Green Dot (GDOT) Earnings Beat Estimates in Q2, Fall Y/Y
Green Dot Corporation GDOT reported better-than-expected second quarter 2020 results, with earnings and revenues beating the Zacks Consensus Estimate.
Adjusted earnings of 43 cents beat the consensus estimate by 38.7% but declined 52.2% year over year. Non-GAAP operating revenues of $300 million surpassed the consensus mark by 25.9% and increased 13% year over year.
Shares of the company have surged 84.8% in the past year compared with 9.1% growth of the industry it belongs to.
Segmental Revenues
The Account Services segment’s non-GAAP operating revenues came in at $241 million, up 16.8% from the year-ago quarter’s level. The upside can be attributed to growth in BaaS business. The Processing and Settlement Services segment’s non-GAAP operating revenues of $66.4 million increased marginally from the year-ago quarter’s levels, driven by 11% year-over-year increase in cash transfers.
Green Dot Corporation Price, Consensus and EPS Surprise
Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote
Key Metrics
Gross dollar volume climbed 50.8% year over year to $15.1 billion. Gross dollar volume from direct deposit sources increased 46.6% year over year to $10.6 million. Purchase volume also rose 31.1% from the prior-year quarter’s figure to $8.5 billion. The company ended the second quarter with 6.2 million active accounts (up 10.4% year over year) and 12.5 million cash transfers (up 11% year over year). The number of tax refunds processed was 1.9 million, down 24.6% year over year.
Operating Results
Adjusted EBITDA of $45.3 million fell 28.2% on a year-over-year basis. Adjusted EBITDA margin of 15.1% also slid from the year-ago quarter’s figure of 28.2%.
Balance Sheet
Green Dot exited the second quarter with cash, cash equivalents and restricted cash balance of $1.93 billion compared with the $1.56 billion witnessed at the end of the prior quarter. The company had no long-term debt.
The company generated $161.5 million of cash from operating activities and capex was $31.4 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
Equifax EFX reported second-quarter 2020 adjusted earnings of $1.60 per share, which beat the Zacks Consensus Estimate by 22.1% and increased 14.3% on a year-over-year basis.
IQVIA Holdings IQV reported second-quarter 2020 adjusted earnings per share of $1.18, which beat the consensus mark by 12.4% but fell 22.9% on a year-over-year basis.
Robert Half RHI reported second-quarter 2020 earnings of 41 cents per share beat the consensus mark by 17%, but fell 58% year over year.
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