Dave Inc. (Nasdaq: DAVE, DAVEW) (“Dave”), a banking app on a
mission to build products that level the financial playing field,
today reported its financial results for the second quarter ended
June 30, 2022.
“We experienced strong second quarter 2022 results, with
Non-GAAP operating revenue growth of 22.4% compared to the prior
year period,” said Jason Wilk, Co-Founder and Chief Executive
Officer of Dave. “We also experienced record high engagement in
terms of average Monthly Transacting Members and Transactions Per
Monthly Transacting Member and strong new user growth, adding
560,000 net new Members in Q2 2022. Dave is designed as the perfect
banking solution for everyday Americans trying to navigate the
current inflationary and waning stimulus environment. Additionally,
our new ExtraCash value propositions around our $500 ExtraCash
limits, Cash back and Instant spending capability with Dave Banking
strengthens our position as the industry leader in overdraft.
Following the success of our marketing initiatives this summer, we
are shifting some near-term investment from new member growth to
lifetime value growth in light of the current high cost of capital
environment. With this shift, we anticipate we can still maintain
strong growth while significantly de-risking our path to
profitability without relying on raising additional equity
capital.”
Second Quarter 2022 Highlights:
- Added 560,000 Net New Members, bringing total Members to
approximately 7 million
- 1.54 million Monthly Transacting Members
- 4.5 Transactions Per Monthly Transacting Member
- Non-GAAP operating revenues* of $47.0 million, compared to
$38.4 million in the second quarter of 2021
- Non-GAAP variable profit margin* of 39%, compared to 55% in the
second quarter of 2021
- 28-day delinquency rate of 3.71%, a 75 basis point improvement
compared to the second quarter of 2021
- Adjusted EBITDA* loss of $28.5 million, compared to Adjusted
EBITDA* loss of $4.5 million in the second quarter of 2021
- $257.3 million of cash and cash equivalents, restricted cash,
marketable securities and short-term investments as of June 30,
2022
*See reconciliation of the non-GAAP measures at the end of the
press release.
Fiscal Year 2022 Outlook:The Company is
revising its outlook for the year, and now expects the following
for fiscal year 2022:
- Non-GAAP operating revenues between $200 million and $215
million
- Non-GAAP variable profit margin between 40% and 44%
Conference CallDave will host a conference call
and webcast to discuss second quarter 2022 financial results and
business operations updates today, Thursday, August 11, 2022,
at 5:30 pm ET. Hosting the call will be Jason Wilk,
Co-Founder and Chief Executive Officer, and Kyle Beilman,
Chief Financial Officer. The conference call will be webcast live
from the Company’s investor relations website
at https://investors.dave.com/. A replay will be available on
the investor relations website following the call.
Forward-Looking StatementsThis press release
includes forward-looking statements, which are subject to the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements may be identified by words such as
“feel,” “believes,” expects,” “estimates,” “projects,” “intends,”
“should,” “is to be,” or the negative of such terms, or other
comparable terminology and include, among other things, the
quotations of our Chief Executive Officer and statements regarding
Dave’s future performance and other future events that involve
risks and uncertainties. Such forward-looking statements are not
guarantees of future performance and are subject to risks and
uncertainties, which could cause actual results to differ
materially from the forward-looking statements contained herein due
to many factors, including, but not limited to: the ability of Dave
to compete in its highly competitive industry; the ability of Dave
to keep pace with the rapid technological developments in its
industry and the larger financial services industry; the ability of
Dave to manage its growth as a public company; disruptions to
Dave’s operations as a result of becoming a public company; the
ability of Dave to remediate material weaknesses in Dave’s internal
controls over financial reporting and maintain an effective system
of internal control over financial reporting; the ability of Dave
to protect intellectual property and trade secrets; changes in
applicable laws or regulations and extensive and evolving
government regulations that impact operations and business; the
ability to attract or maintain a qualified workforce; level of
product service failures that could lead Dave members to use
competitors’ services; investigations, claims, disputes,
enforcement actions, litigation and/or other regulatory or legal
proceedings; the effects of the COVID-19 pandemic on Dave’s
business; the possibility that Dave may be adversely affected by
other economic, business, and/or competitive factors; and those
factors discussed in Dave’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission (the “SEC”) on March 25,
2022 and subsequent Quarterly Reports on Form 10-Q under the
heading “Risk Factors,” filed with the SEC and other reports and
documents Dave files from time to time with the SEC. Any
forward-looking statements speak only as of the date on which they
are made, and Dave undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this press release.
Non-GAAP Financial InformationThis press
release contains references to Adjusted EBITDA, non-GAAP operating
revenues, non-GAAP operating expenses, non-GAAP variable profit and
non-GAAP variable profit margin of Dave, which are adjusted from
results based on generally accepted accounting principles in the
United States (“GAAP”) and exclude certain expenses, gains and
losses. The Company defines and calculates Adjusted EBITDA as net
loss attributable to Dave before the impact of interest income or
expense, provision for income taxes, depreciation and amortization,
and adjusted to exclude legal settlement and litigation expenses,
other strategic financing and transaction expenses, stock-based
compensation expense, and certain other non-core items. The Company
defines and calculates non-GAAP operating revenues as operating
revenues, net excluding direct loan origination costs and ATM fees.
