Green Dot (GDOT) 3 Aug 232023 Q2 Earnings call transcript

Good day, and welcome to the Green Dot Corporation Second Quarter Earnings Conference Call. All participants will be in a listen-only mode. After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Tim Willi, Senior Vice President of Finance. ahead. go Please

good Dot’s and Today, are we Thank quarter afternoon, XXXX Green second results. financial discussing you, everyone. and operating

remarks, call the we’ll questions. our for Following your open

webcast, release, this Our ir.greendot.com. that recent found at earnings call most and can be accompany

recent comments refer the including As Please in statements statements. concerning and and the Green XX-K release Securities and cautionary Commission, language Form Dot’s include expectations a differ may most cause for forward-looking with future materially and XX-Q regarding Exchange additional our forward-looking that reminder, the factors results earnings actual filings our to to performance. and results in from the information could

During do the financial our with will principles. measures to not call, that generally we refer conform accepted accounting

of the talk our reconciliation information unless numbers differently to of a clarity, the be GAAP on than today’s all noted, by about subject Quantitative property Corporation is presented this basis. data Green financial in will to release. other sake Information of Dot be financial and we non-GAAP appears non-GAAP otherwise Content protection. companies. similar call is of information directly For may calculated today copyright comparable press the non-GAAP

over to Now I’d to turn the like George. call

seamlessly, banking joining to privilege. and afternoon, is access Green bank not XXXX Dot, the with Good to businesses that our our confidence. should recognize the give you and affordably everyone, earnings be thank to for power mission quarter We second call. At system consumers a and

depositors To this financial up values, strategy tools of market-leading important banking, cost. executing them, that we critically of live is we provide value to investors. to and something take platform, stewardship fulfill are for they are may core network since so low others and technology at our a care that Our we integrating mission whether is or

movement in place. the Each own payment Green we Network. our we money the U.S. the if largest one the not of, of in already platforms bank, own with are technology cash these Dot We in own and networks

distribution In channels or deposit addition, through directly accounts of to locations. we demand distribute we set where own a consumers diverse retail

our through thousands also sizes deposit management support products We all of group our flow accounts. sophisticated businesses largest rapid! additional demand with tax facilitate some We distribution businesses, and cash embedded companies for of the these PayCard the to of of in we world particular support the their financial our and potential are To way. we optimizing technology products to our we tailored realize in bring roadmap, agile strategy, product solutions a integrating more and of can fully assets needs. highly market focused timely this enhancing on through so

prior are This metrics higher non-GAAP as on in one-time the these So several sharing expenses last in and focus the benefits realized both as the more cover we growth while Despite GOXbank, shortage this non-GAAP on declined. in let continues partner evolve evolution we of and on several a interest deconversion for sunset, while forward, of the no earnings to we revenue the interest to of was or the attributable will decline partners, ongoing as we quarter, grow. from see compared same finance attrit for results to direct of challenges year. business journey? is financial a our impact embedded market comparisons year-on-year difficult rates and and quarter pipeline opportunities stabilizing how our second namely of legacy headwinds, the we move trends, and Dot brands of Jess account growing for several evidence Green as variety GAAP factors, the our X% But detail. we up doing year,

sharing selected in am We on-demand newest we calls. have Green technology a which referenced a in global this a of Dot solution. embedded pleased I channel, to launch partner financial leader has as signed am confirm a banking market-leading our BaaS look announcing is Ceridian, announce Ceridian’s partner Along national to I consumer which and very for program Wallet, we previous more meaningful Dayforce of the and capital forward have partner, our also new pleased details our these pay lines, to segment. coming service in partnership finance months. center U.S. management part human in

and a We the tools PLS and Green their one customers. a are the service have in with deposit a look LMI be among nation’s offer of quarters. the shared other and thrilled those service partnership to I services and and community-based working forward PLS, to our to to proud largest companies the particularly is details not the financial new we of tools PLS more family commitment features account launch financial Ceridian be providers, demand to in that coming partnerships more empower community. on sharing consumers, providing to could Dot with

the Business priority. is And where redirecting the we areas energies technology more conversion, remains key one this our and complete focus. development broadly of as we are a

and and spoke uniform year are be While of strong. making call, proving XXXX and which focused to in quarter’s our about Chief Officer, strides instituting Revenue we model more pipeline, pursuing our year this is the approach enduring is Ruppel, are will initiatives, opportunities, XXXX On about execution on focused the last Chris and how how we of internal significant regimented a on identifying building remains execution go revenue we streams.

