Q2 2024 Green Dot Corp Earnings Call

August 8, 2024

Good afternoon, and welcome to the Green Dot second quarter 2024 conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key, followed by zero.

Operator: at the second quarter of 2024 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Operator: 2nd Quarter 2024 conference call. All participants will be in listen-only mode.

Operator: Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Tim Willi, Senior Vice President, Finance. Please go ahead.

Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. To withdraw your question, please press star, then two. Please note, this event is being recorded.

After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then 1 on your telephone keypad. To withdraw your question, please press star, then 2.

Tim Willie: I would now like to turn the conference over to Tim Willie, Senior Vice President Finance. Please go ahead.

Please note, this event is being recorded.

I would now like to turn the conference over to Tim Willi, Senior Vice President, Finance. Please go ahead.

Tim Willie: Thank you, and good afternoon everyone. Today we are discussing Green Dot's second quarter, 2024 financial and operating results. Following our remarks, we'll open the call for your questions. Our most recent earnings release that accompanies this call and webcast can be found at ir.green.com. As a reminder, our comments may include forward-looking statements and expectations regarding future results and performance. Please refer to the cautionary language and the earnings release and a green dots violence with the Securities and Exchange Commission, including our most recent Form 10-K and 10-K. Thank you for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements.

Tim Willi: Thank you and good afternoon everyone. Today we are discussing Green Dot's second quarter 2024 financial and operating results. Following our remarks, we'll open the call for your questions. Our most recent earnings release that accompanies this call and webcast can be found at IR.GreenDot.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 Dot's 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 to differ materially from the forward-looking statement.

Speaker Change: Our most recent earnings release that accompanies this call and webcast can be found at ir.greendot.com. As a reminder, our comments may include forward-looking statements and expectations regarding future results and performance.

Unknown Executive: at the second quarter of 2024 conference call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero.

Speaker Change: Please refer to the cautionary language in the earnings release and in Green Dot's 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 to differ materially from the forward-looking statements.

Unknown Executive: After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two.

Tim Willie: During the call, we will refer 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-gap basis. Information may be calculated differently than similar non-GAAP data presented by other companies. Quantitative reconciliation of our non-GAAP financial information to the directly comparable GAAP financial information appears in today's press release.

Tim Willi: During the call, we will refer to 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. This information may be calculated differently than similar non-GAAP data presented by other companies. A quantitative reconciliation of our Non-GAAP Financial Information to the Directly Comparable GAAP Financial Information appears in today's press release. The content of this call is the property of the Green Dot Corporation and is subject to copyright protection. Now, I'd like to turn the call over to George.

Speaker Change: During the call, we will refer to our financial measures that do not conform with generally accepted accounting principles, or the sake of clarity unless otherwise noted. All numbers we talk about today will be in an on-gap basis.

Unknown Executive: Please note, this event is being recorded.

Tim Willie: I would now like to turn the conference over to Tim Willie, Senior Vice President Finance. Please go ahead. Thank you and good afternoon everyone.

Speaker Change: Information may be calculated differently than similar non-GAAP data presented by other companies.

Speaker Change: Quantitative Reconciliation of our non-gap financial information to the directly comparable Gap financial information appears in today's press release.

Tim Willie: Today we are discussing Green Dot's second quarter, 2024 financial and operating results. Following our remarks, we'll open the call for your questions. Our most recent earnings release that accompanies this call and webcast can be found at ir.green.com. As a reminder, our comments may include forward looking statements and expectations regarding future results and performance. Please refer to the cautionary language and the earnings release and a green dots violence with the securities and exchange commission, including our most recent form 10K and 10K.

Unknown Executive: The content of this call is property of the Green Dot Corporation and is subject to copyright protection.

Speaker Change: The content of 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 George.

George Gresham: Now I'd like to turn the call over to George. Good afternoon, and thank you for joining our second quarter earnings call. It was a solid quarter that was generally in line with our expectations, and we continue to make progress on many fronts, including the finalization of our consent order, which you would have all seen by now. Consistent with our prior disclosures, much of the order relates to matters arising and resolved several years ago. I am pleased that we have come to an agreement with our regulators related to these issues, and as you would expect, we have been diligently working to address the requirements contained within the order.

George Gresham: Good afternoon, and thank you for joining us on our second quarter earnings call. It was a solid quarter that was generally in line with our expectations, and we continue to make progress on many fronts, including the finalization of our consent order, which you would have all seen by now. Consistent with our prior disclosures, much of the order relates to matters arising and resolved several years ago.

George: Good afternoon and thank you for joining our second quarter earnings call. It was a solid quarter that was generally in line with our expectations and we continue to make progress on many fronts including the finalization of our consent order which you would have all seen by now.

Tim Willie: Thank you for additional information concerning factors that could cause actual results to differ materially from the forward looking statements. During the call, we will refer to our financial measures that do not conform with generally accepted accounting principles or the sake of clarity unless otherwise noted. All numbers we talk about today will be on a non-gap basis. Information may be calculated differently than similar non-gap data presented by other companies. Quantitative reconciliation of our non-gap financial information to the directly comparable gap financial information appears in today's press release.

Speaker Change: Consistent with our prior disclosures, much of the order relates to matters arising and resolved several years ago. I am pleased that we have come to an agreement with our regulators related to these issues and, as you would expect, we have been diligently working to address the requirements contained within the order.

George Gresham: I am pleased that we have come to an agreement with our regulators related to these issues, and, as you would expect, we have been diligently working to address the requirements contained within the order. Ensuring we are good stewards of our customers' funds is our top priority and one we take very seriously. Security, risk management, and regulatory compliance are the most important aspects of our job and critical to our mission of being responsible stewards of our customers' money and our shareholders' capital.

George Gresham: Ensuring we are good stewards of our customers' funds is our top priority and one we take very seriously. Security, risk management, and regulatory compliance are the most important aspects of our job and critical to our mission of being responsible stewards of our customers' money and our shareholders' capital. This experience will make us a better company for all of our stakeholders, and I continue to believe the investments not only ensure the safety of our customers' money, but will also prove to be a competitive advantage. I look forward to these standards being applied uniformly and transparently across the embedded finance and payments of landscapes.

Speaker Change: Ensuring we are good stewards of our customers' funds is our top priority, and one we take very seriously.

George: Security, risk management, and regulatory compliance are the most important aspects of our job and critical to our mission of being responsible stewards of our customers money and our shareholders capital. This experience, while costly, will make us a better company for all of our stakeholders.

Unknown Executive: The content of this call is property of the green dot corporation and a subject to copyright protection.

George Gresham: This experience, while costly, will make us a better company for all of our stakeholders, and I continue to believe the investments not only ensure the safety of our customers' money but will also prove to be competitive. I look forward to these standards being applied uniformly and transparently across the embedded finance and payments landscape. During the second quarter, we delivered results that were in line with our internal expectations as we navigated remaining headwinds associated with deconversions in the first half of 2023 and elevated spending on compliance and regulatory events.

George Gresham: Now I'd like to turn the call over to George. Good afternoon and thank you for joining our second quarter earnings call. It was a solid quarter that was generally in line with our expectations and we continue to make progress on many fronts, including the finalization of our consent order, which you would have all seen by now. Consistent with our prior disclosures, much of the order relates to matters arising and resolved several years ago.

George: And I continue to believe the investments not only ensure the safety of our customers' money, but will also prove to be a competitive advantage.

Speaker Change: I look forward to these standards being applied uniformly and transparently across the embedded finance and payments landscapes.

George Gresham: During the second quarter, we delivered results that were in line with our internal expectations as we navigated remaining headwinds associated with the conversions in the first half of 2023 and elevated spending on compliance and regulatory analysis. We kept our heads down, stayed focused on our goals, and saw continued progress on a variety of fronts. In addition to the regulatory work we have been doing. We are making steady progress and pragmatically moving forward on our plan to continually improve Green Dot's performance and return to growth.

Speaker Change: During the second quarter, we delivered results that were in line with our internal expectations as we navigated remaining headwinds associated with deconversions in the first half of 2023 and elevated spending on compliance and regulatory initiatives.

George Gresham: I am pleased that we have come to an agreement with our regulators related to these issues and as you would expect, we have been diligently working to address the requirements contained within the order. Ensuring we are good stewards of our customers funds is our top priority and one we take very seriously. Security, risk management and regulatory compliance are the most important aspects of our job and critical to our mission of being responsible stewards of our customers' money and our shareholders' capital.

George Gresham: We kept our heads down, stayed focused on our goals, and saw continued progress on a variety of fronts, in addition to the regulatory work we have been doing. We are making steady progress and pragmatically moving forward with our plan to continually improve Green Dot's performance and return to growth. Our most urgent priorities have been and remain, first and foremost, compliance. Ensuring we are good stewards of our customers' funds is demonstrated by building exceptional risk management capabilities, implementing state-of-the-art compliance-focused technologies, and driving a culture that puts stewardship, compliance, and partner and customer needs first.

Speaker Change: We kept our heads down, stayed focused on our goals and so I'll continue progress on a variety of fronts. In addition to the regulatory work we have been doing.

Speaker Change: We are making steady progress and pragmatically moving forward on our plan to continually improve green dots performance and return to growth.

George Gresham: Our most urgent priorities have been and remain first compliance. Ensuring we are good stewards of our customers' funds is demonstrated by building exceptional risk management capabilities, implementing state-of-the-art compliance focus technologies, and driving a culture that puts stewardship, compliance, and partner and customer needs first. Second, revenue, building sustainable and predictable business pipelines and onboarding capabilities to replenish partners in revenue streams lost in prior years for both Green Dot Corporation and Green Dot Banks can remain financially healthy for years to come, and third, margins. Being good stewards of our investor funds by managing costs, improving margins, and bringing our product to market at low marginal cost.

Speaker Change: Our most fearsome priorities have been the end remaining first compliance.

George Gresham: This experience will make us a better company for all of our stakeholders and I continue to believe the investments not only ensure the safety of our customers' money but will also prove to be a competitive advantage. I look forward to these standards being applied uniformly and transparently across the embedded finance and payments of landscapes. During the second quarter, we delivered results that were in line with our internal expectations as we navigated remaining headwinds associated with the conversions in the first half of 2023 and elevated spending on compliance and regulatory analysis.

Speaker Change: Ensuring we are good stewards of our customers funds is demonstrated by building exceptional risk management capabilities, implementing state-of-the-art compliance focused technologies, and driving a culture that puts stewardship, compliance, and partner and customer needs first.

George Gresham: Second, revenue. Building sustainable and predictable business pipelines and onboarding capabilities to replenish partners and revenue streams lost in prior years so both Green Dot Corporation and Green Dot Bank can remain financially healthy for years to come. And third, margin, being good stewards of our investor funds by managing costs, improving margins, and bringing our product to market at a low marginal cost. Let me now hand it over to Jess for his comments before I make some additional comments regarding these priorities.

Speaker Change: Second, revenue, building sustainable and predictable business pipelines and onboarding capabilities to replenish partners and revenue streams lost in prior years, to both green.corporation and green.banks can remain financially healthy for years to come and third margins.

Speaker Change: being good stewards of our investor funds by managing costs, improving margins, and bringing our product to market at low marginal cost.

George Gresham: We kept our heads down, stayed focused on our goals, and saw continued progress on a variety of fronts. In addition to the regulatory work we have been doing. We are making steady progress and pragmatically moving forward on our plan to continually improve Green Dot's performance and return to growth.

Jess Unruh: Let me now hand it over to Jess for his comments before I make some additional comments regarding these priorities. Jess?

Speaker Change: Let me now hand it over to Jess for his comments before I make some additional comments regarding these priorities. Jess?

Jess Unruh: Thank you, George, and good afternoon, everyone. Non-GAP revenue grew 11% year-over-year, primarily from continued growth in our B2B segment and modest growth in our money movement segment. Jess at EBIDA of $30.9 million, the non-GAAP EPS of $0.25, though decreased from last year due to second-year headwinds in retail, portfolio of sunsetting in our direct channel, and partner program deconversions at early 2023. At the same time, we've incurred incremental expenses associated with our ongoing investment in regulatory and compliance initiatives, while benefiting from a reduction in processing expenses from last year's processor conversion.

Jess Unruh: Thank you, George, and good afternoon, everyone. Non-GAAP revenue grew 11% year-over-year, primarily due to continued growth in our B2B segment and modest growth in our money movement segment. Adjusted EBITDA of $34 million and non-GAAP EPS of $0.25, though decreased from last year due to secular headwinds in retail, portfolio sun setting, and our direct channel and partner program deconversions in early 2023. At the same time, we've incurred incremental expenses associated with our ongoing investment in regulatory and compliance initiatives, while benefiting from a reduction in processing expenses from last year's processor conversion. Our GAAP results for the quarter reflect an incremental $24 million reserve for the final consent order on top of the $20 million reserve established in the previous year.

Jess: Thank you, George, and good afternoon, everyone. non-GAAP revenue grew 11% year-over-year, primarily from continued growth in our B2B segment and modest growth in our money movement segment.

George Gresham: Our most urgent priorities have been and remain first compliance. Ensuring we are good stewards of our customers' funds is demonstrated by building exceptional risk management capabilities, implementing state-of-the-art compliance focus technologies, and driving a culture that puts stewardship compliance and partner and customer needs first. Second, revenue, building sustainable and predictable business pipelines and onboarding capabilities to replenish partners in revenue streams lost in prior years for both Green Dot Corporation and Green Dot Banks can remain financially healthy for years to come, and third margins. Being good stewards of our investor funds by managing costs, improving margins, and bringing our product to market at low marginal cost.

