Dave Announces Preliminary Financial Results for Third Quarter 2024 and Issues Statement Regarding FTC Matter
Dave Inc. (DAVE) announced preliminary Q3 2024 financial results, reporting revenue of $92.5 million, up 41% year-over-year, and net income of $0.5 million, a $12.5 million improvement from last year. The company achieved Adjusted EBITDA of $24.7 million, representing a $27.2 million increase year-over-year. The results include a $7.0 million legal settlement related to an FTC matter. Dave plans to raise its full-year 2024 Revenue and Adjusted EBITDA guidance in the upcoming earnings release. The company is currently facing an FTC lawsuit regarding consumer disclosures and consent, though management emphasizes this doesn't affect their ability to charge subscription fees and optional tips.
Dave Inc. (DAVE) ha annunciato i risultati preliminari finanziari del terzo trimestre 2024, riportando un fatturato di 92,5 milioni di dollari, in crescita del 41% rispetto all’anno precedente, e un reddito netto di 0,5 milioni di dollari, con un miglioramento di 12,5 milioni di dollari rispetto all'anno scorso. L’azienda ha raggiunto un EBITDA rettificato di 24,7 milioni di dollari, con un incremento di 27,2 milioni di dollari rispetto all’anno precedente. I risultati includono un risarcimento legale di 7,0 milioni di dollari relativo a una questione con la FTC. Dave prevede di aumentare le previsioni di fatturato e EBITDA rettificato per l'intero anno 2024 nella prossima comunicazione sugli utili. Attualmente, l'azienda sta affrontando una causa della FTC riguardante le divulgazioni ai consumatori e il consenso, sebbene la direzione sottolinei che ciò non influisce sulla loro capacità di addebitare tariffe di abbonamento e mance opzionali.
Dave Inc. (DAVE) anunció los resultados financieros preliminares del tercer trimestre de 2024, informando un ingreso de 92.5 millones de dólares, un aumento del 41% interanual, y una ganancia neta de 0.5 millones de dólares, una mejora de 12.5 millones de dólares en comparación con el año anterior. La compañía logró un EBITDA ajustado de 24.7 millones de dólares, representando un aumento de 27.2 millones de dólares en comparación con el año anterior. Los resultados incluyen un acuerdo legal de 7.0 millones de dólares relacionado con un asunto de la FTC. Dave planea aumentar su guía de ingresos y EBITDA ajustados para todo el año 2024 en el próximo informe de ganancias. Actualmente, la empresa enfrenta una demanda de la FTC en relación con divulgaciones al consumidor y consentimiento, aunque la dirección enfatiza que esto no afecta su capacidad para cobrar tarifas de suscripción y propinas opcionales.
데이브 주식회사 (DAVE)는 2024년 3분기 예비 재무 결과를 발표하며 매출이 9천250만 달러로 지난해 대비 41% 증가했다고 보고했습니다. 또한 순이익이 50만 달러로 지난해보다 1천250만 달러 개선되었습니다. 회사는 조정 EBITDA가 2천470만 달러에 달하며, 이는 지난해 대비 2천720만 달러 증가한 수치입니다. 결과에는 FTC 사건에 관련된 700만 달러의 법적 합의가 포함되어 있습니다. 데이브는 차기 실적 발표에서 2024년 전체 연도 매출 및 조정 EBITDA 가이던스를 상향 조정할 계획입니다. 현재 회사는 소비자 정보 제공 및 동의와 관련된 FTC 소송에 직면해 있지만, 경영진은 이것이 구독료 및 선택적 팁을 청구하는 능력에 영향을 미치지 않는다고 강조합니다.
