Good day, and welcome to the Green Dot First Quarter 2019 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I’d now like to turn the conference over to Dara Dierks, of Investor Relations. Please go ahead.

Thank you, and good afternoon, everyone. On today’s call, we’ll discuss Green Dot’s first quarter 2019 performance and thoughts about the remainder of the year. Following those remarks, we’ll open the call for questions. For those of you who haven’t yet accessed our earnings release that accompanies this call and webcast that can be found at ir.greendot.com. As a reminder, our comments include forward-looking statements, among other things, our 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 will make reference to our financial measures that do not conform to generally accepted accounting principles. For the sake of clarity, unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis. Information may be calculated differently than similar non-GAAP data presented by other companies. Quantitative reconciliations of our non-GAAP financial information to the directly comparable GAAP financial information appear in today’s press release. The content of this call is the property of the Green Dot Corporation and is subject to copyright protection. Now, I’d like to turn the call over to Steve.

Thank you, Dara and welcome everyone to the Green Dot Corporation Q1 2019 earnings call. We have an unusually big call for you today, where we’ll start with the traditional review of our historically biggest quarter of the year and a quarter where BaaS took center stage as the company’s most significant growth engine. I’ll also update you on all of our progress in executing against our exciting year challenging 2019 Six Step Plan, including the announcement of a big move we’re making to more surely fulfill our long-term destiny of hands down leadership and the banking as a service platform space, and as a provider of the banking industry’s coolest and most mass appeal bank accounts, designed to delight the 25-year-old and all of us. Then we’ll finish up with Mark’s review of the quarter, including his commentary on our revised financial outlook for the remainder of the year. So let’s get into the numbers. Green Dot’s products and platform model generated Q1 consolidated non-GAAP total operating revenues of $326 million, a 6% year-over-year increase. We note that this growth is a 100% organic and grows over a very large Q1 comp from last year that benefited from the de novo launch of our TurboTax BaaS program, young and rapidly growing Apple Pay cash and Uber Rewards Card programs and two months of the UniRush acquisition, that has not yet fully lapped the year. Adjusted EBITDA for the quarter exceeded our expectations, delivering $119 million on a consolidated basis, representing a year-over-year growth rate of 9%. The leverage in our operating model was again visible as margins expanded by nearly 100 basis points on a year-over-year basis. Consolidated non-GAAP EPS for the quarter was $1.51 representing a year-over-year growth rate of 8%, despite having higher D&A and a slightly…

Thanks, Steve. We are pleased with our results this quarter, and as Steve articulated in his section of the call, we are even more pleased with what we believe to be the tremendous opportunities in the second half of this year to secure material incremental growth rates in both our product and platform business lines as we exit 2019 and enter 2020. Green Dot’s annual cash flow from operations is roughly equal to its annual adjusted EBITDA results. And absent any incremental adjustments discussed on today’s call, we would have expected to have well over $300 million in unencumbered cash on our balance sheet at year-end, plus we generally hold little-to-no debt and are debt-free currently. We see our liquidity management philosophy as more than just a prudent way to run our business. We also see it as a competitive weapon, because when we’re fortunate enough to be presented with an opportunity to accretively invest, we can access our large cash reserves and take advantage of those opportunities quickly. As Steve covered in his prepared remarks, we believe we have two such opportunities before us right now. One being the opportunity to take advantage of the potential strength and broad appeal of our new products referenced in step one of our Six Step Plan to materially expand our TAM and then issue a large number of high-value accounts into that expanded TAM in the second half of 2019, so that they start generating significant revenue in 2020. The other opportunity is to advance development of our BaaS platform initiatives referenced in steps three and four of our Six Step Plan. In order to take advantage of the growing demand and growing success of our BaaS platform business line, inclusive of expanding opportunities with existing partners and new programs from new…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] Our first question today will come from Steven Kwok of KBW. Please go ahead.

Hi, Steven.

Hi, thanks for taking my questions. First question I had, it was just around the $60 million of investments, why now and then also you mentioned about the payback, how over what time period will that payback be. And then lastly, also you guys kept the revenue guidance unchanged, but is there any assumed revenues from the $60 million investment? Thanks.

