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Green Dot Stock Appreciates 4% Despite Earnings Miss in Q3
GDOTGreen Dot(GDOT) ZACKS·2024-11-14 17:10

Core Viewpoint - Green Dot Corporation (GDOT) reported mixed results for Q3 2024, with earnings missing estimates while revenues exceeded expectations [1][2] Financial Performance - Quarterly earnings per share (excluding non-recurring items) were 13 cents, missing the consensus estimate by 23.5% and declining 7.1% year-over-year [2] - Revenues reached 406million,surpassingtheZacksConsensusEstimateby6.4406 million, surpassing the Zacks Consensus Estimate by 6.4% and increasing 15% year-over-year [2] - Adjusted EBITDA totaled 28.3 million, up 19.3% year-over-year, but the adjusted EBITDA margin decreased by 20 basis points to 7% [5] Segment Performance - B2B Services revenues increased by 38.8% to 276.4million,drivenbyaBaaSpartnerandstabilityintheBaaSportfolio[3]−MoneyMovementServicesrevenuesslightlydeclinedto276.4 million, driven by a BaaS partner and stability in the BaaS portfolio [3] - Money Movement Services revenues slightly declined to 31.9 million due to a decrease in GDOT's active account base [3] - Consumer Services segment revenues fell to 98million,down17.198 million, down 17.1% year-over-year, impacted by headwinds in the retail channel [4] Key Metrics - Gross dollar volume increased by 27% year-over-year to 33.5 billion, while purchase volume fell by 8.9% to 4.9billion[5]−Thenumberofactiveaccountsdecreasedby5.74.9 billion [5] - The number of active accounts decreased by 5.7% year-over-year to 3.5 million [5] Balance Sheet & Cash Flow - Green Dot ended Q3 with unrestricted cash and cash equivalents of 1.5 billion, up from 1.3billioninQ22024,andhadnolong−termdebt[6]−Thecompanygenerated1.3 billion in Q2 2024, and had no long-term debt [6] - The company generated 16.3 million in cash from operating activities, with capital expenditures of 20.7million[6]Guidance−For2024,GDOTupdateditstotaloperatingrevenuesguidanceto20.7 million [6] Guidance - For 2024, GDOT updated its total operating revenues guidance to 1.65-1.70billion,aligningwiththecurrentZacksConsensusEstimate[7]−Adjustedearningspershareguidancewasloweredto1.70 billion, aligning with the current Zacks Consensus Estimate [7] - Adjusted earnings per share guidance was lowered to 1.33-1.36,belowthepreviousestimateof1.36, below the previous estimate of 1.45-1.59andthecurrentconsensusof1.59 and the current consensus of 1.47 [8] - Adjusted EBITDA guidance was also reduced to 164−164-166 million from 170−170-180 million [8]