In This Article:
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Revenue: $80.1 million, a 31% year-over-year increase.
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Adjusted EBITDA: $15.2 million, compared to a loss of $13.1 million in the prior year period.
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Net Income: $6.4 million, improved from a net loss of $22.6 million in the previous year.
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Adjusted Net Income: $13.7 million, compared to an adjusted net loss of $15.8 million in Q2 2023.
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Monthly Transacting Members (MTM): 2.3 million, an 18% year-over-year increase.
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ARPU (Average Revenue Per User): Increased 11% year-over-year.
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Extra Cash Originations: $1.2 billion, a 37% year-over-year growth.
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Provision for Credit Losses: $14.4 million, decreased 9% year-over-year.
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Cash and Cash Equivalents: $89.7 million as of June 30, 2024.
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Marketing Costs: $10.7 million, a 28% decrease year-over-year.
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Credit Facility Drawn: $75 million as of the end of Q2.
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Guidance for 2024 Revenue: Raised to $310 million - $325 million.
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Guidance for 2024 Adjusted EBITDA: Raised to $40 million - $50 million.
Release Date: August 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Dave Inc (NASDAQ:DAVE) achieved a 31% year-over-year revenue growth in Q2 2024, marking the third consecutive quarter of accelerating growth.
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The company reported a record quarter of adjusted EBITDA, driven by improved profitability and reduced operating expenses.
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Dave Inc (NASDAQ:DAVE) increased its monthly transacting member base to 2.3 million, reflecting an 18% year-over-year growth.
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The company's cash AI underwriting engine contributed to a 37% year-over-year growth in extra cash originations, reaching $1.2 billion.
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Dave Inc (NASDAQ:DAVE) improved its 28-day delinquency rate to 2.03%, down 80 basis points year-over-year, indicating better credit performance.
Negative Points
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Despite revenue growth, Dave Inc (NASDAQ:DAVE) experienced a decrease in cash and cash equivalents, marketable securities, investments, and restricted cash from $101.5 million to $89.7 million.
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The company anticipates an increase in the provision for credit losses in Q3 and Q4 due to calendar dynamics, which may impact profitability.
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Dave Inc (NASDAQ:DAVE) faces potential regulatory challenges, particularly concerning the CFPB's proposed changes to the regulatory framework for the industry.
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The company is evaluating additional sponsor banks to diversify key partner relationships, indicating potential dependency on current banking partners.
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Marketing costs are expected to increase in Q3 to capitalize on demand, which could affect short-term profitability.