Dave Reports Record Third Quarter 2024 Results and Raises Full Year 2024 Guidance
Dave Inc. (DAVE) reported strong Q3 2024 results with record revenue of $92.5 million, up 41% year-over-year, marking the fourth consecutive quarter of accelerating growth. The company achieved net income of $0.5 million, a $12.5 million improvement from last year, and Adjusted EBITDA of $24.7 million, up $27.2 million year-over-year. Monthly Transacting Members grew 23% to 2.4 million, while ExtraCash originations increased 46% to $1.4 billion. Based on strong performance, Dave raised its full-year 2024 guidance, now expecting revenue of $340-343 million and Adjusted EBITDA of $71-74 million.
Dave Inc. (DAVE) ha riportato risultati solidi per il terzo trimestre del 2024, con un fatturato record di 92,5 milioni di dollari, in aumento del 41% rispetto all'anno precedente, segnando il quarto trimestre consecutivo di crescita accelerata. L'azienda ha raggiunto un reddito netto di 0,5 milioni di dollari, con un miglioramento di 12,5 milioni rispetto all'anno scorso, e un EBITDA rettificato di 24,7 milioni di dollari, in aumento di 27,2 milioni su base annua. I membri attivi mensili sono cresciuti del 23%, raggiungendo 2,4 milioni, mentre le originazioni di ExtraCash sono aumentate del 46%, toccando 1,4 miliardi di dollari. Sulla base di questa forte performance, Dave ha alzato le previsioni per l'intero anno 2024, ora aspettandosi un fatturato di 340-343 milioni di dollari e un EBITDA rettificato di 71-74 milioni di dollari.
Dave Inc. (DAVE) reportó resultados sólidos para el tercer trimestre de 2024, con ingresos récord de 92,5 millones de dólares, un aumento del 41% interanual, marcando el cuarto trimestre consecutivo de crecimiento acelerado. La empresa logró ingresos netos de 0,5 millones de dólares, una mejora de 12,5 millones respecto al año pasado, y un EBITDA ajustado de 24,7 millones de dólares, un incremento de 27,2 millones interanual. Los miembros activos mensuales crecieron un 23% hasta alcanzar los 2,4 millones, mientras que las originaciones de ExtraCash aumentaron un 46% hasta 1,4 mil millones de dólares. Con base en su sólido rendimiento, Dave elevó su guía para todo el año 2024, ahora esperando ingresos de 340-343 millones de dólares y un EBITDA ajustado de 71-74 millones de dólares.
Dave Inc. (DAVE)는 2024년 3분기 강력한 실적을 보고했으며, 기록적인 매출 9,250만 달러를 기록하여 전년 대비 41% 증가하여 네 분기 연속으로 가속 성장세를 보였습니다. 회사는 순이익 50만 달러를 달성했으며, 이는 지난해보다 1,250만 달러 개선된 수치이며, 조정 EBITDA 2,470만 달러를 기록하여 전년 대비 2,720만 달러 증가했습니다. 월별 거래 회원 수는 23% 증가한 240만 명에 달했고, ExtraCash의 출처는 46% 증가하여 14억 달러에 도달했습니다. 강력한 실적에 기반하여, Dave는 2024년 전체 매출 전망을 상향 조정하여 이제 3억 4천만에서 3억 4천 3백만 달러, 조정 EBITDA는 7천 1백만에서 7천 4백만 달러를 예상하고 있습니다.
Dave Inc. (DAVE) a rapporté de solides résultats pour le troisième trimestre de 2024, avec des revenus record de 92,5 millions de dollars, soit une augmentation de 41 % par rapport à l'année précédente, marquant ainsi le quatrième trimestre consécutif de croissance accélérée. L'entreprise a enregistré un revenu net de 0,5 million de dollars, une amélioration de 12,5 millions par rapport à l'année précédente, et un EBITDA ajusté de 24,7 millions de dollars, en hausse de 27,2 millions sur un an. Le nombre de membres actifs mensuels a augmenté de 23 %, atteignant 2,4 millions, tandis que les origines de l'ExtraCash ont augmenté de 46 %, atteignant 1,4 milliard de dollars. Sur la base de cette performance solide, Dave a relevé ses prévisions pour l'ensemble de l'année 2024, s'attendant maintenant à des revenus compris entre 340 et 343 millions de dollars et à un EBITDA ajusté de 71 à 74 millions de dollars.
