GDOT - Earnings call transcript Q3 2018

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Operator

Good day, and welcome to the Green Dot Corporation Third Quarter 2018 Earnings Conference Call. Please note that the contents of this call are being recorded. I would now like to turn the conference over to Dara Dierks. Please go ahead.

Dara Dierks

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

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

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

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

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

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

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

Steven Streit

yet including play on of expect to overview results of Thank rest financial which the then I'll we on QX another yet and XXXX results, of Plan, the Mark's already start be we've outstanding you, where the XXXX of year will business to a our Dara, momentum Corporation followed with quarter executing and been Green update high quarterly revision Earnings review how by provide to Dot our welcome, another everyone, upward we'll how out. our Call. on an Today, outlook exceeded our expectations. performance, our Six-Step

quarter of despite points risk on this management, non-GAAP new infrastructure technologies material compliance, expansion in Consolidated representing that control year-over-year QX and platform programs, right year-over-year total year across strategy at quarter better growth the Adjusted we basis, given Dot's is a quite a financial areas the associated on was marking rate basis, notable, with parts the time. margin achieved tougher in year-over-year robust evidenced profitably and organic non-GAAP was more ongoing believe increase The operating we governance impressive which basis audit, $XXX and right consolidated place inherent with XX%, XXX% of EPS in rate representing grew quarter and and and XX% spending million, year-over-year bank growth was of XXX other the consecutive strong revenue As growth especially company. for with the results, by $X.XX, of in XX%. Green EBITDA the we is robust, in a our to operating this of note consolidated by $XX operating a products and our new posted ninth the the as year-over-year very the especially growth have was quarter in in million QX for strong. organization, leverage the or comp the EPS. management, spending model very and last double-digit

together that efforts States, to United results had even Founder of these this from results, that people I'm all fact, the to coming across CEO, the these humbled at Philippines Shanghai and coordinated Technology Dot As proud Development Green and so announce deliver outperformance. in know many so and proud, Center, to derived our more the

to a of the complex Dot makes team our highly But tomorrow, you Given sure breaking at our appreciation it you easy. fast-moving annual can altogether since person. sharing to in looking give and of run. luncheon is to my the forward bread evolution the technology you to nature all big Pasadena Green thanks with looks our be of payments I'm Thanksgiving And organization partnerships, our size our financial and and my business, headquarter, regulated

and step Dot take has share distinct in to management how addressable future go-to-market markets. me second its prospects. back strategic leader Green large company to thinks let and Now our verticals very two that a of plan a a to long-term total a be bodes

Zers comes like an way, a the by this appeal our bank debit know to with technology need increasingly best. need X we the The like to with years apps good is best to bank they that XX of serious and account. build to app it XX who makes of the of to Americans less of we a be use awesome bank by and than and plus this To a is and and core centric designers serious comes card, who lifestyle million customers it to with consumer market Generation up age. bank and means products card bank apps First, an aren't This yet more be segment, get solid-state as want often live that Gen XXX the can compete account it that and afraid branch new the technology millennials, no products app. with app known job look a leading done. generally the tomorrow, debit that available always delight segment one a and way act chops the with try

years decide that segments. customer their else Second, to ahead business Dot Based expectations. tech most who And many for customer When size for on large we partnerships, hand go-to-solution BaaS and we development for platform BaaS automatically anyone potential think pipeline robust Green is of established provide Banking-as-a-Service itself serious. and of be revenue that enterprise our want choose? Baas believe customized a Banking-as-a-Service our in and you platform double-digit default choice the that Dot's believe the bases the product line BaaS, potential future and such feature-rich, the BaaS of the new for bank-like they enterprises partnerships base, as We these and into we it's seamlessly has most a customer highly current platform alone financial partners platform most platform our as integrated to to of a product of our several themselves available, the solutions well We down them want would bank big Dot growth Green Green to create consolidated scale want our to believe all their versatile is for unique, TAM aggregate. as future. want has for extremely drive the industrial-strength large modern most the

uses contact who with the that some product point study of in to fair Dot. it's XX a technology that's at perhaps bank come at So recent say anyone could a by account the number most Green Americans adult hold banking XX% Reserve provided U.S. population. takes of Federal that over The

and mentioned of banking services we of Of own that a customers by that fair the or platform, course, created to types own addressable everyone whether partners it's to needs products financial that staples the directly I to customers. products BaaS products for Dot's earlier, total market potential that is any subset branded the say products market market, believe uses they that and our our total but in the are addressable market their event, we of Green BaaS then almost It's day. every our

$XXX Services there and X.X total of segment, seventh consecutive with to active penetration to of our grow card growth now increase Account to In by our is X%, active in accounts. accordingly. XX% revenue increased a million, quarter goal million Our

added looking XX% perspective, added To back XQ, direct to number grew in deposit actives is put X million active accounts, this actives periods, X.X typically XXXX, X.X the accounts million of active into Dot X active by previous seasonally quarter. two direct the has While of year and in year-over-year. growth a accounts the new last quarter deposit receiving XX% XXX% Green and our direct over QX years, softest a in deposit rate that

growth, specifically While of the products integral Dot customer's direct metrics mix more illustrate deposit are important have in our how account lives. and Green been drivers and the active engagement our usage results, account

$X.X that deposit. marking in up seventh GDV with in example, total in XX% direct was to coming double-digit row the quarter a nearly growth, billion, than more quarter GDV of with through For XX% the

to $XX achieving record-setting segment and in in Settlement in another SimplyPaid XX% results the Revenue corporate Services Our continues disbursements. million, the driven momentum, cash build to transfers increasing counts by and Processing its grew growth quarter. and segment transaction

I'd business to some like updates, our the Now of status recent share and I'll Six-Step share then Plan.

