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Green Dot Corporation (GDOT+0.68%) Class A $0.001 par value has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports total operating revenues of $409.7 million for the quarter, representing a 16% increase from $353.0 million in the same quarter the previous year. This growth was primarily driven by higher revenues in the B2B Services segment.
Operating expenses for the quarter were $412.7 million, up 15% from $359.9 million in the same period last year. The increase was mainly due to higher processing expenses associated with the growth of certain BaaS account programs.
The company reported a net loss of $7.8 million for the quarter, compared to a net loss of $6.3 million in the previous year. The loss was attributed to increased operating expenses.
Card revenues and other fees totaled $310.4 million, a 22% increase from the previous year, driven by growth in gross dollar volume in the B2B Services segment.
Cash processing revenues decreased by 4% to $34.9 million, primarily due to a decrease in cash transfer revenues.
Interchange revenues fell by 12% to $48.4 million, impacted by a decrease in purchase volume and a lower effective interchange rate.
Net interest income increased by 92% to $16.1 million, primarily due to higher yields earned at the Federal Reserve.
Consumer Services segment revenues decreased by 17% to $98.0 million, with the decline attributed to a decrease in active accounts and purchase volume.
B2B Services segment revenues increased by 39% to $276.4 million, driven by strong growth in gross dollar volume.
Money Movement Services segment revenues decreased slightly to $31.9 million, with cash transfer revenues declining by 1%.
Green Dot Corporation's effective tax rate for the quarter was 4.6%, a decrease from 20.5% in the previous year, primarily due to the impact of general business credits and tax benefits from bank-owned life insurance policies.
The company issued and sold senior unsecured notes totaling $50 million in September and October 2024, bearing an interest rate of 8.75% per annum, maturing in September 2029.
Green Dot Corporation continues to focus on expanding its BaaS partner programs and improving its compliance controls and policies in response to regulatory scrutiny.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Green Dot Corporation Class A $0.001 par value quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.