Company Turns Focus to Growth with Momentum Expected to Improve in 2024
Establishes 2024 Financial Guidance
AUSTIN, Texas–(BUSINESS WIRE)–Green Dot Corporation (NYSE: GDOT), a leading digital bank and fintech that delivers seamless banking and payment tools for consumers and businesses, today reported financial results for the quarter and year ended December 31, 2023.
“2023 was a pivotal year as we completed our processor conversion, streamlined costs and announced new partners in our BaaS and retail channels,” said George Gresham, Chief Executive Officer of Green Dot. “Looking forward with a more powerful and efficient foundation and a strong business pipeline, I believe we are poised to improve our revenue and adjusted EBITDA growth as we move through 2024.”
Consolidated Results Summary
|
|
Three Months Ended December 31, |
|
|
|
Year Ended December 31, |
|
|
||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
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|
|
(In thousands, except per share data and percentages) |
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|
||||||||||||||||||
|
GAAP financial results |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total operating revenues |
$ |
366,043 |
|
|
$ |
342,432 |
|
|
7 |
% |
|
$ |
1,501,328 |
|
|
$ |
1,449,566 |
|
|
4 |
% |
|
Net (loss) income |
$ |
(23,603 |
) |
|
$ |
5,884 |
|
|
* |
|
|
$ |
6,722 |
|
|
$ |
64,212 |
|
|
(90 |
)% |
|
Diluted (loss) earnings per common share |
$ |
(0.45 |
) |
|
$ |
0.11 |
|
|
* |
|
|
$ |
0.13 |
|
|
$ |
1.19 |
|
|
(89 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-GAAP financial results1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-GAAP total operating revenues1 |
$ |
361,717 |
|
|
$ |
336,630 |
|
|
7 |
% |
|
$ |
1,483,795 |
|
|
$ |
1,423,609 |
|
|
4 |
% |
|
Adjusted EBITDA1 |
$ |
25,727 |
|
|
$ |
35,387 |
|
|
(27 |
)% |
|
$ |
170,874 |
|
|
$ |
238,754 |
|
|
(28 |
)% |
|
Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin) |
|
7.1 |
% |
|
|
10.5 |
% |
|
(3.4 |
)% |
|
|
11.5 |
% |
|
|
16.8 |
% |
|
(5.3 |
)% |
|
Non-GAAP net income1 |
$ |
7,325 |
|
|
$ |
17,712 |
|
|
(59 |
)% |
|
$ |
85,214 |
|
|
$ |
140,024 |
|
|
(39 |
)% |
|
Non-GAAP diluted earnings per share1 |
$ |
0.14 |
|
|
$ |
0.34 |
|
|
(59 |
)% |
|
$ |
1.62 |
|
|
$ |
2.59 |
|
|
(37 |
)% |
|
* Change not meaningful |
|
|
|
|
|
|
|
|
|
|
|
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1 |
Reconciliations of total operating revenues to non-GAAP total operating revenues, net income to adjusted EBITDA, net income to non-GAAP net income, and diluted earnings per share to non-GAAP diluted earnings per share, respectively, are provided in the tables immediately following the unaudited consolidated financial statements. Additional information about the Company’s non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below. |
Unencumbered cash at the holding company was approximately $55 million as of December 31, 2023.
Green Dot has received a proposed consent order from the Federal Reserve Board relating principally to various aspects of compliance risk management, including consumer compliance and compliance with anti-money laundering regulations. The matters addressed in the proposed consent order relate to activities and practices that commenced prior to the company’s Chief Executive Officer transition in 2020. Included in the consent order are proposals for civil money penalties related to these issues. While Green Dot is still in discussions with the Federal Reserve Board regarding these proposals, it has accrued as part of its GAAP financial results an estimated liability of $20 million related to the proposed consent order during the quarter ended December 31, 2023. Green Dot believes the estimate of the aggregate range of reasonably possible losses (meaning the likelihood of losses is more than remote but less than likely) is up to $50 million as of December 31, 2023. This estimated range of reasonably possible losses is based on currently available information for those proceedings in which Green Dot is involved and considers its best estimate of such losses for those matters for which an estimate can be made. However, there can be no assurance that its accrual is sufficient or that losses from the consent order will not exceed the estimated range.
