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GDOT's Earnings and Revenues Surpass Estimates in Q4

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Green Dot Corporation (GDOT - Free Report) reported impressive fourth-quarter 2024 results. Earnings and revenues beat the Zacks Consensus Estimate.

See the Zacks Earnings Calendar to stay ahead of market-making news.

The stock has declined 6.4% since the earnings release on Feb. 27, as the 2025 guidance was weak.

GDOT has provided its 2025 guidance for total operating revenues to range between $1.85 and $1.90 billion. The midpoint of the guided range ($1.87 billion) is below the current Zacks Consensus Estimate of $1.89 billion.

Adjusted earnings per share guidance is the band of $1.05-$1.20. The midpoint of the guided range ($1.13 per share) is lower than the current consensus estimate for earnings of $1.53 per share. The adjusted EBITDA is anticipated to be in the band of $145-$155 million.

Green Dot Corporation Price, Consensus and EPS Surprise

Green Dot Corporation Price, Consensus and EPS Surprise

Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote

Quarterly earnings per share (excluding 31 cents from non-recurring items) of 40 cents outpaced the consensus estimate by 5.3% and improved more than 100% from the year-ago quarter. Revenues of $451.7 million beat the Zacks Consensus Estimate by 7% and increased 23.4% on a year-over-year basis.

The company’s shares have declined 5.5% in the past year, outperforming the industry and the Zacks S&P 500 Composite’s growth of 19.6% and 17.1%, respectively.

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Green Dot’s Segmental Revenues

B2B Services revenues increased 41% in the fourth quarter of 2024 to $312.1 million. This segment’s revenue growth was fueled by a BaaS partner and stability across the BaaS portfolio. 

Money Movement Services’ revenues improved 1% from the year-ago quarter to $29.7 million. Growth was impacted by a slight dip in Money Processing, while Tax Processing saw revenue growth. Third-party volumes, up by double digits and now constituting 70% of transactions, also boosted performance.

The Consumer Services segment’s revenues amounted to $107.2 million, down 4% on a year-over-year basis. Declines continue to remain largely driven by secular headwinds in the Retail channel, partially offset by the impact of the recent launch of PLS.

GDOT’s Key Metrics

GDOT’s gross dollar volume increased 34% from the year-ago quarter to $35.3 billion. Purchase volume fell 2% year over year to $5.6 billion. The company ended the quarter with $3.7 million active accounts, down 3% on a year-over-year basis.

Green Dot’s Operating Results

Adjusted EBITDA totaled $43.8 million, increasing 70% on a year-over-year basis. The adjusted EBITDA margin plummeted 259 basis points to 9.7%.

Balance Sheet & Cash Flow of GDOT

Green Dot exited the fourth quarter with unrestricted cash and cash equivalent balance of $1.6 billion compared with $682.3 million in the fourth quarter of 2023. GDOT had no long-term debt. It generated $81.4 million of cash from operating activities. The company’s capital expenditure was $109.3 million.

Green Dot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of GDOT’s Peers

IQVIA Holdings Analytics Inc. (IQV - Free Report) reported impressive fourth-quarter 2024 results.

IQV’s adjusted earnings were $3.12 per share, outpacing the Zacks Consensus Estimate marginally and rising 9.9% on a year-over-year basis. Total revenues of $4 billion surpassed the consensus estimate by a slight margin and grew 2.3% from the year-ago quarter.

TransUnion (TRU - Free Report) posted impressive fourth-quarter 2024 results.

TRU’s quarterly adjusted earnings (adjusting 63 cents from non-recurring items) of 97 cents per share surpassed the consensus mark by 1% and increased 21.3% on a year-over-year basis. Total revenues of $1 billion outpaced the consensus mark by a slight margin and rose 8.7% from the year-ago quarter.


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