Slide 1: Dave August 2023
Dave August 2023 Dave Welcome, Kira! Available balance $168.44 ExtraCash advances You're approved for $500! Set up direct deposit etyour days earl 1 cash back Try a Side Hustle
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: Build a superior banking solution for everyday Americans
OUR STRATEGY Build a superior banking solution for everyday Americans. 4
Slide 5: The majority of Americans are struggling with their finances
The majority of Americans are struggling with their finances TAM TAM Grew 6% (10MM 176MM Customers1 Customers) in 20221 62% 57% ● Spending ≥ Income Inflation outstripping 2022 ● Minimal to moderate savings wage growth is causing 2021 more Americans to live ● Overdraft up to 20x per year paycheck to pa
Slide 6: Legacy banks fail to support everyday consumers
Legacy banks fail to support everyday consumers $300 - $400 Average fees paid per year by financially struggling Americans to legacy banks2 Overdraft Fee1 $34 $35 $34 $10 Optional Fees Annual bank account fees $144 $120 $120 $144 $0 Minimum balance to avoid account fees $1,500 $500 $1,500 $1,500 $0 U
Slide 7: 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 advan
Slide 8: Dave's ExtraCash product overview
Dave’s ExtraCash product overview ExtraCash Attribute Benefits to Member Benefits to Dave ● Efficient CAC by quickly ● Bridges gaps between paychecks Advance $25 - $500 addressing member pain point for essential expenses, e.g. rent, Size Average: ~$156 ● Strategic entry point into banking gas, grocerie
Slide 9: Dave Card product overview
Dave Card product overview Dave Card Attribute Benefits to Member Benefits to Dave ● Builds deeper payment ● Members automatically receive Spending Dave Debit Card relationship with members Dave Card bank account ● Better member retention ExtraCash ● ExtraCash instantly available ● Incentivizes cross-
Slide 10: Highlights
Highlights Dave
Slide 11: 2Q23 Highlights
2Q23 Highlights Quarterly Non-GAAP 28 Day Delinquency Quarterly Non-GAAP Adjusted Revenue Rate Variable Margin EBITDA $62M 3.67% 53% 2.83% $47M 39% 33% 84bps 1,400bps 54% Y-o-Y Y-o-Y Y-o-Y Y-o-Y Growth Reduction Improvement Improvement ($13M) ($29M) 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 Note: See
Slide 12: Fiscal year 2023 guidance
Fiscal year 2023 guidance Prior New Non-GAAP Revenue: $235M - $260M Unchanged Y-o-Y Growth: 11% - 23% Non-GAAP Variable Margin: 43% - 47% 47% - 51% Y-o-Y Improvement: 200bps - 600bps 600bps - 1,000bps Adjusted EBITDA: ($50M) - ($35M) Unchanged1 Y-o-Y Improvement: 43% - 60% 1 The Adjusted EBITDA (Los
Slide 13: Business Strategy
Business Strategy Dave
Slide 14: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 15: Strong growth while improving CAC
Strong growth while CAC and New Member Acquisition (000s) improving CAC Product enhancements and channel optimization supported the Company’s highly efficient CAC. CAC improved 31% Y-o-Y: we acquired 5% more Members for 28% less marketing spend. Excluding $1.4mm of spend related to brand refresh and
Slide 16: Significant member scale
Significant member scale Total Members (MMs) We differentiate by first addressing Members’ 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 a
Slide 17: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 18: Solid engagement
Solid engagement Total Monthly Transacting Members (MMs) Y-o-Y growth in MTMs driven by engagement- focused marketing, rollout/optimization of ExtraCash $500, underwriting improvements which bolster retention, and broader roll-out of Dave Card offering. On a sequential basis, MTMs were driven by a m
Slide 19: Sustained growth in originations
Sustained growth in originations ExtraCash Origination Volume ($MM) Originations grew 43% Y-o-Y, reflecting strong continued demand and favorable macro tailwinds. Originations increased 9% Q-o-Q as the first quarter typically experiences seasonally lower demand for ExtraCash due to tax refunds which h
Slide 20: ExtraCash Advance Sizes and Revenue Per Advance
ExtraCash Advance Sizes and Revenue Per Advance Average ExtraCash Advance Size Average Revenue per ExtraCash Advance1 20 (1) Average Revenue per ExtraCash Advance defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total advances disbursed over a given period.