“We are confident in our financial and regulatory positions and do not expect this to impact our ability to operate and serve our customers and partners on an ongoing basis,” Gresham continued. “The regulatory environment is continuously evolving, and we are committed to partnering and fully cooperating with our regulators to ensure our products are designed and marketed in ways that put our customers’ best interests at the forefront.”
Key Metrics
The following table shows Green Dot’s quarterly key business metrics for each of the last eight calendar quarters on a consolidated basis and by each of its reportable segments. Please refer to Green Dot’s latest Quarterly Report on Form 10-Q for a description of the key business metrics, as well as additional information regarding how Green Dot organizes its business by segment.
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2023 |
|
2022 |
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|
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
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|
(In millions) |
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|
Consolidated * |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross dollar volume |
$ |
26,355 |
$ |
24,836 |
$ |
24,724 |
$ |
23,289 |
|
$ |
20,010 |
$ |
18,682 |
$ |
17,356 |
$ |
17,436 |
|
Number of active accounts |
|
3.57 |
|
3.67 |
|
3.71 |
|
3.84 |
|
|
4.15 |
|
4.33 |
|
4.61 |
|
4.93 |
|
Purchase volume |
$ |
5,273 |
$ |
5,362 |
$ |
5,734 |
$ |
6,145 |
|
$ |
6,292 |
$ |
6,443 |
$ |
6,760 |
$ |
7,192 |
|
Consumer Services |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross dollar volume |
$ |
4,290 |
$ |
4,619 |
$ |
5,122 |
$ |
5,677 |
|
$ |
5,426 |
$ |
5,495 |
$ |
5,715 |
$ |
6,621 |
|
Number of active accounts |
|
2.05 |
|
2.16 |
|
2.35 |
|
2.41 |
|
|
2.37 |
|
2.51 |
|
2.78 |
|
3.04 |
|
Direct deposit active accounts |
|
0.49 |
|
0.52 |
|
0.59 |
|
0.60 |
|
|
0.63 |
|
0.66 |
|
0.67 |
|
0.69 |
|
Purchase volume |
$ |
3,312 |
$ |
3,553 |
$ |
3,984 |
$ |
4,344 |
|
$ |
4,229 |
$ |
4,302 |
$ |
4,588 |
$ |
5,017 |
|
B2B Services |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross dollar volume |
$ |
22,065 |
$ |
20,217 |
$ |
19,602 |
$ |
17,612 |
|
$ |
14,584 |
$ |
13,187 |
$ |
11,641 |
$ |
10,815 |
|
Number of active accounts |
|
1.52 |
|
1.51 |
|
1.36 |
|
1.43 |
|
|
1.78 |
|
1.82 |
|
1.83 |
|
1.89 |
|
Purchase volume |
$ |
1,961 |
$ |
1,809 |
$ |
1,750 |
$ |
1,801 |
|
$ |
2,063 |
$ |
2,141 |
$ |
2,172 |
$ |
2,175 |
|
Money Movement |
|
|
|
|
|
|
|
|
|
||||||||
|
Number of cash transfers |
|
8.19 |
|
8.31 |
|
8.66 |
|
8.70 |
|
|
9.03 |
|
9.16 |
|
9.00 |
|
8.87 |
|
Number of tax refunds processed |
|
0.16 |
|
0.20 |
|
3.87 |
|
9.91 |
|
|
0.20 |
|
0.28 |
|
4.48 |
|
9.61 |
|
*Represents the sum of Green Dot’s Consumer Services and B2B (as defined herein) Services segments. |
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“Over the course of 2023, we faced numerous headwinds that impacted our financial performance, namely higher interest rates, client de-conversions and elevated spending on a variety of initiatives, including our processor conversions,” said Jess Unruh, Chief Financial Officer of Green Dot. “As I look at 2024, I expect to return to growth in the second half of the year as we lap tough comparisons, and more fully realize the benefit of new partner launches, expense management initiatives and other measures that we undertook in 2023.”
