Green Dot Corporation

Hey, and welcome to the Green Dot third quarter 2022 conference call. All participants will be in listen-only mode. If 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. Please note that this event is being recorded. I'd like to turn the conference over to Mr. Tim Willey, Senior Vice President of Investor Relations and Corporate Development. You may now begin now, sir. Thank you.

Thank you and good afternoon, everyone. Today we are discussing Green Dot's third quarter 2022 financial and operating results. Following our remarks, we'll open the call for 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 and certain factors that could cause actual results to differ materially from the forward-looking statements. During the call, we will make reference to our financial measures that do not conform with generally accepted accounting principles. For the sake of clarity, unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis. Information may be calculated differently than similar non-GAAP data presented by other companies. Quantitative 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 property of the Green Dot Corporation and is subject to copyright protection. Now, I'd like to turn the call over to George.

Thank you, Tim, and good afternoon, everyone. We have a lot to cover today, including the recent changes to our management team you should all now be aware of, an overview of our third quarter results, an update on our key near-term priorities as we continue transforming Green Dot into a next-generation financial services platform, and a brief overview of our longer-term strategic opportunities and priorities. Then we will open it up for questions. So let's jump in. Our financial results for the quarter came in at or above the high end of our guidance range. Revenue of $337 million was up 3%, while EBITDA margins were 13.5%, and EPS of 44 cents was up 2%. We have been seeing weaker-than-expected consumer activity, particularly in the retail space, which then extends to Green Dot Network utilization. These shortfalls have been largely offset by stronger-than-expected performance from our BAS partnerships and contributions from our bank. On a year-to-date basis, revenue was up about 2%, while adjusted EBITDA and EPS were up about 11% and 15% respectively. Free cash flow on a year-to-date basis was up 78%. Jess will provide some additional details on our results in a few minutes. Though we face some uncertainties related to the broader macro environment, we have made significant positive changes at Green Dot. I am happy with our consolidated results and grateful for all the hard work the team has put in to drive our business forward. I'd now like to take a moment to share a little more context and my perspective on taking on the role as CEO. Dan Henry has been a friend and colleague for many years. He has had an amazing career of value creation. He laid a strong foundation and path forward for Green Dot during a period of critical transition. He built an impressive management team and established a solid vision and purpose, and we appreciate his contributions. Dan will continue to be a friend of Green Dot for many years to come, and we wish him the best in his future endeavors. I am humbled and feel privileged to assume this role. I simply couldn't feel more strongly about the opportunities this company has in front of it, and I hope my experience, knowledge, and approach will serve Green Dot well and lead it to its inevitable success. The two most important first steps I plan to take in this role are to first, set us forward on a clear strategic path to success. I recently had the privilege of laying out our strategic roadmap for our board, and we'll share some of those highlights with you in a few moments. Second, and equally important, will be to ensure we have the right team to execute against our opportunities. To that end, I am pleased to make the following changes to our leadership team. Chris Ruppel has been named Chief Revenue Officer, responsible for overseeing all revenue-generating businesses, including Bass, Consumer Direct, Tax, Processing, Green Dot Network, and PayCard, as well as the company's marketing and product development teams. Chris brings a wealth of experience to this role as an entrepreneur and proven value creator. He co-founded and ran our pay card business for nearly 20 years, building it into one of the largest and fastest growing pay card businesses in the country. Prior to co-founding Rapid, he held numerous leadership roles at private equity portfolio companies. He is a proven executive that can help maximize the revenue opportunities across our franchise via his ability to understand cross-channel collaboration, disciplined resource allocation, and mentoring talent. Jess Unruh, who most recently served as operational CFO and chief accounting officer and previously served as interim CFO, has been named chief financial officer. Prior to joining Green Dot in 2009, Jess was with Ernst & Young for a number of years. Over the last year, he has been a tremendously valuable resource and partner. His deep understanding of our business and financial metrics and analytics are unparalleled, and we are fortunate to have him lead this function in an official capacity going forward. Finally, Theresa Watkins, who most recently served as our SVP of operations, has been named Chief Operations Officer, responsible for overseeing payment processing, payment networks, supply chain, settlement, sourcing, procurement, and customer experience and support. Teresa is a natural leader with deep experience managing complex operational teams and implementations. She's also played an instrumental role in our banking and payment platforms transformations, and she is a valuable addition to the executive team. Let me now hand it over to Jess to give you some more detail on our third quarter results and full year expectations.