Dave Inc. · NASDAQ:DAVE

Dave — Q4 2024 Earnings Presentation

42 slides from Dave's earnings presentation, Mar 4, 2025

  1. Slide 1: 4Q 24 Earnings Presentation

    4Q 24 Earnings Presentation March 3, 2025

  2. Slide 2: Disclaimer: Forward-Looking Statements

    Disclaimer REGARDING FORWARD-LOOKING STATEMENTS FORWARD-LOOKING STATEMENTS This presentation of Dave Inc. (“Dave” or the “Company”) includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking s

  3. Slide 3: Disclaimer: Use of Non-GAAP Financial Measures

    Disclaimer USE OF NON-GAAP FINANCIAL MEASURES The financial information and data contained in this presentation is unaudited and does not conform to Regulation S-X promulgated under the Securities Act of 1933, as amended. Accordingly, such information and data may not be included in, may be adjusted

  4. Slide 4: Build a superior banking solution for everyday Americans

    Our strategy Build a superior banking solution for everyday Americans. 4

  5. Slide 5: The majority of Americans are struggling with their finances

    The majority of Americans are struggling with their finances TAM TAM Grew 8% ~180MM Customers(1) (~15MM Customers) since 2021(1) Dec. ‘24 Elevated inflation and interest rates are ● Trouble managing cash flow 2021 causing more Americans to live paycheck to paycheck…(3) ● Minimal to moderate savings 57%

  6. Slide 6: Legacy banks need to charge high fees to everyday consumers

    Legacy banks need to charge high fees to everyday consumers… $300 - $400 Average fees paid per year by financially struggling Americans to legacy banks(2) Overdraft Cost to Access $100(1) $34 $35 $36 $36 $5 Annual bank account maintenance fees(3) $144 $120 $83 $84 $0 Minimum balance to avoid account

  7. Slide 7: Legacy banks' higher cost to serve, inefficient CACs, limited interchange

    …Due to legacy banks’ higher cost to serve, inefficient CACs, and limited interchange revenue Legacy Cost to Serve Comparison(1),(2) CAC Comparison(3) Banks ● Antiquated tech stacks ● Scalable best-in-class Technology e.g. mainframe cloud-native ● Scalable CashAI ● Antiquated models underwriting engi

  8. Slide 8: Differentiated business strategy

    Differentiated business strategy Achieve highly-efficient CAC by addressing members’ most crucial need—Liquidity—and then deepening into long-term banking relationships Acquire Engage Deepen ExtraCash™ provides short-term liquidity to members in lieu of Dave Card offers members a full Acquire efficien

  9. Slide 9: Dave's ExtraCash product overview

    Dave’s ExtraCash™ product overview ExtraCash™ Attribute Benefits to Member Benefits to Dave ● Efficient CAC by quickly addressing ● Bridges gaps between paychecks for $25 - $500 member pain point Size Average: $179 essential expenses, e.g. rent, gas, ● Strategic entry point into banking groceries relat

  10. Slide 10: Dave Card product overview

    Dave Card product overview Dave Card Attribute Benefits to Member Benefits to Dave ● Builds deeper payment relationship ● Members automatically receive Dave Spending Dave Debit Card Checking account with members ● Better member retention ExtraCash™ ● ExtraCash™ instantly available ● Incentivizes cross

  11. Slide 11: Highlights

    Highlights 11

  12. Slide 12: 4Q24 Highlights

    4Q24 Highlights Total Adjusted ExtraCash ™ 28-Day Revenue EBITDA Origination Volume Delinquency Rate Adj. EBITDA Margin expanded ~1,900bps Y-o-Y from 14% to 33% $1,487M $101M $33M 2.19% 53bps $23M 44% Y-o-Y 38% $1,032M Improvement Y-o-Y Y-o-Y Y-o-Y Growth Growth Growth $73M 1.66% $10M 4Q23 4Q24 4Q23

  13. Slide 13: Exceeded 2024 guidance

    Exceeded 2024 guidance ($MM) Original FY Latest Revised FY FY24 Actual Total Revenue: $305 - $325 $340 - $343 $347 Y-o-Y Growth: 18% - 25% 31% - 32% 34% ($MM) Original FY Latest Revised FY FY24 Actual Adjusted EBITDA(1): $25 - $35 $71 - $74 $86 Y-o-Y Improvement: $35 - $45 $81 - $84 $97 13 1) See Gl

  14. Slide 14: Establishing 2025 guidance

    Establishing 2025 guidance ($MM) Low High Total Revenue: $415 $435 Y-o-Y Growth: 20% 25% ($MM) Low High Adjusted EBITDA(1): $110 $120 Y-o-Y Growth: 27% 39% 14 1) See Glossary for the definition of Adjusted EBITDA which is a Non-GAAP measure. The Company does not provide a quantitative reconciliation

  15. Slide 15: Business Strategy

    Business Strategy 15

  16. Slide 16: Business strategy: Acquire, Engage, Deepen

    Business strategy Acquire Engage Deepen ExtraCash™ provides short-term liquidity to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enable

  17. Slide 17: Dave's marketing focuses on the primary need: liquidity

    Dave’s marketing focuses on the primary need of our target segments: liquidity 17

  18. Slide 18: Highly efficient member acquisition at scale

    Highly efficient member CAC and New Member Acquisition (000s) acquisition at scale Member acquisition performance reflects our disciplined focus on new member MTM conversion, existing member retention, and dormant member reactivation. In 4Q24, we acquired 766k new members, a 12% increase YoY based on

  19. Slide 19: Significant member scale

    Significant Total Members (MMs) member scale We differentiate by first addressing members’ most crucial need—liquidity—and then building long-term banking relationships. This formula, bolstered by Dave’s brand strength and acquisition efficiency, has continued to drive substantial growth in our member

  20. Slide 20: Business strategy: Acquire, Engage, Deepen

    Business strategy Acquire Engage Deepen ExtraCash™ provides short-term liquidity to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enable

  21. Slide 21: Solid engagement

    Solid engagement Total Monthly Transacting Members (MMs) Inflection Point MTMs grew 17% YoY as our credit-first value proposition for Adj. EBITDA and banking product suite continued to drive Profitability improvements in new member conversion, existing member retention, and dormant member reactivation.

