Q4 2021 Green Dot Corp Earnings Call
[music].
Good afternoon, and welcome to the Green Dot Corp, fourth quarter 2021 earnings Conference call.
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I would now like to turn the conference over to Tim Willi Senior Vice President of Investor Relations and corporate development.
Please go ahead.
Thank you and good afternoon, everyone. Today, we are discussing green dots fourth quarter 2021 financial and operating results.
Following our remarks, we'll open up the call for questions. Our most recent earnings release that accompanies this call and webcast can be found at IR Dot Green Dot Dot com.
As a reminder, our comments may include forward looking statements and expectations regarding future results and performance. Please refer to the cautionary language in the earnings release and in Green dots filings with the Securities and Exchange Commission, including our most recent Form 10-K and 10-Q for additional information concerning factors that could cause actual results.
<unk> to differ materially from the forward looking statements.
During the call, we will make reference to our financial measures that do not conform with generally accepted accounting principles for the sake of clarity unless otherwise noted all numbers. We talk about today will be on a non-GAAP basis information may be calculated differently than similar non-GAAP data presented by other companies quantitative.
<unk> of our non-GAAP financial information to the directly comparable GAAP financial information appears in today's press release and <unk>.
This call is property of the Green Dot Corporation and is subject to copyright protection now I'd like to turn the call over to Dan.
Thank you Tim good afternoon, everyone.
And thanks for joining us to discuss our fourth quarter 2021 results.
We finished the year with solid performance with GAAP revenue growth of 14% and GAAP EPS more than doubled to 85, we saw this growth even as we invested in our platform navigated a variety of industry wide challenges and saw the impacts from stimulus began to recede George will share more on our financial performance.
Shortly.
A lot has happened and changed since I joined in early 2020.
Though I underestimated and could not have predicted many of the challenges we face I am proud of how we adapted and of the progress we've made and I'm also confident in our plan forward.
I look at 2021, we made substantial progress to strengthen our organization, which will serve us well in 2022 and beyond we.
We built out our management team to complement our efforts in 2020 over the course of 2021, we added new executives to head our bass customer care and compliance we hired a new CTO and finished the year by bringing on George Gresham as our new CFO COO. These positions are all critical to moving the company forward.
And providing experienced leadership for the organization and our employees, having the entire team in place for 2022 will be something that we have not had since I joined the company.
Under George's leadership, we are strengthening our internal decision, making and prioritization processes elevating them to a level that has not existed at green dot in the past. This will ensure that initiatives are being prioritized correctly and they were given the proper resources to ensure optimal outcomes.
We also appointed a new chief product officer, and effectively streamlined how we prioritize design build and deliver new products, both directly and through our partners. We began our technology transformation, which as George will highlight will not only provide financial benefits and efficiencies.
We also dramatically strengthened our positioning and capabilities as a provider and partner.
Finally, and most importantly, our culture and people.
Anyone who knows me.
Note that I am a big believer that people are the heart of a successful company, we have fully embraced work from anywhere and our judiciously hiring quality employees nationwide.
400 talented and experienced folks for more than 40 states have joined Green Dot since my arrival almost two years ago in that same period, we grew revenues by 29%, but kept total head count virtually flat.
This focus on increasing talent density will drive efficiency as we become a more engaged accountable workforce and developed a culture built on trust and responsibility.
As we step into 2022 I remain very bullish on the value of the unique and powerful set of assets. We have at Green Dot first the collection of partners, we work with both in the physical and digital distribution of our products is unmatched.
Our engagement and alignment with these partners and their channels continues to deepen.
Walmart for example, Walmart has just begun offering first of its kind deposit and withdrawal service and there are 4700 plus stores nationwide.
Powered by Green Dot this new service enables customers to quickly and seamlessly access their bank or credit Union account without having to visit a branch.
This creates meaningful value and further financial inclusion for the more than 150 million customers, who transact with Walmart each week, especially as more and more bank branches close.
Amazon Flex recently announced enhance rewards on its Amazon Flex guard for a limited time in March to help drive spending volume and account growth.
Turning to our partnership with Intuit.