Let's in updates start of BaaS. line, Banking-as-a-Service new business with note or our business

with crediting for web store technology, transaction. between the a mobile facilitate opt our and like and mobile products and a our using program funds platform seen at many on this great barcode complex phone that the any know both about barcode with of your of are and Walmart weeks then PayPal account. example Dot the but headlines PayPal all few point-of-sale platform. to cell the facilitates let receive program, mobile using processes great of side First, Dot's the customers Green Green may cash like we the the settles the can whereby debiting you Walmart, seemingly the variety retail side. phone customer's There ago code our unique their store generate Walmart parties to PayPal and in platform We're connection a have and to BaaS-powered BaaS to receive PayPal new a that involved that and transaction highly parts Walmart can the the to BaaS service it's and PayPal and redeem with you to handles a proud PayPal this, companies barcode on the create a think and to customer off endless versatile is to platform services partnership

APIs of seemingly its Stash platform growing conference. quite account amazing the ounce the to with got the an It's and to was a special press integrate the is our Stash library experience. to customer just user Stash and at hosted designers back about for managed experience. is in platform. into preparation Visa tax will to money Conference the at them. modern Stash, Stash the be upon This Card, trust new the service super and their Green Vegas, MoneyXX/XX tax coming integrated program a TaxSlayer built that Prepaid for at that team, I and partnership by made function a this management prelaunch successful of highly product, demo dinner at integrated announced app product thank season. over the the the Stash be platform few believe app, product and seamlessly every restful into invest first during TaxSlayer and customers debut the able Next, online create that's I used and TaxSlayer TaxSlayer debit new account available weeks to BaaS-powered Also Dot's their app will Las Banking-as-a-Service create MoneyXX/XX, a debit say, in We into

product some Stash later and at features we'll rewards enrollment in new compounding fully-funded expected programs As incentives up to in already is in debit others. XX,XXX over Vegas, programs types programs new with The account, variations to existing to growth help time. line signed the add business Stash press partners it's new point platform nicely, BaaS of to expanding our continue that customers. BaaS functionality event drive through this announced affected released they've the on new and in existing the that partners programs from public and new the launching At Las is when new previously grow get other announced and first Meanwhile, month. point, be

partners, ensure ahead Dot's to as largest we and highly financial many days, done early key natives stay on already already or download and of with to platform a much we growth, become FinTech institution all work can potential becoming an believe to as platform Green that will still BaaS still or serious companies, believe with increasingly core While the app. its provider is tap banking the technology how a click our be digital of engine consume high-scaled regulated America's go-to-solution has powers a way infrastructural that services of the to for

new year-to-date. RapidPay won contracts partner-driven clients we RapidPay Dot as company to the where to BaaS business in other X,XXX go services products other on heritage in also a corporate revenue just great let Green stores have being product, Highlights as retail retail these partners IKEA PayCard years, and PayCard in America alone, across another pleased and continues known contracts that ongoing that Dot Green that Dot like than I'm all QX after our all and distribution know RapidPay both is disbursement provides platform, continues robust to channel Green and and Crate at new the development addition Nordstrom's, high-touch XXX to PayCard developments industry-leading for positive selling stores. well. divisions business company our you with those sold new other the to across over of include Dot's products retail expansion of In PayCard corporate the our worker the on Green our more employees Barrel, XXX companies solutions. rely

First, Hawaii major name and expansion we're Chopper Eagle, Rico. and services. to total products locations Dot locations retail sell coast-to-coast approximately retail to count Green around stores this list distribution for QuickChek new XXX that retail represents Giant Price channel Puerto to welcome retail proud our of from all, our plus Alaska, us, In and bringing XXX,XXX of

expansion total end on of XX,XXX happy highly of product was regarded to year. Walmart GoBank, GoBank retail announce I'm four the in Next, at X-Eleven, including in ago. first app-centric and years account, This in first retail and our mobile launched Dot stores, to channel CBS checking went the the XX,XXX begin the than that Green more a award-winning sale with contracted is since by GoBank the of selling retailers QX

chain Lastly, significantly stores we X added Fred's, nationwide, brand earned for space years, Green we shelf incremental where our across stores. more for products Aid their Rite extended agreement the and placement also our another we Dot at significant where for of

account and me period improve on active than GDV prior revenue XXXX. the we're review active XXXX to perhaps year number the number QX against XX% the and very interesting active in grow year continue direct let number is last that deposit, in accounts the to and with which is more unit accounts strong to grew in XX% spend to XXX,XXX receive period, total compared to Plan. accounts. active of active accounts same Six-Step receiving performing accounts on with Step more Now our by growth X grown the those have accounts deposit the of of per a quarter, the this how compared Total direct year-over-year year-to-date economics

in increase unit track are quality the use our retailers number number grow, XX,XXX and of selling stores. MoneyPak, case step of launch in on we actives of Both continue now selling stores new and of the actives to the for and the continues and So to feel with those to strong. like X the MoneyPak and for stores growth of retail sales selling number prospects MoneyPak. total further MoneyPak X new nearly very the Step with future are is compelling both

