Green Dot Corporation · NYSE:GDOT
Green Dot — Q1 2023 Earnings Presentation
19 slides from Green Dot's earnings presentation, May 4, 2023
Slide 1: Q1 2023 Results
Q1 2023 Results May 4th, 2023 1 1Green Green DotDot Corporation Corporation – Confidential – Confidential
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 the Green Dot’s 2023 guidance, Green Dot’s ability
Slide 3: Key Q1 2023 Highlights and Themes
Key Q1 2023 Highlights and Themes 1Q23 Results Moving Forward with Platform GO2bank, Green Dot Network Preparing for a Major Partner Conversions, Focus on Efficiency and Tax See Solid Momentum Launch and new Business Wins Solid start to the year driven by modest Completed 3 conversions with remainin
Slide 4: Q1 2023 Results
Q1 2023 Results Non-GAAP Revenue1 Adjusted EBITDA1 Non-GAAP Revenue1 increased 4% • Consumer Services down 12% • B2B Services up 28% • Money Movement up 1% Adjusted EBITDA1 down 9% • Adjusted EBITDA Margin of 20%, down 287 bps • Consumer Services segment profit down 3% • B2B Services segment profit
Slide 5: Q1 2023 Key Metrics
Q1 2023 Key Metrics Actives1 Gross Dollar Volume Actives1 declined 22% • Consumer Services down 21% as the retail channel continues to face secular headwinds while the direct channel continues to focus on growth of GO2bank while legacy brands decline due to natural attrition • Consumer Services Dire
Slide 6: Consumer Services
Consumer Services Segment Revenue Segment Profit Segment Revenue declined 12% • Declines remain consistent with 4Q22 as headwinds in retail remain in addition to the de- conversion of a retail program • The direct channel continues to focus on growing GO2bank while other brands declined due to attri
Slide 7: B2B Services
B2B Services Segment Revenue Segment Profit Segment Revenue increased 28% • Strong growth from a key BaaS partner was partially offset by previously announced partner de-conversions • Rapid! PayCard saw growth in accounts, GDV and purchase volumes while interchange rates remained under pressure, sim
Slide 8: Money Movement Services
Money Movement Services Segment Revenue Segment Profit Segment Revenue increased 1% • Tax had a seasonally strong quarter with revenue up in the mid single digits. Green Dot Network revenue continues to see declines though they have moderated Segment Profit decreased 1% • Segment margin was down 104
Slide 9: Re-affirming 2023 Guidance
Re-affirming 2023 Guidance Low High Non-GAAP Operating Revenue1 $1,376.0 $1,462.0 Adjusted EBITDA1 $180.0 $190.0 Depreciation and amortization2 $(57.0) $(57.0) Net interest expense $(2.5) $(2.5) Non-GAAP pre-tax income1 $120.5 $130.5 Tax impact3 $(28.3) $(30.7) Non-GAAP net income1 $92.2 $99.8 Non-G
Slide 10: Appendix: Reportable Segments
Appendix: Reportable Segments 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 business primarily on the
Slide 11: Reportable Segments
Appendix: Reportable Segments 11 Green Dot Corporation – Confidential
Slide 12: About Non-GAAP Financial Measures
Appendix: 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 ad
Slide 13: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 13 Green Dot Corporation – Confidential
Slide 14: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 14 Green Dot Corporation – Confidential
Slide 15: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 15 Green Dot Corporation – Confidential
Slide 16: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 16 Green Dot Corporation – Confidential
Slide 17: Appendix: Non-GAAP Financial Measures
Appendix: 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 calcul
Slide 18: Appendix: Non-GAAP Financial Measures
Appendix: 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 consi
Slide 19: Appendix: Non-GAAP Financial Measures
Appendix: Non-GAAP Financial Measures 5) Green Dot excludes certain income and expenses that are not reflective of ongoing operating results. It is difficult to estimate the amount or timing of these items in advance. Although these events are reflected in Green Dot's GAAP financial statements, Gree