Slide 1: 1Q23 Earnings Presentation
1Q23 Earnings Presentation May 9, 2023
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: Large addressable market exhibiting solid growth trajectory
Large addressable market exhibiting solid growth trajectory TAM = 176MM Customers 6% Y-o-Y Growth (9MM Customers) in 2022 Financially Vulnerable Financially Coping 37MM 139MM ● Spending > Income ● Spending ~ Income ● Minimal savings ● Moderate near-term savings; insufficient ● Overdraft 10-20x per ye
Slide 6: 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 a marketing top of mind short-term adva
Slide 7: 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: ~$154 ● Strategic entry point into banking grocerie
Slide 8: Dave Card product overview
Dave Card product overview Dave Card Attribute Benefits to Member Benefits to Dave ● Members automatically receive Dave ● Builds deeper payment relationship Spending Dave Debit Card Card bank account with members ● Facilitates spending needs ● Better member retention ExtraCash ● ExtraCash instantly av
Slide 9: Highlights
Highlights Dave
Slide 10: 1Q23 highlights
1Q23 highlights Quarterly Non-GAAP 28 Day Customer Acquisition Adjusted Revenue Delinquency Rate Cost EBITDA $61M 3.27% $26 2.60% $44M 39% $16 75% ($5M) Y-o-Y 67bps Y-o-Y Growth Y-o-Y 39% Reduction Reduction Y-o-Y Reduction ($18M) 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 1Q22 1Q23 Note: See Glossary for the de
Slide 11: Reiterating fiscal year 2023 guidance
Reiterating fiscal year 2023 guidance Low High Non-GAAP Revenue: $235M $260M Y-o-Y Growth: 11% 23% Non-GAAP Variable Margin: 43% 47% Y-o-Y Improvement: 200bps 600bps Adjusted EBITDA: ($50M) ($35M) Y-o-Y Improvement: 43% 60% Note: See Glossary for the definition of Non-GAAP Revenue and Non-GAAP Variab
Slide 12: Business Strategy
Business Strategy Dave
Slide 13: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day cash advance payments relationship liquidity pain points access using AI with instant spending underwriting and early direct ● Grow prudently to deposit access f
Slide 14: Strong growth while improving CAC
Strong growth while CAC and New Member Acquisition (000s) improving CAC Product enhancements, channel optimization and favorable market conditions supporting continued CAC efficiency vs. prior periods. Year-over-year CAC improved substantially (39%) such that we were able to acquire 27% more new Memb
Slide 15: Significant member scale
Significant member scale Total Members (MMs) We differentiate by first addressing Membersʼ 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
Slide 16: Increasing engagement
Increasing engagement Total Monthly Transacting Members (MMs) Growth driven by engagement-focused marketing, continued rollout and optimization of ExtraCash $500, and underwriting improvements which bolster retention. Continued growth expected as we accelerate marketing spend, drive further enhancem
Slide 17: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day cash advance payments relationship liquidity pain points access using AI with instant spending underwriting and early direct ● Grow prudently to deposit access f
Slide 18: Sustained growth in originations
Sustained growth in originations ExtraCash Origination Volume ($MM) Originations grew 46% Y-o-Y, reflecting strong continued demand; magnified by macro tailwinds. Originations were ~flat Q-o-Q due to seasonally lower demand for ExtraCash, as tax refunds help to support the liquidity needs of our Mem
Slide 19: 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 (1) Average Revenue per ExtraCash Origination defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total advances disbursed over a given period. 19
Slide 20: Improving delinquency performance
Improving delinquency 28 Day Average Quarterly Delinquency Rate performance Significant and continued improvements in DQ rates: ● 98bps q-o-q driven by underwriting enhancements and seasonal strength from tax refunds ● 67bps y-o-y while growing ExtraCash originations by 46%; due to underwriting opti
Slide 21: ARPU / member monetization
ARPU / member monetization Annualized Revenue per Monthly Transacting Member ARPU grew 3% y-o-y grew largely based on the increasing adoption of Dave Card as well as the increase in average revenue per ExtraCash origination. ARPU declined q-o-q as growth in Dave Card / transaction-based revenue was
Slide 22: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● Delight members with ● Create a Dave Card marketing top of mind same-day cash advance payments relationship liquidity pain points access using AI with instant spending underwriting and early direct ● Grow prudently to deposit access f
Slide 23: Dave Card spend volumes
Dave Card spend Dave Card Spend Volumes ($MM) volumes In 3Q22, every new Dave Member began receiving an ExtraCash account and a Dave Card, unlocking synergies between ExtraCash and Dave Card products. 1Q23 growth in Dave Card spend volumes was primarily driven by the growth in MTMs, the continued in
Slide 24: Flywheel effect between ExtraCash and Dave Card
Flywheel effect between ExtraCash Average Monthly Transactions per Monthly Transacting Member and Dave Card Growing Dave Card adoption amongst Members is driving more transactions per active, deeping the daily use case we have with our Members. Additional transactions per MTM also allows us to gain
Slide 25: Financial Overview
Financial Overview Dave
Slide 26: Consistent revenue growth
Consistent revenue growth Total Non-GAAP Revenue ($MM) 39% y-o-y non-GAAP revenue growth driven by: ● Increase in transacting member base ● Improved ExtraCash engagement/monetization given material underwriting optimizations ● Accelerating growth in Transaction Revenue driven by ExtraCash to Dave Ca
Slide 27: Expanding variable margin
Expanding variable margin Variable Profit Margin (Non-GAAP) Variable margin expanded in 1Q23 primarily due to: ● Markedly lower provision expense given significant improvements in credit performance and stronger settlements resulting from favorable seasonal impacts of tax refunds which reduced the re
Slide 28: Reduced Adjusted EBITDA Losses
Reduced Adjusted EBITDA Losses Adjusted EBITDA (Non-GAAP) ($MM) 1Q23 Adj. EBITDA loss improved 62% Q-o-Q driven by: ● Variable margin improvements (see slide 29) ● Moderated marketing investment supported by continued CAC efficiencies We continue to believe that our existing team is sufficient for us
Slide 29: 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 @ 2.2 - 2.4mm MTMs margin profitable than prior guidance of
Slide 30: Investment summary
Investment summary Acquire Engage Deepen Market-leading CAC Differentiated AI driven ExtraCash to Dave Card bolstered by profitable unit underwriting with capital flywheel effect unlocks economics with credible efficient business model. additional revenue growth prospects. potential within massive, gro
Slide 31: Appendix
Appendix Dave
Slide 32: 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 33: 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 (le
Slide 34: Condensed consolidated statement of operations
Condensed consolidated statement of operations 34
Slide 35: Reconciliation of net loss to adjusted EBITDA
Reconciliation of net loss to adjusted EBITDA 35
Slide 36: Reconciliations
Reconciliations DAVEINC. RECONCILIATION OF OPERATING REVENUES, NET TO NON-GAAP OPERATING REVENUES. (in millions) (unaudited) For the Three Months Ended March 31, 2023 2022 ‘Operating revenues, net $ 589 $ 426 ExtraCash origination and ATM-related costs 17 in Non-GAAP operating revenues $ 606 _$ 437
Slide 37: Liquidity and capital resources
Liquidity and capital resources 37