from forward. a of position a efficient, This scalable for in journey more nimble, in us operate exit has platform business expected transformation, are a legacy process, processors by final The this it this to completed the for and am effort this now has a our discussed the going road year focus team company technology month. conversion complete nearly to a As be been been activities challenging plus to share with two many our new as of our events consuming with management. finalization from puts processor pleased legacy to our executed relates members seven our we having I driven long to

opportunities, cleanup of our have and redirect post-conversion this bringing to phase offerings, enhancements to will and and priorities to including focus additional growth. we to remaining, work and course, allows work other completion us of While product energy technology our

In we addition take of deposits, responsibility being seriously. extremely stewards to a consumer

stewards to on are which We of continue a making management shareholder our also focus margin expense expansion and we DNA. why capital, is of corporate part

making thoughtful evolving a our culture and a We strides managing are with on significant focus in to costs allocating considerate dedicated capital and approach. having

due the move to into is technology cost to we conversion, as costs expect carrying we current abate While the those period excess XXXX.

responsibilities in will We to regulatory our and better order in course of investments to make obligations serve continue customers.

for in journey, along to plenty are to and team strides innings only of important I with strategy. with but coming our we members, the our execute as middle we making are we our summary, In do. want us partners, this all on our investors thank

Now, let it Jess. me hand over to

our said came then Thanks, the consolidated line our as George, financial quarter through our highlights and provide on with color a Overall, expectations good you and our George results in I’ll of walk and key year. our solid progress for towards is afternoon, updated everyone. goals. I’ll guidance

of year-over-year EBITDA year-over-year, revenue discussed. and provide adjusted George Our X% GAAP respectively while non-GAAP for quarter on grew the I’ll our for reasons each down color the was X% segments. and

First in our segment. Consumer

patterns of on Overall, program, retail distribution and channel a As expense the that direct-to-consumer within segment and the both in dedicated comprised is focus and brand our you retail of is of runoff. our channels. segment at legacy now know, retail, our our this changing impacted our GOXbank Consumer non-renewal consumer direct-to-consumer brands by are

reposition steps secular non-renewable to our program, While this business. are we and retail changes taking channels impacted the by

of Specifically, through shelves. loyal we are our digital strategies actively experiences financial relationships not account to wide products are continue payment help enduring and retail build experiences, range our to just with partners on working that embedded a encompass retail designed customer on partners and that

efficient. We legacy into also partner In new structure deliberately on to and AccountNow signed result, business, in our [ph] such others support spend runoff. as put continue GOXbank are we brands retail in fully POS and as to our commit and we marketing direct-to-consumer making cost a brand, a our we our Rush, focused more

in sunset brands we the our platform accounts quarter to on to had our second those success in through a of mentioned quarter some move conversions. converting We we as As first continue GOXbank. call, portion

not these accelerated. brands many legacy As did of expected, attrition an convert

of legacy own in GOXbank impact As that strong two channel per pronounced its deposit growth and the we as rate years the growth and a resulted revenue to quarter, become approximately in growth over GOXbank continued more attrition result rapid its move second year-over-year last brands and growth part forward. have of have which a XX%, will the accounts larger account. of has up In direct strong a

that decline quarter. Revenue I down in excluding the Segment channel provide in that the in color XX% some the by upper-teens me was accounts. the driven the retail year-over-year place, were during channel context retail low-teens. on segment year-over-year. With was revenue note, the the the of the performance in impact active revenue non-renewal Though of our in down declines in would let

