Slide 1: Investor Presentation
Investor Presentation November 2016
Slide 2: Disclosures
Disclosures 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
Slide 3: Six-Step Plan to Create Long Term Value
Six-Step Plan to Create Long Term Value 1. Launch new products Drive Revenue 2. Re-launch MoneyPak Growth 3. Invest in “high-potential” initiatives 4. Platform initiatives Reduce designed to drive Expenses multiyear cost reductions 5. Target opportunistic Prudent Capital acquisitions Allocation 6. R
Slide 4: Review of Green Dot's Two Segments
Review of Green Dot’s Two Segments • Account Services – Consists of revenues and expenses derived from Green Dot- branded GPR card accounts, private label GPR card accounts, checking accounts and open-loop gift cards. • Processing and Settlement – Consists of revenues and expenses derived from reloa
Slide 5: Prepaid Card and Prepaid Load Business
Prepaid Card and Prepaid Load Business 5
Slide 6: Six-Step Plan is Working: Non-GAAP Revenue Growth
Six-Step Plan is Working Accelerating Year-Over-Year Non-GAAP Revenue Growth 5.3% * 2.0% * Q1 Q2 Q3 -1.0% YOY Growth 6
Slide 7: Six-Step Plan is Working: Adjusted EBITDA Growth
Six-Step Plan is Working Accelerating Year-Over-Year Adjusted EBITDA Growth 10% 8% Includes $2.3 7% million in launch 6% expenses 4% 2% 0% Q1 Q2 Q3 -2% Includes $1.9 million in launch -4% expenses Includes $7.2 million in launch expenses -6% -5% YOY Growth -6% 7
Slide 8: Account Services
Account Services GREEN DOT Cet ae
Slide 9: Customers Seem to Like the New Products
Customers Seem to Like the New Products Q3 Purchase Volume Q3 Gross Dollar Volume Per Active Card Per Active Card +13% +17% Q3 Account Service Q3 Interchange Per Revenue Per Active Card Active Card +16% +9% Better behavior combined with better unit 9 economics is driving growth
Slide 10: New Products Driving Revenue Growth
New Products Driving Revenue Growth Better customer usage and better unit economics of the “New Cards” combined with increasingly strong Revenue Per Active Card Has performance from the portfolio of seasoned “Legacy Been Growing Double-Digits Cards” is driving the revenue per active card growth New
Slide 11: Processing & Settlement
Processing & Settlement GREEN DOT Saat tana ay
Slide 12: Recovering Reloads and New Initiatives Are Expected to Help Drive Segment Growth
Recovering Reloads and New Initiatives Are Expected to Help Drive Segment Growth • Despite fewer active cards YoY, the number of cash transfers has nearly recovered from a year ago. • Free reloads are being replaced by paid reloads. • Relaunch of MoneyPak has the potential to add to growth. • New in
Slide 13: Outlook
Outlook1 2016 Non-GAAP Total Operating Revenues2 • High end of $708 million to $713 million. Adjusted EBITDA2 • Low end of $156 million to $160 million, including incremental launch expenses of approximately $11.4 million. • Non-GAAP EPS2 • Mid-point of $1.39 to $1.44, including incremental launch e
Slide 14: Appendix
APPENDIX GREEN DOT u Cet ae
Slide 15: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2015 2016 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 (in thousands) Reconciliation of total operating revenues to non-GAAP total operating revenues Total operating revenues $ 227,165 $ 170,247 $ 146,360 $ 150,928 $ 694,700 $ 228,024 $ 173,488 $ 154,494 Stock-based retailer incentive compensat
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2015 2016 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 (in thousands) Reconciliation of GAAP to non-GAAP diluted weighted-average shares issued and outstanding Diluted weighted-average shares issued and outstanding* 51,938 52,275 52,361 51,168 51,875 50,867 49,818 50,709 Assumed conversion of w
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations 2015 2016 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 (in thousands) Supplemental Detail on Non-GAAP Diluted Weighted-Average Shares Issued and Outstanding Stock outstanding as of period end: Class A common stock 51,699 51,911 50,294 50,502 50,502 49,866 48,544 50,380 Preferred stock (on an as
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations FY 2016 RANGE LOW HIGH Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to Projected GAAP (In millions) Total Operating Revenue (1) Total operating revenues $ 707.6 $ 712.6 Contra-revenue advertising costs (3)(4) 0.4 0.4 Non-GAAP total operating rev
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations FY 2016 RANGE LOW HIGH Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to Projected GAAP (In millions, except per share data) Net Income (1) Net income $ 39.6 $ 42.1 Adjustments (10) 32.0 32.0 Non-GAAP net income $ 71.6 $ 74.1 Diluted earnings per
Slide 20: 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 21: 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
Slide 22: Non-GAAP Reconciliation Footnotes
Non-GAAP Reconciliation Footnotes 7. The Company 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 the Company's GAAP financial statements, the