GDOT - Earnings call transcript Q1 2018

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Operator

Good afternoon, and welcome to the Green Dot Corporation First Quarter 2018 Earnings Conference Call. All participants will be in listen only mode. [Operator Instructions] After today's presentation there will be an opportunity to ask question. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Dara Dierks, Green Dot Investor Relations. ahead. go Please

Dara Dierks

good XXXX and remainder On call, today's the Thank quarter afternoon, performance discuss first the and we'll year. you, everyone. thoughts of about

call Following questions. open remarks, the those we'll for

who haven't call this it For those webcast, of yet the that and at earnings found be accessed can accompanies release ir.greendot.com. you

and and including future Commission, Securities language our Please recent refer performance. most comments reminder, among additional in a and and concerning XX-K the earnings forward-looking from actual could statements, Form Dot's with filings materially other the Exchange information results cautionary in things, our As for include our the forward-looking differ release expectations Green regarding results XX-Q, statements. to the factors cause that to

to conform do During financial our the call, to accepted measures not we principles. accounting reference make generally that will

than the revenue a Quantitative information subject For today, basis. information reconciliations be about noted, Corporation of be this otherwise by on the is directly Dot will is differently unless non-GAAP sake we release. protection. press may non-GAAP copyright the all talk numbers other companies. clarity, similar the financial per content call The Information data Green card, presented to active non-GAAP including in today's financial property appears and GAAP of comparable to our of of calculated

like Now the call to turn I'd over to Steve.

Steve Streit

our revenue outlook. which performance our our an be financial QX quarterly and XXXX call. an XXXX Today, quarter overview results top earnings to outstanding provide update XXXX and we'll Plan, consecutive we've followed then the Dara, you, full Corporation's represents of how exceeded a to welcome, our and review will with Dot detailed Thank on where executing quarter, I'll year bottom another earnings expectations. of on Green our everyone, we're start and which line by in increase Mark's Six-Step

operating plan yield our at rate revenue XX%. long-term impressive over results. disciplined against differentiated XX% representing growth consolidated last to year's a growth continues strategic acceleration Total very and QX $XXX year-over-year platform million, an of model a Our came building execution rate, products of in

acquisition, representing UniRush Adjusted XX% the rate basis, quarter EBITDA on consolidated year-over-year February, revenue grew Excluding organic XX%. was growth lapped $XXX for a of year-over-year. which million the in

that EBITDA XXX points in margins adjusted our notice You'll year-over-year by quarter. basis compressed the

might year-over-year, additional million with the more As a margins Services segment we Account basis, totaling of for product active XXXX would the margin than newer that leverage expected associated $X.XX representing material double-digit than achieved call, impressive nearly sense more give growth Banking-as-a-Service program quarter, of large or and somewhat million or year-over-year the BaaS consolidated compress the for in fifth growth the of and we XX%. Banking-as-a-Service Having have $X.XX, came programs what's operating X we and EBITDA that grew product year-over-year, of the new those year in increased how the marks total that for Consolidated of our quarter which than that To we expansion non-GAAP our despite seventh growth. said periods that, lower than large-scale from programs programs. you lines Green X/X our own active annual by non-GAAP our expected in expand calling scale, consecutive points have year-over-year the in accounts record business margin a Dot, growth as the to basis result was upfront to shared happened, this is EPS more that investments, announced the full the better for and margins of on the of accounts in quarter non-GAAP you XXXX, of XX% of growth lower margins much given quarter that scale. were more last to from program, model. we our in those Much EPS active entire a branded as powerful accounts the expected our rate this the wins the burden posted a causing expect, contribution much branded consolidated established all year-over-year on revenue In a is composition all those established in on to materially future year in consolidated speaks QX an consecutive we last XXX came our But around new guidance growing in business. the launches EPS. new quarter, year is for programs or exactly lines part what X contribute growth over

our itself. and customers customers the Of of retaining than business, course, active of right in more attracting important of the actually is in kinds number and

shared not receive previously that than higher have direct has that a accounts do we deposit. direct Specifically, typically lifetime value a deposit customer meaningfully

through attract receiving direct flowing active deposit a shift Services towards our all proud billion the to record. QX accounts, long-term retain portfolio billion $X.X just various more the Account setting deposit, another up that XX% our as ongoing Account put to and with accounts which mix XXX,XXX $X products dollar up year who momentum XXXX, year-over-year, billion, direct QX prior XX% higher we customers over XXXX perspective, To that also Green to record that in than added by added over new now itself to setting being the GDV quarter year-over-year compared of the our GDV or for continuing XXX,XXX Services efforts GDV gross lifetime direct we're are by period, The new of $XX.X sourced company. deposit value accounts share QX deposit customers new Given in helped through in the was Dot number into XXXX. our more increased volume portfolio in we than push to number direct meaning

that our own illustrating percentage from established. came programs, that from branded having across tremendous programs, XX% we're product lines, success of and both established good various a Banking-as-a-Service new of growth majority the new growth our our or came While the

this acquisition of including TurboTax $XX million, XX% and revenue Services momentum, in XXXX. of to UniRush drove our positive launch of an million Account nearly increase by product, year-over-year QX over the increase our $XXX.X segment to the All

Our year-over-year. this began XX.X MoneyPak the is Processing of sold and version quarter Settlement stores X. a and units swipe of Services cash an segment when The transfers cards of primarily number record-setting cash that quarter, the increase cash at-the-register have transfers prepaid achieved also XX QX for retail XXXX MoneyPak of discontinuation we transfers quarter. at totaled million exceeded the consisting in reloads to to in million Interesting X% we first time note the results since

QX patiently achievement business with a that also in only is its rebuilt who and a but victory since our for members it's not result right, time this great own this So team in have Money sweet determination. great excellent skill Processing

industry synergistic a over diversification. when XXXX was the we expectation Looking late tax purchased our increased our called a product and achieve XXXX, tax X.XX at Green growth margin that of Recall the X% back mature while to million, refunds a in improvement mature for category improvement modest only total long in our year-over-year to compared a processing tax XXXX. QX division TPG and was it which period providing over the QX enhancing processed X% given term, the Dot business TPG, structure number to

XX. offered to growth and of disbursement strong our Settlement deliver to So for segment representing the season fewer consecutive later solution SimplyPaid in These processed X%. growth March XXXX number very a year-over-year two have annual million other equating tax would a our to transfers is due and cash to in very the Processing and we're the especially lines, products, like, light example, year, our segment which comp growth overall in the start gratifying, tax hindered the year-over-year rate of we achieving of growth product and e-cash $X.X tax revenue refund $XXX to with being services period, cash processing, to along million and of combined of products refunds this PayPal expect prior through worker

I'd your performing against to team objectives. updates update by some year's so Six-Step status followed Plan recent like management share this you stated our is how of see Now business a can

