Green Dot Corporation · NYSE:GDOT
Green Dot — Investor Presentation (December 2015)
23 slides from Green Dot's investor presentation, Dec 2, 2015
Slide 1: Investor Presentation December 2015
Investor Presentation December 2015
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: full range of affordable financial services to the masses
To provide a full range of affordable and accessible financial services to Our mission The Masses 3
Slide 4: A Deeply Entrenched Franchise Brand
A Deeply Entrenched Franchise Brand Mariah Carey Steve Harvey 4
Slide 5: Green Dot
Green Dot • We INVENTED THE GENERAL PURPOSE RELOADABLE PREPAID CARD industry in 1999 and today are the largest prepaid provider in the U.S. • We are a BANK HOLDING COMPANY regulated by the Board of Governors of the Federal Reserve and the State of Utah DFI • We are a TOP 20 DEBIT CARD ISSUER among a
Slide 6: Our Roadmap For Achieving Long Term Growth
2012-Today Our Roadmap For Achieving Long Term Growth Ensure undisputed leadership in the industry we invented. Renew Walmart, diversify revenue, increase brand preference and consolidate the prepaid industry 2 Invest in new products and channels that set us up to compete & win in new growth macros
Slide 7: A Detour on our Roadmap to Growth
A Detour on our Roadmap to Growth • In our private label business line, the new suite of prepaid products we launched in late 2013 did not perform as expected. (Reduced pricing didn’t deliver higher usage revenue to achieve net growth.) • In our processing business line in early 2015, we removed the
Slide 8: Resuming the Roadmap to Growth
Resuming the Roadmap to Growth Key Planned Initiatives for 2016 New Products: Prepaid MoneyPak 2.0 New Channels: GoBusiness checking account for the “on-demand” 1099 workforce GoBank and Green Dot Prepaid distribution with TPG tax partners Credit Companion Channel (through leading credit issuers) Op
Slide 9: New Products & Initiatives
9 New Products & Initiatives
Slide 10: Targeted to Millennials, Fully Banked, Core Prepaid Users
Targeted to Millennials, Fully Banked, Core Prepaid Users 10
Slide 11: Best Seller - New checking account style features
Best Seller- New “checking account style” features 11
Slide 12: Secret until end of January
Secret until end of January 12
Slide 13: MoneyPak
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Slide 14: Green Dot Direct Web, App Stores and Direct Mail
Green Dot Direct 14 Web, App Stores and Direct Mail
Slide 15: On-Demand Workforce Solutions
• 1099 Worker is offered their own small business account from GoBank and is instantly approved. (Have you ever tried to get a small business account?) • Standard GoBank fees are way less than traditional business accounts and feature no overdraft fees and a huge, free ATM network. • Instant payment
Slide 16: TPG Tax Partner Integrations
TPG Tax Partner Integrations 16
Slide 17: Credit Companion Channel
Credit Companion Channel • Integrated offer to help credit applicants get to a “yes.” • Declines get a pre-approved Green Dot prepaid card that, if kept in good standing for 12 months, can help the lender re-underwrite the applicant. – IE- “We weren’t able to approve you for the zyz credit card. But
Slide 18: Green Dot Money lending marketplace
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Slide 19: Green Dot Money
Green Dot Money 19 • In a typical month, Green Dot attracts more than 13 million phone inquiries,10 million online and mobile web visitors + millions more who see our ads and buy our products. • The proposed marketplace would play “matchmaker” to applicants on one side and approved lenders on the ot
Slide 20: Green Dot Bank Secured Card
Green Dot Bank Secured Card • Customer applies online through numerous Green Dot controlled channels and card is sent in the mail. • Customer opens account and makes a security deposit of at least $200 at any Green Dot retailer, or as a transfer from their bank account to start using the card. • Ini
Slide 21: Capital Allocation
Capital Allocation • Ongoing commitment to our share repurchase program. ($150m authorization; $40m used thus far) • Keeping an eye out for accretive acquisitions that are strategic to our growth roadmap. 21
Slide 22: Acquisitions fuel the wheel
On our touchpoints, customer applies for a loan Funded loans generate deposit account sales Declined loans generate Secured Card sales Customers with loans retain longer, reload more cash and generate better RPU Open More Deposit Accounts Reloads at retail Visits us online Applies at Green Dot Money
Slide 23: Commentary from the Q3 Call
Commentary from the Q3 Call • We believe legacy declines have stabilized. • We won’t lap YoY legacy declines until 2H 2016. • As such, we expect to enter 2016 with an approximate 5% headwind that we will need to overcome to be flat YoY. • New initiatives planned for 2016 give us confidence we can ac