Yes. So, let me divide those up. So why now, I think is the first question. And this is going to sound cliched, but if not now when and if not us who, if you look at the products that we’ve invented on BaaS for other companies and how other technology companies have used our increasingly powerful APIs, there’s some cool stuff out there, and it’s raised the bar we think for the entire banking industry and of course, for Green Dot, because you can’t unring the bell, you can’t unlearn what you’ve learned. So, you have our own product designers, who do not work with our vast clientele, their separate people, but we all consume the APIs in the BaaS platform. So the question is, hey, if that company can do that, why can’t you do this, why can’t we do that, how come we can’t do that. So you have this renaissance of excitement about what can be done with our technology and then the technology is constantly improving, because our clients force us to. So, there is an opportunity we think to build these new products, especially the Gen Z products that we spoke about in this call, but especially on last call, during the guidance call, because we think there’s an unserved audience there are people, who simply don’t relate to bank accounts and if the actual end result of this – I’ll call it a banking app for the purposes of this call, comes out as good as the wire frames and the creative iterations we’re doing, it’s going to be very powerful and there’s never a bad time to roll out a great new product concept to set up Green Dot for another decade of success and so it’s time to do that. So,…

Sure, it look just how long is the payback.

Yes. So lifetime revenue for our typical accounts depending on what they are in direct deposit go for two to three years, call it 2.5 years, some less depending on the brand, and the lifetime revenue for non-direct deposit happens within the year, call it eight, nine months. So, it just depends. But the cherry of the revenue, if you will, is that month all six to 18, because are you using it more and more, and more, the acquisition costs are along in the rearview mirror. and so you’re throwing off very high margin increasing revenue as cardholders use our products more and more. So what that means is that, if this goes as planned is that, yes, we are penalizing 2019 is no around that, but we’re advantaging 2020 to 2021 and part of 2022, and the way that we just couldn’t otherwise do.

Okay. Got it.

And what was your third question?

Yes. The last one was just around your revenue guidance is unchanged, but from these initiatives that you’re running are there any incremental benefits that are helping offset anything?

Yes. The answer is, we think so, but it wasn’t worth the effort and changing guidance on top-line. Here’s why, some of these new accounts will sell, let’s say in June or something like that, and they’ll have six months of revenue, these will sell in December and they’ll have three weeks of revenue, and then you have to figure a half-life of 90 days, called the half life of a June sale and a December sale would be a 90-day half-life. But that is low-margin revenue, because you just get in the cards issued, and it just seemed like we’re better off and more prudent just to let it be if it turns out that it’s a tailwind, well that’s great. And then of course, you have the headwind that we’re not certainly sure about how plays out in Q1, it didn’t play out at all, but it might, in Q2, we’re thinking it might, we’ll see, and that is that these lower number of legacy actives, and is about a couple hundred thousand lower of them, which is small relative to the size of the company, but revenue is revenue. And a lot of these guys are very small revenue customers $15, $18, they won it on done customers, who come in pay a bill, take the rest of the money often at ATM and that’s the end of them. And so it’s not a lot of revenue, but even if it’s $3 million or $4 million it’s money, right. So, we figured, with the negatives of the lower activity there until we reversed course in the second half, offset by the positives of these accounts rolling out, we figured, it was about break-even and it wasn’t worth the effort of changing top line guidance, but we’ll see how it goes.

Great. Thanks for taking my questions.

Yes. You bet. Thank you. :

The next question will come from Andrew Schmidt of Citi. Please go ahead.

Hey guys. Thank you for taking my questions. First question just drilling down the incremental $60 million investment. Similar to the last question, in three months – I guess, what has transpired in three months that sort of forced the decision to invest the incremental EBITDA. Just because is there something from a demand perspective? You’ve seen this stepped up the last three months? It just seems like the pipeline you could have seen it coming. I think it was in February, but you did have comments, the pipeline growth was a little bit slower. Just in general, curious why decision now versus say, the end of last year?

