Slide 1: 4Q23 Earnings Presentation
4Q23 Earnings Presentation March 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: 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% (~14MM 180MM Customers1 Customers) since 20211 60% 57% ● Trouble managing cash flow Elevated inflation and 2023 ● Minimal to moderate savings interest rates are causing 2021 more Americans to live ● Overdraft up to 20x per yea
Slide 6: Legacy banks fail to support everyday consumers
Legacy banks fail to support everyday consumers $300 - $400 Average fees paid per year by financially struggling Americans to legacy banks2 Overdraft Cost $34 $35 $36 $10 Optional Fees(4) Annual bank account maintenance fees3 $144 $120 $83 $144 $0 Minimum balance to avoid account maintenance fees3 $1
Slide 7: 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 marketing top of mind short-term advan
Slide 8: Dave's ExtraCash product overview
Dave’s ExtraCash product overview ExtraCash Attribute Benefits to Member Benefits to Dave ● Efficient CAC by quickly ● Bridges gaps between paychecks Advance $25 - $500 addressing member pain point for essential expenses, e.g. rent, Size Average: ~$153 ● Strategic entry point into banking gas, grocerie
Slide 9: Dave Card product overview
Dave Card product overview Dave Card Attribute Benefits to Member Benefits to Dave ● Builds deeper payment ● Members automatically receive Spending Dave Debit Card relationship with members Dave bank account ● Better member retention ExtraCash ● ExtraCash instantly available ● Incentivizes cross-attac
Slide 10: Highlights
Highlights Dave
Slide 11: 4Q23 Highlights
4Q23 Highlights Quarterly Adjusted Quarterly Non-GAAP Quarterly ExtraCash 28-Day Delinquency EBITDA Variable Profit Origination Volume Rate $46M $1,032M 3.58% $10M $801M $23m 80% 29% 139bps Y-o-Y $26M Y-o-Y Y-o-Y Y-o-Y 2.19% Improvement Growth Growth Reduction ($13M) 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q2
Slide 12: Exceeded FY 2023 guidance
Exceeded FY 2023 guidance ($MM) Original FY Revised FY FY23 Actual Non-GAAP Revenue: $235 - $260 $257 - $261 $265 Y-o-Y Growth: 11% - 23% 22% - 24% 26% Non-GAAP Variable Margin: 43% - 47% 53% - 54% 57% Y-o-Y Improvement: 200bps - 600bps 1,200bps - 1,300bps 1,600bps Adjusted EBITDA (Loss)1: ($50) - (
Slide 13: Establishing FY 2024 guidance
Establishing FY 2024 guidance ($MM) Low High GAAP Revenue: $305 $325 Y-o-Y Growth: 18% 25% Adjusted EBITDA(1): $25 $35 Y-o-Y $ Improvement: $35 $45 13 (1) See Glossary for the definition of Adjusted EBITDA which is a Non-GAAP measure. The Company does not provide a quantitative reconciliation of forw
Slide 14: Business Strategy
Business Strategy Dave
Slide 15: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 16: Scaling acquisition while improving CAC
Scaling acquisition CAC and New Member Acquisition (000s) while improving CAC Q4 2023 performance demonstrates our ongoing focus on funnel improvements and channel / CAC optimization. We acquired 683k new members in 4Q23, down 4% YoY as improved new member conversion allowed us to achieve our new me
Slide 17: Significant member scale
Significant member scale Total Members (MMs) We differentiate by first addressing Members’ most crucial need—liquidity—and then building long-term banking relationships. This formula, bolstered by Dave’s brand strength and acquisition efficiency, has continued to drive substantial growth in the member
Slide 18: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 19: Solid engagement
Solid engagement Total Monthly Transacting Members (MMs) MTMs grew 11% year-over-year as our credit-first value proposition and banking product suite continued to drive improvements in conversion and retention rates. Total MTMs were up 9% QoQ in 4Q23. Consistent with the expectation we set last quart
Slide 20: Sustained growth in originations
Sustained growth in originations ExtraCash Origination Volume ($MM) We continue to achieve record levels of ExtraCash originations, addressing our Members’ crucial need for short-term liquidity, surpassing $1bn in quarterly originations in 4Q23 for the first time in our company’s history. Origination
Slide 21: ExtraCash Advance Size and Revenue Per Advance
ExtraCash Advance Size and Revenue Per Advance Average ExtraCash Advance Size Average Revenue per ExtraCash Advance1 21 (1) Average Revenue per ExtraCash Advance defined as sum of Tips (GAAP) + Fees (GAAP) generated divided by total advances disbursed over a given period.