Jess: Adjusted EBITDA of $34 million and non-GAAP EPS of $0.25, though decreased from last year due to secular headwinds in retail. Portfolio is sunsetting in our direct channel.

Speaker Change: and partner program deconversions in early 2023.

Jess: At the same time, we've incurred incremental expenses associated with our ongoing investment in regulatory and compliance initiatives, while benefiting from a reduction in processing expenses from last year's processor conversion.

Jess Unruh: Our GAP results for the quarter reflected incremental $24 million reserve for the final consent order on top of the $20 million reserve established in the previous year.

Jess: Our GAAP results for the quarter reflect an incremental $24 million reserve for the final consent order on top of the $20 million reserve established in the previous year.

Jess Unruh: Now I'll touch on the factors that influence the performance of our segments and will refer you to our press release and quarterly slide deck for our segment results in key metrics. First is our consumer services segment, which is comprised of our retail and direct channels. Consumer segment revenue remains under pressure due principally to the second-year headwinds in the retail channel that continue to impact a number of active accounts on our platform. Year-over-year growth has also been impacted by a program deconversion in the first half of 2023. Excluding this program, segment revenue decline was in the low 20%, and we've generally seen stability, and volume is proactive in a bit of improvement in revenue practice.

Jess Unruh: Let me now hand it over to Jess for his comments before I make some additional comments regarding these priorities. Jess? Thank you George and good afternoon everyone. Non-GAP revenue grew 11% year-over-year, primarily from continued growth in our B2B segment, and modest growth in our money movement segment. Jess at EBIDA of $30.9 million, the non-GAP EPS of $0.25, though decreased from last year due to second-year headwinds in retail, portfolio of sunsetting in our direct channel, and partner program deconversions at early 2023.

Speaker Change: Now I'll touch on the factors that influence the performance that are in segments and we'll refer you to our press release and quarterly slide deck for our segment results in key metrics.

Speaker Change: First is our consumer services segment, which is comprised of our retail and direct channels.

Speaker Change: Consumer segment revenue remains under pressure due principally to the secular headwinds in the retail channel that continue to impact the number of active accounts on our platform.

Jess Unruh: Year over year growth has also been impacted by a program deconverging in the first half of 2023. Excluding this program, segment revenue decline was in the low 20%, and we've generally seen stability in volumes per active and a bit of improvement in revenue per active. Looking forward, as we lap the deconverted program and our new program with PLS begins to ramp, we anticipate a more moderate revenue decline in the latter half of the year. Our direct channel repositioning is progressing well. We phased out multiple legacy brands in Q2 2023, which resulted in year-over-year headwinds.

Speaker Change: You're of your growth has also been impacted by a program you can version in the first half of 2023. Excluding this program, segment revenue decline within the low 20% and we've generally seen stability and volumes for active and a bit of improvement in revenue practice.

Jess Unruh: At the same time, we've incurred incremental expenses associated with our ongoing investment in regulatory and compliance initiatives, while benefiting from reduction in processing expenses from last year's processor conversion. Our GAP results for the quarter reflected incremental $24 million reserve for the final consent order on top of the $20 million reserve established in the previous year.

Jess Unruh: Looking forward, as we last the deconverting program, and our new program with PLS begins to ramp, we anticipate a more moderate revenue decline towards the latter half of the year. Our direct channel repositioning is progressing well. We phased out multiple legacy brands in 2023, which resulted in year-over-year headwinds. Nevertheless, the direct channel revenue is showing signs of sequential stabilization following years of persistent decline. In the quarter, GoToBank continued to see growth in revenue, while legacy forefathers continued to trip. Looking at the quarter on a proactive basis, GoToBank revenue proactive continued to grow at a faster pace than the direct channel of the whole.

Speaker Change: Looking forward, as we laugh with each inverted program, and our new program with PLS begins to ramp. We anticipate a more moderate revenue decline towards the latter half of the year.

Speaker Change: Our direct channel repositioning is progressing well. We phased out multiple legacy brands in 2223, which resulted in year of year headwinds. Nevertheless, the direct channel revenue is showing signs of sequential stabilization following years of persistent declines.

Jess Unruh: Nevertheless, direct channel revenue is showing signs of sequential stabilization following years of persistent decline. In the quarter, GoToBank continued to see growth in revenue while legacy portfolios continued to decline. Looking at the quarter on a proactive basis, GoToBank Revenue Proactive continued to grow at a faster pace than the Direct Channel as a whole. GoToBank currently makes up approximately 75% of the direct channel revenue. As I previously mentioned in our first quarter call, when GoToBank reaches 85% of the direct channel, we will likely stop providing separate commentary on this product.

Speaker Change: In the quarter, GoToBank continued to see growth in revenue while legacy portfolios continued to attrit. Looking at the quarter on a per active basis, GoToBank revenue per active continued to grow at a faster pace than the direct channel as a whole.

Jess Unruh: GoToBank curly makes up approximately 75% of the direct channel revenue.

Jess Unruh: Year-over-year growth has also been impacted by a program deconversion in the first half of 2023. Excluding this program, segment revenue decline was in the low 20%, and we've generally seen stability and volume is proactive in a bit of improvement in revenue practice. Looking forward, as we last the deconverting program, and our new program with PLS begins to ramp, we anticipate a more moderate revenue decline towards the latter half of the year. Our direct channel repositioning is progressing well. We phased out multiple legacy brands in 22 2023, which resulted in year-over-year headwinds.

Speaker Change: Go to bank curly makes up approximately 75% of the direct channel revenue.

Jess Unruh: As I previously mentioned in our first quarter call, when GoToBank reaches 85% of the direct channel, we will likely stop providing separate commentary on this product. Profitability in the consumer segment remains under pressure from the revenue decline discussed. Excluding the program deconversion last year, profit on the consumer division declined in low single digits thanks to effective expense control, reduced risk expenses, and the positive impact of the processor conversion that balanced out some of the revenue declines.

Speaker Change: As I previously mentioned in our first quarter call, when GoToBank reaches 85% of the direct channel, we will likely stop providing separate commentary on this product.

Jess Unruh: Profitability in the consumer segment remains under pressure from the revenue decline discussed. Excluding the program deconversion last year, profit on the consumer division declined in low single digits thanks to effective expense control, reduced risk expenses, and the positive impact of the processor conversion that balanced out some of the revenue decline. Now I'll turn to the B2B segment, which is comprised of our fast and rapid take on our channels. Revenue growth remains driven by a significant large part. It's worth mentioning that aside from the growth from this major partner, the other BASC partnerships grew revenue year over year for the first time in several quarters, even as we navigated through the lingering impact of partner deconversions that occurred in the first half of 2023.

Speaker Change: Profitability in the Consumer segment remains under pressure from the revenue decline discussed.

Speaker Change: Excluding the program deconversion last year, profit on the consumer division declined in low single digits thanks to effective expense control, reduced risk expenses, and the positive impact of the processor conversion that balanced out some of the revenue declines.

Jess Unruh: Now I'll turn to the B2B segment, which is comprised of our vast and rapid-take-art channels. Revenue growth remains driven by a significant vast partner. It's worth mentioning that aside from the growth from this major partner, the other vast partnerships grew revenue year over year for the first time in several quarters, even as we navigated through the lingering impact of partner D2 versions that occurred in the first half of 2023. In terms of our key metrics, purchase volume and active 16 positive momentum following the launch of new partners and growth of existing partners. I'm optimistic that the momentum will persist, and we should anticipate continued year-rear growth from the entire vast channel.

Jess Unruh: Nevertheless, the direct channel revenue is showing signs of sequential stabilization following years of persistent decline. In the quarter, GoToBank continued to see growth in revenue while legacy forefathers continued to trip. Looking at the quarter on a proactive basis, GoToBank revenue proactive continued to grow at a faster pace than the direct channel of the whole.

Speaker Change: Now I'll turn to the B2B segment, which is comprised of our FAST and RAPID-TAKE R-channels.

Speaker Change: Revenue growth remains driven by a significant BASC partner.

Speaker Change: It's worth mentioning that aside from the growth of this major partner, the other vast partnerships through revenue year over year, to the first time in several quarters, even as we navigated through the lingering impact of partnership conversions that occurred in the first half of 2023.

Jess Unruh: GoToBank curly makes up approximately 75% of the direct channel revenue. As I previously mentioned in our first quarter call, when GoToBank reaches 85% of the direct channel, we will likely stop providing separate commentary on this product. Profitability in the consumer segment remains under pressure from the revenue decline discussed. Excluding the program deconversion last year, profit on the consumer division declined in low single digits thanks to effective expense control, reduced risk expenses and the positive impact of the processor conversion that balanced out some of the revenue declines.

Jess Unruh: In terms of our key metrics, purchase volume, and active sustained positive momentum following the launch of new partners and growth of existing partners, I'm optimistic that the momentum will persist, and we should anticipate continued year-over-year growth from the entire BASC channel. Our rapid paycard channel has revenue growth as pricing strategies continue to offset the pressure on active accounts. However, the business continues to face headwinds as the staffing industry, which is one of the largest verticals, has retrenched over the last year and a half. That said, year-to-date sales activity has improved versus last year, and we've initiated several programs designed to boost employer and employee engagement, enhance activations, and improve retention.

Speaker Change: In terms of our key metrics, purchase volume and actives have seen positive momentum following the launch of new partners and growth of existing partners.

Speaker Change: I'm optimistic that the momentum will persist, and we should anticipate continued year-over-year growth from the entire BASC channel.

Jess Unruh: Our rapid-take-art channel have revenue growth as pricing strategies continue to offset the pressure on active accounts. The business continues to face headwinds as the staffing industry, which is one of the largest verticals, has retrenched over the last year and a half. That said, year-to-date sales activity has improved versus last year, and we've initiated several programs designed to boost employer and employee engagement, enhance activations, and improve retention. For the first time in several quarters, we saw modest profit growth in the B2B segment. The vast emissions saw modest growth in profits despite headwinds from the D conversions, while rapid-take-art had solid growth in profits and margin expansion.

Speaker Change: Our rapid paycard channel has revenue growth as pricing strategies continue to offset the pressure on active accounts.

Speaker Change: The business continues to face headwinds as the staffing industry, which is one of the largest verticals, has retrenched over the last year and a half.

Speaker Change: That said, year-to-date sales activity has improved versus last year, and we've initiated several programs designed to boost employer and employee engagement, enhance activations, and improve retention.

Jess Unruh: For the first time in several quarters, we saw modest profit growth in the B2B segment. The BASC division saw modest growth in profits despite headwinds from the B2B conversions, while RapidPayCard had solid growth in profits and margins. Turning to our money movement segment, which is comprised of our tax processing business and our Green Dot Network business, which we refer to as GDN, revenue growth remains driven by our tax processing division, which benefits from a strong tax season. Our GDN business continues to face headwinds that stem from the decline in our own active accounts.

Speaker Change: For the first time in several quarters, we saw modest profit growth in the B2B segment. The BASC division saw modest growth in profits despite headwinds from the B conversions, while RapidPaycard had solid growth in profits and margin expansion.

Jess Unruh: Turning to our money business segment, which is comprised of our tax processing business and our Green Dot Network business, which we refer to as GDN. Ravina Growth remains driven by our tax processing division, which had a strong tax ceiling. Our GDN business continues to face headwinds that stem from the decline in our own active account base. While those headwinds continue to weigh on the quarter, our third-party business saw growth in transactions due to growth of existing partners and new partner launches. Profitability in the segment remains solid as both our tax processing business and our Green Dot Networks are margin expansion in the quarter, with tax processing benefiting from some timing-related items, while GDN continues to focus on managing its expense base.

Speaker Change: Turning to our money movement segment, which is comprised of our tax processing business and our Green Dot Network business, which we refer to as GDN.

Jess Unruh: I'm optimistic that the momentum will persist and we should anticipate continued year-rear growth from the entire vast channel. Our rapid-take-art channel have revenue growth as pricing strategies continue to offset the pressure on active accounts. The business continues to face headwinds as the staffing industry, which is one of the largest verticals, has retrenched over the last year and a half.

Speaker Change: Revenue growth remains driven by our tax processing division, which had a strong tax ceiling.

Speaker Change: Our GDN business continues to stay headwinds that stem from the decline in our own active account base.

Jess Unruh: While those headwinds continued to weigh on the quarter, our third-party business saw growth in transactions due to the growth of existing partners and new partner launchers. Profitability in the segment remains solid as both our tax processing business and our Green Dot network saw a margin expansion in the quarter, with tax processing benefiting from some timing-related items, while GDN continues to focus on managing its expenses. The corporate and other segment reflects the interest income we earn at our bank, net of the revenue share on interest we pay to Bass Partners, as well as salaries, technology, and administrative costs, and some smaller intercompany adjustments.

Speaker Change: While those headwinds continue to weigh on the quarter, our third party business saw gross transactions due to the growth of existing partners and new partner launches.

Speaker Change: Profitability and segment remain solid at both our task-processing business and our green dot networks are margin expansion and poorer. With task-processing benefiting from some timing related items, while GDN continues to focus on managing its expense space.

Jess Unruh: That said, year-to-date sales activity has improved versus last year, and we've initiated several programs designed to boost employer and employee engagement, enhance activations, and improve retention. For the first time in several quarters, we saw modest profit growth in the B2B segment. The vast emissions saw modest growth in profits despite headwinds from the D conversions, while rapid-take-art had solid growth in profits and margin expansion.