The Company defines and calculates non-GAAP operating expenses as
operating expenses excluding non-variable operating expenses. The
Company defines non-variable operating expenses as all advertising
and marketing operating expenses, compensation and benefits
operating expenses, and certain operating expenses (legal, rent,
technology/infrastructure, depreciation, amortization, charitable
contributions, other operating expenses, one-time Member account
activation costs and non-recurring Dave Banking expenses). The
Company defines and calculates non-GAAP variable profit as non-GAAP
operating revenues excluding non-GAAP operating expenses. The
Company defines and calculates non-GAAP variable profit margin as
non-GAAP variable profit as a percent of non-GAAP operating
revenues.
These non-GAAP financial measures are provided to enhance the
user’s understanding of our prospects for the future and the
historical performance for the context of the investor. The
Company’s management team uses these non-GAAP financial measures in
assessing performance, as well as in planning and forecasting
future periods. These non-GAAP financial measures are not computed
according to GAAP and the methods the Company uses to compute them
may differ from the methods used by other companies. Non-GAAP
financial measures are supplemental, should not be considered a
substitute for financial information presented in accordance with
GAAP and should be read only in conjunction with our consolidated
financial statements prepared in accordance with GAAP.
Refer to the attached financial supplement for a reconciliation
of these non-GAAP financial measures to their most directly
comparable GAAP measures for the three and six months ended June
30, 2022 and 2021.
Dave defines Net New Members as the number of new Members who
join the Dave platform in a 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.
About DaveDave 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. For more information, visit www.dave.com.
DaveMediapress@dave.com
InvestorsDaveIR@icrinc.com
|
DAVE INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three MonthsEnded June 30, |
|
For the Six MonthsEnded June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
|
|
|
Service based revenue, net |
|
$ |
43.0 |
|
|
$ |
34.4 |
|
|
$ |
82.3 |
|
|
$ |
66.8 |
|
Transaction based revenue, net |
|
|
2.8 |
|
|
|
2.8 |
|
|
|
6.1 |
|
|
|
4.9 |
|
Total operating revenues, net |
|
|
45.8 |
|
|
|
37.2 |
|
|
|
88.4 |
|
|
|
71.7 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
Provision for unrecoverable advances |
|
|
13.9 |
|
|
|
7.4 |
|
|
|
27.6 |
|
|
|
10.9 |
|
Processing and servicing fees |
|
|
7.6 |
|
|
|
5.5 |
|
|
|
14.1 |
|
|
|
10.7 |
|
Advertising and marketing |
|
|
20.8 |
|
|
|
11.9 |
|
|
|
33.0 |
|
|
|
25.9 |
|
Compensation and benefits |
|
|
39.1 |
|
|
|
9.9 |
|
|
|
57.0 |
|
|
|
19.3 |
|
Other operating expenses |
|
|
17.4 |
|
|
|
8.8 |
|
|
|
32.3 |
|
|
|
21.5 |
|
Total operating expenses |
|
|
98.8 |
|
|
|
43.5 |
|
|
|
164.0 |
|
|
|
88.3 |
|
Other expenses (income): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
1.6 |
|
|
|
0.4 |
|
|
|
3.2 |
|
|
|
0.6 |
|
Legal settlement and litigation expenses |
|
|
— |
|
|
|
0.2 |
|
|
|
— |
|
|
|
0.6 |
|
Other strategic financing and transactional expenses |
|
|
1.9 |
|
|
|
0.1 |
|
|
|
2.8 |
|
|
|
0.2 |
|
Gain on extinguishment of liability |
|
|
(4.3 |
) |
|
|
— |
|
|
|
(4.3 |
) |
|
|
— |
|
Changes in fair value of earnout liabilities |
|
|
(7.6 |
) |
|
|
— |
|
|
|
(9.6 |
) |
|
|
— |
|
Changes in fair value of derivative asset on loans to
stockholders |
|
|
— |
|
|
|
(6.9 |
) |
|
|
5.6 |
|
|
|
(24.0 |
) |
Changes in fair value of warrant liabilities |
|
|
(17.5 |
) |
|
|
0.7 |
|
|
|
(13.5 |
) |
|
|
2.9 |
|
Total other income, net |
|
|
(25.9 |
) |
|
|
(5.5 |
) |
|
|
(15.8 |
) |
|
|
(19.7 |
) |
Net (loss) income before provision for income
taxes |
|
|
