GDOT - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day and welcome to the Green Dot Corporation Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note that the contents of this call are being recorded. I would now like to turn the conference over to Dara Dierks, Investor Relations for Green Dot. Please go ahead ma'am.

Dara Dierks

Thank you and good afternoon everyone. discuss fiscal Fourth XXXX. we'll and XXXX call about talk today's Green Quarter Dot's performance On

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

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

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

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

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

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

Bill Jacobs

and their service company. CFO quarter and everyone Dot's our Dot's recent a Shifke, QX the we'll Steve investor Mark fourth to a our for Streit; Green search. Corp. spend moment topics few you Today to CEO first, founder; many Dara thank Thank business and to Green I But like welcome an Earnings of results, would guidance most XXXX few the years long-time XXXX our to finally on including Call. Green Dot focus a updates, update on and

I pleased the and laid an and Dot services the entire been Since very organization. financial we roles transform in lead to positions have to with Chris the well stepped Brewster in incredible December have into have future. industry They continue our us which foundation Green

company And of be expect in call in we team an forecast our we team can a With lot work to than has plan hard on we heard a and finalized exceptional preliminary great the all The operating budget better we which that and XXXX today. proud the of. you news earnings more about will the January. be QX detail good is, at/or share effort

aligned among our priorities We various significant operating more also of much have accountability. businesses teams the budgeting and including financial

better drive financial to to long-term performance. this expect We our alignment

a Chris of an are many relationship the and lot you he former organization CFO responsibilities period. business He As and the recall, discipline I transition to through external internal has and as of is of have sharing this we brought Cardtronics. working excellent

with has time been spending operating done. internal Chris of our work a this getting teams lot

we CMO those operating to to us Nick former the and the Mastercard In throughout teams brought as begun Utton, on more E*TRADE our engagement of year. addition ways consumer of add and identify inefficiencies already course vigor to he financial as advise plans our has firms well to the to improve in other

great allocating partnerships deal talk others we is, and good our business to personally customers amount we months. the I've partners. which a attractive a continue of in spent also coming time to win The news been announced of time we have my we Importantly, new visits. these of business recently about which visiting to significant and some expect

We've important helpful Apple lot Apple gathered growing Cash agreed continue and relationships from these program. for of In who a addition to we meetings. recently extension a multiyear to renew feedback the like

update to our that state-of-art go that of well the technology would and our Partners that, they they amount as the one-stop truly want steps appreciate meaning a fact as the to reducing implement offer own that clients. programs Green shop; Dot have need value we is bank through offerings to they

let Now QX we out operating EPS million. QX third total pleased the of time results. quarter pretty quarter consolidated brief share. per EBITDA expected Dot much $XXX.X earnings turned generated call. fourth was a of $X.XX quarter were recap non-GAAP and our $XX.X at the revenues for million Green We of for me give the QX was as

Next I'll business provide a our update. I'll with start Business. brief Consumer

all we As budgeting of own process, XXXX P&L. their part our aligned have products on

growth strategy. this We active growth sake of consumer profitable the also acquisition last of not spending few chasing up expect have better we neo-banks the This on many card a over unlike years. account will are for means that popped align the

we aligned product sequentially a to competitors commentary for believe to value performance I specific of accounts but our some where while product, be over in competitive direct QX reasons going Unlimited but steady versus trends, continue account best the call Jess, want that remained spend deposit no are costs our overall customer consumer with react accounts. will with decline provide our active standpoint, to provide product to. we From QX additional lifetime longer we are allows that acquisition We customer. at X.X accounts million on our out did to pleased

card will consumer at as we Dollar well. I'm pleased a and strategy initiatives our launched support XXX in large at for stores deployment Green Dot checkout that the retail account November and Walgreens Family Unlimited at Our

the for has to well continue as returns strong the customers customers, new progress financial sure our pricing making up Green appropriate strengthening as Dot. On current with and each side, relationships make BaaS signing we program

more program. enterprise I with announced Last Apple we year, Apple large our earlier as recently deals mentioned we and Intuit Uber renewed Cash with and the relationship new and

banking we that the to segment in agreement We business S&B are pleased accounts. player an small deliver share with significant have signed a to

to that happy We for up about the businesses it new opens million closer and we significant are are we America. the launch, TAM will this medium share a and excited very be program to feel XX name. Once small in

with very And million $XX to annual selected on venture Walmart planning venture in to is the honored are Walmart program. to with in be basis first committing release we joint an our product participate Finally, TailFin and to underway this joint its XXXX.

