AUSTIN, Texas - Green Dot Corporation (NYSE: NYSE:GDOT), a leading fintech and digital bank, reported its first quarter financial results, revealing a mixed performance with an adjusted earnings per share (EPS) that fell short of Wall Street expectations but exceeded revenue estimates.
The company posted an adjusted EPS of $0.59, which was below the analyst consensus of $0.71. However, total operating revenues reached $451.99 million, surpassing the consensus estimate of $419.91 million and marking a 9% increase from the $416.38 million reported in the same quarter of the previous year.
Green Dot's GAAP net income saw a significant year-over-year decline, dropping 87% to $4.75 million from $36.01 million, with diluted earnings per share also decreasing by the same percentage from $0.69 to $0.09.
The company's adjusted EBITDA fell by 28% to $59.23 million from $82.54 million, indicating a contraction in profitability.
Despite the challenges, Green Dot is maintaining its full-year 2024 financial outlook, reaffirming its guidance for adjusted EPS to range between $1.45 and $1.59, which at the midpoint is slightly below the analyst consensus of $1.52.
The company's revenue guidance for the full year is set between $1.55 billion and $1.60 billion, with the midpoint aligning with the consensus estimate of $1.581 billion.
Jess Unruh, Green Dot's Chief Financial Officer, commented on the results, highlighting the strong start to the tax season and improved momentum in the company's Banking as a Service (BaaS) division.
Unruh also noted signs of stability in revenues in their Direct channel, despite facing expected headwinds from client de-conversions and increased regulatory initiative spending.
Green Dot's CEO, George Gresham, emphasized the company's progress towards creating a market-leading embedded finance platform with differentiated products and services, along with resilient compliance capabilities.
He pointed out the strong business development pipeline and the company's unique position to power the financial services strategies of its partners while providing access to the financial system for consumers and small businesses.
Green Dot's reaffirmed financial outlook for 2024 reflects several considerations, including the current macro-economic environment, high inflation and interest rates, the impact of non-renewals of certain partnerships, the decision to wind down legacy cardholder programs in favor of GO2bank, negative trends within certain channels, investment in strategic initiatives and compliance programs, and cost reduction initiatives.
The company's guidance excludes any fines or direct losses beyond its accrual for the proposed consent order previously disclosed.
For more information about Green Dot's products and services, please visit www.greendot.com.
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