Q2 GAAP Revenue up 34% Year Over Year to
Q2 Net Loss Improves by 17% Year Over Year; Adj. EBITDA Loss Improves 54% to
Raising Non-GAAP Variable Profit Margin Outlook to 47% - 51%; Reiterating 2023 Non-GAAP Operating Revenue and Adjusted EBITDA Guidance
“We continued to execute on our objectives and delivered another strong quarter,” said
“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 | $45.8 23% | $56.8 41% | $59.6 45% | $58.9 38% | $61.2 34% | ||||||||||
Non-GAAP Operating Revenues* % Change vs. prior year period | $47.0 22% | $58.6 41% | $61.8 46% | $60.6 39% | $62.4 33% | ||||||||||
Non-GAAP Variable Profit Margin* | 39% | 42% | 41% | 56% | 53% | ||||||||||
GAAP Net Loss | ( | ( | ( | ( | ( | ||||||||||
Adjusted EBITDA (Loss)* | ( | ( | ( | ( | ( |
*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
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
Conference Call
The Company will host a conference call at
Dave management will host the conference call, followed by a question-and-answer period. The conference call details are as follows:
Date:
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
Forward-Looking Statements
This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the
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
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
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
Elevate IR
DAVE@elevate-ir.com
Media Contact
press@dave.com
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(in millions) | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
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 | ) | ||||
RECONCILIATION OF OPERATING REVENUES, NET TO NON-GAAP OPERATING REVENUES | ||||||||||||||||
(in millions) | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
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 | For the Six Months Ended | |||||||||||||||
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 | For the Six Months Ended | |||||||||||||||
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 | % | ||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | ||||||||||||||||
(in millions) | ||||||||||||||||
(unaudited) | ||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
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 | ) | ||||
LIQUIDITY AND CAPITAL RESOURCES | ||||||||
(in millions) | ||||||||
(unaudited) | ||||||||
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 |
Source:
2023 GlobeNewswire, Inc., source