year believe in The moderate the out direct smallest over the that decline its a continues two revenue worth decline we accounts and digit with I deposit sequential saw channel it’s direct in of quarter. decline mid-single slowest seen consistent first pointing over declines the with in have in years. that rate to

of deposit these in in higher our a GOXbank with part accounts accounts accounts are more accounts. engaged fueled channel volumes is also segment, Direct direct and retail, but momentum. some approximately the decline deposit moderating as This non-direct core revenues in by total builds than represent and highly

in as account GOXbank helping attrition the we per drive legacy particularly to rates, continues engagement offset portfolios. to with Revenue improve deeper

continued encouraged evolution, point. impact the an As believe GOXbank increased decline are the seeing drive are consumer for it’s in it an but segment help that and I’ve moderation overall by many the channel to that moving times, closer inflection on said having is and likelihood the we’re can this of what and direct we the rate from we

one-time and Segment particular compression and due second year, tough year-over-year in comparison. making the of quarter decline last benefits as XXXX, first in margin we revenue we a to profit year-over-year numerous of discussed our was the half by pretty the structure negotiated in expected XXXX the and down in XX% causing

was continues while the BXB growth our growth by which of aggregate the revenue and of XX% largely one The customers we where roll of our XX%. of revenue line segment, BaaS channels, consists on headwinds In the top driven from approximately and off up two actives BaaS revenue of BaaS power to faced partners. BaaS larger our channel PayCard remains

macro on channel, and saw revenue to by mix in account interchange staffing rates decisions. May the and our was of growth in Revenue inflation primary active experienced June. this XXXX temporary this our moderated has tiers hiring in where recession rebound active impacted PayCard of have impacted through vertical weighing due in in the shifts in that We late verticals the declines In one purchase also volume behavior. of shift a changes and ATM and year, is consumer we a industry

core strong in leading in said, offering confidence growth indicators well That coming that and should channel activity reaccelerate the continued the PayCard as as give in product in momentum us our sales quarters. EWA this

was of driven lower XX% PayCard BXB BaaS in down business the our last the had segment benefits as to on in the deconversions in Profit segment PayCard expense similar consumer margins pressure year rate. the I margin due expected, one-time and the discussed the client business to by just We in compression interchange dynamics from structure impact largely the channel. and

been business face as revenue growth, partner. newest to to incurring continue to expenses while support launch on pressure fast sales we strong, our believe what the PayCard of has in be invest we we momentum temporary the While also

Dot Shifting decline of to continues was timing refund to the business and down moderate see Network transfer revenue revenue volume. tax X% cash in decline from a to in in of second declines quarter XXXX. XXXX volume Money Movement Green our segment, from a mid-teens the mid-single-digit The year-over-year year-over-year

decline the in from the in segments. active accounts principally driven our other remain declines Revenue of impact

the While transactions up from party offset continued decline. helped some growth in third mid-teens the overall year-over-year of

Third-party programs now comprise transfer over XX% cash volume. of our total

low up Profitability last modest because a year. was versus Green expansion profits tax some year-to-date digits channel remains in basis, Dot our Our year-over-year On revenue down tax timing and and of shifts single volume processing flattish in strong both Network. with tax margin year-over-year. was refund

down income higher well partners to we a and adjustments. salaries our Our some revenue Interest final expected segment bank, pay as environment. costs due smaller of interest year-over-year in Corporate partner net of on we reflects and income was the share earn and as net best as interest rate administrative intercompany the sharing Other to

vast the and As partners and a and pay investments between rising we reminder, environment the an headwind created efforts up last technology XXXX and cash our blended a associated were as helped for Salaries from our rapidly the rate in earn on conversions. cutting of we segment. imbalance year costs effectively rate our yields the just creates and to slightly offset revenue cost general expenses the our other administrative with incremental

to turning Now guidance.

