
|
|
||||
Financing activities |
|
|
|
||||
Borrowings on revolving line of credit |
|
167,000 |
|
|
|
83,000 |
|
Repayments on revolving line of credit |
|
(166,000 |
) |
|
|
(118,000 |
) |
Proceeds from exercise of options and ESPP purchases |
|
2,719 |
|
|
|
3,415 |
|
Taxes paid related to net share settlement of equity awards |
|
(1,760 |
) |
|
|
(2,976 |
) |
Net changes in deposits |
|
613,273 |
|
|
|
(216,312 |
) |
Net changes in settlement assets and obligations to customers |
|
(112,974 |
) |
|
|
(21,705 |
) |
Net cash provided by (used in) financing activities |
|
502,258 |
|
|
|
(272,578 |
) |
|
|
|
|
||||
Net increase (decrease) in unrestricted cash, cash equivalents and restricted cash |
|
630,715 |
|
|
|
(154,393 |
) |
Unrestricted cash, cash equivalents and restricted cash, beginning of period |
|
686,502 |
|
|
|
819,845 |
|
Unrestricted cash, cash equivalents and restricted cash, end of period |
$ |
1,317,217 |
|
|
$ |
665,452 |
|
|
|
|
|
||||
Cash paid for interest |
$ |
6,360 |
|
|
$ |
2,721 |
|
Cash paid for income taxes |
$ |
1,219 |
|
|
$ |
9,289 |
|
|
|
|
|
||||
Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period: |
|
|
|
||||
Unrestricted cash and cash equivalents |
$ |
1,316,999 |
|
|
$ |
661,452 |
|
Restricted cash |
|
218 |
|
|
|
4,000 |
|
Total unrestricted cash, cash equivalents and restricted cash, end of period |
$ |
1,317,217 |
|
|
$ |
665,452 |
|
GREEN DOT CORPORATION |
|||||||||||||||
REPORTABLE SEGMENTS (UNAUDITED) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Segment Revenue |
(In thousands) |
||||||||||||||
Consumer Services |
$ |
96,620 |
|
|
$ |
129,091 |
|
|
$ |
197,232 |
|
|
$ |
268,924 |
|
B2B Services |
|
252,056 |
|
|
|
180,652 |
|
|
|
493,256 |
|
|
|
351,944 |
|
Money Movement Services |
|
52,963 |
|
|
|
49,974 |
|
|
|
156,113 |
|
|
|
148,215 |
|
Corporate and Other |
|
917 |
|
|
|
1,427 |
|
|
|
3,378 |
|
|
|
4,424 |
|
Total segment revenues |
|
402,556 |
|
|
|
361,144 |
|
|
|
849,979 |
|
|
|
773,507 |
|
BaaS commissions and processing expenses (8) |
|
5,046 |
|
|
|
5,418 |
|
|
|
10,146 |
|
|
|
10,178 |
|
Other income (9) |
|
(481 |
) |
|
|
(686 |
) |
|
|
(1,016 |
) |
|
|
(1,429 |
) |
Total operating revenues |
$ |
407,121 |
|
|
$ |
365,876 |
|
|
$ |
859,109 |
|
|
$ |
782,256 |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Segment Profit |
(In thousands) |
||||||||||||||
Consumer Services |
$ |
34,449 |
|
|
$ |
44,272 |
|
|
$ |
67,708 |
|
|
$ |
97,024 |
|
B2B Services |
|
19,078 |
|
|
|
17,706 |
|
|
|
37,361 |
|
|
|
39,925 |
|
Money Movement Services |
|
35,291 |
|
|
|
29,774 |
|
|
|
101,138 |
|
|
|
90,800 |
|
Corporate and Other |
|
(54,820 |
) |
|
|
(52,883 |
) |
|
|
(112,977 |
) |
|
|
(106,337 |
) |
Total segment profit * |
|
33,998 |
|
|
|
38,869 |
|
|
|
93,230 |
|
|
|
121,412 |
|
Reconciliation to (loss) income before income taxes |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization of property, equipment and internal-use software |
