Green Dot 2010 Annual Report Download - page 27

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Our operating results may fluctuate in the future, which could cause our stock price to
decline.
Our quarterly and annual results of operations may fluctuate in the future as a result of a variety of
factors, many of which are outside of our control. If our results of operations fall below the expectations of
investors or any securities analysts who follow our Class A common stock, the trading price of our Class A
common stock could decline substantially. Fluctuations in our quarterly or annual results of operations
might result from a number of factors, including, but not limited to:
• the timing and volume of purchases, use and reloads of our prepaid cards and related products and
services;
• the timing and success of new product or service introductions by us or our competitors;
• seasonality in the purchase or use of our products and services;
• reductions in the level of interchange rates that can be charged;
• fluctuations in customer retention rates;
• changes in the mix of products and services that we sell;
• changes in the mix of retail distributors through which we sell our products and services;
• the timing of commencement, renegotiation or termination of relationships with significant retail
distributors and network acceptance members;
• the timing of commencement of new initiatives that cause us to expand into new distribution
channels, such as payroll, and the length of time we must invest in those channels before they
generate material operating revenues;
• changes in our or our competitors’ pricing policies or sales terms;
• the timing of commencement and termination of major advertising campaigns;
• the timing of costs related to the development or acquisition of complementary businesses;
• the timing of costs of any major litigation to which we are a party;
• the amount and timing of operating costs related to the maintenance and expansion of our business,
operations and infrastructure;
• our ability to control costs, including third-party service provider costs;
• volatility in the trading price of our Class A common stock, which may lead to higher stock-based
compensation expenses or fluctuations in the valuations of vesting equity that cause variations in
our stock-based retailer incentive compensation; and
• changes in the political or regulatory environment affecting the banking or electronic payments
industries generally or prepaid financial services specifically.
The industry in which we compete is highly competitive, which could adversely affect our
operating revenue growth.
The prepaid financial services industry is highly competitive and includes a variety of financial and
non-financial services vendors. Our current and potential competitors include:
• prepaid card program managers, such as First Data Corporation (or First Data), NetSpend
Holdings, Inc. (or Netspend), AccountNow, Inc. (or AccountNow), PreCash Inc. (or PreCash)
and UniRush, LLC (or Rush Card);
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