Dave (DAVE) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 revenue of $80.1M, up 31% year-over-year, marking the third consecutive quarter of accelerating growth and record Adjusted EBITDA of $15.2M, a $28.3M improvement from Q2 2023.

• Net income improved to $6.4M in Q2 2024 from a $22.6M loss in Q2 2023, with $40.6M net income for H1 2024.

• Monthly transacting members reached a record 2.3M, up 18% year-over-year, with 716,000 new members acquired at a CAC of $15.

• Operating expenses declined for the fifth straight quarter, driving improved profitability.

• Repurchased $105.7M in convertible notes for $71.0M, resulting in a $33.4M gain on extinguishment.

Financial highlights

• Q2 2024 revenue was $80.1M, up 31% year-over-year, with GAAP net income of $6.4M and Adjusted EBITDA of $15.2M.

• Non-GAAP variable profit rose 57% year-over-year to $51.8M, with a 65% margin.

• Cash and equivalents stood at $89.7M as of June 30, 2024, down from $101.5M at March 31, 2024, due to higher receivables.

• Provision for credit losses fell 9–10% year-over-year to $14.4M, or 1.2% of originations.

• Adjusted net income was $13.7M, versus a $15.8M adjusted net loss in Q2 2023.

Outlook and guidance

• FY 2024 revenue guidance raised to $310–$325M, representing 20–25% year-over-year growth.

• FY 2024 Adjusted EBITDA guidance increased to $40–$50M, up from prior guidance.

• Management expects continued strong credit performance, efficient growth, and increased marketing investment in Q3.

• Cash on hand expected to be sufficient to fund operations and capital expenditures for at least 12 months.