Jess Unruh: The corporate and other segment reflects the interest income we earn at our bank. Net of the revenue share on interest we pay to vast partners, as well as salaries, technology, and administrative costs, and some smaller inter-company adjust. Revenue was down from last year, reflecting the lingering impact of a rising rate environment and seasonal declines in deposits of the bank. Expenses were up slightly from last year, as ongoing expense reduction initiatives are offset by the elevated costs associated with regulatory compliance investments.

Speaker Change: The corporate and other segment reflects the interest income we earn at our bank, net of the revenue share on interest we pay to VAST partners.

Speaker Change: as well as salary, technology and administrative costs, and some smaller inter-company adjustments.

Jess Unruh: Revenue was down from last year, reflecting the lingering impact of a rising rate environment and seasonal declines in deposits at the bank. However, expenses were up slightly from last year, as ongoing expense reduction initiatives were offset by the elevated costs associated with regulatory and compliance investments. Now, let me turn to guidance.

Speaker Change: Revenue was down from last year, reflecting the lingering impact of a rising rate environment and seeing what the clients and deposits of the bank.

Speaker Change: Expenses were up slightly from last year, as ongoing expense reduction initiatives are offset by the elevated costs associated with regulatory and compliance investments.

Jess Unruh: Now let me turn to guidance. We are raising our non-GAAP revenue guidance to a range of 1.6 billion to 1.7 billion. We believe our adjusted EBITDA and non-GAAP EPS results may be at the low end of their respective ranges of 170 million to 180 million and a $1.45 to $1.59 based on continued headlines and retail and the timing of expenses associated with regulatory compliance investments. As we think about the back half of the year, our outlook on the cadence of earnings is largely unchanged. At a consolidated level, we anticipate a modest acceleration and revenue growth moving from Q2 to Q3 and a more noticeable increase in Q4 due to more normalized comparisons and the ramp of our new PLS program.

Jess Unruh: We are raising our non-GAAP revenue guidance to a range of $1.6 billion to $1.7 billion. We believe our adjusted EBITDA and non-GAAP EPS results may be at the low end of their respective ranges of $170 million to $180 million and $1.45 to $1.59 based on continued headwinds in retail and the timing of expenses associated with regulatory and compliance investments. As we think about the back half of the year, our outlook on the cadence of earnings is largely unchanged.

Speaker Change: Now let me turn to guidance.

Speaker Change: We are raising our non-GAAP revenue guidance to a range of $1.6 billion to $1.7 billion.

Jess Unruh: Profitability in the segment remains solid as both our tax processing business and our Green Dot Networks are margin expansion in the quarter, with tax processing benefiting from some timing-related items, while GDN continues to focus on managing its expense base.

Speaker Change: We believe our adjusted EBITDA and non-GAAP EPS results may be at the low end of their respective ranges of $170 million to $180 million.

Speaker Change: and $1.45 to $1.59 based on continued headwinds in retail and the timing of expenses associated with regulatory and compliance investments.

Jess Unruh: The corporate and other segment reflects the interest income we earn at our bank. Net of the revenue share on interest we pay to vast partners, as well as salaries, technology, and administrative costs, and some smaller inter-company adjust. Revenue was down from last year reflecting the lingering impact of a rising rate environment and seasonal declines in deposits of the bank. Expenses were up slightly from last year as ongoing expense reduction initiatives are offset by the elevated costs associated with regulatory compliance investments.

Speaker Change: As we think about the back half of the year, our outlook on the cadence of earnings is largely unchanged.

Jess Unruh: At a consolidated level, we anticipate a modest acceleration in revenue growth moving from Q2 to Q3 and a more noticeable increase in Q4 due to more normalized comparisons and the ramp-up of our new PLS program. We believe adjusted EBITDA margins in Q3 to be similar to or slightly improved compared to 2023, while Q4 margins are projected to expand 400 to 500 basis points due to revenue growth and favorable expense comparisons relative to last year. Turning briefly to the, we anticipate mid-teens percent declines in consumer segment revenues for the full year.

Speaker Change: As a consolidated level, we anticipate a modest acceleration in revenue growth moving from 22 to 23 and a more noticeable increase in Q4 to the more normalized comparisons and the ramp of our new PLS program.

Jess Unruh: We believe adjusted EBITDA margins in Q3 to be similar to or slightly improved compared to 2023, while Q4 margins are projected to expand 400 to 500 basis points for revenue growth and favorable expense comparisons relative to last year.

Speaker Change: We believe adjusted EBITDA margins in Q3 to be similar to or slightly improved compared to 2023, while Q4 margins are projected to expand 400 to 500 basis points for revenue growth and favorable expense comparisons relative to last year.

Jess Unruh: Now let me turn to guidance. We are raising our non-gap revenue guidance to a range of 1.6 billion to 1.7 billion. We believe our adjusted EBITDA and non-gap EPS results may be at the low end of their respective ranges of 170 million to 180 million and a $1.45 to $1.59 based on continued headlines and retail and the timing of expenses associated with regulatory compliance investments.

Jess Unruh: Turning briefly to the segments, we anticipate mid-teens percentage declines in consumer segment revenues for the full year. Following 20 plus percentage point declines in the first half, we expect revenue declines to moderate to the mid-teens in Q3 and shift to low to mid-single-digit growth in Q4 as we last programmed e-conversions and portfolio sunsetting in the first half of 2023, coupled with the ramp of our new PLS program. Margins for the year expected to increase about 500 to 500 basis points, as it was also the improvement expected in Q3 and Q4 from improved risk management and cost control efforts.

Speaker Change: Turning briefly to the segments.

Speaker Change: We anticipate mid teams for sensitive clients and consumer segment revenues for full year.

George Gresham: Following 20 plus percentage point declines in the first half, we expect revenue declines to moderate to the mid-teens in Q3 and shift to low to mid-single-digit growth in Q4, as we lap program deconversions and portfolio sunsetting in the first half of 2023, coupled with the ramp of our new PLS program. Margins for the year are expected to increase about 500 to 600 basis points as a result of improvements expected in Q3 and Q4 from improved risk management and cost control efforts.

Speaker Change: Following 20 plus percentage point declines in the first half.

Speaker Change: We expect revenue deployings to moderate to the mid-teens in Q3, and shift to low to mid-sling of the mid-uge growth in Q4, as we've asked program decompersions in Portfolio Sunsetting in the first half of 2023, couples with the ramp with our new PLS program.

Jess Unruh: As we think about the back half of the year, our outlook on the cadence of earnings is largely unchanged. At a consolidated level, we anticipate a modest acceleration and revenue growth moving from Q2 to Q3 and a more noticeable increase in Q4 due to more normalized comparisons and the ramp of our new PLS program. We believe adjusted EBITDA margins in Q3 to be similar to or slightly improved compared to 2023, while Q4 margins are projected to expand 400 to 500 basis points for revenue growth and favorable expense comparisons relative to last year.

Speaker Change: Margins for the year are expected to increase about 500 to 600 basis points as a result of improvements expected in Q3 and Q4 from improved risk management and cost control efforts.

Jess Unruh: In the B2B segment, we forecast full year revenue growth in the mid-30% range, with revenue growth in the second half of the year closer to 30%. Margins are still expected to be down 150 to 200 basis points compared to 2023, but there should be sequential improvement in both Q3 and Q4. I anticipate revenue growth in the mid-to-high single digits from the money movement segment due to the timing of revenues in the tax business. I would expect revenues to be flat year of year in Q3 and mid-to-high single digit revenue growth in Q4 from the continued growth of our third-party business in the Green Dot Network and incremental cash transfer volume from our new PLS program.

George Gresham: In the B2B segment, we forecast full-year revenue growth in the mid-30% range, with revenue growth in the second half of the year closer to 30%. Margins are still expected to be down 150 to 200 basis points compared to 2023, but there should be sequential improvement in both Q3 and Q4. I anticipate revenue growth in the mid to high single digits from the money movement segment. Due to the timing of revenues in the tax business, I would expect revenues to be flat year-over-year in Q3 and mid to high single-digit revenue growth in Q4 from the continued growth of our third-party business in the Green Dot Network and incremental cash transfer volume from our new PLS program.

Speaker Change: In the B2B segment, we forecast full-year revenue growth in the mid-30% range with revenue growth in the second half of the year closer to 30%.

Speaker Change: Margins are still expected to be down 150 to 200 basis points compared to 2023, but there should be sequential improvement in both Q3 and Q4.

Jess Unruh: Turning briefly to the segments, we anticipate mid-teens percentage declines in consumer segment revenues for the full year. Following 20 plus percentage point declines in the first half, we expect revenue declines to moderate to the mid-teens in Q3 and shift to low to mid-single-digit growth in Q4 as we last programmed e-conversions and portfolio sunsetting in the first half of 2023, couples with the ramp of our new PLS program, margins for the year expected to increase about 500 to 500 basis points as it was also the improvement expected in Q3 and Q4 from improved risk management and cost control efforts.

Speaker Change: I anticipate revenue growth in the mid to high single digits from the money movement segment.

Speaker Change: Due to the timing of revenues in the tax business, I would expect revenues to be flat year-over-year in Q3 and mid- to high-single-digit revenue growth in Q4 from the continued growth of our third-party business in the Green Dot Network and incremental cash transfer volume from our new PLS program.

Jess Unruh: Margins are expected to expand 250 to 300 basis points with some modest expansion in the third and fourth quarters year of year. In the corporate of another segment, revenue should be in the mid-to-offer single digits, reflecting our efforts to optimize the year within our cash and investments. Expenses should be up in mid-teens related to our spending on regulatory infrastructure and an increase in expenses in Q4 as a result of the lower bonus support in the prior year.

Speaker Change: Margins are expected to expand 250 to 300 basis points with some modest expansion in the third and fourth quarter year of year.

George Gresham: Margins are expected to expand 250 to 300 basis points with some modest expansion in the third and fourth quarters year over year. In the corp of another segment, revenue should be in the mid to upper single digits, reflecting our efforts to optimize yield on our cash investment. Expenses should be up in the mid-teens related to our spending on regulatory infrastructure and an increase in expenses in Q4 as a result of the lower bonus approval in the prior year. I expect our tax rate to be 22.5% with a fully diluted share count of 54 million shares outstanding. Now, let me turn it back to George.

Speaker Change: In the course of another segment, revenue should be in the mid to upper single digits, reflecting our efforts to optimize yield of our cash in the best sense.

Jess Unruh: In the B2B segment, we forecast full year revenue growth in the mid-30% range with revenue growth in the second half of the year closer to 30%, margins are still expected to be down 150 to 200 basis points compared to 2023, but there should be sequential improvement in both Q3 and Q4. I anticipate revenue growth in the mid-to-high single digits from the money movement segment due to the timing of revenues in the tax business.

Speaker Change: Expenses should be up in the mid-teens related to our spending on regulatory infrastructure and an increase in expenses in Q4 as a result of the lower bonus approval in the prior year.

Jess Unruh: I expect our tax rate to be 22.5% with a fully deleted share count of 64 million shares outstanding.

Speaker Change: I expect our tax rate to be 22.5% with a fully diluted share count of 54 million shares outstanding. Now, let me turn it back to George.

George Gresham: Now, let me turn it back to George. Thank you, Jess. Before taking your questions, I'd like to spend some time discussing the actions we are taking to address the three priorities I've mentioned at the outset of this call. First, on the compliance front, we have been very busy in making substantial investments in our infrastructure. We have built our plan and are allocating these investment dollars after taking into consideration the conversations we have had with our regulatory stakeholders and aligning that feedback with our own internally identified initiatives. Our spending on regulatory and compliance infrastructure in 2024 is anticipated to be 15 to 20 million dollars higher than that in 2022, which is a material and deliberate investment in this area of our company and has been made in the face of partner attrition and a smaller reported active account base.

George Gresham: Thank you, Jess. Before taking your questions, I would like to spend some time discussing the actions we are taking to address the three priorities I mentioned at the outset of this call. On the compliance front, we have been very busy making substantial investments in our infrastructure. We have built our plan and are allocating these investment dollars after taking into consideration the conversations we have had with our regulatory stakeholders and aligning that feedback with our own internally identified initiatives.

George: Thank you, Jess. Before taking your questions, I'd like to spend some time discussing the actions we are taking to address the three priorities I mentioned at the outset of this call.

Jess Unruh: I would expect revenues to be flat year of year in Q3 and mid-to-high single digit revenue growth in Q4 from the continued growth of our third-party business in the Green Dot Network and incremental cash transfer volume from our new PLS program, margins are expected to expand 250 to 300 basis points with some modest expansion in the third and fourth quarters year of year. In the corporate of another segment, revenue should be in the mid-to-offer single digits, reflecting our efforts to optimize the year within our cash and investments. Expenses should be up in mid-teens related to our spending on regulatory infrastructure and an increase in expenses in Q4 as a result of the lower bonus support in the prior year.

George: First, on the compliance front, we have been very busy in making substantial investments in our infrastructure. Thank you. Thank you. Thank you.

Speaker Change: We have built our plan and our allocating these investment dollars after taking into consideration the conversations we have had with our regulatory stakeholders and aligning that feedback with our own internally-identified initiatives.

George Gresham: Our spending on regulatory and compliant infrastructure in 2024 is anticipated to be $15 to $20 million higher than that in 2022, which is a material and deliberate investment in this area of our company and has been made in the face of partner attrition and a smaller reported active account base. The areas we are investing in include improved systems to help us better onboard and verify newly-acquired accounts. Enhanced BSA AML Monitoring and Reporting Systems, Enhanced Fraud Management Systems, and the addition of Internal Audit, Compliance, and Risk Management Personnel.

