Green Dot Corporation recently released its 10-Q report, providing a detailed look into its financial performance for the three and six months ended June 30, 2024. The company, a financial technology and registered bank holding firm, operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. It offers various financial products, including deposit account programs, prepaid debit cards, secured credit programs, and money processing services.
In the 10-Q report, Green Dot reported total operating revenues of $407.1 million for the three months ended June 30, 2024, representing an 11.3% increase over the prior year's comparable period. For the six months ended June 30, 2024, the total operating revenues stood at $859.1 million, marking a 9.8% increase over the same period in 2023. The growth in operating revenues was primarily driven by higher revenues in the Business to Business Services segment and, to a lesser extent, in the Money Movement Services segment. However, the company experienced a decrease in revenues in its Consumer Services segment due to various factors, including the non-renewal of certain retail partner programs and economic challenges for consumers.
On the expense side, Green Dot reported total operating expenses of $430.8 million for the three months ended June 30, 2024, representing a 19.3% increase over the prior year's comparable period. For the six months ended June 30, 2024, total operating expenses amounted to $872.2 million, marking a 20.1% increase over the same period in 2023. The increase in operating expenses was primarily driven by higher processing expenses and other general and administrative expenses, partially offset by decreases in sales and marketing expenses and, to a lesser extent, compensation and benefits expenses.
The company also reported a net loss of $28.7 million for the three months ended June 30, 2024, compared to a net income of $578,000 in the same period in 2023. For the six months ended June 30, 2024, Green Dot reported a net loss of $23.9 million, representing a decrease of 165.5% compared to the net income of $36.6 million in the same period in 2023.
The 10-Q report also highlighted various factors contributing to the financial performance, including the impact of certain BaaS partner programs on total gross dollar volume, the decline in active accounts, purchase volume, and number of cash transfers in the Consumer Services segment, and the increase in tax processing revenues in the Money Movement Services segment.
Today the company's shares have moved 13.6% to a price of $10.05. If you want to know more, read the company's complete 10-Q report here.