Banking-as-a-Service side our of shop. the review let's First,

add BaaS year, increasingly that over material our this course, Dot Of Apple Cash robust which our an Pay we also programs uses Green profits. of out added they program, powered revenue the rolled list of and enterprise-sized a in amount QX to aware and material in will platform time scale, of as already platform you're in Q, And of XXXX. believe QX the

and good new a Intuit's start the is example, TurboTax operational technical by TurboCard and with to a For off very strong customer launch. adoption offered seamless

advantage, bank, competitive technology, Intuit with worked across our at in awesome off TurboCard the mission-critical example and QX, so to nice was a partner expect diligently partnership which domain such program a QX successful who offering. platform will Hats excellent well. as product, create be relations to so Dot growth The is expertise Intuit in with year-over-year material a scalable to teams we many Dot Green an our offers revenue Green contributor business operating development, and divisions. partners the of our contributor government Our

free serve bank rewards immediately new their biz purchases and greatly or them technology, partner opportunity GoBank. Next, all new dev, and better cash Dot, achievement innovative account account fare Pay offers is driver's for deposited kind features. after to card retailers, and Dot a It's at Uber great ago, powered our for operations Rewards teams. appreciate just so a and another the other Green Green is Instant back new great Debit the by we help drivers, their completed bank, business month small the a select launched Uber of to that products

of customer bank current their financial a to is that million base new and will services X Similar its showing Stash with account specially with services and kind Green Americans. leading features market platform the a designed base. Lastly millions of Dot personal tremendous for believe We to Stash rapidly. Banking-as-a-Service to growing in Dot investment over pleased reported ultimately saving launch is user revolutionize partners, note, welcome and seeks other traction of for Green of Stash,

We technology their banking partner to are important and this be proud for initiative.

the all On fronts. gain nearly Green Dot traction of side to on shop, branded continues our

nearly & legacy these as XXX welcome of family all services Dot years, the continues Green add our after to Ahold, First, and retail Dot new distributors. we Shop Giant Green Stop and distribution locations for products to

use distribution our renewed their also agreement ePay locations, X,XXX you through pleased deposit with retail we've Processing know can cash product their account. cell securely where consumers Store to to Casey's send PayPal PayPal let locations. We General and Money to our began Worldwide phones offering a their barcode we cash Euronet And we're to

Albertson stores has Green facings Additionally, other for product defunct earned Green occupied products Dot the formerly locations line. services new Safeway where and space X,XXX shelf occupies by incremental prepaid more at now its Express and Dot now American than

largest placement Green rolling Lastly, The services continues Dot month new highest-volume this world's is earn and for facings Neighborhood we to at Walmart and appreciate more Walmart and very shelf new at Market support continues its supercenter perform Walmart are stores partnership adding out which lanes, many retailer, next. where Green check well, X of more Cashback to years MoneyCard their the account Dot Division team. so stores, Walmart and from greatly the

accounts. unit let Plan, our year-over-year growth. active economics grow and to ongoing the our to performing those for Six-Step to improve X we're Step Now of how map was of accounts me XXXX number review the continue against road

As you accounts new on by nearly active a know XXX,XXX we X the the while accounts this in million direct increasing ahead are record-breaking having on of from goal, receiving deposit added year-over-year basis. results QX, number well

mobile debuted on-demand, the you quarter, that On our may A easily mobile-centric, value bank accounts XX/X illustrates ads cards, low-fee well television pay with to account our accounts. being whether for basis. topic, obtain our on we new Dot Dot that stores seen research have that period. who could of store branded kind in in quite products, a millennials for in app X number record and to Walmart checking online, number favorite or our add you of stores That Step We new bank a via a that more growth a really continued MTVX the to more very retail new Green Dot our a bank MTV, Green that case mobile XX% year in our statistic appealing retail business more The is is majority but MoneyPak our now opening QX Visa payroll over with compelling the card of of account, this and and belief and a than for positive, to are would the our good forward debit new our to X.X large, showing are by promoting cards as Services year a only selling results on other prior X% apps in our products and a Our launch increase that XX- Comedy Central, portfolio VHX be products, early Uber the Green of up Dot Cashback specifics convenience account Green sharing third-party rollout. account. XX-year-olds be rapid supporting once kind later case point total addressable to MoneyPak. market broader increase our becoming significant use this QX, opportunity did have is million we new we showing and customers, is or app in we increasingly not interested new new active look division. small this the continue of new a announce in new Account for growing pilot seem believe just products account a commissioned use of the downloaded traction, to

so far, good. So

our out it team stores, the at the X-Eleven park of hitting On sale is recently side, on with most MoneyPak retail stores. distribution most sales XX,XXX adding now retail

their future product back. the line about the strong to for transfer X fair think that for results to MoneyPak queue, prudently cash is say I Given continuing it's Step is growth. invest in

helping quarter, for consistent more revenue investing in internal over new the sales program disbursement need the we to features strong to growth are we've those expect for margins Apple, investments absorb performance platform the will going approach platform in today's UniRush; decision in we're channels, back incremental many very come. been embraced engine; along today. Uber the the is we products The it and Banking-as-a-Service resulting reinvest credit year-over-year Altogether, on to $XX lower have growth rolled a high-potential drive tradeoff Intuit, some that to therefore, Absorbing card is, to all near-term from positions out time. incremental There made to from part we growth million associated so into soon, Prize is exciting product to several that the make like years. Dot acquiring an we into of X% new knowing the out scale, of us believe new helping technologies, the investments investments our the SG&A Green Green the growth tomorrow. for people, propel for at developing course, powers help Debit that of has Stash; quarters programs on creating controls past generally see time new can and to in have in make we And with investing new and infrastructure today you our to Cashback of As SimplyPaid successful and the and fuel secured Walmart and achieve we philosophical handle the recent than expenses when and profits a many tomorrow. product; Savings initiatives programs building now a new take Dot growth card some essential us, and

offset product our result it's achieved materially discussed that lower the noting our new us product established this is in programs margins We new expanded lines material the on generated margins. materially the below in QX, our on example, dynamic amount since having actually large-scale lines. margin compression year-over-year again QX margins but net by being our of drove of revenue established product actually call, several well fourth margins new had worth quarter For a on

This As of operating we invest growth also for growth growth. make, in made, expansion Mark the his initiatives new ability the guidance are year even of margin will raising margin four of That efficiencies initiatives into our while XXXX call, revenue still intended and Step margins while is, operating full continue in Step amounts profitability drive increasing to tomorrow. still future part generating and so will section drive part to us to we expand room our three to works and model. for invest growth consolidated of while for platform platform is investments compelling in significant is share a reaffirming very in across considering expansion products continuing sustainable to year-over-year year-over-year well. we've money believe, expectations consolidated when order successfully our giving and why to

and just still for anticipating of expansion speak, meat of as operating improvements flexible terms continue across so the enhance to believe forward. achieve margins reasons, deployment going these year-over-year can that We on smart capital margin discussed, good we the shareholder of and for we're and lot we Steps five value in six feel help there's opportunities full enterprise the declined the transformational for a about QX year. to goals time. process to us are margin bone, over efficiencies While

will we scaling near platform cash term multiple program large significant a our launches, when remain continue of we take approach use on best successfully the thoughtful flow. long-term considering to While focused

outlook, regulatory that course, will activity, if of be Mark provide when develops. shortly, such an to share and buyback opportunity raised assume M&A which, does Our not or approval would subject any

hand Mark CFO now members his leadership for that, we we report. thank build across with as for the to Mark? are call are entire outcomes business. to the the we and the investors the thanks our our by business. corporate longer-term executing as team and and the And the on our the Six-Step thrilled summary, Plan, your and how right just both Shifke Philippines. continue partnership momentum team Dot Q And on of with My I'll their strategies over in our So Green achieving continuing China results we evidenced U.S., XXXX to in the

Mark Shifke

Steve's our strong our plus year-over-year growth deliver divisions echo also combined Total consolidated again by rate comments, revenue to $XXX of represented million better-than-expected bank To XX%. strong, accelerating of Steve. quarter XX%. momentum very the six was excluding a Thanks, UniRush results. once Growth the in revenue operating in

we reported generated starting interest As operating consolidated a Dot income. the have GAAP a revenues, total other in we that present Green said income revisions: intend make reminder, call, the customer for operating intend companies of to reporting, generated interest investment net Bank income, of first, on quarter's with from is income interest last below following banking net as to GAAP we the is deposits at which outside component consistent net we line along with other more how bank. Historically, item which report of that XXXX,

