Good afternoon, and welcome to the Green Dot Corporation Fourth Quarter 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Tim Willi, Senior Vice President of Investor Relations and Corporate Development. Please go ahead.
Thank you, and good afternoon, everyone. Today we are discussing Green Dot's fourth quarter 2021 financial and operating results. Following our remarks, we'll open up 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 Form 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 with 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 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 the Green Dot Corporation and is subject to copyright protection. Now I'd like to turn the call over to Dan.
Thank you, Tim. Good afternoon, everyone, and thanks for joining us to discuss our fourth quarter 2021 results. We finished the year with solid performance, with GAAP revenue growth of 14% and GAAP EPS that more than doubled to $0.85. We saw this growth even as we invested in our platform, navigated a variety of industry-wide challenges, and saw the impacts from stimulus begin to recede. George will share more on our financial performance with you shortly. A lot has happened and changed since I joined in early 2020. Though I underestimated and could not have predicted many of the challenges we faced, I am proud of how we adapted and of the progress we've made, and I'm also confident in our plan forward.
As I look at 2021, we made substantial progress to strengthen our organization, which will serve us well in 2022 and beyond. We built out our management team to complement our efforts in 2020. Over the course of 2021, we added new executives to head up BaaS, Customer Care, and Compliance. We hired a new CTO and finished the year by bringing on George Gresham as our new CFO/COO. These positions are all critical to moving the company forward and providing experienced leadership for the organization and our employees. Having the entire team in place for 2022 will be something that we have not had since I joined the company. Under George's leadership, we are strengthening our internal decision-making and prioritization processes, elevating them to a level that has not existed at Green Dot in the past.
This will ensure that initiatives are being prioritized correctly, and they are given the proper resources to ensure optimal outcomes. We also appointed a new Chief Product Officer and effectively streamlined how we prioritize, design, build, and deliver new products both directly and through our partners. We began our technology transformation, which, as George will highlight, will not only provide financial benefits and efficiencies but will also dramatically strengthen our positioning and capabilities as a provider and partner. Finally, and most importantly, our culture and people. Anyone who knows me knows that I am a big believer that people are the heart of a successful company. We have fully embraced work from anywhere and are judiciously hiring quality employees nationwide. 400 talented and experienced folks from more than 40 states have joined Green Dot since my arrival almost 2 years ago.
In that same period we grew revenues by 29% but kept total headcount virtually flat. This focus on increasing talent density will drive efficiency as we become a more engaged, accountable workforce and develop a culture built on trust and responsibility. As we step into 2022, I remain very bullish on the value of the unique and powerful set of assets we have at Green Dot. First, the collection of partners we work with, both in the physical and digital distribution of our products, is unmatched. Our engagement and alignment with these partners and their channels continues to deepen. Take Walmart, for example. Walmart has just begun offering a first-of-its-kind deposit and withdrawal service in their 4,700+ stores nationwide.
Powered by Green Dot, this new service enables customers to quickly and seamlessly access their bank or credit union account without having to visit a branch. This creates meaningful value and furthers financial inclusion for the more than 150 million customers who transact with Walmart each week, especially as more and more bank branches close. Amazon Flex recently announced enhanced rewards on its Amazon Flex card for a limited time in March to help drive spending volume and account growth. Turning to our partnership with Intuit. We've seen exciting growth from the QuickBooks Checking product over the last two years, and their account base has quadrupled since January of 2021, with a third being businesses that have been in operation for less than a year.
These are just a handful of examples of how Green Dot is working with partners to innovate and create products designed to drive growth by bringing seamless and affordable banking to all. After we complete our Tech Transformation, we will be able to build and deliver more products, services, and feature functionality to our partners and distribution channels with greater efficiency and flexibility. Second, we're improving the way our leaders and teams collaborate internally, enabling us to pursue more growth opportunities across channels and partners. For example, our paycard business now works closely with our consumer segment to create paycard solutions for our retail partners. Third, we have an ecosystem that can be monetized and will be more valuable as it grows. Across our channels and partners, we touch millions of consumers as they go about their daily lives. Consider this scenario.
