Dave Inc. (Nasdaq: DAVE), one of the nation’s neobanks, reported its financial results for the second quarter ended June 30, 2024.
Jason Wilk, Founder and CEO of Dave, said:
“2024 continues to show impressive results as we exceeded growth and profitability expectations again in the second quarter. Continued strong demand for our products and solid execution from our team led to another record quarter of revenue. Additionally, this is our third consecutive quarter of accelerating revenue growth, fueled by ARPU expansion and an increase in monthly transacting members to a record 2.3 million. The continued efficiency in our customer acquisition, combined with remarkable loss rates powered by CashAI and further rationalization of our fixed expense base, led to a 15% sequential increase in Adjusted EBITDA, which we believe underscores the inherent operating leverage in our business model.”
Quarterly Financial Highlights ($ in millions, unaudited)
Second Quarter 2024 Operating Highlights (vs. Q2 2023)
- New Members totaled 716,000 while customer acquisition costs decreased 26% to $15
- Monthly Transacting Members (“MTMs”) increased 18% to 2.3 million
- ExtraCash originations increased 37% to $1.2 billion, while the average 28-Day
- delinquency rate improved 80 basis points to 2.03%
- Dave Debit Card spend increased 28% to $388 million
The company had $89.7 million of cash and cash equivalents, marketable securities, investments and “restricted cash as of June 30, 2024 compared to $101.5 million at March 31, 2024.”
The reduction was primarily attributed “to an increase in the advance receivables outstanding at quarter-end due largely to an increase in ExtraCash originations in the quarter.”
Also, the company did “not increase utilization of its debt facility during the quarter.”
Dave’s CFO Kyle Beilman, commented:
“We believe this quarter’s performance is further validation of our strong and scalable business model. We are once again raising our Adjusted EBITDA guidance for the year to $40 – $50 million, reflecting our solid year-to-date results and positive outlook for the remainder of the year, and our expectation around loss provision in the back half of the year given quarter-end calendar dynamics in September and December. Credit performance remains strong thus far in the third quarter which we expect to continue for the balance of the year. Overall, with a solid balance sheet and continued focus on efficient growth, we are well-positioned to achieve our growth and profitability objectives.”
As covered, Dave is a U.S. neobank and fintech pioneer “serving millions of everyday Americans. Dave uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents.”