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, 2023.
“Last year we made the commitment to grow our way to
profitability by focusing on expanding member lifetime value,
increasing variable margins, and making disciplined investments in
marketing, while driving operating leverage from our scalable cost
structure,” said Jason Wilk, Founder and CEO of Dave. “Our Q3
results underscore the substantial progress we’ve made towards
those objectives. The combination of another quarter of
double-digit year-over-year revenue growth and 1,000+ basis points
of variable margin expansion enabled us to grow variable profit by
over 50% and reduce Adjusted EBITDA loss by over 90%
year-over-year, approaching break-even.
“Our positive outlook for growth, combined with the sustainable
improvements we’ve made to our business model, has us tracking well
to achieve the critical milestone of turning Adjusted EBITDA
profitable in the fourth quarter of this year, well ahead of
expectations.”
Quarterly Financial Highlights ($ in
millions)
|
3Q22 |
4Q22 |
1Q23 |
2Q23 |
3Q23 |
GAAP Operating Revenues, Net |
$56.8 |
$59.6 |
$58.9 |
$61.2 |
$65.8 |
% Change vs. prior year period |
41% |
45% |
38% |
34% |
16% |
Non-GAAP Operating Revenues* |
$58.6 |
$61.8 |
$60.6 |
$62.4 |
$67.3 |
% Change vs. prior year period |
41% |
46% |
39% |
33% |
15% |
Non-GAAP Variable Profit* |
$24.7% |
$25.5% |
$34.0% |
$32.9% |
$37.3% |
% Change vs. prior year period |
24% |
26% |
91% |
78% |
51% |
Non-GAAP Variable Profit Margin* |
42% |
41% |
56% |
53% |
55% |
GAAP Net Loss |
($47.5) |
($21.5) |
($14.0) |
($22.6) |
($12.1) |
Adjusted EBITDA (Loss)* |
($27.5) |
($12.8) |
($4.5) |
($13.1) |
($2.5) |
*Non-GAAP measures. See reconciliation of the non-GAAP measures
at the end of the press release.
Third Quarter 2023 Operating
Highlights (vs. Q3
2022)
- New Members totaled 821,000 while customer acquisition cost
decreased by 30%
- Monthly Transacting Members (“MTMs”) increased 6% to 1.9
million. Transactions per MTM increased 39% to 6.4
- ExtraCash originations increased 23% to $932 million, while the
28-Day delinquency rate improved 165 basis points to 2.42%
- Dave Debit Card spend increased 73% to $341 million compared to
$197 million
- For a full review of the Company’s KPIs, please refer to the
Company’s Q3 2023 Earnings Presentation which can be found
here
Liquidity Summary
The Company had $171 million of cash and cash equivalents,
marketable securities, short-term investments and restricted cash
as of September 30, 2023. Additionally, the Company had $10 million
of undrawn capacity on its recently amended credit facility,
bringing Dave’s total liquidity to $181 million at September 30,
2023.
Raising 2023 Financial Guidance
($MM) |
Prior FY 2023 |
New FY 2023 |
Non-GAAP Revenue* |
$235 - $260 |
$257 - $261 |
Year-Over-Year Growth |
11% - 23% |
22% - 24% |
Non-GAAP Variable Profit Margin* |
47% - 51% |
53% - 54% |
Year-Over-Year Improvement |
600bps - 1,000bps |
1,200 - 1,300bps |
Adjusted EBITDA* |
($50) - ($35) |
($22) - ($17) |
Year-Over-Year Improvement |
43% - 60% |
75% - 80% |
*Non-GAAP measures. See reconciliation of the non-GAAP measures
at the end of the press release.
Dave CFO Kyle Beilman commented: “Our Q3 results demonstrate our
commitment to profitable growth, as we achieved significant
improvements across key financial and operational metrics. Our
origination volumes grew substantially and are approaching $1
billion per quarter. Meanwhile, our delinquency rates improved to
the lowest level in our Company’s history despite the challenging
economic backdrop for consumers, further demonstrating our
differentiated risk management capabilities. Lastly, we made
progress on our strategic objective of deepening member
relationships through Dave Card engagement, with total Dave Card
spend volumes and average transactions per MTM each increasing by
over 12% sequentially.
“During the quarter, we finalized an amendment to our credit
facility which provides more leverage, capacity, and term at a
lower cost despite tighter capital markets conditions. This
amendment is a direct reflection of our lender’s confidence in
Dave’s unit economics and the strength of our business moving
forward.”