We have seen exciting growth from the quickbooks checking products over the last two years and their account base has quadrupled since January of 2021 with a third being businesses that had been operation for less than a year.
These are just a handful of examples how green dot is working with partners to innovate and great products designed to drive growth by bringing seamless and affordable banking to all.
And after we complete our tech transformation, we will be able to build and deliver more products services and feature functionality to our partners and distribution channels with greater efficiency and flexibility.
Second we're improving the way our leaders and teams collaborate internally, enabling us to pursue more growth opportunities across channels and partners. For example, our pay card business now works closely with our consumer segment to create pay card solution for our retail partners.
Third.
We have an ecosystem that can be monetized and will be more valuable as it grows.
Across our channels and partners, we touch millions of consumers as they go about their daily lives consider this scenario and you have or driver shops at one of our retail partners and pays with a physical card or Apple pay.
That scenario touches our platform in three unique places and presents opportunity to create valuable experiences for the customer the employer and the retailer all within our ecosystem.
Now trying to monetize that ecosystem across numerous platforms and antiquated technology would be cumbersome at best.
And we have one technology platform that path to success and monetization will be much easier.
Fourth we maintain our belief that having our own bank is a valuable differentiator that is under monetize but that will change.
Ownership of the bank is something that partners have routinely mentioned to me as being very valuable to them.
As we implement the new technology and processing platform at the bank, we will have a truly integrated product development and operating infrastructure and our value to our partners will only increase.
And finally, the Green Dot network.
This vast network of more than 90000 locations has long provided a convenient cash in cash out ecosystem, which many other digital banks and fintech used to provide a valuable omnichannel experience to their customers.
It's also an important extension of our brand marketing and customer engagement strategy as it places products like Goto Bank front and center and the stores our customer shopping regularly.
In closing while the last two years presented challenges in situations more complicated than we estimated.
It has also accelerated a seismic shift in consumer behaviors.
The opportunity is much larger than I thought when I joined Green Dot.
But most importantly, I am confident that the moves we have made.
And our tech transformation will position green dot to deliver exceptional products and experiences for our customers and partners and strong revenue and EPS growth for our shareholders with that I'll hand, it over to George.
Thank you Dan and good afternoon, everyone in the fourth quarter, we delivered non-GAAP revenue of $321 million up 17% year over year.
As mentioned on our last call based on our strong performance. During the first three quarters of 2021, we made the prudent decision to elevate our investments in strategic areas during the fourth quarter.
Including our modern banking platform customer service and go to bank.
This resulted in an adjusted EBITDA of $34 million, which was relatively consistent with the prior year.
Our non-GAAP EPS of <unk> 27 declined 13% versus the prior year due primarily to an increase in our non-GAAP effective tax rate.
Increase in the rate is largely a timing matter as our full year non-GAAP effective tax rate in 2021 is up slightly from 2020.
As it relates to our segment results and key trends.
In our consumer services segment, we achieved revenue and profit growth despite headwinds to our key metrics.
Revenue grew $6 5 million or 4% to $161 million. While segment profit grew 2 million 254 million also up 4%.
The adoption of profitable features by our customers continues to contribute to an expansion in our revenue per average active.
Allowing us to maintain our margins during the quarter, while investing in our business.
Our gross dollar volume and act as both declined 17% due in part to the exploration of unemployment benefits.
As a reminder, in Q4 2020, the federal government provided supplemental unemployment benefits of $600 per week.
Those benefits were reduced to $300 per week during 2021 and expired in early September 2021.
And our <unk> services segment gross dollar volume purchase volume and the number of active accounts grew year over year by 48%, 30% and 15% respectively.
The increase in these metrics were the result of continued growth in our bass programs, both existing and new and growth in our employer programs. As a result of the strong growth in these metrics, our <unk> segment revenue increased by $45 million or.
58% to $122 million.
As was the case during the first three quarters of 2021, our <unk> margin declined versus the prior year due to bass partner arrangements that contained a fixed profit.
Nonetheless database services segment profit increased about $6 million or 42% to $19 million as we expanded margins for other bass programs and in the employer business.
