The Pasadena, California-based company reported first-quarter earnings of $64 million, or $1.17 a share, which was down from $70 million, or $1.29 a share, a year ago. Adjusted earnings came to $1.51 a share, which beat analysts' expectations of $1.42.
Revenue totaled $325.72 million for the quarter, up from $315 million a year ago, but missed Wall Street's forecast of $329.2 million.
Looking ahead, Green Dot said it expects second-quarter revenue of $261 million, which is short of Wall Street's target of $283 million. Full-year revenue is projected to range from $1.11 billion to $1.13 billion, while analysts are looking for $1.14 billion.
The company called for full-year earnings to range from $2.82 to $2.91 a share, down from earlier guidance of $3.59 to $3.67 a share. Wall Street is looking for $3.64 a share.
Mark Shifke, chief financial officer, said in a statement that the company intends to invest "an incremental $60 million for the purpose of aggressively marketing our new products that are set to launch later this year, and to advance the development and deployment of our BaaS 3.0 and BaaS 4.0 technology platforms."
Several analysts lowered their price targets for the company. SunTrust analyst Andrew Jeffrey lowered his price target on Green Dot to $70 from $90 after the company announced a massive investment increase, but added that he views the near-term weakness as an opportunity for investors to add to holdings.
Jeffrey maintained his buy rating on the company, saying the investment should accommodate the expected higher demand for platform offerings, even though he sees the company's financial visibility being "materially" impaired by the guidance cut.