Green Dot Corporation GDOT reported mixed third-quarter 2024 results, with earnings missing the Zacks Consensus Estimate but revenues surpassing the same.

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Despite the earnings miss, the stock has gained 3.7% since the earnings release on Nov. 7, 2024.

Quarterly earnings per share (excluding 28 cents from non-recurring items) of 13 cents missed the consensus estimate by 23.5% and declined 7.1% from the year-ago quarter. Revenues of $406 million beat the Zacks Consensus Estimate by 6.4% and increased 15% on a year-over-year basis.

The company’s shares have gained 37.1% in the past year, outperforming the industry and the Zacks S&P 500 Composite’s growth of 35.1% and 33%, respectively.

One Year Price Performance

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Green Dot’s Segmental Revenues

B2B Services revenues increased 38.8% in the third quarter of 2024 to $276.4 million. This segment’s revenue growth was fueled by a BaaS partner and stability across the BaaS portfolio. 

Money Movement Services’ revenues declined marginally from the year-ago quarter to $31.9 million. The decline in the money processing business from the fall in GDOT’s active account base impacted this segment’s revenues.

The Consumer Services segment’s revenues amounted to $98 million, down 17.1% on a year-over-year basis. The effects of continued headwinds in the retail channel that impacted the number of active accounts on GDOT’s platform resulted in this segment’s downfall.

GDOT’s Key Metrics

GDOT’s gross dollar volume increased 27% from the year-ago quarter to $33.5 billion. Purchase volume fell 8.9% year over year to $4.9 billion. The company ended the quarter with 3.5 million active accounts, down 5.7% on a year-over-year basis.

Green Dot’s Operating Results

Adjusted EBITDA totaled $28.3 million, increasing 19.3% on a year-over-year basis. The adjusted EBITDA margin plummeted 20 basis points to 7%.

Balance Sheet & Cash Flow of GDOT

Green Dot exited the third quarter with unrestricted cash and cash equivalent balance of $1.5 billion compared with $1.3 billion in the second quarter of 2024. GDOT had no long-term debt. It generated $16.3 million of cash from operating activities. The company’s capital expenditure was $20.7 million.

GDOT’s 2024 Guidance

For 2024, GDOT updated its guidance for total operating revenues to $1.65-$1.70 billion from the preceding quarter’s view of $1.60-$1.70 billion. The mid-point of the guided range ($1.68 billion) meets the current Zacks Consensus Estimate.

For 2024, adjusted earnings per share guidance is lowered to $1.33-$1.36 from $1.45-$1.59 provided in the previous quarter. The guided range is lower than the current consensus estimate for earnings of $1.47 per share. The adjusted EBITDA is reduced to $164-$166 million from $170-$180 million in the previous quarter.

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.

Earnings Snapshot of GDOT’s Peers

IQVIA Holdings Analytics Inc. IQV reported impressive third-quarter 2024 results.

IQV’s adjusted earnings were $2.8 per share, outpacing the Zacks Consensus Estimate by 1.1% and rising 2.3% on a year-over-year basis. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1 and grew 4.3% from the year-ago quarter.

TransUnion TRU posted impressive third-quarter 2024 results.

TRU’s quarterly adjusted earnings (adjusting 69 cents from non-recurring items) of $1 per share surpassed the consensus mark by 2% and increased 14.3% on a year-over-year basis. Total revenues of $1.1 billion outpaced the consensus mark by 2.2% and increased 12% from the year-ago quarter.

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