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Green Dot (GDOT) Stock Plunges 34% Since Q3 Earnings Miss

Green Dot Corporation GDOT reported mixed third-quarter 2023 results, with earnings lagging the Zacks Consensus Estimate but revenues beat the same. Earnings miss might have disappointed investors as the stock has dipped 34% since the earnings release on Nov 9.

Quarterly non-GAAP earnings (excluding 26 cents from non-recurring items) of 14 cents per share fell short of the consensus estimate by 30%. Also, the bottom line decreased 68.2% on a year-over-year basis. Non-GAAP operating revenues of $348.6 million outpaced the consensus mark by 5.2% and improved 1.4% year over year.

Segmental Revenues

The Consumer Services segment’s revenues totaled $118.2 million, down 13% from the year-ago level. The metric is in line with our estimate of $118 million.

B2B Services revenues increased 25.9% year over year to $199.2 million. Our model predicted the metric to be $162 million.

Green Dot Corporation Price, Consensus and EPS Surprise

Green Dot Corporation Price, Consensus and EPS Surprise
Green Dot Corporation Price, Consensus and EPS Surprise

Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote

Money Movement Services’ revenues declined 14.8% year over year to $32.1 million. We suggested the metric to be $57.9 million.

Key Metrics

Gross dollar volume rose 32.8% year over year to $24.8 billion. Purchase volume fell 16.8% from the prior-year level to $5.4 billion. GDOT ended the quarter with 3.67 million active accounts, down 15.2% year over year.

Operating Results

Adjusted EBITDA was $23.74 million, down 48% on a year-over-year basis. Adjusted EBITDA margin of 6.8% tumbled from the year-ago level of 13.5%.

Balance Sheet

Green Dot exited the quarter with an unrestricted cash and cash equivalent balance of $711.4 million compared with $661.5 million in the prior quarter. GDOT had no long-term debt. It generated $4.7 million of cash from operating activities in the quarter under review.

2023 Guidance

GDOT expects non-GAAP EPS in the range of $1.62-$1.69 (prior view: $1.80-$1.90). The midpoint of the guided range ($1.655) is below the current Zacks Consensus Estimate of $1.84.

Non-GAAP total operating revenues are now anticipated to be between $1.465 billion and $1.480 billion (prior view: $1.376 billion and $1.462 billion). The midpoint of the guided range ($1.4725 billion) is above the Zacks Consensus Estimate of $1.44 billion.

Adjusted EBITDA is projected in the range of $170 million and $175 million (prior view: $182-$188 million).

Zacks Rank

Green Dot currently carries a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots of Some Service Providers

The Interpublic Group of Companies, Inc. IPG posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.

IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.

Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.

Equifax Inc. EFX reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from a year ago.

EFX’s total revenues of $1.32 billion fell short of the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from a year ago on a reported basis and 6.5% on a local-currency basis.

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Interpublic Group of Companies, Inc. (The) (IPG) : Free Stock Analysis Report

Equifax, Inc. (EFX) : Free Stock Analysis Report

Green Dot Corporation (GDOT) : Free Stock Analysis Report

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