2024 Financial Guidance
Green Dot has provided its financial outlook for 2024. Green Dot’s outlook is based on a number of assumptions that management believes are reasonable at the time of this earnings release. In particular, its outlook reflects several considerations, including but not limited to the current macro-economic environment, the effect of high inflation and interest rates, the impact of previously disclosed non-renewals of certain partnerships and programs, the company’s decision to wind down many of its legacy cardholder programs in support of GO2bank, negative trends within certain channels of its business, investment in strategic initiatives and compliance programs, and cost reduction initiatives. Additionally, any fines or direct losses in excess of Green Dot’s accrual for the proposed consent order are expressly excluded from its outlook. 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 with the Securities and Exchange Commission.
Total Non-GAAP Operating Revenues2
- Green Dot expects its full year non-GAAP total operating revenues2 to be between $1.55 billion and $1.60 billion, or up approximately 6% year over year at the mid-point.
Adjusted EBITDA2
- Green Dot expects its full year adjusted EBITDA2 to be between $170 million and $180 million, or up approximately 2% year over year at the mid-point.
Non-GAAP EPS2
- Green Dot expects its full year non-GAAP EPS2 to be between $1.45 and $1.59, or down 6% year over year at the mid-point.
The components of Green Dot’s non-GAAP EPS2 guidance range are as follows:
|
|
Range |
||||||
|
|
Low |
|
High |
||||
|
|
(In millions, except per share data) |
||||||
|
Adjusted EBITDA |
$ |
170.0 |
|
|
$ |
180.0 |
|
|
Depreciation and amortization* |
|
(66.0 |
) |
|
|
(66.0 |
) |
|
Net interest expense |
|
(3.0 |
) |
|
|
(3.0 |
) |
|
Non-GAAP pre-tax income |
$ |
101.0 |
|
|
$ |
111.0 |
|
|
Tax impact** |
|
(22.7 |
) |
|
|
(25.0 |
) |
|
Non-GAAP net income |
$ |
78.3 |
|
|
$ |
86.0 |
|
|
Non-GAAP diluted weighted-average shares issued and outstanding |
|
54.0 |
|
|
|
54.0 |
|
|
Non-GAAP earnings per share |
$ |
1.45 |
|
|
$ |
1.59 |
|
|
* |
Excludes the impact of amortization of acquired intangible assets |
|
** |
Assumes a non-GAAP effective tax rate of approximately 22.5% for full year. |
|
2 |
For additional information, see reconciliations of forward-looking guidance for these non-GAAP financial measures to their respective, most directly comparable projected GAAP financial measures provided in the tables immediately following the reconciliation of Net Income to Adjusted EBITDA. |
Conference Call
Green Dot’s management will host a conference call to discuss fourth quarter and full year 2023 financial results today at 5:00 p.m. ET. The conference call can be accessed live from Green Dot’s investor relations website at http://ir.greendot.com/. Green Dot uses this website as a tool to disclose important information about the company to investors and comply with its disclosure obligations under Regulation Fair Disclosure. A replay of the webcast will be available at the same website following the call. The replay will be available until Tuesday, March 5, 2024.
Forward-Looking Statements
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 in the quotes of Green Dot’s executive officers and under the heading “2024 Financial Guidance,” 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, Green Dot’s ability to achieve the expected cost savings and other benefits from its processor conversions, impacts from and changes in general economic conditions on Green Dot’s business, results of operations and financial condition, shifts in consumer behavior towards electronic payments, the timing and impact of revenue growth activities, Green Dot’s dependence on revenues derived from Walmart, the timing and impact of non-renewals or terminations of agreements with other large partners, impact of competition, Green Dot’s reliance on retail distributors for the promotion of its products and services, demand for Green Dot’s new and existing products and services, continued and improving returns from Green Dot’s investments in strategic initiatives, Green Dot’s ability to operate in a highly regulated environment, including with respect to any restrictions imposed on its business, changes to governmental policies or rulemaking or enforcement priorities affecting financial institutions or to existing laws or regulations affecting Green Dot’s operating methods or economics, Green Dot’s reliance on third-party vendors, changes in credit card association or other network rules or standards, changes in card association and debit network fees or products or interchange rates, instances of fraud developments in the prepaid financial services industry that impact prepaid debit card usage generally, business interruption or systems failure, economic, political and other conditions may adversely affect trends in consumer spending and Green Dot’s involvement in litigation or investigations. These and other risks are discussed in greater detail in Green Dot’s Securities and Exchange Commission filings, including its most recent annual report on Form 10-K and quarterly report on Form 10-Q, which are available on Green Dot’s investor relations website at ir.greendot.com and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of February 27, 2024, and Green Dot assumes no obligation to update this information as a result of future events or developments, except as required by law.
