Tuesday, November 5, 2013
Green Dot expects double-digit growth in 2014
Prepaid card pioneer Green Dot Corp. expects 2014 to return the Pasadena, Calif.-based company to double-digit growth in 2014. Green Dot based its prediction on the staying power of its prepaid card products in relation to those of its competitors, as well as the growth of its distribution network through partnerships with several national retail chain stores.
Via a Seeking Alpha transcript of Green Dot's Nov. 1, 2013, conference call to discuss its third quarter 2013 financial results, Green Dot's founder and Chief Executive Officer Steven W. Streit said, "[G]iven all of these new growth initiatives already deployed and performing in the market, combined with the organic same-store growth that we continue to enjoy, even in these times of enhancing risk controls and increased competition, it's fair to say that we believe we are well positioned to return to double-digit growth in 2014."
Streit did not cite a specific growth percentage for 2014, but pointed to how Green Dot is realizing growth in prepaid card signups as its cards are available in about 30,000 more locations through new distribution partnerships, such as with Dollar General Corp., Dollar Tree Inc. and The Home Depot U.S.A. Inc. in the second quarter of 2013, and Family Dollar Stores Inc. in the third quarter.
The result is that "card sales have been really, really good; frankly, better than I would've thought or hoped," Streit said. Given Green Dot's calculations, "mathematically, it would almost be impossible not to be in the double digits next year," he added.
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