Dave Inc. (DAVE) a annoncé les résultats financiers préliminaires du troisième trimestre 2024, rapportant un chiffre d'affaires de 92,5 millions de dollars, en hausse de 41 % par rapport à l'année précédente, et un bénéfice net de 0,5 million de dollars, soit une amélioration de 12,5 millions de dollars par rapport à l'an dernier. L'entreprise a atteint un EBITDA ajusté de 24,7 millions de dollars, représentant une augmentation de 27,2 millions de dollars par rapport à l'année précédente. Les résultats incluent un règlement légal de 7,0 millions de dollars lié à une affaire de la FTC. Dave prévoit d'augmenter ses prévisions de chiffre d'affaires et d'EBITDA ajusté pour l'ensemble de l'année 2024 lors de la prochaine publication des résultats. L'entreprise fait actuellement face à un procès de la FTC concernant les divulgations aux consommateurs et le consentement, bien que la direction souligne que cela n'affecte pas leur capacité à facturer des frais d'abonnement et des pourboires optionnels.
Dave Inc. (DAVE) hat die vorläufigen finanziellen Ergebnisse für das dritte Quartal 2024 bekannt gegeben und berichtet von einem Umsatz von 92,5 Millionen Dollar, was einem Anstieg von 41% im Vergleich zum Vorjahr entspricht, und einem Nettoeinkommen von 0,5 Millionen Dollar, was eine Verbesserung von 12,5 Millionen Dollar im Vergleich zum Vorjahr bedeutet. Das Unternehmen erzielte ein bereinigtes EBITDA von 24,7 Millionen Dollar, was einen Anstieg von 27,2 Millionen Dollar im Vergleich zum Vorjahr darstellt. Die Ergebnisse beinhalten eine rechtliche Einigung über 7,0 Millionen Dollar, die im Zusammenhang mit einer FTC-Angelegenheit steht. Dave plant, die Umsatz- und bereinigte EBITDA-Prognosen für das Gesamtjahr 2024 bei der bevorstehenden Gewinnmeldung anzuheben. Das Unternehmen sieht sich derzeit einer FTC-Klage über Verbraucherinformationen und Zustimmung gegenüber, obwohl das Management betont, dass dies nicht ihre Fähigkeit beeinträchtigt, Abonnementgebühren und optionale Trinkgelder zu erheben.
- Revenue increased 41% YoY to $92.5 million
- Achieved profitability with $0.5 million net income, up $12.5 million YoY
- Adjusted EBITDA grew by $27.2 million YoY to $24.7 million
- Plans to raise full-year 2024 guidance for Revenue and Adjusted EBITDA
- Incurred $7.0 million legal settlement and litigation reserve for FTC matter
- Facing FTC lawsuit regarding consumer disclosures and consent practices
Insights
The preliminary Q3 results showcase remarkable financial performance with
However, the FTC lawsuit presents a material risk. While management asserts their revenue model isn't threatened since the dispute centers on disclosures rather than fee structures, regulatory scrutiny could impact customer acquisition and retention. The company's strong cash position supports their legal defense, but resolution timing and potential settlement costs remain uncertain.
The planned guidance raise suggests management's confidence in business fundamentals despite regulatory headwinds. The
The FTC lawsuit, while concerning, appears focused on disclosure practices and consent mechanisms rather than the fundamental business model. This distinction is important - the challenge isn't to Dave's ability to charge fees but to how they communicate these charges to customers. The
Previous FTC actions against fintech companies have typically resulted in settlements requiring enhanced disclosures and monetary penalties rather than operational restructuring. Dave's proactive disclosure and existing legal reserves demonstrate prudent risk management. However, the timeline for resolution and final settlement terms could differ significantly from management's current expectations.
LOS ANGELES, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Dave Inc. (“Dave” or the “Company”) (Nasdaq: DAVE), one of the nation’s leading neobanks, today announced certain preliminary financial results for the quarter ended September 30, 2024.
Preliminary Financial Results for Third Quarter 2024
Management expects the Company to report the following preliminary, unaudited results in respect of its quarterly period ended September 30, 2024:
- Revenue of
$92.5 million , a41% year-over-year increase - Net Income of
$0.5 million , a$12.5 million year-over-year increase. Net income for the quarter includes a$7.0 million legal settlement and litigation reserve related to the FTC matter referenced further below - Adjusted EBITDA* of
$24.7 million , a$27.2 million year-over-year increase
* Non-GAAP measure. See reconciliation of this non-GAAP measure at the end of the press release.
