Revenue growth accelerates in Q4 to drive record Total Revenue
Achieves Profitability with Q4 GAAP Net Income of
Q4 Adjusted EBITDA of
Results outperform guidance across all metrics
"2023 was an extraordinary year for Dave, and our results are a testament to the dedication and hard work of our exceptional team. Focused execution of our growth strategy enabled us to surpass our operational and financial objectives, exceeding our updated annual guidance across all metrics, and achieving profitability much earlier than anticipated," stated
“We are excited to continue building on this momentum with a compelling roadmap for 2024. We see significant opportunities to further enhance our AI-enabled platform and products, and provide even greater value to our members who commit to direct deposit with the Dave Card. This strategy highlights our commitment to member and business win-wins and positions us well to deliver strong growth and be solidly profitable for the year.”
Quarterly Financial Highlights ($ in millions, unaudited)
4Q22 | 1Q23 | 2Q23 | 3Q23 | 4Q23 | |
GAAP Operating Revenues, Net % Change vs. prior year period | 45% | 38% | 34% | 16% | 23% |
Non-GAAP Operating Revenues* % Change vs. prior year period | 46% | 39% | 33% | 15% | 21% |
Non-GAAP Variable Profit* % Change vs. prior year period | 26% | 91% | 78% | 51% | 80% |
Non-GAAP Variable Profit Margin* | 41% | 56% | 53% | 55% | 61% |
GAAP Net Income (Loss) | ( | ( | ( | ( | |
Adjusted EBITDA (Loss)* | ( | ( | ( | ( |
*Non-GAAP measures. See reconciliation of the non-GAAP measures at the end of the press release.
Fourth Quarter 2023 Operating Highlights (vs. Q4 2022)
- New Members totaled 683,000 while customer acquisition costs decreased by 12%
- Monthly Transacting Members (“MTMs”) increased 11% to 2.1 million. Transactions per MTM increased 24% to 6.4
- ExtraCash originations increased 29% to
$1.0 billion , while the average 28-Day delinquency rate improved 139 basis points to 2.19% - Dave Debit Card spend increased 41% to
$369 million - For a full review of the Company’s key performance indicators, please refer to the Company’s Fourth Quarter 2023 Earnings Presentation which can be found here
Annual Financial Highlights ($ in millions, unaudited)
FY 2022 | FY 2023 | |
GAAP Operating Revenues, Net % Change vs. prior year | 34% | 26% |
Non-GAAP Operating Revenues* % Change vs. prior year | 34% | 26% |
Non-GAAP Variable Profit* % Change vs. prior year | 3% | 74% |
Non-GAAP Variable Profit Margin* | 41% | 57% |
GAAP Net Loss | ( | ( |
Adjusted EBITDA (Loss)* | ( | ( |
*Non-GAAP measures. See reconciliation of the non-GAAP measures at the end of the press release.
Liquidity Summary
The Company had
Subsequent to year-end, the Company announced the repurchase of a convertible note (the “Note”) that it issued to
2024 Financial Guidance ($ in millions)
FY 2024 | |
GAAP Operating Revenues, Net Year-Over-Year Growth | 18% - 25% |
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 CFO
“Confidence in our outlook underpinned our decision to repurchase the FTX convertible note which was a highly compelling capital allocation opportunity for Dave. After accounting for the note repurchase payment, our balance sheet remains strong and we believe we have ample liquidity to execute our growth plans moving forward.”