Speaker Change: Our spending on regulatory and compliance infrastructure in 2024

Speaker Change: is anticipated to be $15 to $20 million higher than that in 2022, which is the material and deliberate investment in this area of our company and has been made in the face of partner attrition and a smaller reported active account base.

George Gresham: The areas we are investing in include improved systems to help us better onboard and verify newly acquired accounts, enhance BSA, AML monitoring and reporting systems, enhance fraud management systems, and the addition of internal audit compliance and risk management personnel beyond the dollars invested. We have been highly focused on changing the culture to one that prioritizes risk management. There are many benefits to these investments in actions. First and most important, they enhance the safeguarding of our customers' deposits and financial transactions, which is an obvious imperative for remaining a strong financial institution. Second, they enhance our end-to-end customer experience, resulting in an improved customer retention, a key lever for improving our profitability.

Jess Unruh: I expect our tax rate to be 22.5% with a fully deleted share count of 64 million shares outstanding.

Speaker Change: The areas we are investing in include improved systems to help us better onboard and verify newly acquired accounts.

George Gresham: Now, let me turn it back to George. Thank you, Jess.

Speaker Change: Enhanced BSA AML monitoring and reporting systems, enhanced fraud management systems, and the addition of internal audit compliance and risk management personnel.

George Gresham: Before taking your questions, I'd like to spend some time discussing the actions we are taking to address the three priorities I've mentioned at the outset of this call. First, on the compliance front, we have been very busy in making substantial investments in our infrastructure. We have built our plan and are allocating these investment dollars after taking into consideration the conversations we have had with our regulatory stakeholders and aligning that feedback with our own internally identified initiatives.

George Gresham: Beyond the dollars invested, we have been highly focused on changing the culture to one that prioritizes risk. There are many benefits to these investments and actions. First, and most importantly, they enhance the safeguarding of our customers' deposits and financial transactions, which is an obvious imperative for remaining a strong financial institution. Second, they enhance our end-to-end customer experience, resulting in improved customer retention, a key lever for improving our profitability. Also, these investments allow us to more efficiently comply with our regulatory obligations, allowing us to grow at scale with effective and enhanced risk management.

Speaker Change: Beyond the dollars invested, we have been highly focused on changing the culture to one that prioritizes risk management.

Speaker Change: There are many benefits to these investments and actions. First, and most important, they enhance the safeguarding of our customers' deposits and financial transactions, which is an obvious imperative for remaining a strong financial institution.

George Gresham: Our spending on regulatory and compliance infrastructure in 2024 is anticipated to be 15 to 20 million dollars higher than that in 2022, which is a material and deliberate investment in this area of our company and has been made in the face of partner attrition and a smaller reported active account base. The areas we are investing in include improved systems to help us better on board and verified newly acquired accounts enhance BSA, AML monitoring and reporting systems enhance fraud management systems and the addition of internal audit compliance and risk management personnel beyond the dollars invested.

Speaker Change: Second, they enhance our end-to-end customer experience, resulting in an improved customer retention, a key lever for improving our profitability. Also, these investments allow us to more efficiently comply with our regulatory obligations, allowing us to grow at scale with effective and enhanced risk management.

George Gresham: Also, these investments allow us to more efficiently comply with our regulatory obligations, allowing us to grow at scale with effective and enhanced risk management. The next priority, revenue generation, is critical to sustaining and strengthening our company and our bank. As you know, coming out of COVID, we ended our partnerships with several key partners and intentionally sons that various consumer brands to streamline our focus on go to bank, resulting in a period of declining account bases and profitability. These factors have been exacerbated by sustained downward pressure on our retail channel. These changes led to reductions in several key metrics, including active accounts, purchase volumes, and cash transfers, as well as total bass partners since 2022.

George Gresham: The next priority, revenue generation, is critical to sustaining and strengthening our company and our bank. As you know, coming out of COVID, we ended our partnerships with several key partners and intentionally sunsetted various consumer brands to streamline our focus on GoToBank, resulting in a period of declining account bases and profitability. These factors have been exacerbated by sustained downward pressure on our retail chain.

Speaker Change: The next priority, revenue generation, is critical to sustaining and strengthening our company and our bank.

Speaker Change: As you know, coming out of COVID, we ended our partnerships with several key partners and intentionally sunset various consumer brands to streamline our focus on GoToBank, resulting in a period of declining account bases and profitability.

Speaker Change: These factors have been exacerbated by sustained downward pressure on our retail channel.

George Gresham: We have been highly focused on changing the culture to one that prioritizes risk management. There are many benefits to these investments in actions. First and most important, they enhance the safe guarding of our customers deposits and financial transactions, which is an obvious imperative for remaining a strong financial institution. Second, they enhance our end-to-end customer experience resulting in an improved customer retention, a key lever for improving our profitability. Also, these investments allow us to more efficiently comply with our regulatory obligations, allowing us to grow at scale with effective and enhanced risk management.

George Gresham: These changes led to reductions in several key metrics, including active accounts, purchase volumes, and cash transfers, as well as total BAS partners since 2022. However, they have also enabled us to more easily streamline and simplify our business as we invested in building a more powerful and efficient platform to serve our direct customers and partners, priming us for steady, scalable, long-term growth. What else have we or are we doing to build our revenue-generating capacity?

Speaker Change: These changes led to reductions in several key metrics, including active accounts, purchase volumes, and cash transfers, as well as total BAS partners since 2022.

George Gresham: However, they have also enabled us to a more easily streamlined and simplify our business as we invested in building a more powerful and efficient platform to serve our direct customers and partners, priming us for steady, scalable, long-term growth. What else have we or are we doing to build our revenue-generating capacity? We have been actively investing in our product features and functionality, and, as I mentioned, improved and simplified our products. We have also been investing in the infrastructure required to onboard partners and evolve with their strategies. Most importantly, we have built out and standardized our business development capabilities.

Speaker Change: However, they have also enabled us to more easily streamline and simplify our business as we invested in building a more powerful and efficient platform to serve our direct customers and partners, priming us for steady, scalable, long-term growth.

Speaker Change: What else have we or are we doing to build our revenue generating capacity?

George Gresham: We have been actively investing in our product features and functionality and, as I mentioned, improved and simplified our product. We have also been investing in the infrastructure required to onboard partners and evolve with their strategy. Most importantly, we've built out and standardized our business development capabilities, and these efforts are starting to bear fruit.

Speaker Change: We have been actively investing in our product features and functionality and, as I mentioned, improved and simplified our products.

George Gresham: The next priority, revenue generation, is critical to sustaining and strengthening our company and our bank. As you know, coming out of COVID, we ended our partnerships with several key partners and intentionally sons that various consumer brands to streamline our focus on go to bank, resulting in a period of declining account bases and profitability. These factors have been exacerbated by sustained downward pressure on our retail channel. These changes led to reductions in several key metrics, including active accounts, purchase volumes and cash transfers, as well as total bass partners since 2022.

Speaker Change: We have also been investing in the infrastructure required to onboard partners and evolve with their strategies. Most importantly, we have built out and standardized our business development capabilities. These efforts are starting to bear fruit. For example,

George Gresham: These efforts are starting to bear fruit. For example, our probability weighted pipeline has more than doubled over the last year. Just last month, after extensive planning and preparation, we successfully launched the PLS Expectations Plus debit card program, which is off to a very strong start. Our tax division, Santa Barbara Tax Products Group, is performing exceptionally well after introducing a market-leading product and technology platform last year. We have renewed an extended contract with some of our largest partners, and most importantly, we're very pleased to announce the renewal and extension of our largest fast partner by revenue for a multi-year period with improved financial terms. We have signed a large merchant processor and an auto lender in our fast group, and are expecting to launch these new partners in early 2025.

George Gresham: Our probability-weighted pipeline has more than doubled over the last year. Just last month, after extensive planning and preparation, we successfully launched the PLS Expectations Plus Debit Card Program, which is off to a very strong start. Our tax division, the Santa Barbara Tax Products Group, is performing exceptionally well after introducing a market-leading product and technology platform last year.

Speaker Change: Our probability-weighted pipeline has more than doubled over the last year.

Speaker Change: Just last month, after extensive planning and preparation, we successfully launched the PLS Expectations Plus Debit Card Program, which is off to a very strong start.

Speaker Change: Our tax division, Santa Barbara Tax Products Group, is performing exceptionally well after introducing a market-leading product and technology platform last year.

George Gresham: We have renewed and extended contracts with some of our largest partners and most important partners. We're very pleased to announce the renewal and extension of our largest BASC partner by revenue for a multi-year period with improved financial terms. We have signed a large merchant processor and an auto lender in our BASC group and are expecting to launch these new partners in early 2025.

Speaker Change: We have renewed and extended contracts with some of our largest partners and most importantly, we're very pleased to announce the renewal and extension of our largest VAS partner by revenue for a multi-year period with improved financial terms.

George Gresham: What else have we or are we doing to build our revenue generating capacity? We have been actively investing in our product features and functionality and, as I mentioned, improved and simplified our products. We have also been investing in the infrastructure required to onboard partners and evolve with their strategies. Most importantly, we have built out and standardized our business development capabilities. These efforts are starting to bear fruit. For example, Our probability weighted pipeline has more than doubled over the last year.

Speaker Change: We have signed a large merchant processor and an auto lender in our BASC group and are expecting to launch these new partners in early 2025.

George Gresham: In our Green Dot Network, we signed a leading embedded finance platform that wanted to strengthen its capabilities and enable its partners and their customers to have access to the convenience that Green Dot Network offers. We also continue to sign and renew partners, including a variety of fintechs and digital banks, demonstrating the differentiated value of and demand for the platform. We continue to win and add partners in our rapid paycard and EWA business, with the total partner count now greater than 7,000.

George Gresham: In our Green Dot Network, we signed a leading embedded finance platform that wanted to strengthen its capabilities and enable its partners and their customers to have access to a convenience that Green Dot Network offers. We also continue to sign and renew partners, including a variety of fintechs and digital banks, demonstrating the differentiated value of and demand for the asset. We continue to win and add partners in our rapid paycard and EWA business, with the total partner count now greater than 7,000. That is a lot of success, and I am tremendously pleased with the work our revenue product, technology, and support teams have done to get us in a position to replace last revenue and retain the partnerships we have.

Speaker Change: In our Green Dot Network, we signed a leading embedded finance platform that wanted to strengthen its capabilities and enable its partners and their customers to have access to the convenience that Green Dot Network offers.

George Gresham: Just last month, after extensive planning and preparation, we successfully launched the PLS Expectations Plus debit card program, which is off to a very strong start. Our tax division, Santa Barbara Tax Products Group, is performing exceptionally well after introducing a market leading product and technology platform last year. We have renewed an extended contract with some of our largest partners, and most importantly, we're very pleased to announce the renewal and extension of our largest fast partner by revenue for a multi-year period with improved financial terms.

Speaker Change: We also continue to find and renew partners, including a variety of fintechs and digital banks, demonstrating the differentiated value of and demand for this asset.

Speaker Change: We continue to win and add partners in our rapid paycard and EWA business with the total partner count now greater than 7,000.

George Gresham: That is a lot of success, and I am tremendously pleased with the work our revenue, product, technology, and support teams have done to get us in a position to replace lost revenue and retain the partnerships we have.

Speaker Change: That is a lot of success and I am tremendously pleased with the work our revenue product technology and support teams have done to get us in a position to replace lost revenue and retain the partnerships we have.

George Gresham: We have signed large merchant processor and an auto lender in our fast group, and are expecting to launch these new partners in early 2025. In our Green Dot Network, we signed a leading embedded finance platform that wanted to strengthen its capabilities and enable its partners and their customers to have access to a convenience that Green Dot Network offers. We also continue to sign and renew partners, including a variety of Fintechs and digital banks, demonstrating the differentiated value of and demand for the asset.

George Gresham: Understand, however, we take very seriously the risk profile of each partner and each account we choose to be associated with, and this risk perspective will cause us to turn down opportunities. It's also important to point out companies that want to leverage the power of embedded finance and work with us have intensified their focus on compliance and regulatory capabilities. The companies in our pipelines are increasingly focused on ensuring they are working with a partner that will enable them to deliver financial services while managing risk to their customer base and their reputations. We and our partners are in this together.

George Gresham: We take very seriously the risk profile of each partner and each account we choose to be associated with, and this risk perspective will cause us to turn down opportunities. It's also important to point out that companies that want to leverage the power of embedded finance and work with us have intensified their focus on compliance and regulatory capability. The companies in our pipelines are increasingly focused on ensuring they are working with a partner that will enable them to deliver financial services while managing risk to their customer base and their reputation. We and our partners are in this together. We have a shared interest in serving our mutual customers with a high-quality experience and compliance at the forefront. The third priority I discussed was margins.

Speaker Change: Understand, however.

Speaker Change: We take very seriously the risk profile of each partner and each account we choose to be associated with and this risk perspective will cause us to turn down opportunities.

Speaker Change: It's also important to point out, companies that want to leverage the power of embedded finance and work with us have intensified their focus on compliance and regulatory capabilities.

Speaker Change: The companies in our pipelines are increasingly focused on ensuring they are working with a partner that will enable them to deliver financial services while managing risk to their customer base and their reputations.

George Gresham: We have a shared interest in serving our mutual customers with the high-quality experience and compliance at the forefront. The third priority I discuss was margins. Again, another obvious point of focus, but our previous unconsolidated acquisition, multiple processors, multiple customer service approaches, and disaggregated compliance and risk management functions made for high complexity and eroded margins. So what are we doing on this run? First, we undertook a complicated and lengthy process to convert our processing platforms. Undertaking this project resulted in substantial savings, but more importantly, it served as a catalyst to simplify how we operate the company, which ultimately enables us to better manage risk and serve our customers.