About Non-GAAP Financial Measures
To supplement Green Dot’s consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (GAAP), Green Dot uses measures of operating results that are adjusted for, among other things, non-operating net interest income and expense; other non-interest investment income earned by its bank; income tax benefit and expense; depreciation and amortization, including amortization of acquired intangibles; certain legal settlement gains and charges; stock-based compensation and related employer payroll taxes; changes in the fair value of contingent consideration; transaction costs from acquisitions; amortization attributable to deferred financing costs, impairment charges; extraordinary severance expenses; earnings or losses from equity method investments; changes in the fair value of loans held for sale; commissions and certain processing-related costs associated with Banking as a Service (“BaaS”) products and services where Green Dot does not control customer acquisition; realized gains on investment securities; other charges and income not reflective of ongoing operating results; and income tax effects. This earnings release includes non-GAAP total operating revenues, adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share. These non-GAAP financial measures are not calculated or presented in accordance with, and are not alternatives or substitutes for, financial measures prepared in accordance with GAAP, and should be read only in conjunction with Green Dot’s financial measures prepared in accordance with GAAP. Green Dot’s non-GAAP financial measures may be different from similarly-titled non-GAAP financial measures used by other companies. Green Dot believes that the presentation of non-GAAP financial measures provides useful information to management and investors regarding underlying trends in its consolidated financial condition and results of operations. Green Dot’s management regularly uses these supplemental non-GAAP financial measures internally to understand, manage and evaluate Green Dot’s business and make operating decisions. For additional information regarding Green Dot’s use of non-GAAP financial measures and the items excluded by Green Dot from one or more of its historic and projected non-GAAP financial measures, investors are encouraged to review the reconciliations of Green Dot’s historic and projected non-GAAP financial measures to the comparable GAAP financial measures, which are attached to this earnings release, and which can be found by clicking on “Financial Information” in the Investor Relations section of Green Dot’s website at http://ir.greendot.com/.
About Green Dot
Green Dot Corporation (NYSE: GDOT) is a financial technology and registered bank holding company committed to giving all people the power to bank seamlessly, affordably, and with confidence. Green Dot’s technology platform enables it to build products and features that address the most pressing financial challenges of consumers and businesses, transforming the way they manage and move money and making financial empowerment more accessible for all.
Green Dot offers a broad set of financial products to consumers and businesses including debit, checking, credit, prepaid, and payroll cards, as well as robust money processing services, such as tax refunds, cash deposits and disbursements. Its flagship digital banking platform GO2bank offers consumers simple and accessible mobile banking designed to help improve financial health over time. The company’s banking platform services business enables a growing list of the world’s largest and most trusted consumer and technology brands to deploy customized, seamless, value-driven money management solutions for their customers.
Founded in 1999, Green Dot has served more than 33 million customers directly and many millions more through its partners. The Green Dot Network of more than 90,000 retail distribution locations nationwide, more than all remaining bank branches in the U.S. combined, enables it to operate primarily as a “branchless bank.” Green Dot Bank is a subsidiary of Green Dot Corporation and member of the FDIC. For more information about Green Dot’s products and services, please visit www.greendot.com.
