Los Angeles Business Journal

Green Dot Mixed on Expectations

By Deborah Crowe Friday, October 28, 2011

Helped by revenue growth in its prepaid debit card unit, Green Dot Corp.’s adjusted third-quarter net income exceeded analysts’ forecasts, although revenue was lower than expected.

The company now expects full-year operating revenue to come in at the lower end of its previous forecast.

The Monrovia prepaid debit card company late Thursday reported net income of $13.3 million (30 cents per share), compared with $7.7 million (20 cents) in the same period a year earlier. Revenue rose 30 percent to more than $115 million, missing Wall Street expectations.

Adjusted for one-time items, net income was 39 cents per share. Analysts surveyed by Thomson Reuters on average expected adjusted per-share profit of 38 cents on revenue of nearly $121 million.

Reloadable debit cards activated during the quarter rose 33 percent to 1.96 million, with the number of active cards up 27 percent to 4.15 million. Gross dollar volume jumped 63 percent to $4.1 billion.

“The continued robust growth in our key top-line metrics, including new cards activated, first time reloading customers, and gross dollar volume loaded through our network, all indicate that our products' value proposition is increasingly resonating in the marketplace,” Chief Executive Steve Streit said in a statement.

The company now sees full-year adjusted operating revenue at the lower end of its $490 million to $505 million outlook, and adjusted EBITDA at the high-end of its earlier $117 million to $123 million outlook.

Shares were down $1.39, or 4 percent, to $32.77 in Friday midday trading on the New York Stock Exchange.