details this the be joint large-scale as next XX-K. investment XXXX over Additional has is opportunity years. released will several prudent relationship this to in programs produce venture the X-plus We of the our believe

per Let to me operating for Based net in financial and $X.X the shift to to to of million; in range now budget billion; the range we adjusted be revenue be range $X.XX EBITDA on our non-GAAP expect $XXX EPS $X.XX current to expect in of non-GAAP to fiscal the $XXX the guidance. to $X.XX our million XXXX share. we year, of billion be

detail. again headwinds the on that This discussed guidance earnings will in call. the more into QX Jess management takes cover account those

do to few we financials on over fill over an months. make not of well many now the founder as the succession in multiple been position turn to great XXXX. retired to while I planning is of Prior Streit, executives candidates Steve's additional the course as Dot's goal to CEO Steve would and have detail retirement Jess were today to in with the like QX detail actively in Jess? retirement, the we As Green we December. have you Since some the have Unruh Steve's over to with go qualified XXXX. announcement more call so know next fortunate this for position met met to many in active we

Jess Unruh

afternoon, Thanks, everyone. Bill. Good

$XXX results As and million EBITDA we quarter These our call. on of we with Bill earnings fourth to non-GAAP the consistent mentioned, $XX of QX million the grew and shared adjusted our $X.XX. are delivered during EPS non-GAAP revenues guidance X%

which Settlement of We our Services programs; our of two results Processing discussed and which the business and segments: Services movement Account money reportable represents account across services. all represents all

Consumer and Last quarter Business. a introduced of our Business our Platform Services our also we supplemental business: view

our through digital Consumer is Dot, such Our Rush. our programs retail and directly and Services channels as a Business of Green consumers Account account represents GoBank subset our segment market to we Walmart, that and of all

to Our through programs subset our represents Account GoBank all Consumer that market as Business and channels, Dot, of digital account our is such a we directly Services and and Walmart, segment retail of Rush. Green consumers our

business of Green plus enterprise within and to Account represents of which Settlement the and Bank, services market Processing the represent our and segment account Services bring Our segment. we PayCard products Dot programs, and remaining programs Platform entirety results our the that through BaaS partnerships includes our Service

call. trends for segment results of X% revenues from continued year-over-year, on the discussed principally our reflect from Services declined performance Non-GAAP Account the our last Our QX our we Business. Consumer

due the accounts As has over faced previously not partly course to Simply communicated, and attrition programs, execution. XXXX. is due competition put, offset account partly certain to acquiring challenges new we are of natural of of Consumer our Business sufficient which number to the a

course with exhibited within direct account deposit comprised existing Platform while successful percentage Our in Services partners growth over new of a the expanding XXXX. We were accounts. continue strong our adding Business relationships of high be programs has of partners, to and

partners In platform from In holder fees disbursement Settlement as Processing grew growth SimplyPaid also and for of non-GAAP grew the QX, addition Services services. cash to accelerated year-over-year, and and our our use our management XX% earned XX% we account BaaS transfer segment fees to directly our by our from revenues activity, volume program our volume XX%.

BaaS grow to in our some XXXX promote to third-party our in the the programs unlimited within to margin both half growth quarter SimplyPaid concentrated experienced partners. marketing continues product and and partners volume for new due Business. back continued largest growth our from transfer Cash of reflects our compression disbursements, efforts existing Consumer in We largely year-over-year of our

as of $XXX a a expectations EBITDA we $X.XXX result of fewer rate year lower diluted our non-GAAP shares results, effective $X.XX. billion, XXXX of non-GAAP non-GAAP and full outstanding. over Our EPS performed EPS recap To revenue weighted of our and tax adjusted million, average delivered

sheet on excellent We debt. unencumbered ended with year to operations generate XXXX. December flow million balance We cash the $XX continue the minimal of with our million XX, for cash from year ended and $XXX

Let guidance. me financial shift XXXX to

we to be expect billion range at QX than representing November billion, growth better total our operating $XXX and non-GAAP This Bill million; provided organic on between EPS between $X.XX. midpoint; call. and in be now EBITDA to between be the is $XXX we the stated, X% to $X.XXX non-GAAP revenues to earnings $X.XX slightly million to $X.X As adjusted

will flat are Platform growth consolidated Business money Services as of our The Services from will revenues. expectations transfer in as volume Our our for both processing and our and movement we come segment of volume. and account which XXXX movement relatively XX% refer services, growth our to to our our business respect growth over programs. services refund generate continued this cash Processing With we money tax follows: expect in Settlement

in respect accounts. With expect programs Services active we the growth direct deposit account primarily accounts Platform continued to

BaaS We expect existing launch continue and market space in our to continue in to that programs account partners to as share grab the well expand will new as partners more with PayCard XXXX.

