Green Dot Corporation · NYSE:GDOT
Green Dot — Investor Presentation (February 2025)
46 slides from Green Dot's investor presentation, February 2025
Slide 1: Investor Overview
Investor Overview February 2025 1 Green Dot Corporation – Confidential
Slide 2: Disclaimer
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, future events that involve risks and uncertainties. Actual results may differ mater
Slide 3: Green Dot at a glance
Managed Process Support Green Dot at 80M accounts to date $ 230B every year + 7K partners nationwide a glance We are building an integrated set of banking, technology and + 90K Green Dot 6 Key business divisions Consumer Services Segment network platforms that power Network locations • Retail • Dire
Slide 4: Our Markets and Opportunities
OUR MARKETS AND OPPORTUNITIES 4 Green Dot Corporation – Confidential
Slide 5: Customer behavior is changing
Customer behavior is changing We are in the midst of a generational shift in how consumers access and utilize financial services Digital first Digital only Consumer Experience and Purpose and Consumers and SMB’s are Generational shift preference simplicity mission driven increasingly digital first,
Slide 6: We help businesses enhance their delivery models to better meet customer needs
We help businesses enhance their delivery models to better meet customer needs 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 help employees with access to their
Slide 7: The embedded finance market is vast and growing
The embedded finance market is vast and growing At least We are positioned to support its growth Expanded distribution of financial services 158M The number of Americans that need Financial services are being sourced and delivered outside of the traditional simple financial tools and financial servi
Slide 8: Large addressable market provides significant runway for growth
Large addressable market provides significant runway for growth Our strategy to support consumers and small / micro businesses represents a total addressable market (TAM) that exceeds $200 billion of opportunity Direct and retail Green Dot Paycard (rapid!) Tax Processing Banking-as-a-Service Network
Slide 9: We have a highly differentiated set of assets
We have a highly differentiated Integrated bank set of assets Modern technology platform We are modernizing our technology infrastructure on numerous fronts: 1) We are moving to a streamlined, low cost, scalable processing environment; 2) Upgrading our fraud and risk management tools; 3) Improving o
Slide 10: Integrate and capitalize on a set of unique, differentiated assets
Integrate and capitalize on a set of unique, differentiated assets New management team built over the last several years • George Gresham appointed CEO in October of 2022 Technology transformation • Moving to modern, streamlined processing environment • Anticipated to drive notable cost savings and
Slide 11: Investing in Platform Capabilities to Leverage Across the Enterprise
Investing in Platform Capabilities to Leverage Across the Enterprise BaaS ct Re re SMB tai Di l Configurable Product White Label Offering Platform Evolution Advance of Feature Disbursement Set Platforms e engagement Path to Driv Complete Core Credit Banking and Ex ard API Developer m p Technology r
Slide 12: Strategic opportunities for growth
Strategic opportunities for growth Retail Direct BaaS PayCard Work with retailers to offer Continue to build out feature Capitalize on the sizeable Build on success in the core embedded solutions in their digital functionality and grow brand embedded finance opportunity pay card business and invest
Slide 13: 2024 consolidated revenue and segment profit mix
2024 consolidated revenue and segment profit mix Revenue Segment Profit $M $M Corporate GDN $6 (0%) Retail Corporate Consumer $109 (6%) Tax $258 (15%) -$211 $109 (6%) Services $162 Paycard $85 (5%) Direct $145 (9%) Total Total $1,708 $165 BaaS B2B $997 (59%) Services Money $92 Consumer Segment B2B S
Slide 14: Consolidated results
Consolidated results Non-GAAP Revenue1 Adjusted EBITDA1 Non-GAAP Net Income1 Consolidated comments $M $123 $140 • Non-GAAP revenue in 2024 was up $1,708 $M $M $1,484 modestly with growth in B2B and Money $217 $239 $1,388 $1,424 $171 $165 $85 Movement offsetting pressure in the $74 ↑10% ↓28% ↓3% Cons