And our money movement segment revenue declined year over year, primarily due to our decision not to renew a significant low margin reload partner during Q4, 2020, which we've discussed on our prior earnings calls.
Overall, our money movement segment revenue declined $8 million or 17% and profit declined $1 million or 10%.
For the year, we delivered GAAP revenue net income and diluted EPS growth of 14%, 105% and 102% respectively.
non-GAAP revenue growth of 16% to $1 4 billion led by strong growth of 51% in our <unk> segment revenue.
Consumer services segment revenue increased 12% during 2021.
Stimulus payments and supplemental unemployment benefits were additive to our results during the first part of 2021, but as these programs expired the benefits to our customers and green dot have diminished.
For the full year, adjusted EBITDA increased by 5% to $217 million.
Our adjusted EBITA margin declined approximately 150 basis points versus the prior year.
A few factors contributed to this.
First we are elevating investments in strategic areas to support green dots long term growth initiatives.
Second the stimulus programs of the first part of the year increased our customer service costs and transaction losses.
Finally, best partner arrangements that contains a fixed profit have contributed to the decline in our adjusted EBITA margin.
Finally, non-GAAP EPS increased 5% to $2 21 side.
I mentioned the impacts various stimulus programs had on our business during 2021, but it might be helpful to keep in mind that we estimate our customers received approximately $7 billion in the form of stimulus supplemental tax credits enhanced unemployment benefits and other benefits related to the government's response.
The pandemic.
These income supplements represented gross dollar volume to us of which about 60% was received in the first quarter and 15% in each of the second and third quarters with the balance received in the fourth quarter of 2021.
We do not expect these amounts to recur in 2022.
Turning to our financial position our business continues to produce strong cash flow generating $163 million of operating cash flow during 2021.
We ended the year with cash at the holding company of $80 million.
Our cash balance the strength of our cash flow together with our $100 million revolver available to us provides us sufficient liquidity to invest in our strategic priorities and selectively returned cash to our shareholders.
Evidenced by our share buyback announcement today.
I would like to now move to discuss our technology initiatives in more detail over the last several quarters you have heard us talk about the technology transformation that we have been undertaking and will begin to implement as we move through 2022 and into 2023.
This is not a trivial undertaking and it involves an enterprise wide effort across green dot to be successfully completed.
These efforts include one the consolidation of processing activities into in house processing capability to the implementation of modern real time enterprise risk management tools.
Three the creation of a modular digital front end framework and or a cloud native stack conversion.
Each of these activities are critical to the success of Green Dot.
Once completed they are not only substantial near term cost benefits to be realized but there are important strategic benefits as well.
2021 saw us invest substantial time and effort in preparing for the upcoming transformation and conversions.
Now in the testing phase and expect to begin the heavy lifting in the second quarter.
While we look to make substantial progress in 2022 and look forward to providing you with tangible updates on these calls the reality is that this is a process where pragmatism and discipline are required to ensure orderly smooth conversions and will result in substantial completion of this exercise by mid 2023.
We would expect to wrap up the migration of the largest of the third party platforms. The implementation of the risk management tools.
And to have completed the build out of the front end framework by the end of 2022 or very early 2023.
The cloud migration will continue into 2023 and additional third party platforms will be consolidated on an orderly basis into 2024.
Our focus on ensuring a top tier outcome will result in us being patient.
When it comes to shutting down platforms. This is the correct and responsible thing to do and therefore, we expect the financial benefits realized in 2022 will be modest and.
And will materialize as we move through the latter part of the year.
That said, we'll now providing guidance for 2023, we would expect a more meaningful impact on our financials and 2023 with a substantial portion of these investments being realized in 2024.
Our current project timelines, our expectation is that the minimum cost savings, resulting from this investment will be approximately $35 million on an annualized basis.
Let me take a moment to be clear about what I need these savings are compared to our cost structure as we exit 2021 using that year as a baseline.
And include directly traceable processing costs that we're currently incurring related to two processes, which we will avoid in the future net of incremental costs associated with the licensing of our in house platform.
Additionally, we expect to obtain savings related to the technology cost. We are currently incurring to maintain our integration with the external processes, while the transition is underway of about $14 million annualized.