Speaker Change: We and our partners are in this together. We have a shared interest in serving our mutual customers with a high quality experience and compliance at the forefront.

George Gresham: We continue to win and add partners in our rapid paycard and EWA business, with the total partner count now greater than 7,000. That is a lot of success, and I am tremendously pleased with the work our revenue product, technology, and support teams have done to get us in a position to replace last revenue and retain the partnerships we have. Understand, however, we take very seriously the risk profile of each partner and each account we choose to be associated with, and this risk perspective will cause us to turn down opportunities.

George Gresham: Again, another obvious point of focus, but our previous unconsolidated acquisitions, multiple processors, multiple customer service approaches, and disaggregated compliance and risk management functions made for high complexity and eroded margins. So what are we doing on this front? First, we undertook a complicated and lengthy process to convert our processing platforms.

Speaker Change: The third priority I discussed was margins. Again, another obvious point of focus, but our previous unconsolidated acquisitions, multiple processors, multiple customer service approaches, and disaggregated compliance and risk management functions made for high complexity and eroded margins.

Speaker Change: So, what are we doing on this front? First, we undertook a complicated and lengthy process to convert our processing platforms, undertaking this project, resulted in substantial savings, but more importantly, has served as a catalyst to simplify how we operate the company.

George Gresham: Undertaking this project resulted in substantial savings, but more importantly, it served as a catalyst to simplify how we operate the company, which ultimately enables us to better manage risk and serve our customers. Second, as I alluded to earlier, we have embarked on a company-wide simplification process that has resulted in or will result in simplified technology. Simplified Product Footprint, Fewer Consumer Brands to Manage, and Higher Partner Acceptance Standards. This work is not done.

George Gresham: It's also important to point out companies that want to leverage the power of embedded finance and work with us have intensified their focus on compliance and regulatory capabilities. The companies in our pipelines are increasingly focused on ensuring they are working with a partner that will enable them to deliver financial services while managing risk to their customer base and their reputations. We and our partners are in this together. We have a shared interest in serving our mutual customers with the high-quality experience and compliance at the forefront.

Speaker Change: which ultimately enables us to better manage risk and serve our customers.

George Gresham: Second, as I alluded to earlier, we have embarked on a company-wide simplification process that has resulted or will result in simplified technology, a simplified product footprint, fewer consumer brands to manage, and higher partner acceptance standards. This work is not done. We are working to optimize profitability while ensuring that Green Dot Corporation and Green Dot Bank remain strong financial institutions. In addition to that primary goal of ensuring we remain financially strong, is the reality that as we drive scale, it enables us to invest in the critical components of our business on a sustainable basis for the benefit of all of our stakeholders.

Speaker Change: Second, as I alluded to earlier, we have embarked on a company-wide simplification process that has resulted or will result in simplified technology, a simplified product footprint, fewer consumer brands managed and higher partner acceptance standards.

George Gresham: We are working to optimize profitability while ensuring that Green Dot Corporation and Green Dot Bank remain strong financial institutions. In addition to that primary goal of ensuring we remain financially strong is the reality that as we drive scale, it enables us to invest in the critical components of our business on a sustainable basis for the benefit of all of our stakeholders. We have significant scale today, and we need to rush down the path of leveraging that scale through expanding the market.

Speaker Change: This work is not done. We're working to optimize profitability while ensuring that green.corporation and green.bank remain strong for the international institution.

George Gresham: The third priority I discuss was margins. Again, another obvious point of focus, but our previous unconsolidated acquisition, multiple processors, multiple customer service approaches, and disaggregated compliance and risk management functions made for high complexity and eroded margins.

Speaker Change: In addition to that primary goal of ensuring we remain financially strong, is the reality that as we drive scale, it enables us to invest in the critical components of our business on a sustainable basis for the benefit of all of our stakeholders.

George Gresham: We have significant scale today, and we need to rush down the path of leverage that scale through expanding margins. Keep in mind that we've seen considerable profit impacts since 2022 from partner losses and brand discontinuations, amounting to roughly $60 million, alongside a rise in regulatory compliance costs of nearly $20 million. This tolls a reduction in the adjusted EBITDA of approximately 80 million. Nevertheless, our management team has mitigated these setbacks and stabilized the company amid a backdrop of post-COVID and post-dimension stimulus economy, technological upgrades, increased regulation, and a complex turnaround effort. While the work isn't finished, I'm extremely proud of the team for steering us through this challenging time and for laying a more robust, reliable groundwork for future growth.

George Gresham: So what are we doing on this run? First, we undertook a complicated and lengthy process to convert our processing platforms, undertaking this project resulted in substantial savings, but more importantly it served as a catalyst to simplify how we operate the company, which ultimately enables us to better manage risk and serve our customers. Second, as I alluded to earlier, we have embarked on a company-wide simplification process that has resulted or will result in simplified technology, a simplified product footprint, fewer consumer brands to manage, and higher partner acceptance standards.

Speaker Change: We have significant scale today, and we need to rush down the path of leverage that scale through expanding margins.

George Gresham: Keep in mind that we've seen considerable profit impact since 2022 from partner losses and brand discontinuation, amounting to roughly $60 million, alongside a rise in regulatory compliance costs of nearly $20 million. This totals a reduction in adjusted EBITDA of approximately $80 million.

Speaker Change: Keep in mind that we've seen considerable profit impact since 2022 from partner losses and brand discontinuations.

Speaker Change: Amounting to roughly $60 million, alongside a rise in regulatory compliance costs of nearly $20 million.

Speaker Change: This totals a reduction in adjusted EBITDA of approximately $80 million.

George Gresham: Nevertheless, our management team has mitigated these setbacks and stabilized the company amid a backdrop of the post-COVID and post-stimulus economy, technological upgrades, increased regulation, and a complex turnaround effort. While the work isn't finished, I'm extremely proud of the team for steering us through this challenging time and for laying a more robust, reliable groundwork for future growth. We continue to work diligently on our priorities, and there's no doubt in my mind that we are a better company than we were a year ago, two years ago, or four years ago.

Speaker Change: Nevertheless, our management team has mitigated these setbacks and stabilized the company amid a backdrop of post-COVID and post-stimulus economy.

Speaker Change: Technology will upgrade, increase regulation, and a complex turnaround effort.

George Gresham: This work is not done. We are working to optimize profitability while ensuring that Green Dot Corporation and Green Dot Bank remain strong financial institution. In addition to that primary goal of ensuring we remain financially strong is the reality that as we drive scale it enables us to invest in the critical components of our business on a sustainable basis for the benefit of all of our stakeholders. We have significant scale today and we need to rush down the path of leverage that scale through expanding margins.

Speaker Change: While the work isn't finished, I'm extremely proud of the team for steering us through this challenging time and for laying a more robust, reliable groundwork for future growth.

George Gresham: We continue to work diligently on our priorities, and there's no doubt in my mind that we are about our company than we were a year ago, two years ago, or four years ago. We are making progress towards our goal of ensuring that we not only remain a strong organization but that we build upon that, which I believe will be a competitive advantage that will serve as the pathways creating value for all of our stakeholders. The markets we serve and the opportunities they hold are not going anywhere, and we will emerge from this transition as the most asset-rich, differentiated, compliant, well-managed company in the FedEx base.

Speaker Change: We continue to work diligently on our priorities and there's no doubt in my mind that we are about our company than we were a year ago, two years ago, or four years ago.

George Gresham: We are making progress towards our goal of ensuring that we not only remain a strong organization but that we build upon that, which I believe will be a competitive advantage that will serve as a path to creating value for all of our stakeholders. The markets we serve and the opportunities they hold are not going anywhere, and we will emerge from this transition as the most asset-rich, differentiated, compliant, and well-managed company in the Fintech world. Thank you for your interest in Green Dot. Jess and I are now happy to take your questions. Operator. We will now begin the question and answer session.

Speaker Change: We are making progress towards our goal of ensuring that we not only remain a strong organization but that we build upon that which I believe will be a competitive advantage that will serve as the pathways creating value for all of our stakeholders.

George Gresham: Keep in mind that we've seen considerable profit impacts since 2022 from partner losses and brand discontinuations, amounting to roughly $60 million, alongside a rise in regulatory compliance costs of nearly 20 million. This tolls a reduction in the adjusted EBITDA of approximately 80 million. Nevertheless, our management team has mitigated these setbacks and stabilized the company amid a backdrop of post-COVID and post-dimension stimulus economy, technological upgrades, increased regulation and a complex turnaround effort.

Speaker Change: The markets we serve and the opportunities they hold are not going anywhere and we will emerge from this transition as the most asset rich, differentiated, compliant, well-managed company with a fantastic space.

George Gresham: Thank you for your interesting green dot. Jess and I are now happy to take your questions.

Speaker Change: Thank you for your interesting green dot, Jess Unruh and I are now happy to take your questions.

Operator: Operator? We will now begin the question and answer session. To ask a question, you may press star, then one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star, then two.

Speaker Change: Operator.

Speaker Change: We will now begin the question and answer session.

Operator: To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the key. To withdraw your question, please press star then 2. At this time, we will pause momentarily to assemble our roster. Our first question is from Ramsey Ellisall with Barclays. Please go ahead.

Speaker Change: To ask a question, you may press star then 1 on your telephone keypad.

George Gresham: While the work isn't finished, I'm extremely proud of the team for steering us through this challenging time and for laying a more robust, reliable groundwork for future growth. We continue to work diligently on our priorities and there's no doubt in my mind that we are about our company than we were a year ago, two years ago, or four years ago. We are making progress towards our goal of ensuring that we not only remain a strong organization but that we build upon that, which I believe will be a competitive advantage that will serve as the pathways creating value for all of our stakeholders.

Speaker Change: If you are using a speakerphone, please pick up your handset before pressing the keys.

Speaker Change: To withdraw your question, please press star then too.

Operator: At this time, we will pause momentarily to assemble our roster.

George Gresham: The markets we serve and the opportunities they hold are not going anywhere and we will emerge from this transition as the most asset-rich, differentiated, compliant, well-managed company in the FedEx base.

Speaker Change: At this time, we will pause momentarily to assemble our roster.

Speaker Change: In the next video, we'll see you in the next video.

Ramsey El: Our first question is from Ramsey, LSOL, with Barclays. Please go ahead. Hi, thanks so much for taking my question this evening. My question is on the B2B segment revenues, which came in ahead of our model. Could you disaggregate how much of the segment's growth was driven by the largest bass partner that you mentioned versus from the remainder of the segment? I'm just trying to get an idea about the sort of balance of growth in the segment.

Speaker Change: Thanks for watching, and don't forget to like, share, and subscribe to our channel.

Speaker Change: [inaudible]

Speaker Change: Our first question is from Ramsey, Ellis Hall, with Barclays. Please go ahead.

Ramsey El: Hi, thanks so much for taking my questions this evening. My question is on the B2B segment revenues, which came in ahead of our model. Could you disaggregate how much of the segment's growth was driven by the largest BASC partner that you mentioned versus from the remainder of the segment? I'm just trying to get an idea about the sort of balance of growth.

Speaker Change: Hi, thanks so much for taking my question this evening. My question is on the B2B segment revenues which came in ahead of our model. Could you disaggregate how much of the segment's growth was driven by the largest BAS partner that you mentioned versus from the remainder of the segment? I'm just trying to get an idea about the sort of balance of growth in the segment.

Unknown Executive: Thank you for your interesting green dot, Jess and I are now happy to take your questions. Operator? We will now begin the question and answer session. To ask a question, you may press star then one on your telephone keypad. If you are using a speaker phone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster.

Jess Unruh: Hey, Ramsey, it's Jess. So, the predominant growth came from that key VAST partner, but we took note in the preparator marks to call out that even if you put that key VAST partner aside, we had growth from the existing partnerships and some of the newer partnerships that we launched last year, including Dayforce. So, although we don't break those out, certainly, the key VAST partner was the primary driver, but nonetheless, the other programs also grew.

Jess Unruh: Hey, Ramsey, it's Jess. The predominant growth came from that key bass partner, but we took note in the prepared remarks to call out that even if you put that key bass partner aside, we had growth from the existing partnerships and some of the newer partnerships that we launched last year, including Dayforce. So, although we don't break those out, certainly the key bass partner was the primary driver; but nonetheless, the other programs also grew.

Speaker Change: Hey Ramsey, it's Jess. So the predominant growth came from that T-Bass partner.

Speaker Change: But we took note in the prepared remarks to call out that even if you put that key VAST partner aside, we had

Ramsey: Growth from the existing partnerships and some of the newer partnerships that we launched last year, including day fours. So although we don't break those out, certainly the key vast partner was the primary driver, but nonetheless the other programs also grew.

Ramsey El: And a quick follow-up, and apologies if you covered this already. I missed some of the prepared remarks, unfortunately.

Ramsey El: about it. And a quick follow-up and apology if you cover this already. I missed some of the paired remarks, unfortunately.

Speaker Change: And a quick follow-up, and apologies if you covered this already. I missed some of the prepared remarks, unfortunately.

Ramsey El: Our first question is from Ramsey, LSOL, with Barclays. Please go ahead. Hi, thanks so much for taking my question this evening. My question is on the B2B segment revenues which came in ahead of our model. Could you disaggregate how much of the segment's growth was driven by the largest bass partner that you mentioned versus from the remainder of the segment? I'm just trying to get an idea about the sort of balance of growth in the segment.

Ramsey El: Could you, what about the next sort of 12 to 18 months? Are there any other large renewals that are sort of pending? Are you feeling now sort of like things are relatively stable just in terms of, you know, contract discussions?