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GREEN DOT CORPORATION |
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|
CONSOLIDATED BALANCE SHEETS |
|||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
|
|
(unaudited) |
|
|
||||
|
Assets |
(In thousands, except par value) |
||||||
|
Current assets: |
|
|
|
||||
|
Unrestricted cash and cash equivalents |
$ |
682,263 |
|
|
$ |
813,945 |
|
|
Restricted cash |
|
4,239 |
|
|
|
5,900 |
|
|
Investment securities available-for-sale, at fair value |
|
33,859 |
|
|
|
— |
|
|
Settlement assets |
|
737,989 |
|
|
|
493,395 |
|
|
Accounts receivable, net |
|
110,141 |
|
|
|
74,437 |
|
|
Prepaid expenses and other assets |
|
69,419 |
|
|
|
78,155 |
|
|
Total current assets |
|
1,637,910 |
|
|
|
1,465,832 |
|
|
Investment securities available-for-sale, at fair value |
|
2,203,142 |
|
|
|
2,363,687 |
|
|
Loans to bank customers, net of allowance for credit losses of $11,383 and $9,078 as of December 31, 2023 and December 31, 2022, respectively |
|
30,534 |
|
|
|
21,421 |
|
|
Prepaid expenses and other assets |
|
221,656 |
|
|
|
192,901 |
|
|
Property, equipment, and internal-use software, net |
|
179,376 |
|
|
|
160,222 |
|
|
Operating lease right-of-use assets |
|
5,342 |
|
|
|
8,316 |
|
|
Deferred expenses |
|
1,546 |
|
|
|
14,547 |
|
|
Net deferred tax assets |
|
117,139 |
|
|
|
117,167 |
|
|
Goodwill and intangible assets |
|
420,477 |
|
|
|
445,083 |
|
|
Total assets |
$ |
4,817,122 |
|
|
$ |
4,789,176 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
119,870 |
|
|
$ |
113,891 |
|
|
Deposits |
|
3,293,603 |
|
|
|
3,450,105 |
|
|
Obligations to customers |
|
314,278 |
|
|
|
218,239 |
|
|
Settlement obligations |
|
57,001 |
|
|
|
40,691 |
|
|
Amounts due to card issuing banks for overdrawn accounts |
|
225 |
|
|
|
328 |
|
|
Other accrued liabilities |
|
91,239 |
|
|
|
98,580 |
|
|
Operating lease liabilities |
|
3,369 |
|
|
|
3,167 |
|
|
Deferred revenue |
|
6,343 |
|
|
|
25,029 |
|
|
Line of credit |
|
61,000 |
|
|
|
— |
|
|
Income tax payable |
|
6,262 |
|
|
|
11,641 |
|
|
Total current liabilities |
|
3,953,190 |
|
|
|
3,961,671 |
|
|
Other accrued liabilities |
|
1,895 |
|
|
|
5,777 |
|
|
Operating lease liabilities |
|
2,687 |
|
|
|
5,247 |
|
|
Line of credit |
|
— |
|
|
|
35,000 |
|
|
Total liabilities |
|
3,957,772 |
|
|
|
4,007,695 |
|
|
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Class A common stock, $0.001 par value; 100,000 shares authorized as of December 31, 2023 and December 31, 2022; 52,816 and 51,674 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively |
|
53 |
|
|
|
52 |
|
|
Additional paid-in capital |
|
375,980 |
|
|
|
340,575 |
|
|
Retained earnings |
|
770,304 |
|
|
|
763,582 |
|
|
Accumulated other comprehensive loss |
|
(286,987 |
) |
|
|
(322,728 |
) |
|
Total stockholders’ equity |
|
859,350 |
|
|
|
781,481 |
|
|
Total liabilities and stockholders’ equity |
$ |
4,817,122 |
|
|
$ |
4,789,176 |
|
|
GREEN DOT CORPORATION |
|||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
(UNAUDITED) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(In thousands, except per share data) |
