GreenSky, Inc., a leading financial technology company Powering Commerce at the Point of Sale, 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.

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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.