Dave Inc. (the “Company”) (Nasdaq: DAVE, DAVEW), one of the leading
U.S. neobanks, today reported its financial results for the fourth
quarter and full year ended December 31, 2022.
“We generated record top-line results during the quarter,
achieved both our revenue and margin targets for the year, and
significantly reduced losses as we exited 2022,” said Jason Wilk,
founder and Chief Executive Officer of Dave. “During the fourth
quarter, we reduced our customer acquisition cost by 31% and added
543,000 net new members, which, in conjunction with continued
improvement in retention, further increased monthly transacting
members to nearly 2 million. We saw a continued acceleration in our
Dave Card business with quarterly debit spend volume growing over
50% vs. Q4 2021. We believe we are well-positioned to execute on
our business plan in 2023 and deliver another year of strong,
efficient revenue growth with improved profitability.”
Quarterly Financial Highlights ($ in millions
unless otherwise noted)
|
4Q21 |
1Q22 |
2Q22 |
3Q22 |
4Q22 |
GAAP Operating Revenues, Net% Change vs. prior
year period |
$41.216% |
$42.624% |
$45.823% |
$56.841% |
$59.645% |
Non-GAAP Operating Revenues*% Change vs. prior
year period |
$42.216% |
$43.723% |
$47.022% |
$58.641% |
$61.846% |
Non-GAAP Variable Profit Margin* |
48% |
41% |
39% |
42% |
41% |
GAAP Net Loss |
($15.2) |
($32.8) |
($27.1) |
($47.5) |
($21.5) |
Adjusted EBITDA (Loss)* |
($12.6) |
($18.3) |
($28.5) |
($28.5) |
($11.8) |
*See reconciliation of the non-GAAP measures at the end of the
press release.
Fourth Quarter 2022 Operating Highlights (vs. Q3
2022)
- Added 543,000 Net New Members while reducing customer
acquisition cost by 31%. Total members increased 7% to 8.3
million.
- Monthly Transacting Members (“MTMs”) increased 4% to 1.9
million. Transactions per MTM increased 12% to 5.2.
- ExtraCash originations increased 6% to $801 million while the
28-Day delinquency rate improved 49 basis points to 3.58%.
- Dave Debit Card spend increased 34% to $263 million compared to
$197 million.
Annual Financial Highlights ($ in millions
unless otherwise noted)
|
FY 2021 |
FY 2022 |
GAAP Operating Revenues, Net% Change vs. prior
year |
$153.026% |
$204.834% |
Non-GAAP Operating Revenues*% Change vs. prior
year |
$157.626% |
$211.134% |
Non-GAAP Variable Profit Margin* |
53% |
41% |
GAAP Net Loss |
($20.0) |
($128.9) |
Adjusted EBITDA (Loss)* |
($36.5) |
($87.1) |
*See reconciliation of the non-GAAP measures at the end of the
press release.
Liquidity Summary
The Company had $193 million of cash and cash equivalents,
restricted cash, marketable securities, and short-term investments
as of December 31, 2022.
2023 Financial Outlook
For fiscal 2023, the Company expects the following:
- Non-GAAP operating revenue between $235 million - $260 million,
reflecting annual growth of 11% - 23%;
- Non-GAAP variable margin to expand to 43% - 47%, representing
approximately 200 bps - 600 bps improvement from 2022; and
- Adjusted EBITDA (Loss) between ($50) million - ($35) million,
improving approximately 43% - 60% from 2022.
Dave CFO Kyle Beilman commented: “Our 2023 targets reflect our
expectation for continued double-digit revenue growth with variable
margin expansion, while significantly reducing losses. Moreover, we
expect our fixed expense base to deliver substantial operating
leverage as we believe the investments we made in our product
development team are sufficient for us to execute on our business
plan. Looking ahead, we plan to continue executing on our growth
and profitability objectives in 2023. We are reiterating our
expected timeline of turning adjusted EBITDA positive in 2024
without the need to raise additional equity capital.”
Conference Call
The Company will host a conference call at 5:00 p.m. Eastern
time on Monday, March 6, 2023, to discuss the results for its
fourth quarter and full year ended December 31, 2022.