||||||||||||||
|
Operating revenues: |
|
|
|
|
|
|
|
||||||||
|
Card revenues and other fees |
$ |
272,185 |
|
|
$ |
225,339 |
|
|
$ |
1,007,565 |
|
|
$ |
876,318 |
|
|
Cash processing revenues |
|
33,491 |
|
|
|
36,632 |
|
|
|
225,416 |
|
|
|
235,445 |
|
|
Interchange revenues |
|
52,053 |
|
|
|
69,345 |
|
|
|
231,003 |
|
|
|
295,646 |
|
|
Interest income, net |
|
8,314 |
|
|
|
11,116 |
|
|
|
37,344 |
|
|
|
42,157 |
|
|
Total operating revenues |
|
366,043 |
|
|
|
342,432 |
|
|
|
1,501,328 |
|
|
|
1,449,566 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Sales and marketing expenses |
|
50,795 |
|
|
|
70,002 |
|
|
|
245,325 |
|
|
|
297,900 |
|
|
Compensation and benefits expenses |
|
45,594 |
|
|
|
58,196 |
|
|
|
238,528 |
|
|
|
243,939 |
|
|
Processing expenses |
|
178,673 |
|
|
|
131,719 |
|
|
|
639,228 |
|
|
|
481,460 |
|
|
Other general and administrative expenses |
|
117,253 |
|
|
|
74,436 |
|
|
|
355,577 |
|
|
|
331,892 |
|
|
Total operating expenses |
|
392,315 |
|
|
|
334,353 |
|
|
|
1,478,658 |
|
|
|
1,355,191 |
|
|
Operating (loss) income |
|
(26,272 |
) |
|
|
8,079 |
|
|
|
22,670 |
|
|
|
94,375 |
|
|
Interest expense, net |
|
906 |
|
|
|
112 |
|
|
|
3,027 |
|
|
|
255 |
|
|
Other income (expense), net |
|
1,040 |
|
|
|
(1,142 |
) |
|
|
(5,010 |
) |
|
|
(10,199 |
) |
|
(Loss) income before income taxes |
|
(26,138 |
) |
|
|
6,825 |
|
|
|
14,633 |
|
|
|
83,921 |
|
|
Income tax (benefit) expense |
|
(2,535 |
) |
|
|
941 |
|
|
|
7,911 |
|
|
|
19,709 |
|
|
Net (loss) income |
$ |
(23,603 |
) |
|
$ |
5,884 |
|
|
$ |
6,722 |
|
|
$ |
64,212 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic (loss) earnings per common share: |
$ |
(0.45 |
) |
|
$ |
0.11 |
|
|
$ |
0.13 |
|
|
$ |
1.20 |
|
|
Diluted (loss) earnings per common share |
$ |
(0.45 |
) |
|
$ |
0.11 |
|
|
$ |
0.13 |
|
|
$ |
1.19 |
|
|
Basic weighted-average common shares issued and outstanding: |
|
52,622 |
|
|
|
51,901 |
|
|
|
52,251 |
|
|
|
53,351 |
|
|
Diluted weighted-average common shares issued and outstanding: |
|
52,622 |
|
|
|
52,299 |
|
|
|
52,510 |
|
|
|
53,871 |
|
|
GREEN DOT CORPORATION |
|||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(UNAUDITED) |
|||||||
|
|
Year Ended December 31, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(In thousands) |
||||||
|
Operating activities |
|
|
|
||||
|
Net income |
$ |
6,722 |
|
|
$ |
64,212 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization of property, equipment and internal-use software |
|
58,714 |
|
|
|
57,101 |
|
|
Amortization of intangible assets |
|
24,257 |
|
|
|
23,509 |
|
|
Provision for uncollectible overdrawn accounts from purchase transactions |
|
24,771 |
|
|
|
13,771 |
|
|
Provision for loan losses |
|
26,311 |
|
|
|
32,352 |
|
|
Stock-based compensation |
|
33,744 |
|
|
|
34,812 |
|
|
Losses in equity method investments |
|
9,310 |
|
|
|
15,648 |
|
|
Amortization of discount on available-for-sale investment securities |
|
(2,276 |
) |
|
|
(1,434 |
) |
|
Impairment of long-lived assets |
|
— |
|
|
|
4,264 |
|
|