achieve we BaaS fees our margin. to that effort increase Additionally, earn our a from We EBIT partners year-over-year. we directly target models we expect pricing concerted a to made the tighten such

a our In XXXX. the active Consumer decline, trends in moderate we half will moderate believe accounts the Business, declines we ROI will considerable deposit help to because some to and continue amount accounts of pick active direct those initiatives that spent in will to of to account our expect time improved but retail have second We expect XXXX and up an acquisition. marketing refining in launch produce strategy

Combining accounts our value highest direct throughout programs, Service throughout expect total moderates our while actives Platform we account decline rate XXXX. and deposit QX of accounts and XXXX, to decline Consumer the in grow active which are

holder from trends Volume it will account increasingly Gross revenue segment, Dollar more an in Account from closely As at because revenues fees we partners. become Services activity our aligns BaaS metric, GDV from our with important and or look

absorbing, basis transformation initiatives, between our from decline a increased interest in and interest share renewal In expect in XXXX, the result another a support to new of rate MoneyCard the with to income people Walmart, our of capabilities. continued investment, compress, an and and we XXX margin depressed digital program, as points, a operational associated revenue EBITDA our technology, rate environment a of partnerships

Our will adjusted depressed, largely from decline, be the in EBITDA. non-GAAP year-over-year EPS

to the our Additionally, our over past XXXX, of compared years. depreciation to CapEx is a approximately million, few expense to $XX increase as result expected investments in $XX million

And XXXX. We effective still around anticipate with XXXX. expect million. share We in be strong non-GAAP average rate will generate diluted XX.X in XX%, count weighted cash a flows, approximately of operating our tax line to

XXXX, In growth In our focus share expect capital, and our XXXX, on we cash corporate and to purposes. repurchases. invested flow CapEx, in investments other we

to XX% expect first around non-GAAP guidance. be full to adjusted be XXXX to the we XX%, our of EBITDA year XX% For approximately revenues quarter, and

And business. in we As the quarter in experienced revenue, first terms a reminder, some is of our seasonality and EBITDA. adjusted typically the highest

First concentration quarter impacted seasonality processed a of ecosystem. transactions, is through by cash-related our

Service And Business. restoring our our Consumer In into summary, Business, momentum the Platform we for remain health focused expect XXXX. of continued on

With that, I'll the Thank hand you. it back operator for questions. over to

Question-and-Answer Session

Operator

And Please of come Thank question ahead. will El-Assal you. Barclays. from Ramsey go [Operator Instructions] our first

Ramsey El-Assal

taking Nice Guys tonight. results, question. my and thanks for

the account to to selling ask that of So not sort mix more I thought wanted on through as more shift dependent active of stabilizing the of decline, channels. about, as cards sort businesses of kind are other traditional

programs, of You'd kind planned. have some you mentioned

that granularity stabilize, in little of And confidence there? to And and decline in on you your decline? more the the more bit expect give level Can address account maybe active you that of to active this -- levers the account year. little us have on a a just sort color those work to you order middle

Bill Jacobs

years. retail that different, think answer today than question I the operates the has couple the in of no is the it There's operated way in States clear. United is pretty last

of where were their Walmart's may earnings retailers. fact, matter as You seen tepid, that other a they said, revenues as store have yesterday,

have going a to money into that store. grabbing the So is off, think J-hook some register consumers we I future. the And people cash the just way in card and not on fact putting at to are operate going really a the a recognize

in program, to going signs we to channel way BaaS And which And I And And our consumers in we that have large then number recognize operate more of that, manner. that, think customer. a are a direct the customers. going gets forward. that's that's why the obtaining consumers are of just interested up

Jess Unruh

And active some on to more provide color Yeah. trends. just

base. a of So the that's penetration about deposit I the direct think platform side house, high

expect we And so grow business, the year-over-year. growing deposit direct and base a to the actives that's as

rest still the consumer cetera, mentioned QX. we the with as year on to spend, the Bill et of relatively of And consistent some get then QX as those trends be cetera. expect side moderate optimize with it, down we our And et will better marketing through

Bill Jacobs

other one add just me let And thing.

cards customers direct becoming we The where customers, deposit into our place universe we card. piece who those people at are look increasing are bought of and the are significant store As the see portfolio. went and a the declining that the of a

majority a historically again. it those had they a And $X sort use store, were overwhelming $X went got to the that on of making people into card, bill, Well, customer. of customer frankly customers. or and they were the never They we one-and-done they pay that

an clearly is standpoint the direct more to is So, an not us. the fact that is happy that and business that much from of valuable. segment We're is declining growing that economic customers a issue deposit