Yes. So, different answers depending on the business line. In the case of BaaS, literally, the demand over the last 60 days has exploded, both with, I mean – look, there are several deals we could announce today just because we didn’t get the contract signed in time. There is one we announced as an LOI only because I know the guy really well and know he factored some you know what that is Scratchpay is run by John Keatley, who for 10 years was our CFO, I don’t know if you remember John, but – and he has this wonderful start-up that’s a few years old is kicking, but with it. But we announced a lot – five or six deals including some very large ones like well front. And then on top of that every one of our current BaaS product is expanding in ways that we had not at all forecast. And with those expansions happen, they tend to have them fast, goes something like this. Hey, Green Dot account Rep or depending on who they are, they may text me. And say, hey Steve, can you call me, I’ve got a problem. We call the client back. These are all big clients. Yes, what’s – how can we help. We have this initiative, we have that initiative, and we very quickly need to do this, that, that and this and we’ve got a jump account sales by 20% and my boss needs us to do this segment and then we’re doing this new segment, and I hate to ask we need it in 30 days. That’s turned into a fairly common conversation with all of our large partners and we’re never going to say no to partner would rather die than say to partner, assuming we…

That’s really helpful. And that kind of, I think we’re going I was going to ask you, what’s the breakdown of maybe fast program ramps versus marketing, but it seems like that’s where you’re going to go now?

Right. Yes, the answer is it’s mostly marketing and the reason is because lot of expenses on BaaS will be capitalized anyhow. So, even if we spend in cash $20 million or $25 million it wouldn’t hit the income statement that way. So the biggest part of the expense to income statement, impact would be the marketing just by the nature of how the accounting works. So if for no other reason, on the marketing side, you have a strategy to make, and that is, do you want to dribs and drabs yourself to success which you can’t do. It’s sort of like if it takes 100 gallons of water to keep your lawn green, that doesn’t mean that you can take 100 gallons in 1 gallon for 100 years. The good along simply be that all the time. So you can’t really driven grab yourself to expanding a TAM, EDR committed to doing it or you’re not. So the first conversation is do we have the guts to commit to ourselves and our investors and we know some of you will not like it make no mistake, we’re not blind to that fact. And for those of you buy is a value stock, you won’t like and for those we buy in a growth stock, you’re probably going to be thrilled with it. But buys for the growth in all the profit and cash flow comes along for free I guess. But it is a good slogan. So, but the answer is no, we’re not going to drib and drab it, we’re going to expand the TAM and best we know how it may or may not work, there’s always risk as I pointed out. But we’re going to do that, we’re going to go forward, we’re going to…

Understood. That’s helpful. Thank you. And then just a quick question on the current year revenue outlook, with the second quarter revenue growth coming down, it puts more emphasis on growth in the back half. I guess could you just talk about comfort in hitting the full year revenue outlook? And maybe just some factors that sort of drive the back half pickup? And then I guess, you know, in that, can you talk about the risks that sort of lower non-direct deposit actives – in that outlook.

Right. So if we thought we couldn’t hit or wouldn’t hit, we would have guided down revenue. So what we often do is leave revenue the same. We’re not going to raise it, even though we think we’re over the course of those six months, issue more incremental cards, we’re certain of it, but we’re not going to raise revenue there, because it’s why – it just creates incremental risk and doesn’t help anybody, nobody’s going to buy the stock because of that. So we’re not going to do that, that’s risky. And at the same time, it would be imprudent to lower revenue, because we don’t see any recent low revenue, especially given that we have incremental revenue. So if you were to sort of have to weigh the risk, here is the risk that we talked about around the guidance table. And that is, do we think the headwinds of a $3 million, whatever turns out to be per quarter, on lower non-deck direct deposit legacy actives, so we think the risk of that headwind is more severe or then what we call the negative impact of that headwind is more severe than the positive tailwind potential of issuing new accounts. And it’s kind of a toss up, we don’t know. And the goal of issuing and part these new accounts in the marketing that goes along with it, is just stopped the slide of these accounts. By the way, I want to be clear that we’re not going to change your marketing to attract more low value customers that’s not the game we’re trying to play. It’s a relative value, we tried to give investors a lot more incremental information about our active cards, in this call, because of many have asked and hopefully found that helpful…

All right. Fair enough. Thank you, guys.

