Dave (DAVE) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $92.5M, up 41% year-over-year, marking the fourth consecutive quarter of accelerating growth.

• Adjusted EBITDA reached $24.7M, a $27.2M improvement year-over-year, reflecting strong operating leverage and disciplined cost management.

• Net income was $0.5M for Q3 2024, a turnaround from a $12.1M loss in Q3 2023.

• ExtraCash originations hit $1.4B, up 46% year-over-year, with improved credit performance and a 28-day delinquency rate of 1.78%.

• Announced a non-binding letter of intent for a strategic partnership with a major fintech sponsor bank.

Financial highlights

• Q3 2024 revenue: $92.5M (+41% YoY); Adjusted EBITDA: $24.7M (vs. $2.5M loss YoY); net income: $0.5M (vs. $12.1M loss YoY).

• Non-GAAP variable profit: $64.2M (+72% YoY), with a 69% margin.

• ExtraCash originations: $1.4B (+46% YoY, +15% sequentially); Dave Card spend: $407M (+19% YoY).

• CAC at $15, down 14% YoY and 2% sequentially.

• Cash and equivalents: $76.7M at quarter end, down from $89.7M in Q2, mainly due to higher ExtraCash receivables.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $340–$343M (31–32% YoY growth).

• Adjusted EBITDA guidance increased to $71–$74M for 2024.

• Management expects continued growth in processing fees and transaction-based revenues as ExtraCash volume and average sizes increase.

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

• ExtraCash demand, credit performance, and customer acquisition costs remain solid into Q4.