Slide 1: 2Q 24 Earnings Presentation
2Q 24 Earnings Presentation August 5, 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 Customers 1 (~15MM Customers) since 20211 May ‘24 Elevated inflation and interest rates are 2021 causing more Americans to live ● Trouble managing cash flow 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: Due to legacy banks' higher cost to serve, inefficient CACs, and limited interchange revenue
…Due to legacy banks’ higher cost to serve, inefficient CACs, and limited interchange revenue Legacy Banks ● Antiquated tech stacks ● Scalable best-in-class Technology e.g. mainframe cloud-native 97% ● Scalable CashAI ● Antiquated models 83% Lower underwriting engine Underwriting based on heavily Low
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 advances to members in lieu of Dave Card offers members a full Acquire efficient
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 Advance $25 - $500 member pain point essential expenses, e.g. rent, gas, Size Average: ~$166 groceries ● Strategic entry point into bank
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 bank account with members ● Better member retention ExtraCash™ ● ExtraCash™ instantly available ● Incentivizes cross-att
Slide 11: Highlights
Highlights 11
Slide 12: 2Q24 Highlights
2Q24 Highlights Total Adjusted ExtraCash ™ 28-Day Revenue EBITDA Origination Volume Delinquency Rate Third consecutive 2.83% quarter of $80M $15M $1,186M accelerating growth 2.03% 31% $28m $867M 37% 80bps Y-o-Y Y-o-Y Y-o-Y Y-o-Y Growth Improvement Growth Improvement $61M ($13M) 2Q23 2Q24 2Q23 2Q24 2
Slide 13: Raising fiscal year 2024 Adj. EBITDA guidance
Raising fiscal year 2024 Adj. EBITDA guidance ($MM) Prior New GAAP Revenue: $305 - $325 $310 - $325 Y-o-Y Growth: 18% - 25% 20% - 25% ($MM) Prior New Adjusted EBITDA(1): $30 - $40 $40 - $50 Y-o-Y Improvement: $40 - $50 $50 - $60 13 (1) See Glossary for the definition of Adjusted EBITDA which is a Non-
Slide 14: Business Strategy
Business Strategy 14
Slide 15: Business strategy
Business strategy Acquire Engage Deepen ExtraCash™ provides short-term advances to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enabled
Slide 16: Highly efficient member acquisition at scale
Highly efficient member CAC and New Member Acquisition (000s) acquisition at scale Member acquisition performance reflects our disciplined focus on new member MTM conversion, existing member retention, and dormant member reactivation. In 2Q24, we acquired 716k new members i.e., 3% fewer members for ne
Slide 17: Significant member scale
Significant Total Members (MMs) member scale We differentiate by first addressing Members’ most crucial need—liquidity—and then building long-term banking relationships. This formula, bolstered by Dave’s brand strength and acquisition efficiency, has continued to drive substantial growth in members to
Slide 18: Business strategy
Business strategy Acquire Engage Deepen ExtraCash™ provides short-term advances to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enabled
Slide 19: Solid engagement
Solid engagement Total Monthly Transacting Members (MMs) MTMs grew 18% YoY as our credit-first value proposition and banking product suite continued to drive improvements in new member conversion and existing Inflection Point user retention rates. for Adj. EBITDA Profitability Total MTMs were up 2% QoQ
Slide 20: Sustained growth in originations
Sustained growth ExtraCash™ Origination Volume ($MM) in originations We continue to achieve record levels of ExtraCash™ originations, as we disbursed ~$1.2bn. Our ability to sustain substantial growth in originations demonstrates both the depth and breadth of our TAM as well as our core competency i
Slide 21: ExtraCash Advance Size and Revenue Per Advance
ExtraCash™ Advance Size and Revenue Per Advance Average ExtraCash™ Advance Size Average Revenue per ExtraCash™ Advance(1) 21 (1) Average Revenue per ExtraCash Advance defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total advances disbursed over a given period.
Slide 22: Improving credit performance
Improving credit Quarterly Static Pool Delinquency and Charge-Off Rates performance 2Q24 28 Day Delinquency Rate improved 80bps YoY while originations grew by 37%. CashAI™ continues to improve its ability to separate credit risk as it has analyzed over 105mm advances since inception. On a QoQ basis,
Slide 23: Business strategy
Business strategy Acquire Engage Deepen ExtraCash™ provides short-term advances to members in lieu of Dave Card offers members a full Acquire efficiently by marketing expensive overdraft fees service, no mandatory fee banking top of mind liquidity pain points solution built on a light-weight, Enabled
Slide 24: Dave Card spend volumes
Dave Card Dave Card Spend Volumes ($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 28% YoY reflecting our strategy of incenti
Slide 25: ARPU / member monetization
ARPU / member Annualized GAAP Revenue per Monthly Transacting Member monetization ARPU grew 11% YoY primarily driven by: ● Growth in ExtraCash™ ARPU due to improvements in both ExtraCash™ engagement and monetization ● Growth in Dave Card ARPU reflecting an increase in both Dave Card spend and ExtraCa
Slide 26: Financial Overview
Financial Overview 26
Slide 27: Consistent revenue growth
Consistent Total GAAP Operating Revenue ($MM) revenue growth GAAP revenue expanded 31% YoY which was driven by: ● Increase in transacting member base ● Improved ExtraCash™ engagement/monetization given material underwriting improvements which bolster retention ● Rollout of percent-based fee structur
Slide 28: Expanding variable margin
Expanding Variable Margin (non-GAAP) variable margin Variable margin expanded ~1,100bps (20%) YoY due to: ● Lower provision expense as % of GAAP revenue as a result of significant improvements in credit performance driven by CashAI™ ● Processing cost enhancements related to how we utilize payment net
Slide 29: Achieving operating leverage
Achieving operating Fixed Expenses as a % of GAAP Operating Revenue leverage We continue to generate significant operating leverage due to discipline in and rationalization of our fixed expense base as we scale the business. Fixed expenses as a percentage of GAAP revenue declined by ~1,800bps YoY due
Slide 30: Significant Adj. EBITDA generation
Significant Adj. Adjusted EBITDA (Loss) (Non-GAAP) ($MM) EBITDA generation 2Q24 Adj. EBITDA of $15.2mm represents $28.3mm (216%) YoY improvement which was driven by: ● Revenue growth ● Variable margin expansion ● Increased marketing investment discipline ● Improved operating leverage from rationalizi
Slide 31: 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 Positive Adj. EBITDA Positive Adjusted EBITDA Positive (Pre-Marketing) Variable margin profitable Achieved in 4Q22 –
Slide 32: 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 33: Appendix
Appendix 33
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. 121-Day Charge Off Rate defined as the amount o
Slide 35: 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 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