$X.XXX We to range revenue our range. this and of expect billion are reaffirming to billion midpoint of be the $X.XXX above

We non-GAAP to keeping are to million $X.XX. EPS our $XXX $XXX $X.XX narrowing our adjusted million range a Likewise, at our $XXX EBITDA to narrowing midpoint we to are million. range while

encouraged are results QX We we’re and goals. making our in towards trends by the our and progress

the color Turning year, fourth models. between high back generally round be imply balance second evenly with before rebounding more the in and to fourth quarter the out would let you of in quarter. bit third a the with non-GAAP quarter adjusted your quarter bit should from split levels a to At quarter in quarter. EBITDA the half XX% about bit and third more fourth of the impression the provide and level, This third margin the quarter me in the a a EPS revenue the

Consumer the a we the we more the year-over-year saw approximately for segment approximate Now profits full expect full for each QX. of in and we mid-teens. segment provide revenue in margins for with color In the be the BXB should XXXX revenue with year improvements to In the year year for segment, to the that in growth XX% look QX we flattish profits. segment, financial sequential Margins the each decline outlook year full on of segments. and bit

margins both down be in While basis roughly quarters. full see XXX XXXX, should sequential the we third from points and improvement fourth should year

we while, increased Movement to segment, we and interest flat In to an share. Money million. the range Corporate platform the begin call, profit QX progress for All In million in our XXXX In revenue essentially segment, rate the our reflect headwind as This in estimated we $XX a expenses headwind and million be expect recent range we an hikes. from last $XX through have XXXX to Other in the conversions. of with revenue of dollars earnings has year. several provided light costs cutting should move higher

diluted tax our effective rate year, For XX.X% average weighted count XX expect full to the share be I non-GAAP approximately million the shares. to be and

I’ll turn back to that, With it George.

Thank you, Jess.

accomplished quite half bit. back of the we year, As on I first look the a have

track technology our streamlined in conversions stretch realize million We’re savings goal platform a of more of the in final become completing cost $XX company. the on and and are to nimble

and Just as important, this for enables us to reallocate resources to focus the on opportunities other areas company.

been to onboarded new BaaS also over while partners business new newest has Green is customers excited in FSC channel and the our POS additional Our our signing six Network. Ceridian PayCard and and we have EWA partner and Dot a are to XXX customer

transformation That structure the on organization. of and work where very do, there’s moves said, pleased smart investment our investment the to am took focused to we Green also and capital and our given of for and hard I trust on goals and dedication investors being our and the stewards that our we Dot have the are team beyond, good us. of cost throughout efficiency and increasing I am be plenty in regulatory further we with XXXX Lastly, compliance, grateful deliver culture sound to reduce for of very work continue driving work while but customers while to our a as we still on

now questions. for let’s open Thank Green the interest you Dot your for in and line

you. Thank

question Ramsey will comes ahead. [Operator from Your Please El-Assal question-and-answer We from Instructions] begin the now session. Barclays. first go today

much of BaaS the beat remaining you offs questions roll taking insight Ramsey. my PayCard for on Thanks expectations. My BXB and by it driven provide Shray so versus well first some the on non-renewal Could came the BaaS on was the of is ahead contract questions. the segment, the this how for growth in Hi, business? in

one. that take I’ll

answering beat our the particular, principle results. we made one off partners. power question. so prepared offset of your a reference that revenue the continues sure BaaS the that’s of growth in from helping then In of So roll is BaaS, some driving BaaS I loss of and the line in to partners lot Make I’m in remarks a top the the that BaaS think

– then helpful. with impact absolutely. pace signing ramp what more if follow-up, at Yes, and Thanks. as about what do the throughout P&L how is we think for the Ceridian year? a a when That’s that ramp next And should revenues the the of just when year associated corresponding and up XXXX And impact? or so, and the

the ramp impact in Ceridian will XXXX These to programs while think be Yes, a I take relatively up. of small.

Ceridian launched the program. So we just

launch throughout and that more base new both in and XXXX, it’ll existing ramp XXXX an And then will to as the acquisition obviously attempt programs, in ramp – case in So have both convert then POS in of impact a year. well. there’s material the we’ll and

like think and for of more become time I for P&L. meaningful those programs, any the So our it’ll take to materialize

Appreciate it. Got it.

