Green Dot (GDOT) Stock Appreciates 7.7% on Q4 Earnings Beat

Zacks Equity Research

3 March 2023 at 7:47 am·3-min read

Green Dot Corporation GDOT reported strong fourth-quarter 2022 results, wherein both earnings and revenues beat the respective Zacks Consensus Estimate. The better-than-expected results appeared to have pleased investors as the stock has gained 7.7% since the earnings release on Feb 23.

Quarterly non-GAAP earnings of 34 cents per share beat the consensus estimate by 54.6% and increased 25.9% on a year-over-year basis. Non-GAAP operating revenues of $336.6 million beat the consensus mark by 5.1% and increased 1.8% year over year.

GDOT shares have declined 22.8% over the past year against the 0.7% growth of the industry it belongs to.

Green Dot Corporation Price

Green Dot Corporation price | Green Dot Corporation Quote

Segmental Revenues

The Consumer Services segment’s revenues came in at $141.3 million, down 12.1% from the year-ago quarter’s level. The B2B Services segment’s revenues of $158.8 million increased 30.3% year over year. Money Movement Services segment’s revenues were down 12.4% year over year to $33.1 million.

Key Metrics

Gross dollar volume increased 22.4% year over year to $20 billion. Purchase volume fell 10.9% from the prior-year quarter’s level to $6.3 billion. GDOT ended the quarter with 4.15 million active accounts, down 18.1% year over year.

Operating Results

Adjusted EBITDA of $35.4 million increased 3% on a year-over-year basis. Adjusted EBITDA margin of 10.5% was down from the year-ago quarter’s level of 10.7%.

Balance Sheet

Green Dot exited the quarter with an unrestricted cash and cash equivalents balance of $813.9 million compared with $813.2 million reported at the end of the prior quarter. GDOT had no long-term debt. It generated $25.6 million in cash from operating activities in the quarter.

2023 Guidance

GDOT expects non-GAAP EPS to be in the range of $1.77-$1.93, below the current Zacks Consensus Estimate of $2.07 per share.

GDOT anticipates non-GAAP total operating revenues to be between $1.376 billion and $1.462 billion. The midpoint ($1.419 billion) of the guided range is above the Zacks Consensus Estimate of $1.41 billion. The company’s expected range for adjusted EBITDA is $180-$190 million

Green Dot currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Recent Performance of Some Other Business Services Companies

Robert Half International Inc. RHI reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.

RHI’s quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.

Automatic Data Processing, Inc. ADP reported better-than-expected second-quarter fiscal 2023 results.

ADP’s adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter.

Booz Allen Hamilton Holding Corp. BAH reported impressive third-quarter fiscal 2023 results, wherein both earnings and revenues beat the respective Zacks Consensus Estimate. Quarterly adjusted earnings per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.

BAH’s total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.

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