Green Dot Corporation · NYSE:GDOT

Green Dot — Q4 2023 Earnings Presentation

20 slides from Green Dot's earnings presentation, Feb 27, 2024

  1. Slide 1: Q4 2023 Results

    Q4 2023 Results February 27th, 2024 Green Dot Corporation

  2. 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 2024 guidance and outlook, and other fu

  3. Slide 3: Key Q4 and 2023 Highlights and Themes

    Key Q4 and 2023 Highlights and Themes Platform Conversions Completed; Solid Momentum in GO2bank, Reallocating Resources to Drive 4Q23 Results Focus on Efficiency Sequential Improvement in B2B Growth in 2024 Results impacted by technology Platform conversions completed, GO2bank saw strong momentum wi

  4. Slide 4: Q4 2023 Results

    Q4 2023 Results Non-GAAP Revenue1 Adjusted EBITDA1 Non-GAAP Revenue1 increased 7% +4% -9% • Consumer Services down 21% $412 +2% +7% +3% • B2B Services up 40% +5% $83 $361 $362 $337 $349 • Money Movement down 11% Adjusted EBITDA1 down 27% -42% +3% • Adjusted EBITDA Margin of ~7.1%, down ~340 bps as w

  5. Slide 5: Q4 2023 Key Metrics

    Q4 2023 Key Metrics Actives1 Gross Dollar Volume Actives1 declined 14% -18% +32% • Consumer Services actives were down 14%, in line with Q3. The -22% +42% +33% 4.15 -20% -15% -14% +34% retail channel continues to face secular headwinds while the direct $26,355 3.84 3.71 3.67 $24,724 $24,836 channel

  6. Slide 6: Consumer Services

    Consumer Services Segment Revenue Segment Profit Segment Revenue declined 21% • Declines were driven largely by secular headwinds in retail, the -12% -12% -1% -3% de-conversion of a retail program and sunsetting products in the -14% $141 $140 -13% $54 $53 -27% direct channel $129 -21% -21% $118 $44

  7. Slide 7: B2B Services

    B2B Services Segment Revenue Segment Profit Segment Revenue increased 40% +40% -0% • Strong growth from a key BaaS partner and the Rapid! PayCard +26% $221.8 +0% $22 -16% program were partly offset by previously announced partner de- -2% +26% -22% conversions +28% $199.2 +30% $19 $19 $18 $180.7 $18

  8. Slide 8: Money Movement Services

    Money Movement Services Segment Revenue Segment Profit Segment Revenue decreased 11% -1% • Tax was down from last year while the Green Dot Network (GDN) +1% $61 continues to see moderating rates of decline versus last year. The $98 moderation in growth in GDN revenue is attributable to the growing c

  9. Slide 9: 2024 Guidance and Outlook

    2024 Guidance and Outlook Non-GAAP Revenue of $1.55B-$1.60B Adjusted EBITDA of $170M-$180M Non-GAAP EPS of $1.45-$1.59 2024 Considerations and Outlook Consumer Segment B2B Segment Money Movement Segment 1Q23 and 2Q23 had benefit from de- Secular headwinds, sunsetting direct Revenue growth in the mid

  10. Slide 10: Reportable Segments

    Appendix: 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 th

  11. Slide 11: Reportable Segments

    Appendix: Reportable Segments Green Dot Corporation

  12. 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

  13. Slide 13: Non-GAAP Financial Measures

    Appendix: Non-GAAP Financial Measures Green Dot Corporation

  14. Slide 14: Non-GAAP Financial Measures

    Appendix: Non-GAAP Financial Measures Green Dot Corporation

  15. Slide 15: Non-GAAP Financial Measures

    Appendix: Non-GAAP Financial Measures Green Dot Corporation

  16. Slide 16: Non-GAAP Financial Measures

    Appendix: Non-GAAP Financial Measures Green Dot Corporation

  17. Slide 17: Non-GAAP Financial Measures

    Appendix: 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 calcu

  18. Slide 18: 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

  19. Slide 19: Non-GAAP Financial Measures

    Appendix: Non-GAAP Financial Measures 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 consider

  20. Slide 20: Non-GAAP Financial Measures

    Appendix: Non-GAAP Financial Measures 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 performan

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