Record Q1 Revenue of
Q1 GAAP Net Income Reaches
Dave Raises 2024 Adjusted EBITDA Guidance to
“2024 is off to a strong start as we exceeded growth and profitability expectations in the first quarter,” said
“Despite the seasonal patterns which typically temper ExtraCash demand in the early part of the year, we originated over
Quarterly Financial Highlights ($ in millions, unaudited)
1Q23 | 2Q23 | 3Q23 | 4Q23 | 1Q24 | |
GAAP Operating Revenues, Net % Change vs. prior year period | 38% | 34% | 16% | 23% | 25% |
Non-GAAP Variable Profit* % Change vs. prior year period | 91% | 78% | 51% | 80% | 47% |
Non-GAAP Variable Profit Margin*(1) | 58% | 54% | 57% | 63% | 68% |
GAAP Net Income (Loss) | ( | ( | ( | ||
Adjusted Net Income (Loss)* | ( | ( | ( | ||
Adjusted EBITDA (Loss)* | ( | ( | ( |
*Non-GAAP measures. See reconciliation of non-GAAP measures at the end of the press release.
(1) Non-GAAP Variable Profit Margin calculation has been revised (in all periods shown above) to reflect Non-GAAP Variable Profit as a percentage of GAAP Operating Revenues, Net. In prior disclosures, Non-GAAP Variable Profit Margin reflected Non-GAAP Variable Profit as a percentage of Non-GAAP Operating Revenues.
First Quarter 2024 Operating Highlights (vs. Q1 2023)
$33.4 million gain related to the extinguishment of the convertible note issued toFTX Ventures Ltd. - New Members totaled 566,000 while customer acquisition costs were flat
- Monthly Transacting Members (“MTMs”) increased 14% to 2.2 million. Transactions per MTM increased 15% to 6.0
- ExtraCash originations increased 32% to
$1.1 billion , while the average 28-Day delinquency rate improved 77 basis points to 1.83% - Dave Debit Card spend increased 34% to
$394 million - For a full review of the Company’s key performance indicators, please refer to the Company’s First Quarter 2024 Earnings Presentation which can be found at https://investors.dave.com/news-events/presentations
Liquidity Summary
The Company had
2024 Financial Guidance ($ in millions)
FY 2024 | |
GAAP Operating Revenues, Net Year-Over-Year Growth | 18% - 25% |
Adjusted EBITDA* Year-Over-Year Improvement |
*Non-GAAP measure. The Company does not provide a quantitative reconciliation of forward-looking non-GAAP financial measures because it is unable to predict without unreasonable effort the exact amount or timing of the reconciling items, including interest expense, investment income, and loss provision, among others. The variability of these items could have a significant impact on our future GAAP financial results.
Dave’s CFO
“Given our outperformance and positive outlook, we are raising our Adjusted EBITDA guidance for the year from
Conference Call
The Company will host a conference call at
Date:
Time:
Dial-in registration link: https://register.vevent.com/register/BIf7192f180cbd4ff9b106b2f1f1a6aa22
Live webcast registration link: https://edge.media-server.com/mmc/p/pmdhhzua
The conference call will also be available for replay in the Events section of the Company’s website, along with the transcript, at https://investors.dave.com.
If you have any difficulty registering for or connecting to the conference call, please contact Elevate IR at DAVE@elevate-ir.com.
About Dave
Dave (Nasdaq: DAVE) is a leading
Forward-Looking Statements
This press release includes forward-looking statements, which are subject to the “safe harbor” provisions of the
Non-GAAP Financial Information
This press release contains references to Adjusted EBITDA (loss), adjusted net income (loss), non-GAAP variable operating expenses, non-GAAP variable profit and non-GAAP variable profit margin of Dave, which are non-GAAP financial measures that are adjusted from results based on generally accepted accounting principles in
These non-GAAP financial measures may be helpful to the user in assessing our operating performance and facilitate an alternative comparison among fiscal periods. The Company’s management team uses these non-GAAP financial measures in assessing performance, as well as in planning and forecasting future periods. The methods the Company uses to compute these non-GAAP financial measures may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Refer to the section further below for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures for the three months ended
Certain Other Terms
Dave defines Net New Members as the number of new Members who join the Dave platform in a given period by connecting an existing bank account to the Dave service or by opening a new Dave Banking account, net of the number of accounts deleted by Members or closed by the Company in the same period. Total Members is defined as the number of unique Members that have either connected an existing bank account to the Dave service or have opened a Dave Banking account, less the number of accounts deleted by Members or closed by Dave, as measured at the end of a period. The number of Monthly Transacting Members represents the unique number of Members who have made a funding, spending, ExtraCash or subscription transaction within a particular month, measured as the average over a given period. Transactions Per Monthly Transacting Member measures the average number of transactions initiated per Monthly Transacting Member in each month, measured as the average over a given period.
