Green Dot Corp (NYSE:GDOT)
Q3 2020 Earnings Call
Nov 4, 2020, 5:00 p.m. ET
- Prepared Remarks
- Questions and Answers
- Call Participants
Good afternoon, and welcome to the Green Dot Third Quarter 2020 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Allison Lubert, Vice President of Communications. Please go ahead.
Alison Cahill Lubert — Vice President Corporate Communications
Thank you, and good afternoon, everyone. Today, we are discussing Green Dot’s third quarter 2020 financial and operating results. Following remarks, we’ll open the call for questions. Our most recent earnings release that accompanies this call and webcast can be found at ir.greendot.com. As a reminder, our comments may include forward-looking statements and expectations regarding future results and performance. Please refer to the cautionary language in the earnings release and in Green Dot’s filings with the Securities and Exchange Commission, including our most recent Form 10-K and 10-Q for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements.
During the call, we’ll make reference to our financial measures that do not conform with generally accepted accounting principles. For the sake of forward-looking statements. During the call, we’ll make reference to our financial measures that do not conform with generally accepted accounting principles for the sake of clarity, presented by other companies. Quantitative reconciliation of our non-GAAP financial information to the directly comparable GAAP financial information appears in today’s press release. The content of this call is property of Green Dot Corporation and is subject to copyright protection.
Now I’d like to turn the call over to Dan.
Dan Henry — Director, Chief Executive Officer, and President
Thank you, Ali. Welcome, everyone, to Green Dot’s Q3 2020 Earnings Call. It’s been a busy and productive few months since we last gathered. We are pleased to report a better-than-expected third quarter, which we attribute to a number of factors, including our continued work to drive efficiencies and lower cost and increased demand for our products across our consumer, retail and B2B offerings. We remain focused on unlocking new opportunities and capitalizing on the accelerated shift from cash to digital banking and payments which was further eliminated by the pandemic and other dynamics taking place in the marketplace. As we end, we are already seeing benefits from our work-from-anywhere initiative from both a cost savings and talent recruitment perspective. In a few minutes, I’ll pass it over to Jess to walk you through the details of our financial results, but I’d like to start by sharing a few highlights and my perspective on what contributed to a solid third quarter. I’m going to focus on three key areas of progress to stem back to the objectives I laid out earlier this year.
These will include improving our financial performance and execution, refocusing and enhancing our bass strategy and launching our new and lasting challenger bank initiative. While Jeff will cover the financial performance in detail, let me provide you with my take on the results for the quarter. Non-GAAP revenue increased 22% compared with the third quarter of the prior year. This higher revenue was driven by a combination of new and existing customers using Green Dot products to electronically receive your income, elevated deposit balances from stimulus funds received in Q2, growth in our BaaS partner fees and accelerated demand for digital banking and payments products. We also started to see recovery in areas of our business that were negatively…