Prepaid card issuer Green Dot Corp.'s third-quarter revenue rose 3% from a year earlier, but higher expenses made its profits fall 36%.
The Pasadena, Calif., company also announced that it will add six new prepaid cards to its Walmart MoneyCard line of products in an effort to appeal to more specific segments of the consumer market.
Green Dot raised its financial outlook for the rest of 2013, saying that its results in the third quarter beat the companys internal forecast.
We feel very good about the future prospects for our company and believe we are well-positioned to return to double digit revenue growth as we look towards 2014," Steve Streit, the firms chief executive officer, said in a news release.
Using generally accepted accounting principles, Green Dot reported $136.5 million in third-quarter revenue, up from $132.8 million a year earlier. Expenses rose 9%, and net income was $6.1 million, down from $9.6 million a year earlier.
Green Dot also reports its earnings on a non-GAAP basis, and the firm raised its non-GAAP estimate for 2013 revenue from $565 million-$575 million to $575 million-$580 million.
The company raised the bottom of the range of its full-year estimate for non-GAAP earnings per share from $1.05 to $1.10.
Green Dot is planning to expand a portfolio of Walmart MoneyCards that currently includes three products. The current cards cost between $3 to $6, and each of the six new cards will cost either $4.95 or $5.
One of the cards will feature Nascar drivers, including Tony Stewart and Danica Patrick. Another card will allow users to choose an NFL team to be featured on the card.