Green Light for Pasadena’s Green Dot

Published : Thursday, May 11, 2017 | 5:08 AM

“Q1 was a fabulous quarter for Green Dot with outstanding and record-setting financial results,” Steve Streit, Green Dot Founder and CEO said as Pasadena-based Green Dot Corporation reported 2017 results this week.

The financial services business reported total operating revenues of $253.0 million for the first quarter of 2017, up from $228.0 million for the first quarter of 2016, or a year-over-year increase of 11 percent.

Reporting its financial results for the quarter ended March 31, Green Dot said it earned a net income of $40.8 million $0.78 diluted earnings per common share.

The company also reported EBITDA (earnings before interest, tax, depreciation and amortization) of $89.6 million and non-GAAP (generally accepted accounting principles) diluted earnings of $1 per common share, up from $0.78 for the first quarter of 2016, representing a year-over-year increase of 28.2 percent.

“Q1 was a fabulous quarter for Green Dot with outstanding and record-setting financial results,”

“Our hard work and vision to build Green Dot into one of the country’s premier financial technology platforms is coming together and paying off,” Steve Streit, Green Dot Founder and CEO said. “Today’s Green Dot is a diverse enterprise where six revenue divisions are working together to provide thrust to Green Dot’s consolidated top line growth, while our highly efficient, high-scale, proprietary technology platform enabled top line growth to fall to the bottom line at increasingly expansive margins.”

Mark Shifke, Green Dot’s Chief Financial Officer, said revenue growth in the first quarter came from both their reporting segments – growth in account services and processing and settlement.

“Growth in Account Services was driven primarily by dramatic increases in revenue per average active card where Green Dot posted its fifth consecutive quarter in a row with double digit year-over-year revenue per active card growth,” Shifke said. “Furthermore, we appear to be on track in our plan to return to organic active card growth in 2018, which we expect will further power growth in this segment. Processing and Settlement segment revenue performance was driven both by significant growth in our tax refund processing subsidiary, Green Dot TPG, and double digit increases in revenue per cash transfer in our Money Processing revenue division.”

With its strong performance in the quarter, the company now expects its full year total operating revenues to be between $830 million to $845 million, versus its previous guidance range of $815 million to $830 million.

For the second quarter, Green Dot expects total operating revenues to be approximately $207 million to $209 million.

Green Dot Corporation, along with its wholly owned subsidiaries, is a pro-consumer financial technology innovator with a mission to provide a full range of affordable and accessible financial services to the masses. The company is a leading provider of reloadable prepaid debit cards and cash reload processing services in the United States.

Green Dot is also a leader in mobile technology and mobile banking with its award-winning GoBank mobile checking account and a top 20 debit card issuer among all banks and credit unions in the country. Through its wholly owned subsidiary, TPG, Green Dot is additionally the largest processor of tax refund disbursements in the U.S.

Green Dot’s products and services are available to consumers through a large-scale “branchless bank” distribution network of approximately 100,000 U.S. locations, including retailers, neighborhood financial service center locations, and tax preparation offices, as well as online, in the leading app stores and through leading online tax preparation providers. With headquarters in Pasadena, the company has additional facilities throughout the U.S. and in Shanghai, China.

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