“In light of the recent FTC action, we wanted to share preliminary Q3 results and reiterate the positive outlook for our business,” said Jason Wilk, Founder and CEO of Dave. “We are pleased to report that we have delivered yet another record quarter of accelerating revenue growth and profitability, demonstrating the continued strength of our business. Given our strong year-to-date performance and continued positive outlook, we plan to raise our full-year 2024 Revenue and Adjusted EBITDA guidance in our upcoming earnings release on November 12.
“It is worth emphasizing that the FTC’s action, for which we believe we have strong defenses, is related to consumer disclosures and consent, not our ability to charge subscription fees and optional tips and express fees moving forward. Accordingly, we have not contemplated any changes to our forecast as a result of the FTC’s action.
“With strong profitability, we believe we are well-positioned to sustain a vigorous defense and bring this matter to resolution. Our commitment to transparency, compliance, and customer trust remains our highest priority as we continue to serve the needs of our members.”
The financial information in this press release is preliminary, unaudited, based on currently available information, and subject to adjustment in the final financial statements to be filed with the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2024.
Statement Regarding FTC Matter
As we disclosed in the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2024, we have been cooperating with the FTC in response to a Civil Investigative Demand seeking information about our ExtraCash and other banking products. Following months of good-faith negotiations, we are disappointed the FTC has chosen to file suit against Dave, a company on a mission to level the financial playing field for the millions of Americans poorly served by the legacy financial system. The FTC asserts many incorrect claims regarding Dave’s disclosures and how the Company acquires consent for the fees associated with our products. For the avoidance of doubt, Dave’s ability to charge subscription fees and optional tips and express fees is not in question. We believe this case is another example of regulatory overreach by the FTC, and we intend to vigorously defend ourselves. We take compliance and customer transparency very seriously and believe that we have always acted within the law. We remain focused on serving our members who love and rely on our products.
Full Earnings Release and Conference Call
Dave management will host a conference call on Tuesday, November 12, 2024, at 5:00 p.m. Eastern time to discuss its full financial results for the third quarter ended September 30, 2024. The Company’s results will be reported in a press release prior to the call. The conference call details are as follows:
Date: Tuesday, November 12, 2024
Time: 5:00 p.m. Eastern time
Dial-in registration link: Here
Live webcast registration link: Here
The conference call will also be available for replay in the Events section of the Company’s website, along with the transcript, at https://investors.dave.com.
If you have any difficulty registering for or connecting to the conference call, please contact Elevate IR at DAVE@elevate-ir.com.
About Dave
Dave (Nasdaq: DAVE) is a leading U.S. neobank and fintech pioneer serving millions of everyday Americans. Dave uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents. Dave partners with Evolve Bank & Trust, a FDIC member. For more information about the company, visit: www.dave.com. For investor information and updates, visit: investors.dave.com and follow @davebanking on X.
