Green Dot Corporation · NYSE:GDOT
Green Dot — Q1 2024 Earnings Presentation
32 slides from Green Dot's earnings presentation, May 9, 2024
Slide 1: Q1 2024 Results
Q1 2024 Results May 9th, 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 Q1 Highlights and Themes
Key Q1 Highlights and Themes Q1 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 still facing tough comparisons, Business d
Slide 4: Consolidated Results
Consolidated Results Non-GAAP Revenue1 Adjusted EBITDA1 Non-GAAP Revenue1 increased 9% • Consumer Services down 28%. • B2B Services up 41%. • Money Movement up 5%. Adjusted EBITDA1 down 28% • Adjusted EBITDA margin of ~13.2%, down 678 bps as we still faced tough comparisons due to customer de-conver
Slide 5: Consolidated Key Metrics
Consolidated Key Metrics Active Accounts1 Gross Dollar Volume Active accounts1 declined 9% • Consolidate actives declines moderated to the slowest rate in several years though Consumer Services active accounts were down 20%, The Retail channel continues to face secular headwinds while the Direct cha
Slide 6: Consumer Services Segment
Consumer Services Segment Segment Revenue Segment Profit Segment revenue declined 28% • Declines were driven largely by secular headwinds in Retail channel, the de-conversion of a retail program and sunsetting products in the Direct channel. • Revenue in the Retail channel declined ~34% due to de-co
Slide 7: B2B Services Segment
B2B Services Segment Segment Revenue Segment Profit Segment revenue increased 41% • Strong growth from a key BaaS partner, new partner launches and the Rapid! PayCard program were partly offset by previously announced partner de-conversions. • rapid! PayCard saw solid growth driven by price actions
Slide 8: Money Movement Services Segment
Money Movement Services Segment Segment Revenue Segment Profit Segment revenue increased 5% +8% -1% • Growth was driven by the tax operation, which had a strong start to $66 the tax season while the Green Dot Network (GDN) continues to see $61 year over year declines as transactions from Green Dot I
Slide 9: 2024 Guidance and Outlook
2024 Guidance and Outlook Projected Non-GAAP Revenue1 of $1.55B-$1.60B 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 1Q23 and 2Q23 had benefit from de- Secular headwinds, sunsetting
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 GDV Division revenue declined 34% • Declines were driven largely by secular headwinds and the de- conversion of a retail program that will still present a headwind in 2Q24. • Revenue per active1 was relatively stable excluding the impact of the program de-conversion which cre
Slide 15: Direct division
Direct division Revenue GDV Division revenue declined 15% • 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 2Q (with the full impact felt in 3Q) direct revenue has begun to
Slide 16: BaaS division
BaaS division Revenue GDV Division revenue increased 45% • Despite facing headwinds from a client de-conversion in 1Q23, revenue growth was driven by a large strategic partner and the launch of new partners and growth of other existing partners. Active accounts1 increased 43% • Active accounts incre
Slide 17: rapid! Paycard division
rapid! Paycard division Revenue GDV Division revenue increased 9% • Revenue was driven by changes in pricing strategies in 4Q23 which also benefits revenue per active account. Active accounts1 declined 13% • The decline in active accounts is largely driven by pressure on the temporary staffing indus
Slide 18: Green Dot Network division
Green Dot Network division Revenue Cash Transfers to GDOT-Issued Accounts Division revenue declined 11% • Declines remain largely driven by the decline in transactions from Green Dot-issued accounts. Cash transfers to GDOT-issued accounts declined 23%; Third Party volumes declined 2% • Declines in c
Slide 19: Tax Processing division (TPG)
Tax Processing division (TPG) Revenue Tax Refunds Processed Division revenue increased 12% • The division had a strong start to the tax season with favorable transaction mix driving revenue growth. Refunds processed were down 6% • Volumes can be somewhat erratic between 1Q and 2Q depending upon timi
Slide 20: Divisional Data
Divisional Data Green Dot Corporation
Slide 21: Appendix
Appendix Non-GAAP Financial Measures 21 Green Dot Corporation
Slide 22: 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 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 Green Dot Corporation
Slide 29: 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 30: 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 31: 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 32: 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