An Uber driver shops at one of our retail partners and pays with a physical card or Apple Pay. That scenario touches our platform in three unique places and presents opportunity to create valuable experiences for the customer, the employer, and the retailer, all within our ecosystem. Now, trying to monetize that ecosystem across numerous platforms and antiquated technology would be cumbersome at best. When we have one technology platform, that path to success and monetization will be much easier. Fourth, we maintain our belief that having our own bank is a valuable differentiator that is under-monetized, but that will change. Ownership of the bank is something that partners have routinely mentioned to me as being very valuable to them.
As we implement the new technology and processing platform at the bank, we will have a truly integrated product development and operating infrastructure, and our value to our partners will only increase. Finally, the Green Dot Network. This vast network of more than 90,000 locations has long provided a convenient cash-in, cash-out ecosystem, which many other digital banks and fintechs use to provide a valuable omni-channel experience to their customers. It's also an important extension of our brand marketing and customer engagement strategy as it places products like GO2bank front and center in the stores our customers shop in regularly. In closing, while the last two years presented challenges and situations more complicated than we estimated, it has also accelerated a seismic shift in consumer behaviors. The opportunity is much larger than I thought when I joined Green Dot.
most importantly, I'm confident that the moves we have made and our tech transformation will position Green Dot to deliver exceptional products and experiences for our customers and partners and strong revenue and EPS growth for our shareholders. With that, I'll hand it over to George.
Thank you, Dan, and good afternoon, everyone. In the fourth quarter, we delivered non-GAAP revenue of $321 million, up 17% year-over-year. As mentioned on our last call, based on our strong performance during the first three quarters of 2021, we made the prudent decision to elevate our investments in strategic areas during the fourth quarter, including our modern banking platform, customer service, and GO2bank. This resulted in Adjusted EBITDA of $34 million, which was relatively consistent with the prior year. Our non-GAAP EPS of $0.27 declined 13% versus the prior year, due primarily to an increase in our non-GAAP effective tax rate. The increase in the rate is largely a timing matter, as our full-year non-GAAP effective tax rate in 2021 is up slightly from 2020.
As it relates to our segment results and key trends, in our Consumer Services segment, we achieved revenue and profit growth despite headwinds to our key metrics. Revenue grew $6.5 million or 4% to $161 million, while segment profit grew $2 million to $54 million, also up 4%. The adoption of profitable features by our customers continues to contribute to an expansion in our revenue per average active, allowing us to maintain our margin during the quarter while investing in our business. Our Gross Dollar Volume and actives both declined 17%, due in part to the expiration of unemployment benefits. As a reminder, in Q4 2020, the federal government provided supplemental unemployment benefits of $600 per week. Those benefits were reduced to $300 per week during 2021 and expired in early September 2021.
In our B2B Services segment, Gross Dollar Volume, purchase volume, and the number of active accounts grew year-over-year by 48%, 30%, and 15% respectively. The increase in these metrics were the result of continued growth in our BaaS programs, both existing and new, and growth in our employer programs. As a result of the strong growth in these metrics, our B2B segment revenue increased by $45 million or 58% to $122 million. As was the case during the first three quarters of 2021, our B2B margin declined versus the prior year due to BaaS partner arrangements that contained a fixed profit.
Nonetheless, B2B Services segment profit increased about $6 million or 42% to $19 million as we expanded margins for our other BaaS programs and in the employer business. In our Money Movement segment, revenue declined year-over-year, primarily due to our decision not to renew a significant low-margin reload partner during Q4 2020, which we've discussed on our prior earnings calls. Overall, our Money Movement segment revenue declined $8 million or 17% and profit declined $1 million or 10%. For the year, we delivered GAAP Revenue, net income, and diluted EPS growth of 14%, 105%, and 102% respectively. Non-GAAP Revenue growth of 16% to $1.4 billion, led by strong growth of 51% in our B2B segment revenue. Consumer Services segment revenue increased 12% during 2021.
