Slide 1: Investor Overview March 2023
1 Green Dot Corporation – Confidential Investor Overview March 2023
Slide 2: Disclaimer
2 Green Dot Corporation – Confidential Disclaimer This presentation 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 regarding market growth, anticipa
Slide 3: Green Dot at a glance
3 Green Dot Corporation – Confidential 67MGreen Dot at a glance We are building an integrated set of banking, technology and network platforms that power consumers and our partners with market-leading, cost-efficient financial tools and experiences Consumer Services Segment • Retail • Direct (GO2ban
Slide 4: Our Markets and Opportunities
4 Green Dot Corporation – Confidential OUR MARKETS AND OPPORTUNITIES
Slide 5: Customer behavior is changing
5 Green Dot Corporation – Confidential Customer behavior is changing We are in the midst of a generational shift in how consumers access and utilize financial services Digital first Consumers and SMB’s are increasingly digital first, even with financial services. The shift that was seen in retail wi
Slide 6: Businesses are changing their models to meet customer needs
6 Green Dot Corporation – Confidential Businesses are changing their models to meet customer needs – We can help Embedded finance Our ecosystem of partners are working to evolve their business models and leverage embedded finance to deepen customer relationships Employee support Employers want to he
Slide 7: The embedded finance market is vast and growing
7 Green Dot Corporation – Confidential 1. When a non-financial company adopts and integrates financial services into their offering. We are positioned to support its growth The embedded finance market is vast and growing Expanded distribution of financial services Financial services are being source
Slide 8: Total addressable market exceeds $200B of opportunity
8 Green Dot Corporation – Confidential Our strategy to support consumers and small/micro businesses (SMB) is a total addressable market (TAM) that exceeds over $200B of opportunity TAM BaaS $75B SMB Gig Wealth Digital wallet Creator economy Expense management Payroll e-Commerce Mortgage Gaming Inter
Slide 9: We have a highly differentiated set of assets
We have differentiated customer acquisition channels and partners; we work with major retailers and technology platforms. Our tax processing and pay card businesses have market leading positions. We have a highly differentiated set of assets With the completion of our technology transformation we ex
Slide 10: Integrate and capitalize on a set of unique, differentiated assets
10 Green Dot Corporation – Confidential Integrate and capitalize on a set of unique, differentiated assets New management team built over the last 3 years • George Gresham appointed CEO in October of 2022 Technology transformation • Moving to modern, streamlined processing environment • Anticipated
Slide 11: Investing in Platform Capabilities to Leverage Across the Enterprise
Investing in Platform Capabilities to Leverage Across the Enterprise Complete Core Banking and Technology Transformation Bank Operations Product Processing & Issuing GDN Strong core foundation supporting multiple distribution channels Scalable delivery Multiplier effect Low marginal cost for new fea
Slide 12: Strategic opportunities for growth
12 Green Dot Corporation – Confidential Strategic opportunities for growth Retail Work with retailers to offer embedded solutions in their digital experiences, i.e. “Beyond the Rack” Direct Continue to build out feature functionality and grow brand appeal of GO2bank BaaS Capitalize on the sizeable e
Slide 13: 2022 consolidated revenue and segment profit mix
13 Green Dot Corporation – Confidential 2022 consolidated revenue and segment profit mix Revenue Segment Profit Consumer Services $222 (93%) B2B Services $86 (36%)Money Movement Services $118 (49%) Total $239 Retail $411 (29%) Direct $176 (12%)BaaS $511 (36%) Paycard $84 (6%) Tax $96 (7%) GDN $126 (
Slide 14: Consolidated results
$1,058 $1,201 $1,388 $1,424 2019 2020 2021 2022 Consolidated results Non-GAAP Revenue1 Adjusted EBITDA1 $241 $206 $217 $239 2019 2020 2021 2022 $148 $115 $123 $140 2019 2020 2021 2022 $M $M Non-GAAP Net Income1 ↑16% ↓14% ↑5% ↓23% ↑7% $M $2.79 $2.11 $2.21 $2.5 9 2019 2020 2021 2022 Non-GAAP EPS1 Gros
Slide 15: Reporting Segments and Supporting Divisions
