Los Angeles Business Journal

Personnel Costs Lower Green Dot’s Quarter

By Deborah Crowe Tuesday, April 30, 2013

Shares of Green Dot Corp. were up more than 5 percent in after-hours trading Tuesday after the prepaid debit card company reported lower but better-than-expected net income in the first quarter.

After the markets closed, the Monrovia company reported net income of $15.6 million (35 cents a share), 5.5 percent (2 cents) lower than in the same period a year earlier. Revenue rose 9 percent to $154 million.

Higher costs, particularly compensation and benefit expenses, dampened results. Chief Executive Steve Streit said the results were better than even the company’s internal forecasts, citing “solid gains in our key usage metrics, particularly in average spend, reloads, and revenue per card.”

But he cited “a lack of certainty” for the rest of the year, noting that increased competition in the prepaid market left executives disinclined to raise the company’s full-year guidance.

Shares earlier closed down 25 cents, or less than 2 percent, to $15.71 on the New York Stock Exchange, but rose 5.5 percent in after-hours trading.