Green Dot Corporation · NYSE:GDOT
Green Dot — Investor Presentation (February 2015)
22 slides from Green Dot's investor presentation, Feb 11, 2015
Slide 1: Today's Green Dot Investor Relations discussion materials Q1 2015
Q1 2015 Today’s Green Dot Investor Relations discussion materials
Slide 2: About Non-GAAP Financial Measures and Forward-Looking Statements
About Non-GAAP Financial Measures During this presentation, references to financial measures of Green Dot Corporation will include references to non-GAAP financial measures. For an explanation to the most directly comparable GAAP financial measures, see the Appendix to these materials or the Supplem
Slide 3: Our mission: reinvent personal banking for the masses
unbanked underbanked unhappily banked new to banking millennials to reinvent personal banking for the MASSES our mission 3 A m e r i c a n f a m i l i e s e a r n i n g l e s s t h a n $ 7 5 k
Slide 4: Compelling Opportunity: FinTech-Centric Branchless Bank
Compelling Opportunity Green Dot is a Strong, Diversified, Profitable and Growing “FinTech-Centric Branchless Bank” • Bank of Today’s America – Providing award-winning, foundational banking solutions to consumers with HHI < $75k per year; a segment comprising >60% of all U.S. households • Enterprise
Slide 5: About our Revenue
About our Revenue Growing, Mostly Recurring and Increasingly Diverse • Revenues generated from the base of reloading GPR customers and from cash processing have historically comprised approximately 70-75% of non-GAAP total operating revenues • In 2015, this recurring revenue from “prepaid” and “proc
Slide 6: Capital Allocation
Capital Allocation Our model generates significant net cash provided by operating activities • Vertically integrated, enterprise scale platform and "infrastructure light” distribution model allows a majority of our adjusted EBITDA to convert to cash • Approximately $130-140 million in net cash provi
Slide 7: Sources of Revenue
Sources of Revenue • We generate revenues from a diversified group of products and services (“product lines”) and multiple channels within those product lines • Our product lines are as follows: Branded deposit account programs Private label deposit account programs Processing and settlement s
Slide 8: Branded Deposit Account Programs
Branded Deposit Account Programs Overview: • Consists of revenues derived from Green Dot-branded GPR accounts, GoBank-branded checking accounts, all affinity-branded accounts and open loop gift card programs • Estimated percentage of 2015 non-GAAP total operating revenues: ~40% • Estimated revenue b
Slide 9: Private Label Deposit Account Programs
Private Label Deposit Account Programs Overview: • Consists of revenues derived from any private label program. Currently, we have only one private label program—the Walmart MoneyCard program • Estimated percentage of 2015 non-GAAP total operating revenues: ~30% Three-year growth opportunities: • Cr
Slide 10: Processing and Settlement Services
Processing and Settlement Services Overview: • Consists of cash transfer revenues derived from reloads over the Green Dot Network and revenue derived from tax refund processing services • Estimated percentage of 2015 non-GAAP total operating revenues: ~30% • The revenue from this product line is for
Slide 11: Banking Services
Banking Services Overview: • Green Dot Bank delivers material operational synergies on a consolidated basis. (Approximately $16M in fees in 2014 that were formerly paid to third party banks) • Green Dot Bank also earns income from traditional community banking activities and earns “float” from the i
Slide 12: Take a Fresh Look at Today's Green Dot
Take a Fresh Look at Today’s Green Dot • Today’s Green Dot is much larger and much more highly diversified than in 2010 • No program representing more than 30% of non-GAAP total operating revenues • 80% of revenues are recurring in nature • Numerous products and services- all targeted to low and mod
Slide 13: Outlook For 2015
Outlook For 2015 13 FY 2015 Q1 2015 Low – High Commentary Non-GAAP Total Operating Revenues(1) $720M - $780M 23% YOY Growth at the Midpoint ~ 30% of total forecast expected to occur in Q1 Greater MoneyPak headwinds expected in 1H v 2H Adjusted EBITDA(1) $150M - $170M 21% YOY Growth at the Midpoint ~
Slide 14: 2014-2015E Non-GAAP Total Operating Revenue Bridge
14 (B) (C) (D) (E) (F) (G) (A) 2014-2015E Non-GAAP Total Operating Revenue Bridge Notes: (A) Represents approximate revenue associated with the acquisition of TPG (B) Estimated revenue growth of 20% YoY associated with branded deposit account programs (C) Estimated revenue growth from AccountNow and
Slide 15: 2014-2015E Adjusted EBITDA Bridge
2014-2015E Adjusted EBITDA Bridge 15 (A) (B) (C) (D) (E) (F) (G) (H) (I) Notes: (A) Represents approximate contribution associated with the acquisition of TPG (B) Estimated contribution growth associated with branded deposit account programs. Reflects 29% estimated adjusted EBITDA margins on increme
Slide 16: Appendix
APPENDIX —4 eS smo Lem
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Total Operating Revenues to Non-GAAP Total Operating Revenues (1) (Unaudited) Year Ended December 31, 2014 (In thousands) Total operating revenues 601,552$ Stock-based retailer incentive compensation (2)(3) 8,932 Non-GAAP total operating revenues 610,484$ R
Slide 18: Non-GAAP Reconciliations: Forward Looking Guidance
Non-GAAP Reconciliations Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to Projected GAAP Total Operating Revenue (1) (Unaudited) Low High Total operating revenues 717$ 777$ Stock-based retailer incentive compensation (2)(3) 3 3 Non-GAAP total operating revenues 720$ 780$
Slide 19: Non-GAAP Reconciliations: Net Income and Diluted Shares
Non-GAAP Reconciliations Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to Projected GAAP Net Income (1) (Unaudited) Low High Net income 40$ 53$ Adjustments (7) 28 28 Non-GAAP net income 68$ 81$ Diluted earnings per share* GAAP 0.75$ 0.99$ Non-GAAP 1.24$ 1.47$ Diluted wei
Slide 20: Non-GAAP Reconciliations: CAGR
2010-2015 CAGR 2013-2015 CAGR Total operating revenues CAGR 15% 14% Stock-based retailer incentive compensation (2)(3) - -1% Non-GAAP total operating revenues CAGR 15% 13% 2010-2015 CAGR 2013-2015 CAGR Net income CAGR 2% 16% Adjustments (7) 8% 9% Adjusted EBITDA CAGR 10% 25% Reconciliation of Net In
Slide 21: Non-GAAP Reconciliation Footnotes
Non-GAAP Reconciliation Footnotes 1. To supplement the Company’s consolidated financial statements presented in accordance with GAAP, the Company uses measures of operating results that are adjusted to exclude various, primarily non-cash, expenses and charges. These financial measures are not calcul
Slide 22: Non-GAAP Reconciliation Footnotes
Non-GAAP Reconciliation Footnotes The Company 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 conside