Dave Inc. (Nasdaq: DAVE, DAVEW), a neobank on a mission to build products that “level the financial playing field,” recently reported its financial results “for the first quarter ended March 31, 2022.” Dave utilizes Evolve Bank & Trust to provide its digital financial services.
Jason Wilk, Co-Founder and CEO at Dave, stated:
“We experienced record Q1 2022 results, with 24% year over year revenue growth and 340,000 net new members added in the quarter. Our outlook is very positive, and our growth strategy is squarely aligned with the current state of our target consumer. We’re well capitalized and in a unique position to deliver strong performance throughout the rest of the year and beyond. We’ve only scratched the surface of what we can deliver for the 150 million Americans who need our help.”
First Quarter 2022 Highlights:
- Added 340,000 Net New Members, bringing the total to 6.4 million Total Members
1.45 million Monthly Transacting Members - 4.4 Transactions Per Monthly Transacting Member
- GAAP operating revenues, net of $42.6 million, compared to $34.4 million in the first quarter of 2021
- Non-GAAP operating revenues* of $43.7 million, compared to $35.5 million in the first quarter of 2021
- Non-GAAP variable profit margin* of 41%, compared to 64% in the first quarter of 2021
- Net loss of $34.8 million, compared to net income of $3.9 million in the first quarter of 2021
- Adjusted EBITDA* of $(18.3) million, compared to $(8.0) million in the first quarter of 2021
- $302.3 million of cash and marketing securities as of March 31, 2022
As noted in the update, Dave defines Net New Members “as the number of new Members who join the Dave platform in 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 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 of a given period.”
Fiscal Year 2022 Outlook:
The Company reaffirms its previously provided guidance for full year 2022:
- Non-GAAP operating revenues between $200 million and $230 million
- Non-GAAP variable profit margin between 44% and 48%
As covered, Dave is “a banking app on a mission to build products that level the financial playing field.”
Dave’s financial tools, including its debit card and spending account, “help millions of customers bank, budget, avoid overdraft fees, find work and build credit.”