Dave Inc. (DAVE) hat starke Ergebnisse für das dritte Quartal 2024 berichtet, mit einem Rekordumsatz von 92,5 Millionen Dollar, was einem Anstieg von 41 % im Vergleich zum Vorjahr entspricht, und somit das vierte aufeinanderfolgende Quartal mit beschleunigtem Wachstum markiert. Das Unternehmen erzielte ein Nettoergebnis von 0,5 Millionen Dollar, was eine Verbesserung um 12,5 Millionen im Vergleich zum Vorjahr darstellt, sowie ein bereinigtes EBITDA von 24,7 Millionen Dollar, was einem Anstieg von 27,2 Millionen im Vergleich zum Vorjahr entspricht. Die monatlich aktiven Mitglieder wuchsen um 23 % auf 2,4 Millionen, während die Originierungen von ExtraCash um 46 % auf 1,4 Milliarden Dollar anstiegen. Basierend auf der starken Leistung hat Dave die Prognose für das gesamte Jahr 2024 angehoben und erwartet nun einen Umsatz von 340-343 Millionen Dollar und ein bereinigtes EBITDA von 71-74 Millionen Dollar.
- Record Q3 revenue of $92.5M, up 41% YoY
- Achieved profitability with $0.5M net income, improving $12.5M YoY
- Adjusted EBITDA increased by $27.2M YoY to $24.7M
- Variable profit margin expanded by 1,300 basis points YoY
- Monthly Transacting Members up 23% to 2.4M
- Customer acquisition costs decreased 14% to $15
- ExtraCash originations increased 46% to $1.4B
- Raised full-year 2024 guidance for revenue and Adjusted EBITDA
- Cash and equivalents decreased to $76.7M from $89.7M in Q2 2024
- ExtraCash receivables increased by $37.7M, impacting liquidity
Insights
Dave's Q3 results showcase remarkable financial strength with
Key performance metrics are robust:
The announced strategic partnership with a publicly-traded fintech sponsor bank represents a significant strategic move. This diversification of banking relationships strengthens Dave's operational foundation and regulatory compliance framework. The partnership's focus on credit and banking products expansion aligns with the neobank's growth trajectory.
The improvement in credit performance, evidenced by the 64 basis point reduction in delinquency rates to
Record Q3 Revenue up
Q3 Net Income Increases
Dave Raises 2024 Revenue and Adjusted EBITDA Guidance
LOS ANGELES, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Dave Inc. (“Dave” or the “Company”) (Nasdaq: DAVE), one of the nation’s leading neobanks, today reported its financial results for the third quarter ended September 30, 2024.
“As we announced last week when issuing preliminary results, we once again exceeded growth and profitability expectations in the third quarter,” said Jason Wilk, Founder and CEO of Dave. “Our fourth consecutive quarter of accelerating year-over-year revenue growth resulted from double-digit increases in both ARPU and monthly transacting members to quarterly records for both metrics. We delivered another record quarter of variable margin, which expanded nearly 1,300 basis points year-over-year, driven by stellar credit performance enabled by CashAI. We achieved highly efficient customer acquisition costs at greater scale and significant operating leverage as we remained disciplined in managing our fixed costs. This resulted in
“Given the scale we’ve achieved and the strong member growth we continue to experience, earlier today we announced that we entered into a non-binding letter of intent to form a strategic partnership with what we believe to be one of the most highly respected fintech sponsor banks in order to further diversify our key commercial relationships. This new bank partner, whose parent is publicly traded, will leverage its strong compliance and risk management capabilities to sponsor our current and future credit and banking products in support of Dave’s mission of leveling the financial playing field for everyday Americans.”
Quarterly Financial Highlights ($ in millions, unaudited)
| 3Q23 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | |
| GAAP Operating Revenues, Net | |||||
| % Change vs. prior year period | |||||
| Non-GAAP Variable Profit* | |||||
| % Change vs. prior year period | |||||
| Non-GAAP Variable Profit Margin* | |||||
| GAAP Net Income (Loss) | ( | ||||
| Adjusted Net Income (Loss)* | ( | ||||
| Adjusted EBITDA (Loss)* | ( |
*Non-GAAP measures. See reconciliation of non-GAAP measures at the end of the press release.
Third Quarter 2024 Operating Highlights (vs. Q3 2023)
- New Members increased
4% to 854,000 while customer acquisition costs decreased14% to$15 - Monthly Transacting Members (“MTMs”) increased
23% to 2.4 million - ExtraCash originations increased
46% to$1.4 billion , while the average 28-Day delinquency rate improved 64 basis points to1.78% - Dave Debit Card spend increased
19% to$407 million - For a full review of the Company’s key performance indicators, please refer to the Company’s Third Quarter 2024 Earnings Presentation which can be found on the Investor Relations page of our website.
