Dave Inc./DE Q1 FY2025 earnings call

• The company reported a record-setting first quarter with top-line growth accelerating to its highest level since 2021.
• Adjusted EBITDA growth was 235% to $44.2 million, driven by operating leverage and variable margin expansion.
• Transitioned to a new ExtraCash fee structure on February 19, with results better than expected, unlocking enhanced member lifetime value.
• Strategic growth pillars: efficient member acquisition with 15% year-over-year member growth; enhanced ExtraCash engagement with MTMs at a record high and ExtraCash originations up 46%; deepening relationships via Dave Card with spending up 24% year-over-year.
• Strategic partnership with Coastal Community Bank to take over support of ExtraCash and banking products, with onboarding to begin in early Q3.
• Litigation with the Department of Justice: motion to dismiss filed, with a ruling expected in Q3 2025.

Total revenue for Q1 2025 reached a record high of $108 million, representing a year-over-year growth of 47%. Adjusted EBITDA grew 235% to $44.2 million. Total members grew 15% year-over-year to 12.4 million. Monthly transacting members (MTMs) were up 13% year-over-year to a record 2.5 million. ExtraCash originations exceeded $1.5 billion, a 46% year-over-year increase. Revenue contribution from various segments was driven by growth in members, ARPU, and ExtraCash origination volumes.

• Raised full year 2025 guidance for revenue to a range of $460 million to $475 million (33%-37% growth year-over-year).
• Raised adjusted EBITDA guidance to a range of $155 million to $165 million, reflecting approximately 79%-91% growth versus 2024.
• Anticipate variable margins to be in the upper 60s to low 70s range for the remainder of the year.

• Litigation with the Department of Justice: the company filed a motion to dismiss the lawsuit, but a ruling is expected in Q3 2025, and the company remains confident in its legal position but will vigorously defend itself.

Q: Devin Ryan asked about market share of ExtraCash and if larger advance sizes lead to fewer advances per member.

A: Jason Wilk stated TAM is massive with room to run, and larger advance sizes don't reduce advances as it's tied to paycheck dates; new products could enter for longer duration.

Q: Joseph Vafi asked about correlation between new price structure and credit performance and ARPU/M TM growth.

A: Kyle Beilman said no negative impact on credit performance, and guide assumes further ARPU increases with M TM growth opportunities.

Q: Harold Goetsch asked about reengagement of former customers and larger ExtraCash origination sizes.

A: Jason Wilk said reengagement is business as usual, and larger sizes are due to repeat borrowing and better credit for new customers via Cash AI.

Q: Jacob Stephan asked about customer acquisition cost increase.

A: Jason Wilk said focus is on LTV optimization, not lowest CAC, with better returns from channel optimization.

Q: Jeff Cantwell asked about Dave Card traction and ARPU.

A: Jason Wilk said synergy between ExtraCash and Dave Card, testing rewards, and ARPU largely driven by new fee structure; Kyle Beilman added Dave Card adoption and Cash AI optimization as levers for ARPU.

Q: Gary Prestopino asked about repeat users and product development expenditures.

A: Kyle Beilman said high repeat usage (97%-98% dollar value originations to repeat customers), and disciplined investments in product development and data capabilities throughout the year.