These savings will be largely reflected as reductions in capital expenditures.
Such reductions will benefit cash flow, but not be reflected in adjusted EBITDA.
This estimate does not include <unk>.
Potential savings related to the consolidation of additional processing platforms that will be converted in the future.
General operating efficiencies, we expect to achieve across the organization, resulting from our simplified operating environment or revenue enhancement opportunities. We Additionally expect to achieve.
These additional savings and opportunities are more difficult to measure at this stage of the project. Although we expect to have more insight into these opportunities by our Q3 earnings call.
We expect that a majority of these savings will be achieved in 2023 with each subsequent year, capturing additional savings as platforms continue to be converted.
We consider this estimate to represent the floor of the returns to be achieved from this investment.
While cost savings are important the more important driver for this investment as what it will do for Green Dot as we compete in the markets in which we serve we.
We will become a more streamlined and agile company, we will have significantly more efficient and effective product development modular product offerings tailored to any partners' needs and speed to market enhanced risk in consumer care functions, all while being able to deploy new accounts, so very low marginal cost.
This will enable us to grow our partner and customer base more effectively monetize that base with value added products and services and retain them via improved experiences elevated service levels and higher levels of trust in our products.
While much has been done there is still much to do but we are confident that upon completion. This will be a much stronger competitive and valuable company for our customers and our shareholders. When we look forward to giving you updates on our efforts as we move through the year.
Before handing it back to Dan for his closing comments based on the trends we are observing as government stimulus received from the macro environment. We currently expect full year 2022, non-GAAP revenue to be in a range of $1 three nine to 143 billion.
Adjusted EBITDA to be in the range of $225 million to $235 million and.
And adjusted fully diluted earnings per share in a range of $2 22 to $2 35 per share.
Given the timing of the stimulus payments in the prior year. We currently expect the first quarter of 2022 to reflect flat to modest single digit revenue adjusted EBITDA and non-GAAP EPS growth compared to the equivalent prior year quarter.
Understanding that the timing of tax disbursements is the single most important driver of first quarter results.
Given our 2022 expectations, our enthusiasm for our prospects and our current and expected cash balances. We are pleased to announce that our board has authorized a $100 million share repurchase which will be executed through 2022.
Additionally, we are pleased to announce that we intend to hold an investor day in November of this year, where we will be sharing our strategy and expectations for the years ahead based on the investments we have made to make green dot a great company.
Let me now hand, it back to Dan.
Thanks George.
As I look back on 2021, we accomplished quite a bit that will serve as the foundation for Green Dot as we move forward, specifically our people our processes and our technology.
As indicated in our guidance, we expect to continue to see growth in 2022 and look for more attractive growth in the years ahead fueled by a more powerful modern banking platform that will not only deliver financial efficiencies, but also set the stage for a much leaner more nimble more scalable and profitable green dot and <unk>.
As they come.
Look forward to discussing our progress throughout the year on these calls and providing more detail and thoughts about our future when we host an investor day in late 2022.
That will be happy to take your questions operator.
We will now begin the question and answer session.
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Once again that with Star then one to ask a question at this time, we will pause momentarily to assemble our roster.
Okay.
And our first question will come from Ramsey El <unk> of Barclays. Please go ahead.
Hi, guys, it's Damien on for Ramsey, Thanks for taking the questions.
Dan George good to be introduced to welcome.
So.
I wanted to ask.
A higher level question I guess about the investment in the business as it relates to your growth. So you are setting the stage for growth.
Are you still planning to invest.
Invest.
Yes, EBITDA back into the business and when do you think about.
Shifting your focus to letting the earnings start to flow through the model and and maybe if you've given it any thought what you think about the sort of long term margin profile of the business.
Hi, David This is George nice to meet you too.
So.
When we think about these investments I mean of course, the company has been consuming financial resources through 2021 and into certainly the first quarter of 2022 as we.
Essentially add resources to manage this migration or we're about to launch as I mentioned in Q2.
So we do expect some very modest contributions.
EBITDA contributions that will.
Flow through earnings in the latter half of 2022.
But for the most part we expect the returns that I mentioned in my prepared.