Liquidity Summary
The Company had
2024 Financial Guidance ($ in millions)
| Prior FY 2024 | New FY 2024 | |
| GAAP Operating Revenues, Net | ||
| Year-Over-Year Growth | ||
| Adjusted EBITDA* | ||
| Year-Over-Year Improvement |
*Non-GAAP measure. The Company does not provide a quantitative reconciliation of forward-looking non-GAAP financial measures because it is unable to predict without unreasonable effort the exact amount or timing of the reconciling items, including interest expense, investment income, and loss provision, among others. The variability of these items could have a significant impact on our future GAAP financial results.
Dave’s CFO, Kyle Beilman, commented: “With
Conference Call
The Company will host a conference call at 5:00 p.m. Eastern time on Tuesday, November 12, 2024, to discuss the results for its third quarter ended September 30, 2024, followed by a question-and-answer period. 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, statements relating to Dave’s future performance and growth, fiscal year 2024 guidance, projected financial results for future periods, plans for marketing spend 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, including as contemplated by the previously announced letter of intent to form a strategic partnership with a potential bank sponsor; 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 Federal Trade Commission’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.
Non-GAAP Financial Information
This press release contains references to Adjusted EBITDA (loss), adjusted net income (loss), non-GAAP variable operating expenses, non-GAAP variable profit and non-GAAP variable profit margin of Dave, which are non-GAAP financial measures that are adjusted from results based on generally accepted accounting principles in the United States (“GAAP”) and exclude 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. The Company defines and calculates non-GAAP variable operating expenses as operating expenses excluding non-variable operating expenses. The Company defines non-variable operating expenses as all advertising and marketing operating expenses, compensation and benefits operating expenses, and certain operating expenses (legal, rent, technology/infrastructure, depreciation, amortization, charitable contributions, other operating expenses, upfront Member account activation costs and upfront Dave Banking expenses). The Company defines and calculates non-GAAP variable profit as GAAP Operating Revenues, Net less non-GAAP variable operating expenses. The Company defines and calculates non-GAAP variable profit margin as non-GAAP variable profit as a percent of GAAP Operating Revenues, Net. The Company defines and calculates adjusted net income (loss) as GAAP net income (loss) adjusted to exclude stock compensation, the gain on extinguishment of convertible debt, the tax impact related to the gain on extinguishment of convertible debt and certain other non-core items. The Company defines and calculates non-GAAP adjusted basic EPS and non-GAAP adjusted diluted EPS as adjusted net income (loss) divided by weighted average shares of common stock-basic and weighted average shares of common stock-diluted, respectively.
These non-GAAP financial measures may be helpful to the user in assessing our operating performance and facilitate an alternative comparison among fiscal periods. The Company’s management team uses these non-GAAP financial measures in assessing performance, as well as in planning and forecasting future periods. The methods the Company uses to compute these 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 these non-GAAP financial measures to their most directly comparable GAAP measures for the three and nine months ended September 30, 2024 and 2023.
Certain Other Terms
Dave defines New Members as the number of new Members who join the Dave platform in a given period by connecting an existing bank account to the Dave service or by opening a new Dave Banking account. Total Members is defined as the number of unique Members that have either connected an existing bank account to the Dave service or have opened a Dave Banking account, less the number of accounts deleted by Members or closed by Dave, as measured at the end of a period. The number of Monthly Transacting Members represents the unique number of Members who have made a funding, spending, ExtraCash or subscription transaction within a particular month, measured as the average over a given period.