We a use larger most continue to to invest future continuing is this TAM. refine redesign prudently decided although X we've about for based it case, and position the to product be will likely growth. XXXX launch, for a broader to as Step the

build tomorrow, operational deployed with ensure solid being I continuing amply think to here, technologies, disciplined potential job incremental opportunities. done the handle including to a significant in invest we processes those we've of and capital opportunities of allocations and management can out the risk of people,

have with things parts thus beyond. and in return we and and invested the growth and of right the growth performance the revenue controlled believe in generating to of continue far, investing acceptable intend in we the expectations XXXX business, shows, a As goal margin right

to the areas the and as are done it's investments, part to of So good much platform, opportunity of get is lower record of areas drops do track continue fact, other away areas But robust to to they we areas always fair and our spending to drive compelling our value from over cost-efficient management, certainly Step our more the like processing, of standard absent and we about company. that. to track much today. that operating traditional more. rhythm. is than to care, save that millions be can that I our time save say, bottom so more have here, drive savings on so so thing, We're has, goal step the could although to margin are be money increasing expansion proud of much and that bigger more spend we spend is loss line, and of of with a more in think to we intend big reallocate believe X. We company, The reimagined we more operating continuing to customer efficiencies goal X consolidated the have value across can that option on higher in the

how course, about box in capital things improved shareholder X. and accretive value Of and cost X investments innovations of We believe require feel and time. successfully to them targeted smart step developing bring X but we'll results check these satisfaction. offset customer to be by good on and are the allocation to over Step investments we to here, about so market, time are this enhance than the over savings the more

We course, management feel cash, that review strategic, approval. continue are other to subject opportunity, and buybacks regulatory share and uses the of accretive, board acquisition of and to

have we it While on Baas optionality out large own we today's acquisitions. position new programs, or creates feel roll nothing our good buying return to to about cash the our and consider growing call, disclose to stock

So appreciate year feel not XXXX your organic line CFO to also and that over Shifke call far, the thus we another great hand this the as report. well. top I'll the bottom quarter's put with very XXXX organic opportunities growth good now double-digit and with that, of report a position Mark Dot. partnership in in growth Mark? Green his deliver about We to in in for before confidence greatly pleased us very believe and us summary, just but in [indiscernible] strong about And

Mark Shifke

operating the was year-over-year for in results strong This of continuing growth year-over-year Account to Thanks, to growth of revenue consecutive lapping quarter QX and sixth consolidated a XX.X%. record-breaking rate million, EBITDA year-over-year consolidated combined representing segments Steve. quarter. total $XX Processing in deliver despite trend quarter represents of revenue Services organic, was third $XXX million Settlement The growth, we the the at again all in the and it with adjusted into quarter. the outstanding coming expect both revenue XXXX. the XX% margin fourth momentum a GAAP truly double-digit in organic EBITDA XX%, continue quarter adjusted of once

came points the non-capitalized driven earlier, our growth despite BaaS is margin on into our once kind rate. EPS $XXX year-over-year primarily of quarter, year-over-year. our a margins item a operating point in X corporate EPS some strong along non-GAAP ongoing I lines, dramatically of Non-GAAP margin ninth cash this and consecutive some on or and in at QX million associated additional and is quarter year-over-year platform. investments established flow first growth. held increase. of operations We from XX% with improving better initiatives cash approximately Dot This performance infrastructure. that million better-than-expected year. increasingly high-scale new to by this noted was basis unencumbered have cash or accounting The from Green extreme earnings or like an EPS heightened year-over-year BaaS incremental per benefit because result ended a from that excellent a was at million than governance balance GAAP Bank at operations, the QX is of This last projects, the programs improving of efficient, even the of of expansion our Steve up with $XXX Dot our the of combined outperformance months presentation generated of on in XXXX would cash product XX% and out and along BaaS technology investments believe investment $X.XX with top of to commentary. could level growth buildout. sheet of lower XXX $XXX Green share, notable we buildout As again expenses on been of the interest with flow-through tax through from associated more many strong non-GAAP of more support with We go that effective adjusted EBITDA, continuing an of the trend double-digit period achieved platform, income deposits, of

the XX% that will income and and respectively, reasons GAAP You XX%, GAAP in principal non-GAAP are GAAP up net EPS and adjusted in diluted while and non-GAAP two and down XX% our measures for XX% period, the notice difference are EPS acquisition to of other statement. reflected agreed respectively. only EBITDA earnout GAAP, the payment we agreement. first, of QX as to a consolidated earnout component pay is with and sellers Consistent TPG, payment million this income the final G&A as on $XX.X are the our under XXXX The

Second, under with to compensation stock-based we retirement retirement accounted recently is accelerated the GAAP policy, million as employees, eligible an also of our expense. $X.X which for operating associated pursuant adopted

accounting, non-GAAP closely Speaking reflects Dot's we we of conforms new discussed believe better revenue, as using business banking a economics institutions income XXXX, and starting for of treat we presentation deposits. customer how begin previously, in interest on which more to will the Green

programs, presentation generated a and Dot of new the customer partner and commissions income be As Green reminder, revenue Green with investment BaaS where at will Dot Bank format will reduced partner by include acquisition. controls certain non-GAAP customer processing-related net certain associated and now the deposits, costs interest from the

you million that processing by better including be prepared $X.X QX revenue think offset result of under quarter, about have non-GAAP how our costs interest for non-GAAP presentation, of this that and would million, our been income new $X.X million $XXX to So can revenue commissions.