Conference Call
The Company will host a conference call at 4:30 p.m. Eastern
time on Tuesday, November 7, 2023, to discuss the results for its
third quarter ended September 30, 2023, followed by a
question-and-answer period. The conference call details are as
follows:
Date: Tuesday, November 7, 2023Time: 4:30 p.m. Eastern
timeDial-in registration link: hereLive 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 “feel,” “believes,” expects,”
“estimates,” “projects,” “intends,” “should,” “is to be,” or the
negative of such terms, or other comparable terminology and
include, among other things, the quotations of our Chief Executive
Officer and Chief Financial Officer relating to Dave’s future
performance and growth, fiscal year 2023 guidance, projected
financial results for future periods, expected timing of meeting
Adjusted EBITDA profitability, 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 its growth as a public company; disruptions to
Dave’s operations as a result of becoming a public company; the
ability of Dave to remediate material weaknesses in Dave’s internal
controls over financial reporting and maintain an effective system
of internal control over financial reporting; the ability of Dave
to protect intellectual property and trade secrets; 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; the possibility that Dave may be adversely affected by
other economic, business, and/or competitive factors; and those
factors discussed in Dave’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission (the “SEC”) on March 13,
2023 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,
non-GAAP operating revenues, 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 as net
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
operating revenues as operating revenues, net excluding ExtraCash
origination costs, ATM fees, interchange fees, and member interest.
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 non-GAAP
operating revenues 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 non-GAAP operating
revenues.
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, 2023 and
2022.
Certain Other Terms
Dave defines Net 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, net of the number of accounts deleted by Members or closed
by the Company in the same period. 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. Transactions Per Monthly Transacting Member
measures the average number of transactions initiated per Monthly
Transacting Member in each month, measured as the average over a
given period.
Investor Relations Contact
Sean Mansouri, CFAElevate IRDAVE@elevate-ir.com
Media Contact
Kira Sarkisianpress@dave.com
|
|
|
|
|
|
|
|
|
DAVE
INC. |
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
Service based revenue, net |
|
$ |
59.2 |
|
|
$ |
52.8 |
|
|
$ |
166.7 |
|
|
$ |
135.1 |
|
Transaction based revenue, net |
|
|
6.6 |
|
|
|
4.0 |
|
|
|
19.3 |
|
|
|
10.1 |
|
Total operating revenues, net |
|
|
65.8 |
|
|
|
56.8 |
|
|
|
186.0 |
|
|
|
145.2 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
16.0 |
|
|
|
18.4 |
|
|
|
43.9 |
|
|
|
46.0 |
|
Processing and servicing costs |
|
|
7.1 |
|
|
|
9.5 |
|
|
|
21.4 |
|
|
|
23.6 |
|
Advertising and marketing |
|
|
13.9 |
|
|
|
24.1 |
|
|
|
38.4 |
|
|
|
57.1 |
|
Compensation and benefits |
|
|
23.1 |
|
|
|
24.3 |
|
|
|
71.4 |
|
|
|
81.3 |
|
Other operating expenses |
|
|
16.3 |
|
|
|
18.4 |
|
|
|
54.8 |
|
|
|
50.8 |
|
Total operating expenses |
|
|
76.4 |
|
|
|
94.7 |
|
|
|
229.9 |
|
|
|
258.8 |
|
Other (income) expenses: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
1.7 |
|
|
|
1.3 |
|
|
|
5.0 |
|
|
|
4.4 |
|
Legal settlement and litigation expenses |
|
|
— |
|
|
|
6.8 |
|
|
|
— |
|
|
|
6.8 |
|
Other strategic financing and transactional expenses |
|
|
— |
|
|
|
2.2 |
|
|
|
— |
|
|
|
5.0 |
|
