ATLANTA--(BUSINESS WIRE)--Aug 7, 2018--GreenSky, Inc. (“GreenSky” or the “Company”) (NASDAQ: GSKY), a leading financial technology company Powering Commerce at the Point of Sale SM, today announced financial results for its second fiscal quarter ended June 30, 2018.

“GreenSky is off to a great start as a public company as we continue to expand our ecosystem of merchants, consumers and bank partners,” said David Zalik, President and CEO of GreenSky. “Our singular focus on accelerating commerce was evidenced by a 36 percent increase in transaction volume from our growing network of home improvement merchants and elective health care providers. We also reached an important milestone with quarterly revenue and adjusted EBITDA of well over $100 million and $50 million, respectively, for the first time in GreenSky’s history.”

Financial highlights for the second quarter 20181:

Revenue grew 28.3 percent to $105.7 million from $82.4 million in the second quarter of 2017. GAAP Net income was $40.8 million and reflects tax expense on the portion of GreenSky’s earnings attributable to the C-corporation ownership for the 38 days of the second quarter that the Company was a public entity. A prior period comparison is not meaningful. Pro forma Net income was $33.5 million, or $0.18 per diluted share, and represents all of GreenSky’s enterprise earnings for the period, net of tax at an assumed effective tax rate of 22.3 percent. Adjusted EBITDA increased by 28 percent to $52.1 million from $40.8 million in the second quarter of 2017. As a percentage of revenue, Adjusted EBITDA was 49 percent for both periods. As of June 30, 2018, unrestricted cash totaled $236.6 million.


Business update

The Company announced yesterday that it has entered into a comprehensive strategic alliance with American Express (NYSE:AXP) whereby (i) American Express will enable eligible U.S. merchants that accept American Express to access the Company’s digital loan technology platform to drive incremental sales by offering their qualifying customers installment loan options to finance large purchases at the point of sale, (ii) GreenSky and American Express will jointly pilot an American Express funded direct-to-consumer digital installment loan offering to select American Express Card Members initially in the home improvement category located in five U.S. markets, and (iii) GreenSky will obtain access to American Express vPayment, a virtual payments solution used to facilitate purchases via virtual account numbers issued to approved customers.

2018 Financial Guidance

Based on the Company’s performance through the end of the second quarter and current market conditions, GreenSky expects the following for full-year 2018:

Transaction volume to increase between 35 and 41 percent to between $5.1 and $5.3 billion. Revenue to increase between 34 and 37 percent to between $433 and $445 million. Adjusted EBITDA to grow between 20 and 25 percent to a range of $192 and $199 million. Pro forma Net Income in the range of $121 to $125 million, or $0.64 to $0.66 per diluted share, assuming an effective tax rate of 22.3 percent and weighted average shares outstanding of 189.2 million.

We have not reconciled Adjusted EBITDA, Pro forma Net Income and Pro forma Net Income per diluted share to their GAAP equivalents as a result of the uncertainty regarding, and the potential variability of, reconciling items such as the income tax expenses of GreenSky, Inc. and share-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. It is important to note that the actual amount of such reconciling items would have a significant impact if they were included in our Adjusted EBITDA, Pro forma Net Income and Pro forma Net Income per diluted share. However, we have provided a reconciliation of GAAP to non-GAAP historical metrics in tables at the end of this release.

See "Non-GAAP Financial Measures" for important additional information.

Conference call and webcast

As previously announced, the Company’s management will host a conference call to discuss second quarter 2018 results at 8:00 a.m. EDT today. A live webcast of the conference call, together with a slide presentation that includes supplemental financial information and reconciliations of certain non-GAAP measures to their most directly comparable GAAP measures, can be accessed through the company's Investor Relations website at A replay of the webcast will be available within 2 hours of the completion of the call and will be archived at the same location for one year.

About GreenSky, Inc.

GreenSky, Inc. (NASDAQ: GSKY) is a leading technology company Powering Commerce at the Point of Sale SM for a growing ecosystem of merchants, consumers and banks. Our highly scalable, proprietary technology platform enables over 13,000 merchants to offer frictionless promotional payment options to consumers, driving increased sales volume and accelerated cash flow. Banks leverage GreenSky’s technology to provide loans to super-prime and prime consumers nationwide. Since our inception, approximately 1.9 million consumers have financed over $13 billion of commerce using our paperless, real time “apply and buy” technology. GreenSky is headquartered in Atlanta, Georgia. For more information, visit

Forward-Looking Statements

This press release contains forward-looking statements that reflect our current views with respect to, among other things, our operations and financial performance; growth in our ecosystem of merchants, consumers and bank partners; and strategic relationships (including with American Express). You generally can identify these statements by the use of words such as “outlook,” “potential,” “continue,” “may,” “seek,” “approximately,” “predict,” “believe,” “expect,” “plan,” “intend,” “estimate” or “anticipate” and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as “will,” “should,” “would,” “likely” and “could.” These statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those included in the forward-looking statements. These risks and uncertainties include those risks described in our filings with the Securities and Exchange Commission and include, but are not limited to, risks related to our ability to retain existing, and attract new, merchants and bank partners; our future financial performance, including trends in revenue, cost of revenue, gross profit or gross margin, operating expenses, and free cash flow; changes in market interest rates; increases in loan delinquencies; our ability to operate successfully in a highly regulated industry; the effect of management changes; cyberattacks and security vulnerabilities in our products and services; and our ability to compete successfully in highly competitive markets. The forward-looking statements speak only as of the date on which they are made, and, except to the extent required by federal securities laws, we disclaim any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.

Non-GAAP Financial Measures

This press release presents information about the Company’s Pro Forma Net Income and Adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We use Adjusted EBITDA to manage our business, make planning decisions, evaluate our performance and allocate resources. We believe that Adjusted EBITDA provides useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by our management in connection with financial and operational decision-making. We are presenting these non-GAAP measures to assist investors in evaluating our financial performance and because we believe that these measures provide an additional tool for investors to use in comparing our core financial performance over multiple periods with other companies in our industry.

These non-GAAP measures are presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of other GAAP financial measures. The non-GAAP measures GreenSky uses may differ from the non-GAAP measures used by other companies. A reconciliation of each of the foregoing historical non-GAAP financial measures to the most directly comparable historical GAAP financial measure is provided below for each of the fiscal periods indicated.

(tables follow)

This article has been truncated. You can see the rest of this article by visiting