Second, partner, in certain an report Dot, not partner smooth to new GAAP programs, and provide and a present where total that using transition, we controls associated in costs customer and to with margins, the transparency processing intend our economic current non-GAAP GAAP figure measures. BaaS certain results into XXXX, revenue will effort our by revenue we related order In provide Green more a guide and presentation commissions always have, we reduces as acquisition. to operating non-GAAP

that non-GAAP $XX.X Green total And the associated quarter. $XXX.X new also reporting programs, was the operating growth generated under certain acquisition, quarter presentation the customer at what Dot, BaaS $X.X XXXX, held of supplemental said, under would customer account partner, would the from million reflecting consolidated year-over-year commissions processing-related like our where mean and of was results being bank million during of would that look shows revenues. with provide not our revenue income the We XX%. That will interest certain and That million. be costs in presentation new balances controls first partner

Account $XXX.X delivered our Plan. This moving on of executing is growth revenue of divisions. year-over-year Six-Step the Services XX%. result QX million, to direct financial representing our performance on segment Now The of record

XX% to we approximately accounts. active million First, accounts increased active total year-over-year X

the account deposit funds our X/X mix the now direct deposit the substantially, Within receiving noted, all received active in direct that active such of portfolio, as quarter. grew of customers of accounts Steve approximately

deposit. GDV from XX% all direct through products of Services flowing our fact, In Account came

quarter revenue generated was interest than interchange and trend only not GDV $X.X $XX.X with drove a fee average volume the and segments in to in our in XX% we in All contribution active year-over-year told, bank our services before we more of GDV started Both accounts, Second, we products we increasing GDV customers but base. the to X card a since through ever and has growth I net which source the a quarter, of noted generated finally, attracted the reporting And by flowing as revenue. highly XX% record XXXX, unit increase. increased purchase relevance believe per the customer up every by billion evidenced engaged meaningful the billion illustrates year-over-year more better income earlier. economics, also approximately engaged of

in equating segment revenue generating Services Settlement and for in drivers. revenue, by strong results a underlying driven increase. growth The X% Processing record-setting $XXX quarter, was Our also year-over-year healthy achieved the to the approximately million revenue

were X%. segments XX% new $XXX the adjusted combined EBITDA a generated cash adjusted revenue revenue The in number example, of to For for The tax X% transfers the million transfers. but XX% increased Growth refunds up BaaS to the to part while of was EBITDA. improved year-over-year transfer MoneyPak due less of contributor number the year-over-year. healthy transaction in processed cash operating we increase so programs quarter, from year-over-year in earned up

models some As staff we center home is have new calls, and to fulfillment onboarding in contribution The the shared as card the and that established are like margins cost and programs is new well run mail below fixed and to chain costs variable and new program call customer's and usage a a customer, have manage new manufacture register that are subscription historically initial supply than cost to a the reason product on our Dot like lines. at the of program overall typical would in new far than prior six-month-old costs, be front-loaded to start the accounts of of customers learn which few Green active These they a as initially account greater that new a use program as matures expenses experiences of diminish customers margin product. the account. why a that typically a new XX-day-old the new say, active individual are as contribution higher age. with percentage That's established revenue account, examples and life, to

As like cash such, our transfers from as QX the well Intuit Green program. tax material processing, effect Walmart card achieved refund TurboTax margin of the rapid points and Green and like the quarter result expected, card strong growth from EBITDA Dot the Dot and high-margin adjusted below in in product adjusted and tax revenue as disbursement same net Secured established dollars which basis year. the growth programs was adjusted TaxHawk a by margin SimplyPaid revenue period both programs, credit program, offset, growth expansion lower-margin new Platinum and we was last in a programs, Cash absolute GoBank-branded EBITDA XXX as the the programs Apple The EBITDA revenue despite lines Pay margins was

year course, associated our XXX Of approximately accounts improve adjusted continue clear consolidated EBITDA in full as quite margin exhibit in age, issued expansion mature. lines assumes QX of steady from while basis new the which margin as bit. strong improvements as to they active margin is This margins points accounts we guidance, a product active show expect expansion the to QX existing

came higher in our first are investments income EPS Given year-over-year. adjusted bank our from outperformance our cash half effective Non-GAAP basis EBITDA EBITDA, lower indicates share, this per and the points implied expand better-than-expected non-GAAP expected year-over-year. XX% achieved held at expected materially rate on guidance to second of half approximately by tax EBITDA at from $X.XX up subsidiary. margin, XXX our We a a on interest primarily flow-through EPS combination margins

result Dot share is bank's year-over-year the interest balance our sheet. interest EPS and count embed in the depreciation. compared rate 'XX in the higher considering equity not rate year-over-year attributable year-over-year $X.XX. net on to cash $XX guidance, a once Absent in of tax to again increases an modestly sheet. tailwind rate grown both with of do a part apples-to-apples our benefit to we is lower quarter nearly benefit rate While non-GAAP Green during XX% asset-sensitive tax a would exited year flow cash attributable $XX our increase strong period, from income, This We effective a tax rate, from impact environment quarter. relative of rising balance The unencumbered a change of million prior in dilutive awards the is the with this EPS QX million our the to excellent operations in on generated QX have effective basis.

XXXX for to our QX. updated guidance turning guidance directional Now for and

We million are of between raising for QX guidance be growth $XXX the $XX.X to original and our now to the range million billion, revenue year-over-year year increase consideration billion and $X.XXX in full expecting midpoint $X.XXX full operating are at overperformance $XXX our to of of guidance our range to revenue and equating in XX% million. the XX% of year a from

between full year a EBITDA of year-over-year $X.XX. between EPS XX% and We are our and midpoint, growth $XXX adjusted XX% is range range expecting original up original adjusted EBITDA to equating And expansion basis at is which guidance now margin $X to up be and in a range XX% points we of approximately our guidance our non-GAAP of million of the million, XXX $X.XX from to to equating $XXX from to year-over-year to per share, $X.XX $XXX of million which to in expect also million. XX%, growth $XXX be to of range of

$XX XX.X rate diluted previously of shares; previously forecast million; EPS $XX and non-GAAP million. shares, share and $X.X amortization assumes million, XX.X of interest of million, $XX.X count income previously fully Our net of approximately XX%; depreciation a million a million tax

for our QX. about talk let's Now expectations

our higher. margin. estimating approximately approximate margin full see lines adjusted in raise, of our revenue our on an $XXX We don't non-GAAP growth offset outlook, are year EBITDA adjusted EBITDA revised rate This from XX% the accounts though discussed even in we recognize revenue deliver as by and established product materially previously. adjusted clearly deliver is to implies year to approximately million actual while $XX revenue EPS. $X.XX consolidated from That second a for EBITDA a revenue QX million be material forthcoming. a implying growth fact, in in an half We that that in expanding to product expected new to imply slowdown has, lines, the margins around lower-margin We been million, intend only approximate X% $XX

as both our likelihood fact, strong upbeat In Steve of mentioned and continued the I feel remarks, in about momentum. we

quarters strong results a prudent robust there some programs to I was in with recognition have of the to high ask given to that like questions. three a phone With remaining QX, that to by the raise would level confidence the provide in we our And degree felt new and forecast, in open that, balanced it we that the have risk various guidance is for achieving, the of always in Operator? we year. operator

Operator

The first Ramsey question comes El-Assal Instructions] with [Operator from Jefferies.