Ramsey El: What about the next sort of 12 to 18 months? Are there any other large renewals that are sort of pending? Are you feeling now sort of like things are relatively stable just in terms of, you know, contract discussions?

Speaker Change: Could you, what about the next sort of 12 to 18 months? Are there any other large renewals that are sort of pending or are you feeling now sort of like things are relatively stable just in terms of, you know, contract discussions?

Unknown Executive: Here I have to thank the storage.

George Gresham: Hey, Ramsey, thanks. This is George.

Jess Unruh: I would say over the course of the last year, if you would have asked that question a year ago, we're probably going to give you a very different answer. But here, as we sit today, as it relates to our key bass partners, this year in 24, we've renewed and extended the vast majority of our current bass revenue. And in our prepared remarks, I also mentioned that we've signed; I pointed out a couple of reasonably important new bass partners that are under contract and we're currently onboarding and will be launched in early-ish 2025. And let me also say that the partners that Jess was referring to, beyond the largest of our bass partners, have generally been performing very well, have been growing year-to-year, and have relatively healthy trends.

Speaker Change: Here I have the dynamics of the storage.

Speaker Change: I would say, over the course of the last year, if you would have asked that question a year ago, we probably would have given you a very different answer. But here, as we sit today, as it relates to our key BASC partners, this year, in 24, we've renewed and extended

Jess Unruh: Hey, Ramsey, it's Jess. The predominant growth came from that key bass partner, but we took note in the prepared remarks to call out that even if you put that key bass partner aside, we had growth from the existing partnerships and some of the newer partnerships that we launched last year, including day force. So although we don't break those out, certainly the key bass partner was the primary driver, but nonetheless the other programs also grew, about it.

George Gresham: I would say over the course of the last year, if you had asked that question a year ago, we probably would have given you a very different answer. But here, as we sit today, as it relates to our key BASC partners, this year in 24, we've renewed and extended the vast majority of our current BAS revenue. And in our prepared remarks, I also mentioned that we've signed, pointed out a couple of reasonably important new BAS partners that are under contract, and we're currently onboarding, and will be launched in early-ish 2025.

Ramsey: the vast majority of our current vast revenue.

Speaker Change: And in our prepared remarks, I also mentioned that we've signed, I pointed out a couple of

Speaker Change: Reasonably important new bass partners that are under contract and were currently onboarding and will be launched in early-ish 2025.

Jess Unruh: And a quick follow-up and apology if you cover this already. I missed some of the paired remarks, unfortunately. What about the next sort of 12 to 18 months? Are there any other large renewals that are sort of pending? Are you feeling now sort of like things are relatively stable just in terms of, you know, contract discussions?

George Gresham: And, let me also say that the partners that Jess was referring to, beyond the largest of our BASC partners, have generally been performing very well, have been growing year over year, and have relatively healthy trends. And last, before I stop rattling on, we don't contain within our BASC group the PLS opportunity. I mentioned that that partner, which is contained within our retail, which is in our consumer business, launched earlier this summer in July and has just been performing very, very well. So, we're super excited about that. So, I probably have over-answered your question, but let me pause and see if you have any follow-up questions. No, that's perfect.

Jess Unruh: And let me also say that the partners that Jess was referring to beyond the largest of our BASC partners have generally been

Jess Unruh: performing very well, have been growing year over year.

Jess Unruh: Here I have to thanks the storage. I would say over the course of the last year if you would have asked that question a year ago, we're probably going to give you a very different answer. But here, as we sit today, as it relates to our key bass partners, this year in 24, we've renewed an extended the vast majority of our current bass revenue. And in our prepared remarks, I also mentioned that we've signed, I pointed out a couple of reasonably important new bass partners that are under contract and we're currently onboarding and will be launched in early ish 2025.

Speaker Change: and have relatively healthy trends. And last, before I stop rattling on, we don't contain within our BASC group the PLS opportunity. Although,

Jess Unruh: And last, before I stop rattling on, we don't contain within our bass group the PLS opportunity, although I mentioned that that partner, which is contained within our retail, which is in our consumer business, launched earlier this summer in July and has just been performing very, very well. So we're super excited about that.

Jess Unruh: I mentioned that that partner, which is contained within our retail, which is in our consumer business, launched earlier this summer in July and has just been performing very, very well. So we're super excited about that.

Ramsey El: So I probably over-answered your question, but let me pause and see if you have any follow-up. No, that's perfect. I appreciate the fairness of it. Thanks so much. Thank you.

Speaker Change: So I probably over-answered your question, but let me pause and see if you have any follow-up. No, that's perfect. I appreciate the thoroughness of it. Thanks so much.

Ramsey El: No, that's perfect. I appreciate the thoroughness of it. Thanks so much.

Tim Switzer: The next question is from Tim Slitzer with KBW. Please go ahead. Very good afternoon. Thank you for taking my question.

Timothy Switzer: The next question is from Tim Switzer with KBW. Please go ahead. Hey, good afternoon.

Speaker Change: Thank you.

Speaker Change: The next question is from Tim Switzer with KBW. Please go ahead.

Jess Unruh: And let me also say that the partners that Jess was referring to beyond the largest of our bass partners have generally been performing very well, have been growing year-to-year, and have relatively healthy trends. And last before I stop rattling on, we don't contain within our bass group the PLS opportunity, although I mentioned that that partner, which is contained within our retail, which is in our consumer business, launched earlier this summer in July and has just been performing very, very well. So we're super excited about that. So I probably over-answered your question, but let me pause and see if you have any follow-up.

Timothy Switzer: Hey, good afternoon. Thank you for taking my question. Hey, Kim.

Tim Switzer: Thank you for taking my question.

Tim Switzer: Hey, Tim. My first question is on the growth outlook here. You guys mentioned probably for the company accelerating growth as the move through the back half of the year. It seems like we're kind of implying year-to-year growth; you know, 20% are hired by the end of the year.

Timothy Switzer: My first question is on the growth outlook here. You guys mentioned, you know, probably for the company, accelerating growth as we move through the back half of the year. It seems like we're kind of implying year-over-year growth of 20% or higher by the end of the year. Should we assume a continued acceleration above that level in 2025, given all the momentum you have in BAS and some of the other areas?

Speaker Change: See ya!

Tim Switzer: My first question is on the growth outlook here. You guys mentioned, broadly for the company, accelerating growth as we move through the back half of the year. It seems like we're kind of implying year-over-year growth.

Speaker Change: You know.

Speaker Change: 20% are hired by the end of the year. Should we assume a continued acceleration above that level in 2025, given all the momentum you have, and passing some of the other areas?

Jess Unruh: Should we assume a continued acceleration above that level in 2025, given all the momentum you have in bass and some of the other areas? Well, just why don't you take the first kind of the guidance part of that question?

Timothy Switzer: Well, Jess, why don't you take the first kind of the guidance part of that question, and then I'll chime in at the end. Yeah, I think you're

Speaker Change: Well Jess, why don't you take the first kind of the guidance part of that question and then I'll chime in at the tail.

Jess Unruh: Sure. And I'll chime in. That's a two. Yeah, I think you're, you're implied growth rates in the back half of the year or, you know, in the zip code of, you know, mid-teens to upper-teens area. So accelerating growth throughout the year.

Jess Unruh: Yeah, I think you're, you're, uh, your implied growth rates in the back half of the year, you know, in the zip code of, you know, the mid teens to upper teens area. So, accelerating growth throughout the year.

Jess Unruh: Yeah, I think you're, you're.

Jess Unruh: You're implied growth rates in the back half of the year, you know, in the zip code of, you know, mid teens to upper teens area.

Ramsey El: No, that's perfect. I appreciate the fairness of it. Thanks so much. Thank you.

Tim Switzer: The next question is from Tim Slitzer with KBW. Please go ahead. Very good afternoon. Thank you for taking my question. Hey, Tim. My first question is on the growth outlook here. You guys mentioned probably for the company accelerating growth as the move through the back half of the year. It seems like we're kind of implying year-to-year growth, you know, 20% are hired by the end of the year. Should we assume a continued acceleration above that level in 2025, given all the momentum you have in bass and some of the other areas?

Speaker Change: of Celebrating Growth throughout the throughout the year.

George Gresham: Yeah, so underlying, yeah, Tim, if you don't mind, I'll just expand a bit. Underlying that, of course, are the initiatives started now two years ago, even prior to my having this role with respect to the retirement of some brands, migrating some brands off the portfolio, the sunsetting of some partnerships, etc. For the most part, those activities we will have rolled through by the back half of this year. And in the back half of last year, we had some very elevated costs associated with dispute-related losses, our migration off of the processing platform onto ACI, etc. Obviously, we don't expect to replicate those costs.

George Gresham: Yeah, so underlying that, yeah, Tim, if you don't mind, I'll just expand a bit. Underneath that, of course, are the initiatives started now two years ago, even prior to my having this role, with respect to the retirement of some brands, migrating some brands off the portfolio, the sunsetting of some partnerships, etc. For the most part, those activities will have rolled through by the back half of this year, and in the back half of last year, we had some very elevated costs associated with dispute-related losses, our migration off of the processing platform onto ACI, etc. Obviously, we don't expect to replicate those costs.

Jess Unruh: Yeah, so underlying, yeah, Tim, if you don't mind, I'll just expand a bit. Underlying that, of course, are the initiatives started now two years ago, even prior to my

Tim: having this role with respect to retirement of some brands, migrating some brands off the portfolio, the sunsetting of some partnerships, et cetera.

Speaker Change: For the most part, those activities we will have rolled through.

Speaker Change: By the back half of this year, and in the back half of last year, we had some very elevated costs associated with dispute related losses or migration off of the processing platform onto ACI, et cetera, obviously we don't expect to replicate those costs.

Tim Switzer: Well, just why don't you take the first kind of the guidance part of that question? Sure. And I'll chime in. That's a two. Yeah, I think you're, you're implied growth rates in the back half of the year or, you know, in the zip code of, you know, mid-teens to upper-teens area. So accelerating growth throughout the year. Yeah, so underlying, yeah, Tim, if you don't mind, I'll just expand a bit. Underlying that, of course, are the initiatives started now two years ago, even prior to my having this role with respect to retirement of some brands, migrating some brands off the portfolio, the sunsetting of some partnerships, etc.

Jess Unruh: then, as we think, obviously we're not in a position to give 2025 guidance, but we do believe the last question that our current partnerships, we've had a lot of success in renewing and extending those contracts, even in the midst of the pending overhang of the consent order. so we're very pleased with that; that makes us feel good about future years. I'd also point out that I think if you look at our free cash flow year to date, it's about comparable to prior year, even though the core underlying business has shrunk a bit. But nevertheless, we're generating really high free cash flow yields.

George Gresham: Then, as we think, obviously, we're not in a position to give 2025 guidance, but we do believe the last question that our current partnership has had a lot of success in renewing and extending those contracts, even in the midst of the pending overhang of the consent order, so we're very pleased with that. That makes us feel good about the future years. I'd also point out that I think, you know, if you look at our free cash flow, year to date, it's about comparable to the prior year, even though the core underlying business has shrunk a bit.

Speaker Change: Then, as we think, obviously, we're not in a position to give 2025 guidance, but we do believe the last question, that our current partnerships

Speaker Change: We've had a lot of success in renewing and extending those contracts even in the midst of the pending overhang of the consent order. So we're very pleased with that. That makes us feel good about future years.

Speaker Change: I'd also point out that I think

Speaker Change: You know, if you look at our free cash flow year to date.

Speaker Change: It's about comparable to prior year, even though the core underlying business has shrunk a bit. But nevertheless, we're generating really high free cash flow yields now.

Tim Switzer: For the most part, those activities we will have rolled through by the back half of this year. And in the back half of last year, we had some very elevated costs associated with dispute-related losses, our migration off of the processing platform onto ACI, etc. Obviously we don't expect to replicate those costs, then as we think obviously we're not in a position to give 2025 guidance but we do believe the last question that our current partnerships we've had a lot of success in renewing and extending those contracts even in the midst of the pending overhang of the consent order so we're very pleased with that that makes us feel good about future years.

George Gresham: But nevertheless, we're generating really high free cash flow yields now. We also make a $35 million contribution to TailSend, and have for the last five years. The last contribution was made this year, in the 24th, and that's treated as an investment for all the right reasons, but we will not be making a similar contribution next year. So, irrespective of business activities, et cetera, which we feel pretty optimistic about, our cash flow will be at least $35 million better, irrespective of trends in the underlying business. So, I'll stop again. Maybe I've over-answered your question, but I've got to take it.

Jess Unruh: Now we also make a $35 million contribution to tail fin. Have for the last five years, the last contribution was made in this year in 24, but that's treated as an investment for all the right reasons. But we will not be making a similar contribution next year, so irrespective of business activities, etc., which we feel pretty optimistic about, our cash flow will be at least $35 million better, irrespective of trends in the underlying business. So I'll stop again, maybe I'll go over and answer your question, but I gotta take my opportunity where I can.

Speaker Change: We also make a $35 million contribution to Tails in, have for the last five years the last contribution was made.

Speaker Change: in this year, in 24. Now that's treated as an investment for all the right reasons, but we will not be making a similar contribution.

Speaker Change: Next year, so irrespective of business activities, et cetera, which we feel pretty optimistic about.

Speaker Change: our cash flow will be at least $35 million better, irrespective of trends in the underlying business. So I'll stop again, maybe I've over answered your question, but I got to take my opportunity where I can.

Timothy Switzer: Yeah, no, that was great. Thank you.

