Dave Inc. Q3 FY2025 earnings call

• Q3 was a record quarter with revenue, MTM, ARPU, and adjusted EBITDA growth.
• Clarified net credit revenue metrics, focusing on net monetization rate per ExtraCash transaction, which hit new highs in Q3.
• New pricing model improved credit economics despite controlled higher loss rates, leading to better portfolio spreads and approval limits.
• CashAI v5.5 rolled out in late Q3, driving stronger conversion, higher approval amounts, and improved credit outcomes.
• Strategic growth pillars: efficient member acquisition with stable CAC per new member and improved MTM CAC; strengthening engagement through credit with ExtraCash origination growth; deepening engagement and monetization through Dave Card with increased card spend and subscription revenue.
• Operational updates: Coastal Community Bank onboarding new and existing members, and appointment of Parker Barrile as Chief Product Officer.

In Q3, Dave achieved record results with revenue growing 63% year-over-year to $150.8 million. Monthly transacting members increased 17% to 2.77 million, ARPU expanded by nearly 40%, and adjusted EBITDA was $58.7 million. ExtraCash originations grew 49% Y/Y to surpass $2 billion, with average origination size up 20%. Dave Card total spend grew 25% Y/Y to $510 million, and high-margin subscription revenue grew 57% Y/Y. Revenue contribution from various segments was driven by these growth areas, with ExtraCash and Dave Card being key contributors.

• Raised 2025 revenue guidance to $544 million to $547 million and adjusted EBITDA guidance to $215 million to $218 million.
• Driven by improvements from the new fee model, underwriting enhancements, accelerating MTM growth, rising ARPU, and favorable market conditions.

Q: Jacob Stephan from Lake Street Capital Markets asked about delinquency rates and CashAI v5.5.

A: Jason Wilk stated CashAI v5.5 uses a massive data set of customers' cash flow data with 200 more variables, leading to superior credit performance.

Q: Harold Goetsch from B. Riley Securities asked about the Coastal transition and Parker Barrile.

A: Kyle Beilman said existing customers will be transitioned to Coastal in early 2026, and Jason Wilk mentioned Parker Barrile will lead product strategy including BNPL.

Q: Devin Ryan from Citizens Bank asked about operating leverage and buy now, pay later.

A: Kyle Beilman discussed margin balance and growth investment, and Jason Wilk noted 60% of members engage in BNPL transactions, and Dave has an advantage with cash flow and CashAI underwriting.

Q: Pallav Saini from Canaccord asked about Dave Card adoption and ExtraCash approval rates.

A: Jason Wilk said Dave Card spend grew 25% in Q3, and approval rates are at all-time highs but not disclosed specifically.

Q: Gary Prestopino from Barrington Research asked about Dave Card subscription fee and BNPL product.

A: Jason Wilk clarified the $3 subscription is for new MTMs, and BNPL product is in internal testing with customers expected to test in Q1.

Q: Mark Palmer from Benchmark asked about average ExtraCash Advance size.

A: Kyle Beilman said they expect to continue increasing average origination size with model optimizations and customer tenure growth.

Q: Zachary Gunn from FT Partners asked about yield on processing revenue and off-balance sheet loans.

A: Kyle Beilman said yield increase was from pricing model change, and off-balance sheet loans will have reduced funding obligations but consistent economic exposure.