Ramsey El-Assal

you Okay. have there stock follow-up there what Obviously relationship? you comment come helpful. the objectives, in with And hop whether is then expect for me aligned queue. just then their I'll a of Starboard. I in wondering on And Any now. you the comment back any of if an to be that activist terms was would had you're in

Bill Jacobs

the a to they hire spoken company is They Starboard exactly Sure. I the what best we actually wants and and to for on Look the company. what exactly have CEO with By I investor strong want in see to want. Board same a want occasions way They that several prosper. thing now do. that's that's significant have the the do the desire the company. want to us our for them

company. everybody for the both end But who some the I point, this longer CEO. CEO aligned, optimistic quickly the aligned. we And Starboard up we're goals time, be professional. my is. completely at Frankly, the we possible, I I'm If hire different want as then I'm that where exact so been have to we're conversations knows have situation as at And think because no with not may same that the pretty present Starboard

Ramsey El-Assal

taking helpful. my That's Fantastic. very questions. Appreciate

Operator

go William Blair. Please come Our ahead. will from next Napoli Bob of question

Bob Napoli

on the the us of of business today And growth you rate give the you and just is Thank BaaS of business the any feel can Platform for business? the for within BaaS what the question. size growth BaaS the the

Jess Unruh

this. say will I

of was our So I XXXX. was commentary over think in the in XX% we a gave whole as business our Platform consolidated revenues color

coming So, the BaaS and and the that Money the from healthy overall is a can businesses. growth business see Platform on you Processing without that pretty implies specifically, pulling business that predominantly the apart rate Platform

Bob Napoli

margins to over And Okay. the would is investing imagine the business? the versus the what the mean -- Platform the long-term I what medium are on business look Platform would currently? lot a And margins you're business business more then I Consumer like that for there,

Jess Unruh

I would say here, specific margins has on of Consumer the to similar -- too in without that business. getting BaaS particular, contribution

Platform obviously, the -- a that's So of business. a subset

impact interest that margin on of course in. the long-term sort going that's be improvements competition factors lot to the year, over to impacted currently respect different the rates, outlook of this With of investing by outlook, including a we're of operational

we'd an think new long-term opportunity I to CEO like margins. to give So, on the opine

until that CEO So, I'll in. weigh defer the discussion new can

Bill Jacobs

in manner. thing very just And not not, just do trying margin. very revenue have money is sure shareholders' people environment investing of they're while in businesses in any We're or order are let profit, competitive a disciplined are consumers competing make product money make business that to P&Ls for company. to Bob, the that that running on who we an we're a make -- the to businesses to very running of believe the whether a in And their they're we order to have responsible regardless because approach compression appropriate run to we're making I comment protect get in who market. with the with have their a in me to we're important a near-term the margin if a against some competitive us in

over people to win who out our of of frankly going that, I'm out lose are some of money. some because spending margin see companies will other we as compression, run because will that And these business confident irrationally. And time, to not approach we're

Bob Napoli

sneak just how Have product what do that raised between -- What question set do difference have feel gap? a some is these the versus high-growth of new you the that is Green current The equity. last Dot difference the to you And And set their you companies difference? product product the set? in of in. been that narrow lot

Jess Unruh

Yeah.

is So I think the the likely fundamental fee. difference

versus our the set most. see of analysis think sort that than better is of a of similar. lot in is do We cases us set constant We I feature a feature competitors.

is versus for exchange they rewards are I decided think the thus is a grab think getting I who others to factor profit and here doing think land we've strategy. a that main valuable in we what return, provide different have a and

Bob Napoli

Appreciate you. Thank Thanks. it.

Operator

And our Schmidt next Citi. ahead. go question will of Andrew from come Please

Andrew Schmidt

of just Bill. factors Hi, more? documented. factors two for helpful. be think well then Hi, competition. execution a Talk could into comments your versus if wondering little Jess. made my not? controllable But Thanks either affecting question. Business you about competition maybe taking I a the some dig what's view has of Consumer would I'm bit the about component comment execution been you Jess, around from point and sharper what's And these Obviously

Jess Unruh

sure. Sure,

think execution had our we anticipated. I products And issue. in It more is around was XXXX, first So, I maybe than our the marketing later I strategy. launched think think then second

strategy. we've in considerable a the months dissecting our marketing last so, few time spent And here of amount

Nick the name be channels NPV highest have focused on but we'll into prepared those As not help to say going we for are details of competitive us a Bill refine coming per which in mentioned into factors. ROI controllable that channel. the And in and Utton, and gentleman I'd really by process, getting who's of reasons, his remarks, the the

two ensuring spend guidance, and we've efficient is in as ROI possible. as things launching the our marketing So is that and then projected as