You bet. :

The next question will come from Bob Napoli of William Blair. Please go ahead.

Thank you and good afternoon.

Hi, Bob.

Just to follow up on the – on half of this, obviously, the $60 million, and what it gets. So I mean is this, so the $60 million as I understand it is not related to BaaS. You have all these BaaS customers coming on is more BaaS expense, which will be capitalized. And the $60 million related to new products, and other parts of your business.

Well, sort of. Not quite. I don’t want you... Let me sort of correct that. What I said was that the majority of the investment would be on marketing because the cash investment while sizable much of that, but not all of it gets capitalized, but things like software licenses, and call center seeds, and other things you need to build out past the operational aspects of it. What’s that?

Facility.

That was all that all that gets expensed, but to the extent that part of that money is going for the advancing of development and putting more developers on the job, because we the plan that does get CapEx, but it would be wrong to say that, none of this is going to – a significant portion is going to BaaS to speed up those client on boarding, and finish those platforms, but the majority of your point is going to the marketing piece on the product side of our business.

So now, let’s say we’re ramping up marketing, and the – and you see a really high IRR on that marketing. What is – so what’s, how should we think longer term. So this isn’t just like a one-time shot. We’re going to market like and what is that growth. What’s kind of growth should we expect in 2020. I think he break right now, the people are looking get a, like a 9% or high single digit organic growth rate 9% to 10%, and then – with the margin coming down should we expect now higher revenue growth in 2020? Are we talking a mid-teens number? And then the margins, bringing the margins down this year. Then should we expect a kind of gradual – you’re going to continue marketing next year if you’re getting IRR returns and should we expect margins to start to improve off of this year’s levels next year, but with higher growth to support?

So, yes, let me help explain the way that it works. So when you have a launch campaign, what I call launch economics, they are materially different than ongoing economics. There is an inertia. If you think about the amount of gas it takes to accelerate a car from zero to 60, it is many times more gas to do that than it does to keep the car at 60. Or if you know anyone who knows planes, you’ll use up a higher percentage of gas in the take off than you will for three hours of flight time at altitude. So when you’re doing a launch, you have to introduce your product to a lot of people, you have a lot of sources, some channels and marketing will be more efficient than others in terms of how many people you get and I don’t care if anyone says you’re not going to get it right every time. So you look back and say okay, well, that channel was didn’t work as well as we thought. This channel really do better than we thought. But you’ll have sort of a blended cost of acquisition that you try to hit. And we think we budgeted amply for that by taking our real – remember we do this every month that we operate five direct to consumer website. So we’re not foreigners to this concept. So we took our actual real cost per acquisition that we have in real life today. And we made it way less efficient for the assumption of this model because you want to have room for error, and because when you’re doing the launch economics, you have to have a lot more gas meaning money to build that awareness. Once you’ve built that awareness, you can spend…

Yes. I think investors want to see, Steve, they want to understand that revenue growth is going to accelerate, because of this investment. Is that what you expect or?

Absolutely the plan. Yeah, but I’m always nervous to say, it’s not going to be nine it’s going to be X. It’s depend on a lot of things in the year, but clearly, we’re looking to achieve the step growth, function and if you think about entering the year with a million active accounts of which may be 5000 or 6000 of direct deposit and Mark gave you the sense of how the lifetime revenue plays out $2 million to $3 million. The majority of that revenue, or more than half is in the first year. So, we would think that assuming the rest of the business holds up as it has been, then that would be incremental growth on a year-over-year basis. But I’m very hesitant as any CEO would be to be here in May and to give you an exact growth percentage for 2020. So, we can say that if we are successful at generating let’s say half of 200 is it 100. If you’re successful on generating that, that would be another 7% 8% 9% on its own. And then you have whatever the business does. But there is no way for us to guide that and give an exact number until we look at the other business lines we have other initiatives that are more pedestrian the things we do every day and the other lines of business. So, and you have the best up, which we haven’t even the accounts that are talked about, because until those rollout we never, quite sure I think they’ll be.