The $XXX representing Now year-over-year organic of into growth segment segments. GAAP Services Account diving revenue XX%. approximately delivered million, of the

XX% across purchase lines. volume lines, are of organic of and coming various both and GDV strong equally all practically new We product and with seeing growth XX%, growth our from momentum product revenue of divisions established

segment's the Our to XX% organic SimplyPaid product generated GAAP Processing driven cash and disbursements. than more including revenue, segment Services approximately million all year-over-year results transfers Settlement $XX growth a strong by various worker lines, equating and in increase. were The in

our the XXXX. guidance for Now turning to updated year full

for of year. top and underlying enables the driving and such, both with performance full results. initiatives pleased year bottom the this strategies line And very strong results are those and the remainder We raise to again both guidance our us as once

expectations million by talk $X.X We approximately well trends midpoint, guidance full the QX strong guidance. revenue QX business $X.X $XX million continuing at million are QX, we As the now full into revenue provided at expect overperformed our current by about on million. billion in Based we in for an raising incorporates to let's upside, as million expect October, as we be the August which midpoint, $X.XX our outperformance experienced GAAP of First, to in year additional billion of from such, $X.X billion, XXXX revenue QX we reflects our when increase now guidance $XX of $X.XX the range prior we guidance compared between $X.XX to which the a to $X.XX year billion.

We growth organic XX% are consolidated year-over-year the at now projecting revenue of midpoint.

Now let's higher of flow-through EBITDA expectations top QX revenue to are million million. now talk $X.X the our expect about $X.X of in for would approximately adjusted we from guidance. by forecasting adjusted adjusted about EBITDA we of another On $X incremental overperformed our that, We million EBITDA QX.

$X.X $XX means adjusted higher million. this to around guidance $XXX the million and QX our would EBITDA, in to million expectation implied together, previous than $X.X full our to we full of million year another be year range $XXX So million would adding be forecast previous

that the AML going of new of the and in to risk our expectations by we a to enable range. $X.X place more raising take expand important the reinvest across grow means control are to of of we business EBITDA programs, programs, making new and year will that management, the adjusted million midpoint. full guidance BaaS full programs be $X hires advance opportunities which million like platform to and new that to pipeline systems other EBITDA adjusted million enhancements improve of million on company, Instead, become company, upside, and the new However, annual areas of existing compliance, expected we our development considering incremental BSA $X.X approximately growth plus including to planning of the InfoSec, are the EBITDA to areas are intends $X.X new add vitally robust our at and growth, not we robust the investments to

EBITDA XX%. to the and to revised increase on year. expected in equating our a year-over-year midpoint is At about growth by basis are of midpoint, adjusted our approximately rate guidance million, be guidance projected original annual implies expand to year margins to We a range the XX% between range $X.XX now revised $X.XX million, basis to $XXX such, adjusted XX% midpoint XX share, per the non-GAAP million equating As year-over-year $XXX to and our at of this points $X.XX. of share full year-over-year to a expect EBITDA $XXX to now range of EPS for a of per of full guidance $X.XX the a $X.XX growth

for XX.X%, I tax assumes of ask EPS and million a million, forecast diluted million. that, rate phone questions. $XX of income fully non-GAAP count Our approximately And interest depreciation amortization with of a of would net like Operator? share $XX XX.X operator the shares, and to the to open

Operator

Napoli of And from William question [Operator Blair. comes Bob first our Instructions].

Robert Napoli

per would rapidly. XX% so was mean, it were revenue the - cards pretty X%, card so is the And one, up, think materially. up revenue to business to does Steve if organic organic growth growth, but I forward think, I should understand, we like up the I 'XX? And the is think suggest revenue as I changing understand, I correct? that XXXX, was trying to just what years pipeline suggested heard you BaaS' expect for we double-digit to I that come, of the

Steven Streit

the it we has - to it. potential I is think it said what

the depends card it us. opportunity me how out on we But in because pretty course, fact, and that. certainly robust materializes. knew But let comment it is active has it the to Of is stood number, do with that pipeline And stand the the goofy. platform, pipeline out. It

something. as months think to quarter, digits, And take bed, if X. X% mid better. And of in single why most you or were we X% as that we were is X% So or know, was that the average the then make the And in you which about guide out We that's up or July, X% it people where or and September fell X% August. is. X about like

to a related to in FEMA to back actually cards purpose. that Relief happened went last we for that and and natural and comp it that year issues looked sold cards things year-over-year as other the narrow of number So Disaster some into we September related go large and disasters that discreetly funds

just October. be for how So but based And anything was to a a related of it wacky in the QX, it you think on comp, will we're if in tracking not or X% will, above fact, business. we indicative

it. So on. it same it allowed But I'm me number, September, question you X% and out X%, that growth. Absence it explain anything the we knew and would is a to would asked have should it been glad stand focus X%, strange because we average so not

revenue So are very it a lack or times, X.X that very, a is And changing. years. more a you a wrong acquire reload, we That percentage that is as because people But accounts see direct we been it is likely may they're but It now more who does a X. We opportunity our nonreloadable means, far several one-and-done, reload use, through better likely card. of continue. long not And meaning to and mean The of words, it do it's for has use very when trend when real, per electronic versus continuing. phrase time, sell fewer or a they X at there least for we far and that it to and good we phrase that's point done, deposit. reloadable. made more nonreloadable see

customers. that We new put card be new it, think with don't growth anything absence and have products that, it, which of to I'm that except for attract continue then certainly goofy, it think and that, there listening, has time, we'll over attract will products, new you see distracted. investors be comp. customers compelling and into don't asked out, active but which in that to the we attract the much will I a But think as that will little glad we do we been. is for BaaS really September customers will So of continue programs slate a we number And opportunity we programs roll other slowing X% the think new and wouldn't new down