|
15,827 |
|
|
|
13,886 |
|
|
|
32,259 |
|
|
|
27,587 |
|
Stock based compensation and related employer taxes |
|
7,513 |
|
|
|
10,740 |
|
|
|
16,219 |
|
|
|
20,289 |
|
Amortization of acquired intangible assets |
|
5,385 |
|
|
|
7,281 |
|
|
|
11,049 |
|
|
|
12,945 |
|
Impairment charges |
|
2,115 |
|
|
|
— |
|
|
|
8,520 |
|
|
|
— |
|
Legal settlements and related expenses |
|
26,147 |
|
|
|
1,319 |
|
|
|
32,027 |
|
|
|
1,419 |
|
Other expense |
|
678 |
|
|
|
857 |
|
|
|
6,269 |
|
|
|
3,391 |
|
Operating (loss) income |
|
(23,667 |
) |
|
|
4,786 |
|
|
|
(13,113 |
) |
|
|
55,781 |
|
Interest expense, net |
|
1,272 |
|
|
|
238 |
|
|
|
2,729 |
|
|
|
1,882 |
|
Other expense, net |
|
(4,530 |
) |
|
|
(2,224 |
) |
|
|
(6,340 |
) |
|
|
(5,248 |
) |
(Loss) income before income taxes |
$ |
(29,469 |
) |
|
$ |
2,324 |
|
|
$ |
(22,182 |
) |
|
$ |
48,651 |
|
* Total segment profit is also referred to herein as adjusted EBITDA in its non-GAAP measures. Additional information about the Company's non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures." |
Green Dot's segment reporting is based on how its Chief Operating Decision Maker (“CODM”) manages its businesses, including resource allocation and performance assessment. Its CODM (who is the Chief Executive Officer) organizes and manages the businesses primarily on the basis of the channels in which its product and services are offered and uses net revenue and segment profit to assess profitability. Segment profit reflects each segment's net revenue less direct costs, such as sales and marketing expenses, processing expenses, third-party call center support and transaction losses. Green Dot’s operations are aggregated amongst three reportable segments: 1) Consumer Services, 2) Business to Business ("B2B") Services and 3) Money Movement Services.
The Corporate and Other segment primarily consists of net interest income, certain other investment income earned by Green Dot's bank, interest profit sharing arrangements with certain BaaS partners (a reduction of revenue), eliminations of inter-segment revenues and expenses, and unallocated corporate expenses, which include Green Dot's fixed expenses, such as salaries, wages and related benefits for its employees, professional services fees, software licenses, telephone and communication costs, rent, utilities, and insurance that are not considered when Green Dot's CODM evaluates segment performance. Non-cash expenses such as stock-based compensation, depreciation and amortization of long-lived assets, impairment charges and other non-recurring expenses that are not considered by Green Dot's CODM when it is evaluating overall consolidated financial results are excluded from its unallocated corporate expenses. Green Dot does not evaluate performance or allocate resources based on segment asset data, and therefore such information is not presented.