Thank you.

question from next comes Michael ahead. Your KBW. Please go from Perito

Hey my afternoon. taking questions. for good Thanks guys,

Michael. Hey,

the I some the provided segment on wanted start end of that there. Jess commentary to the at

I the think back relative growth the that kind just year want half to I correct? a sure, the a I revenue first – correctly, in that the year-on-year growth little where XX%. of year-on-year heard I half. BXB slowdown as Is suggests just bit you and segment of [indiscernible] to you of that I if were correctly in heard make

XXXX. for think see back XX% to I full half these With year that off. of to rolling I year-over-year – partners and vast respect have we’re going what first some I look versus just go to have and in you’re second the say half, partly

quarter from in impact the in and exceeded second those we essentially certainly those mention call our are programs quarter, quarter in first completely some the in first programs think gone. quarter, did had expectations first then the that I that and had our we

Got it.

guys, what’s And of kind gone period the Okay. of terms QX have in active accounts in next like have and of at are that to going the guys left quantified of here with you just numbers? end be deposits, terms in months programs the when you looking few

here, in my the active all memory I believe serves If BaaS channel, those gone. are

Got it.

of that made so? then but are updated of guys were, this providers more more financial what change which from notable opportunities calls, picture Okay. kind players not necessarily is XXX and a in of just to partners their BaaS you curious commentary smaller the ago looks quarter obviously days opportunities wondering the on other today kind competition and other last kind oriented about front, of a kind velocity or in any your there that of on so maybe segment helpful in space question, best And some competition, couple bank XX And has the so how comments or six months weren’t big seeing, fallout of guidance been of from from increasing, quality the the a pipeline the there all perspective. maybe if any the in that just the

It’s George. Michael. Hey,

in of much consumed respect capital relevant. answer And environment. markets the low competitors very facing then new I the business short pipeline unable the based getting higher or rate think their capital’s capital more There to previous the of they’re obviously opportunities. market is we’ve sustain that low where raise talked a remain low environments on obligations Many changing getting cost and they’re with are of some at We went capital. rate had our capital healthier. that our on – about capital to to raised interest models their and either in In aggressively competition, our the is, So implications think – yes. calls, we’ve

cash need in we, so compete. of and and markets very capitalized all have access basis short are course, positive do strong flow term to not to order any capital And in well since the that’s to us,

might in with the I example that businesses participants, into and us. the market’s legacy think which bricks market for retail’s of market, patterns consumer are just Dot that of increasing leading – who changing retailer, to finance those having to So behaviors seeking and are company sense addition they solution mortar maybe sorts changing, they’re less the some a that in relationships. integrate businesses opportunity where Green then are their financial embedded for all the now and there classic potential the capitalized well And point providers like be a market was buyers distribution the services this, a

dynamics so capital the market beyond well. markets some there’s changing just as And

sense. Good. Got That for Thank questions. my taking helpful makes Very it. guys. you

Thank you, Michael.

Thank you.

Please go comes question from ahead. next JMP. Your Matthew Hurwit from

This is from Jefferies. Matt

ARPU can little quarter-on-quarter. just there. First is question dynamics the a on consumer decreased curious Thanks. further I’m just you if elaborate just services

earlier we the We for had program. roll-off of QX We a full it our mentioned – a mentioned Yes. call. guide in as retail year part of our

impact on the segment. Consumer an that So ARPU has to the some degree in Services

Perfect. And then…

lack we’ll that. So then

Right.

then any And would helpful. Thanks. on be Okay. an it exciting there? it’s some EWA, know like could product, and that there’s I progress Thanks. just share sounds you momentum,

Sure, rate within of very, Matthew. market, this be quarter, U.S. substantial different is product. the EWA. payroll which our for to the we’re integrations about for subtlety portion six small, admittedly in growth this quarter We sales this there more were of much the into EWA provide order The unit. team selling we aggressive to allows excited about business integrated as payroll The into EWA. end packages market We base us us. opportunity spectacular was packages was payroll with whereas our where of in months a importantly, addressable penetration market, very high a for remain extremely very is And do in small ago, the that on market excited an and

going opportunity coming So no a to excited. It’s still change, for be the great over excited the company years. next before,

Thanks. Got it.

