Dave Inc. (the “Company”) (Nasdaq: DAVE), one of the nation’s
leading neobanks, today reported its financial results for the
second quarter ended June 30, 2023.
“We continued to execute on our objectives and delivered another
strong quarter,” said Jason Wilk, Founder & Chief Executive
Officer of Dave. “We generated solid revenue growth, sustained
improvement to variable margin, and made progress against our
strategy to deepen customer relationships as Dave Card debit spend
and transactions per MTM both reached all-time highs. Q2 was our
fourth consecutive quarter of greater than 30% year over year
revenue growth, despite reducing marketing spend by 28%.”
“Demand for our products remains strong, and we continue to
deliver more member value through ongoing product development while
improving on our already robust unit economics. These trends
support our conviction in turning Adjusted EBITDA profitable in
2024, while maintaining ample liquidity without the need to raise
additional equity capital.”
Quarterly Financial Highlights ($ in
millions)
|
2Q22 |
3Q22 |
4Q22 |
1Q23 |
2Q23 |
GAAP Operating Revenues, Net% Change vs. prior
year period |
$45.823% |
$56.841% |
$59.645% |
$58.938% |
$61.234% |
Non-GAAP Operating Revenues*% Change vs. prior
year period |
$47.022% |
$58.641% |
$61.846% |
$60.639% |
$62.433% |
Non-GAAP Variable Profit Margin* |
39% |
42% |
41% |
56% |
53% |
GAAP Net Loss |
($27.1) |
($47.5) |
($21.5) |
($14.0) |
($22.6) |
Adjusted EBITDA (Loss)* |
($28.5) |
($28.5) |
($11.8) |
($4.5) |
($13.1) |
*See reconciliation of the non-GAAP measures at the end of the
press release.
Second Quarter 2023 Operating
Highlights (vs. Q2
2022)
- New Members increased 5% to 739,000 while reducing customer
acquisition cost by ~31%. Excluding $1.4 million of corporate
marketing spend related to a branding refresh, as well as the
development of TV and radio advertising that will air in the third
quarter and onwards, customer acquisition cost declined by
~38%.
- Monthly Transacting Members (“MTMs”) increased 26% to 1.9
million. Transactions per MTM increased 27% to 5.7.
- ExtraCash originations increased 43% to $867 million, while the
28-Day delinquency rate improved 84 basis points to 2.83%.
- Dave Debit Card spend increased 77% to $304 million compared to
$171 million.
- For a full review of the Company’s KPIs, please refer to the
Company’s Q2 2023 Earnings Presentation which can be found
here.
Liquidity Summary
The Company had $178 million of cash and cash equivalents,
marketable securities, short-term investments and restricted cash
as of June 30, 2023. This compares to $196 million as of March 31,
2023. This decrease in available liquidity was driven largely by
growth in ExtraCash receivables funded with existing balance sheet
cash.
2023 Financial Outlook
For fiscal year 2023:
- Dave continues to expect Non-GAAP operating revenue between
$235 million - $260 million, reflecting annual growth of 11% -
23%;
- Dave is raising its Non-GAAP variable profit margin outlook to
47% - 51%, representing a 400 basis point increase from the
Company’s previously issued guidance of 43% - 47%, based on the
sustainability of improvements made to the Company’s variable cost
structure; and
- Dave continues to expect Adjusted EBITDA (Loss) between ($50)
million - ($35) million, improving approximately 43% - 60% from
2022. This includes the impact of a $4 million legal settlement
related to a 2020 data breach that was expensed in Q2 2023.
Dave CFO Kyle Beilman commented: “Q2 results were in-line with
the expectations we set last quarter. Variable profit growth was
more than double our revenue growth given the improvements we’ve
made to our variable cost structure, and we more than halved
Adjusted EBITDA Loss compared to the prior year period. Excluding a
one-time $4 million legal settlement booked during Q2, Adjusted
EBITDA Loss would have improved by nearly 70%. Consistent with the
expectations we set, loss provision normalized from the seasonally
strongest first quarter and we ramped marketing spend to capitalize
on seasonal demand for ExtraCash. Overall, we remain on track to
achieve our full year guidance for the year and turn Adjusted
EBITDA profitable in 2024.”
Conference Call
The Company will host a conference call at 4:30 p.m. Eastern
time on Tuesday, August 8, 2023, to discuss the results for its
second quarter ended June 30, 2023.
Dave management will host the conference call, followed by a
question-and-answer period. The conference call details are as
follows:
Date: Tuesday, August 8, 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, member FDIC. For more information about the
company, visit: www.dave.com. For investor information and updates,
visit: investors.dave.com and follow @davebanking on Twitter.
