Green Dot jumps after lifting FY revenue forecast, renewing Apple contract

Green Dot

09/08/2024 17:47

** Shares of digital bank Green Dot  GDOT.N  jump 10.5% to
$9.78
    ** After market close on Thursday, GDOT forecast annual
adjusted total operating revenue between $1.60 bln and $1.70
bln, higher than its previous expectation of $1.55 bln and $1.60
bln
    ** GDOT sees growing momentum in banking as a service (BaaS)
division thanks to a strong business pipeline and contract
renewal with its largest partner Apple  AAPL.O  
    ** BaaS is a type of financial technology that allows
software platforms to access banking capabilities that are
traditionally only offered by a licensed bank
    ** KBW analyst Timothy Switzer says a key highlight of the
quarter was GDOT's Apple renewal, which has a longer contract
term than its previous agreement and more favorable terms
    ** Adds that things are beginning to turn around for GDOT as
the BaaS division is generating significant growth thanks to the
growth of current and new partners
    ** Stock down 1.2% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))