Damian Wille

It's the expect should ask Ramsey. add just just rest can muted the it -- full expansion going or you for to what I actually on adjusted year, what continue to us expansion year to can that you're expect clients? the help to forward the of margin the EBITDA scale margins. we new platform to Damian that margin but dilutive if margin kind so wondering the should as on of we Banking-as-a-Service expect guiding you isn't I'm know we to so relatively for on be timing through just think and wanted for guidance. I of

Mark Shifke

great a That's question.

from half being programs. from a In operating today than expecting are the assuming newer So a of the as have to we relatively expansion, the we're margin seeing back revenue I same leverage being the see more see weighted mix what we're contribution in the the revenue the margin margin more year, we is toward from expecting little the half we've first year back was said compression programs. half established of have mainly think year, during our our this our well of it And we as half. lower first percentage SG&A bit in programs newer to of

in year of the margin of So back expansion; bit compression. a the general, half margin first of half year,

Steve Streit

the depends But year, program did which of a to did have through scale, of in impact really had the folks. characteristics. Walmart quite the Remember, TurboTax channel the of all the you tax point a pro-tax and QX, new the this well with programs. lot And question general, TPG on programs we especially it TaxHawk. program, when the the revenue MoneyCard in We tax program

you don't the really so you all so have have And these -- revenue.

happens the better now start and that the and out of cost; cost thing, card, identification to the the is call issuing; to homes. All that kind it supply that tends cards and CIP, is tax money and cost have cost; the cards; the doesn't people out chain refunds of revenue until the center get You customer people's over hit of those onboarding play which sending the so time. spending a

it'll period, the plastics as to question compressive up, plan you and in in we we catch the okay year. to expand will, are so when many the money course So hope, new time to you're margins have reaction, this the you issue But no scale have and is to guys. expected going takes normal that hopefully it something and we again moderately they expand for which signaled and year-over-year

Damian Wille

that. term, I longer of the year business to those core there you or improvement card. seems lines the It card fundamentals? kind heading on is on GDV a maybe factors do of wanted mean, ask to active call to maybe wanted seemed there's kind there just onetime XX% just north, active rate. about to for that. pop GDV if I Are trending keep an follow-up, see per up along of kind per out I ceiling a It coming your think how And the that of quarter, then, overall then to the the just remainder as growth implied any for and expectations in this And Great. and

Steve Streit

fabulously my cards, remarks, we to big the $X,XXX obviously Yes. in had from that, it refund GDV boost a think prepared from, It out all well give I is that sense had turned tax or it, anywhere right, I $X,XXX, average in take. the call an actually just because tax

programs. only the mentioned XX-plus in established product was those from remarks, not in that's XX% new funded. fund issued the a lot I quarter actually the those think, from but But QX. is hit was be big the to them I from so And will as line. of percent, in GDV XX%, quarter GDV extent prepared until the cards A number the about our the have growth script, of of

Green important. and launched. from fabulous MasterCards cards GDV, you in But good other classic growth well we've which extremely always and the So this and Visa continues GoBank, old just yes and from is programs, Dot the see to new programs MoneyCards Walmart which the do fashioned all

So it's pretty broad-based. from from the third new About growth a our lines. product third of about that GDV tax programs, established two

is the have of for being a consumer think if historically, or where checking a course. be have of regular typical full-service story. account theoretical a what success ceiling? A cards When B and like there's you'd really Chase So been a to have a American there average about grow. you But of lot ceiling, room think Gosh, prepaid of we will a or somewhere one you

so year-over-year as I grown frankly, or year as of a think several even quarters, long GDV a has we're it. though up we've every years for and tracked And row tremendously in lot

to think come I call way maxed have we you'd we anywhere still out. go a before long near what

Mark Shifke

is same mean, portfolio. seeing see growth point, I trend should increase as the direct an that deposit Yes. in what that you're we active. in to in GDV penetration per And continues, continuing further

Operator

next with SunTrust. Jeffrey question Please Andrew comes ahead. from The go

Andrew Jeffrey

about can Cash? Uber platform first programs just to guess, about opposed you Is talk as Steve, to of the and the they've or I new tax that clarify. being all programs Pay to materially thing, Apple way driven, or interpret extent When the growth we say materially it? the right think that as the the

Steve Streit

kind sort of, Well, of.

imagine, feeling kind can a had as that only you of apart I we guidance So because would give all, this individual you break programs question. get you we we can't, for can but

that from the that with in of the So But UniRush Apple you growth some BaaS you things tax the which has the about Uber QX, was growth but lapped the which new of the X/X growth thirds, our and in if being from X/X March. from that X/X would if until think in will; legacy from other had Banking-as-a-Service programs, there. business, not and that is has of programs. and also is programs, of X/X of think include programs, growth Cash acquisition, established the programs Pay X months

the well. X/X X/X broad-based as acquisition and this So growth it Andrew, old enjoying X/X, it's case, shows products we're really products, and you, and again, in quarter in the from and new this

Andrew Jeffrey

that that does of cards true well the And hold about X/X active for as UniRush? growth was

Steve Streit

so let Well, think. me

use? this isn't the I think statistic. stat. million disaggregated to Green had year-over-year. I programs On and on, way hold tell think Dot, can can Okay, some me million remarks? growth answer which you some That's break we that is not remind about old-fashioned help me, a is more million and new on, that we? good X.X So it I dangerous aren't that Jess, a the half cards deal. really didn't a the -- of disclose? actually said a don't from the script, of things active disclose from came I positive it's something that me we cards think right, We what any know in I We I normally accounts can great what did that's this this in well, anyhow, quarter, that of X say let's apart let You're me just you? prepared going active of are. this. probably lot make that the the -- numbers The What came because it's too number. X in about from internal hold but accounts way, is About fabulous is can big again

Andrew Jeffrey

With your MoneyPak What's in case? focus And products. changes say. for that just the way the trying using direct deposit value to then I'm us what you you prop? on demographics in all is? traditional use prop and to who's your understand the back, and mobile just hear Can in cards, and MoneyPak? as describe the from the is use good briefly changes What's value the -- the the distinct GPR way folks changes

Steve Streit

you if, I don't Yes, is, put on you that as one need think know, a on slip that's don't have you what swipe card made I in money And well, the gets to and it's slip. slip. whether card Network, anyone card-based case. your to as Network, XXX card prepaid of card. card. or MoneyPak wanted and card That's MoneyPak programs and or Andrew, Dot had product that XXX But Well, that the a of Green you you is out Green easiest the white the Dot a then MoneyPak it's have, and it's we to And reload is card, go do or can card, the do. point paper. card what a the a a cardboard the on you network, deposit you program. your of if sale maybe party instead you the over our to Green way put of But when use our a it, it's on swipe the deposit the at now to put money third deposit the except on Dot money a allows on and

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another example. So that's

We bills PayPal other also and pay use certain kinds and of MoneyPak sources. to for

pay MoneyPak. buy a reason it's -- So credit card is why another bill people

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be cases, probably guess. still biggest would my that's the So use

Andrew Jeffrey

sales a follow-up that. the you're new and or as me transfers for just cash particular, on seeing then more function of last one Is a in growth in MoneyPak, partners? Okay. distribution And same-store one

Steve Streit

then, month-over-month, new growing expanding nicer from It's retailers as of the course, well where growth add get as been. well. we there retailers, And It's you it's year-over-year. in both. And see you growth