Just to recap some of Steve’s point, we’re not resetting our expense base to a higher permanent expense base. This is a very large one time sort of launch cost and what’s related to that is and the reason for it is, we have an opportunity we believe to launch some very exciting products for a much broader TAM than our traditional TAM. If we were marketing to our traditional customers, our traditional products, we wouldn’t be spending this money, we’ve continue to just to do business as usual. And in terms of next year our expectation is we will exit this year at a stronger exit run rate than we otherwise would have been exiting without the spend. So, I think those are sort of the three highlights from the comments.

Great. Thank you. Appreciate it. :

Certainly, intended to be helpful the growth rates not and help the growth rates in.

And but, you can understand why wouldn’t want to give a precise number.

Great. Thank you.

Ladies and gentlemen, this will conclude our question and answer session. At this moment, like to turn back.

Well, you’re saying because the hours up operators that’s why you are saying that? What do we do this, we have five more analysts and it’s an important call it unusual call. I’m fine to take the questions Mark, would you want to do?

I’ll judge the questions based on how they come.

Fine. Operator, if it’s okay with you, let’s keep going. Okay. And then – we’ll Ramsey, and we’ll keep going.

Absolutely, let’s continue. And our next question will come from Ramsey El-Assal with Barclays. Please go ahead.

Hi, guys, and thanks for taking my question. So, are you – is there any connection with – can you kind of characterize any connection between the $60 million investment and the Walmart contract. Is that one of the – one of the sources of catalysts for you guys actually making the investment?

No, but you know what’s funny is I read a pretty powerful paragraph about Walmart, and I think these were so many new deals on the call that I’ve just got ignored. But the answer is, no Walmart has nothing to do with it, but –

I was going to ask you, I was going to follow up with that. So, basically, candidly your turn on the call today was quite optimistic or confident around Walmart not that you’re disclosing anything or can’t disclose anything. But what was the – what kind of got you to sound an incrementally more confident. You mentioned some new projects or new partnerships. I’m just curious about sort of what’s changed there?

Okay, let me think about what I – so I think the best thing I can say about that Ramsey, is I’m always very consistent intentionally so with my commentary about any contract renewal, in particular Walmart. And so anything we say is always coordinated with our partners. So, I probably just say that, and read the transcript, but I never unintentional with my prepared remarks. So we do feel incrementally more confident, but I would let my commentary speak for themselves.

Fine. Okay. I also wanted to ask you about tax related volumes. Your competitor NetSpend also had some soft tax performance in the first quarter, I think it was a broad investor expectation that as – as of prior years, you get that sort of shift back into the second quarter. It wasn’t really lost, it was just kind of moving around. What’s caused the tax impact to actually be, I guess, on a net basis sort of smaller this year, than you anticipated, is this the new normal is the result of tax reform that batter?

Yes. I don’t know, it was pretty wacky, and Brian Schmidt who runs our tax division is such a greater expert on it than I that I wish you were here to answer. But the answer is, we had a decent Q1. We were up 7% in tax refunds process, but that doesn’t always translate into exact dollar for dollar revenue. We have an advantage that NetSpend, they’re good companies. So, I don’t mean that in a negative way. But we have an advantage in what they and others don’t and that is that we’re partnered with all the big online tax prepares into it with TurboTax and TaxHawk and [indiscernible] guys. Tax layer and there all great partners and the online channel, the internet channel is growing leaps and bounds every year over the in-person, pro channel or assisted tax channel is just a macro of how the world works. And so we are fortunate that the losses at the other companies who by definition have all the in-person tax places because we have all the other contracts, that means that they’re feeling the contraction of the in-person assisted channel on a year-over-year basis. We’re not seeing the contraction because we’re partnered with all these awesome new age digital players, but the revenue per refund processed is less because the prices charged by the online players led by Intuit’s TurboTax is fractional what are charged and sometimes the pro-channel play location. So it’s a trade-off of volume and price and what our job is to have a mix where we are very proud to serve our pro channel. Pro channel, I means the in person about are not to change. The chain would be Jackson Hewitt and H&R Block. Those are called chain that informed that skipped my brain right now, I’m talking about dollars, but we have a change are called franchise, thank you, the franchise market will be just – 10 points with the card. Okay. And then you have the pro-channel, which are in effect the small businesses, the Mom & Pops that operate in strip shopping centers and generally in ethnic communities that’s still do pretty good business. So we compete very aggressively in the pro-channel and we always will but the macro is clearly towards the online space. And that’s why you see other guys down and us up in volume, but I think that’s a headwind for margin for everybody in the industry. Then on top of that.