GREEN DOT CORPORATION |
|||||||||||||||
Reconciliation of Total Operating Revenues to Non-GAAP Total Operating Revenues (1) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands) |
||||||||||||||
Total operating revenues |
$ |
407,121 |
|
|
$ |
365,876 |
|
|
$ |
859,109 |
|
|
$ |
782,256 |
|
BaaS commissions and processing expenses (8) |
|
(5,046 |
) |
|
|
(5,418 |
) |
|
|
(10,146 |
) |
|
|
(10,178 |
) |
Other income (9) |
|
481 |
|
|
|
686 |
|
|
|
1,016 |
|
|
|
1,429 |
|
Non-GAAP total operating revenues |
$ |
402,556 |
|
|
$ |
361,144 |
|
|
$ |
849,979 |
|
|
$ |
773,507 |
|
Reconciliation of Net (Loss) Income to Non-GAAP Net Income (1) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands, except per share data) |
||||||||||||||
Net (loss) income |
$ |
(28,715 |
) |
|
$ |
578 |
|
|
$ |
(23,965 |
) |
|
$ |
36,590 |
|
Stock-based compensation and related employer payroll taxes (3) |
|
7,513 |
|
|
|
10,740 |
|
|
|
16,219 |
|
|
|
20,289 |
|
Amortization of acquired intangible assets (4) |
|
5,385 |
|
|
|
7,281 |
|
|
|
11,049 |
|
|
|
12,945 |
|
Transaction and related acquisition costs (4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
Amortization of deferred financing costs (5) |
|
36 |
|
|
|
36 |
|
|
|
72 |
|
|
|
72 |
|
Impairment charges (5) |
|
2,115 |
|
|
|
— |
|
|
|
8,520 |
|
|
|
— |
|
Legal settlements and related expenses (5) |
|
26,147 |
|
|
|
1,319 |
|
|
|
32,027 |
|
|
|
1,419 |
|
Losses in equity method investments (5) |
|
4,803 |
|
|
|
3,543 |
|
|
|
7,459 |
|
|
|
7,611 |
|
Change in fair value of loans held for sale (5) |
|
(10 |
) |
|
|
(689 |
) |
|
|
(235 |
) |
|
|
(929 |
) |
Extraordinary severance expenses (6) |
|
417 |
|
|
|
662 |
|
|
|
5,437 |
|
|
|
2,431 |
|
Other income, net (5) |
|
(2 |
) |
|
|
(435 |
) |
|
|
(52 |
) |
|
|
(471 |
) |
Income tax effect (7) |
|
(4,303 |
) |
|
|
(3,881 |
) |
|
|
(11,705 |
) |
|
|
(9,507 |
) |
Non-GAAP net income |
$ |
13,386 |
|
|
$ |
19,154 |
|
|
$ |
44,826 |
|
|
$ |
70,447 |
|
Diluted (loss) earnings per common share |
|
|
|
|
|
|
|
||||||||
GAAP |
$ |
(0.54 |
) |
|
$ |
0.01 |
|
|
$ |
(0.45 |
) |
|
$ |
0.70 |
|
Non-GAAP |
$ |
0.25 |
|
|
$ |
0.37 |
|
|
$ |
0.84 |
|
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted weighted-average common shares issued and outstanding |
|
|
|
|
|
|
|
||||||||
GAAP |
|
53,452 |
|
|
|
52,437 |
|
|
|
53,197 |
|
|
|
52,201 |
|
Non-GAAP |
|
53,998 |
|
|
|
52,437 |
|
|
|
53,572 |
|
|
|
52,201 |
|
Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average |
|||||||||||
Shares Issued and Outstanding |
|||||||||||
(Unaudited) |
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(In thousands) |
||||||||||
Diluted weighted-average shares issued and outstanding |
53,452 |
|
52,437 |
|
53,197 |
|
52,201 |
||||
Anti-dilutive shares due to GAAP net loss |
546 |
|
|
— |
|
|
375 |
|
|
— |
|
Non-GAAP diluted weighted-average shares issued and outstanding |
53,998 |
|
|
52,437 |
|
|
53,572 |
|
|
52,201 |
|
GREEN DOT CORPORATION |
|||||||||||
Supplemental Detail on Diluted Weighted-Average Common Shares Issued and Outstanding |
|||||||||||
(Unaudited) |
|||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||
|
(In thousands) |
||||||||||
Class A common stock outstanding as of June 30: |
53,707 |
|
|
52,341 |
|
|
53,707 |
|
|
52,341 |
|
Weighting adjustment |
(255 |
) |
|
(148 |
) |
|
(510 |
) |
|
(337 |
) |
Dilutive potential shares: |
|
|
|
|
|
|
|
||||
Service based restricted stock units |
528 |
|
|
192 |
|
|
360 |
|
|
135 |
|
Performance-based restricted stock units |
5 |
|
|
41 |
|
|
4 |
|
|
52 |
|
Employee stock purchase plan |
13 |
|
|
11 |
|
|
11 |
|
|
10 |
|
Diluted weighted-average shares issued and outstanding |
53,998 |
|
|
52,437 |
|
|
53,572 |