Andrew Schmidt

keep understand to mean that. seems the And to these opportunities some efficiency. some we for of that like I in should expense other there large just base, of It could of point you to rightsize opportunities be competitors. investment with there there or But then, the view some Thank you're on just of up definitely base? sort expense an buckets from are need But opportunities here. spend consider? doing are the ROI Okay. I terms

Bill Jacobs

there can in of There can terms we Yes. things do. things There we are doing base. are things better, we're and that that expense the are do

give couple me Let a examples. you of

Our certain XXXX. a numbers hiring included of number employees in

a We freeze. are hiring in

today in frankly go hire Chris request, hire will our So, in in anybody order that I assume and about being those it. we I the people but some to for put both that plan for have to And the XXXX. expense and we're pretty us through people, tough we in company

the the expense So that's one base. ways of that can manage we

how than certain not It's that that money the that We term on, add want may have or that's a some put ideas the going amount money, money. trying CEO needs a call way better we've CEO He of another of is not that have plan we the certain budget budget some the money XXXX, put but that the me, to we're I in to rather as CEO later the to she that's should for but of for also which in decide fund. side. assuming new allocated fund a spend spent, for manage amount to money and the expense be we've to

And or we're to And we in diligent The terms a manage could of spend been really third those lot else I'm about, management because not signed, those opportunity of trying have as vendor whether company-wide basis at going thing I buy doing, as we we our are getting we there's contracts. programs new as been can. we in whatever pretty back a have frankly, think as the as and we on of looking all excited it's is well which cards that expenses money. are contracts

really the I think your response point throughout my overall in to question company. is

on diligent way. right very money sure that spending Chris we're spends that think company how are money look and making a disciplined I we're and the I taking the

Chris Brewster

a other which service; we is Bill on the follow is could largely underway. operational substantial amount substantial and of fraud customer area is if customer guess, technology lift, automation around two prevention. in projects I the around the One just that well focused service have of that briefly company some that I involves

at operational in been arguably we not think have I those either of types activities. state-of-the-art of

projects, the there be and completion I that think side. us financial these have meaningful the we expect to some to I on should there benefits cost with for of or close

Bill Jacobs

the I much of think at as – we've add request Chris to Board. on for I four in for we XX years is the we I'd we interim business are had would it both believe period be appropriate for company on like these didn't it run month the the here that obviously that were an the job to were run because decided if was let But in the pretty to what that assignment, we next caretaker for operate jobs or and and going early a CEO. three a while a as have new looking

So possible. strong some a platform CFO, the as substantial – wanted with we the CEO company, to because made Chris' wanted we we we've as just in phenomenal wanted public give a obviously to get background get changes new going company as and to

Andrew Schmidt

Very helpful. Thank it. you, comprehensive. Very guys. Appreciate

Operator

with Andrew Please from And go ahead. our come next question will Jeffrey SunTrust.

Andrew Jeffrey

Hi, guys. to the of Maybe conversation little market view afternoon. it about a nature on of weave Appreciate to go this of you taking back ask you want bit competition and I marketing you the whole. elaborate perhaps how a and Bob's kind and into question as the the questions

Green banks, think the neo-bank the notwithstanding up gunning in the if to customers feel on level to out of the irrespective frame bit they're going Do And fact the – are is that's you the in opine U.S. consumer could the that what's mainstream you little answer the market? be structurally biggest that for need brand, behavior about that to banks, on one. the a Dot a you're i.e. Chime, JPMorgan of the against one I'll just perhaps name of established defend throw customers, news marketing or Chase, big the maybe and underbanked happening kind how and unbanked margins like you more maybe compressed does that going So

Bill Jacobs

using Chime example. – or say don't is to is – Chime I we're can say JPMorgan you I be an think Dot. don't Green think can trying if trying can we as to that be that whether you Chime

"I've time I going I'm is they spend try can. I ways money. think And can, raised are. of going get saying at to present as many bunch to I'm I money regardless as as And Chime of in different many customers the a to that who

have somebody as example, I'm is at for of money customers point when or And a these either come buy going you going and along me customers." And way out some with figure I money for to to the to team, think NBA customers sponsorship a going say, you brought to these to since lot using, okay buying me make going at look all when Chime I example just understand Chime an how and up you're basketball that's bring in that's for be it's profitable I hard to me to customers to me. a

that a to that. consumers coming or rate on day do Chime pay deal Chase Green Dot at announces the after savings, obviously they're got when to They're last that. coming above they've in Citi not do Clearly market to

think going out it us banks. get that We later. with So figure the they're they're at see just point on we see them this we're to and saying sometimes direct competing I competing big against -- them the everybody business.

