Green Dot 2014 Annual Report Download - page 26

scrutiny. We also might have to discontinue certain products or services. As a result, our total operating revenues,
operating results, prospects for future growth and overall business could be materially and adversely affected.
Our actual operating results may differ significantly from our guidance.
From time to time, we may issue guidance in our quarterly earnings conference calls, or otherwise, regarding our
future performance that represents our management’s estimates as of the date of release. This guidance, which includes
forward-looking statements, is based on projections prepared by our management. These projections are not prepared
with a view toward compliance with published guidelines of the American Institute of Certified Public Accountants, and
neither our independent registered public accounting firm nor any other independent expert or outside party compiles
or examines the projections. Accordingly, no such person expresses any opinion or any other form of assurance with
respect to those projections.
Projections are based upon a number of assumptions and estimates that, while presented with numerical specificity,
are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of
which are beyond our control, and are based upon specific assumptions with respect to future business decisions,
some of which will change. For example, our recent estimates of the financial impact of the discontinuation of our
MoneyPak PIN product are subject to a variety of assumptions and estimates and are highly uncertain due to our
reliance on our retail distributors to transition our MoneyPak customers to POS swipe reload transactions. While we
have stated and we intend to continue to state possible outcomes as high and low ranges that are intended to provide
a sensitivity analysis as variables are changed, we can provide no assurances that actual results will not fall outside
of the suggested ranges.
The principal reason that we release guidance is to provide a basis for our management to discuss our business
outlook with analysts and investors. We do not accept any responsibility for any projections or reports published by
any of these persons.
Guidance is necessarily speculative in nature, and it can be expected that some or all of the assumptions underlying
the guidance furnished by us will prove to be incorrect or will vary significantly from actual results. For example, on a
number of occasions in 2014, we adjusted our revenue guidance as our assumptions were proven incorrect by our
actual results. Accordingly, our guidance is only an estimate of what management believes is realizable as of the date
of release. Actual results will vary from our guidance and the variations may be material. In light of the foregoing,
investors are urged not to rely upon our guidance in making an investment decision with respect to our Class„A common
stock.
Any failure to implement our operating strategy successfully or the occurrence of any of the events or circumstances
set forth in this Item„1A could result in our actual operating results being different from our guidance, and such differences
may be adverse and material.
We receive important services from third-party vendors. Replacing them would be difficult and disruptive
to our business.
Some services relating to our business, including fraud management and other customer verification services,
transaction processing and settlement, card production, and customer service, are outsourced to third-party vendors.
We also depend on third-party banks to assist with our tax refund processing services. It would be difficult to replace
some of our third-party vendors in a timely manner if they were unwilling or unable to provide us with these services
during the term of their agreements with us and our business and operations could be adversely affected. In particular,
due to the seasonality in our tax refund processing services business, any material service interruptions or service
delays with key vendors during the tax season could result in losses that have an even greater adverse effect on that
business than would be the case with our overall business.
Our business could suffer if there is a decline in the use of prepaid cards as a payment mechanism or
there are adverse developments with respect to the prepaid financial services industry in general.
As the prepaid financial services industry evolves, consumers may find prepaid financial services to be less attractive
than traditional or other financial services. Consumers might not use prepaid financial services for any number of
reasons, including the general perception of our industry. For example, negative publicity surrounding other prepaid
financial service providers could impact our business and prospects for growth to the extent it adversely impacts the
perception of prepaid financial services among consumers. If consumers do not continue or increase their usage of
prepaid cards, our operating revenues may remain at current levels or decline. Predictions by industry analysts and
others concerning the growth of prepaid financial services as an electronic payment mechanism may overstate the
growth of an industry, segment or category, and you should not rely upon them. The projected growth may not occur
or may occur more slowly than estimated. If consumer acceptance of prepaid financial services does not continue to
develop or develops more slowly than expected or if there is a shift in the mix of payment forms, such as cash, credit
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