|
|
52,201 |
|
Reconciliation of Net (Loss) Income to Adjusted EBITDA (1) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(In thousands) |
||||||||||||||
Net (loss) income |
$ |
(28,715 |
) |
|
$ |
578 |
|
|
$ |
(23,965 |
) |
|
$ |
36,590 |
|
Interest expense, net (2) |
|
1,272 |
|
|
|
238 |
|
|
|
2,729 |
|
|
|
1,882 |
|
Income tax expense |
|
(754 |
) |
|
|
1,746 |
|
|
|
1,783 |
|
|
|
12,061 |
|
Depreciation and amortization of property, equipment and internal-use software (2) |
|
15,827 |
|
|
|
13,886 |
|
|
|
32,259 |
|
|
|
27,587 |
|
Stock-based compensation and related employer payroll taxes (2)(3) |
|
7,513 |
|
|
|
10,740 |
|
|
|
16,219 |
|
|
|
20,289 |
|
Amortization of acquired intangible assets (2)(4) |
|
5,385 |
|
|
|
7,281 |
|
|
|
11,049 |
|
|
|
12,945 |
|
Transaction and related acquisition costs (2)(4) |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3 |
) |
Impairment charges (2)(5) |
|
2,115 |
|
|
|
— |
|
|
|
8,520 |
|
|
|
— |
|
Legal settlements and related expenses (2)(5) |
|
26,147 |
|
|
|
1,319 |
|
|
|
32,027 |
|
|
|
1,419 |
|
Losses in equity method investments (2)(5) |
|
4,803 |
|
|
|
3,543 |
|
|
|
7,459 |
|
|
|
7,611 |
|
Change in fair value of loans held for sale (2)(5) |
|
(10 |
) |
|
|
(689 |
) |
|
|
(235 |
) |
|
|
(929 |
) |
Extraordinary severance expenses (2)(6) |
|
417 |
|
|
|
662 |
|
|
|
5,437 |
|
|
|
2,431 |
|
Other income, net (2)(5) |
|
(2 |
) |
|
|
(435 |
) |
|
|
(52 |
) |
|
|
(471 |
) |
Adjusted EBITDA |
$ |
33,998 |
|
|
$ |
38,869 |
|
|
$ |
93,230 |
|
|
$ |
121,412 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP total operating revenues |
$ |
402,556 |
|
|
$ |
361,144 |
|
|
$ |
849,979 |
|
|
$ |
773,507 |
|
Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin) |
|
8.4 |
% |
|
|
10.8 |
% |
|
|
11.0 |
% |
|
|
15.7 |
% |
GREEN DOT CORPORATION |
|||||||
Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to |
|||||||
Projected GAAP Total Operating Revenues (1) |
|||||||
(Unaudited) |
|||||||
|
FY 2024 |
||||||
|
Range |
||||||
|
Low |
|
High |
||||
|
(In millions) |
||||||
Total operating revenues |
$ |
1,617 |
|
|
$ |
1,717 |
|
Adjustments (8)(9) |
|
(17 |
) |
|
|
(17 |
) |
Non-GAAP total operating revenues |
$ |
1,600 |
|
|
$ |
1,700 |
|
Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to |
|||||||
Projected GAAP Net Loss (1) |
|||||||
(Unaudited) |
|||||||
|
FY 2024 |
||||||
|
Range |
||||||
|
Low |
|
High |
||||
|
(In millions) |
||||||
Net loss |
$ |
(16.0 |
) |
|
$ |
(5.2 |
) |
Adjustments (10) |
|
186.0 |
|
|
|
185.2 |
|
Adjusted EBITDA |
$ |
170.0 |
|
|
$ |
180.0 |
|
|
|
|
|
||||
Non-GAAP total operating revenues |
$ |
1,700 |
|
|
$ |
1,600 |
|
Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin) |
|
10.0 |
% |
|
|
11.3 |
% |
Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to |
|||||||
Projected GAAP Net Loss(1) |
|||||||
(Unaudited) |
|||||||
|
FY 2024 |
||||||
|
Range |
||||||
|
Low |
|
High |
||||
|
(In millions, except per share data) |
||||||
Net loss |
$ |
(16.0 |
) |
|
$ |
(5.2 |
) |
Adjustments (10) |
|
94.3 |
|
|
|
91.2 |
|
Non-GAAP net income |
$ |
78.3 |
|
|
$ |
86.0 |
|
Diluted earnings (loss) per share |
|
|
|
||||
GAAP |
$ |
(0.30 |
) |
|
$ |
(0.10 |
) |
Non-GAAP |
$ |
1.45 |
|
|
$ |
1.59 |
|
|
|
|
|
||||
Diluted weighted-average shares issued and outstanding |
|
|
|
||||
GAAP |
|
54.0 |
|
|
|
54.0 |
|
(1) |