Forward-Looking Statements
This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as “feels,” “believes,” “expects,” “estimates,” “projects,” “intends,” “remains,” “should,” “is to be,” or the negative of such terms, or other comparable terminology and include, among other things, the quotation of our Chief Executive Officer relating to Dave’s future performance and growth, statements relating to fiscal year 2024 guidance, projected financial results for future periods, plans for marketing spend and the FTC’s lawsuit against us and other statements about future events. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: the ability of Dave to compete in its highly competitive industry; the ability of Dave to keep pace with the rapid technological developments in its industry and the larger financial services industry; the ability of Dave to manage risks associated with providing ExtraCash advances; the ability of Dave to retain its current Members, acquire new Members and sell additional functionality and services to its Members; the ability of Dave to protect intellectual property and trade secrets; the ability of Dave to maintain the integrity of its confidential information and information systems or comply with applicable privacy and data security requirements and regulations; the reliance by Dave on a single bank partner; the ability of Dave to maintain or secure current and future key banking relationships and other third-party service providers; changes in applicable laws or regulations and extensive and evolving government regulations that impact operations and business; the ability to attract or maintain a qualified workforce; level of product service failures that could lead Dave Members to use competitors’ services; investigations, claims, disputes, enforcement actions, litigation and/or other regulatory or legal proceedings, including the FTC’s lawsuit against Dave; the ability to maintain the listing of Dave Class A Common Stock on The Nasdaq Stock Market; the possibility that Dave may be adversely affected by other economic factors, including rising interest rates, and business, and/or competitive factors; and other risks and uncertainties discussed in Dave’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2024 and subsequent Quarterly Reports on Form 10-Q under the heading “Risk Factors,” filed with the SEC and other reports and documents Dave files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Dave undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Preliminary Financial and Operating Results
The preliminary financial results set forth above for the three months ended September 30, 2024, reflect preliminary, unaudited estimates with respect to such results based solely on currently available information, which is subject to change. Such preliminary results are subject to the finalization of quarter-end financial and accounting procedures. While carrying out such procedures, Dave may identify items that would require it to make adjustments to the preliminary estimates of financial results set forth herein. As a result, Dave’s actual financial results could differ than the information set forth herein and such differences could be material. Moreover, preliminary and estimated financial results should not be viewed as a substitute for Dave’s full quarterly financial statements for the three months ended September 30, 2024, which will be prepared in accordance with U.S. GAAP.
Non-GAAP Financial Information
This press release contains references to Adjusted EBITDA (loss), which is a non-GAAP financial measure that is adjusted from results based on generally accepted accounting principles in the United States (“GAAP”) and excludes certain expenses, gains and losses. The Company defines and calculates Adjusted EBITDA (loss) as GAAP net income (loss) attributable to Dave before the impact of interest income or expense, provision/(benefit) for income taxes, and depreciation and amortization, and adjusted to exclude legal settlement and litigation expenses, other non-recurring strategic financing and transaction expenses, stock-based compensation expense, and certain other non-core items.
Adjusted EBITDA (loss) may be helpful to the user in assessing our operating performance and facilitates an alternative comparison among fiscal periods. The Company’s management team uses Adjusted EBITDA (loss), among other non-GAAP financial measures, in assessing performance, as well as in planning and forecasting future periods. The methods the Company uses to compute its non-GAAP financial measures may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Refer to the section further below for a reconciliation of Adjusted EBITDA (loss) to its most directly comparable GAAP measure for the three and nine months ended September 30, 2024 and 2023.
Investor Relations Contact
Sean Mansouri, CFA
Elevate IR
DAVE@elevate-ir.com
Media Contact
Dan Ury
press@dave.com
| DAVE INC. | ||||||||||||||
| RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (LOSS) | ||||||||||||||
| (in millions) | ||||||||||||||
| (unaudited) | ||||||||||||||
| For the Three Months Ended September 30, | For Nine Months Ended September 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) | $ | 0.5 | $ | (12.1 | ) | $ | 41.1 | $ | (48.7 | ) | ||||
| Interest expense, net | 1.5 | 1.7 | 3.7 | 5.0 | ||||||||||
| Provision for income taxes | 0.4 | — | 1.8 | — | ||||||||||
| Depreciation and amortization | 1.7 | 1.4 | 5.2 | 3.7 | ||||||||||
| Stock-based compensation | 13.4 | 6.7 | 27.2 | 20.1 | ||||||||||
| Gain on extinguishment of convertible debt | — | — | (33.4 | ) | — | |||||||||
| Legal settlement and litigation expenses | 7.0 | — | 7.0 | — | ||||||||||
| Changes in fair value of earnout liabilities | — | — | 0.1 | — | ||||||||||
| Changes in fair value of public and private warrant liabilities | 0.2 | (0.2 | ) | 0.4 | (0.2 | ) | ||||||||
| Adjusted EBITDA (loss) | $ | 24.7 | $ | (2.5 | ) | $ | 53.1 | $ | (20.1 | ) | ||||
FAQ
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