Go ahead. I’m sorry.

Then on top of that you have the wackiness with just taxes and we’re it was delayed, but then it came out bigger, but than people got less money, everybody now has these tax loans including Green Dot, they were not existent three or four years ago, now everybody has them, what that means is that you’re having bigger Q1’s because everybody is getting the tax refunds upfront but then when the real tax refund comes in April or May, it just gets absorbed and the bank pays themselves back. So it’s a different cash flow, so it may not even be that the tax disbursement rate is any different or delayed. It’s just that it’s more Q1 pronounced because you have these immediate tax loans that to the customer is the same as getting their tax refund. So those all I got my tax refund, what they really mean to say is, I got a loan today for free against my forthcoming tax refund, but they don’t necessarily think about it that way. So I think all these things are part of a changing ecosystem in the tax industry. We’re glad to be a leader, and we always end up on the right side of the fence, through the great leadership of our team at TPG, but there’s a lot of changes going on there, and I don’t think anybody knows exactly how it’s playing out.

Fair enough. Thanks so much.

You bet. Thank you.

Your next question will come from Ashish Sabadra of Deutsche Bank. Please go ahead.

Hi. So Steve, my question was about the active cards, you’ve talked about erosion of one and done customers. Just as you think about the competitive environment, do you think it’s also the competition from the likes of Square and PayPal, those could be increasing as well at the edges and could that be also creating any kind of headwinds for that to conclude, is there any activity to track it? Thanks.

We don’t know – we know that – that the low value or what everyone call it, the short-term customer whether it’s one or done, which is a lot of complimentary phrase I guess but that phrase, that the more – the less committed you are, the more you tend to be attracted to the easier cards, the easier free cards aligned, because the CIP tends to be easier than their own customer rules. They don’t do a lot of ACH as a relative percentage of loads, and they’re not bad products. But if you are someone just again for a quick hit, you have a lot more choices today than you had five years ago, that’s for sure, right. And so I think you have those out there. Those have a lot of good products online that are doing different things and there are some who, it’s a big market out there. Right? So there’s a lot of good competitors out there and then you have others who are online banks, you have all the big banks with their offerings, fin from chase. You have a young startup run by a former Green Dot alumni – young man [indiscernible] he’s not young anymore. I’m old, so you got to be older. Chris Britt who runs Chime, and she have a lot of Green Dot alumni out there doing their thing, and Chime is really a good company too. She do have a lot of more options for these customers who are looking for a different kind of account than what we offer. At the same time, we really did a great job by coming up with cash back rewards at a time when nobody was doing that on debit and still isn’t. And we think that on our new…

That’s helpful. And maybe just a question on the visibility. So, you had given like the second quarter guidance saying there was an expectation and grow better and you have to take it down just in a couple of months and the full-year guidance implies like a 15% to 16% growth in the back half. And I was just wondering is there – and obviously you talked about a lot of new programs that are coming on. I was just wondering, is there any kind of risk to that guidance, because I got reminded of 2015 when was active cards started slowing down that any growth starting to smooth down as well, and that wasn’t as much visibility that first started to happen?