Slide 22: Improving delinquency performance
Improving delinquency Quarterly Average 28-Day Delinquency Rate performance 4Q23 was another period of strong credit loss performance as CashAI continues to demonstrate it effectiveness. Our 28-day delinquency rate was down 23bps QoQ to 2.19%, the lowest in Dave’s history. On a YoY basis, the 28-day
Slide 23: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 24: Dave Card spend volumes
Dave Card spend Dave Card Spend Volumes ($MM) 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 41% YoY reflecting our strategy of incentiv
Slide 25: Flywheel effect between ExtraCash and Dave Card
Flywheel effect between ExtraCash Average Monthly Transactions per Monthly Transacting Member and Dave Card Growth in transactions per transacting member represents Dave gaining a greater share of member spending, allowing us to unlock the additional ARPU potential of our banking product, the vast m
Slide 26: ARPU / member monetization
ARPU / member monetization Annualized Revenue per Monthly Transacting Member ARPU grew 9% YoY primarily driven by: ● Growth in ExtraCash ARPU due to improvements in both ExtraCash engagement and monetization ● Growth in Dave Card ARPU reflecting significantly increased Dave Card spend ● Partially offs
Slide 27: Financial Overview
Financial Overview Dave
Slide 28: Consistent revenue growth
Consistent revenue growth Total Non-GAAP Operating Revenue ($MM) Non-GAAP operating revenue grew 21% YoY and 11% QoQ, with growth accelerating sequentially. The improvements were driven by: ● Increase in transacting member base ● Improved ExtraCash engagement/monetization given material underwriting
Slide 29: Expanding variable margin
Expanding variable Variable Margin (Non-GAAP) margin Variable margin expanded ~2,000bps (50%) YoY due to: ● Lower provision expense as % of non-GAAP revenue given significant improvements in credit performance ● Multiple favorable renegotiations with key vendors in 2023 ● Processing cost enhancements
Slide 30: Achieved Adj. EBITDA profitability
Achieved Adj. EBITDA profitability Adjusted EBITDA (Non-GAAP) ($MM) Adj. EBITDA improved $22.8mm (178%) YoY and $12.5mm QoQ as we generated $10.0mm in Adj. EBITDA in 4Q23. The path to Adj. EBITDA profitability was driven by: ● Revenue growth ● Variable margin expansion ● Marketing efficiencies ● Ongoin
Slide 31: Profitability achieved ahead of plan
Profitability achieved ahead of plan ✅ Pre-4Q22 ✅ 4Q22 ✅ 4Q23 Variable Profit Adj. EBITDA Positive Adjusted EBITDA Positive Positive (Pre-Marketing) ● Variable margin ● Achieved in 4Q22 – earlier ● Generated $10mm of Adj. EBITDA several quarters ahead of the profitable since than prior guidance of 2023
Slide 32: Investment summary
Investment summary Engage Deepen Acquire Proprietary CashAI Dave Card adoption Strong product market fit underwriting drives unlocks additional drives efficient CAC profitable unit lifetime value with more within a large and economics without products in growing TAM significant capital the pipeline need
Slide 33: Appendix
Appendix Dave
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 Adjusted EBITDA defined as net income or (loss)
Slide 35: 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 (legal
Slide 36: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 36
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