Operator

with from question next comes Schmidt Andrew Citi. The

Andrew Schmidt

commentary tax I imply that In then. I from guess, guess, a some related the out a in you for the revenue what had tax does second play relative How season, prepared did And to perspective? remarks. that just question expectations? your quarter,

Steve Streit

be it the me So to answer let I great stat. a be is think could because want every this accurate. -- just about

so. we below product I KPI Was any was every expectation. don't line think, KPI expectation? that I think was there above and tracked Mark,

Mark Shifke

is that No, on results. timing actual I think in the we're of tax coming just anticipated season the we outperforming as and

Steve Streit

well. went that So

So and the good revenue reason, a stub drove half, period answer if more the mean the government deposits the because -- because protect on, is those tax for but IRS, giving tax their will the you do the file -- season, I which work fraud. second way with say not their while the Well, government QX should money to a another expectation, part more quarter is to from the a in for went And Green people slowly is season be for then getting beat. that protect thoughtfully tax EBITDA big from other beat a good tend delayed of half, good tax fraud is sooner has Dot for refund beyond does everything QX. And what but get we and reason, and how we and the taxes IRS. question

good things. the year as filers make that and last to so refund filers enacted, Act PATH P-A-T-H, know, so they're can And delays other some which sure may we deposits Act, PATH you was

to we'll see how refund that And and and money does. that slip from spend to read previous years. better can't of would give revenue so money forth generates that it'll and QX, But and into than that extent in usage QX. do have then you some have So We tax we ATM early will would expect, it in an the on revenue that quarter. the there's

Andrew Schmidt

relative the terms on anything in helps. then, margin. guess, the just in there to the the newer contribution just investments lower shift at Just I the programs curious quarter, a And in there's plan? That that Is incremental mix that if of versus second Understood. towards you're incremental anything there come initial making EBITDA margin.

Steve Streit

take to want you that? Mark,

Mark Shifke

it's the Yes, much we what really consistent with mix shift it's to pretty around were expecting see and in QX.

Andrew Schmidt

you adoption And last the then, question, just BXC out seems I it. of platform, a void it rolling in strategic. It with to more the The one BXB, just I And guess, terms that compelling. SimplyPaid from so about Can Got fills the perspective. payments businesses? the pretty far guess, just of product. talk experience strategy your

Steve Streit

a So in when the what revenue Brett adoption actually about a great -- fellow sales B. division longer than named A And would you by a sales makes I And Brett how Type That's it's think headed and is Brett me division look we Type have he sales cycle, about Narlinger. wonderful love frankly, is. cycle, I Brett a want.

adoption think along. opportunities If on there. with it will working in a want for sales beefy year-over-year we takes it's would done as We're Brett's with something the lot roll and a massively as to fabulous. a SimplyPaid. it saying come us. out we're big, you like pipeline get client volume up and pipeline. I so very, because is we more longer because nice activity have but But his large, it that very well a very long It's big only And me, ultimately a that's a But client general rule, to But fabulous pitch, maybe. know cycle you small team as

from if delay it or no, like I low-income do I money was view, faster. -- week, Buffett. want I and meeting that. well, consumer's sooner of it it don't money -- adoption out, point sooner end was in their faster? said, question point point funny the Who or once their And the or another likes Now the people funny tremendous. the in for their of view no, I the care you're Warren everyone think meeting is rolls would view a like, of users' a I the like Steve, worker's where money it, where keep

getting get So for. just far wages sign quicker the your very you'd is than for simply proposition worker normally instantly the proposition or And of easy compelling. it's up a to very

it very tremendous it's you work it. [Indiscernible] adoption any goes enterprise once So lot and and of like into a that, level But received. is well integration there's has sale, that

Andrew Schmidt

And year. card growth then, question. my the Organic last I guess, for

the just year? just to start the is guess, or have terms one-and-done strong that's converting active And converting customers? year. Because of thoughts card tax -- guess the traditional the at around for deposit changed to for in function I your growth I -- be efforts I that expectations direct around to that, active of active the of an year, correlated function -- customers will of all Given sort thinking a know

Steve Streit

think in feel be the certainly we expect good about active I memory, I And be. guidance growth to is mid-single gave from card is at certainly just call quarter achieving wrong So last could we'd -- we this we'll least -- that digits -- what that.

are to in app, for the good the out heavily use want just of had prepared have good account has think that. many like our as million they downloads why And most features QX early just that's to But which we'll retain we was remarks, sure see a that customers that. We It's know it as too for The how been and don't disbursement those app in goes. accounts an make mobile more indications they're downloaded, that. a Now not -- that and do ago that and make me X.X can, company that bank that adopt say four the years than customers, mobile don't app-based heard of for the that early. we yet. account we have is, and depositors how question that of tax I mobile you are bank product we all

pretty impressive numbers. So

a no folks and use no overdraft that more more. mobile the that's ATM And easy the there's account really Gosh, say, and more the use to how people use checks fees fees. so and this we check use and bounced continue app and active hope this I'll is And to base. the build and actually networks deposit account our is

What you portfolio but hopes means for you will, So numerically, that an business at tool, we us. tax I think acquisition the some as good can't tell for generate we have point, this will good customers if it.

Operator

next Napoli Blair. question Bob comes from with The William

Bob Napoli

driving the on the I -- you what type just remember tied is number -- it TurboTax don't programs or hearing jumped the that a mobile to that? that I which Just are out out at mobile. for number of me. -- program Intuit there -- Are apps, a the or certain of

Steve Streit

It's Walmart you to track because Yes, Green X% it's mobile the Uber, MoneyCard back. your Visa. broad-based. need Cash cash the Dot It's app it's Back

even get learn the we're are it the -- call I because you a Store, sense download TV you register operator you App for employer consumers or if commercial you're And gives TaxHawk, change search it TurboTax if of how go you of But lucky, app. -- app Maybe be. what we're your doing Rapid! whatever transformational pull It's start an call that to it Dot center, of you didn't want now, anticipate. to get the it you because you Green whatever you Visa, part the on and card you needs Here instinctively the might with Pay it, the the part sometimes seeing do you our it just call opposed you for the the But change a thing. to from just as or it. kind X% on get calling or you people the see things customer it works. used your the evolutionary what And you the the might consumers to mobile we're world or in the driving and from and website be, card. card, be, service that you company,

it of make advantage the incite But is of products features which that point, want, part work customers the data why of to take trying offer. it's and sign we or is, behavior illustrative kinds sure those we in is to the included are prepared engaged and to evolution. it's need So great a are more it remarks a just of easily because it way. Part in have product likely that that you our great to the in yes, that the I we're

Bob Napoli

I few obviously, -- you some competitively? Great. changed competitor? Cash Are bit new I last years pointed out mean, have a noticing you Amex. guess, are over quite seeing the with landscape's Square you anything you a as the as

Steve Streit

landscape of Yes. No, side in of the would Green of it's accounts, while Dot, look, particular. customers grown million very, we card Chase a not you if for something be on that But Wells Fargo or nature. about have the very a the think or nicely, no bank Bank business, and America of active match still a X or

that extent to market. but pressure very, market, on not a And extent it's And Green feels very new larger competitors so I'm to the Dot big the the sure the have banks some would. you

like customers is net offerings we and game. competitive world see a you can seeing any And that more digital pressure, the more the zero-sum we're robust. there's see growth don't as So and the because not pretty fact

become family a and certain more just has and makes it aware this. takes member and feel your category and just mainstream. another it products has this the You friend product more of that friend And has

pressure those, digitally to But I a But not Dot, of account. at the extent there bank market as of general. good acquired, they're feeling nothing we kind there's out if So the any stage. advertising, would disruptive, this think the king concern we're from competitive answer no, the Green that's this drum could think, be we in-the-flow to in the of people and beating for and and is point