Andrew Jeffrey

maybe. Okay. All right. that circle I'll back on Yes. off-line

Bill Jacobs

time. Any

Andrew Jeffrey

to differentiating perhaps reaffirming structure? wouldn't about to thinking that's integration integral commitment One that on of of out in bank the submitted I've point vertical the And bank and some that Historically, and the And things and critical of customers that Dot structure. in in there's you yesterday. that a mentioned -- has of see I'm this because we always I and have. have lot do is now Steve Are you ownership obviously. just side Club going been won And marketplace? differentiation the a Lending you market a without to buying the the you clarify too Platform believe talk want you referenced BaaS Green

Bill Jacobs

with bank single Right. a We in of from advantage have And deal bank that bank you a visiting most done really part this been ranges the what strongly corporate that I've a a In if my not or a hear customers. our I of we being being strong customers think every job, Dot. competitive you we business. major six spent wouldn't one from you we weeks believe last were of why is seven I've those Green with to Platform a business on that doing time is like

you So it us customers bank being have you're on And a to give committed influence customers to think my going in does manage I professional me enough the and know my you I giving competitive to and one that to I I'm that have said us customers I a that manner. relationship of I'm I advantage. because enough of a our really know

but about I going to And me do company me affect was strong believe me our be competitors same have that structure. bank use. could and to said this wrong to we is Green do I doesn't you and I what to with if work And that bank If going to customer, about it. that that of Because really business scared a have the to don't worry meant have And me that's nothing you customers. that. we've can well or XX do out, to -- personally up the I you my to set banks other said don't it to severely One and death. me something that is worry could with Dot, customers, the that had other forward this my you customer with message committed

Andrew Jeffrey

Okay. That's helpful.

Thanks. jump pretty as regulatory I'll concerned. point as far I'm back important in a up queue. the bring You

Operator

Our Mayank Please next come & Needham of will question Company. go Tandon ahead. from

Kyle Peterson

Thanks Kyle Hey, for taking Peterson questions. good evening. actually is This Mayank. for on the

talked you kind get know and lot kind acquisition more call guys about have Just the smoothly. color budgeting of you a run think rationalizing of on basis on a a make customer to on process I this product wanted kind little marketing. things a more to little of that can

launching was rate there's So guys of we in budget products? of you the run are should up know I the how guys as about and XXXX going guess in forward new for when marketing been a launched kind like you just legs marketing Unlimited kind think couple such. I

get level color business marketing to of on your wanted just So of kind does I this need? what

Jess Unruh

in I'll and not myself speak ahead Well XXXX get of to XXXX. Sure.

have roughly a we color on channels of in So about I reasons, of maybe any But XXXX. for full competitive spending and of amount whole, that XXXX for money year-over-year a XXXX, don't same we're clearly that. the to did we sort mix expect flat the want marketing as spend behind-the-scenes to different as give for year

Chris Brewster

financial difference is go been market just marketing -- would some add who's sort to the being research executive. it's the the I very media seasoned consumer data-driven, to do exactly of operational us very, product much Utton to a has extent all to year knowing what Nick on to after by about year that tailoring going research really And maybe very the brought use versus very, messages you that your after given and the telling what you're you. based market that and very that

been effect I in bringing us not here. he's necessarily that always think So of set disciplines have a marketing

Bill Jacobs

Priceless the operated the for know throw which him of MasterCard changed whole for because But ran founder we we how well. you which the of point the of name a several of -- competition campaign, sure reference, really I'm And marketing Nick structure MasterCard Utton just with Nick approach, whole in was most its years. And remember Visa. that just of around,

Kyle Peterson

just as about the gave everything. plays an business XQ That's I then year, guess of we little on bit into a guys business how just through really Okay. think the you of tax outlook know And kind I helpful the color.

be the of benefit in trough consumer seems tax. And improve you here? the the the get of obviously the back trends It year half. platform some start to then XQ XQ should should like and So the of

the I just XQ guess it to trough the is clarify that I probably want like of seems year? So

Jess Unruh

I think you're on path. the right

I bit have of a think the we that back some would in latter a little quarters. in bump initiatives the provide half

think you directionally are I So yeah. correct

Kyle Peterson

That’s luck. color. Good right. helpful Jess. Thanks, All

Operator

question And of will Steven our Kwok Please next come KBW. from ahead. go

Steven Kwok

Thanks questions. for taking my

search. CEO to little down the deeper around wanted drill Just a bit

Dot strategy? implementing in like to CEO CEO the that way wanted to the has strategy outlook he change In forward decided do to path or a going set, of Board the is can towards or that. get forward, how have and on she, the be that's Just the thoughts Green the has and going what -- for the going does is upon potential -- been the come terms