Stimulus payments and supplemental unemployment benefits were additive to our results during the first part of 2021. As these programs expired, the benefits to our customers and Green Dot have diminished. For the full year, Adjusted EBITDA increased by 5% to $217 million. Our Adjusted EBITDA margin declined approximately 150 basis points versus the prior year. A few factors contributed to this. First, we are elevating investments in strategic areas to support Green Dot's long-term growth initiatives. Second, the stimulus programs of the first part of the year increased our customer service costs and transaction losses. Finally, BaaS partner arrangements that contained a fixed profit have contributed to the decline in our Adjusted EBITDA margin. Finally, non-GAAP EPS increased 5% to $2.21.
I mentioned the impacts various stimulus programs had on our business during 2021, but it might be helpful to keep in mind that we estimate our customers received approximately $7 billion in the form of stimulus, supplemental tax credits, enhanced unemployment benefits, and other benefits related to the government's response to the pandemic. These income supplements represented gross dollar volume to us, of which about 60% was received in the first quarter and 15% in each of the second and third quarters, with the balance received in the fourth quarter of 2021. We do not expect these amounts to recur in 2022. Turning to our financial position, our business continues to produce strong cash flow, generating $163 million of operating cash flow during 2021.
We ended the year with cash at the holding company of $80 million. Our cash balance, the strength of our cash flow, together with our $100 million revolver available to us, provides us sufficient liquidity to invest in our strategic priorities and selectively return cash to our shareholders, as evidenced by our share buyback announcement today. I would like to now move to discuss our technology initiatives in more detail. Over the last several quarters you have heard us talk about the technology transformation that we have been undertaking and will begin to implement as we move through 2022 and into 2023. This is not a trivial undertaking and it involves an enterprise-wide effort across Green Dot to be successfully completed. These efforts include, 1, the consolidation of processing activities into an In-House Processing capability.
2, the implementation of modern real-time Enterprise Risk Management tools. 3, the creation of a Modular Digital Front-End framework. Four, a Cloud- Native Stack conversion. Each of these activities are critical to the success of Green Dot. Once completed, there are not only substantial near term cost benefits to be realized, but there are important strategic benefits as well. 2021 saw us invest substantial time and effort in preparing for the upcoming transformation and conversions. We are now in the testing phase and expect to begin the heavy lifting in the second quarter.
While we look to make substantial progress in 2022 and look forward to providing you with tangible updates on these calls, the reality is that this is a process where pragmatism and discipline are required to ensure orderly, smooth conversions and will result in substantial completion of this exercise by mid- 2023. We would expect to wrap up the migration of the largest of the third- party platforms, the implementation of the risk management tools, and to have completed the build out of the front- end framework by the end of 2022 or very early 2023. The cloud migration will continue into 2023, and additional third party platforms will be consolidated on an orderly basis into 2024.
Our focus on ensuring a top-tier outcome will result in us being patient when it comes to shutting down platforms. This is the correct and responsible thing to do, and therefore we expect the financial benefits realized in 2022 will be modest and will materialize as we move through the latter part of the year. That said, we're not providing guidance for 2023. We would expect a more meaningful impact on our financials in 2023, with a substantial portion of these investments being realized in 2024. Based on our current project timelines, our expectation is that the minimum cost savings resulting from this investment will be approximately $35 million on an annualized basis. Let me take a moment to be clear about what I mean.
These savings are compared to our cost structure as we exit 2021 using that year as a baseline and include directly traceable processing costs that we are currently incurring related to two processes which we will avoid in the future, net of incremental costs associated with the licensing of our in-house platform. Additionally, we expect to obtain savings related to the technology costs we are currently incurring to maintain our integration with the external processes while the transition is underway of about $14 million annualized. These savings will be largely reflected as reductions in Capital Expenditures. As such, the reductions will benefit cash flow but not be reflected in Adjusted EBITDA. This estimate does not include potential savings related to the consolidation of additional processing platforms that will be converted in the future.