Operator

Jeffrey Andrew Our of next SunTrust. question comes from

Andrew Jeffrey

that think I me, growth. the I may you XX% you to. that revenue comment, about I'm to support ask that But aspirational to business guess better with from - been about up. Mark, I wrong, communicate, an momentum that BaaS than being you the see alone we the What something you your in to are business. to that? can we you're to quantify support know goal I wonder if have not revenue trying growth? made Nice goal? used correct And to as able Is in frame to but your if Is organic BaaS, context going should think of XX% the 'XX

Steven Streit

revenue have his successful own their represents, that certainly when see customer you group and company, does that pipeline the Apple mean we're we of is to more comment as and the in do - issue look and on hitting again bottom when We've and in is look as BaaS I to that selling be continue bases know, ones the Uber quality it the park of X doesn't platform or for we at from know, to you responsible whether all, I secret you at it We're certainly XXXX, just and it our every up better get you close setting in and have handily ourselves clearly, will can opportunities, line. BaaS goal effect top no to that to see all this do the our of numbers I every all that, too, happening, the it of close products years generate products. or where want right? and aggregate more But prepared first more at year. the think that. they're as them BaaS did in but existing do Mark the components. them the the you to when partners, pipeline script guiding Well, And Intuit One I plans time rest, pipeline as products constituency, XX% mature, and those their long that. last goal for think marketing so mentioned developing all a customers growth people and it's is few when it of have the their doesn't and to you not - partner them mean want have my as remarks, you done we'll BaaS the a we year-over-year to part don't say and it's that of we and to

As example generate you And themselves. will that coming by before growth that. two product A de as with that portfolios new as about at age And programs others available. programs know, ago is up few weeks Stash, we on already the then of better conference I good had that even customers like than MoneyXX/XX those signed novo young. are funded see XX,XXX and the that there's is at mentioned, a

answer to believes at So that bases with customer is that assume generate they each XX%. enough us the those and of could the look the we it then pipeline a grow percentage of you penetrate and close were could the I if at pipeline companies of the think to product, size revenue

to those be mean. So closed a BaaS all, them reason but we put comment established to and we're But there. the platform well close the clear to BaaS, and no is the are and we lines, are them size that's we comment in own effect it I opportunity new that it to and It comment want way what we is products our [indiscernible]. of that doing a existing saying legacy course, going all, starting program the programs And of to and I no we're business this continue from that seeing scratch. of mean, growing growth are which then grow. unrelated with very have

that the Does I make sense? pretty that's good to So about trying feel prospects future we was relay. what and

Andrew Jeffrey

the a appreciate as I dig it follow-up. Yes, I just clarification a does. elaboration. little in more the Maybe could or

You talk about continued growth customers. in the of installed base BaaS

I growth decelerated. has installed has Has an reference maybe constant? rate Intuit remained it It - the you know Uber, it customer, is relatively aspect characterize to it, I as can in the but base? think of example, it just seasonal a accelerated? Has

parse more to drivers. trying Just the little bit a growth

Steven Streit

yes, to is, you about and with So let the answer the me help how listening. others this think -

of that we we know and year So absent announced the seasonal TaxSlayer programs, those more seasonal, the with are highly others. programs next are tax those that aspects

components, answer although the if MoneyCard So the you of platform absent portion in in hard of as the growing will, well. BaaS use Intuit who somewhat [indiscernible] Apple the this you there. themself disbursement, active is because are is isolate retained including is to nonseasonal to Walmart tax The what have on influx Those in QX card growth the the customers the The because the and related is all seasonal do cards. else for Uber, run, grows, QX the beyond the just program accounts Apple of not massive business. and

bit of absent But growing. - an kind is that pull to does side those a answer it's out. legacy seasonally it So maybe it the little analyst programs, make for seasonality yes, And heavy harder growing. is the

anything you each said did so our beautiful much Green slate really case to APIs story, is that ambition all and and was Stash the with same our consumer In So interesting we ago we at Dot kids have In and own product we this when And having BaaS as rewards I those the interesting good own our And next with think brought generate roll with interest, because name and drives it's a use about how our and when what shoes. all of partners people I'll and own have higher. platform, that designer, clients. cowboys we'll it. this But said, I Green honest platform the to own all product other And that job products platform. our but then meeting the feel quality be we like of tell we kind we of is consume on think I shows our own on you also technology well. our side. products. our we're other but brand all love our other our all we And our products we new years is more BaaS Uber And of under we product our It's the saw Stash just we'll have our words, it's had you. X amazing Dot, I I have our it we have from and a an out, - year than new words, alone using more the stuff. learn products

good feel we of of all lot a really that. there's So about activity there happening and

Operator

from next Citi. Our question comes of Andrew Schmidt

Andrew Schmidt

just just the growth, the horse, you're pretty little talk that be definitional you question, income? a especially how operating different in when from includes might to new hate about XXXX, 'XX? if strong off XXXX, I growth drill could the since dead double-digit a which guess coming interest drivers and And assume growth but of beat from talk context guess XXXX in bit in a a I benefit definition, organic the that a revenue I would about double-digit revenue you in commentary, down So more

Steven Streit

this of treatment revenue? you the But X is out X statement X would - double-digit netting about is of the accounting because fair what I point. that a midpoint And if absent which and That's programs new our so think the is general, through I've forth. generality don't think gone be X midpoint,

Mark Shifke

X.XXX.