Well, we’ve had a lot of the big growth year since 2015. I mean I think Ashish with respect to you can come up with any sort of take on it. So, I’m not sure of the question is. Is there a risk to our current year guidance? We may at Q1 we pulled that guidance for EBITDA. And I think I’ve tried to do a good job, but I know we have a one-on-one after this we can go more in depth, because I want to get to together for questions. If the question is a risk, I explained or tried to explain best I could that you have the upside positive all the new marketing for new products plus all the new BaaS offset by the negatives of these low value customers where there are fewer this year than last and we’re not quite sure how that mix plays out. So, we feel fairly confident of the bottom line, but the top line wasn’t – there wasn’t enough left or right, good or bad to change our guidance. So, but, it’s early in the year and right now, it could be higher or lower, we’re not sure. So, we’re trying to be as transparent as we can with the puts and takes and hopefully that’s helpful.

Okay. Thanks, Steve.

Yeah, you bet. Next we have I can see. Hi, John Hecht.

The question is John Hecht from Jefferies. Please go ahead.

Yes, thanks very much guys. I guess a little bit of a take on the last question, but the guidance would imply that you have a really good acceleration I guess adoption rates in the second half of the year. I know you’re going after a new – the new TAM to some degree and you’ve got new products, but maybe can you tell us about the channels you – the difference in channels you might be using or the difference in marketing campaigns or what kind of characteristics about those products should result in an improved adoption rates?

Well, I don’t know that we’re actually guiding for approved adoption rates. In fact, we’re assuming a lot less efficient lower cost per acquisition that we have in real life currently because we want to give ourselves a margin of error. But what we have going for us is, we’re spending a whole lot more money. I mean we have to understand relative to Green Dot’s marketing $60 million and a half would be or some portion of that, but the amount that we’re reserving publicly for $60 million for BaaS initiatives and marketing for the product side. So, a lot of money. It’s not a lot of money for other companies and certainly a very small amount of money for growth companies. But relatively Green Dot’s history, it’s a lot of money for marketing in the half year. So what you have going for us is, a lot of marketing that’s concentrated. We think the campaigns will be well coordinated and clever, but we can’t really share a lot about that. And any other products which is no question that they are not a little bit better than today’s products, but way better than today’s products, both in terms of their look and feel, and the value offered to our consumers. So they will certainly stand out from the crowd. Now the question is, is the amount of money we’re going to spend on marketing too much too little? Are the products as good as the research shows? Or if they are – will people care, maybe they are happy with what they have. Well, will we hit our planned cost per acquisition, and do our million plus? Or will our cost per acquisition be less efficient and be less. Those are the things frankly that you take a…

Okay. And then, I guess it unrelated follow-up question, to your point, Steve, you are the main thing last quarter about I guess an uncertain sales cycle, with the best program clearly, you clear to a few years and new partners. It sounds like that the pipeline is still pretty active, maybe can you give us an update on your perspective in the sales cycle, and any near-term outlook for any potential opportunities?

Yes, and I know there is a ton of information in the script, there was a long script. Because there’s so much going on, and we wanted to give our investors a lot to me. I know we got to wrap it up. I’m, what we hear Mark as a sweater in his books you said is out. Okay. We’re talking about. So, that’s pipeline. There’s a lot of information incremental information in the script about that, but he wanted to go back and look at the transcript, but I’ll share some of it with you. The pipeline has been very, very active, more so than we would have thought just 60 or 90 days ago. In fact, it is then we thought 60, 90 days ago. And we think that closing cycles are slightly faster because people now understand what it is, and is a sense at all we want to get our is going on. I think we’re doing a better job selling it, and understanding more with customers and partners may want. And so we feel really good about the pipeline, I mentioned that we have several in the contracting stage that have not yet been announced, but we also announced a slew of new partners today, a lot of them, including some very exciting ones, and productive ones. So we’ve tried to give a lot of flavor, today of all the stuff that we’ve announced. And then we did tease out the fact that we believe there’s others including one very large deal that we’re in the contracting process for, but until those things close, you never know. So, we feel good about both what we’ve announced, and what’s coming that we haven’t yet announced. But these are new business lines. If you look at just…

Okay. So thank you, everybody, for listening. Have a wonderful day. And we’ll see you in Boston at the JP Morgan Conference next week. And Operator thank you for your patience.

Thank you all. The conference has now concluded. Thank you all, and have a great day.