Green Dot Corporation (NYSE:GDOT) Q4 2014 Earnings Conference Call - Final Transcript

Jan 29, 2015 • 05:00 pm ET


Green Dot Corporation (NYSE:GDOT) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, and welcome to the Green Dot Corporation Fourth Quarter 2014 Earnings Conference Call and Webcast. Please note, this event is being recorded.

I would now like to turn the conference over to Mr. Chris Mammone, Vice President of Investor Relations for Green Dot. Mr. Mammone, you may begin.

Chris Mammone

Thank you, and good afternoon, everyone. On today's call, Steve Streit, our Chairman and Chief Executive Officer; and Grace Wang, our Chief Financial Officer, will discuss 2014 fourth quarter and full year performance and thoughts regarding our 2015 outlook. Following these remarks, we will open the call for questions.

For those of you that have not yet accessed the earnings press release and the slide presentation that accompanies this call and webcast, it can be found at Additional operational data have been provided in a supplemental table within our press release.

(Forward-looking Cautionary Statements)

With that, I'd like to turn the call over to Steve.

Steven Streit

Okay. Thank you, Chris, and welcome, everyone.

On the call today, we'll discuss our Q4 and full year 2014 results and bring you up to date on our business. Of course, we'll also announce our 2015 guidance.

For the main body of today's call, we're going to take you through a new deck called Today's Green Dot. The deck is designed to help you better understand the larger and more diversified Green Dot of today. You can find the deck on our IR site or just shoot Chris Mammone an e-mail and he'll give one out to you right now.

We're excited to tell you about today's Green Dot because we feel like we've made tremendous progress over the past few years in transitioning Green Dot from a monoline prepaid card program manager with a large reliance on one private label program into large-scaled FinTech-powered branchless bank with multiple products, multiple channels and no one program forecast to represent more than around 30% of our non-GAAP total operating revenues, nor more than around 15% of our adjusted EBITDA in 2015.

Okay. So first, let's begin with the financial review. In Q4, Green Dot posted non-GAAP total operating revenues of $153 million, representing growth of 6% year-over-year in the quarter. Adjusted EBITDA growth was quite a bit more robust with $26 million of adjusted EBITDA being generated in the quarter, representing year-over-year growth of 47%.

Looking at our full financial results for the year. Both our revenue and adjusted EBITDA results reflect new company records. We posted non-GAAP total operating revenues of $610 million, representing a year-over-year growth rate of 5% and full year adjusted EBITDA of $132 million, representing a year-over-year growth rate of 28%. This is the highest annual growth rate we've achieved for the adjusted EBITDA line in nearly 5 years as a public company.

The strong performance on the bottom line, some 15% higher than our original full year guidance, was primarily the result of continued double-digit growth in our branded products, which have higher margins than our private-labeled products, increasing customer