You bet.

Thank you.

Blair. Please ahead. William comes Kennedy Your go Cris next question from from

Yes. kind the associated lot you. forward? are embedded of you for changes about done think Green should company a growth of going you’ve behind mean how George, with questions. of the pivoting we in you’re XXXX, when how kind at the opportunities my And about taking I Dot think the those finance, and hopefully, Good of afternoon. Thanks and company

this your it, we’re I level, for a characteristic mean that at so off Well, change ephemeral a has do ephemerable question, hope thank through bit. to some I – going fades you Cris. it

base be with always change. will We

We to other, are mentioned so I’ve can dynamic we get provide vertically capabilities world a technological change. integrated immediate pattern to But operating our change in with past, that the integrated most set business partners. focus, our each of as a and in with solutions is

every We’re well down still have into But that work. go work remarks, as as We’ll day right to and is in try We mentioned our to to focused really path. mind, on keep inwardly we that change come continue motivate our intellectual and I capability. prepared XXXX. that very in now, a team, work shift. much of about we’re consumes lot looking That technology to

from shift opportunities. that going to market to – focusing work of that externally go on And is on doing sort our

But of we some time been on managing lot some of opportunities. that it these doing are today, changes a of when from the course. inherently spend we’ve takes We of just away

us. to going shift for that’s a big be So

our in in it in in see our communication, our messaging, our You’ll pipeline, announcements.

in XXXX. So focus that’s to going be our

excited shifting back to We’re to this half year. in the very, that very be of focus here

metric what can’t any you growth? does finance objectively this for tremendously embedded point, I vast. to market it the Now guide particular is mean but at

unique. extremely We’re

offerings capabilities. differentiated and We highly points have of product

this we’re all tax our behind extremely other way, those these some optimistic well. but a those and we in as businesses all we’ve of businesses, as think finance, difficult don’t typically – And year has shortly. us processing think PayCard, embedded today, our we discussion been our EWA, we’re TPG going by rollouts And extremely all that about of the of growth are are to year businesses as be those had businesses opportunities,

Our be trading portfolio us. behind to going is

growth future. opportunity about we excited we’re lot dramatically have of change to our a the think So We rate.

there. bit and a you rambled ask let I’ll So on follow-up. I’ve your stop

– objectives kind I out be long-term there lay guess be you’re the of going where – to and what going is for Yes. time company? will growth your a to

Yes, absolutely.

some XXXX, qualitative should So third call, first of to term, we our we additional these our about do do our we then our all, hope quarter – results, when in more we’ll I make QX like hope qualitative giving reporting directionally cadence obviously, topics. the say, a is the business And to short when next what comments more we able might call guidance within period. wrap a at multi-year early be XXXX. about on least we look to guidance about basis And think quantitative in that over be

Right, thank you.

You’re welcome.

Please Your Sutton Thank next from ahead. comes question Craig go Instructions] you. [Operator Hallum. George from

stretch you. you us just the you’re tech final Thank Can the what mentioned tell is conversion. final in of in George, stretch? exactly involved you the

We have two conversions. remaining

I we seven. We’ve seven. had So mentioned, done

two next done have We be remaining, in scheduled of weeks. the couple to

say And necessarily conversion how know should weeks, don’t completed, you be so I next couple a when of would quickly take.

team Well, late an watch the [indiscernible] actually conversion stays the through gets under XX-hour It that at as has to execute conversions. these managed night. evening,

effectively. all And the in evening. – the conversion So – we in the process is to to not the course, it’s the work up involved happens platforms manage doing then and you of late can leading the conversion, in preparing

majority conversions associated complete. all So work the with of the the of has already nine vast been each doing

don’t and develop technology, remaining. make to would too – deploy new want But enhance I clarify, mean, of roadmap. there’s nevertheless, I I events don’t significant to it. But plan to will we is a this want two I to capabilities, that make episode. much as we continue our George, product

