Dave Inc. · NASDAQ:DAVE
Dave — SPAC Merger (June 2021)
34 slides from Dave's SPAC merger presentation, Jun 7, 2021
Slide 1: Exhibit 99.2 June 2021
Exhibit 99.2 June 2021 1Exhibit 99.2 June 2021 1
Slide 2: Disclaimer
Disclaimer This presentation (together with oral statements made in connection herewith, this “Presentation”) is provided for informational purposes only and has been prepared to assist interested parties in making their own evaluation with respect to a potential business combination between Dave In
Slide 3: Disclaimer
Disclaimer INDUSTRY AND MARKET DATA Although all information and opinions expressed in this Presentation, including market data and other statistical information, were obtained from sources believed to be reliable and are included in good faith, Dave and VPCC have not independently verified the info
Slide 4: Jason Wilk, Kyle Beilman, Brendan Carroll
Jason Wilk Kyle Beilman Brendan Carroll Co-Founder and Chief Chief Financial Officer Senior Partner & Co-Founder Executive Officer Joined Dave in 2017 Co-founded VPC in 2007 Founded Dave in 2017 Heads Finance & Operations Serial Entrepreneur 4Jason Wilk Kyle Beilman Brendan Carroll Co-Founder and Ch
Slide 5: VPCC sponsored by VPC; Dave is the ideal partner
VPC Impact Acquisition Holdings III, Inc. is Sponsored by VPC with a focus on FinTech Opportunities Dave is the ideal partner for VPCC Established Alternative Investment Manager • VPC has invested $6.0 billion in over 120 transactions globally since inception • Differentiated High Growth FinTech Str
Slide 6: Transaction Structure and Implied Sources & Uses
Transaction Structure Implied Sources & Uses ($mm) § Dave to merge with VPCC through a reverse-subsidiary merger Sources § Dave to become a wholly-owned subsidiary of VPCC, which will be Existing Dave Shareholder Equity $3,500 renamed Dave and be the go-forward publicly traded company SPAC Cash in T
Slide 7: Going up against legacy banks and their $30bn of overdraft fees
We’re going up against legacy banks and their 1 $30bn of overdraft fees Creating financial opportunity that advances America’s collective potential 1 Based on Center for Financial Services Innovation. 7We’re going up against legacy banks and their 1 $30bn of overdraft fees Creating financial opportu
Slide 8: Capital Raised / Users Acquired
1 Capital Raised / Users Acquired Dave: $6 Other Neobanks: $75-100 10M Largest Neobanks: $125 Begin Bank Rollout 7M Side Hustle Rollout Scaled 1 ExtraCash Product Financial Management Tool Dave Registered Users 2017 2018 2019 2020 Source: Dave Management. Note: Dave has not yet completed its 2020 au
Slide 9: Opportunity
Opportunity
Slide 10: Structurally High Fees, Low Accessibility, and Poor Customer Service
Average fees paid per year by Dave customers to legacy banks Structurally High Fees, Low …Created by Bloated Bank Cost Accessibility, and Poor Customer Structure & Innovator’s Service… Dilemma Overdraft ($35) and minimum balance fees Massive and expensive brick / mortar ($10) for the most vulnerable
Slide 11: Dave's Estimated User TAM
Dave’s Estimated “Chaos Climbers User TAM § Overcoming daily challenges and navigating chaos to find financial § ~10-15mm people without stability ~30-35mm Highest access to a bank account People § ~20mm people who Need overdraft 10-20x per year “Up N' Comers” § Underserved by existing ~20-25mm High
Slide 12: 1212
1212
Slide 13: Dave product features and impact
• Allows users to confidently track • First neobank to help users put their upcoming bills and monitor their money in their pockets by tapping financial health into the gig economy • Millions of financial notifications sent • Highlights focus on community- to users to prevent overspending based appr
Slide 14: Dave impact metrics
Total Meals Overdraft Fees Pledged to Charity 2 1 Donated Avoided Jobs Applications Submitted Income Generated by Dave Startup Employer in Through Side Hustle Users through Side Hustle Los Angeles (Forbes 2020) Source: Dave Management. 1 Dave users have taken over 30mm of overdraft protection advanc
Slide 15: Favorable Opinion of Each Brand
Favorable Opinion of Each Brand Dave 42% 30% 73% Peer-to-Peer A 36% 32% 68% Peer-to-Peer B 30% 33% 63% Bank A 26% 29% 55% Bank B 25% 29% 54% Challenger 25% 25% 50% Bank A Challenger 20% 28% 48% Bank B Very Favorable Somewhat Favorable 4.8 ~1M #1 1 Most Favored Brand App Store Rating Reviews in the I
Slide 16: ExtraCash: up to $200 without fees
Dave uses software and data to offer everyday Americans the financial services they need, at Solves immediate breakthrough speed and pricing. and significant “pain Up to $200 of ExtraCash point” for users without the fees • Flagship feature, a pioneer in reinventing overdraft for Americans in 2017 E
Slide 17: Solving Legacy Pain Points, Building a Better Bank
Solving Legacy Pain Points Building a Better Bank No Overdraft or Minimum Balance Insights Fees Access Paycheck 2 Days Early ExtraCash Empowering On- Demand Overdraft Protection Side Hustle Free Credit-Building Membership Dave’s differentiated product suite and immense brand affinity drives rapid sc
Slide 18: Dave vs. Other Neobank vs. Incumbent Bank User Journey
