In This Article:
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Adjusted Revenue Growth: Up 25% year over year in Q4 2024.
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Adjusted EBITDA Growth: Increased 70% year over year in Q4 2024.
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Margin Expansion: Over 200 basis points improvement.
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Average Active Accounts: Up 3% year over year, marking the first growth in almost four years.
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Non-GAAP EPS: $0.40, a 190% increase from the previous year.
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Consumer Segment Revenue: Decline eased due to new partnership with PLS.
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B2B Segment Revenue: Driven by significant growth in the BaaS partner portfolio.
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Money Movement Segment: Tax business experienced revenue growth; money processing slightly down.
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2025 Revenue Guidance: Non-GAAP revenue expected between $1.85 billion to $1.9 billion.
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2025 Adjusted EBITDA Guidance: Expected between $145 million to $155 million.
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2025 Non-GAAP EPS Guidance: Expected between $1.05 to $1.20.
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Adjusted revenue increased by 25% year over year, and adjusted EBITA rose by 70%, indicating strong financial performance.
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The B2B segment showed significant growth, contributing to the overall positive results.
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Average active accounts increased by 3% year over year, marking the first growth in this metric in almost four years.
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The company successfully launched new partnerships, including PLS and Dole fintech, enhancing its retail and embedded finance channels.
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Green Dot Corp (NYSE:GDOT) has made substantial progress in building a robust business development engine, leading to a 50% increase in its pipeline year over year.
Negative Points
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The consumer segment continues to face challenges, with expected revenue declines due to secular headwinds in the retail channel.
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Despite overall growth, the rapid pay card channel experienced modest revenue declines due to pressures in the staffing industry.
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The company anticipates a decline in adjusted EBITA for 2025, primarily due to challenges in the consumer segment.
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There are ongoing regulatory and compliance-related expenses, which are expected to modestly elevate corporate expenses.
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The retail distribution channel operates on a costly legacy platform, which has not yet benefited from recent investments.
Q & A Highlights
Q: Can you comment on the macroeconomic pressures factored into the 2025 guidance? Are you anticipating further deterioration or a steady state? A: Jess Unruh, CFO: Our range allows for potential macroeconomic factors. For instance, if we return to an inflationary environment, it could affect ticket sizes and interchange rates. Additionally, changes in the yield curve could impact interest income at our bank. These considerations were factored into our 2025 guidance.