(27.1 |
) |
|
|
(0.8 |
) |
|
|
(59.8 |
) |
|
|
3.1 |
|
Provision for income taxes |
|
|
— |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
— |
|
Net (loss) income |
|
$ |
(27.1 |
) |
|
$ |
(0.9 |
) |
|
$ |
(59.9 |
) |
|
$ |
3.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE INC. AND SUBSIDIARIES |
RECONCILIATION OF OPERATING REVENUES, NET TO NON-GAAP
OPERATING REVENUES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three MonthsEnded June 30, |
|
For the Six MonthsEnded June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Operating revenues, net |
|
$ |
45.8 |
|
|
$ |
37.2 |
|
|
$ |
88.4 |
|
|
$ |
71.7 |
|
ExtraCash origination and ATM-related fees |
|
|
1.2 |
|
|
|
1.2 |
|
|
|
2.3 |
|
|
|
2.2 |
|
Non-GAAP operating revenues |
|
$ |
47.0 |
|
|
$ |
38.4 |
|
|
$ |
90.7 |
|
|
$ |
73.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF OPERATING EXPENSES TO NON-GAAP OPERATING
EXPENSES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three MonthsEnded June 30, |
|
For the Six MonthsEnded June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
$ |
98.8 |
|
|
$ |
43.5 |
|
|
$ |
164.0 |
|
|
$ |
88.3 |
|
Non-variable operating expenses |
|
|
(70.3 |
) |
|
|
(26.4 |
) |
|
|
(109.6 |
) |
|
|
(58.3 |
) |
Non-GAAP operating expenses |
|
$ |
28.5 |
|
|
$ |
17.1 |
|
|
$ |
54.4 |
|
|
$ |
30.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION OF NON-GAAP VARIABLE PROFIT |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three MonthsEnded June 30, |
|
For the Six MonthsEnded June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating revenues |
|
$ |
47.0 |
|
|
$ |
38.4 |
|
|
$ |
90.7 |
|
|
$ |
73.9 |
|
Non-GAAP operating expenses |
|
|
(28.5 |
) |
|
|
(17.1 |
) |
|
|
(54.4 |
) |
|
|
(30.0 |
) |
Non-GAAP variable profit |
|
$ |
18.5 |
|
|
$ |
21.3 |
|
|
$ |
36.3 |
|
|
$ |
43.9 |
|
Non-GAAP variable profit margin |
|
|
39 |
% |
|
|
55 |
% |
|
|
40 |
% |
|
|
59 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE INC. AND SUBSIDIARIES |
RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED
EBITDA |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three MonthsEnded June 30, |
|
For the Six MonthsEnded June 30, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(27.1 |
) |
|
$ |
(0.9 |
) |
|
$ |
(59.9 |
) |
|
$ |
3.1 |
|
Interest expense, net |
|
|
1.6 |
|
|
|
0.4 |
|
|
|
3.2 |
|
|
|
0.6 |
|
Provision for income taxes |
|
|
- |
|
|
|
0.1 |
|
|
|
0.1 |
|
|
|
- |
|
Depreciation and amortization |
|
|
1.6 |
|
|
|
0.7 |
|
|
|
2.7 |
|
|
|
1.3 |
|
Stock-based compensation |
|
|
22.9 |
|
|
|
1.1 |
|
|
|
26.0 |
|
|
|
2.8 |
|
Legal settlement and litigation expenses |
|
|
- |
|
|
|
0.2 |
|
|
|
- |
|
|
|
0.6 |
|
Other strategic financing and transactional expenses |
|
|
1.9 |
|
|
|
0.1 |
|
|
|
2.8 |
|
|
|
0.2 |
|
Gain on extinguishment of liability |
|
|
(4.3 |
) |
|
|
- |
|
|
|
(4.3 |
) |
|
|
- |
|
Changes in fair value of earnout liabilities |
|
|
(7.6 |
) |
|
|
- |
|
|
|
(9.6 |
) |
|
|
- |
|
Changes in fair value of derivative asset on loans to
stockholders |
|
|
- |
|
|
|
(6.9 |
) |
|
|
5.6 |
|
|
|
(24.0 |
) |
Changes in fair value of warrant liabilities |
|
|
(17.5 |
) |
|
|
0.7 |
|
|
|
(13.5 |
) |
|
|
2.9 |
|
Adjusted EBITDA loss |
|
$ |
(28.5 |
) |
|
$ |
(4.5 |
) |
|
$ |
(46.9 |
) |
|
$ |
(12.5 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE INC. AND SUBSIDIARIES |
LIQUIDITY AND CAPITAL RESOURCES |
(in millions) |
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
|
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents and restricted cash |
|
$ |
26.8 |
|
|
$ |
32.4 |
|
|
|
|
|
Marketable securities |
|
|
36.1 |
|
|
|
8.2 |
|
|
|
|
|
Short-term investments |
|
|
194.4 |
|
|
|
— |
|
|
|
|
|
Working capital |
|
|
288.2 |
|
|
|
31.6 |
|
|
|
|
|
Total stockholders’ equity |
|
|
163.3 |
|
|
|
38.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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