Slide 1: 3Q22 Earnings Presentation
3Q22 Earnings Presentation November 10, 2022
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: Highlights
Highlights Dave
Slide 6: 3Q22 highlights
3Q22 highlights Monthly Transacting Origination Quarterly Non-GAAP Variable Profit Members Volume Revenue Margin $757M $59M 42% 1.8M 1.5M $606M 39% $47M 18% 25% 25% ~280bps Q-o-Q Q-o-Q Q-o-Q Q-o-Q Growth Growth Growth Growth 2Q22 3Q22 2Q22 3Q22 2Q22 3Q22 2Q22 3Q22 Note: See Glossary for the definitio
Slide 7: Reiterating fiscal year 2022 guidance
Reiterating fiscal year 2022 guidance Low High Non-GAAP Operating Revenues: $200M $215M Non-GAAP Variable Profit Margin: 40% 44% Note: See Glossary for the definition of Non-GAAP Operating Revenues and Non-GAAP Variable Profit 7
Slide 8: Business Strategy
Business Strategy Dave
Slide 9: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day credit access payments relationship liquidity pain points using AI underwriting with instant spending and early direct ● Grow prudently to ● Profitably grow depo
Slide 10: Accelerating growth while improving CAC
Accelerating growth while improving CAC CAC and New Member Acquisition (000s) Marketing campaign in 3Q22 demonstrated our ability to scale marketing efficiently: on a q-o-q basis, acquisition up 42% while CAC declined 18%. Product enhancements drove CAC improvements, and focus on channel expansion ha
Slide 11: Significant member scale
Significant member scale Total Members (MMs) We differentiate by first addressing Membersʼ most crucial need—Credit—and then building long-term banking relationships. Product market fit, strong brand, and low-cost acquisition have enabled Dave to achieve consistent member growth. Sizeable addressable
Slide 12: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day credit access payments relationship liquidity pain points using AI underwriting with instant spending and early direct ● Grow prudently to ● Profitably grow depo
Slide 13: Increasing engagement
Increasing engagement Total Monthly Transacting Members (MMs) Growth driven by engagement-based marketing, rollout of ExtraCash $500, and underwriting improvements which bolster retention. Increases in ExtraCash member limits translate to a more compelling value proposition which drives top of funne
Slide 14: Sustained growth in originations
Sustained growth in originations Advance Origination Volume ($MM) Originations have grown to record highs, reflecting ExtraCashʼs product-market fit. $757mm of originations translating into $88mm net receivables balance at 9/30/22 highlights capital efficient nature of the product. High velocity of t
Slide 15: Growth in ExtraCash advance sizes has bolstered ARPU
Growth in ExtraCash advance sizes has bolstered ARPU Average ExtraCash Origination Size Average Revenue per ExtraCash Origination1 15 (1) Average Revenue per ExtraCash Origination defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total advances disbursed over a given period.
Slide 16: Stable credit performance
Stable credit performance 28 Day Average Quarterly Delinquency Rate Improvements to DQ rates y-o-y while increasing ExtraCash size by 57% and originations by 110% displays the strength of our data-driven underwriting and risk management functions. 3% y-o-y reduction in DQ rate understates improvemen
Slide 17: ARPU / member monetization
ARPU / member monetization Annualized Revenue per Monthly Transacting Member Our data-driven credit underwriting facilitates larger ExtraCash sizes which translate into stronger monetization, albeit at lower rates i.e. higher ARPU at lower variable margins but with higher total variable profit. Abil
Slide 18: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day credit access payments relationship liquidity pain points using AI underwriting. with instant spending and early direct ● Grow prudently to ● Profitably grow dep
Slide 19: Dave Card spend volumes
Dave Card spend volumes Dave Card Spend Volumes ($MM) $217mm quarterly run As of 3Q22, every new Dave Member receives an rate as of Sept. ‘22 ExtraCash account and a Dave Card, unlocking the synergy between the ExtraCash and Payments features. Growth in spend volumes was driven by ExtraCash actives
Slide 20: Flywheel effect between ExtraCash and Dave Card
Flywheel effect between ExtraCash Average Monthly Transactions per Monthly Transacting Member and Dave Card Sep. ‘22 Figure: 4.9 Growing Dave Card adoption amongst actives is driving more transactions per active, deeping the daily use case we have with our members. Additional transactions per MTM al
Slide 21: Financial Overview
Financial Overview Dave
Slide 22: Accelerating revenue growth
Accelerating revenue growth Total Non-GAAP Revenue ($MM) 41% y-o-y and 25% q-o-q non-GAAP revenue growth driven by: ● Increase in transacting member base driving increased origination volume and growth in membership subscription revenue ● Improved ExtraCash monetization given higher average originat
Slide 23: Q-o-Q improvement in variable margin
Q-o-Q improvement in variable margin Variable Profit Margin (Non-GAAP) Variable margin declined in prior quarters as i) we made long-term investments in the Dave Card business which should bolster margins as that business scales and ii) ExtraCash advance sizes increased: larger ExtraCash sizes typica
Slide 24: Adjusted EBITDA
Adjusted EBITDA Adjusted EBITDA (Non-GAAP) ($MM) 3Q22 Adjusted EBITDA losses declined modestly vs. 2Q22 and showed substantial month-to- month improvement within 3Q22 based on lower marketing spend and margin improvement. Adjusted EBITDA should significantly improve from 3Q22 levels as a result of t
Slide 25: Path to profitability: key milestones
Path to profitability: key milestones 2022 & Prior 2023 2024 Contribution Adjusted EBITDA Positive Adjusted EBITDA Profit Positive (Pre-Marketing / Other Acquisition) Positive ● Contribution ● Conservative assumptions on continued ARPU improvement profitable since ○ Further optimizing ExtraCash e.g. f
Slide 26: Investment summary
Investment summary Acquire Deepen Engage ExtraCash to Dave Market-leading CAC bolstered by Differentiated AI driven Card flywheel effect profitable unit credit underwriting unlocks additional economics with with capital efficient revenue potential credible growth business model. within massive, prospec
Slide 27: Appendix
Appendix Dave
Slide 28: 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 29: Glossary (Cont'd)
Glossary (Cont’d) Non-GAAP 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, rent
Slide 30: Consolidated statement of operations
Consolidated statement of operations 30
Slide 31: Reconciliation of net loss to adjusted EBITDA
Reconciliation of net loss to adjusted EBITDA 31
Slide 32: Reconciliations
Reconciliations Operating revenues, net ExtraCash origination and ATM-related fees Non-GAAP operating revenues Operating expenses Non-variable operating expenses Non-GAAP operating expenses Non-GAAP operating revenues Non-GAAP variable operating expenses Non-GAAP variable profit Non-GAAP variable pr
Slide 33: Liquidity and capital resources
Liquidity and capital resources 33