Bob Napoli

The last question.

have lot guys a generate cash. You of continued to

M&A or And M&A, outlook. stock? will M&A in would you aggressively on are to if type opportunities? things But look your back at don't You don't you of add? do looking you plan have buybacks how any buying What you

Steve Streit

and the and the don't have to we'll a in the different so the money capital, bank reserve that meetings accrue about meet debt cash advance? on talk of have about we of Should right I board have should of now and everything pay answer grows? things certain the We deposits. for the we from balance in of as relative keep talk to we to is Well, capital and down in Mark lot ton offset deployment bank we and history, it more the our we amount sheet although And year. right nature, a a throughout

look a can you think from We talk any them. I thing, M&A. at about calls, those, it's So don't lot bankers. We Mark Bob. get of one we imagine, as fields

the we've $XXX of look buybacks further. our relative lot in not X seek out we there's on least exciting, dismiss lot you acquisitions, cup job, our we to between I just more a a of think million investigate UniRush about a Others, think, immediate of and fair maybe a value we've years. hand, those And of tea. world, the share our saw at Some deployed integrations and And X.X, done and very we size. really the something to and it's take say really deeper to made getting we lot That's out you'll to past in engage. good go. good But and acquisitions cash if a of

it stockpile may let's more cash. So or to take some we that breather, conservative just my be nature Mark's nature and want a

We have programs a of growing. lot that are

you have the many them lot of kind can best new of a have. organic, We initiatives,

continue would to think ways dramatic. don't time that not I time, the it deploy anything like capital. And look But we're soon so we'll over or I anything at for against and right to any look

Operator

Berning The next Craig-Hallum. Brad question with comes from

Brad Berning

cost pushing kind accounts? doing? And from business you're on that just automated is talk could you overall to further want getting for the said Is maybe cost can kind the the a know downloads Are up of you that those of of if now are you're impacting mix for about initiatives. an about you doing follow and that downloads, something you that can acquisition that's bit people -- getting expense automatically of I accounts I that little standpoint? more talk app acquisitions how that to of

Steve Streit

lots in go something them, hate don't, of for get use price answer Right. get see can them do any or and do or, free. or or of in download value change like promotions. they into used the or people to And do and for that any to pay it. of get them shaving product the that different account. reasons mind is this just we later. But off discounts Either don't. days. free kind matter, kind they We get isn't incentives don't if to old don't marketing we their price anything even going off or to Well, like prizes or the app for $X.XX financial to we people to don't the I We the or

we on focus it. the So value of

It's in just the market natural don't way. we behavior. app so And a that

a And been is that the they mobile can the we on it's some center. self-service Then they're lot their have more register per for of can savings operator the follow-up or a to an somebody work effect. we in minute it's on a that at pay or registration and does not same cost a expensive call of lot of not us lot heavy website so the which regard, because the amount in money have that have generating -- calling account to extent website, the app,

efficient. there of you to made kiosk." days, to here Southwest our long people. go modern more making we transition have and been But terms in helped it's need and don't talk chat empire we efficient to to that's of more an do to who overall new become service to service way things want kinds with but us me tools as continue a to all from the old employees So evolving to "Oh, and customer open my X customers want even answer were airline. viewed in ticket used make a and behind the get counter, check is, automation Now go the cheap cheap. don't be may the Burbank you "No." they're people at They airport. eye In contact. the just There You at that

way, automated business. You like conduct the just that go to better for worse, for right their people or modern attendant. the to It's

So per continue want habitually company, that of tools. any to kind consumers that a just make or cost and the us best have and base, drive as using all real the do has more we to app, automated pay for don't we fact people or but cost we'll the sure acquisition whether we been just will with And the are other incentives for just advantage it. it, certainly our hope we behave

Brad Berning

to kind And revenues. the And is the seasonality of of despite this you're the in expansion the correlated second about. some follow-up of margin talking this half the that just

of kind off going margins that we off revenues forward? and as have standpoint, about place base? a businesses, to cetera. But chunky build building there half should base to just is to think the core seasonality second should kind Obviously, core from the from? investment continuing there's over of that go like [indiscernible] think as periods we're time? should et of we about that be Or of that new build impact go to Or of So we going

Steve Streit

so about platform, issue, mix or I'd revenue a really good it's be bad. it's careful Well, a thinking

So plus has we mix divisions XX bank. company, in quarter over X its our unique every of revenue. have Remember, the products

would example, or other very on like the interest our at income bank, revenue legacy very, be almost for high-margin, kinds of all are accounts. margin, Some

who six, To direct those accounts. seven deposits, they're high have years. margin five, have very, here We the customers very on been are extent

We a have issue. sort of mix

a we that have front. It's you coming into as did is new in up whole company of all the If front. all lot one up QX in loaded customers period, cost

almost Then So cost, that'll they a as revenue. you no all bit better. little have age, get

a continue margins I mix our underlying of grow product think it's really, lines really established really question to and revenue the on well. So

points that have mix think just to to what other already about in not you revenue second basis do say, in is more because that lines the second point And mathematically doing you season. year. established half, lines there?" much get gosh, basis We product we're XXX product we're in established you the year-over-year, tax year -- do already. Well, on "Well, lower half of the and what much compared half it's is lines, implied product second If of it's new this of second to half expansion words, last have

the really up of and as you those it's programs how you new go. sign nature So

the take, company's generally to a XXX we the think year, have equal, I where we been this so you and And basis are. points about that's expansion margin being extent XXX if expanding or all things

again will I that's year. way way be And explained Is probably that? a to I the it. helpful, think this better of think We that

Bradley Berning

on of And your it's give actually. on secured then that expectations going and Yes, the can the you card, update an status helpful very forward?

Steve Streit

have definition, We going very base, well. our A because card products. don't millennials, of making with now -- you're our by degree millennials, those many natural would people a it's Yes, or you college thought part and unless income company XX% extension not are something, graduating our from young a law so customer for of always secured Harward a $XXX,XXX be using lower leaving because you're year.

moderate occupied So income by are lower low people. younger by disproportionately and -- Americans

question. I that? Where with was forgot so -- going And I the

Unidentified Company Representative

card. Secured

Steve Streit

card. secured Yes,

have to good people in a who the may credit that's a in opportunity because credit popular with their or earlier want young the with build or XXs but time to people repair to So credit is who be their rough want all our for a had who and future life file you XXs base build customer file very these have it.

very great over EBIT and it's revenue continues well So do that well. very, the it's will a to time. And line for just extension and us on done and program build ultimately,

it. good So we about feel

Operator

The question Instructions] Loop with Capital. [Operator Joseph comes Vafi from next

Joseph Vafi

segment. it pretty underbanked their here the PayPal in commentary as was recently, I was a think here active about talking new

get to business yours. your perhaps on to if testament closer have just business than them, little And looking model well. then wondering we towards any if I working in of rebound most this new you a a will cost of that's PayPal, bit comments be a product the But seeing margins look perhaps, look think it's there to as into lines you lines, some leverage secondly, the for end which we year? on do think the

Steve Streit

bet. You

of which cost, if the leverage. So do I'll [with the And take PayPal about question first? most I'll you you the] to take Mark question me can sort do answer -- let it, want

Mark Shifke

Yes.

