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Green Dot Corporation (GDOT) Q1 Earnings Miss, Stock Down 4%
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Green Dot Corporation (GDOT - Free Report) reported mixed first-quarter 2021 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. The stock declined 4% since the earnings release in response to the lower-than-expected earnings performance.
Quarterly adjusted earnings of 83 cents per share missed the consensus estimate by 10.8% and declined 26.5% on a year-over-year basis. Non-GAAP operating revenues of $379.8 million surpassed the consensus mark by 6.7% and increased 10% year over year.
Shares of the company have surged 22.6% in the past year compared with 11.3% rise of the industry it belongs to.
Segmental Revenues
The Consumer Services segment’s revenues came in at $184.3 million, up 20.5% from the year-ago quarter’s level. The Business to Business Services segment’s revenues of $106 million increased 43.5% year over year. Money Movement Services segment’s revenues declined 24.7% year over year to $90.5 million.
Key Metrics
Gross dollar volume climbed 44.6% year over year to $20.7 billion. Purchase volume rose 26.1% from the prior-year quarter’s level to $10.4 billion. The company ended the quarter with 6.4 million active accounts, up 10.6% year over year.
Operating Results
Adjusted EBITDA of $73.4 million declined 20.4% on a year-over-year basis. Adjusted EBITDA margin of 19.3% was down from the year-ago quarter’s level of 26.6%.
Balance Sheet
Green Dot exited the quarter with cash, cash equivalents balance of $2.7 billion compared with $1.5 billion witnessed at the end of the prior quarter. The company had no long-term debt. Green Dot generated $80.7 million of cash from operating activities and capex was $10.5 million.
2021 Guidance
Green Dot raised its 2021 revenue guidance. It now expects 2021 non-GAAP total operating revenues in the range of $1.27 to $ 1.29 billion, compared with the previous guidance of $1.23-$1.25 billion. The revised guidance range is below the current Zacks Consensus Estimate of $1.3 billion.
The company continues to expect non-GAAP EPS in the range of $2.06 and $2.15, the midpoint ($2.1) of which is higher than the current consensus estimate of $2.09.
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
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Green Dot Corporation (GDOT) Q1 Earnings Miss, Stock Down 4%
Green Dot Corporation (GDOT - Free Report) reported mixed first-quarter 2021 results, with earnings missing the Zacks Consensus Estimate but revenues beating the same. The stock declined 4% since the earnings release in response to the lower-than-expected earnings performance.
Quarterly adjusted earnings of 83 cents per share missed the consensus estimate by 10.8% and declined 26.5% on a year-over-year basis. Non-GAAP operating revenues of $379.8 million surpassed the consensus mark by 6.7% and increased 10% year over year.
Shares of the company have surged 22.6% in the past year compared with 11.3% rise of the industry it belongs to.
Segmental Revenues
The Consumer Services segment’s revenues came in at $184.3 million, up 20.5% from the year-ago quarter’s level. The Business to Business Services segment’s revenues of $106 million increased 43.5% year over year. Money Movement Services segment’s revenues declined 24.7% year over year to $90.5 million.
Key Metrics
Gross dollar volume climbed 44.6% year over year to $20.7 billion. Purchase volume rose 26.1% from the prior-year quarter’s level to $10.4 billion. The company ended the quarter with 6.4 million active accounts, up 10.6% year over year.
Operating Results
Adjusted EBITDA of $73.4 million declined 20.4% on a year-over-year basis. Adjusted EBITDA margin of 19.3% was down from the year-ago quarter’s level of 26.6%.
Balance Sheet
Green Dot exited the quarter with cash, cash equivalents balance of $2.7 billion compared with $1.5 billion witnessed at the end of the prior quarter. The company had no long-term debt. Green Dot generated $80.7 million of cash from operating activities and capex was $10.5 million.
2021 Guidance
Green Dot raised its 2021 revenue guidance. It now expects 2021 non-GAAP total operating revenues in the range of $1.27 to $ 1.29 billion, compared with the previous guidance of $1.23-$1.25 billion. The revised guidance range is below the current Zacks Consensus Estimate of $1.3 billion.
The company continues to expect non-GAAP EPS in the range of $2.06 and $2.15, the midpoint ($2.1) of which is higher than the current consensus estimate of $2.09.
Currently, Green Dot carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus mark by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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