Steven Streit

can X X he this. you X you I X. X, think was I But well, to all not X. notice way, on X ice all X reading Mark X X but throw - get the Mark, said hope all X, by script, of him. X Anyhow think water a we When raises X - to he X I think I natural you think X met momentum we tried know top momentum XX% you but see of our the see the Dot think how of you on achieve the by and we X XX% so so anyhow, based Green goes. tomorrow. X you on on when And of of midpoint, that X, that, that revenue top right, transcripts portfolios. can

As people portfolios more them. on money age,

which more programs that more on, money revenue is as for more monthly get more more a More on and fees we've interchange. have growing and and means on retain we time. how spend. GDV make those You some which subscription means subscription spend and on, and they been longer put fee pay Those

established So them you're going money the actually as but more age heavily. accounts, to have use make and more much accounts we new they on

are So new and like like and this accounts, those our healthy about been our Walmart programs we businesses SimplyPaid natural of things active not business, that about and has very other with accounts, our Transfer we'll of - get momentum platform. and talked then Money which PayPal

team and shame me his of on business, wonderful business, it's for come growing all which this to that things together. and RapidPay highlight don't And Chris business. normally. not I decided Ruppel And PayCard fabulous at a I because job Our quarter, these do a

will. card Beyond you established business, just if our

as And that you are PayPal-Walmart or natural the deals we that trajectory deals all similar plus a new say deal, XX% percentage. Stash sign, that we've look extra $XXX let's we those, expect think or comes a the to plus out, signed of so at when rolling already to like get together line this we something that to that better a the to plus, bottom million need growth top generate line and on

together, year, So straightforward. that's next it's programs math actives fairly when how simple the the it for you do so the we of see just comes that's and it. how And

Andrew Schmidt

context. cases use if I existing set about new today? products, like the have vast and relative about a And use platform, but things do that you guess when component then good that's capabilities you That's have to things it. you you your cases sure Banking-as-a-Service sort a there's we the adding also in of that. roadmap, what terms or of Got growth support. think of just envision can think for roadmap you I'm involves incremental

Steven Streit

how I'll think I without saying shouldn't. let's gosh, this Well, things answer

ATM or use owner's centric, our who allow in R-e-s-t-f-u-l, technology that library APIs what's works ours manual like APIs, manual capital word furniture But or gosh. network. lack to called software APIs of left "Restful" instruction for they this "Oh, can for you easier. a or you want is come better platform and have a say, letters, piece have a of an are in an development a come a in but I hopefully free those developer when way and that you're always So a to of IKEA small over. parts the and is kit of building add I take

API. Okay, to Oh, I I'll that want rewards. do enable

we Okay when that these that of just utilize but love do the have It's that happens a API us, custom a with King "Gosh, do. XX and want don't invariably, you how and APIs does that we to we library. then permanent businesses they of the as big that for I'll have have, program, partner you terms things they'll program old for requests hills will And in work, API." something as part a to where Burger thing And and a up up a this goes you API that building and guy else then then end happens." a say, becomes

it whatever account And or Green they'll not capabilities other their this and "Hey, rep they'll I so Walgreens or rewards. them partners too?" ATM Can So know call and will earnings we and all it they capabilities or another It's things. or that can press expand, can partner Dot a an hear They like through "Hey! another made an that existing want things come the we that for partner through in say, do as you those partner, do product by for do will you use could and would want release such be. at your add on add or to network," BaaS use ours didn't with that. other expand try to say, to each might uncommon other

then So of product Green I'm all designers years. how after these that something out. of as I'm it And part still decent inside and it's with what and do we that I at Dot, team. plays this frankly our is enjoy doing it, sort

can under and What say, customers in? to And our market? we "Well, are brand the base, the needs expand or make It's in it's constant. draw names for Golden use the new Walmart build existing it What a customer customers the GoBank or we painting Bridge. compelling like more So look. that then so can Dot we Green that Gate

You're never done.

start all the product with over is point it way and at and certain And that's development. consumer of you back the a bridge go then just You're again.

better consistent have that some to fact and to features never coolest having are large, look drives to it's who many company is complacent fabulous we products this be we're companies, as the But to the us so are important with a can going I do want many things continue and tools end because tremendous and the at designers the there bank to of there. we to the in of platform out You of so functionality. that stale Green manner out day, And a that's take innovative, have so them think are that obligations that risk say who small product or in from areas with holding BSA we the we very and Dot, great has safe and to follow and regulated and of protective the seriously compliance and of that as job measures various try really bank management we and a the AML do that. a talented all

always growth that your to your sure make outgrow outstrip you ahead So of building you're don't foundation. or

Operator

comes Brad from Group. of Capital question next Our Craig-Hallum Berning

Bradley Berning

One To would I thing pipeline. is the partnership think to be opportunities. maturity hear follow the of interesting that up on

different things. a stages In of You've have of implementation. at working I times, been on number announced you guys obviously various, partnerships think,

us signed in on of you on if help where guys mind. were really view of at once you're some I Give of announce I opportunities different Do you're give us pipeline you are maturity execute. wasn't them? until implementation? because where that it potential to pipeline know a you to ready working us out and that deals lot deals and the too, working context, actually you've a actually and, kind already there? understand the and think the signed Just is? don't Do progress, announced have a have you've you partners I you guess, on

