Slide 1: 1Q24 Earnings Presentation
1Q24 Earnings Presentation May 7, 2024
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 8% (~14MM 180MM Customers1 Customers) since 20211 62% 57% ● Trouble managing cash flow Elevated inflation and Jan. ‘24 ● Minimal to moderate savings interest rates are causing 2021 more Americans to live ● Overdraft up to 20x per
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 banks(2) Overdraft Cost(1) $34 $35 $36 $10 As low as $0(4) Annual bank account maintenance fees(3) $144 $120 $83 $144 $0 Minimum balance to avoid account maintenance fe
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: ~$159 ● 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 bank account ● Better member retention ExtraCash ● ExtraCash instantly available ● Incentivizes cross-attac
Slide 10: Highlights
Highlights Dave
Slide 11: 1Q24 Highlights
1Q24 Highlights Total Adjusted ExtraCash Origination 28-Day Delinquency Revenue EBITDA Volume Rate Second consecutive $1,050M quarter of $74M $13M 2.60% accelerating growth $798M 25% $18m 32% 77bps Y-o-Y Y-o-Y Y-o-Y Y-o-Y 1.83% Growth Improvement Growth Reduction $59M ($5M) 1Q23 1Q24 1Q23 1Q24 1Q23
Slide 12: Raising fiscal year 2024 Adj. EBITDA guidance
Raising fiscal year 2024 Adj. EBITDA guidance ($MM) Prior New GAAP Revenue: $305 - $325 Unchanged Y-o-Y Growth: 18% - 25% Adjusted EBITDA(1): $25 - $35 $30 - $40 Y-o-Y $ Improvement: $35 - $45 $40 - $50 12 (1) See Glossary for the definition of Adjusted EBITDA which is a Non-GAAP measure. The Company
Slide 13: Business Strategy
Business Strategy Dave
Slide 14: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 15: Highly efficient member acquisition at scale
Highly efficient member CAC and New Member Acquisition (000s) acquisition at scale Member acquisition performance reflects our marketing investment discipline that focuses on new member MTM conversion in addition to our emphasis on existing member retention and reactivation. In 1Q24, we acquired 566k
Slide 16: Significant member scale
Significant member scale Total Members (MMs) We differentiate by first addressing Members’ most crucial need—liquidity—and then building long-term banking relationships. This formula, bolstered by Dave’s brand strength and acquisition efficiency, has continued to drive substantial growth in the member
Slide 17: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 18: Solid engagement
Solid engagement Total Monthly Transacting Members (MMs) MTMs grew 14% YoY as our credit-first value proposition and banking product suite continued to drive improvements in new member conversion and existing user retention rates. Inflection Point for Adj. Total MTMs were up 6% QoQ in 1Q24 despite EBI
Slide 19: Sustained growth in originations
Sustained growth in originations ExtraCash Origination Volume ($MM) We continue to achieve record levels of ExtraCash originations, as we disbursed over $1bn for the second consecutive quarter. Our ability to sustain substantial growth in originations demonstrates both the depth and breadth of our T
Slide 20: ExtraCash Advance Size and Revenue Per Advance
ExtraCash Advance Size and Revenue Per Advance Average ExtraCash Advance Size Average Revenue per ExtraCash Advance(1) 20 (1) Average Revenue per ExtraCash Advance defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total advances disbursed over a given period.
Slide 21: Improving delinquency performance
Improving delinquency Quarterly Average 28-Day Delinquency Rate performance 1Q24 was another record period for credit performance: 28-day delinquency rate was down 77bps YoY to 1.83%, the lowest in Dave’s history, while originations grew by 32% over the same period. CashAI continues to demonstrate i
Slide 22: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 23: Dave Card spend volumes
Dave Card spend Dave Card Spend Volumes ($MM) volumes 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 34% YoY reflecting our strategy of incentiv
Slide 24: Flywheel effect between ExtraCash and Dave Card
Flywheel effect between ExtraCash Average Monthly Transactions per Monthly Transacting Member and Dave Card Growth in transactions per transacting member represents Dave gaining a greater share of member spending, allowing us to unlock the additional ARPU potential of our banking product, the vast m
Slide 25: ARPU / member monetization
ARPU / member monetization Annualized GAAP Revenue per Monthly Transacting Member ARPU grew 10% YoY primarily driven by: ● Growth in ExtraCash ARPU due to improvements in both ExtraCash engagement and monetization ● Growth in Dave Card ARPU reflecting significantly increased Dave Card spend ARPU was 5
Slide 26: Financial Overview
Dave Financial Overview 26
Slide 27: Consistent revenue growth
Consistent revenue growth Total GAAP Operating Revenue ($MM) GAAP revenue expanded 25% YoY which was driven by: ● Increase in transacting member base ● Improved ExtraCash engagement/monetization given material underwriting improvements which bolster retention ● Rollout of percent-based fee structure
Slide 28: Expanding variable margin
Expanding variable Variable Margin (non-GAAP) margin Variable margin expanded ~1,000bps (17%) YoY due to: ● Lower provision expense as % of GAAP revenue as a result of significant improvements in credit performance driven by CashAI ● Processing cost enhancements related to how we utilize payment netw
Slide 29: Significant Adj. EBITDA generation
Significant Adj. EBITDA generation Adjusted EBITDA (Loss) (Non-GAAP) ($MM) 1Q24 Adj. EBITDA of $13.2mm represents $17.7mm (393%) YoY improvement and $3.2mm (32%) QoQ improvement which was driven by: ● Revenue growth ● Variable margin expansion ● Increased marketing investment discipline ● Ongoing rat
Slide 30: Adj. EBITDA Profitability Achieved Ahead of Plan (4Q23)
Adj. EBITDA Profitability Achieved Ahead of Plan (4Q23) Reached milestone at 2.1mm MTMs, an inflection point off of which we expect to grow profitability ✅ Pre-4Q22 ✅ 4Q22 ✅4Q23 Variable Profit Adj. EBITDA Positive Adjusted EBITDA Positive Positive (Pre-Marketing) ● Variable margin ● Achieved in 4Q22 –
Slide 31: Investment summary
Investment summary Engage Deepen Acquire Proprietary CashAI Dave Card adoption Strong product market fit underwriting drives unlocks additional drives efficient CAC profitable unit lifetime value with more within a large and economics without products in growing TAM significant capital the pipeline need
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 income or (loss)
Slide 34: 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, N
Slide 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 35 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 prior disclosures, Non-GAAP Variable Profit Margin reflected Non-GAAP Variable Profit as a percentage of Non-GAA
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