Changes in fair value of earnout liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9.6 |
) |
Gain on extinguishment of liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.3 |
) |
Changes in fair value of derivative asset on loans to
stockholders |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.6 |
|
Changes in fair value of public and private warrant
liabilities |
|
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
(0.2 |
) |
|
|
(14.2 |
) |
Total other expense (income), net |
|
|
1.5 |
|
|
|
9.6 |
|
|
|
4.8 |
|
|
|
(6.3 |
) |
Net loss before provision for income taxes |
|
|
(12.1 |
) |
|
|
(47.5 |
) |
|
|
(48.7 |
) |
|
|
(107.3 |
) |
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Net loss |
|
$ |
(12.1 |
) |
|
$ |
(47.5 |
) |
|
$ |
(48.7 |
) |
|
$ |
(107.4 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE
INC. |
RECONCILIATION OF OPERATING REVENUES, NET TO NON-GAAP
OPERATING REVENUES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Operating revenues, net |
|
$ |
65.8 |
|
|
$ |
56.8 |
|
|
$ |
186.0 |
|
|
$ |
145.2 |
|
ExtraCash origination and ATM-related costs |
|
|
1.5 |
|
|
|
1.8 |
|
|
|
4.4 |
|
|
|
4.1 |
|
Non-GAAP operating revenues |
|
$ |
67.3 |
|
|
$ |
58.6 |
|
|
$ |
190.4 |
|
|
$ |
149.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING
EXPENSES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
$ |
76.4 |
|
|
$ |
94.7 |
|
|
$ |
229.9 |
|
|
$ |
258.8 |
|
Non-variable operating expenses |
|
|
(46.4 |
) |
|
|
(60.8 |
) |
|
|
(143.8 |
) |
|
|
(171.3 |
) |
Non-GAAP variable operating expenses |
|
$ |
30.0 |
|
|
$ |
33.9 |
|
|
$ |
86.1 |
|
|
$ |
87.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF NON-GAAP VARIABLE PROFIT |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Non-GAAP operating revenues |
|
$ |
67.3 |
|
|
$ |
58.6 |
|
|
$ |
190.4 |
|
|
$ |
149.3 |
|
Non-GAAP variable operating expenses |
|
|
(30.0 |
) |
|
|
(33.9 |
) |
|
|
(86.1 |
) |
|
|
(87.5 |
) |
Non-GAAP variable profit |
|
$ |
37.3 |
|
|
$ |
24.7 |
|
|
$ |
104.3 |
|
|
$ |
61.8 |
|
Non-GAAP variable profit margin |
|
|
55 |
% |
|
|
42 |
% |
|
|
55 |
% |
|
|
41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE
INC. |
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(12.1 |
) |
|
$ |
(47.5 |
) |
|
$ |
(48.7 |
) |
|
$ |
(107.4 |
) |
Interest expense, net |
|
|
1.7 |
|
|
|
1.3 |
|
|
|
5.0 |
|
|
|
4.4 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Depreciation and amortization |
|
|
1.4 |
|
|
|
2.4 |
|
|
|
3.7 |
|
|
|
5.1 |
|
Stock-based compensation |
|
|
6.7 |
|
|
|
8.0 |
|
|
|
20.1 |
|
|
|
34.1 |
|
Legal settlement and litigation expenses |
|
|
— |
|
|
|
6.8 |
|
|
|
— |
|
|
|
6.8 |
|
Other strategic financing and transactional expenses |
|
|
— |
|
|
|
2.2 |
|
|
|
— |
|
|
|
5.0 |
|
Changes in fair value of earnout liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(9.6 |
) |
Gain on extinguishment of liability |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4.3 |
) |
Changes in fair value of derivative asset on loans to
stockholders |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5.6 |
|
Changes in fair value of public and private warrant
liabilities |
|
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
(0.2 |
) |
|
|
(14.2 |
) |
Adjusted EBITDA |
|
$ |
(2.5 |
) |
|
$ |
(27.5 |
) |
|
$ |
(20.1 |
) |
|
$ |
(74.4 |
) |
|
|
|
|
|
DAVE
INC. |
LIQUIDITY
AND CAPITAL RESOURCES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
September
30, |
|
December
31, |
|
|
2023 |
|
2022 |
|
|
|
|
|
Cash, cash equivalents and restricted cash |
|
$ |
44.8 |
|
|
$ |
23.7 |
|
Marketable securities |
|
|
1.6 |
|
|
|
0.3 |
|
Short-term investments |
|
|
124.6 |
|
|
|
168.8 |
|
Working capital |
|
|
243.5 |
|
|
|
272.2 |
|
Total stockholders’ equity |
|
|
79.2 |
|
|
|
106.6 |
|
Dave (NASDAQ:DAVE)
과거 데이터 주식 차트
부터 8월(8) 2024 으로 9월(9) 2024
Dave (NASDAQ:DAVE)
과거 데이터 주식 차트
부터 9월(9) 2023 으로 9월(9) 2024