Bill Jacobs

different I think two questions. asked really you So

for think I the Chris approved us the did bottoms-up the the We that the And think Board about to and ago company of asked I asked in about plan by presented the budgeting I numbers. and XXXX. you to pretty consensus January, the month the you strategy about that today. process, about XX Board a did as during we talked and drove which was days

And we is approved engaged that both hired on exactly numbers and be she that in the to the the they job, I manner. basis, company doing company the in that CEO decide the think we're in to he is is the going CEO I right obviously is and look whether direction CEO that that and Board going and going the fairness -- the business. which at think to should that's that that when going or whether believe manage believes the person

that those and dime. get CEO I gotten her the I achieve it I've maybe achievable and and his later company. terrific better today we're the a have going a to think on year. or out turn numbers, we big laid a level leadership high a And the that will numbers. battleship -- are that think under pretty in leadership is things confidence as numbers into hire we'll the doesn't by I And more more the that This

Steven Kwok

the to the of million what coming follow-up the Could about my raised raised $X just guidance. was at we million a incremental think $XX revenues, we just margin EBITDA million while you it $XX to basis? was And on? was around margins essentially revenues of it. dollars How If talk $XX longer-term should Got million. about the look on

Jess Unruh

to respect the soft that referring what In specifically? above is revenue you're guide -- the to incremental that

Steven Kwok

Yes.

$XX raised Just being it to flat. $XX revenue you million the versus million

to And EBITDA flow-through forward of wondering revenues line? what so the going the just I'm

Jess Unruh

way in guide. be our soft another would phrase Maybe call QX -- it it was to Yes. we did -- a that was

course of did the assumptions. Over around months we four lot of a the three, next fine-tuning

it's saying can't planning guided And a say well budgeting are results from you or more the see that it I two plan. soft what versus process would fulsome peg one guide things. full what plan to I entails. in So that going and that through changed to

Steven Kwok

Thanks questions. for taking Got my it.

Operator

ahead. And Please our next of question will come go Sabadra Bank. from Ashish Deutsche

Ashish Sabadra

Thanks for taking question. my

So question retail a strategy. the on

about talked new several retail initiatives. You

You Walgreens channel. consumer tepid -- the highlighted retail And the also at but the presence and Family then Dollar. in rollout

the that we you channel? do with footprint even in you what edge in front? consumer how thoughts the that about the that can essentially retail moat that channel? retail channel tepid a how think the have any channel? really with And So retail channel the do provides you can competitive neo-banks compared have who don't how on reinvigorate to that And the So

Jess Unruh

by obviously, either terms Yes. channel I that compression within growing guess, I'll Green channel is in saying retail start market the the maintaining macro out in of or growth. has Dot share.

category So overall, that of coming we're background shrinking the as within through a of doing visitors well doors. sort

it -- and to sale. in place pegs get that obviously point ring new get We at of XXXX, in easier have launch new packaging some makes plans up to

of slow So sort and decline to few start there's the again. business account initiatives help in the acquisition up picking a retail in there

Chris Brewster

things done. there are operational can be relatively that Yes. But straightforward some

with at early a has you -- And in that to j-hook impact automated the wound in these One volumes. relatively on a of situation the over line. call some cash should difficult buy off the being retailers the this helpful. load lanes retail shifts be from register that away negative automated cards checkout. I'll That's in going it's and of to and what conventional scanner And and dealt certainly scanner dealt year get that the is in relatively our where up brick-and-mortar was pull it And we with.

Ashish Sabadra

That's And business question some opportunity on new for any an capital There just do the So shareholders generates looked a very of of quick year stock have you the we cash. to as cash. structure? is is lot And the return given of a unencumbered that structure And maybe Thanks. there on do think -- million to free cash. compared are wait has good capital the capital how at particularly, The where CEO $XX interim the helpful. allocation, Board management or even back? before we about that to the changes cash front? a is

Bill Jacobs

where spent business sense. thinking buyback. not be time have to basis We time We've makes in a manner in whether get doing on about build successful trying think operating a investing we a business the business, it should we the spent P&L the

and to or a excellent at you question buyback. an think whether have utilization more three do carefully we six to over should should the raised I months next will that capital we look not

believe I that -- think is fundamentally growth a company. I company the

company that. And that there's I think products some I I great got have a -- that think a has in. great think and at to the we we'll future look invest

things the of more time probably One the new spend will CEO on.

Ashish Sabadra

Thanks, helpful. That’s Bill.