Steven Streit

right the announced we're maybe rolls actually common, on product it with or rolls allow big that that's especially deals out. technology have And and is so we partners, do not companies. out very literally all that until before the of announced. That's Yes, rules Most currently various answer our have it a them, cultures norm. working yes, of to be not frankly,

Is announced. the So pipeline I Brett become Brett to we of going the I'll so be of him question you'll pipeline? haven't Officer are and be the Number of we were out our Narlinger, directly, pace on our the that Citibank at he'll you think The a X. rapid. there at thing? a sense. who's maturity Revenue right now X, Chief the answer Brett has wish investor with here. meet we're couple So are new, have of some working just how business programs That's and development that is with give we and so doing to meetings conferences I us.

think to finally understand as are people I second. that, getting "Wait a

we their do days, the I they about happen doing clear they're you you to meet?" I've that. where dance shape we're who I it have Wait, my you must have you record you what me with meetings. X:XX want And who's that. Do we want from in chickens between people sense do you it in is it. and top actually we happy the to other food of can met, honest matter, can are count why gauge on, this all your in to and if this? the in trying clients eat it hit excitement And needed do meet long the be how's of market conference At said, based with certain or I time, existing form then very for admin were can offering then do where no night, to at existing this couldn't I that an can same with and just and in make the company who then We said kind after not you can never just X:XX, generates true obviously, could time, c." know and b sales talking calls honored suite, that's meeting XX/XX, conversations have onto you Or we've activity. you a gone follow-up If a "Yes, had bringing to of of a.m. of only old and but in pace the and meeting does I have and sort And meeting wonderful that, only to say, who that but And where somebody time with, actually of to fool on Money just guys you And years, somebody you're there call we "Hey, and the been was they we then like top large that feel some hatched meeting like Somebody do and it's because hectic. all been about phone demand generates they - well. would But Look, am can before such a, beat?" onto a "How'd that pretty demands so were as so that that, after to X:XX a you're used were just at "We were when because generate this this?" is something. on XX run that at something. partners, Steve, and I an this?" but that - that gives because anecdotal, to and and that. so people was we're a who

account the But hottest that hotter had don't looking to is But are directly personal as interest small business BaaS frankly, can we is was will of partners think providers the I the a you actually in people actually have I biggest, about, world words, a additional thinking The account is solutions. than going consumers, who I me, do think bank account. account. small to provide business as the small I'm the our X go color of was We to weeks who that prior that, for vertical use activity that know. who for account for today even Uber Brad, conference. would a side, to even traditionally, consumer say other we our I business from was which on Uber, the thought side share

and just shows doing have you have in but product how that it other think what always platform partners you other customers So exciting you you're ideas. you we're an listening. know And will or then interested when

but it's of But in our if there new that because we things think do other we and here. do with and million. should clear, they But Some you next not BaaS and XX% to just of how we're not comment that the and I be a right just think use are coming we deliver can alley wheelhouse or fits created can't we've we are something That of of potential not and right or then, forecasting so commentary because our you what the the million something to culture. or think think, risky products and down wonderful So on the our current ones what things about that unannounced, need maybe in platform. on a to thought "Gosh, close a anything pipeline or feel that we more certainly too future the about you it's we makes it's sense." its could do others vitality the may announced or year, extra $XXX else, between revenue $XXX hit we that partnerships, together, would that lot

going think it be our changing market we're I'm disruptive what guide glad I is took guide away we and best. I I that continue year. the in we're to be the has can. of get that's and think taking hope to I something but what and I from on we'll should from But away you what here we're - when and potential wouldn't to us, year trying it doing front I'm really we think I to communicate, it the do to

Bradley Berning

One growth follow-up. card The thing, of account definitions various is I into there's don't numbers because but that one think things. programs get some of

a The look trend? kind number you whether of underlying you're various user what's the were non-recurring, they're just what the on they're to year-over-year If - of kind touching at whether that real programs. people real of recurring, basis,

Steven Streit

of what is trend that are numbers That PPG quantify $XX ill percentage million, I I'm But it. customers think active you million refunds it. cards. bigger. probably give alone $XX I card can't a we company. And would you then I call users, you of that, or it the of it's outside tax million, a pretty not - we're be certainly tax and $XX know advised Well, just tax something does, big in mean sure the if like annually. have

MoneyPak not our You counted. have consumers were who

You have not customers card were our counted. gift

million respectful - always his All certainly but in or of Tim to I that used think Cook millions Apple several that's Apple, news, which as calls earnings be announces I he's and Apple's want true.

whatsoever never Dot So add customers who there's we that have I if do XX another, used were something start revenue company Walmart. card monoline, went know, business. use the to we I've don't XX all active or probably prepaid the company, And our word to were of regularly if the Green of like which nothing business? we a a again relevant that our with public million it oh, X-product was card, to today, you be or together, XX% remember active cards. from which came XXXX, when in But wouldn't It

company that the to of but we're to also we metric like but we're itself, analysts as want X so afraid people very to truth get it's in get and X, of don't card is was it's the a other trying and rid relevant different is of number become and we you accustomed keep X, somewhat So passé, they've not it, active to years it a rid today ago. because think it, as