Dave Other Neobank Incumbent User Journey User Journey Bank User Journey Frictionless access to a “Walled Garden” approach; can only access products with a variety of products in just 1 Ease of Access bank account and multitude of associated steps four steps Multiple user-friendly Antiquated onboard
Slide 19: Positioned for Rapid Scaling: Dave Bank Users
Phased Launch To Date Has Allowed for User Positioned for Rapid Scaling 2Q21 & Beyond Feedback and Product Optimization ~31% penetration 1.3 mm Dave Bank Users Projected Dave Bank Users of Dave user base 1.2 mm 1.1mm 943k ~95% CAGR 784k 633k 273k 176k 141k 128k 114k 102k 22k 2020A 2021E 2022E 2023E
Slide 20: ARPU increases as users attach to Dave Bank
ARPU § Average Revenue Per User (first twelve mos) $95 ( ARPU ) increases dramatically as users attach to Dave Bank ARPU § Uplift reflects mix of new bank (first twelve mos) $43 revenue and increased engagement with core ExtraCash Dave Banking, product Insights, Side Insights, Side Hustle and Hustle
Slide 21: Instant access to high-impact, low-CAC products
Instant access to high-impact, low-CAC products More users and more data lead to more products with outstanding pricing Driving word-of-mouth, supporting brand halo Increasing engagement and enhancing user LTV at no additional CAC High-impact products significantly revenue-generative even before cro
Slide 22: Product launch timeline
Saving (Q2 – Q3) Banking Dec 2020 Side Hustle Nov 2018 ExtraCash / Insights April 2017 High-LTV High-LTV & High-Engagement High-Engagement 22Saving (Q2 – Q3) Banking Dec 2020 Side Hustle Nov 2018 ExtraCash / Insights April 2017 High-LTV High-LTV & High-Engagement High-Engagement 22
Slide 23: Highly Experienced Management Team
Highly Experienced Management Team Jason Wilk Kyle Beilman John Wolanin Jarad Fisher Shannon Sullivan Chien Chou CEO CFO Co-founder CCO CPO EVP Engineering Serial Entrepreneur Mia Alexander John Ricci Paras Chitrakar Grahame Fraser Kate Holmes Brian Li VP Support GC CTO Head of Product VP Design VP
Slide 24: 2424
2424
Slide 25: Service Revenue and Transaction Revenue
Service Revenue Transaction Revenue ExtraCash: Dave Bank: We generate revenue when our users engage in cash We receive debit interchange fees when users pay with advances for overdraft protection their Dave debit card or fund their account via Debit rails Users can opt for free advances (1-3 days) o
Slide 26: Revenue and Gross Profit
1 Gross Profit ($ in mm) % Margin Revenue ($ in mm) Transaction Revenue 45% 56% 62% 57% 59% 62% Service Revenue $533 $329 189 $377 CAGR: 98% $223 CAGR: 116 112% $193 $111 22 344 $122 262 $75 $76 171 $43 121 $17 $8 2018A 2019A 2020P 2021E 2022E 2023E 2018A 2019A 2020P 2021E 2022E 2023E Rapid scaling
Slide 27: Unique Users and ARPU
1 Unique Users (mm) ARPU $ $55 $55 CAGR: 11.4 13% $42 $39 CAGR: $37 8.0 61% $29 5.6 3.7 2.8 1.1 2018A 2019A 2020P 2021E 2022E 2023E 2018A 2019A 2020A 2021E 2022E 2023E Efficient user acquisition and Modest ARPU improvement cross-sell a competitive advantage builds in upside over forecast period Sour
Slide 28: Marketing investment recovered in ~9 months
Marketing investment recovered in ~9 months on 1 a gross profit basis 2022E Cohort Cumulative Cohort Revenue ~$640M Conservative forecast Marketing Expense In projected cumulative compared to observable revenue in four years historical data ~5x Excludes potential benefits from future product release
Slide 29: EV / Revenue peer comparison
EV / 2022E Revenue EV / Revenue EV / 2023E Revenue 19.3x 17.7x 16.9x 15.6x 15.1x 14.5x 2022E Peer Median: 13.9x 13.7x 12.2x 12.2x 11.6x 2023E Peer Median: 10.5x 10.4x 9.4x 9.1x 8.7x 8.1x 8.0x 6.7x 5.5x 1 DaveFUSEIPOEFTCVUPSTSQLPROAFRMAPT-AU Revenue Growth 2022E 95.2% 79.2% 53.1% 22.7% 30.4% 31.2% 37
Slide 30: Thank You
Thank You Banking for humens™
Slide 31: Profit & Loss Highlight
Profit & Loss Highlight ($mm) 2018A 2019A 2020P 2021E 2022E 2023E Total Revenue $17 $76 $122 $193 $377 $533 % Growth -- 340% 60% 59% 95% 41% 1 Gross Profit $8 $43 $75 $111 $223 $329 % Margin 45% 56% 62% 57% 59% 62% Operating Expenses (ex. Marketing) 4 13 29 58 87 113 EBITDA pre-Marketing $4 $29 $46
Slide 32: EBITDA to GAAP Operating Income reconciliation
Figures in $mm 2018A 2019A 2020P EBITDA ($2) $6 $8 (-) Stock-Based Compensation (0) (0) (2) (-) D&A (0) (1) (2) GAAP Operating Income ($2) $5 $5 Source: Dave Management. Note: Dave has not yet completed its 2020 audit and therefore all financial statement information for the year ended December 31,
Slide 33: Risk Factors
RISK FACTORS The below list of risk factors has been prepared solely for purposes of the proposed private placement financing (the “Private Placement”) as part of the proposed business combination of VPC Impact Acquisition Holdings III, Inc. (“VPCC”) and Dave Inc. (the “Proposed Business Combination
Slide 34: Risks Related to Dave's Business (Cont'd)
RISKS RELATED TO DAVE’S BUSINESS (Cont’d) • Failure by a substantial number of our users to repay funds they receive through the use of our overdraft protection product would harm our business and financial results. • We transfer funds to our users daily, which in the aggregate comprise substantial