Green Dot (GDOT), a prepaid financial services company providing convenient money management solutions, is expected to price its IPO this week.
Business Overview (from prospectus)
Green Dot is a leading prepaid financial services company providing simple, low-cost and convenient money management solutions to a broad base of U.S. consumers. We believe that we are the leading provider of general purpose reloadable prepaid debit cards in the United States and that our Green Dot Network is the leading prepaid reload network in the United States. We sell our cards and offer our reload services nationwide at approximately 50,000 retail store locations, which provide consumers convenient access to our products and services. Our technology platform, Green PlaNET, provides essential functionality, including point-of-sale connectivity and interoperability with Visa, MasterCard and other payment or funds transfer networks, and compliance and other capabilities to our Green Dot Network, enabling real-time transactions in a secure environment. The combination of our innovative products, broad retail distribution and proprietary technology creates powerful network effects, which we believe enhance the value we deliver to our customers, retail distributors and other participants in our network.
Offering: 4.2 million shares at $32-$35 per share. All the shares are sold by selling stockholders, proceeds of which will not be received by the company.
Revenues totaled $92.8 million in the three months ended March 31, 2010, an increase of $32.1 million, from the comparable period in 2009...Sales and marketing expenses were $26.0 million in the three months ended March 31, 2010, an increase of $6.0 million, or 30%, from the comparable period in 2009...Total operating expenses were $68.7 million in the three months ended March 31, 2010, an increase of $26.4 million, from the comparable period in 2009...Net income were $12.8 million in the three months ended March 31, 2010, an increase of $2.1 million, from the comparable period in 2009...
We compete against the full spectrum of providers of GPR cards. We compete with traditional providers of financial services, such as banks that offer demand deposit accounts and card issuers that offer credit cards, private label retail cards and gift cards. Many of these institutions are substantially larger and have greater resources, larger and more diversified customer bases and greater brand recognition than we do. Many of these companies can also leverage their extensive customer bases and adopt aggressive pricing policies to gain market share. Our primary competitors in the prepaid card issuance and program management market are traditional credit, debit and prepaid card account issuers and prepaid card program managers like First Data, Netspend, AccountNow, PreCash, Rush Card, Western Union (WU) and MoneyGram (MGI). Our Green-Dot branded cards also compete with our co-branded GPR cards, such as the Walmart MoneyCard (WMT).
- Company website
- Bloomberg: Green Dot IPO Means 801% Return for Wal-Mart, Sequoia
- Reuters: Green Dot increases IPO size by 8 percent
- SeekingAlpha: Green Dot (GDOT) IPO sch for July 22. Competitor NetSpend filed July 15