Operator

comes question Vafi next Loop Capital. from Our Joseph of

Joseph Vafi

to their them and wondering Neither circle get putting why Walmart-PayPal involved deal. technology in idea of could an right themselves. that you instead together that product - own it those companies to of back helpful maybe you slouches helping of doing if in the was putting I are are them by

Steven Streit

partners. a anything don't company point, of but or all, of an they shape, and or Walmart is are. think company, amazing company - as innovative listen, concept in they build first could to to people deploy technology any incredibly and they're form point, your certainly automatically PayPal And your Well, way, want

eye ever as don't in respect size X looked far David they think new But you're all, massive. for had my is they univacs, Sam's David all those it old and it they first it's tapes And amazing in of as but Technology first of If you'd anything Center, the is, this in the an big-wheeled it big - Glass, Glass machines. see. was of partner I building Not years. the Bentonville reel named had technology the I've the football can which that when company me real, technology their any the know never any how closest they in way, that big back gorgeous - like to machines house then have but him. employees fields, of seen And after officer they days. company. just by

I a he's think still cool and alive culture. it's

whatever that, to Between sure clear. So build make those want and that they companies I either want can you're right. build they of that to is absolutely

- very have that it or companies rapid compete they system, I'm we we anyone heart. reload, it that - why many Dot's products they can already case call do. They it that we reload Remember have network. like Not day. it's and make And in I many then do already robust we're long sorry. so and to rapid think reason other Dot the X. that Green is have networks cash wise It's rapid there that Green integrated the a a can of support question mind. there, which would've else, Apple they by service. Reload, a not that do products - Walmart, with it's been Dot my But we Rapid Green tie also to losing right? whatever what you the network want of I sell what known and the in so in I'm is

a the regulated safe way. things as And the both we daily all integrated out on entity and put a already auditable settlement Walmart point have and basis. we in technology of money and we're cashiers do to and allows their with sale into partner So that also meaning the as a on integrated an

for some And have operate that there. advantage we of we those them. already So businesses

already done side, CASH you have On for some may the that PayPal been PayPal years know think on. - doing I we've

account get PayPal.com, you it. PayPal to So the way tell cash you a on do to how is on you they'll go

your request done long and for barcode Dot sent gets a we've a a that and service, to Green that's time. smartphone You

already So barcodes, barcode so way, ability already technology built. the issue audited forward to cash have which And, to, built. the inside It's we can't already have a safe that the had the already secure barcode. We had in fake you a built. another. we We one and or

that they you build use what it on to simply to make we when technology can wouldn't this decision. would to the do a own partner we can part makes ton services FIS things bill do wise And do but pay. they a and play is FiSCA get - the think like people think a say, it just "Look, think sense my or they along do where that made as technology how Dot particular already quickly? just partners I and knows back-end, I the best. use no And is sense else?" just business So to can So large payments I use Green a sandbox of do, or of somebody slouch, I we in Why this like do a and

Joseph Vafi

ongoing And investment clients yet? and then this in on some haven't expansion in a to we these margins, fair despite EBITDA Is the business. EBITDA that BaaS or new for still Just margins the trying been but point X good relative indicated you're you for say that follow-up to trying EBITDA to that also to saw get that of get - I'm sense just capability EBITDA a BaaS. it announced business, feel is potentially to contribution? accretive at investing

Steven Streit

It's Yes, question. you bet. a good

in diversified. the who decisions one Green reason is their meaning The that invest wisely, we're highly is you, - part why of BaaS help again, So make in the you Dot them hope we analysts business. more investors

Green it's of RapidPay. I have doing Dot not lot and GoBank their it's account a over. and But we and legacy a balance it's just not So products of divisions mean, thing. and and large and RushCard BaaS brands of products other brands our and - just become collection it's the collection

that. And of X so BaaS part is

year of components. So different we the and segments different from get different margin and times products at different

in lower contribute to our I Mark as expected than So it's established that margin BaaS programs a programs. and as BaaS guess. we But point, said your to year non-BaaS, not simple earlier at the the

some to we're it. not soundness - group I Or onetime dropping off nervous were remember you increasing out and and we that did age, and if your just pull time, investing lines. because so an maybe because programs. we I I be don't how into think it's then each have in you the you and compliance a on exactly as investing lot paying not - well said pretty could know. of make second in the hiding it second not the But the expansion, those abridged expansion lot they'd I half. revenue that's margin he throw thought, almost margin we'd of call were a you of getting And on slide that's components at cost in there very And true. can't prognosticated that QX Mark, I'm half a of I'll kind Can margin point, you more acquisition some in because specific, as new said, is year, of over those of from of way and margin than And appropriately, bottom that we're as new safety played the time. products, They accounts investors, expected, QX. products you of because a "Wow, And what platform large and think really as expansion eloquently and seemed maybe of off?" described as collection most to as I doing despite line so business margin have. got overly that the issues called margin our the you're

a that make a that had take for we of lot granted. and spend blessed we've very to been we've of money. money don't an So And opportunity lot

got to part on good. its it. of It happen process so the run But far, doesn't really You've the so business. a own, budgeting annual and is big

Steven Streit

to and I'm New Bye, And thank all all see a on tell bye. for at those week. Citibank Conference if that's you We'll Operator, attendance Thanks have listening York she the for wonderful call. think, in you, question I you wrote of the I'll missing day. list. anything, not next the in you

Operator

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

disconnect. now may You

Green Dot (GDOT) 7 Nov 182018 Q3 Earnings call transcript