Green Dot Corporation (NYSE:GDOT) shares jumped 28% intra-day after the financial technology firm posted stronger-than-expected second-quarter results and raised its full-year earnings outlook, driven by growth in its banking-as-a-service (BaaS) segment.
The company reported adjusted earnings of $0.40 per share, beating analyst estimates of $0.30. Revenue totaled $501.16 million, well above the consensus forecast of $460.86 million and up 24% from $402.56 million a year earlier. Growth was fueled by balance sheet optimization, expansion from existing partnerships, and disciplined expense management.
Green Dot increased its full-year adjusted earnings forecast to $1.28-$1.42 per share, up from its previous range of $1.14-$1.28 and above analyst expectations of $1.22. The company reaffirmed its revenue projection of $2.0 billion to $2.1 billion.
Adjusted EBITDA rose 34% to $45.43 million from $34 million a year ago, with EBITDA margin improving to 9.1% from 8.4% in the prior-year quarter.
