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NEW YORK - Green Dot Corporation (NYSE:GDOT) shares surged 21% after the financial technology company reported second-quarter earnings that exceeded analyst expectations and raised its full-year guidance, driven by strong performance in its banking as a service (BaaS) division.
The company reported adjusted earnings per share of $0.40 for the second quarter, beating analyst estimates of $0.30. Revenue came in at $501.16 million, significantly above the consensus estimate of $460.86 million and up 24% YoY from $402.56 million. The strong quarterly performance was fueled by balance sheet optimization, growth from existing partners, and disciplined cost management.
Green Dot raised its full-year adjusted earnings guidance to between $1.28 and $1.42 per share, up from its previous range of $1.14 to $1.28, and above analyst expectations of $1.22. The company maintained its revenue forecast of $2.0 billion to $2.1 billion.
"It was another solid quarter as we built on the momentum of the last several quarters, launched a new partnership with Samsung (KS:005930) and announced an exciting new partnership with Credit Sesame," said William Jacobs, Interim Chief Executive Officer of Green Dot.
The company’s adjusted EBITDA increased 34% to $45.43 million compared to $34 million in the same quarter last year, with adjusted EBITDA margin improving to 9.1% from 8.4% a year ago.
"With the performance so far in the first half of the year, coupled with the contribution we anticipate from improving the earnings performance of our balance sheet, we are comfortable raising our outlook for the year," said Jess Unruh, Chief Financial Officer.
Green Dot’s B2B Services segment showed particularly strong growth, with revenue increasing 38% to $348.65 million from $252.06 million in the year-ago quarter.
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