Green Dot faced a challenging 2023 but sets sights on recovery in 2024

Green Dot Corporation, a leader in fintech banking and payment solutions, disclosed its 2023 financial outcomes in a February 27, 2024, 8-K filing, revealing a year of mixed fortunes. The company navigated through various obstacles, including rising interest rates and strategic investments, yet remains hopeful for an upward trajectory in 2024, backed by a promising business pipeline and fresh partnerships.

In 2023, Green Dot witnessed a 4% year-over-year increase in operating revenues, reaching $1.50 billion. Nonetheless, the company's net income plummeted by 90% to $6.72 million, with adjusted EBITDA and non-GAAP EPS also experiencing significant declines of 28% and 37%, respectively, to $170.87 million and $1.62.

Looking ahead, Green Dot anticipates growth in both revenue and adjusted EBITDA, despite facing regulatory challenges, including a proposed consent order from the Federal Reserve Board focusing on compliance risk management. A $20 million liability related to this consent order was accounted for in the fourth quarter of 2023.

For 2024, Green Dot projects non-GAAP operating revenues between $1.55 billion and $1.60 billion, a modest increase, with adjusted EBITDA expected to range from $170 million to $180 million. However, a slight decrease in non-GAAP EPS is anticipated.

Despite these hurdles, Green Dot's balance sheet remains robust, featuring $55 million in unencumbered cash as of year-end 2023. The company's strategic focus on growth and operational efficiency, amidst a challenging economic and regulatory landscape, positions it for potential recovery and advancement.

GDOT shares plunged over 17% in after hours trade following the company's earnings release to test the stock's all-time lows recorded last fall.