Investor Relations Contact
Sean Mansouri, CFA
Elevate IR
DAVE@elevate-ir.com
Media Contact
Dan Ury
press@dave.com
| DAVE INC. | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the Three Months Ended September 30, | For Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating revenues: | ||||||||||||||||
| Service based revenue, net | $ | 83.4 | $ | 59.2 | $ | 220.6 | $ | 166.7 | ||||||||
| Transaction based revenue, net | 9.1 | 6.6 | 25.6 | 19.3 | ||||||||||||
| Total operating revenues, net | 92.5 | 65.8 | 246.2 | 186.0 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Provision for credit losses | 13.7 | 16.0 | 38.0 | 43.9 | ||||||||||||
| Processing and servicing costs | 8.6 | 7.1 | 24.1 | 21.4 | ||||||||||||
| Advertising and marketing | 12.5 | 13.9 | 32.3 | 38.4 | ||||||||||||
| Compensation and benefits | 30.7 | 23.1 | 79.8 | 71.4 | ||||||||||||
| Other operating expenses | 24.4 | 16.3 | 58.3 | 54.8 | ||||||||||||
| Total operating expenses | 89.9 | 76.4 | 232.5 | 229.9 | ||||||||||||
| Other (income) expenses: | ||||||||||||||||
| Interest expense, net | 1.5 | 1.7 | 3.7 | 5.0 | ||||||||||||
| Gain on extinguishment of convertible debt | — | — | (33.4 | ) | — | |||||||||||
| 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 | ) | ||||||||||
| Total other (income) expense, net | 1.7 | 1.5 | (29.2 | ) | 4.8 | |||||||||||
| Net income (loss) before provision for income taxes | 0.9 | (12.1 | ) | 42.9 | (48.7 | ) | ||||||||||
| Provision for income taxes | 0.4 | — | 1.8 | — | ||||||||||||
| Net income (loss) | $ | 0.5 | $ | (12.1 | ) | $ | 41.1 | $ | (48.7 | ) | ||||||
| Net income (loss) per share: | ||||||||||||||||
| Basic | $ | 0.04 | $ | (1.01 | ) | $ | 3.30 | $ | (4.10 | ) | ||||||
| Diluted | $ | 0.03 | $ | (1.01 | ) | $ | 3.02 | $ | (4.10 | ) | ||||||
| RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP VARIABLE OPERATING EXPENSES | ||||||||||||||||
| (in millions) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the Three Months Ended September 30, | For Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating expenses | $ | 89.9 | $ | 76.4 | $ | 232.5 | $ | 229.9 | ||||||||
| Non-variable operating expenses | (61.6 | ) | (47.9 | ) | (152.2 | ) | (148.3 | ) | ||||||||
| Non-GAAP variable operating expenses | $ | 28.3 | $ | 28.5 | $ | 80.3 | $ | 81.6 | ||||||||
| CALCULATION OF NON-GAAP VARIABLE PROFIT | ||||||||||||||||
| (in millions) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| For the Three Months Ended September 30, | For Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| GAAP operating revenues, net | $ | 92.5 | $ | 65.8 | $ | 246.2 | $ | 186.0 | ||||||||
| Non-GAAP variable operating expenses | (28.3 | ) | (28.5 | ) | (80.3 | ) | (81.6 | ) | ||||||||
| Non-GAAP variable profit | $ | 64.2 | $ | 37.3 | $ | 165.9 | $ | 104.4 | ||||||||
| Non-GAAP variable profit margin | 69% | 57% | 67% | 56% | ||||||||||||
| 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 | 5.1 | 3.7 | ||||||||||||
| Stock-based compensation | 13.4 | 6.7 | 27.2 | 20.1 | ||||||||||||
| Legal settlement and litigation accrual | 7.0 | — | 7.0 | — | ||||||||||||
| Gain on extinguishment of convertible debt | — | — | (33.4 | ) | — | |||||||||||
| 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 | ) | $ | 53.0 | $ | (20.1 | ) | ||||||
| DAVE INC. | ||||||||||||||||
| RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) | ||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||
| (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 | ) | ||||||
| Stock-based compensation | 13.4 | 6.7 | 27.2 | 20.1 | ||||||||||||
| Gain on extinguishment of convertible debt | — | — | (33.4 | ) | — | |||||||||||
| Legal settlement and litigation accrual | 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 | ) | ||||||||||
| Income tax expense related to gain on extinguishment of convertible debt | — | — | 0.5 | — | ||||||||||||
| Adjusted net income (loss) | $ | 21.1 | $ | (5.6 | ) | $ | 42.9 | $ | (28.8 | ) | ||||||
| Adjusted net income (loss) per share: | ||||||||||||||||
| Basic | $ | 1.66 | $ | (0.47 | ) | $ | 3.45 | $ | (2.42 | ) | ||||||
| Diluted | $ | 1.51 | $ | (0.47 | ) | $ | 3.15 | $ | (2.42 | ) | ||||||
| DAVE INC. | ||||||||||||||||
| LIQUIDITY AND CAPITAL RESOURCES | ||||||||||||||||
| (in millions) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| September 30, | December 31, | |||||||||||||||
| 2024 | 2023 | |||||||||||||||
| Cash, cash equivalents and restricted cash | $ | 36.6 | $ | 43.1 | ||||||||||||
| Marketable securities | 0.1 | 1.0 | ||||||||||||||
| Investments | 40.0 | 113.2 | ||||||||||||||
| Working capital | 217.3 | 251.3 | ||||||||||||||
| Total stockholders’ equity | 155.8 | 87.1 | ||||||||||||||
FAQ
What was Dave's (DAVE) revenue growth in Q3 2024?
Did Dave (DAVE) achieve profitability in Q3 2024?
What is Dave's (DAVE) updated revenue guidance for 2024?
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