Dave management will host the conference call, followed by a
question-and-answer period. The conference call details are as
follows:
Date: Monday, March 6, 2023Time: 5:00 p.m. Eastern timeDial-in
number: (877) 407-0789Live 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 is one of the nation’s leading neobanks on a mission to
build products that level the financial playing field. Dave’s
financial tools, including its debit card and spending account,
help millions of customers bank, budget, avoid overdraft fees and
find work. For more information, visit www.dave.com.
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 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 effects of the
COVID-19 pandemic on Dave’s business; 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 25, 2022 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 facilitates an alternative
comparison amongst 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 twelve months ended December 31, 2022
and 2021.
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 ContactKira Sarkisianpress@dave.com
DAVE
INC. |
CONSOLIDATED
STATEMENTS OF OPERATIONS |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months EndedDecember 31, |
|
For the Year EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
Service based revenue, net |
|
$ |
53.8 |
|
|
$ |
38.0 |
|
|
$ |
188.9 |
|
|
$ |
142.2 |
|
Transaction based revenue, net |
|
|
5.8 |
|
|
|
3.2 |
|
|
|
15.9 |
|
|
|
10.8 |
|
Total operating revenues, net |
|
|
59.6 |
|
|
|
41.2 |
|
|
|
204.8 |
|
|
|
153.0 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Provision for unrecoverable advances |
|
|
20.3 |
|
|
|
10.5 |
|
|
|
66.3 |
|
|
|
32.2 |
|
Processing and servicing costs |
|
|
8.3 |
|
|
|
6.5 |
|
|
|
31.9 |
|
|
|
23.5 |
|
Advertising and marketing |
|
|
11.9 |
|
|
|
12.6 |
|
|
|
69.0 |
|
|
|
51.5 |
|
Compensation and benefits |
|
|
22.1 |
|
|
|
14.9 |
|
|
|
103.4 |
|
|
|
49.5 |
|
Other operating expenses |
|
|
16.9 |
|
|
|
11.3 |
|
|
|
68.6 |
|
|
|
43.2 |
|
Total operating expenses |
|
|
79.5 |
|
|
|
55.8 |
|
|
|
339.2 |
|
|
|
199.9 |
|
Other expenses (income): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
1.8 |
|
|
|
1.4 |
|
|
|
6.2 |
|
|
|
2.2 |
|
Legal settlement and litigation expenses |
|
|
0.1 |
|
|
|
0.7 |
|
|
|
6.3 |
|
|
|
1.7 |
|
Other strategic financing and transactional expenses |
|
|
(0.2 |
) |
|
|
— |
|
|
|
4.6 |
|
|
|
0.3 |
|
Gain on extinguishment of liability |
|
|
— |
|
|
|
— |
|
|
|
(4.3 |
) |
|
|
— |
|
Changes in fair value of earnout liabilities |
|
|
— |
|
|
|
— |
|
|
|
(9.6 |
) |
|
|
— |
|
Changes in fair value of derivative asset on loans to
stockholders |
|
|
— |
|
|
|
(1.7 |
) |
|
|
5.6 |
|
|
|
(34.8 |
) |
Changes in fair value of warrant liabilities |
|
|
— |
|
|
|
0.1 |
|
|
|
(14.2 |
) |
|
|
3.6 |
|
Total other expense (income) |
|
|
1.7 |
|
|
|
0.5 |
|
|
|
(5.4 |
) |
|
|
(27.0 |
) |
Net
loss before (benefit from) provision for income taxes |
|
|
(21.6 |
) |
|
|
(15.1 |
) |
|
|
(129.0 |
) |
|
|
(19.9 |
) |
(Benefit from) provision for income taxes |
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
Net
loss |
|
$ |
(21.5 |
) |
|
$ |
(15.2 |
) |
|
$ |
(128.9 |
) |
|
$ |
(20.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE
INC. |
RECONCILIATION OF OPERATING REVENUES, NET TO NON-GAAP
OPERATING REVENUES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