Slide 15: Reporting Segments and Supporting Divisions
REPORTING SEGMENTS AND SUPPORTING DIVISIONS 15 Green Dot Corporation – Confidential
Slide 16: Consumer Services Segment
CONSUMER Retail division SERVICES SEGMENT Direct division 16 Green Dot Corporation – Confidential
Slide 17: Consumer Services segment results
Consumer Services segment results Segment Revenue Segment Profit Gross Dollar Volume Segment comments $M $695 $31.5 • Revenue, volumes and actives have $M $B $587 $224 $222 declined as the consumer segment $499 $177 $23.3 $19.7 $162 $403 $16.6 faces headwinds from digital ↓26% ↓15% ↓1% ↓20% ↓9% ↓16%
Slide 18: Retail division
Retail division Partner with retailers to distribute Opportunities for growth checking accounts, such as • Beyond the Rack (BTR): Working with retailers to embed financial services within retailer’s digital eco-systems. This can GO2bank, and other products. include stored value accounts, digital wal
Slide 19: Retail division results
Retail division results Division Revenue Gross Dollar Volume Average Active Accounts Division comments $M $490 $B M • Division revenue, volumes and $21.0 2.62 $411 $15.5 1.95 accounts have faced secular $13.1 1.63 $339 $11.1 1.29 headwinds associated with $258 ↓26% ↓15% ↓16% ↓26% ↓16% ↓21% competiti
Slide 20: Direct division
Direct division We directly market to consumers via Opportunities for growth digital, TV and direct mail Sizable market: There is a sizeable market opportunity of over 75M consumers looking for better banking solutions. Since launching in January of 2021, GO2bank has grown to account for the vast Ad
Slide 21: Direct division results
Direct division results Division Revenue Gross Dollar Volume Average Active Accounts Division comments $M $B $10.5 M • Division revenue, volumes and actives $206 1.01 $176 $7.7 $6.6 0.73 were down in 2024 due to the strategic $159 $5.5 0.61 0.55 $145 decision to de-emphasize and sunset ↓26% ↓15% ↓17
Slide 22: B2B Services Segment
BaaS division B2B SERVICES SEGMENT Paycard division 22 Green Dot Corporation – Confidential
Slide 23: B2B Services segment results
B2B Services segment results Segment Revenue Segment Profit Gross Dollar Volume Segment comments $M $1,082 $M $73 $86 $77 $92 $B $115.1 • Segment revenue and GDV continue to $79.5 demonstrate strong growth due to the $773 $39.4 $50.2 performance of a large BaaS partner, $595 ↑18% ↓11% ↑19% ↑28% ↑58%
Slide 24: BaaS division
BaaS division We work with partners to deliver Opportunities for growth financial services to the end Sizable market: There is a sizeable market opportunity of ~$75B over the next few years as millions of businesses in the US begin to consumer more fully realize the value of directly delivering fina
Slide 25: BaaS division results
BaaS division results Division Revenue Gross Dollar Volume Division comments $M $B $105.8 • Division revenue growth of 45% $997 $69.6 driven by continued growth of a large $32.4 $41.3 partner, while the rest of the BaaS $688 $511 ↑27% ↑69% ↑52% portfolio returned to growth in 4Q24. $385 ↑33% ↑35% ↑4
Slide 26: rapid! PayCard division
rapid! PayCard division rapid! provides a comprehensive Opportunities for growth platform that provides employers with Continue to see opportunity to drive market share gains in the flexibility to pay employees in a the core pay card business: We continue to invest in sales and marketing to maintain
Slide 27: rapid! PayCard division results
rapid! PayCard division results Division Revenue Gross Dollar Volume Average Active Accounts Division comments $M $B M 0.84 0.80 • Revenue in 2024 remained $85 $85 0.74 $84 $9.0 $9.9 $9.3 0.66 impacted by declines in the $7.0 number active accounts in our $74 ↑28% ↑11% ↓7% temporary staffing vertica
Slide 28: Money Movement Segment
Green Dot MONEY Network division MOVEMENT SEGMENT Tax division 28 Green Dot Corporation – Confidential
Slide 29: Money Movement segment results
Money Movement segment results Segment Revenue Segment Profit $M $240 $M $123 $116 $118 Segment comments $113 $222 $218 ↓4% ↑8% • Consolidated revenue has faced ↑2% $210 challenges in GDN due to a decrease in ↓7% ↑4% ↓6% 2021 2022 2023 2024 our active accounts, particularly in the Consumer segment.