15 Green Dot Corporation – Confidential REPORTING SEGMENTS AND SUPPORTING DIVISIONS
Slide 16: Consumer Services Segment
16 Green Dot Corporation – Confidential CONSUMER SERVICES SEGMENT Retail division Direct division
Slide 17: Consumer Services segment results
$654 $620 $695 $587 2019 2020 2021 2022 Consumer Services segment results Segment Revenue Segment Profit $257 $212 $224 $222 2019 2020 2021 2022 $28.2 $32.1 $31.5 $23.3 2019 2020 2021 2022 $M $B Gross Dollar Volume ↓5% ↑12% ↓16% ↓17% ↑5% ↓1% ↓26% $M 4.02 3.88 3.63 2.68 2019 2020 2021 2022 Average Ac
Slide 18: Retail division
18 Green Dot Corporation – Confidential Retail division Partner with retailers to distribute checking accounts, such as GO2bank, and other products. Total addressable market: Over 150M unbanked and underbanked consumers and 310M users of retailer apps, estimated at an opportunity of ~$20B • Partner
Slide 19: Retail division results
19 Green Dot Corporation – Confidential $476 $462 $489 $411 2019 2020 2021 2022 Retail division results Division Revenue $20.0 $22.4 $21.0 $15.5 2019 2020 2021 2022 $B Gross Dollar Volume ↓3% ↑6% ↓16% ↓7% ↓26% $M 3.14 2.96 2.62 1.95 2019 2020 2021 2022 Average Active Accounts Purchase Volume Per Act
Slide 20: Direct division
20 Green Dot Corporation – Confidential Direct division We directly market to consumers via digital, TV and direct mail Addressable market: Over 75M consumers with less than $50K of annual income representing an opportunity of over $21B. • Comprised of numerous brands such as: GO2bank, RushCard, Gre
Slide 21: Direct division results
21 Green Dot Corporation – Confidential $178 $159 $206 $176 2019 2020 2021 2022 Direct division results Division Revenue $8.2 $9.7 $10.5 $7.7 2019 2020 2021 2022 $B Gross Dollar Volume ↓11% ↑30% ↓14% ↑8% ↓26% $M 0.88 0.91 1.01 0.73 2019 2020 2021 2022 Average Active Accounts Purchase Volume Per Acti
Slide 22: B2B Services Segment
22 Green Dot Corporation – Confidential B2B SERVICES SEGMENT BaaS division Paycard division
Slide 23: B2B Services segment results
23 Green Dot Corporation – Confidential B2B Services segment results Segment comments • Segment revenue and GDV continue to demonstrate strong growth due to the performance of a large BaaS partner and growth in the paycard division. • Segment profits have seen consistent growth driven by both the Ba
Slide 24: BaaS division
24 Green Dot Corporation – Confidential BaaS division We work with partners to deliver financial services to the end Total addressable market: ~$75B of opportunity across numerous industry verticals and product opportunities • Key partners include; Amazon, Apple and Intuit • New partner to be onboar
Slide 25: BaaS division results
25 Green Dot Corporation – Confidential BaaS division results 25 Green Dot Corporation – Confidential $B$M $89 $243 $385 $511 2019 2020 2021 2022 ↑58%↑175% ↑33% $10.1 $20.5 $32.4 $41.3 2019 2020 2021 2022 ↑102% ↑58% ↑27% 0.81 1.24 1.34 0.99 2019 2020 2021 2022 ↓26%↑53% ↑8% Division comments • Divisi
Slide 26: rapid! PayCard division
26 Green Dot Corporation – Confidential rapid! PayCard division 26 Green Dot Corporation – Confidential rapid! provides a comprehensive platform that provides employers with the flexibility to pay employees in a variety of ways to accommodate the needs of todays workforce Addressable market: Pay car
Slide 27: rapid! PayCard division results
27 Green Dot Corporation – Confidential $58 $62 $74 $84 2019 2020 2021 2022 rapid! PayCard division results Division Revenue $5.1 $5.6 $7.0 $9.0 2019 2020 2021 2022 $B Gross Dollar Volume ↑20% ↑26% $M 0.65 0.67 0.74 0.84 2019 2020 2021 2022 Average Active Accounts Purchase Volume Per Active1 ↑10% $3
Slide 28: Money Movement Segment
28 Green Dot Corporation – Confidential MONEY MOVEMENT SEGMENT Green Dot Network division TPG division
Slide 29: Money Movement segment results
29 Green Dot Corporation – Confidential Money Movement segment results 29 Green Dot Corporation – Confidential $257 $288 $240 $222 2019 2020 2021 2022 $114 $124 $116 $118 2019 2020 2021 2022 $M ↓17% ↓6% $M 12.1 12.5 12.1 14.6 2019 2020 2021 2022 Segment Revenue Segment Profit Cash Transfers Tax Refu
Slide 30: Green Dot Network division (GDN)
30 Green Dot Corporation – Confidential Green Dot Network division (GDN) 30 Green Dot Corporation – Confidential The Green Dot Network spans more than 90,000 retail locations throughout the U.S. and features cash-in and cash-out capabilities to GDOT card holders and 3rd party network partner1 custom