<unk> comments too.
Positively impact the company in 2023, and our expectation is that we'll go through EBITDA as opposed to for example, being reinvested into other aspects of our business as you as I think you characterized.
Yes, that's helpful.
That is helpful.
Maybe I'll switch gears then.
And Dan I'm, hoping maybe you can comment.
On your appetite for strategic combinations, obviously, you've talked a lot about the <unk>.
<unk> investment in the business and there's a lot of work to do all that exciting.
I think we've all seen the reports about at certain prepaid asset potentially being up for sale do you want to do M&A. At this point are you focused on organic growth in the business.
Sure.
Damian I appreciate that question because I'm sure if I on minds of a lot of folks.
Yes.
Hi.
I always prefer organic growth to acquired growth.
That being said, we're always going to be looking opportunistically at intelligent ways to grow the business.
When there's interesting assets on the market, we certainly will be looking at them.
Fair enough. Thanks, so much gentlemen.
Thanks Damian.
Okay.
The next question comes from Andrew Andrew Schmidt of Citi. Please go ahead.
Hey, Dan George Tim Thanks for taking my questions and I appreciate the clarity and detail regarding the technology transformation.
I wanted to start off just on the consumer services segment.
Obviously, you know as you called out there's a big headwind from government program roll offs, but is it possible to kind of Peel the layers back and talk about the health of new customer acquisition, how that's trending.
Whether that's healthy areas.
Areas of improvements things like that just curious on the new customer front.
Any observations there would be helpful. Thanks.
Yes, Andrew this is Dan I'll take the first shot at this George can add if he wishes.
Yes.
Yes.
Our whole approach on customer acquisition with our Gucci Bank product from the very beginning was one about quality not quantity.
You've heard me on these calls talking about our focus on acquiring customers commit to our product committed relationship and the biggest indicator of that is when they sign up for direct deposit and so on.
Our pricing of our products are designed to encourage and support customers at making a commitment to us.
And so what I can say is that.
Okay.
Can you, even even with all the activity out there and lots of spend by others.
Our customer acquisition costs, when we look at growing the direct deposit base.
Within our bounds of.
Target bonds are saying, what we said.
And what.
What we see is is when we choose to spend.
We were able to acquire customers and the reason why I say when we choose to spend.
What we're sensitive to as others in the market. If they are not spending aggressively and bidding at prices. We may back off until until cost has come more reasonable.
Got it and then answer your questions.
Yes, Dan.
Focus on unit economics, and high quality customers I appreciate that.
And then next question on the <unk>.
Technology transformation timeline, I guess more about what happens between now and then obviously youre not going to stand still I assume you still have a lot of efforts in the work from a product perspective, you mentioned better monetizing the bank et cetera, but does this technology transformation G. Now.
Call. It mid 2023 does it inhibit your ability at all to develop and rollout new products or.
Should we expect you to to continue to rollout new products at a healthy clip and any any insight there would be helpful. Thanks.
Sure Andrew I appreciate that actually.
Spent the day yesterday with.
Our chief product officer, and in a couple of our business leaders.
And this is one of the topics of discussion and the short answer is no it's not going to delay us and we are working on parallel fronts to rollout.
Meaningful products.
And.
Even before the technical transformation is complete and doing an awful lot of design build work so that when the transformation is complete then we.
We follow the heels of that great.
Very quickly.
With new products.
So let me Andrew I'm going to just jump in.
First question that you've asked gives us a good opportunity to contrast, what happens today versus what we expect in the future as it relates to product development. So for example, if the company rolled out a new product feature today.
In our direct to consumer channel of course, and that feature becomes available for that channel, but if we wanted to then develop that feature for retail or for one of 100 different partners within retail or within partners within Bath et cetera, each of those platforms needed to be independently engineered in order to.
Configure the particular product characteristics across you can you can imagine the permutations that we're talking about so we do produce product and features we're doing that every day of course.
Imagine in our post.
Integration World.
Many of these products are out of the box in the sense that our card management system and core processing system will have these product features pre configured. So if you take overdraft as an example, 40 pre configured attributes to it if we wanted to.