Conference Call
The Company will host a conference call at
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 non-GAAP financial measures that 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. 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 twelve 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
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(in millions) | |||||||||||||||||
(unaudited) | |||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||||||
Operating revenues: | |||||||||||||||||
Service based revenue, net | $ | 65.4 | $ | 53.8 | $ | 232.2 | $ | 188.9 | |||||||||
Transaction based revenue, net | 7.8 | 5.8 | 26.9 | 15.9 | |||||||||||||
Total operating revenues, net | 73.2 | 59.6 | 259.1 | 204.8 | |||||||||||||
Operating expenses: | |||||||||||||||||
Provision for credit losses | 14.5 | 20.2 | 58.4 | 66.3 | |||||||||||||
Processing and servicing costs | 7.5 | 8.3 | 28.9 | 31.9 | |||||||||||||
Advertising and marketing | 10.0 | 11.9 | 48.4 | 69.0 | |||||||||||||
Compensation and benefits | 23.5 | 22.1 | 94.9 | 103.4 | |||||||||||||
Other operating expenses | 15.8 | 18.0 | 70.7 | 68.6 | |||||||||||||
Total operating expenses | 71.3 | 80.5 | 301.3 | 339.2 | |||||||||||||
Other (income) expenses: | |||||||||||||||||
Interest expense, net | 1.8 | 1.8 | 6.5 | 6.2 | |||||||||||||
Legal settlement and litigation expenses | — | (0.5 | ) | — | 6.3 | ||||||||||||
Other strategic financing and transactional expenses | — | (0.5 | ) | — | 4.6 | ||||||||||||
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 | — | — | — | 5.6 | |||||||||||||
Changes in fair value of public and private warrant liabilities | (0.2 | ) | (0.1 | ) | (0.3 | ) | (14.2 | ) | |||||||||
Total other expense (income), net | 1.6 | 0.7 | 6.2 | (5.4 | ) | ||||||||||||
Net loss before provision for (benefit from) income taxes | 0.3 | (21.6 | ) | (48.4 | ) | (129.0 | ) | ||||||||||
Provision for (benefit from) income taxes | 0.1 | (0.1 | ) | 0.1 | (0.1 | ) | |||||||||||
Net income (loss) | $ | 0.2 | $ | (21.5 | ) | $ | (48.5 | ) | $ | (128.9 | ) | ||||||
RECONCILIATION OF OPERATING REVENUES, NET TO NON-GAAP OPERATING REVENUES | |||||||||||||||||
(in millions) | |||||||||||||||||
(unaudited) | |||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Operating revenues, net | $ | 73.2 | $ | 59.6 | $ | 259.1 | $ | 204.8 | |||||||||
ExtraCash origination and ATM-related costs | 1.6 | 2.2 | 6.0 | 6.3 | |||||||||||||
Non-GAAP operating revenues | $ | 74.8 | $ | 61.8 | $ | 265.1 | $ | 211.1 | |||||||||
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING EXPENSES | |||||||||||||||||
(in millions) | |||||||||||||||||
(unaudited) | |||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Operating expenses | $ | 71.3 | $ | 80.5 | $ | 301.3 | $ | 339.2 | |||||||||
Non-variable operating expenses | (42.4 | ) | (44.2 | ) | (186.3 | ) | (214.6 | ) | |||||||||
Non-GAAP variable operating expenses | $ | 28.9 | $ | 36.3 | $ | 115.0 | $ | 124.6 | |||||||||
CALCULATION OF NON-GAAP VARIABLE PROFIT | |||||||||||||||||
(in millions) | |||||||||||||||||
(unaudited) | |||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Non-GAAP operating revenues | $ | 74.8 | $ | 61.8 | $ | 265.1 | $ | 211.1 | |||||||||
Non-GAAP variable operating expenses | (28.9 | ) | (36.3 | ) | (115.0 | ) | (124.6 | ) | |||||||||
Non-GAAP variable profit | $ | 45.9 | $ | 25.5 | $ | 150.1 | $ | 86.5 | |||||||||
Non-GAAP variable profit margin | 61% | 41% | 57% | 41% | |||||||||||||
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA | |||||||||||||||||
(in millions) | |||||||||||||||||
(unaudited) | |||||||||||||||||
For the Three Months Ended | For the Year Ended | ||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||
Net income (loss) | $ | 0.2 | $ | (21.5 | ) | $ | (48.5 | ) | $ | (128.9 | ) | ||||||
Interest expense, net | 1.8 | 1.8 | 6.5 | 6.2 | |||||||||||||
Provision for (benefit from) income taxes | 0.1 | (0.1 | ) | 0.1 | (0.1 | ) | |||||||||||
Depreciation and amortization | 1.5 | 1.5 | 5.4 | 6.6 | |||||||||||||
Stock-based compensation | 6.6 | 6.6 | 26.7 | 40.7 | |||||||||||||
Legal settlement and litigation expenses | — | (0.5 | ) | — | 6.3 | ||||||||||||
Other strategic financing and transactional expenses | — | (0.5 | ) | — | 4.6 | ||||||||||||
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 | — | — | — | 5.6 | |||||||||||||
Changes in fair value of public and private warrant liabilities | (0.2 | ) | (0.1 | ) | (0.3 | ) | (14.2 | ) | |||||||||
Adjusted EBITDA | $ | 10.0 | $ | (12.8 | ) | $ | (10.1 | ) | $ | (87.1 | ) | ||||||
LIQUIDITY AND CAPITAL RESOURCES | |||||||||||||||||
(in millions) | |||||||||||||||||
(unaudited) | |||||||||||||||||
2023 | 2022 | ||||||||||||||||
Cash, cash equivalents and restricted cash | $ | 43.1 | $ | 23.7 | |||||||||||||
Marketable securities | 1.0 | 0.3 | |||||||||||||||
Investments | 113.2 | 168.8 | |||||||||||||||
Working capital | 251.3 | 272.2 | |||||||||||||||
Total stockholders’ equity | 87.1 | 106.6 | |||||||||||||||
Source:
2024 GlobeNewswire, Inc., source