Dave Inc./DE Q4 FY2023 earnings call

• 2023 was an exceptional year where Dave surpassed guidance on all metrics, achieved profitability in the fourth quarter with $10 million of adjusted EBITDA and positive GAAP net income, and accelerated revenue growth while lowering operating expenses.
• Acquired members efficiently: Added 683,000 new members in the fourth quarter with a low CAC of $15, and CAC decreased by 12% year-over-year. The variable margins were up 2,200 basis points compared to Q2 2022.
• Drove MTM engagement: MTM base grew 9% sequentially and 11% year-over-year in the fourth quarter. Successfully transitioned the $1 multi-subscription program and disbursed over $1 billion in ExtraCash advances in the fourth quarter.
• Improved credit performance: 28-day delinquency rate reached a record low of 2.19% in the fourth quarter, improving 139 basis points year-over-year, due to investments in the proprietary AI-enabled risk management engine CashAI.
• Deepened member relationships: Made progress in driving top of wallet spending behavior through direct deposit, with cross attach rates from ExtraCash to Dave Card reaching approximately 50% among ExtraCash actives, driving Dave Card spending growth.

Total GAAP revenue in the fourth quarter was $73.2 million, up 23% from the fourth quarter of the previous year. Revenue growth was driven by an 11% increase in Monthly Transacting Members (MTMs) and a 9% increase in non-GAAP ARPU. In the fourth quarter, the company added 683,000 new members with a Customer Acquisition Cost (CAC) of $15, the lowest quarterly CAC since the second quarter of 2020. The MTM base grew 9% sequentially and 11% year-over-year. ExtraCash disbursed over $1 billion per quarter in the fourth quarter, representing an 11% growth from the third quarter and a 29% growth from the previous year. Non-GAAP variable profit in the fourth quarter increased 80% to $45.9 million, with a 61% margin relative to non-GAAP revenue, up approximately 2,000 basis points from the fourth quarter of the previous year.

• Expect full year 2024 GAAP revenue to range between $305 million and $325 million, representing 18%-25% growth from 2023.
• Expect 2024 adjusted EBITDA to range between $25 million and $35 million, a $35 million to $45 million improvement from 2023.
• Anticipate the first quarter to be impacted by seasonal effects from tax refunds.
• Forecast modest impact to CAC in 2024 due to election year, though no impact seen in the first quarter so far.
• Plan to make modest investments in product development and data capabilities in 2024 to bolster long-term growth.

• Forward-looking statements are subject to known and unknown risks and uncertainties as described in the company's SEC filings.
• Seasonal impacts from tax refunds may affect business performance in the first quarter.
• Potential impact of election year on CAC, although not seen in the first quarter so far.