General operating efficiencies we expect to achieve across the organization resulting from a simplified operating environment or revenue enhancement opportunities we additionally expect to achieve. These additional savings and opportunities are more difficult to measure at this stage of the project, although we expect to have more insight into these opportunities by our Q3 earnings call. We expect that a majority of these savings will be achieved in 2023, with each subsequent year capturing additional savings as platforms continue to be converted. We consider this estimate to represent the floor of the returns to be achieved from this investment. While cost savings are important, the more important driver for this investment is what it will do for Green Dot as we compete in the markets in which we serve. We will become a more streamlined and agile company.
We will have significantly more efficient and effective product development, modular product offerings tailored to any partner's needs, speed to market, enhanced risk and consumer care functions, all while being able to deploy new accounts at very low marginal cost. This will enable us to grow our partner and customer base more effectively, monetize that base with value-added products and services, and retain them via improved experiences, elevated service levels, and higher levels of trust in our products. While much has been done, there is still much to do, but we are confident that upon completion, this will be a much stronger, competitive, and valuable company for our customers and our shareholders, and we look forward to giving you updates on our efforts as we move through the year. Before handing it back to Dan for his closing comments.
Based on the trends we are observing as government stimulus recedes from the macro environment, we currently expect full year 2022 non-GAAP revenue to be in a range of $1.39 billion-$1.43 billion, Adjusted EBITDA to be in the range of $225 million-$235 million, and Adjusted fully diluted earnings per share in a range of $2.22-$2.35 per share. Given the timing of the stimulus payments in the prior year, we currently expect the first quarter of 2022 to reflect flat to modest single-digit revenue, Adjusted EBITDA, and non-GAAP EPS growth compared to the equivalent prior year quarter, understanding that the timing of tax disbursements is the single most important driver of first quarter results.
Given our 2022 expectations, our enthusiasm for our prospects and our current expected cash balances, we are pleased to announce that our board has authorized a $100 million share repurchase, which will be executed through 2022. Additionally, we are pleased to announce that we intend to hold an Investor Day in November of this year, where we will be sharing our strategy and expectations for the years ahead based on the investments we have made to make Green Dot a great company. Let me now hand it back to Dan.
Thanks, George. As I look back on 2021, we accomplished quite a bit that will serve as the foundation for Green Dot as we move forward, specifically our people, our processes, and our technology. As indicated in our guidance, we expect to continue to see growth in 2022 and look for more attractive growth in the years ahead, fueled by a more powerful modern banking platform that will not only deliver financial efficiencies, but also set the stage for a much leaner, more nimble, more scalable and profitable Green Dot in years to come. I look forward to discussing our progress throughout the year on these calls and providing more detail and thoughts about our future when we host an investor day in late 2022. With that, we'll be happy to take your questions. Operator.
We'll now begin the question and answer session. To ask a question, you may press Star then one on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press Star then two. We ask that you please limit yourselves to one question and one follow-up. If you have further questions, you may re-enter the question queue. Once again, that was Star then one to ask a question. At this time, we will pause momentarily to assemble our roster. Our first question will come from Ramsey El-Assal of Barclays. Please go ahead.
Hi, guys. It's Damian on for Ramsey. Thanks for taking the questions. Dan, George, good to be introduced to you. Welcome. You know, I wanted to ask a higher level question, I guess, you know, about the investment in the business as it relates to your growth. You know, you're setting the stage here for growth. You know, are you still planning to invest the sort of excess EBITDA back into the business? And when do you think about, you know, shifting your focus to letting the earnings start to flow through the model? And maybe if you've given it any thought, you know, what you think about the sort of long-term margin profile of the business?
Hi, Damian. This is George. Nice to meet you too. When we think about these investments, I mean, of course, the company has been, you know, consuming, you know, financial resources through 2021 and into certainly the first part of 2022 as we essentially add resources to manage this migration that we're about to launch, as I mentioned in Q2. We do expect some very modest contributions, you know, EBITDA contributions that will flow through earnings in the latter half of 2022.
For the most part, we expect the returns that I mentioned in my prepared comments to positively impact the company in 2023, and our expectation is that we'll go through EBITDA as opposed to, for example, being reinvested into other aspects of our business as I think you characterized.