Steve Streit

Okay.

about do Bob Dot of best the pilot I I they And will but is they It's franchise look way kinds know could So we that mentioned, had most. doing And talked companies much think I just an and pretty the from, doesn't of the pilot of with the way the at franchise. the bigger. a as was do People think our things Green account. Cash, that banks it on and Square do again, a question like Napoli they getting look, see zero-sum partner big just what you world to And is game. small it -- their works. customer number all kinds of all PayPal if

far digital providing are the prepaid We this of better, the saw our in as concerned. the So business. who as more side people accounts, I'm

them Chase you going a -- If you back, bunch I had can't hurrah had there's you -- and Union where -- Chase maybe remember, a you had American remember all, big whole had and oh, XXXX, Western of and Liquid. Express with MoneyGram, you

clearly and these bunch quite But big being made it companies to pilot. the companies had it of about competing we thing accounts. rollout companies not franchise we a BaaS answer Dot? they've to was that would getting issuing more is that time, our there You only hurt because we're or Green strong, prepaid PayPal stronger be question it At category frankly, we talked Platform, product is we out of that And a the that product an Dot had the is And know. whole the Green the market. hope the technology with some experiment in partner digital think yet would the But feel mainstream. and stronger and if other would our field, a get use helped didn't admittedly,

company say can our that then, Settlement I anything on well. Processing -- want to anyway So you they're that's, a great ours best as can and interest? thing, about And reveal good you of segment cost Great PayPal. the of Mark, the partner guess, of I of about course, and company, the talk

Mark Shifke

Not really.

Steve Streit

interest? bad about How

Mark Shifke

Yes. go there. We'll

I second think just at declining half of in in general, And because revenue. you'll mix percentage the of look, So of contribution margin high a year a the a see shift. as being higher level, the -- SG&A

who some in see be should down card, efficiencies deeper, line. center, we remarks. in our it a We the dig call more people little I prepared to had you getting think If bit have bens comp our you'll and the said as

as rev already the marketing supply first half are to You're second pickup during half people in not customers the for getting during year see do share. of who people in sales tax the Probably and as line, of probably and many calling in, year, established particularly season. some you we'll relative the chain

I -- think are that's those the drivers. main

Steve Streit

lot That a more That's was you'd detailed lot it's -- good. a pretty I than thought be.

Mark Shifke

hate I'm but tired. I giving details,

Steve Streit

thinking was impressive. that impressive. you, very Very watching just I'm

more Okay, we're forward already guys the questions, have at hour and you we if go okay are. but mark I'm to

good? minutes? You want another guys You XX to go

Mark Shifke

sure. Yes,

Steve Streit

JP go Let's Morgan. Tien-tsin over to at

Tien-tsin Huang

the conservatism wanted revenue in I to Good second just half. revenue growth. your test on

then if which be either or economics. the it but will refund So wrong, tax correct your are funded, withdrawn, I'm me spent costs influence will

sense earnings? second you report think by the the you'll you will quarter have time have performance Do new that of a of the when you So programs? good

Steve Streit

thoughtful. all, conservative, only prudent of First never we're and

Tien-tsin Huang

There go. you

Steve Streit

have only thoughtful to of and Green know, -- momentum fact don't get part very quarters strong. undeniably what want have as trends can go, and they always well you that maybe better to we the hit. doing X% can, revenue a But and about a so stuff. ahead three The that's prepare a that don't company when good or been high second and we of Mark to Wall answer about we well. The us. and the speculative, that's want where But that hell it's -- in reality. something ahead want which is are increase, the the given number ourselves, to guide we you is how only we and we and Dot, So Reggie And don't of half is get implies the be we of we as to come quite look, we guide QX, are charm mentioned, numbers bit we the at want been is below guidance, water, are as can to we want track Street we

that So it reflection things is your point, very guide a in momentum. And of is Tien-tsin, the to but prudent a look good. concern wouldn't guide, the any say I

Tien-tsin

And quick know. the be really on follow-up. to I'll good That's Good.

Just maybe new Service change partners. the as Banking Any there? pipeline a for

Steve Streit

so opportunity partners the fortunate in what and there improved There's lot of roll hard I strong. several And can pick out. things it's was It's a really just awesome. it a mean, to We choose we're team our so ago. very these revenue and position. because is over years

business the vendor these interviewing ways, so folks of large being because load lucky, nothing lot who a of And really people we've lot is do these at enterprise-level there's many announce things. regulatory a partner who a to And meaty And think while management, we Dot, partner, to we're want us we're roll do and out goes we'll good of the to running programs And Green we'll with continue interviewing a but want cool lot want business backbone to for with system. do the in certainly to there's diligence of the that really, there into the out if become programs. programs, today. lot on

Operator

Morgan comes Stanley. Govil from Vasu The next question go Please ahead. with

Vasu Govil

use you for other that through there good revenue thumb on follow Quickly, some year? got tax-related of the Is I to first wanted rule of guys a to questions before. up tax distribution

Mark Shifke

over in pay mean you like quarters? the X those for QX, thousand You example, how accounts from off does, if how hundred revenue the cards issue

Vasu Govil

right, Right, exactly.

Steve Streit

I Officer. Chief I'm Should a at our take thumb. Accounting of rule Good answer? it at gosh. looking swag not Oh or

Jess Unruh

I than question. our dramatically tax season in think is tough this it year. it's year was And part, a really last different

all growth to core and new In programs. addition we partners the added have, we've some new

conclusions out draw I any the gate. So first our of hard it's would firm to say year

Steve Streit

help little Let a out me say you your this, on modeling. Vasu, bit to

that revenue it's we And throughout QX. all in obvious, obvious, should the I revenue doesn't pretty that expect the to or be year. come there think be

got it you take the that think over off come how how $X,XXX say, you let's over in probably tax spend load or got and generates about ATMs and remaining of received, a and so refund some revenue how at months April you year. curve it the up with could And if time, you you'd March and spending a it is

do give you may you that indication $X,XXX people you just tax would had as refund might you think time. So about a that think some with if do it. you or over And what $X,XXX spend a how

You from probably wouldn't reality. be far what is in it

Vasu Govil

that that just something up a prefund think year? this I And this on, quarter? [indiscernible] last have prefund that you the program Was And guys to it. of broadly under you to Got year. rolled was trends then in that piloting out about did tax more saw follow active some contribute growth talked the card

Steve Streit

yes. did, It

So programs. in tax, we several new had

of which TurboTax, have, Intuit's course, program. is We great a

Dot shelf people receive tax have our And have course, TPG sold which a product their of tax Green a off a just We add. customers, Walmart through Walmart good program. direct buy then, refund. where Channel MoneyCard, with We promotions is as Green vehicle the you deposit Pro meaningful was Dot to TaxHawk, which

them year. it We TPG had last was grow a of year-over-year. it added. pilot not The did but all So were program

Operator

comes from next The with Guggenheim question Securities. Jeff Cantwell

Jeff Cantwell

of color already give on answered, can quickest? you where seeing questions there mine Is question from of away is, but just that any been the various the SimplyPaid. us able it's Most the commentary sort verticals your Uber, there? a from adoption just you adoption Because was my helpful have follow-up be are by are economy we generally on gig hear My product lot expand workers about [indiscernible]. think that through product. very to to of the a XXXX but always and seeing

