Slide 1: 4Q22 Earnings Presentation
4Q22 Earnings Presentation March 6, 2023
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
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
Slide 4: Our Mission and Strategy
OUR MISSION Build products that level the financial playing field. OUR STRATEGY Build a superior banking solution for everyday Americans. 4
Slide 5: Large addressable market exhibiting solid growth trajectory
Large addressable market exhibiting solid growth trajectory TAM = 176MM Customers 6% Y-o-Y Growth (9MM Customers) in 2022 Financially Vulnerable Financially Coping 37MM 139MM ● Spending > Income ● Spending ~ Income ● Minimal savings ● Moderate near-term savings; insufficient ● Overdraft 10-20x per ye
Slide 6: 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 ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advanc
Slide 7: Dave's ExtraCash product overview
Dave’s ExtraCash product overview ExtraCash Attribute Benefits to Member Benefits to Dave ● Bridges gaps between ● Efficient CAC by quickly Advance $25 - $500 paychecks for essential addressing member pain point Size Average: ~$144 expenses, e.g. rent, gas, ● Strategic entry point into groceries bankin
Slide 8: Dave's Card product overview
Dave’s Card product overview Dave Card Attribute Benefits to Member Benefits to Dave ● Members automatically receive ● Builds deeper payment Spending Dave Debit Card Dave Card bank account relationship with members ● Facilitates spending needs ● Better member retention ExtraCash ● ExtraCash instantly
Slide 9: Highlights
Highlights Dave
Slide 10: 4Q22 highlights
4Q22 highlights Quarterly Non-GAAP 28 Day Customer Acquisition Adjusted Revenue Delinquency Rate Cost EBITDA $62M $59M 4.07% $24 3.58% $17 5% ~50bps 31% 59% Q-o-Q Q-o-Q Q-o-Q Q-o-Q Growth Improvement Improvement Improvement ($12M) ($29M) 3Q22 4Q22 3Q22 4Q22 3Q22 4Q22 3Q22 4Q22 Note: See Glossary for
Slide 11: Achieved fiscal year 2022 guidance
Achieved fiscal year 2022 guidance Low High Actual Non-GAAP Revenue: $200M $215M $211M Non-GAAP Variable Margin: 40% 44% 41% Note: See Glossary for the definition of Non-GAAP Revenue and Non-GAAP Variable Profit. Non-GAAP Variable Margin is calculated as Non-GAAP Variable Profit divided by Non-GAAP R
Slide 12: Establishing fiscal year 2023 guidance
Establishing fiscal year 2023 guidance Low High Non-GAAP Revenue: $235M $260M Y-o-Y Growth: 11% 23% Non-GAAP Variable Margin: 43% 47% Y-o-Y Improvement: 200bps 600bps Adjusted EBITDA: ($50M) ($35M) Y-o-Y Improvement: 43% 60% Note: See Glossary for the definition of Non-GAAP Revenue and Non-GAAP Varia
Slide 13: Business Strategy
Business Strategy Dave
Slide 14: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day cash advance payments relationship liquidity pain points access using AI with instant spending underwriting and early direct ● Grow prudently to deposit access f
Slide 15: Accelerating growth while improving CAC
Accelerating growth while improving CAC CAC and New Member Acquisition (000s) Product enhancements, channel optimization and favorable market conditions supporting continued CAC efficiency vs. prior periods. CAC improved 31% sequentially; increased efficiency is offsetting rationalization of marketing
Slide 16: Significant member scale
Significant member scale Total Members (MMs) We differentiate by first addressing Membersʼ most crucial need—Liquidity—and then building long-term banking relationships. Product market fit, strong brand, and low-cost acquisition have enabled Dave to achieve consistent member growth at scale. Sizeable
Slide 17: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day cash advance payments relationship liquidity pain points access using AI with instant spending underwriting and early direct ● Grow prudently to deposit access f
Slide 18: Increasing engagement
Increasing engagement Total Monthly Transacting Members (MMs) Growth driven by engagement-focused marketing, continued rollout + optimization of ExtraCash $500, and underwriting improvements which bolster retention. Increases in ExtraCash Member limits translate to a more compelling value propositio
Slide 19: Sustained growth in originations
Sustained growth in originations Advance Origination Volume ($MM) Originations continue to reach record highs, reflecting ExtraCashʼs product-market fit which is magnified by the macro tailwinds. $801mm of originations translating into a $104mm net receivables balance as of 12/31/22 reflects capital
Slide 20: Growth in ExtraCash advance sizes has bolstered ARPU
