Slide 1: KBW Conference discussion materials February 10, 2014
KBW Conference discussion materials February 10, 2014
Slide 2: Disclosures About Non-GAAP Financial Measures and Forward-Looking Statements
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: Our mission: reinvent personal banking for the masses
unbanked underbanked unhappily banked new to banking 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: Our vision
By offering modern, honest and fair banking solutions to the masses, we believe we can become one of the most widely used banks in America 4 our vision
Slide 5: Did you know?
5 did you know? •We are the premier nationally known BRAND NAME in the prepaid industry •We own the #1 CASH RELOAD NETWORK, serving 150+ prepaid programs •We are a leading FinTech company with the best MOBILE BANKING APP in the industry and the owner of key mobile patents •We are a TOP-20 DEBIT CARD
Slide 6: Green Dot Marketing Watch & listen
Green Dot Marketing Watch & listen 6
Slide 7: Illustrative successful retail launch economics
Illustrative successful retail launch economics New retailer launches take time to build up an active base that can offset launch + ongoing expenses 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Months Revenue Total variable expensesTotal expenses Margin contribution improves over
Slide 8: How a successful new program delivers revenue
How a successful new program delivers revenue 8 Months Active card portfolio builds over time Revenue starts slow and builds as active card portfolio grows Revenue
Slide 9: Adjusted EBITDA margin bridge for 2014
17.7% 18.0% 10.0% 11.0% 12.0% 13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% 20.0% 21.0% 22.0% Adjusted EBITDA margin bridge for 2014 2013 Margin flow- through from revenues Higher WMT commissions Savings on bank fees New strategic initiatives 2014E* * Estimated for illustration only. There is no change
Slide 10: Understanding our model
Understanding our model • Our heritage portfolio slowed and slightly declined with negative momentum in 2013 due primarily to risk controls (± 2 million customers turned away) and no material new program launches until late October • The new programs added in Q4 2013 are expected grow over time and
Slide 11: We reiterate our outlook for 2014
Issued guidance on January 30th in conjunction with Q4 earnings release We reiterate our outlook for 2014 Current Full Year 2014 Low High Non-GAAP Total Operating Revenues $640M $650M Adjusted EBITDA $114M $118M Non-GAAP Diluted EPS $1.22 $1.28 Reconciliations of total operating revenues to non-GAAP
Slide 12: Appendix
APPENDIX @cre dar, OE ON
Slide 13: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures To supplement the Company's consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (GAAP), the Company uses measures of operating results that are adjusted to exclude net interest incom
Slide 14: Outlook 2014 reconciliation: revenues and Adjusted EBITDA
Outlook 2014 Range Low High (In millions) Total operating revenues $ 629 $ 639 Stock-based retailer incentive compensation (2)* 11 11 Non-GAAP total operating revenues $ 640 $ 650 * Assumes the Company's right to repurchase lapses on 36,810 shares per month during 2014 of the Company's Class A commo
Slide 15: Outlook 2014 reconciliation: net income and EPS
Outlook 2014 Range Low High (In millions, except per share data) Net income $ 38 $ 41 Adjustments (5) 17 17 Non-GAAP net income $ 55 $ 58 Diluted earnings per share* GAAP $ 1.00 $ 1.08 Non-GAAP $ 1.22 $ 1.28 Diluted weighted-average shares issued and outstanding** GAAP 38 38 Non-GAAP 45 45 * Reconci
Slide 16: Supplemental non-GAAP financial info
Supplemental non-GAAP financial info 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 cal
Slide 17: Supplemental non-GAAP financial info
Supplemental non-GAAP financial info 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 cons
Slide 18: Supplemental non-GAAP financial info
Supplemental non-GAAP financial info 5) These amounts represent estimated adjustments for net interest income, income taxes, depreciation and amortization, employee stock-based compensation expense, and stock-based retailer incentive compensation expense. Employee stock-based compensation expense an