Slide 31: Green Dot Network division results
31 Green Dot Corporation – Confidential Green Dot Network division results 31 Green Dot Corporation – Confidential $3.76 $3.88 $3.66 $3.50 2019 2020 2021 2022 ↑3% ↓6% 46.0 48.7 40.5 36.1 2019 2020 2021 2022 ↓11%↑6% ↓17% ↓4% Total Transactions Transaction Breakdown Revenue Per Transaction1 $173 $189
Slide 32: TPG tax processing division
32 Green Dot Corporation – Confidential TPG tax processing division 32 Green Dot Corporation – Confidential We work with online tax providers and over 27K independent tax preparations firms to help process 15M tax refunds annually, pay the tax preparer and provide the individual with their tax refun
Slide 33: Tax processing division results
33 Green Dot Corporation – Confidential Tax processing division results 33 Green Dot Corporation – Confidential $84 $99 $91 $96 2019 2020 2021 2022 $M Division Revenue Tax Refunds Processed Revenue Per Refund Transfer1 ↑18% ↓8% 12.1 12.5 12.1 14.6 2019 2020 2021 2022 ↑3% ↓3% ↑20% $6.95 $7.95 $7.53 $
Slide 34: Appendix
34 Green Dot Corporation – Confidential APPENDIX
Slide 35: Reportable Segments
35 Green Dot Corporation – Confidential Reportable Segments 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
Slide 36: Reportable Segments
36 Green Dot Corporation – Confidential Reportable Segments ($ In millions) 2019 2020 2021 2022 FY FY FY FY Segment Revenue Consumer Services $654.1 $620.4 $694.7 $586.8 B2B Services 146.5 304.7 458.6 594.5 Money Movement Services 257.1 288.0 239.7 222.2 Corporate and Other 0.6 (12.6) (5.1) 20.1 Tot
Slide 37: Non-GAAP Financial Measures
37 Green Dot Corporation – Confidential Non-GAAP Financial Measures About Non-GAAP Financial Measures To supplement Green Dot's consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (GAAP), Green Dot uses measures of o
Slide 38: Reconciliation of Total Operating Revenues to Non-GAAP Total Operating Revenues
38 Green Dot Corporation – Confidential Reconciliation of Total Operating Revenues to Non-GAAP Total Operating Revenues1 (In millions) 2019 2020 2021 2022 FY FY FY FY Total operating revenues $1,108.6 $1,253.8 $1,433.2 $1,449.6 Net revenue adjustments8 (50.3) (53.2) (45.3) (28.8) Other income9 – – –
Slide 39: Reconciliation of Net Income to Non-GAAP Net Income
39 Green Dot Corporation – Confidential Reconciliation of Net Income to Non-GAAP Net Income1 (In millions, except per share data) 2019 2020 2021 2022 FY FY FY FY Net income $99.9 $23.1 $47.5 $64.2 Stock-based compensation and related employer payroll taxes3 31.0 56.0 51.6 35.4 Amortization of acquir
Slide 40: Reconciliation of Net Income to Adjusted EBITDA
40 Green Dot Corporation – Confidential Reconciliation of Net Income to Adjusted EBITDA1 (In millions, except percentages) 2019 2020 2021 2022 FY FY FY FY Net income $99.9 $23.1 $47.5 $64.2 Interest expense, net 2 1.8 0.8 0.2 0.3 Income tax expense 21.2 5.0 16.2 19.7 Depreciation and amortization of
Slide 41: Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average Shares
41 Green Dot Corporation – Confidential Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average Shares Issued and Outstanding (In millions) 2019 2020 2021 2022 FY FY FY FY Diluted weighted-average shares issued and outstanding 53.1 53.7 55.2 53.9 Weighted-average unvested Walmart restricted shar
Slide 42: Supplemental Detail on Non-GAAP Diluted Weighted-Average Shares
42 Green Dot Corporation – Confidential Supplemental Detail on Non-GAAP Diluted Weighted-Average Shares Issued and Outstanding (In millions) 2019 2020 2021 2022 FY FY FY FY Total stock outstanding at end of period: 51.8 54.0 54.9 51.7 Weighting adjustment 0.4 (0.8) (0.3) 1.8 Dilutive potential share
Slide 43: Non-GAAP Financial Measures
43 Green Dot Corporation – Confidential Non-GAAP Financial Measures 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 fin
Slide 44: Non-GAAP Financial Measures
44 Green Dot Corporation – Confidential Non-GAAP Financial Measures 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
Slide 45: Non-GAAP Financial Measures
45 Green Dot Corporation – Confidential Non-GAAP Financial Measures 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 G
Slide 46: @greendot
@ greendot