Growth in ExtraCash advance sizes has bolstered ARPU Average ExtraCash Origination Size Average Revenue per ExtraCash Origination1 (1) Average Revenue per ExtraCash Origination defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total advances disbursed over a given period. 20
Slide 21: Improving delinquency performance
Improving delinquency performance 28 Day Average Quarterly Delinquency Rate Significant improvements in DQ rates q-o-q (i.e. 49bps) while continuing to expand originations demonstrates our ability to strengthen unit economics as we scale. 4Q22 improvement of 62bps vs. 4Q19 i.e. pre-pandemic. Our und
Slide 22: ARPU / member monetization
ARPU / member monetization Annualized Revenue per Monthly Transacting Member Enhanced underwriting has facilitated larger ExtraCash sizes, improving monetization. Ability for users to seamlessly spend ExtraCash funds via Dave Card has driven improved transaction revenue ARPU, which rolled out throug
Slide 23: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day cash advance payments relationship liquidity pain points access using AI with instant spending underwriting and early direct ● Grow prudently to deposit access f
Slide 24: Dave Card spend volumes
Dave Card spend volumes Dave Card Spend Volumes ($MM) $282mm quarterly run In 3Q22, every new Dave Member began rate as of Dec. ‘22 receiving an ExtraCash account and a Dave Card, unlocking the synergies between the ExtraCash and Dave Card features. 4Q22 growth in Dave Card spend volumes was primari
Slide 25: Flywheel effect between ExtraCash and Dave Card
Flywheel effect between ExtraCash Average Monthly Transactions per Monthly Transacting Member and Dave Card Growing Dave Card adoption amongst Members is driving more transactions per active, deeping the daily use case we have with our Members. Additional transactions per MTM also allows us to gain
Slide 26: Financial Overview
Financial Overview Dave
Slide 27: Accelerating revenue growth
Accelerating revenue growth Total Non-GAAP Revenue ($MM) 46% y-o-y and 5% q-o-q non-GAAP revenue growth driven by: ● Increase in transacting member base ● Improved ExtraCash monetization given higher average origination size ● Accelerating growth in Transaction Revenue driven by ExtraCash to Dave Ca
Slide 28: Attractive variable margin
Attractive variable margin Variable Profit Margin (Non-GAAP) ~43% Pro Forma for key Contract Renegotiation Variable Margin declined in 1H22 as i) we made (1/1/23)* long-term investments in the Dave Card and ii) ExtraCash advance sizes increased. Larger ExtraCash sizes typically have higher ARPU and v
Slide 29: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA (Non-GAAP) ($MM) 4Q22 Adj. EBITDA loss improved 59% Q-o-Q driven by: ● Revenue growth ● Improved payment processing economics and Dave Card cost structure ● Moderated marketing investment supported by continued CAC efficiencies ● Rationalization of fixed expenses, prov
Slide 30: Path to profitability: key milestones
Path to profitability: key milestones Pre-4Q22 4Q22 2024 Contribution Adj. EBITDA Positive Adjusted EBITDA Profit Positive (Pre-Marketing) Positive ● Contribution ● Achieved in 4Q22 i.e. earlier ● Growth in MTMs: projected to turn break-even @ 2.2 - 2.4mm MTMs margin profitable than prior guidance of
Slide 31: Investment summary
Investment summary Acquire Deepen Engage Market-leading ExtraCash to Dave CAC bolstered by Differentiated AI driven Card flywheel effect profitable unit underwriting with unlocks additional economics with capital efficient revenue potential credible growth business model. within massive, prospects. gro
Slide 32: Appendix
Appendix Dave
Slide 33: 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 advance was disbursed divided by the Origination Volume in that disbursement month Adjusted EBITDA defined as net loss attributab
Slide 34: Glossary (Cont'd)
Glossary (Cont’d) Non-GAAP Variable Operating Expenses defined as Operating Expenses excluding Non-Variable Operating Expenses Non-Variable Operating Expenses defined as all advertising and marketing operating expenses, compensation and benefits operating expenses, and certain operating expenses (le
Slide 35: Consolidated statement of operations
Consolidated statement of operations 35
Slide 36: Reconciliation of net loss to adjusted EBITDA
Reconciliation of net loss to adjusted EBITDA 36
Slide 37: Reconciliations
Reconciliations Operating revenues, net ExtraCash origination and ATM-related fees Non-GAAP operating revenues Operating expenses Non-variable operating expenses Non-GAAP variable operating expenses Non-GAAP operating revenues Non-GAAP variable operating expenses Dave Non-GAAP variable profit Non-GA
Slide 38: Liquidity and capital resources
Liquidity and capital resources 38