Slide 1: 3Q 24 Earnings Presentation
3Q 24 Earnings Presentation November 12, 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: Our strategy: 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% 180MM Customers1 (~15MM Customers) since 20211 Aug. ‘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% 65% ●
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(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 m
Slide 7: Legacy banks' higher cost to serve, inefficient CACs, limited interchange revenue
…Due to legacy banks’ higher cost to serve, inefficient CACs, and limited interchange revenue Legacy Cost to Serve Comparison1,2 CAC Comparison3 Banks ● Antiquated tech stacks ● Scalable best-in-class Technology e.g. mainframe cloud-native ● Scalable CashAI ● Antiquated models underwriting engine Und
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
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: $172 essential expenses, e.g. rent, gas, ● Strategic entry point into banking groceries relat
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
Slide 11: Highlights
Highlights 11
Slide 12: 3Q24 Highlights
3Q24 Highlights Total Adjusted ExtraCash ™ 28-Day Revenue EBITDA Origination Volume Delinquency Rate Supported ~1,300bp Y-o-Y Improvement Fourth in Variable Margin consecutive quarter of 2.42% accelerating $93M $1,360M growth $25M 64bps $27m 46% Y-o-Y 41% Improvement Y-o-Y Y-o-Y Y-o-Y Improvement $9
Slide 13: Raising 2024 Revenue and Adj. EBITDA guidance
Raising 2024 Revenue and Adj. EBITDA guidance ($MM) Prior New Total Revenue: $310 - $325 $340 - $343 Y-o-Y Growth: 20% - 25% 31% - 32% ($MM) Prior New Adjusted EBITDA(1): $40 - $50 $71 - $74 Y-o-Y Improvement: $50 - $60 $81 - $84 13 (1) See Glossary for the definition of Adjusted EBITDA which is a No
Slide 14: Business Strategy
Business Strategy 14
Slide 15: Business strategy: Acquire, Engage, Deepen
Business strategy Acquire Engage Deepen ExtraCash™ provides short-term liquidity to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enable
Slide 16: Highly efficient member acquisition at scale
Highly efficient member CAC and New Member Acquisition (000s) acquisition at scale Member acquisition performance reflects our disciplined focus on new member MTM conversion, existing member retention, and dormant member reactivation. In 3Q24, we acquired 854k new members, a 4% increase YoY despite a
Slide 17: Significant member scale
Significant Total Members (MMs) member scale We differentiate by first addressing members’ most crucial need—liquidity—and then building long-term banking relationships. This formula, bolstered by Dave’s brand strength and acquisition efficiency, has continued to drive substantial growth in members to
Slide 18: Business strategy: Acquire, Engage, Deepen
Business strategy Acquire Engage Deepen ExtraCash™ provides short-term liquidity to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enable
Slide 19: Solid engagement
Solid engagement Total Monthly Transacting Members (MMs) MTMs grew 23% YoY as our credit-first value proposition and banking product suite continued to drive improvements in new member conversion, existing member retention, and dormant member reactivation.. Inflection Point for Adj. EBITDA Profitabilit
Slide 20: Sustained growth in originations
Sustained growth ExtraCash™ Origination Volume ($MM) in originations We continue to achieve record levels of ExtraCash™ originations, as we disbursed ~$1.4bn in Q3. We believe our ability to sustain substantial growth in originations demonstrates both the depth and breadth of our TAM as well as our
Slide 21: Average Size and Revenue per ExtraCash
Average Size and Revenue per ExtraCash™ Average ExtraCash™ Size Average Revenue per ExtraCash™(1) 21 (1) Average Revenue per ExtraCash defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total # of ExtraCash taken over a given period.
Slide 22: Improving credit performance
Improving credit Quarterly Static Pool Delinquency and Charge-Off Rates performance 3Q24 28 Day Delinquency Rate improved 64bps YoY, while originations grew by 46%; sequentially, delinquency rates improved 25bps. CashAI™ continues to improve its ability to separate credit risk as it has analyzed nea
Slide 23: Business strategy: Acquire, Engage, Deepen
Business strategy Acquire Engage Deepen ExtraCash™ provides short-term liquidity to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enable
Slide 24: Dave Card spend volumes
Dave Card Dave Card Spend Volumes ($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 19% YoY and 5% QoQ reflecting our strategy
Slide 25: ARPU / member monetization
ARPU / member Annualized Revenue per Monthly Transacting Member monetization ARPU grew 14% YoY primarily driven by: ● Growth in ExtraCash™ ARPU due to improvements in both ExtraCash™ engagement and monetization, powered by CashAI™ optimization ● Growth in Dave Card ARPU reflecting an increase in both
Slide 26: Financial Overview
Financial Overview 26
Slide 27: Consistent revenue growth
Consistent Total Revenue ($MM) revenue growth Revenue expanded 41% YoY which was driven by: ● Increase in transacting member base driven by improvements to existing MTM retention and efficient new customer acquisition ● Higher ExtraCash™ approval limits and monetization driving material underwriting
Slide 28: Expanding variable margin
Expanding Variable Margin (non-GAAP) variable margin Variable margin expanded ~1,300bps (22%) YoY due to: ● Lower provision expense as % of revenue as a result of significant improvements in credit performance driven by CashAI™ ● Processing cost / vendor optimization ● Favorable renegotiations with k
Slide 29: Achieving operating leverage
Achieving operating Fixed Expenses as a % of Total Revenue leverage We continue to generate significant operating leverage due to discipline in and rationalization of our fixed expense base as we scale the business. Fixed expenses as a percentage of revenue declined by ~1,000bps YoY due to: ● ~600bps
Slide 30: Significant Adj. EBITDA generation
Significant Adj. Adjusted EBITDA (Loss) (Non-GAAP) ($MM) EBITDA generation 3Q24 Adj. EBITDA of $24.7mm represents $27.2mm YoY improvement which was driven by: ● Revenue growth ● Variable margin expansion ● Increased marketing investment discipline ● Improved operating leverage from rationalizing our
Slide 31: 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
Slide 32: Appendix
Appendix 32
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 was disbursed divided by the Origination Volume in that disbursement month. 121-Day Charge Off Rate defined as the amount of Origin
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,
Slide 35: Consolidated Statement of Operations
Consolidated Statement of Operations 35
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 36 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
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
Slide 39: Thank you
Thank you 39