Slide 21: Improving delinquency performance
Improving delinquency 28 Day Average Quarterly Delinquency Rate performance 2Q23 DQ rate improved 84bps Y-o-Y, while ExtraCash originations grew 43% as we continue to optimize underwriting. DQ rate improved 164bps vs. 2Q21, a period which benefited from fiscal stimulus. DQ rates increased Q-o-Q by 23b
Slide 22: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 23: Dave Card spend volumes
Dave Card spend Dave Card Spend Volumes ($MM) volumes In 3Q22, every new Dave Member began receiving an ExtraCash account and a Dave Card, unlocking synergies between ExtraCash and Dave Card products. 2Q23 Y-o-Y growth in Dave Card spend volumes was primarily driven by the the continued increases in
Slide 24: Flywheel effect between ExtraCash and Dave Card
Flywheel effect between ExtraCash Average Monthly Transactions per Monthly Transacting Member and Dave Card Growing Dave Card adoption amongst Members is driving more transactions per active user thus deepening recurring engagement with our Members. Continued growth in transactions per Member repres
Slide 25: ARPU / member monetization
ARPU / member monetization Annualized Revenue per Monthly Transacting Member ARPU grew 6% Y-o-Y as increasing ExtraCash Member limits + focus on cross-attaching users into Dave Card have improved monetization of engaged users. ARPU increased 5% Q-o-Q as ExtraCash engagement improved following tax re
Slide 26: Financial Overview
Dave Financial Overview 26
Slide 27: Consistent revenue growth
Consistent revenue growth Total Non-GAAP Revenue ($MM) 33% Y-o-Y Non-GAAP revenue growth driven by: ● Increase in transacting member base ● Improved ExtraCash engagement/monetization given material underwriting improvements which bolster retention ● Accelerating growth in Transaction Revenue driven
Slide 28: Expanding variable margin
Expanding variable Variable Profit Margin (Non-GAAP) margin Variable margin expanded ~1,400bps Y-o-Y due to: ● Lower provision expense as % of non-GAAP revenue given significant improvements in credit performance ● Renegotiated key vendor contract, effective 1/1/23 ● Processing cost enhancements relat
Slide 29: Reduced Adjusted EBITDA losses
Reduced Adjusted EBITDA losses Adjusted EBITDA (Non-GAAP) ($MM) Adj. EBITDA loss improved 54% Y-o-Y driven by revenue growth, variable margin expansion, and marketing efficiencies. Excluding $4 million legal settlement charge related to 2020 data breach, Adj. EBITDA Loss would have improved by ~70%.
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 @ 2.1 - 2.3mm MTMs margin profitable than prior guidance
Slide 31: Investment summary
Investment summary: Acquire Engage Deepen Market-leading CAC Differentiated AI-driven ExtraCash to Dave Card bolstered by profitable underwriting with capital flywheel effect unlocks unit economics with efficient business model. additional revenue credible growth potential within massive, prospects. gr
Slide 32: Appendix
Appendix Dave
Slide 33: Dave members are largely Millennial, lower income, and distributed across the U.S.
Dave members are largely Millennial, lower income, and distributed across the U.S. Annual Age Gender Income1 U.S. State <25 7% $60k+ 45+ Male 29% Other 20% 35% 43% 35 – 44 $40k –$60k KY 3% 35% 25% OH 4% IL 4% GA 4% Female $25k – $40k NY 5% AZ 4% 65% 21% PA 5% 25 – 34 CA 7% 38% <$25k FL 11% 22% TX 11
Slide 34: 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 attributable
Slide 35: 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 (legal
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 36
Slide 37: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 37
Slide 38: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 38