Jess Unruh: Yeah, no, that was great, thank you. And then my other questions on the expense that I think you guys mentioned: you know the spending on regulatory infrastructure should peak or has already peaked. Should we expect that now staying flat as you continue to just continue investing on top of that? Or, you know, they're not through for maybe lower expenses or for you to read a full of that elsewhere? And then where else would you guys like to be investing right now? Okay, great. I'm gonna again take an opportunity to expand on your question. It's good, it's something I want to talk about. You know, we and the companies you follow and our other analysts follow obviously are operating in a regulatory environment of, I think, of some intensity. We, Green Dot, are not in the business of regulatory arbitrage; we're in the business of building a vertically integrated solution set for consumers and B2B partners. And so, the vast majority, if not all, of the regulatory activities that have to happen within the value chain that I'm discussing happen within our four walls. And that's good because we can control those; we can manage those activities. And we have invested, as I've mentioned, considerably in improving our capabilities. Now, again, caveating that we're not giving 25 guidance, we have both invested significantly in the build-up of our operating compliance platforms. So, we've added people in the compliance department, internal audit, BSA, AML, etc., etc., and those will be ongoing costs. But we've also invested in activities this year that, you know, look backwards in some way, you know, in the contemplation of the consent order, etc. We've been doing a lot of work that probably, and I expect, not to repeat. So, I don't want to break out those two elements of our regulatory costs, but simply put, I would expect some of those costs not to repeat.

Tim Switzer: I'd also point out that I think if you look at our free cash flow year to date it's about comparable to prior year even though the core underlying business has shrunk a bit but nevertheless we're generating really high free cash flow yields. Now we also make a $35 million contribution to tail fin have for the last five years the last contribution was made in this year in 24 but that's treated as an investment for all the right reasons but we will not be making a similar contribution next year so irrespective of business activities etc which we feel pretty optimistic about our cash flow will be at least $35 million better irrespective of trends in the underlying business so I'll stop again maybe I'll go over and answer your question but I gotta take my opportunity where I can.

Speaker Change: Yeah, no, that was great. Thank you. And then my other question is on the expense side of things. You guys mentioned, you know, the spending on regulatory.

Speaker Change: and Infrastructure to Peak, or has already peaked.

Timothy Switzer: And then my other questions on the expense side of things, you guys mentioned the spending on regulatory, and infrastructure should peak or has already. Should we expect that to stay flat as you continue to just continue investing on top of that, or is there an opportunity for maybe lower expenses or for you to redeploy that elsewhere? And then where else would you guys like to be investing right now?

Speaker Change: Should we expect that's now staying flat as you continue to just continue investing on top of that, or, you know, they're not doing it for maybe lower expenses or a few to read a full of that elsewhere. And then, where else would you guys like to be investing right now?

George Gresham: Okay, great. I'm going to, again, take an opportunity to expand on your question. It's good. It's something I want to talk about.

Speaker Change: Okay, great. I'm going to, again, take an opportunity to expand on your question. It's good. It's something I want to talk about.

George Gresham: You know, we and the companies you follow and our other analysts follow, obviously, are operating in a regulatory environment of, I think, some intensity. We, Green Dot, are not in the business of regulatory arbitrage. We're in the business of building a vertically integrated solution set for consumers and B2B partners. And so the vast majority, if not all, of the regulatory activities that have to happen within the value chain that I'm discussing happen within our four walls. And that's good because we can control those, we can manage those activities, and we have invested, as I've mentioned, considerably in improving our capabilities. Now, again, caveating that we're not giving 25 guidelines.

Speaker Change: You know?

Speaker Change: We and the companies you follow and our other analysts follow obviously are operating in a regulatory environment of I think of some intensity. We, Green Dot, are not in the business of regulatory arbitrage.

Speaker Change: We're in the business of building a vertically integrated solution set for consumers and B2B partners.

Tim Switzer: Yeah no that was great thank you and then my other questions on the expense that I think you you guys mentioned you know the spending on regulatory infrastructure should peak or has already peaked should we expect that now staying flat as you continue to just continue investing on top of that or you know they're not through for maybe lower expenses or for you to read a full of that elsewhere and then where else would you guys like to be investing right now. Okay great I'm gonna again take an opportunity to expand on your question it's good it's something I want to talk about you know we and the companies you follow and our other analysts follow obviously are operating in a regulatory environment of I think of some intensity we green dot are not in the business of regulatory arbitrage we're in the business of building a vertically integrated solution set for consumers and B2B partners and so the vast majority if not all of the regulatory activities that have to happen within the value chain but I'm discussing happen within our four walls and that's good because we can control those we can manage those activities and we have invested as I've mentioned considerably in improving our capabilities now again caveating that we're not giving 25 guidance we have both invested significantly in the build up of our of our operating compliance platforms so we've added people in the compliance department internal audit BSA AML etc etc and those will be ongoing costs but we've also invested in activities this year that you know look backwards in some way you know in the contemplation of the consent order etc we've been doing a lot of work that probably and I expect not to repeat so I don't want to break out those those two elements of our regulatory costs but simply put I would expect some of those costs not to repeat.

Speaker Change: and so the vast majority, if not all, of the regulatory activities that have to happen within the value chain that I'm discussing happen within our four walls.

Speaker Change: And that's good, because we can control those, we can manage those activities, and we have invested, as I've mentioned, considerably in improving our capabilities.

Speaker Change: Now, again, caveating that we're not giving 25 guidance.

George Gresham: We have both invested significantly in the build-up of our operating compliance platforms. So we've added people to the compliance department, internal audit, BSA, AML, et cetera, et cetera. And those will be ongoing costs. But we've also invested in activities this year that, you know, look backwards in some way, you know, in the contemplation of the consent order, et cetera. We've been doing a lot of work that probably, and I expect not to repeat. So I don't want to break out those two elements of our regulatory costs.

Speaker Change: We have both invested significantly in the buildup of our operating compliance platforms. So we've added people in.

Speaker Change: The Compliance Department, Internal Audit, BSA, AML, et cetera, et cetera. And those will be ongoing costs. But we've also invested in activities this year.

Speaker Change: That, you know, looked backwards in some way, you know, in the contemplation of the consent order, etc., we've been doing a lot of work.

Speaker Change: that probably, and I expect not to repeat. So, I don't want to break out those two elements of our regulatory costs, but simply put, I would expect some of those costs not to repeat.

George Gresham: But simply put, I would expect some of those costs. The last part of your question, which is an excellent question, is what would we want to invest in? What we are investing in this is we have some portion of technology debt we're continuing to eradicate. That's very important.

Jess Unruh: The last part of your question, which is an excellent question, is: what would we want to invest in? What we are investing in this year is we have some portion of technology debt we're continuing to eradicate. That's very important. As Jess mentioned, we have seen persistent declines in a retail distribution business unit. Greater than our expectation, that product has not received material investment for some time. This year, we are investing materially in a complete refresh of the user experience for the Green Dot product, the Walmart MoneyCard product, and the go-to bank product. So those investments are underway, and importantly, two of those three products run on a legacy technology platform, which inhibits our ability to launch new features.

Speaker Change: The...

Speaker Change: The last part of your question, which is an excellent question, is what would we want to invest in?

Speaker Change: what we are investing in this year.

Speaker Change: is we have some portion of technology debt we're continuing to eradicate, that's very important.

George Gresham: As Jess mentioned, we have seen persistent declines in our retail distribution business unit, greater than our expectations. Furthermore, that product has not received material investment for some time. This year, we are investing materially in a complete refresh of the user experience for the Green Dot product, the Walmart Money Card product, and the GoToBank product. Those investments are underway, and importantly, two of those three products run on a legacy technology platform, which inhibits our ability to launch new features.

Speaker Change: As Jess mentioned, we have seen persistent declines in our retail distribution business unit.

Grader: Grader, that our expectation, that product has not received material investment for some time. This year we are investing materially in a complete refresh of the user experience for the green dot product, the wall art money card product and the go-to bank product.

Speaker Change: for those investments are underway and importantly, two of those three products run on a legacy technology platform, which inhibits our ability to launch new features. So that investment is also being made to migrate off of that legacy platform.

Jess Unruh: So that investment is also being made to migrate off of that legacy platform, and much of that investment is being invested by the Tailfin joint venture. So it's not coming directly out of our entity's capital pool. So we're making those investments, and in the future, I hope to significantly accelerate our onboarding and product featuring capabilities for our business business, bass, embedded finance capabilities. We are making some of those investments this year, but I would characterize those investments as modest relative to what we would like to do.

George Gresham: An investment is also being made to migrate off of that legacy platform. Much of that investment is being invested by the Tailfin joint venture, so it's not coming directly out of our entity's capital pool. We're making those investments, and in the future, I hope to significantly accelerate our onboarding and product-featuring capabilities for our business-to-business DAS embedded finance capabilities. We are making some of those investments this year, but I would characterize those investments as modest relative to what we would like to do and start growing again and create some capital growth availability and, hopefully, reduce capital spend in some other areas. We would primarily direct that into our B2B acquisition capabilities and, to a lesser extent, the enhancement of the features and functionalities that we offer consumers through our direct and retail channels.

Tim Switzer: The last part of your question, which is an excellent question, is what would we want to invest in? What we are investing in this year is we have some portion of technology debt we're continuing to eradicate. That's very important. As Jess mentioned, we have seen persistent declines in a retail distribution business unit. Greater than our expectation, that product has not received material investment for some time. This year, we are investing materially in a complete refresh of the user experience for the Green Dot product, the Walmart Money Card product, and the go-to bank product.

Speaker Change: And much of that investment is being invested.

Speaker Change: by the Tailfin Joint Venture.

Speaker Change: So it's not coming directly out of our entity's capital pool.

Speaker Change: So, we're making those investments and in the future.

Speaker Change: I hope to significantly accelerate.

Speaker Change: Our onboarding and product featuring capabilities for business business dash embedded finance capabilities. We are making some of those investments this year, but I would characterize those investments as modest relative to what we would like to do. So as we...

Jess Unruh: So as we gain new accounts and start growing again and create some capital growth availability, and hopefully reduce capital spending to other areas, we would primarily direct that into our B2B acquisition capabilities, and to a lesser extent, the enhancement of the features and functionalities that we offer consumers through our direct and retail channels. That was great. Appreciate all the color. Thank you, guys. Sure, you bet. Thanks for the questions.

Speaker Change: gain new accounts and start growing again and create some capital growth availability, and hopefully reduce capital spend in some other areas, we would primarily direct that into our B2B acquisition capabilities and to a lesser extent

Tim Switzer: So those investments are underway, and importantly, two of those three products run on a legacy technology platform, which inhibits our ability to launch new features. So that investment is also being made to migrate off of that legacy platform, and much of that investment is being invested by the tailfin joint venture. So it's not coming directly out of our entities capital pool. So we're making those investments, and in the future, I hope to significantly accelerate our onboarding and product featuring capabilities for our business business, bass, embedded finance capabilities.

Speaker Change: The Enhancement of the features and functionality that we offer consumers through our direct and retail channels.

Timothy Switzer: That was great. I appreciate all the color. Thank you, guys.

Timothy Switzer: Sure, you bet, Tim. Thanks for the question.

Speaker Change: That was great. Appreciate all the color. Thank you guys.

George Sutton: The next question is from George Sutton with Craig Hallam. Please go ahead.

George Sutton: The next question is from George Sutton with Craig Hallum. Please go ahead. Hey, guys.

Speaker Change: Sure, you bet, Tim. Thanks for the questions.

Speaker Change: The next question is from George Sutton with Craig Hallam. Please go ahead.

James Rush: Hey guys, James speaking on behalf of George. Thanks for taking my questions. The first question is probably for Jess, but it sounds like the return to growth in the consumer segment is getting pushed out a bit. I guess what's changed there relative to your prior expectation?

James Rush: James on for George. Thanks for taking my questions.

James Unruh: Hey guys, James Unruh for George. Thanks for taking my questions. First question is probably for Jess, but it sounds like the return to growth in the consumer segment is getting pushed out a bit. I guess, what's changed there relative to your prior expectation?

James Rush: First question is probably for Jess, but it sounds like the return to growth in the consumer segment is getting pushed out a bit. I guess what's changed there relative to your prior expectation. Yeah, I would say principally in the retail business, George sort of alluded to it. You know, we have continued pressure from digital offerings, competition, executive trends, et cetera, but also note that we enhanced our risk management processes. And in doing so, that pushes out some higher risk, lower value accounts. So that does have an impact on our active account trends and has some impact on segment profits.

Tim Switzer: We are making some of those investments this year, but I would characterize those investments as modest relative to what we would like to do. So as we gain new accounts and start growing again and create some capital growth availability, and hopefully reduce capital spending to other areas, we would primarily direct that into our B2B acquisition capabilities, and to a lesser extent, the enhancement of the features and functionalities that we offer consumers through our direct and retail channels. That was great. Appreciate all the color. Thank you, guys. Sure, you bet. Thanks for the questions.

Jess Unruh: Yeah, I would say principally in the retail business, as George sort of alluded to it, we have continued pressure from digital offerings, competition, executive trends, etc. But also note that we enhanced our risk management processes.

Speaker Change: Yeah, I would say principally in the retail business, George sort of alluded to it, you know, we have continued pressure from digital offerings, competition, executive trends, etc. But also note that we enhanced our risk management processes.

Jess Unruh: And in doing so, that pushes out some higher-risk, lower-value accounts. So that does have an impact on our active account trends and has some impact on segment profits. So I think that's slowing some of our expectations for retail. The declines are not necessarily moderating as quickly as we would like.

