Green Dot Stock Appreciates 4% Despite Earnings Miss in Q3

Core Viewpoint - Green Dot Corporation (GDOT) reported mixed results for Q3 2024, with earnings missing estimates while revenues exceeded expectations [1][2] Financial Performance - Quarterly earnings per share (excluding non-recurring items) were 13 cents, missing the consensus estimate by 23.5% and declining 7.1% year-over-year [2] - Revenues reached $406 million, surpassing the Zacks Consensus Estimate by 6.4% and increasing 15% year-over-year [2] - Adjusted EBITDA totaled $28.3 million, up 19.3% year-over-year, but the adjusted EBITDA margin decreased by 20 basis points to 7% [5] Segment Performance - B2B Services revenues increased by 38.8% to $276.4 million, driven by a BaaS partner and stability in the BaaS portfolio [3] - Money Movement Services revenues slightly declined to $31.9 million due to a decrease in GDOT's active account base [3] - Consumer Services segment revenues fell to $98 million, down 17.1% year-over-year, impacted by headwinds in the retail channel [4] Key Metrics - Gross dollar volume increased by 27% year-over-year to $33.5 billion, while purchase volume fell by 8.9% to $4.9 billion [5] - The number of active accounts decreased by 5.7% year-over-year to 3.5 million [5] Balance Sheet & Cash Flow - Green Dot ended Q3 with unrestricted cash and cash equivalents of $1.5 billion, up from $1.3 billion in Q2 2024, and had no long-term debt [6] - The company generated $16.3 million in cash from operating activities, with capital expenditures of $20.7 million [6] Guidance - For 2024, GDOT updated its total operating revenues guidance to $1.65-$1.70 billion, aligning with the current Zacks Consensus Estimate [7] - Adjusted earnings per share guidance was lowered to $1.33-$1.36, below the previous estimate of $1.45-$1.59 and the current consensus of $1.47 [8] - Adjusted EBITDA guidance was also reduced to $164-$166 million from $170-$180 million [8]