Taylor and distribute that product to all of our partners all of our channels all differently all uniquely all customized that's nothing more than a matter of configuration without any engineering work at all so you can imagine.
The difference in speed to market with respect to our ability to go after new product opportunities in that future state.
Yes.
Modular approach definitely makes a lot of sense. So I look forward to seeing that thanks.
Thanks, a lot Dan George I appreciate the comments.
Thank you.
Our next question comes from Tim.
Kevin of Needham. Please go ahead.
Hey, Good afternoon, guys. This is actually Kyle Peterson on for <unk> I. Appreciate you guys taking the questions.
Just wanted to check and see if your guidance assumes kind of any any federal funds rate.
Rate hikes for the coming year.
And maybe if you guys could you just remind us on the impact that changes in the fed funds rate does have.
On your business.
Sure I'll take that call.
The answer is yes, we do we do have an assumption, we think a modest modest and conservative assumption. If you look at the different.
Perspective on what may or may not happen with rates something from for rate changes to eight rate changes I think we're kind of in a more conservative.
Our framework as it relates to the guidance that were giving obviously those rate changes, although we expect some have not happened. So I'd put it on us on the conservative side of it.
To the latter part of your question, we have obviously our portfolio invested in <unk>.
Security is government backed securities that have less short term rate sensitivity, obviously, they have a tenure and they roll off and get repriced et cetera, but we're really talking about the cash balance at the bank, which is substantial and that are sensitive to changes short term changes in the federal funds rate.
Got it.
That's helpful.
And then maybe just a follow up.
On the buyback.
Good to see the announcement today, how are you guys thinking about deploying that 100 million in share repurchase.
Anticipate doing it more on kind of a steady basis or do you think if the share price Scott.
Kind of your view significantly dislocated would you would you step in a little more aggressively.
Chunks at certain levels.
Yes in general.
While our.
Intention is to execute this methodically over the course of the balance of the year via a <unk> one plan.
That's our general assumption, although I don't want to leave you with the impression that we wouldn't consider and we may consider doing.
More near term transactions in the form of a smaller ASR.
Share repurchase.
Accelerated share repurchase program.
We may do that but our current plan and what is included in our guidance is a steady state repurchase beginning in April ending in December .
Got it.
Helpful. Thanks, guys.
Thanks Carl.
Yeah.
Once again, if you would like to ask a question. Please press Star then one.
And our next question will come from George Sutton of Craig Hallum. Please go ahead.
Hey, guys. This is James on for George Thanks for taking my questions.
So earn earned wage access products and instant payouts seem to be seeing pretty strong demand, particularly as employees are facing hiring and retention challenges can.
Can you talk about how youre addressing those opportunities what you view as your Differentiators there.
Any examples of wins in a quarter, our conversations with customers with respect to those offerings.
Sure.
Yes.
This is Dan.
We have that product and feature is something that we are selling through our pay card business at rapid.
And we are feeling very good or by the traction and progress that we're making there.
We have not announced any.
Any wins over the.
The past quarter, but I can't say that we are.
Like everybody else in the market I'm very bullish on our potential with that product.
Yes, Hi, Jeff I'd, just add of course that that particular channel has.
Many many many small wins every month so no individual win rises to the level of <unk>.
External press release, but.
Yes.
That channel is growing very well, it's very healthy business very well run business EW, a we think.
Empathized Dan's comments is an extraordinary opportunity for that business.
And the features within AWS product may not be that differentiated.
From one AWS AWS operating to another but what we have is a differentiated advantage is hundreds and hundreds of installed pay card clients to sell into.
So.
We're very excited about that product over the course of the next few years.
Perfect.
Last quarter, you certainly touched on this beyond the rack strategy.
Any progress you can share there in terms of level of interest or when we might see some development.
I think prudently.
Currently share right now is we're still engaged in really good conversations with some partners on that and.
Everybody is well.
Even with each passing day as more and more things press towards digital are partners are more interested in the solutions, we can bring them nothing yet to announce them.
Yes.
Got it.
And then lastly could.
