Slide 1: 3Q23 Earnings Presentation
3Q23 Earnings Presentation November 7, 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: 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% ● Spending ≥ Income Inflation outstripping wage YTD ‘23 ● Minimal to moderate savings growth is causing more 2021 Americans to live paycheck ● 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 Fee1 $34 $35 $36 $10 Optional Fees Annual bank account maintenance fees3 $144 $120 $83 $144 $0 Minimum balance to avoid account maintenance fees3 $1,50
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: ~$147 ● 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: 3Q23 Highlights
3Q23 Highlights Quarterly Non-GAAP Quarterly ExtraCash 28-Day Delinquency Quarterly Adjusted Variable Profit Origination Volume Rate EBITDA $37M $932M 4.07% $757M ($2.5M) $25M 51% 23% 165bps 91% Y-o-Y Y-o-Y Y-o-Y 2.42% Y-o-Y Growth Growth Reduction Improvement ($27.5M) 3Q22 3Q23 3Q22 3Q23 3Q22 3Q23 3
Slide 12: Increasing FY23 Guidance
Increasing FY23 Guidance Midpoint of Adj. EBITDA Guidance implies profitability in 4Q ($MM) Prior FY New FY Non-GAAP Revenue: $235 - $260 $257 - $261 Y-o-Y Growth: 11% - 23% 22% - 24% Variable Margin: 47% - 51% 53% - 54% Y-o-Y Improvement: 600bps - 1,000bps 1,200bps - 1,300bps Midpoint of Adjusted EB
Slide 13: Business Strategy
Business Strategy Dave
Slide 14: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 15: Strong growth while improving CAC
Strong growth while CAC and New Member Acquisition (000s) improving CAC Q3 2023 performance demonstrates our ability to expand acquisition (up 11% Q-o-Q) while improving our already efficient CACs (down 17% Q-o-Q). Continued efforts on funnel improvements, channel & creative optimization, and endurin
Slide 16: Significant member scale
Significant member scale Total Members (MMs) We differentiate by first addressing Members’ most crucial need—liquidity—and then building long-term banking relationships. This formula, bolstered by Dave’s brand strength and acquisition efficiency, has continued to drive substantial growth in the member
Slide 17: Business strategy
Business strategy Acquire Engage Deepen ● Acquire efficiently by ● ExtraCash provides ● Dave Card offers members marketing top of mind short-term advances to a full service, no mandatory members in lieu of expensive fee banking solution built liquidity pain points overdraft fees on a light-weight, mo
Slide 18: Solid engagement
Solid engagement Total Monthly Transacting Members (MMs) MTMs grew 6% year-over-year as our credit-first value proposition and banking product suite continued to drive improvements in conversion and retention rates. 3Q23 MTMs were roughly flat Q-o-Q, though ExtraCash and Dave Card actives grew, drivin
Slide 19: Sustained growth in originations
Sustained growth in originations ExtraCash Origination Volume ($MM) We continue to achieve record levels of ExtraCash originations, addressing our Members’ crucial need for short-term liquidity. Originations grew 23% Y-o-Y driven by increases in ExtraCash active MTMs, avg. advance size, and # of adv
Slide 20: ExtraCash Advance Sizes and Revenue Per Advance
ExtraCash Advance Sizes and Revenue Per Advance Average ExtraCash Advance Size Average Revenue per ExtraCash Advance1 20 (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 21: Improving delinquency performance
Improving delinquency 28-Day Average Quarterly Delinquency Rate performance 3Q23 28-day delinquency rate of 2.42% represents the lowest 28-day delinquency rate in our Company’s history. This rate improved 165bps Y-o-Y, while ExtraCash originations grew 23% as we continue to optimize our real-time AI
Slide 22: 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 23: Dave Card spend volumes
Dave Card spend Dave Card Spend Volumes ($MM) volumes In 3Q22, every new Dave Member began receiving an ExtraCash account and a Dave Card, unlocking synergies between ExtraCash and Dave Card products. 73% Y-o-Y (12% Q-o-Q) growth in Dave Card spend reflects: i) continued progress cross-attaching Extr
Slide 24: Flywheel effect between ExtraCash and Dave Card
Flywheel effect between ExtraCash Average Monthly Transactions per Monthly Transacting Member and Dave Card Continued growth in transactions per transacting member represents Dave gaining a greater share of member spending, allowing us to unlock the additional ARPU potential of our banking product,
Slide 25: ARPU / member monetization
ARPU / member monetization Annualized Revenue per Monthly Transacting Member ARPU grew 9% Y-o-Y and 8% Q-o-Q primarily driven by: ● Growth in ExtraCash ARPU due to improvements in both ExtraCash engagement and monetization ● Growth in Dave Card ARPU reflecting significantly increased Dave Card spend ●
Slide 26: Financial Overview
Dave Financial Overview 26
Slide 27: Consistent revenue growth
Consistent revenue growth Total Non-GAAP Revenue ($MM) Non-GAAP revenue grew 15% Y-o-Y, driven by: ● Increase in transacting member base ● Improved ExtraCash engagement/monetization given material underwriting improvements which bolster retention ● Growth in Transaction Revenue driven by increases i
Slide 28: Expanding variable margin
Expanding variable Variable Profit Margin (Non-GAAP) margin Variable margin expanded ~1,300bps (32%) Y-o-Y due to: ● Lower provision expense as % of non-GAAP revenue given significant improvements in credit performance ● Renegotiated key vendor contract, effective 1/1/23 ● Processing cost enhancements
Slide 29: Reduced Adjusted EBITDA losses
Reduced Adjusted EBITDA losses Adjusted EBITDA (Non-GAAP) ($MM) Adj. EBITDA loss improved 91% Y-o-Y and 81% Q-o-Q driven by respective impacts from the following: ● Revenue growth ● Variable margin expansion ● Marketing efficiencies ● Ongoing rationalization of our fixed cost base; we believe our exis
Slide 30: Path to profitability: key milestones
Path to profitability: key milestones ✅ Pre-4Q22 ✅ 4Q22 4Q23 - 1H24 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 @ 2.0 - 2.1mm MTMs margin profitable than prior gu
Slide 31: Investment summary
Investment summary Acquire Engage Deepen Market-leading CAC Differentiated AI-driven ExtraCash to Dave Card bolstered by profitable underwriting with capital flywheel effect unlocks unit economics with efficient business model. additional revenue credible growth potential within massive, prospects. gro
Slide 32: Appendix
Appendix Dave
Slide 33: 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 attributable
Slide 34: 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 35: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures 35
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