Operator

of from ahead. Joseph our question Please next go will Vafi come Canaccord. And

Joseph Vafi

search time you Hey, for on clearly enterprise as the And if more bit wondering, same that's is Thank and the little CEO afternoon. itself. Consumer kind Business businesses sets? and very of of can a you're of drive wondering a customer those I finding forward how more grew this both the they're strategic. delve an but time given two kind bigger we becoming gentlemen. was at contemplating Clearly, up could Green different that business Dot individual different

Bill Jacobs

to two Just to pieces puzzle. that more add

We a we firm. are a also technology also are firm and regulated

for completely the not search the So is CEO straightforward.

And world's can search imagine are the is a what to of has firm understand using unregulated search we're that kind little and person We the at that's job this a – to environment As firms. and broad obviously understand And the from payment’s said to we've technology starting But foremost the those there. an of think environment. in to and that you of regulated strokes the bit it's is gets match. of has are And point that's least given regulated nobody go that we the of probably to to and has operate in environment is Korn/Ferry. as instructions a one a them operating different. who sort the opposed we've industry, course understand like perfect sort

Chris Brewster

CEO possible as not openings made have we couple add somebody that would in recall to set the that. get positions. in decision that But Once Bill a a and those four C-suite will thoughtful of I on what think may it of you also is that we've find to we have on – what I what we the is that a gets can be and may other C-suite done of all to XXX other scores be be inform couple the parameters. capability about

Joseph Vafi

worthy initiatives, then number the like any the it's hopefully exit it not. I'm year? comfort those stable not that account continue this lot. year? the Consumer just to more, deposit we customers deposit That's do wondering, P&L helpful. as going direct if other highest overall sounds maybe one And how focusing direct if the keeping and on getting change actives the value bit just to little it's and perhaps, are a there we it's on to grow Thanks or it Business gain a then here is strategic it and And as forward in business direction moves

Jess Unruh

Yeah.

good of direct house. in deposit consumer on a job coming customers. base the is but to most the DD growth retention Obviously, longer the a of business. important Unlimited equally DD platform largely really think customers of come the has the side, the from off front, On platform side of I product mean, attracting the The I done

sort the the side. – six job whole the products Unlimited course account the focus legacy added are as doing has in months, not also last product over of we Consumer but customers. So on We a of of the Dot retaining the deposit to direct better only need seen holders a portfolio we've incremental Green

it's XXXX. of natural of trend So that the legacy over course been churn on a these the some products, means of sort

that the throughout XXXX. launches life have base, so, cycle some existing those come customer to And Unlimited underway and those we pushing better other to also product will some customers, market initiatives while then

Operator

Blair. from will question come final Napoli of Our go Bob William ahead. Please

Bob Napoli

just There first I brought on them targeted were Jess, would. you new I you was that just launch the wanted think, last were you. to I several follow-up Thank Unlimited mean one. up. other the for products year if and just launches product

give additional products? I you can have budget think the the there those this for in included are at launch least of any Do color And new others. products? two you on year,

Jess Unruh

Yes.

of we a On XXXX. have be a will at year be will we sale. set Z to Separately, last side, And we accompanied sort sort new point and will of easier we new features that MoneyCard that have It'll by answer of will valuable. up be that of the launching about product Walmart ring new find in in packaging consumer first of consumers that that Gen talked our I'll two the half product that believe have parts.

the as of well Gen both all platform So first, will the our the as apps, behind the on product of consumer be backbone side, mobile Z technology the side.

And it's of spent comfortable we'll Z mobile So, and with strategy to itself, for the lot a sort of product been an adviser that our evaluate launch go-to-market new with platform Utton, the our all to in we're approach. Gen we've forward-looking respect a separately, when time marketing streamlined product our applications. with of Nick investment

Bill Jacobs

are into excited we've remarks XXXX. will that mentioned TailFin. I'm Walmart it. add Walmart I'll my one thing. be confident joint extremely other releasing TailFin called And I and that, we both, And we with in venture about in entered first product this our

a So factory product Dot-only is comes product, of that though working it's Dot Green a Walmart. Green out it not the with

I we joint they've plans a big venture honored team us. actually few very ago this done really has to joint a day Walmart they willing that feel And know, not with to some a may or may venture. for spent do and full you got And ventures are the joint week Walmart and

it. excited very I'm So, about

Bob Napoli

Great. a the company? to -- And employee the Nick is company, of consultant is is an just he or

Bill Jacobs

with an is and firms happy others. clear and to it's make No, I'm an asked marketing is to not other because, Nick actually full-time after MasterCard us you independent now very that gigs -- that consultant is and question we several E-TRADE Nick He that that employee. sure he having -- wanted that an

Bob Napoli

it. Appreciate you. Thank

Operator

presentation. as for call. This concludes our today's you as attending our question-and-answer Thank session well

disconnect. now You may

Green Dot (GDOT) 19 Feb 202019 Q4 Earnings call transcript