To supplement Green Dot’s consolidated financial statements presented in accordance with GAAP, Green Dot uses measures of operating results that are adjusted to exclude various, primarily non-cash, expenses and charges. These financial measures are not calculated or presented in accordance with GAAP and should not be considered as alternatives to or substitutes for operating revenues, operating income, net income or any other measure of financial performance calculated and presented in accordance with GAAP. These financial measures may not be comparable to similarly-titled measures of other organizations because other organizations may not calculate their measures in the same manner as Green Dot does. These financial measures are adjusted to eliminate the impact of items that Green Dot does not consider indicative of its core operating performance. You are encouraged to evaluate these adjustments and the reasons Green Dot considers them appropriate. |
Green Dot believes that the non-GAAP financial measures it presents are useful to investors in evaluating Green Dot’s operating performance for the following reasons:
- adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items, such as non-operating net interest income and expense, income tax benefit and expense, depreciation and amortization, stock-based compensation and related employer payroll taxes, changes in the fair value of contingent consideration, transaction costs, impairment charges, extraordinary severance expenses, certain legal settlement and related expenses, earnings or losses from equity method investments, changes in the fair value of loans held for sale, and other charges and income that can vary substantially from company to company depending upon their respective financing structures and accounting policies, the book values of their assets, their capital structures and the methods by which their assets were acquired;
- securities analysts use adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies; and
-
Green Dot records stock-based compensation from period to period, and recorded stock-based compensation expenses and related employer payroll taxes, net of forfeitures, of approximately
$7.5 million $10.7 million
Green Dot’s management uses the non-GAAP financial measures:
- as measures of operating performance, because they exclude the impact of items not directly resulting from Green Dot’s core operations;
- for planning purposes, including the preparation of Green Dot’s annual operating budget;
- to allocate resources to enhance the financial performance of Green Dot’s business;
- to evaluate the effectiveness of Green Dot’s business strategies;
- to establish metrics for variable compensation; and
- in communications with Green Dot’s board of directors concerning Green Dot’s financial performance.
Green Dot understands that, although adjusted EBITDA and other non-GAAP financial measures are frequently used by investors and securities analysts in their evaluations of companies, these measures have limitations as an analytical tool, and you should not consider them in isolation or as substitutes for an analysis of Green Dot’s results of operations as reported under GAAP. Some of these limitations are:
- that these measures do not reflect Green Dot’s capital expenditures or future requirements for capital expenditures or other contractual commitments;
- that these measures do not reflect changes in, or cash requirements for, Green Dot’s working capital needs;
- that these measures do not reflect non-operating interest expense or interest income;
- that these measures do not reflect cash requirements for income taxes;
- that, although depreciation and amortization are non-cash charges, the assets being depreciated or amortized will often have to be replaced in the future, and these measures do not reflect any cash requirements for these replacements; and
- that other companies in Green Dot’s industry may calculate these measures differently than Green Dot does, limiting their usefulness as comparative measures.