So we’re they involved technology, what’s going – in we’re to conversions the but be have that’s a continue to with we’re keep going technology remain. company, investments to as

what of Jess, a brands conversion you. to sunsetted. brands and Can you sunsetted the through had make Got you kind walk ran through into you you And you. real that just able that the Thank were quick you GOXbank?

which believe, called XXXX. sunset Yes. was brands I that RushCard, in one XXXX, We was and – had which in I that would Green acquired the two back we program a back is acquired primary Dot then say AccountNow,

think product So migrate. – new you both of to those is not direct-to-consumer there’s you’re we’ve try convert us, like to businesses. this majority a And unique to existing vast purely get GOXbank – a customers when – accounts to the not going I generally to not

rule the success thumb success AccountNow I’d between we of had convert. to somewhere So less is with XX% with and XX% to generally more but say Rush, going is

you. Got

guys. Okay. Thanks,

Thank George. you,

Thank you.

Truist Joel comes next Riechers Please Your go from Securities. question ahead. from

is if this some need GOXbank guys, Hi by regarding think info going followed to just additional there tech you or or Joel kind could investment great. scale wondering, provide was cadence if by addressed and I to bring that I the that’s be conversion be that’s period the color for of you you just not could provide the Andrew. to and be ramp, then whether marketing a to mean, just would to the fully some of product broad of if going

the Joel, answer I’ll hope start. the cut obtuse I I’m the was I first but question is we’ve cadence think And of it, we I understood I in a in spent on GOXbank? marketing. being the of million I of not to Joel. marketing mentioned tried your question. part if year on what million the – past, direct-to-consumer I Sure, the as spend the somewhere neighborhood hope to $XX kind your of $XX

And we specifically product our we mean that, GOXbank. for specific marketing direct-to-consumer what very do of distribution targeted by

type the mail, take form work, cetera. et could search optimization that TV direct-to-consumer spots, of So engine,

more refunds the people bit cadence loaded from type. season tax front because can this to in the when and they’re that receptive are So offers the be a IRS, of the during receiving put in year

of funded some expect material of investment, towards off So question we general from your we as expect rule. accounts. And it changes I general material whether taper effectiveness, and and we on that tends second that a increase load any to I based front understood investment our rule. target the wouldn’t cost tend investment, QX to per cost that any in And part if QX

up if up our point to that in are we And that marketing, per unruly go And can distribution funded the certain deem points to know in price investment particular drive channel. so that at that in cost our sub direct-to-consumer we that unacceptable. we a causes

So generally, well in very We the growing Certainly, direct-to-consumer our GOXbank our marketing expect per to don’t very very your we’re cost question second part is a change. with answer the of the And happy GOXbank. in in nicely, accomplishments. as any short-term is dramatic funded not product. no. doing

near-term. at she expect goes. And so least be the steady going we’re as I in to

helpful. super renegotiations? any margin, revenue that of in over that’s do just addressed EBIT through It’s drag long-term or guys could then you will time you. be the contract Thank something through cause BaaS pass And think on terms just Great. restructuring,

I what say any will to to It’s think ultimate it’ll out renegotiation be. in the the drag. least at be or economics a near-term, hard shake what to continue

what it’s some margin at have long-term, to but So say hard it’ll in compression. it’ll the look to near-term, like continue least

you. Thank

Thank you.

This I for to the remarks. for Gresham turn to concludes over Mr. now like our any back conference question-and-answer would session closing today.

operator. Thank you,

extraordinarily heartfelt Let better I we our team the to the today. gratitude we’ve members and reference to hard all We’ve to to the closing say me my technology to work lives in teams serve, we make just sincerity, serve. dedicated with who had for partners made extend so want the consumers conversion

company to Green you of we to hard ride the want really investors on the much. this Dot and direction. POS I next Ceridian you in this Thank for all along work as you and coming look for organization. thank for we thank pleased And Appreciate of across with and turn course just to their your interest more us partnerships today, them partners talking and with couldn’t to forward it so be Bye-bye. our with right our time. in and And sacrifices our other

Thank attending The conference has now concluded. presentation. for today’s you

may You now disconnect.