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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. 

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.

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