Speaker Change: and in doing so, that pushes out some higher risk lower value accounts.

Speaker Change: So that does have an impact on our active account trends and has some impact on segment profits. So I think that's slowing some of our expectations so the retail, the declines are not necessarily moderating as quickly as we would have liked.

James Rush: So I think that's slowing some of our expectations. So the retail, the declines are not necessarily moderating as quickly as we were, but.

George Gresham: And then on the banking as a service side, congrats on growing the pipeline there and adding a couple of new partners. I guess, what do you think is driving the growth in the pipeline? And then any anecdotes you can share on the couple of new partners you added? Why did they go with Green Dot? Or what do you think sort of led to those ones?

Jess Unruh: And then on the thing is the service side. Congrats on growing the pipe on there and adding a couple of new partners. I guess what do you think is driving the growth in the pipeline, and then any anecdotes you can share on that couple of new partners you added. What do you think sort of led to those ones? Sure. A couple of things led to the growth of the pipeline. One is when I became the CEO, I asked Chris Rupold to become the Chief Revenue Officer, and the purpose of that was to consolidate and standardize our go-to-market efforts where they had been disparate before.

George Sutton: The next question is from George Sutton with Craig Hallum. Please go ahead. Hey, guys. James on for George. Thanks for taking my questions.

Speaker Change: And then on the banking as a service side, congrats on growing the pipeline there and adding a couple of new partners. I guess, what do you think is driving the growth in the pipeline? And then any anecdotes you can share on the couple of new partners you added, whether it went with Green Dot or what do you think sort of led to those wins?

Jess Unruh: First question is probably for Jess, but it sounds like the return to growth in the consumer segment is getting pushed out a bit. I guess what's changed there relative to your prior expectation. Yeah, I would say principally in the retail business, George sort of alluded to it. You know, we have continued pressure from digital offerings, competition, executive trends, et cetera, but also note that we enhanced our risk management processes. And in doing so, that pushes out some higher risk, lower value accounts.

George Gresham: Sure. Well, a couple things led to the growth of the pipeline. One is, when I became the CEO, I asked Chris Ruppel to become the chief revenue officer. And the purpose of that was to consolidate and standardize our go-to-market effort, where they had been disparate before, and that team has done a very nice job focusing on the right types of opportunities to address, getting them under contract, getting them in the pipeline, and doing it under a relatively challenging environment. So that's job one, and they've done a great job, and I want to express my gratitude to them for that.

Speaker Change: Sure, well a couple things led to the growth of the pipeline. One is

Chris Ruppel: When I became the CEO , I asked Chris Ruppel to become the Chief Revenue Officer, and the purpose of that was to consolidate and standardize our go-to-market efforts.

George Gresham: And that team has done a very nice job in focusing on the right types of opportunities to address, getting them under contrast, getting them in the pipeline, and doing it under a relatively challenged environment. So that's job one, and they've done a great job, and I want to express my gratitude to them for that. Also, there's been a lot of disruption in the broader FinTech industry, of course, disruption with sponsor banks and FinTech providers; you know, all these stories. And that creates a turn within the market, and I think we're well-positioned to capitalize on the best of that turn.

Speaker Change: where they had been just there before. And that team has done a very nice job.

Jess Unruh: So that does have an impact on our active account trends and has some impact on segment profits. So I think that's slowing some of our expectations. So the retail, the declines are not necessarily moderating as quickly as we were but.

Speaker Change: focusing on the right types of opportunities to address

Speaker Change: Getting them under contrast, getting them in the pipeline, and doing it under a relatively challenged environment. So that's...

Speaker Change: Job One, and they've done a great job and I want to express my gratitude to them for that.

George Gresham: Also, there's been a lot of disruption in the broader fintech industry, of course, disruption with sponsor banks and fintech providers, you know, all these stories, you know, and that creates a turn within the market, and I think we're well positioned to capitalize on the best of that turn, the best opportunities within that turn. I think we're well positioned to be a safe landing for some of those companies since we have now for two years been devoted to significant enhancements in our compliance and regulatory oversight, and this is very important to all prospects now.

George Gresham: And then on the thing is the service side congrats on growing the pipe on there and adding a couple of new partners. I guess what do you think is driving the growth in the pipeline and then any anecdotes you can share on that couple of new partners you added. What do you think sort of led to those ones? Sure. A couple of things led to the growth of the pipeline. One is when I became the CEO, I asked Chris Rupold to become the Chief Revenue Officer, and the purpose of that was to consolidate and standardize our go-to-market efforts where they had been disparate before.

Speaker Change: Also, there's been a lot of disruption in the broader fintech industry, of course, disruption with sponsor banks and fintech providers, you know, all these stories.

Speaker Change: And that creates a turn within the market, and I think we're well positioned to capitalize.

George Gresham: The best opportunities within that turn, I think we're well-positioned to be a safe landing for some of those companies since we have now for two years been devoted to significant enhancements in our compliance and regulatory oversight, and this is very important to all prospects now. So that's an important factor. In third, you know, the overarching secular trend, which, you know, companies are waking up; they have important customer relationships. Some of them might be financial in nature, and they want to provide a more financial solution so that they can have longer-term, more meaningful, more depthful relationships.

Speaker Change: on the best of that churn, the best opportunities within that churn. I think we're well positioned.

Speaker Change: to be a safe landing for some of those companies since we have now for two years been been devoted to significant enhancements in our compliance and regulatory oversight. And this is very important to all prospects now.

George Gresham: So that's an important factor. And third, you know, the overarching secular trend where companies are waking up, they have important customer relationships, some of them might be financial in nature, and they want to provide a more financial solution so that they can have longer-term, more meaningful, more depthful relationships. So I think those three factors have all been working in our favor and leading to some of our success so far.

Speaker Change: So that's an important factor. And third, you know, the overarching secular trend, which, you know, companies are waking up, they have important customer relationships, some of them might be financial in nature.

Speaker Change: and they want to provide a more financial solution so that they can have longer-term, more meaningful, more depthful relationships. So I think those three factors have all been working in our favor and leading to some of our success so far.

George Gresham: So I think those three factors have all been working in our favor, and leading to some of our success so far.

George Gresham: And then lastly, for me, on the renewal of the large FinTech service partner, any changes in the relationship or unit economics of that renewal that you can share, and also I'd be curious to know if this is something that went up as a competitive process. Thanks. Sure. I don't have a response for the latter part of your question, but I did allude to in the outset of my, or I guess, towards the end of my prepared remarks, that the agreement is for a longer term than it has been in the past, which allows us a substantial amount of runway to provide other solutions and problem-solving initiatives to this partner.

George Gresham: And then lastly, for me, on the renewal of the large bank as a service partner, any changes in the relationship or unit economics of that renewal that you can share? And also, I'd be curious to know if this was something that went through as a competitive process.

Speaker Change: And then lastly, for me on the rule of the large thing to the service partner, any changes in the relationship or you, the economics of that renewal that you can share, and also I'd be curious to know if this is something that went out of the competitive process.

George Gresham: And that creates a turn within the market, and I think we're well-positioned to capitalize on the best of that turn. The best opportunities within that turn, I think we're well-positioned to be a safe landing for some of those companies since we have now for two years been devoted to significant enhancements in our compliance and regulatory oversight, and this is very important to all prospects now. So that's an important factor. In third, you know, the overarching secular trend, which, you know, companies are waking up, they have important customer relationships.

George Gresham: Sure, I don't have a response for the latter part of your question, but I did allude to in the outset of my, or I guess towards the end of my prepared remarks that the agreement is for a longer term than it has been in the past, which allows us a substantial amount of runway to provide other solutions and Problem Solving Initiatives to this partner. They're important, and that's great. And the economy, which I think we've talked about in the past, has been relatively stable.

Speaker Change: Thanks.

Speaker Change: Sure, I don't have a response to the latter part of your question, but I did allude to in the

Speaker Change: outset of my, or I guess towards the end of my prepared remarks, that the agreement is for a longer term than it has been in the past, which allows us substantial

Speaker Change: amount of runway to provide other solutions and

George Gresham: Some of them might be financial in nature, and they want to provide a more financial solution so that they can have longer-term, more meaningful, more depthful relationships. So I think those three factors have all been working in our favor, and leading to some of our success so far.

George Gresham: They're important, but that's great. And the economics, which I think we've talked about in the past, have been relatively static. So by that, we mean the revenue growth or lack thereof does generally not impact the margin, the dollar margin of that account. And the account has been adjusted in order to allow some opportunity for us to have growth in that relationship as revenue grows. I wouldn't call it linear, but it's better than it was before, and we're quite pleased with that relationship. So good.

Speaker Change: problem-solving initiatives to this partner that are important, and that's great. And the economics, which I think we've talked about in the past, have been relatively static. So by that, we mean

George Gresham: So by that, we mean revenue growth or lack thereof does generally not impact the margin, the dollar margin of that account, and the account has been adjusted in order to allow some opportunity for us to have growth in that relationship as revenue grows. I wouldn't call it linear, but it's better than it was before, and we're quite pleased with that relationship.

Speaker Change: The revenue growth or lack thereof does generally not impact the margin, the dollar margin of that account. And the account has been adjusted in order to allow some opportunity for us to have growth in that relationship as revenue grows.

George Gresham: And then lastly, for me, on the renewal of the large FinTech service partner, any changes in the relationship or unit economics of that renewal that you can share, and also I'd be curious to know if this is something that went up as a competitive process. Thanks. Sure. I don't have a response for the latter part of your question, but I did allude to in the outset of my, or I guess, towards the end of my prepared remarks, that the agreement is for a longer term than it has been in the past, which allows us substantial amount of runway to provide other solutions and problem-solving initiatives to this partner.

Speaker Change: I wouldn't call it linear but it's better than it was before and more quite pleased with that relationship.

James Rush: Thank you. Thank you. Thank you.

James Rush: Sounds good. Congratulations on the progress.

James Rush: Congrats on the progress. Thanks, James. Appreciate it.

James Rush: Thanks, James. I appreciate it.

Speaker Change: Sounds good. Congrats on the progress.

Operator: This concludes our question and answer session.

Operator: This concludes our question and answer session. I would like to turn the conference back over to George Gresham for any closing remarks.

James Unruh: Thanks, James. Appreciate it.

George Gresham: I would like to turn the conference back over to George Gresham for any closing remarks. Thank you, operator. As I do from time to time and closing, I would say, you know, the company's gone through a journey over the last couple of years; been some down for sure. We've had some challenges that we've weathered, and I want to take an opportunity to express my deep gratitude to our team members. Around the world, who are contributing so much to Green Dot, we have a great team of people and really appreciate all their hard work and effort, and of course appreciate our investors and those of you interested in our story.

Speaker Change: This concludes our question and answer session. I would like to turn the conference back over to George Gresham for any closing remarks.

George Gresham: Thank you, Operator. As I do from time to time in closing, I would say, you know, the company's gone through a journey over the last couple of years. There have been some downs, for sure.

George Gresham: Thank you, operator. As I do from time to time in closing, I would say, you know, the company's

George Gresham: and gone through a journey over the last couple of years, been some...

George Gresham: They're important, but that's great. And the economics, which I think we've talked about in the past, have been relatively static. So by that, we mean the revenue growth or lack thereof does generally not impact the margin, the dollar margin of that account. And the account has been adjusted in order to allow some opportunity for us to have growth in that relationship as revenue grows. I wouldn't call it linear, but it's better than it was before and we're quite pleased with that relationship. So good. Congrats on the progress. Thanks James.

George Gresham: We've had some challenges that we've weathered, and I want to take this opportunity to express my deep gratitude to our team members around the world who are contributing so much to Green Dot. We have a great team of people and really appreciate all their hard work and effort, and, of course, we appreciate our investors and those of you interested in our story. So we're going to keep swinging. We've got a great future ahead of us and are really looking forward to getting there. Thank you all for your interest in the company. Bye-bye. The conference has now concluded.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Speaker Change: Downs for sure. We've had some challenges that we've weathered and I want to take an opportunity to express my deep gratitude to our team members.

George Gresham: around the world who are contributing so much to Green Dot. We have a great team of people and really appreciate all their hard work and effort. And of course appreciate our investors.

George Gresham: So we're going to keep swinging. We've got a great future ahead of us and really looking forward to getting there. Thank you all for your interest in the company.

George Gresham: and those of you interested in our story. So we're gonna keep swinging. We've got a great future ahead of us and really looking forward to getting there. Thank you all for your interest in the company.

George Gresham: Bye bye.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

George Gresham: Thanks for watching and I'll see you next time, bye bye!

Speaker Change: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

Unknown Executive: Appreciate it. This concludes our question and answer session.

Speaker Change: Episode 2

Operator: Music [music]

George Gresham: I would like to turn to the conference back over to George Gresham for any closing remarks. Thank you operator. As I do from time to time and closing, I would say, you know, the company's gone through a journey over the last couple of years, been some down for sure. We've had some challenges that we've weathered and I want to take an opportunity to express my deep gratitude to our team members. Around the world, who are contributing so much to Green Dot, we have a great team of people and really appreciate all their hard work and effort and of course appreciate our investors and those of you interested in our story.

George Gresham: So we're going to keep swinging. We've got a great future ahead of us and really looking forward to getting there. Thank you all for your interest in the company. Bye bye. The conference is now concluded. Thank you for attending today's presentation. You may now disconnect. H.O.E.C.E.C.E.C.E.C.E.C.E.C.E,

Unknown Executive: H.O.E.C.E.C.E.C.E.C.E.C.E.C.E.

Speaker Change: www.globalonenessproject.org www.globalonenessproject.org

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