Green Dot(GDOT) - 2024 Q4 - Annual Results

Financial Performance - Green Dot reported total operating revenues of $455.024 million for Q4 2024, a 24% increase from $366.043 million in Q4 2023[3]. - The company achieved a net income of $5.103 million in Q4 2024, compared to a net loss of $23.603 million in Q4 2023, marking a significant turnaround[3]. - Total operating revenues for Q4 2024 reached $455.0 million, a 24.3% increase from $366.0 million in Q4 2023[21]. - Net income for Q4 2024 was $5.1 million, compared to a net loss of $23.6 million in Q4 2023, marking a significant turnaround[21]. - Basic earnings per share for Q4 2024 were $0.09, compared to a loss of $0.45 per share in Q4 2023, indicating improved profitability[21]. - Diluted earnings per share (GAAP) for Q4 2024 was $0.09, recovering from a loss of $0.45 in Q4 2023[30]. - Total segment revenues for the year ended December 31, 2024 were $1,707,715 thousand, a 15.1% increase from $1,483,795 thousand in 2023[28]. - Non-GAAP net income for the year ended December 31, 2024 was $74,005 thousand, compared to $85,214 thousand in 2023[30]. Revenue Projections - Green Dot expects full year non-GAAP total operating revenues for 2025 to be between $1.85 billion and $1.90 billion, representing approximately a 10% year-over-year increase at the mid-point[8]. - Total operating revenues for FY 2025 are projected to range from $1,860 million to $1,910 million[39]. - Non-GAAP total operating revenues for FY 2025 are expected to be between $1,850 million and $1,900 million[39]. EBITDA and Earnings Guidance - The company anticipates adjusted EBITDA for 2025 to be between $145 million and $155 million, reflecting a decline of approximately 9% year-over-year at the mid-point[9]. - Adjusted EBITDA for FY 2025 is forecasted to range from $145.0 million to $155.0 million, resulting in an adjusted EBITDA margin of 7.6% to 8.4%[41]. - Non-GAAP EPS guidance for 2025 is projected to be between $1.05 and $1.20, indicating an 18% decrease year-over-year at the mid-point[10]. - Non-GAAP diluted earnings per share for FY 2025 are projected to be between $1.05 and $1.20[42]. Customer Engagement and Growth - The number of active accounts increased to 3.67 million in Q4 2024, up from 3.57 million in Q4 2023, indicating growth in user engagement[6]. - Green Dot's gross dollar volume reached $35.282 billion in Q4 2024, up from $26.355 billion in Q4 2023, showcasing strong transaction growth[6]. - The company managed over 80 million accounts to date, reflecting its extensive customer base and market penetration[17]. - Cash processing revenues for the year ended December 31, 2024, were $231.8 million, up from $225.4 million in 2023, indicating steady growth[21]. - Consumer Services segment profit increased to $54,803 thousand in Q4 2024, up 45.3% from $37,740 thousand in Q4 2023[37]. - B2B Services segment revenue increased significantly to $312,146 thousand in Q4 2024, up 40.6% from $221,841 thousand in Q4 2023[28]. Financial Position and Liquidity - Green Dot's unencumbered cash at the holding company was approximately $86 million as of December 31, 2024, providing a solid liquidity position[3]. - The company’s unrestricted cash and cash equivalents increased to $1.59 billion as of December 31, 2024, from $682.3 million in 2023, highlighting improved liquidity[23]. - Total assets increased to $5.43 billion as of December 31, 2024, compared to $4.82 billion in 2023, showing a growth of 12.7%[19]. - The company reported a total of $4.01 billion in deposits as of December 31, 2024, an increase from $3.29 billion in 2023, reflecting strong customer trust and retention[19]. Operational Challenges and Management Insights - The company remains optimistic about future growth despite anticipated challenges in its Consumer Services segment[6]. - Green Dot recorded stock-based compensation expenses of approximately $5.9 million and $6.0 million for the three months ended December 31, 2024, and 2023, respectively[45]. - Green Dot's management uses non-GAAP financial measures to evaluate core operating performance and for planning purposes[43]. - Adjustments to non-GAAP measures include items such as stock-based compensation, acquisition-related expenses, and extraordinary severance expenses[46]. - Green Dot excludes certain income and expenses that are not reflective of ongoing operating results to enhance comparability[46]. - Money Movement Services segment profit decreased slightly to $8,727 thousand in Q4 2024 from $9,526 thousand in Q4 2023[37]. - The Corporate and Other segment reported a loss of $46,966 thousand in Q4 2024, compared to a loss of $40,034 thousand in Q4 2023[37].