Slide 1: Q2 2023 Results
Q2 2023 Results August 3rd, 2023 1 Green 1 Green DotDot Corporation CorporationConfidential Confidential
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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 Green Dot’s 2023 guidance, Green Dot’s ability to r
Slide 3: Key Q2 2023 Highlights and Themes
Key Q2 2023 Highlights and Themes 2Q23 Results In Final Stages of Platform GO2bank, Green Dot Network See Launched new BaaS Partner, Results impacted by client de- Conversions; Focus on Efficiency Solid Momentum Signed new FSC Partner conversions, tough expense comps and Executed 7 conversion events
Slide 4: Q2 2023 Results
Q2 2023 Results Non-GAAP Revenue1 Adjusted EBITDA1 Non-GAAP Revenue1 increased 2% • Consumer Services down 14% • B2B Services up 26% • Money Movement down 8% Adjusted EBITDA1 down 42% • Adjusted EBITDA Margin of ~10.8%, down 826 bps as the company works through de-conversion of BaaS partners, the im
Slide 5: Q2 2023 Key Metrics
Q2 2023 Key Metrics Actives1 Gross Dollar Volume Actives1 declined 20% • Consumer Services actives were down 15%, the slowest rate of decline in over a year. The retail channel continues to face secular headwinds while the direct channel continues to focus on growth of GO2bank while legacy brands de
Slide 6: Consumer Services
Consumer Services Segment Revenue Segment Profit Segment Revenue declined 14% • Declines were driven largely by headwinds in retail in addition to the de-conversion of a retail program • Revenue declined in the direct channel at a mid-single digit rate and continues to moderate. GO2bank saw solid gr
Slide 7: B2B Services
B2B Services Segment Revenue Segment Profit Segment Revenue increased 26% • Strong growth from a key BaaS partner remains partially offset by previously announced partner de-conversions • Rapid! PayCard saw solid growth in GDV and purchase volumes while interchange rates remained under pressure Segm
Slide 8: Money Movement Services
Money Movement Services Segment Revenue Segment Profit Segment Revenue decreased 8% • Tax was down from last year but is still up YTD while the Green Dot Network (GDN) saw mid-single digit declines though the declines are moderating. The moderation in growth in GDN revenue is attributable to the gro
Slide 9: Updated 2023 Guidance
Updated 2023 Guidance Low High Non-GAAP Operating Revenue1 $1,376.0 $1,462.0 Adjusted EBITDA1 $182.0 $188.0 Non-GAAP diluted EPS1 $1.80 $1.90 in millions, except for Non-GAAP EPS 1 Please see an appendix at the end of the presentation for a reconciliation of GAAP to Non-GAAP Measures 2 Excludes the
Slide 10: Appendix: Reportable Segments
Appendix: Reportable Segments esource allocation and performance assessment. Its CODM (who is the Chief Executive Officer) organizes and manages the business primarily on the basis of the channels in which its product and services are offered and uses net revenue and segment profit to assess profita
Slide 11: Appendix: Reportable Segments
Appendix: Reportable Segments 11 Green Dot Corporation Confidential
Slide 12: About Non-GAAP Financial Measures
Appendix: 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 operating results that are ad
Slide 13: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 13 Green Dot Corporation Confidential
Slide 14: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 14 Green Dot Corporation Confidential
Slide 15: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 15 Green Dot Corporation Confidential
Slide 16: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 16 Green Dot Corporation Confidential
Slide 17: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 1) rating 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 revenu
Slide 18: Appendix: Non-GAAP Financial Measures
Appendix: 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 tool, and you should not consi
Slide 19: Appendix: Non-GAAP Financial Measures
Appendix: 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 GAAP financial statements, Gree