Green Dot Corporation

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

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 statements. 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-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.

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. 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, 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 a competitive advantage. I look forward to these standards being applied uniformly and transparently across the embedded finance and payments landscapes. 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. 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. Our most urgent priorities have been and remain, first, compliance, ensuring we are good stewards of our customers' funds as 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. 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, margins. Being good stewards of our investor funds by managing costs, improving margins, and bringing our product to market at low marginal cost. Let me now hand it over to Jeff for his comments before I make some additional comments regarding these priorities. Jeff?