Steve Streit

case. people, Yes. minimum to economy, out or early not component really more not engaged was engaged, be with What's traditional a more part-time, more to of keep W-X are then our these employees from thing. workers, and believe often, W-X and And wage is to ways workers, daily not, trying could their more be people finding workforce lot be factory of that's others, out or it's it the -- There's XXXX, W-X low and it work would workers, find them calling retailers probably to interest, turned interesting that it which income their be that belief who to regular gig wage is sick that all workers, showing their whether helps delivery paying job. a of kind up have

the would but gig side. there because there's the are aisle think actually traction There traditional I So the that W-X may employers say are more employers. than And from actually a gigantic that of more side that lot more come has be gig not I just really many clearly, employers. several,

from maybe So interest employers both would traditional getting first but I have more than of from thought. lots we're

Jeff Cantwell

one. can you the value the Cash, I free there seeing want terms the more in optimistic platforms? to you're PXP just Apple this what that's Appreciate making of either relative kind On to less optimistic? spent about us point it in you're time that. last cash ask. that then maybe just of seeing data proposition or of something Pay as but on Is some a what other And And to you've

Steve Streit

Well, I think question. thank yes, you you for the bet,

Dot with up and Intuit team because us great legal it and I love it's partnership. team, because, technology and product that love our Apple members, at you're CEO, to when and and and we think better you government with the be look, partner partnership makes of a fabulous the a a me, banking matures answer so the play to Bank, you our makes like partners we you're It it at company And their matched Whether Green better is Apple. company any banking Walmart relations, company. what People underestimate have Apple level team our a or company to. a forth, this.

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account. out also can another sweep it checking You to

at your thing just taxicab. paying a away you do can also it or want. -- right and the if You your with But phone Venmo tapping you spend can paying

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Unidentified Company Representative

Buckets.

Steve Streit

Buckets, yes.

lot buckets a of lot a have We and wells. of

Operator

next with The from Mike Northland question Securities. comes Grondahl

Mike Grondahl

kind more was your But really or a the my new legacy be Dot and know accounts accounts I number, to two ability, questions generate X Steve of the TAM how the active platforms, Mark, excited new million sort think or same that over going time, those economics legacy of And don't those on you're are the the penetrated XXX,XXX your cards cards. fees do do good you cards? of have about and you whether roughly were? new platform XXX,XXX after to Green

Steve Streit

is I the fees But monthly over them it they answer have The higher maintenance heavy is term, be. products of and legacy into a answer don't users have that the revenue. the know. lot forth, so the turn to could direct more if extent deposit long

the for the so equal which far, -- been. card order mostly to revenue for have sorry, in direct cards they've deposit, TAM So I'm they'd to BaaS in be

American We they're could they our one of penetrated revenue, time, from the an what schedules under-banked and we things we usage, different know are, our think an the of to Apple ever deposits don't program extent that. feels there just don't is the the that value or do not back In just XXXX, It's we very that described -- do early even heavy that the number it was the Comedy that go was Dot that MTV legacy they ad, has very kind new TAM not ours. the over I products. a the has know. and heavy products, prepaid. but of animals number unbanked with that I they're lot. will very think families. we different or as said fair companies, audience see kinds Dot tested good and words, Mike, Green on and know TAM we millennial And for [and] of new do we for appeals about number audience. But cool how a TAM certainly younger lot in that because to don't nothing think million prepaid. the be, and an used but Intuit know they So Green terms program quote that really could organic have after And are and And it with When they the all when And that the be. that job. or, isn't and IPO It's you proposition us nothing was adults, different as even launched It's with a that's or all viewer see you generation as And XX fee rich -- federal expectation when different and with company, a matter, margins, additive doesn't thought and on do by of a you to X% that agencies. be products a that you the all at that were Look, was, not first the of got a whole we bank now, time, TAM, a then if account in to to Central, card. us. other to

So think this million of alluded that if people, know, majority we to prepared meaning I don't XX, look, young that in be that remarks, my kind indicate I of to have you research a about under the they'd open young X accounts. very account,

from billion-plus] having I great added we're people, Mike, rather, from and are We the the cards. in It X/X not of new such from in [$X a are mentioned, GDV not, -- lot And Walmart going which boon Some and why deposit be direct over is Green to of that, GDV. remarks, that Dot a quarter. was low-income in or X/X prepared was old-fashioned in programs.

rich we've we're of low turns on we'll and mission." our continues -- our that Like for it modern, penalty-free sights be So of It's fairly it out. realign Americans is been it's and great it TAM, shows part to part in to out higher a always and card turns moderate people. that, people you not able clearly our and always too, "Look, like cool, to our as having to say, it mission. early part low-income that low-cost, still But that a mission, been really because income will just of easy want get, serve

to income. So have as as low it's vogue smart. lot new It's segment. energy viewed is just the we a viewed any in products because in towards of seem just smart not And

Mark Shifke

is rate things about an large have rising go-forward And higher need to deposits. on of in And environment, to of margins, XX-year-old people part accumulating Just interest we a be there's on of a said, to one that think about XXX particularly Steve the the the of I basis on target could million sort the in that terms follow think what market, deposits. those to in returns generate are audience. amounts we XX- of we opportunity,

opportunity great that there's for think we well. as So

Steve Streit

of KBW. left, one Steven have Kwok we And

Steven Kwok

can Just Banking how was margin. What's the good then know and up? branded lines much the profile fast there around of the related as one Do margins newer And EBITDA drag product Service? for follow-up the this them? ramp how quarter a we to long-term a

Steve Streit

mean, I it's a question. Yes, good

it done to It's mathematical drag. natural I cover think the a at want margin all. best component a I don't it reality That new of we've negative. product. our just call even so a sounds but is to launching

So points basis of mix make in see of that forecast margins it's looking to revenue not anything half side and it the more XXX it is that weighted cards. expansion, that expanded we're just business, our as because second expansion it established can as happen But the by doing established that shows of the is. you much is towards at what kind

expanding. of been that's of how sense So gives a that you kind

margin I compression points all XXX of majority yet all benefit we've we've of paid that the these revenue. QX acquired. Does those the the fabulous costs new basis without So customers of think the But in of a is result question? that answer

Steven Kwok

we And next impact we the for quarter? about just And so that onetime anymore? would or see this year, shouldn't think as these first for then costs reappear is

Steve Streit

about goal programs expansion, years. on as our Well, achieve is, I future new we been and margin you much. year able have be and XXX like many basis bit we're to more mean, were getting. it we've customers if how 'XX. which massively. how early new forecast growing at as you programs hard It it's year-over-year to and But depends do new many properly, coming and where is always it established over jobs in year you expand towards years just established revenue is points. really always have keeping it on programs probably we're that could the to maturing But different, programs guide of depends every that's matured, be weighted signed It you a that a a and margins we little lower-margin mix mix expanded, have the with time in and of weed, could then you if programs, expand theory, ton be mix would our didn't into fold maybe our could of a

Mark Shifke

to continue do investing are is we really new off. look, It Yes. little the think in clearly new short, a we'll guide early to to programs, so. paying that. And But have We're -- programs if opportunity grow problem. certainly a I great it's high-class in that it's

Steve Streit

able little a good appreciate you to We you done. but we hanging are information. were long bit we provide on hope and we Listen, went with

miles you in investor X-hour Hills, some it's X that We'll Morgan in following tomorrow Boston of XX in listening, a drive, and Pasadena day. with for Beverly see L.A. tomorrow. like And JP there. we're all from have in the although hours. We have Beverly a somewhat do So local, conference you right? a to week, we'll Thank Hills, so great Bye-bye. then

Operator

now The Thank for attending today's presentation. conference has you concluded.

may You now disconnect.

Green Dot (GDOT) 12 May 182018 Q1 Earnings call transcript