(2) |
|
Green Dot does not include any income tax impact of the associated non-GAAP adjustment to adjusted EBITDA, as the case may be, because each of these adjustments to the non-GAAP financial measure is provided before income tax expense. |
(3) |
|
This expense consists primarily of expenses for restricted stock units (including performance-based restricted stock units) and related employer payroll taxes. Stock-based compensation expense is not comparable from period to period due to changes in the fair market value of Green Dot’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of Green Dot’s peers) and is not a key measure of Green Dot’s operations. Green Dot excludes stock-based compensation expense from its non-GAAP financial measures primarily because it consists of non-cash expenses that Green Dot does not believe are reflective of ongoing operating results. Green Dot also believes that it is not useful to investors to understand the impact of stock-based compensation to its results of operations. Further, the related employer payroll taxes are dependent upon volatility in Green Dot's stock price, as well as the timing and size of option exercises and vesting of restricted stock units, over which Green Dot has limited to no control. This expense is included as a component of compensation and benefits expenses on Green Dot's consolidated statements of operations. |
(4) |
|
Green Dot excludes certain income and expenses that are the result of acquisitions. These acquisition-related adjustments include items such as transaction costs, the amortization of acquired intangible assets, changes in the fair value of contingent consideration, settlements of contingencies established at time of acquisition and other acquisition related charges, such as integration charges and professional and legal fees, which result in Green Dot recording expenses or fair value adjustments in its GAAP financial statements. Green Dot analyzes the performance of its operations without regard to these adjustments. In determining whether any acquisition-related adjustment is appropriate, Green Dot takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations. These items are included as a component of other general and administrative expenses on Green Dot's consolidated statements of operations, as applicable for the periods presented. |
(5) |
|
Green Dot excludes certain income and expenses that are not reflective of ongoing operating results. It is difficult to estimate the amount or timing of these items in advance. Although these events are reflected in Green Dot's GAAP financial statements, Green Dot excludes them in its non-GAAP financial measures because Green Dot believes these items may limit the comparability of ongoing operations with prior and future periods. These adjustments include items such as amortization attributable to deferred financing costs, impairment charges related to long-lived assets, earnings or losses from equity method investments, legal settlements and related expenses, changes in the fair value of loans held for sale, realized gains on investment securities and other income and expenses, as applicable for the periods presented. In determining whether any such adjustment is appropriate, Green Dot takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations. Each of these adjustments, except for amortization of deferred financing costs, earnings and losses from equity method investments, fair value changes on loans held for sale, and realized gains on investment securities, which are all included below operating income, are included within other general and administrative expenses on Green Dot's consolidated statements of operations. |
(6) |
|
During the three and six months ended June 30, 2024, Green Dot recorded charges of |
(7) |
|
Represents the tax effect for the related non-GAAP measure adjustments using Green Dot's year to date non-GAAP effective tax rate. It also excludes both the impact of excess tax benefits related to stock-based compensation and the IRC §162(m) limitation that applies to performance-based restricted stock units expense as of June 30, 2024. |
(8) |
|
Represents commissions and certain processing-related costs associated with BaaS products and services where Green Dot does not control customer acquisition. This adjustment is netted against Green Dot's B2B Services revenues when evaluating segment performance. |
(9) |
|
Represents other non-interest investment income earned by Green Dot Bank. This amount is included along with operating interest income in Green Dot's Corporate and Other segment since the yield earned on these investments are generated on a recurring basis and earned similarly to its investment securities available for sale. |
(10) |
|
These amounts represent estimated adjustments for items such as income taxes, depreciation and amortization, employee stock-based compensation and related employer taxes, amortization attributable to deferred financing costs, impairment charges, extraordinary severance expenses, earnings and losses from equity method investments, changes in the fair value of loans held for sale, legal settlements and related expenses and other income and expenses. Employee stock-based compensation expense includes assumptions about the future fair value of the Company’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of the Company’s peers). |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808174796/en/
Investor Relations: IR@greendot.com
Media Relations: PR@greendotcorp.com
Source: Green Dot Corporation
FAQ
What were Green Dot's total operating revenues for Q2 2024?
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