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Green Dot's (GDOT) Q4 Earnings & Revenues Beat Estimates
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Green Dot Corporation (GDOT - Free Report) delivered impressive fourth-quarter 2018results,with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of 56 cents beat the consensus mark by 6 cents and surged 93.1% year over year. This marks the 10th consecutive quarter of double-digit growth. The bottom line was driven by strong adjusted EBITDA growth, interest income from the investment of cash deposits held at Green Dot Bank and lower year-over-year effective tax rate.
Total operating revenues of $237.8 million outpaced the consensus mark by $1 million and rose 11.6% year over year on the back of 100% organic growth.
Shares of Green Dot have gained 23.9% in the past year compared with the 15.1% rise of the industry.
Let’s discuss.
Key Metrics
Gross dollar volume grew 16.4% year over year to $9.8 billion. Purchase volume increased 10.9% from the prior-year quarter’s tally to $6.3 billion. The reported quarter ended with 5.3 million active accounts (up nearly 1% y/y) and 10.9 million cash transfers (up 9.6% y/y). The number of tax refunds processed were 0.07 million compared with 0.06 million in the year-ago quarter.
Segmental Revenues
Account Services operating revenues came in at $200.1 million, up 11.1% from the year-ago quarter. The segment benefited from growth in purchase volume and increased retention of customer accounts. Processing and Settlement Services revenues of $45 million, grew 10.9% from the year-ago quarter on the back of organic growth in each of the segment's various product lines.
Adjusted EBITDA of $43.9 million increased 36.8% on a year-over-year basis. Adjusted EBITDA margin of 18.4% increased from 15.1% in the year-ago quarter.
Balance Sheet & Cash Flow
Green Dot exited the quarter with cash, cash equivalents and restricted cash balance of $1.1 billion compared with $1 billion at the end of the prior quarter. The company has no long-term debt.
The company generated $36.7 million of cash from operating activities and spent $17.6 million in capex.
2019 Guidance
The company expects revenues in the range of $1.114-$1.134 billion, lower than the Zacks Consensus Estimate of $1.140 billion.
Adjusted earnings are anticipated between $3.59 and $3.67, the mid-point of which is lower than the Zacks Consensus Estimate of $3.66.
Adjusted EBITDA is expected in the band of $315-$321 million.
Investors interested in the broader Zacks Business Services sector are keenly awaiting fourth-quarter 2018 earnings reports of key players like Navigant Consulting , FTI Consulting (FCN - Free Report) and ICFI International (ICFI - Free Report) . The companies are slated to announce results on Feb 26.
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Green Dot's (GDOT) Q4 Earnings & Revenues Beat Estimates
Green Dot Corporation (GDOT - Free Report) delivered impressive fourth-quarter 2018results,with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings per share (EPS) of 56 cents beat the consensus mark by 6 cents and surged 93.1% year over year. This marks the 10th consecutive quarter of double-digit growth. The bottom line was driven by strong adjusted EBITDA growth, interest income from the investment of cash deposits held at Green Dot Bank and lower year-over-year effective tax rate.
Total operating revenues of $237.8 million outpaced the consensus mark by $1 million and rose 11.6% year over year on the back of 100% organic growth.
Shares of Green Dot have gained 23.9% in the past year compared with the 15.1% rise of the industry.
Let’s discuss.
Key Metrics
Gross dollar volume grew 16.4% year over year to $9.8 billion. Purchase volume increased 10.9% from the prior-year quarter’s tally to $6.3 billion. The reported quarter ended with 5.3 million active accounts (up nearly 1% y/y) and 10.9 million cash transfers (up 9.6% y/y). The number of tax refunds processed were 0.07 million compared with 0.06 million in the year-ago quarter.
Segmental Revenues
Account Services operating revenues came in at $200.1 million, up 11.1% from the year-ago quarter. The segment benefited from growth in purchase volume and increased retention of customer accounts. Processing and Settlement Services revenues of $45 million, grew 10.9% from the year-ago quarter on the back of organic growth in each of the segment's various product lines.
Green Dot Corporation Revenue (TTM)
Green Dot Corporation Revenue (TTM) | Green Dot Corporation Quote
Operating Results
Adjusted EBITDA of $43.9 million increased 36.8% on a year-over-year basis. Adjusted EBITDA margin of 18.4% increased from 15.1% in the year-ago quarter.
Balance Sheet & Cash Flow
Green Dot exited the quarter with cash, cash equivalents and restricted cash balance of $1.1 billion compared with $1 billion at the end of the prior quarter. The company has no long-term debt.
The company generated $36.7 million of cash from operating activities and spent $17.6 million in capex.
2019 Guidance
The company expects revenues in the range of $1.114-$1.134 billion, lower than the Zacks Consensus Estimate of $1.140 billion.
Adjusted earnings are anticipated between $3.59 and $3.67, the mid-point of which is lower than the Zacks Consensus Estimate of $3.66.
Adjusted EBITDA is expected in the band of $315-$321 million.
Zacks Rank & & Upcoming Releases
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.
Investors interested in the broader Zacks Business Services sector are keenly awaiting fourth-quarter 2018 earnings reports of key players like Navigant Consulting , FTI Consulting (FCN - Free Report) and ICFI International (ICFI - Free Report) . The companies are slated to announce results on Feb 26.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>