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, 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 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, 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 direct loan origination costs,
ATM fees, and interchange fees. 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 excluding non-GAAP 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. These non-GAAP
financial measures are not computed according to GAAP and the
methods the Company uses to compute them 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 six months ended June 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 June 30, |
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
Service based revenue, net |
|
$ |
55.0 |
|
|
$ |
43.0 |
|
|
$ |
107.6 |
|
|
$ |
82.3 |
|
Transaction based revenue, net |
|
|
6.2 |
|
|
|
2.8 |
|
|
|
12.6 |
|
|
|
6.1 |
|
Total operating revenues, net |
|
|
61.2 |
|
|
|
45.8 |
|
|
|
120.2 |
|
|
|
88.4 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Provision for credit losses |
|
|
15.9 |
|
|
|
13.9 |
|
|
|
27.9 |
|
|
|
27.6 |
|
Processing and servicing costs |
|
|
7.2 |
|
|
|
7.6 |
|
|
|
14.4 |
|
|
|
14.1 |
|
Advertising and marketing |
|
|
15.0 |
|
|
|
20.8 |
|
|
|
24.5 |
|
|
|
33.0 |
|
Compensation and benefits |
|
|
23.9 |
|
|
|
39.1 |
|
|
|
48.3 |
|
|
|
57.0 |
|
Other operating expenses |
|
|
20.2 |
|
|
|
17.4 |
|
|
|
38.5 |
|
|
|
32.3 |
|
Total operating expenses |
|
|
82.2 |
|
|
|
98.8 |
|
|
|
153.6 |
|
|
|
164.0 |
|
Other expenses (income): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
1.4 |
|
|
|
1.6 |
|
|
|
3.2 |
|
|
|
3.2 |
|
Other strategic financing and transactional expenses |
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
2.8 |
|
Changes in fair value of earnout liabilities |
|
|
— |
|
|
|
(7.6 |
) |
|
|
— |
|
|
|
(9.6 |
) |
Gain on extinguishment of liability |
|
|
— |
|
|
|
(4.3 |
) |
|
|
— |
|
|
|
(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 |
|
|
|
(17.5 |
) |
|
|
— |
|
|
|
(13.5 |
) |
Total other expenses |
|
|
1.6 |
|
|
|
(25.9 |
) |
|
|
3.2 |
|
|
|
(15.8 |
) |
Net
loss before provision for income taxes |
|
|
(22.6 |
) |
|
|
(27.1 |
) |
|
|
(36.6 |
) |
|
|
(59.8 |
) |
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Net
loss |
|
$ |
(22.6 |
) |
|
$ |
(27.1 |
) |
|
$ |
(36.6 |
) |
|
$ |
(59.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE
INC. |
RECONCILIATION OF OPERATING REVENUES, NET TO NON-GAAP
OPERATING REVENUES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Operating revenues, net |
|
$ |
61.2 |
|
|
$ |
45.8 |
|
|
$ |
120.2 |
|
|
$ |
88.4 |
|
ExtraCash origination and ATM-related costs |
|
|
1.2 |
|
|
|
1.2 |
|
|
|
2.9 |
|
|
|
2.3 |
|
Non-GAAP operating revenues |
|
$ |
62.4 |
|
|
$ |
47.0 |
|
|
$ |
123.1 |
|
|
$ |
90.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING
EXPENSES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
$ |
82.2 |
|
|
$ |
98.8 |
|
|
$ |
153.6 |
|
|
$ |
164.0 |
|
Non-variable operating expenses |
|
|
(52.7 |
) |
|
|
(70.3 |
) |
|
|
(97.5 |
) |
|
|
(109.6 |
) |
Non-GAAP variable operating expenses |
|
$ |
29.5 |
|
|
$ |
28.5 |
|
|
$ |
56.1 |
|
|
$ |
54.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF NON-GAAP VARIABLE PROFIT |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating revenues |
|
$ |
62.4 |
|
|
$ |
47.0 |
|
|
$ |
123.1 |
|
|
$ |
90.7 |
|
Non-GAAP variable operating expenses |
|
|
(29.5 |
) |
|
|
(28.5 |
) |
|
|
(56.1 |
) |
|
|
(54.4 |
) |
Non-GAAP variable profit |
|
$ |
32.9 |
|
|
$ |
18.5 |
|
|
$ |
67.0 |
|
|
$ |
36.3 |
|
Non-GAAP variable profit margin |
|
|
53 |
% |
|
|
39 |
% |
|
|
54 |
% |
|
|
40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE
INC. |
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
|
For the Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(22.6 |
) |
|
$ |
(27.1 |
) |
|
$ |
(36.6 |
) |
|
$ |
(59.9 |
) |
Interest expense, net |
|
|
1.4 |
|
|
|
1.6 |
|
|
|
3.2 |
|
|
|
3.2 |
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Depreciation and amortization |
|
|
1.3 |
|
|
|
1.6 |
|
|
|
2.4 |
|
|
|
2.7 |
|
Stock-based compensation |
|
|
6.6 |
|
|
|
22.9 |
|
|
|
13.4 |
|
|
|
26.0 |
|
Other strategic financing and transactional expenses |
|
|
— |
|
|
|
1.9 |
|
|
|
— |
|
|
|
2.8 |
|
Changes in fair value of earnout liabilities |
|
|
— |
|
|
|
(7.6 |
) |
|
|
— |
|
|
|
(9.6 |
) |
Gain on extinguishment of liability |
|
|
— |
|
|
|
(4.3 |
) |
|
|
— |
|
|
|
(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 |
|
|
|
(17.5 |
) |
|
|
— |
|
|
|
(13.5 |
) |
Adjusted EBITDA |
|
$ |
(13.1 |
) |
|
$ |
(28.5 |
) |
|
$ |
(17.6 |
) |
|
$ |
(46.9 |
) |
|
|
|
|
|
|
|
|
|
DAVE
INC. |
LIQUIDITY
AND CAPITAL RESOURCES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
June
30, |
|
December
31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash |
|
$ |
50.1 |
|
|
$ |
23.7 |
|
Marketable
securities |
|
|
3.2 |
|
|
|
0.3 |
|
Short-term
investments |
|
|
125.1 |
|
|
|
168.8 |
|
Working
capital |
|
|
249.1 |
|
|
|
272.2 |
|
Total
stockholders’ equity |
|
|
84.1 |
|
|
|
106.6 |
|
Grafico Azioni Dave (NASDAQ:DAVE)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Dave (NASDAQ:DAVE)
Storico
Da Set 2023 a Set 2024