Deferred income tax benefit |
|
(11,867 |
) |
|
|
(6,674 |
) |
|
Other |
|
(4,100 |
) |
|
|
(4,666 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable, net |
|
(60,475 |
) |
|
|
(7,807 |
) |
|
Prepaid expenses and other assets |
|
3,354 |
|
|
|
5,417 |
|
|
Deferred expenses |
|
13,001 |
|
|
|
2,308 |
|
|
Accounts payable and other accrued liabilities |
|
690 |
|
|
|
41,098 |
|
|
Deferred revenue |
|
(19,539 |
) |
|
|
(3,694 |
) |
|
Income tax receivable/payable |
|
(5,613 |
) |
|
|
11,716 |
|
|
Other, net |
|
515 |
|
|
|
(4,247 |
) |
|
Net cash provided by operating activities |
|
97,519 |
|
|
|
277,686 |
|
|
|
|
|
|
||||
|
Investing activities |
|
|
|
||||
|
Purchases of available-for-sale investment securities |
|
— |
|
|
|
(931,549 |
) |
|
Proceeds from maturities of available-for-sale securities |
|
176,665 |
|
|
|
293,748 |
|
|
Proceeds from sales and calls of available-for-sale securities |
|
186 |
|
|
|
3,488 |
|
|
Payments for property, equipment and internal-use software |
|
(75,942 |
) |
|
|
(84,326 |
) |
|
Net changes in loans |
|
(28,970 |
) |
|
|
(32,057 |
) |
|
Investment in TailFin Labs, LLC |
|
(35,000 |
) |
|
|
(35,000 |
) |
|
Purchases of other investments |
|
— |
|
|
|
(31,934 |
) |
|
Other investing activities |
|
(3,782 |
) |
|
|
(2,558 |
) |
|
Net cash provided by (used in) investing activities |
|
33,157 |
|
|
|
(820,188 |
) |
|
|
|
|
|
||||
|
Financing activities |
|
|
|
||||
|
Borrowings on revolving line of credit |
|
282,000 |
|
|
|
100,000 |
|
|
Repayments on revolving line of credit |
|
(256,000 |
) |
|
|
(65,000 |
) |
|
Proceeds from exercise of options and ESPP purchases |
|
5,565 |
|
|
|
6,177 |
|
|
Taxes paid related to net share settlement of equity awards |
|
(3,903 |
) |
|
|
(5,947 |
) |
|
Net changes in deposits |
|
(159,436 |
) |
|
|
157,140 |
|
|
Net changes in settlement assets and obligations to customers |
|
(132,245 |
) |
|
|
(53,991 |
) |
|
Contingent consideration payments |
|
— |
|
|
|
(1,647 |
) |
|
Repurchase of Class A common stock |
|
— |
|
|
|
(95,525 |
) |
|
Other financing activities |
|
— |
|
|
|
(4,500 |
) |
|
Net cash (used in) provided by financing activities |
|
(264,019 |
) |
|
|
36,707 |
|
|
|
|
|
|
||||
|
Net decrease in unrestricted cash, cash equivalents and restricted cash |
|
(133,343 |
) |
|
|
(505,795 |
) |
|
Unrestricted cash, cash equivalents and restricted cash, beginning of period |
|
819,845 |
|
|
|
1,325,640 |
|
|
Unrestricted cash, cash equivalents and restricted cash, end of period |
$ |
686,502 |
|
|
$ |
819,845 |
|
|
|
|
|
|
||||
|
Cash paid for interest |
$ |
5,923 |
|
|
$ |
627 |
|
|
Cash paid for income taxes |
$ |
24,351 |
|
|
$ |
12,966 |
|
|
|
|
|
|
||||
|
Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period: |
|
|
|
||||
|
Unrestricted cash and cash equivalents |
$ |
682,263 |
|
|
$ |
813,945 |
|
|
Restricted cash |
|
4,239 |
|
|
|
5,900 |
|
|
Total unrestricted cash, cash equivalents and restricted cash, end of period |
$ |
686,502 |
|
|
$ |
819,845 |
|
Contacts
Investor Relations: IR@greendot.com
Media Relations: PR@greendotcorp.com