Investor Relations Contact
Elevate IR
DAVE@elevate-ir.com
Media Contact
press@dave.com
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in millions, except per share data) | |||||||
(unaudited) | |||||||
For the Three Months Ended | |||||||
2024 | 2023 | ||||||
Operating revenues: | |||||||
Service based revenue, net | $ | 65.6 | $ | 52.6 | |||
Transaction based revenue, net | 8.0 | 6.3 | |||||
Total operating revenues, net | 73.6 | 58.9 | |||||
Operating expenses: | |||||||
Provision for credit losses | 9.9 | 12.0 | |||||
Processing and servicing costs | 7.7 | 7.1 | |||||
Advertising and marketing | 9.1 | 9.4 | |||||
Compensation and benefits | 24.6 | 24.4 | |||||
Other operating expenses | 16.9 | 18.5 | |||||
Total operating expenses | 68.2 | 71.4 | |||||
Other (income) expenses: | |||||||
Interest expense, net | 0.7 | 1.6 | |||||
Gain on extinguishment of convertible debt | (33.4 | ) | — | ||||
Changes in fair value of earnout liabilities | 0.2 | — | |||||
Changes in fair value of public and private warrant liabilities | 0.5 | (0.1 | ) | ||||
Total other (income) expense, net | (32.0 | ) | 1.5 | ||||
Net income (loss) before provision for income taxes | 37.4 | (14.0 | ) | ||||
Provision for income taxes | 3.2 | — | |||||
Net income (loss) | $ | 34.2 | $ | (14.0 | ) | ||
Net income (loss) per share: | |||||||
Basic | $ | 2.80 | $ | (1.19 | ) | ||
Diluted | $ | 2.60 | $ | (1.19 | ) | ||
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP VARIABLE OPERATING EXPENSES | |||||||
(in millions) | |||||||
(unaudited) | |||||||
For the Three Months Ended | |||||||
2024 | 2023 | ||||||
Operating expenses | $ | 68.2 | $ | 71.4 | |||
Non-variable operating expenses | (44.5 | ) | (46.5 | ) | |||
Non-GAAP variable operating expenses | $ | 23.7 | $ | 24.9 | |||
CALCULATION OF NON-GAAP VARIABLE PROFIT | |||||||
(in millions) | |||||||
(unaudited) | |||||||
For the Three Months Ended | |||||||
2024 | 2023 | ||||||
GAAP operating revenues, net | $ | 73.6 | $ | 58.9 | |||
Non-GAAP variable operating expenses | (23.7 | ) | (24.9 | ) | |||
Non-GAAP variable profit | $ | 49.9 | $ | 34.0 | |||
Non-GAAP variable profit margin | 68 | % | 58 | % | |||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (LOSS) | |||||||
(in millions) | |||||||
(unaudited) | |||||||
For the Three Months Ended | |||||||
2024 | 2023 | ||||||
Net income (loss) | $ | 34.2 | $ | (14.0 | ) | ||
Interest expense, net | 0.7 | 1.6 | |||||
Provision for income taxes | 3.2 | — | |||||
Depreciation and amortization | 1.7 | 1.2 | |||||
Stock-based compensation | 6.1 | 6.8 | |||||
Gain on extinguishment of convertible debt | (33.4 | ) | — | ||||
Changes in fair value of earnout liabilities | 0.2 | — | |||||
Changes in fair value of public and private warrant liabilities | 0.5 | (0.1 | ) | ||||
Adjusted EBITDA (loss) | $ | 13.2 | $ | (4.5 | ) | ||
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS) | |||||||
(in millions, except per share data) | |||||||
(unaudited) | |||||||
For the Three Months Ended | |||||||
2024 | 2023 | ||||||
Net income (loss) | $ | 34.2 | $ | (14.0 | ) | ||
Stock-based compensation | 6.1 | 6.8 | |||||
Gain on extinguishment of convertible debt | (33.4 | ) | — | ||||
Changes in fair value of earnout liabilities | 0.2 | — | |||||
Changes in fair value of public and private warrant liabilities | 0.5 | (0.1 | ) | ||||
Income tax expense related to gain on extinguishment of convertible debt | 0.5 | — | |||||
Adjusted net income (loss) | $ | 8.1 | $ | (7.3 | ) | ||
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Basic | $ | 0.66 | $ | (0.63 | ) | ||
Diluted | $ | 0.62 | $ | (0.63 | ) | ||
LIQUIDITY AND CAPITAL RESOURCES | |||||||
(in millions) | |||||||
(unaudited) | |||||||
2024 | 2023 | ||||||
Cash, cash equivalents and restricted cash | $ | 57.1 | $ | 43.1 | |||
Marketable securities | 1.1 | 1.0 | |||||
Investments | 43.3 | 113.2 | |||||
Working capital | 189.1 | 251.3 | |||||
Total stockholders’ equity | 127.3 | 87.1 | |||||
Source:
2024 GlobeNewswire, Inc., source