Dave (DAVE) investor relations material

Business model and customer growth

• ExtraCash links to customers’ existing bank accounts and uses CashAI to assess cash flow; advances up to $500 carry no credit check, interest or late fees, with a 5% origination fee.

• Customer base exceeds 15 million; revenue grew more than 30% for 10 consecutive quarters.

• Addressable market estimated at 180 million Americans; Q3 added 1.1 million members at $22 CAC, with acquisition exceeding 1 million users per quarter.

• Word of mouth drives 30% of acquisition; management cited CAC around $20 historically versus several hundred dollars for competitors pursuing direct deposits.

• Open-platform access through linked bank accounts is positioned as lower-friction than switching banks to access credit.

Underwriting and consumer credit

• AI-based cash-flow underwriting reduced 120-day loss rates from over 5% to nearly 1%, while average origination size rose from $50 in 2017 to $225 as of September.

• ExtraCash average duration is about 10 days; income is up ~10% YoY and wages per user increased to 1.4 from 1.2 last year.

• More than 230 million ExtraCash originations provide model-training data; repeat customers account for about 98% of quarterly originations.

• Customers use about 20% of their total credit wallet share today; management sees room for continued single-digit growth in ExtraCash advance sizes and offers up to $1,000.

• Management described the business as potentially countercyclical, citing rapid portfolio turnover and the ability to serve customers whose credit access tightens in a slower economy.

Flex and product expansion

• Flex combines credit-card spending with repayment across the next four installments; average duration is 45 days, with underwriting reassessed on each application.

• Flex testing showed lower-than-expected acquisition costs, cross-use with ExtraCash and no anticipated cannibalization; combined use is ARPU- and LTV-accretive.

• Flex cross-sold users have stronger retention than baseline ExtraCash users; broader availability is planned for next year, using both existing-customer cross-sell and new acquisition channels.

• Flex advertising has exceeded $1 million; management plans to expand marketing channels and pursue distribution through credit-card platforms such as Credit Karma.

• Subscription revenue grew 72% YoY on a $3 monthly membership fee; Flex adds $9 per month, and subscriptions are expected to become a nine-figure business soon.

• Additional product opportunities include credit for rent and bill payments; two other products are in development, with management citing efficient use of the existing underwriting platform.