Green Dot (GDOT) Beats on Q1 Earnings Amid Coronavirus Crisis
Green Dot Corporation GDOT reported solid first-quarter 2020 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings of $1.13 beat the consensus estimate by 20.2% but declined 25.2% year over year. Non-GAAP operating revenues of $346.5 million surpassed the consensus mark by 8.5% and improved 6.4% year over year.
Shares of the company have depreciated 32.5% over the past year, as against the 5% rally of the industry it belongs to.
Segmental Revenues
The Account Services segment’s non-GAAP operating revenues came in at $233.3 million, up 2.2% from the year-ago quarter owing to a rise in BaaS program management service fee revenues earned from platform partners and increase in the number of direct deposit active accounts from BaaS and PayCard programs. This increase was partially offset by a decline in the number of active accounts in Consumer programs.
The Processing and Settlement Services segment’s non-GAAP operating revenues of $122 million grew 13.8% from the year-ago quarter, driven by robust performance in both tax processing and money processing services.
Green Dot Corporation Revenue (TTM)
Green Dot Corporation revenue-ttm | Green Dot Corporation Quote
Key Metrics
Gross dollar volume climbed 10.1% year over year to $14.3 billion. Gross dollar volume from direct deposit sources increased 4.3% year over year to $10.7 million. Purchase volume also inched up 1% from the prior-year quarter to $8.3 billion. The company ended the first quarter with 5.7 million active accounts (down 5.1%) and 12.1 million cash transfers (up 10.5% year over year). The number of tax refunds processed was 9.7 million, up 3.3% year over year.
Operating Results
Adjusted EBITDA of $92.1 million decreased 22.6% on a year-over-year basis. Adjusted EBITDA margin of 26.6% also slid from the year-ago quarter’s 36.5%.
Balance Sheet
Green Dot exited the first quarter with cash, cash equivalents and restricted cash balance of $1.56 billion compared with the $1.06 billion witnessed at the end of the prior quarter. The company had no long-term debt.
The company generated $104.1 million of cash from operating activities and capex was $15.7 million.
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
S&P Global Inc. SPGI reported first-quarter 2020 adjusted earnings per share of $2.73, which beat the consensus mark by 15.7% and improved 29.4% year over year on revenue growth, benefits of productivity initiatives and reduced business travel. The stock carries a Zacks Rank #3, at present.
IQVIA Holdings Inc. IQV delivered first-quarter 2020 adjusted earnings per share of $1.50, which outpaced the consensus mark by 1.4% but decreased 1.9% on a year-over-year basis. The reported figure was within the guided range of $1.46-$1.51. The stock currently carries a Zacks Rank of 3.
Insperity, Inc. NSP came up with first-quarter 2020 adjusted earnings of $1.70 per share, which surpassed the consensus mark by 5.6% but decreased 14.1% year over year. The reported figure matched the higher-end of the guided range of $1.61-$1.70. Currently, the stock carries a Zacks Rank #3.
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