Dave Reports Record Third Quarter 2024 Results and Raises Full Year 2024 Guidance

Core Insights - Dave Inc. reported a record Q3 revenue of $92.5 million, representing a 41% year-over-year growth, marking the fourth consecutive quarter of accelerating revenue growth [1][4] - The company achieved a net income of $0.5 million, an increase of $12.5 million year-over-year, and an adjusted EBITDA of $24.7 million, up $27.2 million year-over-year [1][8] - Dave has raised its 2024 revenue and adjusted EBITDA guidance, now expecting revenues between $340 million and $343 million and adjusted EBITDA between $71 million and $74 million [7][8] Financial Performance - Q3 2024 operating revenues were $92.5 million, up from $65.8 million in Q3 2023, reflecting a 41% increase [4][18] - Adjusted EBITDA margin reached 27%, with a sequential growth of 63% in adjusted EBITDA [8][2] - The company reported a variable profit margin of 69%, up from 57% year-over-year [4][22] Member Growth and Engagement - New members increased by 4% to 854,000, while monthly transacting members rose by 23% to 2.4 million [5] - Customer acquisition costs decreased by 14% to $15, indicating improved efficiency in acquiring new customers [5] - ExtraCash originations increased by 46% to $1.4 billion, with an average 28-day delinquency rate improving by 64 basis points to 1.78% [5] Strategic Developments - The company announced a non-binding letter of intent to form a strategic partnership with a respected fintech sponsor bank to diversify its commercial relationships [3] - This partnership aims to enhance compliance and risk management capabilities for current and future credit and banking products [3] Liquidity Position - As of September 30, 2024, the company had $76.7 million in cash and cash equivalents, down from $89.7 million as of June 30, 2024 [6] - The decrease was primarily due to a $37.7 million increase in ExtraCash receivables [6]