Slide 30: Green Dot Network division (GDN)
Green Dot Network division (GDN) The Green Dot Network spans more than 90,000 Opportunities for growth retail locations throughout the U.S. and features Improve business development efforts and branding to cash-in and cash-out capabilities to GDOT card grow 3rd party network partners: While GDOT car
Slide 31: Green Dot Network division results
Green Dot Network division results Division Revenue Revenue Per Transaction1 Division comments $3.66 • Division revenue is still impacted by a $M decreasing active account base, $148 $3.50 particularly in the Consumer segment. $126 $115 $109 $3.41 Although these challenges are easing, $3.38 they per
Slide 32: Tax processing division
Tax processing division We work with online tax providers Opportunities for growth and over 27K independent tax Continue to gain market share in core business: Santa Barbara Tax Processing Group (sbtpg) has consistently gained market share preparations firms to help process in the RT market and rema
Slide 33: Tax processing division results
Tax processing division results Division comments Division Revenue Tax Refunds Processed Revenue Per Refund Transfer1 $109 $7.85 • In 2024, the division experienced an $M M $7.53 increase in revenue, attributed to the 14.6 14.1 13.8 12.1 expansion of value-added services and $96 $94 $6.58 $6.67 favo
Slide 34: Appendix
APPENDIX 34 Green Dot Corporation – Confidential
Slide 35: Reportable Segments
Reportable Segments Green Dot's segment reporting is based on how its Chief Operating Decision Maker (“CODM”) manages its businesses, including resource allocation and performance assessment. Its CODM (who is the Chief Executive Officer) organizes and manages the businesses primarily on the basis of
Slide 36: Reportable Segments
Reportable Segments 2021 2022 2023 2024 ($ In millions) FY FY FY FY Segment Revenue Consumer Services $694.7 $586.8 $498.6 $402.4 B2B Services 458.6 594.5 773.0 1,081.8 Money Movement Services 239.7 222.2 209.7 217.7 Corporate and Other (5.1) 20.1 2.5 5.8 Total segment revenues 1,387.9 1,423.6 1,483
Slide 37: Non-GAAP Financial Measures
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 adjusted for
Slide 38: Reconciliation of Total Operating Revenues to Non-GAAP Total Operating Revenues
Reconciliation of Total Operating Revenues to Non- GAAP Total Operating Revenues1 2021 2022 2023 2024 (In millions) FY FY FY FY Total operating revenues $1,433.2 $1,449.6 $1,501.3 $1,723.9 Net revenue adjustments8 (45.3) (28.8) (20.4) (18.9) Other income9 – 2.9 2.9 2.7 Non-GAAP total operating reven
Slide 39: Reconciliation of Net Income (Loss) to Non-GAAP Net Income
Reconciliation of Net Income (Loss) to Non-GAAP Net Income1 2021 2022 2023 2024 (In millions, except per share data) FY FY FY FY Net income (loss) $47.5 $64.2 $6.7 $(26.7) Stock-based compensation and related employer payroll taxes3 51.6 35.4 34.3 30.3 Amortization of acquired intangible assets4 27.
Slide 40: Reconciliation of Net Income (Loss) to Adjusted EBITDA
Reconciliation of Net Income (Loss) to Adjusted EBITDA1 2021 2022 2023 2024 (In millions, except percentages) FY FY FY FY Net income (loss) $47.5 $64.2 $6.7 $(26.7) 2 Interest expense, net 0.2 0.3 3.0 5.5 Income tax expense 16.2 19.7 7.9 4.2 2 Depreciation and amortization of property, equipment and
Slide 41: Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average Shares Issued and Outstanding
Reconciliation of GAAP to Non-GAAP Diluted Weighted- Average Shares Issued and Outstanding 2021 2022 2023 2024 (In millions) FY FY FY FY Diluted weighted-average shares issued and outstanding 55.2 53.9 52.5 53.5 Weighted-average unvested Walmart restricted shares10 0.5 0.1 – – Anti-dilutive shares d
Slide 42: Supplemental Detail on Non-GAAP Diluted Weighted-Average Shares Issued and Outstanding
Supplemental Detail on Non-GAAP Diluted Weighted- Average Shares Issued and Outstanding 2021 2022 2023 2024 (In millions) FY FY FY FY Total stock outstanding at end of period: 54.9 51.7 52.8 54.2 Weighting adjustment (0.3) 1.8 (0.6) (0.7) Dilutive potential shares: Stock options 0.5 0.0 0.0 0.0 Rest
Slide 43: Non-GAAP Financial Measures
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 financial measures are not calculated or pr
Slide 44: Non-GAAP Financial Measures
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 consider them i
Slide 45: Non-GAAP Financial Measures
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, Green Dot excl
Slide 46: @greendot
@ greendot