For the Three Months EndedDecember 31, |
|
For the Year EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Operating revenues, net |
|
$ |
59.6 |
|
|
$ |
41.2 |
|
|
$ |
204.8 |
|
|
$ |
153.0 |
|
ExtraCash origination and ATM-related costs |
|
|
2.2 |
|
|
|
1.0 |
|
|
|
6.3 |
|
|
|
4.6 |
|
Non-GAAP operating revenues |
|
$ |
61.8 |
|
|
$ |
42.2 |
|
|
$ |
211.1 |
|
|
$ |
157.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING
EXPENSES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
For the Three Months EndedDecember 31, |
|
For the Year EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
$ |
79.5 |
|
|
$ |
55.8 |
|
|
$ |
339.2 |
|
|
$ |
199.9 |
|
Non-variable operating expenses |
|
|
(43.2 |
) |
|
|
(33.8 |
) |
|
|
(213.6 |
) |
|
|
(126.3 |
) |
Non-GAAP variable operating expenses |
|
$ |
36.3 |
|
|
$ |
22.0 |
|
|
$ |
125.6 |
|
|
$ |
73.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF NON-GAAP VARIABLE PROFIT |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
For the Three Months EndedDecember 31, |
|
For the Year EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating revenues |
|
$ |
61.8 |
|
|
$ |
42.2 |
|
|
$ |
211.1 |
|
|
$ |
157.6 |
|
Non-GAAP variable operating expenses |
|
|
(36.3 |
) |
|
|
(22.0 |
) |
|
|
(125.6 |
) |
|
|
(73.6 |
) |
Non-GAAP variable profit |
|
$ |
25.5 |
|
|
$ |
20.2 |
|
|
$ |
85.5 |
|
|
$ |
84.0 |
|
Non-GAAP variable profit margin |
|
|
41 |
% |
|
|
48 |
% |
|
|
41 |
% |
|
|
53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE
INC. |
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
For the Three Months EndedDecember 31, |
|
For the Year EndedDecember 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(21.5 |
) |
|
$ |
(15.2 |
) |
|
$ |
(128.9 |
) |
|
$ |
(20.0 |
) |
Interest expense, net |
|
|
1.8 |
|
|
|
1.4 |
|
|
|
6.2 |
|
|
|
2.2 |
|
(Benefit from) provision for income taxes |
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
Depreciation and amortization |
|
|
1.5 |
|
|
|
1.0 |
|
|
|
6.7 |
|
|
|
3.0 |
|
Stock-based compensation |
|
|
6.6 |
|
|
|
1.0 |
|
|
|
40.6 |
|
|
|
7.4 |
|
Legal settlement and litigation expenses |
|
|
0.1 |
|
|
|
0.7 |
|
|
|
6.3 |
|
|
|
1.7 |
|
Other strategic financing and transactional expenses |
|
|
(0.2 |
) |
|
|
— |
|
|
|
4.6 |
|
|
|
0.3 |
|
Gain on extinguishment of liability |
|
|
— |
|
|
|
— |
|
|
|
(4.3 |
) |
|
|
— |
|
Changes in fair value of earnout liabilities |
|
|
— |
|
|
|
— |
|
|
|
(9.6 |
) |
|
|
— |
|
Changes in fair value of derivative asset on loans to
stockholders |
|
|
— |
|
|
|
(1.7 |
) |
|
|
5.6 |
|
|
|
(34.8 |
) |
Changes in fair value of warrant liabilities |
|
|
— |
|
|
|
0.1 |
|
|
|
(14.2 |
) |
|
|
3.6 |
|
Adjusted EBITDA |
|
$ |
(11.8 |
) |
|
$ |
(12.6 |
) |
|
$ |
(87.1 |
) |
|
$ |
(36.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE
INC. |
|
|
|
|
LIQUIDITY
AND CAPITAL RESOURCES |
|
|
|
|
(in millions) |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31, |
|
December
31, |
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash |
|
$ |
23.7 |
|
|
$ |
32.4 |
|
|
|
|
|
Marketable
securities |
|
|
0.3 |
|
|
|
8.2 |
|
|
|
|
|
Short-term
investments |
|
|
168.8 |
|
|
|
— |
|
|
|
|
|
Working
capital |
|
|
272.2 |
|
|
|
31.6 |
|
|
|
|
|
Total
stockholders’ equity |
|
|
106.6 |
|
|
|
38.7 |
|
|
|
|
|
Grafico Azioni Dave (NASDAQ:DAVEW)
Storico
Da Mag 2024 a Giu 2024
Grafico Azioni Dave (NASDAQ:DAVEW)
Storico
Da Giu 2023 a Giu 2024