Slide 1: Q317 Investor Presentation
Q317 Investor Presentation November 2017
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: What is Green Dot?
What is Green Dot? • Green Dot is a technology-centric United States Bank Holding Company • Its mission is to reinvent personal banking for the masses • The company deploys a “Products and Platform” business strategy – As a “Product Company,” Green Dot uses its own bank, Green Dot Bank, and its own
Slide 4: How Do We Make Money?
How Do We Make Money? Revenue Categories: Transaction Fees: Tax refund processing, swipe reloads, ATM usage, SimplyPaid disbursements, MoneyPak retail purchase fee, new card retail purchase fee, etc. Recurring Fees: Monthly account fees, primarily Interchange: Issuer’s portion of total interchange g
Slide 5: We are a Product Company
We are a Product Company PRODUCTS That DO THINGS To SOLVE REAL CUSTOMER PAIN POINTS Green Dot Corporation - Confidential 4
Slide 6: We are a Platform Company
We are a Platform Company Green Dot’s “Banking as a Service” (BaaS) Platform Powered by… An integrated BANK and TECHNOLOGY PLATFORM that POWERS the AMBITIONS OF OTHERS 5
Slide 7: Comprehensive Program Management
Comprehensive Program Management Creating, issuing, managing and operating all aspects of large, complex and highly regulated programs Bank Bank Issuing FDIC Insurance Customer Service Technology Call Center / IVR Process Transactions Web, text & email Settlement & Billing Compliance Pro
Slide 8: In-House Ad Agency and Brand Building
In-House Ad Agency and Brand Building World-class capabilities and best practices in marketing and visual merchandising National Awareness Retail / Digital Retention • In-store Marketing • Data driven CRM Engine • Direct (online) Sales • Lifecycle communications • National Media • Social Media • Ret
Slide 9: Green Dot is Practically EVERYWHERE!
Green Dot is Practically EVERYWHERE! Possibly the most widely distributed financial services and banking franchise in America Key Distribution Channels Mass App Drug Dollar Grocery Online BaaS Platform Store Convenience ~100,000 Nationwide Brick & Mortar Account + Six Branded Online Account Acquisit
Slide 10: 2017 Six-Step Plan Summary
2017 Six-Step Plan Summary Grow Revenue • Reduce Expenses • Smart Capital Allocation 1 2 3 Drive organic active card growth Improve MoneyPak distribution and Make strategic investments in new COMPLETED AHEAD OF SCHEDULE launch new use case initiatives DISTRIBUTION COMPLETED COMPLETED WITH SOLI
Slide 11: Today's Diversified Green Dot
Today’s Diversified Green Dot Two Reporting Segments Six Revenue Divisions Green Dot Corporation - Confidential 10
Slide 12: Segment Revenue Performance
Segment Revenue Performance Account Services ($ in millions) $175 $168 $170 $145 $135 $128 Q1 Q2 Q3 2016 2017 Green Dot Corporation - Confidential 11
Slide 13: Segment Revenue Performance
Segment Revenue Performance Processing and Settlement Services ($ in millions) $94 $91 $55 $45 $39 $33 Q1 Q2 Q3 2016 2017 Green Dot Corporation - Confidential 12
Slide 14: Revised Outlook for 2017
Revised Outlook for 2017 Revenue GAAP total operating revenue of $878-$882 million representing a year-over- year growth of 22% at the midpoint. EBITDA Adjusted EBITDA1 of $200-$202 million representing a year-over-year growth of 29% at the midpoint. Non-GAAP EPS Non-GAAP diluted earnings per share1
Slide 15: Non-GAAP Reconciliation Footnotes
Non-GAAP Reconciliation Footnotes GREEN DOT CORPORATION Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to Projected Adjusted EBITDA (1) (Unaudited) FY 2017 Range Low High (In millions) Net income $ 72.4 $ 73.9 Adjustments (2) 127.6 128.1 Adjusted EBITDA $ 200.0 $ 202.0 To
Slide 16: 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