Green Dot 2015 Annual Report Download - page 44

Download and view the complete annual report

Please find page 44 of the 2015 Green Dot annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

38
Comparison of Consolidated Results for the Years Ended December 31, 2015 and 2014
Operating Revenues
The following table presents a breakdown of our operating revenues among card revenues and other fees,
processing and settlement service revenues and interchange revenues, as well as contra-revenue items:
Year Ended December 31,
2015 2014
Amount % of Total
Operating Revenues Amount % of Total
Operating Revenues
(In thousands, except percentages)
Operating revenues:
Card revenues and other fees $ 318,083 45.8%$ 253,155 42.1%
Processing and settlement service revenues 182,614 26.3 179,289 29.8
Interchange revenues 196,523 28.3 178,040 29.6
Stock-based retailer incentive compensation (2,520) (0.4)(8,932) (1.5)
Total operating revenues $ 694,700 100.0%$ 601,552 100.0%
Card Revenues and Other Fees — Card revenues and other fees totaled $318.1 million for the year ended
December 31, 2015, an increase of $64.9 million, or 26%, from the comparable period in 2014. The increase was
primarily the result of a higher volume of monthly maintenance fees, ATM fees and transaction fees of $26.7 million,
$16.8 million and $10.4 million, respectively, driven by our recent acquisitions of companies focused on online and
direct-to-consumer marketing channels. Card revenues and other fees also increased as a result of period-over-period
growth in revenue per active card, driven by favorable customer behavior in all of our prepaid card portfolios.
Processing and Settlement Service Revenues — Processing and settlement service revenues totaled $182.6
million for the year ended December 31, 2015, an increase of $3.3 million, or 2%, from the comparable period in 2014.
We generated $70.0 million in tax refund processing services, for which there were minimal revenues for the comparable
period in 2014. The revenues generated from our tax refund processing services were offset by a period-over-period
decline of 22% in the number of cash transfers sold or $66.6 million, due to the discontinuation of our MoneyPak PIN
product during the first quarter of 2015.
Interchange Revenues — Interchange revenues totaled $196.5 million for the year ended December 31, 2015,
an increase of $18.5 million, or 10%, from the comparable period in 2014. The increase was primarily the result of
period-over-period growth of 13% in purchase volume, partially offset by a slight decline in the effective interchange
rate we earn on purchase volume. This average rate decline was the result of a shift in the mix of payment networks
and payment types and can fluctuate period to period.
Stock-based Retailer Incentive Compensation — Stock-based retailer incentive compensation was $2.5 million
for the year ended December 31, 2015, a decrease of $6.4 million, or 72%, from the comparable period in 2014.
Beginning in May 2015, we no longer recorded stock-based retailer compensation as a result of our repurchase right
lapsing completely.
Operating Expenses
The following table presents a breakdown of our operating expenses among sales and marketing, compensation
and benefits, processing, and other general and administrative expenses:
Year Ended December 31,
2015 2014
Amount % of Total
Operating Revenues Amount % of Total
Operating Revenues
(In thousands, except percentages)
Operating expenses:
Sales and marketing expenses $ 230,441 33.2%$ 235,227 39.1%
Compensation and benefits expenses 168,226 24.2 123,083 20.5
Processing expenses 102,144 14.7 79,053 13.1
Other general and administrative expenses 134,560 19.4 105,200 17.5
Total operating expenses $ 635,371 91.5%$ 542,563 90.2%