Green Dot 2015 Annual Report Download - page 38

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ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Annual Report on Form 10-K, including this Management’s Discussion and Analysis of Financial Condition
and Results of Operations, contains forward-looking statements regarding future events and our future results that are
subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934 (the
“Exchange Act”). All statements other than statements of historical facts are statements that could be deemed to be
forward-looking statements. These statements are based on current expectations, estimates, forecasts and projections
about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,”
“anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,”
“strives,” “may” and “assumes,” variations of such words and similar expressions are intended to identify forward-
looking statements. In addition, any statements that refer to projections of our future financial performance, our
anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are
forward-looking statements. Readers are cautioned that these forward-looking statements are subject to risks,
uncertainties, and assumptions that are difficult to predict, including those identified below, under “Part I, Item 1A. Risk
Factors,” and elsewhere herein. Therefore, actual results may differ materially and adversely from those expressed in
any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for
any reason.
In this Annual Report, unless otherwise specified or the context otherwise requires, “Green Dot,” “we,” “us,” and
“our” refer to Green Dot Corporation and its consolidated subsidiaries.
Overview
Green Dot Corporation, along with its wholly owned subsidiaries, is a pro-consumer financial technology innovator
with a mission to reinvent personal banking for the masses. We are the largest provider of reloadable prepaid debit
cards and cash reload processing services in the United States. We are also a leader in mobile technology and mobile
banking with our award-winning GoBank mobile checking account. Additionally, we are the largest processor of tax
refund disbursements in the U.S. Our products and services are available to consumers through a large-scale
"branchless bank" distribution network of more than 100,000 U.S. locations, including retailers, neighborhood financial
service center locations and tax preparation offices, as well as online, in the leading app stores and through leading
online tax preparation providers.
Financial Results and Trends
Our results of operations for the years ended December 31, 2015 and 2014 were as follows:
Year Ended December 31,
2015 2014 Change %
(In thousands, except percentages)
Total operating revenues 694,700 601,552 93,148 15.5 %
Total operating expenses 635,371 542,563 92,808 17.1 %
Net income 38,415 42,693 (4,278) (10.0)%
Total operating revenues
Total operating revenues for the year ended December 31, 2015 increased compared to the year ended
December 31, 2014, primarily due to increases in revenues contributed from our acquisitions, offset by decreases in
revenues due to the discontinuation of our MoneyPak PIN product in early 2015. Within our Account Services segment,
card revenues and other fees and interchange revenues increased, driven primarily by sales of prepaid cards under
programs acquired through our acquisitions of companies focused on online and direct-to-consumer marketing
channels. Within our Processing and Settlement Services segment, revenues increased as a result of tax refund
processing revenues generated during the first six months of 2015, despite a significant decline in our cash transfer
revenues, primarily as a result of the discontinuation of our MoneyPak PIN product.
As a result of the discontinuation of our MoneyPak PIN product during the first quarter of 2015, our cash transfer
revenues have declined on a year-over-year basis in absolute dollars and as a percentage of total operating revenues.
While it is difficult to precisely quantify the full extent to which our business has been impacted by the discontinuation
of our MoneyPak PIN product, we believe the discontinuation has adversely impacted the performance of our key
metrics during the year ended December 31, 2015, such as the number of active cards in our portfolio, gross dollar
volume and purchase volume.
We experienced a decline in revenue associated with the Walmart MoneyCard program during the years ended
December 31, 2015 and 2014 due primarily to lower fee products introduced under the program and a decline in the