Slide 1: Q2 2024 Results
Q2 2024 Results August 8th, 2024 Green Dot Corporation
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 business and pipeline momentum, revenue
Slide 3: Key Q2 Highlights and Themes
Key Q2 Highlights and Themes Q2 2024 Continuing to Stability in Direct, Momentum in Reallocating Resources Results Focus on Efficiency B2B, Solid Tax Season to Drive Growth in 2024 Results were generally in line with Consumer and B2B segments realized While navigating the final impacts of Business d
Slide 4: Consolidated Results
Consolidated Results Non-GAAP Revenue1 Adjusted EBITDA1 Non-GAAP Revenue1 increased 11% • Consumer Services down 25%. • B2B Services up 40%. • Money Movement up 6%. Adjusted EBITDA1 down 13% • The adjusted EBITDA margin of 8.4% was down 233 bps as we continued to face tough comparisons due to partne
Slide 5: Consolidated Key Metrics
Consolidated Key Metrics Active Accounts1 Gross Dollar Volume (GDV) Active accounts1 declined 8% • The rate of decline for consolidated actives continues to moderate and is at its slowest rate in several years as growth in B2B Services accounts offset a 25% decline in Consumer Services actives. The
Slide 6: Consumer Services Segment
Consumer Services Segment Segment Revenue Segment Profit Segment revenue declined 25% • Declines continue to remain largely driven by secular headwinds in the Retail channel, the de-conversion of a retail program and sunsetting products in the Direct channel. • Revenue in the Retail channel declined
Slide 7: B2B Services Segment
B2B Services Segment Segment Revenue Segment Profit Segment revenue increased 40% • Strong growth from a key BaaS partner, new partner launches and the rapid! PayCard program were partly offset by previously announced partner de-conversions. Excluding the growth from a key BaaS partner, the rest of
Slide 8: Money Movement Services Segment
Money Movement Services Segment Segment Revenue Segment Profit Segment revenue increased 6% • Growth was driven by the tax processing business, which had a strong tax season, while the Green Dot Network (GDN) continues to see year-over-year declines as transactions from Green Dot-issued accounts rem
Slide 9: 2024 Guidance and Outlook
2024 Guidance and Outlook Projected Non-GAAP Revenue1 of $1.60B-$1.70B Projected Adjusted EBITDA1 of $170M-$180M Projected Non-GAAP EPS1 of $1.45-$1.59 2024 Considerations Consumer B2B Money Movement and Outlook Segment Segment Segment The company believes it may be at the Secular headwinds, sunsett
Slide 10: Appendix: Segment Information
Appendix Segment Information 10 Green Dot Corporation
Slide 11: Reconciliation of Segment Revenues
Reconciliation of Segment Revenues 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
Slide 12: Reconciliation of Segment Profits
Reconciliation of Segment Profits Green Dot Corporation
Slide 13: Appendix: Division Information
Appendix Division Information 13 Green Dot Corporation
Slide 14: Retail division
Retail division Revenue Active Accounts1 Division revenue declined 31% • Declines remain driven largely by secular headwinds and the de- conversion of a retail program that created headwinds for both 1Q and 2Q24. • Revenue per active1 was up 7% excluding the impact of the program de-conversion, whic
Slide 15: Direct division
Direct division Revenue Active Accounts1 Division revenue declined 14% • Declines continue due to the deliberate decision to focus growth on building out the GO2bank brand and sunsetting legacy products. • After sunsetting several legacy brands in 2Q23 (with the full impact felt in 3Q) direct revenu
Slide 16: BaaS division
BaaS division Revenue Active Accounts1 Division revenue increased 44% • While navigating through the headwinds from partner program de- conversions in the first half of 2023, revenue growth was driven by a large strategic partner and the launch of new partners and growth of other existing partners.
Slide 17: rapid! Paycard division
rapid! Paycard division Revenue Active Accounts1 Division revenue increased 4% • Revenue was driven by changes in pricing strategies in 4Q23 which benefitted revenue per active account. Active accounts1 declined 16% • The decline in active accounts is largely driven by pressure on the temporary staf
Slide 18: Green Dot Network division
Green Dot Network division Revenue Cash Transfers to GDOT-Issued Accounts Division revenue declined 9% • Declines remain largely driven by the decline in transactions from Green Dot-issued accounts in the Consumer segment. Cash transfers to GDOT-issued accounts declined 21%; Third Party volumes grew
Slide 19: Tax Processing division
Tax Processing division Revenue Tax Refunds Processed Division revenue increased 27% • The division had a strong tax season with favorable transaction mix driving revenue growth. Refunds processed were up 9% • Year-over-year growth in volumes can vary between 1Q and 2Q depending upon timing of IRS p
Slide 20: Appendix
Appendix Non-GAAP Financial Measures 20 Green Dot Corporation
Slide 21: About 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 adjusted for, among other things, non-op
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Green Dot Corporation
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Green Dot Corporation
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Green Dot Corporation
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Green Dot Corporation
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures Green Dot Corporation
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures Green Dot Corporation
Slide 28: Non-GAAP Financial Measures
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 calculated or pr
Slide 29: Non-GAAP Financial Measures
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 consider them i
Slide 30: Non-GAAP Financial Measures
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 consideration, set
Slide 31: Non-GAAP Financial Measures
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 performance. 9) Rep