Yeah, that's helpful. Maybe I'll actually switch gears then. Dan, I'm hoping maybe you can comment on your appetite for strategic combinations. Obviously, you've talked a lot about, you know, the organic investment in the business, and there's a lot of work to do, all of it exciting. But I think we've all seen the reports about a certain, you know, prepaid asset potentially being up for sale. You know, do you want to do M&A at this point, or are you focused on organic growth in the business? Thanks.
Damian, I appreciate that question because I'm sure it's probably on minds of a lot of folks. I always prefer organic growth to acquired growth. That being said, I mean, we're always going to be looking opportunistically at intelligent ways to grow the business. When there's interesting assets on the market, we certainly will be looking at them.
Fair enough. Thanks so much, gentlemen.
Thanks, Damian.
The next question comes from Andrew Schmidt of Citi. Please go ahead.
Hey, Dan, George, Tim. Thanks for taking my questions, and appreciate the clarity and detail regarding the technology transformation. I want to start off just on the Consumer Services segment. Obviously, you know, as you called out, there's you know, big headwind from government program roll-offs. Is it possible to kind of peel the layers back and talk about the health of New Customer Acquisition, how that's trending, and whether that's healthy, areas improvement, things like that? Just curious on the new customer front. Any observations you'd share will be helpful. Thanks.
Yeah. Andrew, this is Dan. I'll take the first shot at this, and George can add if he wishes. You know, our whole approach on customer acquisition with our GO2bank product from the very beginning was one about quality, not quantity. I think you've heard me on these calls talk about how we're focused on acquiring customers that commit to our product, commit to relationship, and the biggest indicator of that is when they sign up for Direct Deposit. Our pricing and our products are designed to encourage and support customers that make that commitment to us.
What I can say is that, you know, even with all the activity out there and lots of spend by others, our Customer Acquisition Costs when we look at, you know, growing the direct deposit base, is within our bounds of target bounds, I should say, of what we set. What we see is when we choose to spend, we're able to acquire customers. The reason why I say when we choose to spend, you know, what we are sensitive to is others in the market, if they're out spending aggressively and bidding up prices, you know, we may back off until costs become more reasonable.
Got it.
Did that answer your question?
I appreciate that. Yeah, it did, Dan. Yeah, the focus on unit economics and high-quality customers, I appreciate that. And then, you know, the technology transformation timeline. I guess more about what happens between now and then. Obviously, you're not going to stand still, I assume. You know, you still have a lot of efforts in the works from a product perspective. You mentioned better monetizing the bank, et cetera. You know, does this technology transformation between now and, let's call it mid-2023, does it inhibit your ability at all to develop and roll out new products? Or, should we expect you to continue to roll out new products at a healthy clip? Any insight there will be helpful. Thanks.
Sure, Andrew. Appreciate that. I actually spent the day yesterday with our Chief Product Officer and a couple of our business leaders, and this was one of the topics of discussion. The short answer is no, it's not going to delay us. We are, you know, we're working on parallel fronts to roll out, you know, meaningful products. You know, even before the technical transformation is complete and doing also a lot of design and build work so that when the transformation is complete, you know, then we follow on the heels of that very quickly with new products.
Let me, Andrew, I'm going to just jump in.
Please.
This question that you've asked gives us a good opportunity to contrast what happens today versus what we expect in the future as it relates to product development. For example, if the company rolls out a new product feature today in our Direct-to-Consumer channel, of course, then that feature becomes available for that channel. If we want to then develop that feature for Retail or for one of, you know, a hundred different partners within retail or within partners within BaaS, et cetera, each of those platforms need to be independently engineered in order to configure the particular product characteristics across. You know, you can imagine the permutations that we're talking about. We do produce product and features. We're doing that every day, of course.
Imagine in our post integration world, many of these products are out- of- the- box in the sense that our Card Management System and Core Processing System will have these product features pre-configured. If you take overdraft as an example, 40 pre-configured attributes to it. You know, if we wanted to tailor and distribute that product to all of our partners, all of our channels, all differently, all uniquely, all customized, that's nothing more than a matter of configuration without any engineering work at all. You can imagine the difference in speed- to- market with respect to our ability to go after new product opportunities in that future state.