Could you just touch on the Walmart relationship I mean, you touched on that expanded deposit, which all serve us in job postings about you're doing more work with them, but obviously a lot of noise out there with the <unk> JV. So I think any color you would be willing to share there I think would be helpful.
Yes, I really I can't comment on anything with the JV partnership but.
I continue to comment on as you know we have a 20 year plus working relationship with Walmart BIOLASE years remaining on our existing contract as evidenced by what we announced today.
Our our solution.
Enables millions of consumers that you asked to see Walmart locations as your bank branch.
Making deposits and withdrawals and so.
That's talked about rolling out our.
The overdraft product with Walmart Moneycard last year.
I feel very good about our partnership and relationship with Walmart.
Thanks for taking my questions.
Thank you.
Our next question is a follow up from Andrew Schmidt of Citi. Please go ahead.
Hey, guys. Thanks for taking my follow up.
I was wondering if you could just talk a little bit about just how youre thinking about.
Active account growth in 2022 for consumer services.
Obviously, there's a balance there between active account growth and.
And productivity or revenue per average active but just curious if you could give us any thoughts if you think about active account growth given the.
Stimulus headwinds.
The other comp issues that.
We will face next year. Thanks.
Yes.
Yes, thanks al.
Oh I'm sorry go ahead no go ahead, George I'm, just going to okay, you'll probably get more quantitative answer I would assume the flash and flower. So you go ahead.
Alright with that.
I would just reiterate the quality versus quantity sort of approach that we have and <unk> got yes still optimistic matter George why don't you go ahead give maybe give them a little bit more.
Thanks, Dan.
Yes.
To put a little a little subtlety around your question and I'm going to talk about efforts and are in the context of the total account activity and I think that when we think about consumer.
Sure.
The consumer business largely track my general comments here.
Firstly I think when we think about our overall account account trends.
I'm going to start way back in December of 'twenty.
Because what's important about that period was right at the end of December was.
The major government stimulus.
Event that occurred within the last days of 2020 and that would have had had the effect on us having activated some accounts that were otherwise sitting dormant right deposits are paid and so our account number is probably got a little bit of a boost in that very end period.
Then obviously as we've trailed through 2021.
Whatever accounts were here just for the stimulus benefits.
So treated or are in the process of a trade off of trading off and so as we look into 'twenty, two and what what our guidance is based on generally the general assumption.
Okay.
As I think youll see our seasonal trends.
Where you have a dip from Q3 to Q4, and then you have a lift in Q1 into Q2 et cetera, We would expect a similar pattern going into 'twenty two.
Well I would say that we do expect to end the year with account growth 22 over 'twenty one although I think if you were looking at the average accounts.
On the platform in 'twenty, one versus our assumptions for 'twenty. Two you would see a decline on average with an up swing in the exit.
And I think youre going to see similar pattern specific.
To the consumer services business as well.
Okay.
Very helpful and then.
And then if I can sneak one more in just maybe help folks kind of from a modeling perspective.
Within the context of the outlook.
How the balance of growth.
Think about the balance of growth in consumer.
Consumer b to B and money movement.
It seems like.
We should see something similar to this year, where.
And you can kind of see you be outperforming on a relative basis.
Any commentary in terms of how the.
Segment shake out would be helpful. Thanks.
Sure well.
Yes.
To try to Dodge a little bit on giving individual segment level guidance I'll say of course, starting with money movement, we had a grow over issue over the last year because of the account we've made reference to many many times.
We're kind of rounding the bend on that so we would expect to not have.
A continuation of declines in that in that channel.
We would continue to expect our <unk> services channel to have the highest growth rate.
Across the segments and we would expect.
<unk> services to have a very very modest growth rate.
The way I might put it.
Perfect very helpful. Thank you very much for the time guys I appreciate it yeah you bet.
Okay.
This concludes our question and answer session I would like to turn the call back over to Dan Henry for any closing remarks.
Thank you operator, and thank you everybody for your time today I appreciate it very much as always we're available for follow up questions. Just as you did.
For the most efficient direct that through Tim Willi.
Thank you all take care.
Okay.
The conference has now concluded. Thank you for attending today's presentation and you may now disconnect.
Okay.
Yes.
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