  22. Slide 22: Sustained growth in originations

    Sustained growth ExtraCash™ Origination Volume ($MM) in originations We originated a record $1.5bn of ExtraCash in Q4. We believe our ability to sustain growth in originations demonstrates the depth and breadth of our TAM as well as our core competency in addressing members’ needs for short-term liq

  23. Slide 23: Average Size and Revenue per ExtraCash

    Average Size and Revenue per ExtraCash™ Average ExtraCash™ Size Average Revenue per ExtraCash™(1) 23 (1) Average Revenue per ExtraCash defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total # of ExtraCash taken over a given period.

  24. Slide 24: Improving credit performance

    Improving credit Quarterly Static Pool Delinquency and Charge-Off Rates(1) performance (2) 4Q24 28 Day Delinquency Rate improved 53bps, or 24%, YoY, while originations grew by 44%; sequentially, delinquency rates improved 12bps. CashAI™ continues to improve its ability to separate credit risk as it

  25. Slide 25: Business strategy: Acquire, Engage, Deepen

    Business strategy Acquire Engage Deepen ExtraCash™ provides short-term liquidity to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enable

  26. Slide 26: ExtraCash incentivizes trialing Dave Card

    ExtraCash incentivizes trialing Dave Card as members have instant access to funds at no additional cost 26

  27. Slide 27: Dave Card spend volumes

    Dave Card Dave Card Spend Volumes ($MM) spend volumes Our Dave Card strategy leverages our market-leading ExtraCash™ value proposition to drive top-of-wallet spending behavior and build longer-term banking relationships with our members. Dave Card spend grew 24% YoY and 12% QoQ, driven by a combinat

  28. Slide 28: ARPU / member monetization

    ARPU / member Annualized Revenue per Monthly Transacting Member monetization ARPU grew 18% YoY primarily driven by: ● Growth in ExtraCash™ ARPU due to improvements in both ExtraCash™ engagement and monetization, powered by ongoing CashAI™ optimizations ● Growth in Dave Card ARPU reflecting an increas

  29. Slide 29: Financial Overview

    Financial Overview 29

  30. Slide 30: Consistent revenue growth

    Consistent Total Revenue ($MM) revenue growth Revenue expanded 38% YoY which was driven by: ● Increase in transacting member base unlocked through improvements to existing MTM retention and efficient new customer acquisition ● Higher ExtraCash™ approval limits and monetization as a result of material

  31. Slide 31: Expanding variable margin

    Variable Margin (Non-GAAP)(1) Expanding variable margin Variable margin expanded ~900bps (15%) YoY due to: ● Lower provision expense as % of revenue as a result of significant improvements in credit performance driven by CashAI™ ● Processing cost / vendor optimization; 4Q24 includes one-time benefit f

  32. Slide 32: Achieving operating leverage

    Achieving operating Fixed Expenses as a % of Total Revenue leverage We continue to generate operating leverage due to discipline in and rationalization of our fixed expense base as we scale the business. Fixed expenses as a percentage of revenue declined by ~800bps YoY due to: ● ~600bps improvement i

  33. Slide 33: Significant Adj. EBITDA generation

    Significant Adj. Adjusted EBITDA (Non-GAAP) ($MM) EBITDA generation 4Q24 Adj. EBITDA of $33.4mm represents 234% or $23.4mm YoY growth which was driven by: ● Revenue growth ● Variable margin expansion ● Improved operating leverage from rationalizing our fixed cost base $91.9mm of cash and cash equivale

  34. Slide 34: Investment summary

    Investment summary Acquire Engage Deepen Strong product market fit Proprietary CashAI™ ™ Dave Card adoption unlocks drives efficient CAC within a underwriting drives profitable additional lifetime value with large and growing TAM unit economics without more products in the pipeline significant capital n

  35. Slide 35: Appendix

    Appendix 35

  36. Slide 36: Glossary

    Glossary 28-Day Average Quarterly Delinquency Rate defined as the amount of Origination Volume which is past due 28 days after the end of the month in which the ExtraCash was disbursed divided by the Origination Volume in that disbursement month. 121-Day Charge Off Rate defined as the amount of Origin

  37. Slide 37: Glossary (Cont'd)

    Glossary (Cont’d) Non-GAAP Adjusted Basic EPS and Non-GAAP Adjusted Diluted EPS defined as adjusted net income (loss) divided by weighted average shares of common stock-basic and weighted average shares of common stock-diluted, respectively. Non-GAAP Variable Profit defined as GAAP Operating Revenues,

  38. Slide 38: Consolidated Statement of Operations

    Consolidated Statement of Operations 38

  39. Slide 39: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures 39 Note: Non-GAAP Variable Profit Margin calculation has been revised to reflect Non-GAAP Variable Profit as a percentage of GAAP Operating Revenues, Net. In disclosures prior to 1Q24, Non-GAAP Variable Profit Margin reflected Non-GAAP Variable Profit as a percentage of

  40. Slide 40: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures 40

  41. Slide 41: Reconciliation of Non-GAAP Measures

    Reconciliation of Non-GAAP Measures 41

  42. Slide 42: Thank you

    Thank you 42

Dave — Q4 2024 Earnings Presentation on 6ix