Los Angeles Business Journal

Green Dot’s Quarter Better Than Expected

By Deborah Crowe Thursday, January 31, 2013

Shares of Green Dot Corp. rose more than 4 percent in after-hours trading on Thursday after the prepaid debit card provider reported solid fourth-quarter revenue growth.

After the markets closed, the Monrovia company reported net income of $10.4 million (24 cents a share), down 24 percent from the same period a year earlier. Revenue rose 15 percent to more than $137 million.

Analysts surveyed by Thomson Reuters on average expected profit of 21 cents a share on revenue of less than $125 million.

“Our double-digit revenue growth during the fourth quarter is indicative of the strength and resiliency of the Green Dot brand at a time when consumers have greater product choices than ever,” Chief Executive Steve Streit said in a statement.

The quarter included higher costs for sales and marketing as Green Dot faces increasing competition from other companies that have entered the prepaid card segment. Green Dot is attempting to broaden its core customer base of lower-income people who lack bank accounts by recently launching a smartphone-based bank, GoBank, that targets younger customers.

Shares earlier closed down 4 cents, or less than 1 percent, to $13.40, but rose 4.5 percent in after-market trading.