Yeah. The modular approach definitely makes a lot of sense. I look forward to seeing that.
Thanks a lot, Dan, George. Appreciate the comments.
Sure.
Thank you. The next question comes from Mayank Tandon out of Needham. Please go ahead.
Hey, good afternoon, guys. This is actually Kyle Peterson. I'm from Mayank. Appreciate you guys taking the questions. Just wanted to check and see if your guidance assumes kinda any federal funds rate hikes for the coming year. And maybe if you guys could just remind us on the impact that changes in the Fed Funds Rate does have on your business.
Sure. I'll take that, Kyle. The answer is yes. We do have an assumption. We think a modest and conservative assumption. If you look at the different perspectives on what may or may not happen with rates, you know, something from four rate changes to eight rate changes, I think we're kind of in the more conservative framework as it relates to the guidance that we're giving. Obviously, those rate changes, although we expect them, have not happened. I'd put us on the conservative side of it. To the latter part of your question, we have obviously a portfolio invested in securities, government-backed securities that have less short-term rate sensitivity. Obviously, they, you know, they have a tenor, and they roll off and get repriced, et cetera.
We're really talking about the cash balance at the bank, which is substantial, and that is sensitive to changes, short-term changes in the federal funds rate.
Got it. That's helpful. Maybe just a follow-up on the buyback. Good to see the announcement today. How are you guys thinking about deploying that $100 million in a share repurchase? Do you anticipate doing it more on kind of a steady basis? Or do you think if the share price got kind of in your view, significantly dislocated, would you step in a little more aggressively or in chunks at certain levels?
Yeah. In general, Kyle, our intention is to execute this methodically over the course of the balance of the year via 10b5-1 plan. That's our general assumption. Although I don't want to leave you with the impression that we wouldn't consider, and we may consider doing, more near-term transactions in the form of a smaller ASR or share repurchase, you know, accelerated share repurchase program. We may do that, but our current plan and what is included in our guidance is a steady-state repurchase beginning in April, ending in December.
Got it. That's helpful. Thanks, guys.
Mm-hmm.
Thanks, Kyle.
Once again, if you would like to ask a question, please press star then one. Our next question will come from George Sutton of Craig-Hallum. Please go ahead.
Hey, guys. This is James on for George. Thanks for taking my questions. Earned Wage Access products and instant payouts seem to be seeing a pretty strong demand, particularly as employees are facing hiring and retention challenges. I guess, could you talk about how you're addressing those opportunities? What you view as your differentiators there, or just any examples of wins in the quarter or conversations with customers with respect to those offerings?
This is Dan. Yeah, we have that product and feature is something that we are selling through our paycard business at rapid!. We are feeling very good about the traction and progress that we're making there. We've not announced any wins over the past quarter, but I can say that we are like everybody else in the market very bullish on our potential with that product.
Yeah. I'd just add, of course, you know, that particular channel has, you know, many small wins every month. So, you know, no individual win, you know, rises to the level of, you know, an external press release. That channel's growing very well. It's a very healthy business, very well-run business. EWA, we think, to emphasize Dan's comments, is an extraordinary opportunity for that business. The features within, you know, an EWA product may not be that differentiated, from, you know, one EWA offering to another. But what we have is a differentiated advantage of hundreds of installed paycard clients to sell into. So we're very excited about that product over the course of the next few years.
Perfect. Last quarter, you sort of touched on this Beyond the Rack strategy. Any progress you can share there in terms of level of interest or when we might see some development?
I think, Neil, what I can presently share right now is we're still engaged in really good conversations with some partners on that. You know, everybody is. You know, even, you know, with each passing day, as more and more things press towards digital, our partners are more interested in the solutions we can bring them. Nothing yet to announce, though.
Got it. Lastly, could you just touch on the Walmart relationship? I mean, you touched on the expanded deposit and withdrawal service. Same job post seems about you doing more work with them, but obviously a lot of noise out there with the Ribbit JV. I think any color you would be willing to share there, I think would be helpful.
