Green Dot Corporation (NYSE:GDOT) Q3 2024 Earnings Conference Call November 7, 2024 5:00 PM ET

Company Participants

Tim Willi - Senior Vice President, Finance & Corporate Development
George Gresham - Chief Executive Officer & President
Jess Unruh - Chief Financial Officer

Conference Call Participants

Operator

Hello, and welcome to the Green Dot Corp. Third Quarter 2024 Conference Call. All participants will be in a listen-only-mode. [Operator Instructions] Please note, this event is being recorded.

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

Tim Willi

Thank you, and good afternoon, everyone. Today, we are discussing Green Dot's third 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 will 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.

George Gresham

Good afternoon, and thank you for joining our third quarter earnings call. During the quarter, we delivered results in line with our expectations, and we have now largely moved past the headwinds associated with deconversions in the first half of 2023. As a result, we are seeing improved year-over-year performance with non-GAAP revenue up 16% and adjusted EBITDA up 19%, the strongest growth we have seen in these metrics in over 2 years.

These results were driven by investments and continued improvement in our B2B segment, particularly BaaS or embedded finance. We have also seen moderating rates of decline in actives on a year-over-year basis, and we posted sequential growth for the first time since the first quarter of 2021. This demonstrates we are making progress improving the financial and operational performance of Green Dot.