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|Green Dot Reports Fourth Quarter 2018 Results|
For the fourth quarter of 2018, Green Dot reported total operating
Said Green Dot Founder and CEO,
GAAP financial results for the fourth quarter of 2018 compared to the fourth quarter of 2017:
Non-GAAP financial results for the fourth quarter of 2018 compared to the fourth quarter of 2017:1
The following table shows the Company's quarterly key business metrics for each of the last eight calendar quarters. Please refer to the Company’s latest Quarterly Report on Form 10-Q for a description of the key business metrics.
For comparative purposes, the following table shows the Company's quarterly key business metrics for each of the last eight calendar quarters under the prior year definitions described in the Company's 2017 Annual Report on Form 10-K.
Outlook for 2019
Green Dot has provided its outlook for 2019. Green Dot’s outlook is
based on a number of assumptions that management believes are reasonable
at the time of this earnings release. Information regarding potential
risks that could cause the actual results to differ from these
forward-looking statements is set forth below and in Green Dot's filings
As mentioned during Green Dot's quarterly earnings calls throughout 2018, Green Dot will adjust its presentation of revenue beginning with its report on the results of operations for the first quarter of 2019 to better reflect its successful evolution into a diverse technology-focused bank holding company that generates its revenue through a unique “Products and Platform” operating model.
Beginning with the first quarter in 2019, Green Dot will be presenting
net interest income generated at
Also beginning with the first quarter in 2019, Green Dot will be presenting a new non-GAAP revenue figure that reduces GAAP total operating revenue by commissions and certain processing-related costs associated with certain “Banking as a Service,” or “BaaS," partner programs, where the partner and not Green Dot controls customer acquisition. Green Dot believes that a net revenue presentation will better reflect the relevant amount of revenue Green Dot generates in respect of these types of BaaS platform programs.
Accordingly, Green Dot's outlook for non-GAAP revenues and adjusted EBITDA reflect this new presentation.
Total Non-GAAP Operating Revenues2
The components of Green Dot's non-GAAP EPS2 guidance range are as follows:
Supplemental Financial Presentation Information
The following table provides supplemental financial presentation
information for the fourth quarter and years ended
The Company will host a conference call to discuss fourth quarter 2018
financial results today at
This earnings release 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 Company's future performance contained
under "Outlook for 2019" and in the quotes of its executive officers and
other future events that involve risks and uncertainties. Actual results
may differ materially from those contained in the forward-looking
statements contained in this earnings release, and reported results
should not be considered as an indication of future performance. The
potential risks and uncertainties that could cause actual results to
differ from those projected include, among other things, the timing and
impact of revenue growth activities, the Company's dependence on
revenues derived from
About Non-GAAP Financial Measures
To supplement the Company's consolidated financial statements presented
in accordance with accounting principles generally accepted in
About Green Dot
The Company's operations are comprised of two reportable segments: 1) Account Services and 2) Processing and Settlement Services. The Account Services segment consists of revenues and expenses derived from the Company's deposit account programs, such as prepaid cards, debit cards, consumer and small business checking accounts, secured credit cards, payroll debit cards and gift cards. These deposit account programs are marketed under several of the Company's leading consumer brand names and under the brand names of the Company's Banking as a Service, or "BaaS," partners. The Processing and Settlement Services segment consists of revenues and expenses derived from the Company's products and services that specialize in facilitating the movement of cash on behalf of consumers and businesses, such as consumer cash processing services, wage disbursements and tax refund processing services. The Corporate and Other segment primarily consists of eliminations of intersegment revenues and expenses, unallocated corporate expenses, depreciation and amortization, and other costs that are not considered when management evaluates segment performance.
The Company believes that the non-GAAP financial measures it presents are useful to investors in evaluating the Company’s operating performance for the following reasons:
The Company’s management uses the non-GAAP financial measures:
The Company 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 consider them in isolation or as substitutes for analysis of the Company’s results of operations as reported under GAAP. Some of these limitations are: