Green Dot Corp is a financial technology company that provides financial services for consumers in the United States without good banking options. It has three segments: Consumer Services, Business to Business Services (B2B), and Money Movement Services. The company generates maximum revenue from the B2B segment, which includes partnerships with prominent consumer and technology companies and a comprehensive payroll platform for corporate enterprises.
Performance Overview
Green Dot Corp (GDOT, Financial) reported total operating revenues of $407.1 million for Q2 2024, an 11% increase from $365.9 million in Q2 2023. This figure surpassed the analyst estimate of $385.88 million. However, the company posted a net loss of $28.7 million, or -$0.54 per diluted share, compared to a net income of $0.6 million, or $0.01 per diluted share, in the same period last year. This missed the analyst estimate of -$0.02 per share.
Non-GAAP total operating revenues were $402.6 million, up 11% from $361.1 million in Q2 2023. Adjusted EBITDA was $34.0 million, down 13% from $38.9 million in the prior year. The adjusted EBITDA margin decreased to 8.4% from 10.8%.
Key Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Operating Revenues | $407.1 million | $365.9 million | 11% |
| Net (Loss) Income | $(28.7) million | $0.6 million | * |
| Diluted (Loss) Earnings Per Share | $(0.54) | $0.01 | * |
| Adjusted EBITDA | $34.0 million | $38.9 million | (13)% |
| Non-GAAP Net Income | $13.4 million | $19.2 million | (30)% |
| Non-GAAP Diluted EPS | $0.25 | $0.37 | (32)% |
* - change not meaningful
Segment Performance
The B2B Services segment, which is the largest revenue generator for Green Dot Corp (GDOT, Financial), showed strong performance with a gross dollar volume of $28.1 billion, up from $19.6 billion in Q2 2023. The number of active accounts in this segment also increased to 1.65 million from 1.36 million in the same period last year.
However, the Consumer Services segment saw a decline in gross dollar volume to $4.0 billion from $5.1 billion in Q2 2023. The number of active accounts also decreased to 1.76 million from 2.35 million.
Financial Achievements and Challenges
Green Dot Corp (GDOT, Financial) renewed its largest BaaS partner and made strategic investments to enhance its risk management and regulatory compliance. These steps are crucial for positioning the company for sustainable long-term growth. However, the company faced challenges such as partner deconversions and portfolio sunsetting, which impacted its financial performance.
"It was a solid quarter with progress on many fronts as we renewed our largest BaaS partner and made strategic investments to enhance our risk management and regulatory compliance, and position the company for sustainable long-term growth," said George Gresham, Chief Executive Officer of Green Dot.
Financial Guidance
Green Dot Corp (GDOT, Financial) updated its financial outlook for 2024. The company now expects its full-year non-GAAP total operating revenues to be between $1.60 billion and $1.70 billion, up approximately 11% year-over-year at the mid-point. Adjusted EBITDA is expected to be between $170 million and $180 million, up approximately 2% year-over-year at the mid-point. Non-GAAP EPS is expected to be between $1.45 and $1.59, down 6% year-over-year at the mid-point.
For more detailed information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Green Dot Corp for further details.