Yeah. I can't knowingly comment on anything with the JV partnership. But what I continue to comment on is, you know, we have a 20-year+ working relationship with Walmart, 5+ years remaining on our existing contract, as evidenced by what we announced today. I mean, in essence, you know, our solution enables millions of consumers in the U.S. to see Walmart locations as their bank branch for making deposits and withdrawals. We talked about rolling out our overdraft product with Walmart MoneyCards last year. I feel very good about our partnership and relationship with Walmart.
Thanks for taking my questions.
Thank you.
Our next question is a follow-up from Andrew Schmidt of Citi. Please go ahead.
Hey, guys. Thanks for taking my follow-up. I was wondering if you could just talk a little bit about just how you're thinking about Active Account growth in 2022 for Consumer Services. Obviously, there's a balance there between active account growth and productivity or Revenue per Average Active. Just curious if you could give us any thoughts how to think about active account growth given the stimulus headwinds and you know, the other comp issues that we'll face next year. Thanks.
Yeah. Thanks, Andrew.
Yeah.
Oh, I'm sorry, Dan. Go ahead.
No, go ahead, George. I'm just gonna
Okay.
You'll probably give a more quantitative answer while I'll just give the fluff and flower. You go ahead and
Flower. Yeah. Let's start with that.
I would just reiterate the Quality versus Quantity sort of approach that we have.
Gotcha
I'm still optimistic about it. George, why don't you go ahead and maybe give him a little more info.
Thanks, Dan. Yeah. Well, I mean, I wanna put a little subtlety around your question. I'm gonna talk about it first, Andrew, in the context of the total account activities. I think that when we think about consumer, the Consumer business, it'll largely track my general comments here. First, I think, when we think about our overall account trends, I'm gonna start way back in December of 2020, because what's important about that period was right at the end of December, the major government stimulus event that occurred within the last days of two thousand twenty, and that would have had the effect on us of having activated some accounts that were otherwise sitting dormant, right?
Deposits were paid, and so our account numbers probably got a little bit of a boost in that very end period. Obviously as we've trailed through 2021, you know, whatever accounts were here just for the stimulus benefits have attrited off or are in the process of attriting off. As we look into 2022 and what our guidance is based on the general assumption is I think you see our seasonal trends, where you have a dip from Q3 to Q4, and then you have a lift in Q1 into Q2, et cetera. You know, we would expect a similar pattern going into 2022. I would say that we do expect to end the year with account growth 2022 over 2021.
Although I think if you were looking at the average accounts on the platform in 2021 versus our assumptions for 2022, you would see a decline on average with an upswing in the exit. I think you're gonna see, you know, similar patterns specific to the Consumer Services business as well.
Very helpful. If I could sneak one more in, just maybe help folks kinda from a modeling perspective. Just, you know, within the context of the outlook, just, you know, how the balance of growth. When we think about the balance of growth in consumer Consumer B2B and Money Movement. It seems like, you know, we should see something similar to this year where, you kinda see B2B outperforming on a relative basis. Just any commentary in terms of how the segments shake out would be helpful. Thanks.
Sure. Well, yeah, to try to dodge a little bit on giving individual segment level guidance, I'll say, of course, starting with Money Movement, you know, we had a growth over issue over the last year because of the account we've made reference to many times. You know, we're kinda rounding the bend on that. We would expect to not have a continuation of declines in that channel. We would continue to expect our B2B Services channel to have the highest growth rate across the segments, and we would expect Consumer Services to have a very modest growth rate, if that's the way I might put it.
Perfect. Very helpful. Thank you very much for the time, guys. Appreciate it.
Yeah, you bet.
This concludes our question and answer session. I would like to turn the call back over to Dan Henry for any closing remarks.
Thank you, operator. Thank you everybody for your time today. Appreciate it very much. As always, we're available for follow questions. I just ask you to, for it to be most efficient, direct that through Tim Willi. Thank you all. Take care.
The conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.