Executive Summary

Record Q3 results with GAAP revenue $92.5M (+41% y/y), GAAP net income $0.5M (vs. $(12.1)M y/y), diluted EPS $0.03, and Adjusted EBITDA $24.7M; non‑GAAP variable profit margin reached 69% (up ~1,200–1,300 bps y/y) .
Management raised FY24 guidance: revenue to $340–$343M (from $310–$325M) and Adjusted EBITDA to $71–$74M (from $40–$50M), citing strong ExtraCash demand, credit performance, and CAC efficiency; Adj. EBITDA margin in Q3 was 27% per management .
Strategic LOI signed with a publicly traded parent sponsor bank to diversify bank relationships and enable next‑gen products; costs seen as comparable to existing partner and potential to support a new credit product in 2025 .
Estimate context: Wall Street consensus from S&P Global was unavailable for DAVE this quarter due to missing mapping, so we cannot quantify beats/misses vs consensus.*

What Went Well and What Went Wrong

What Went Well

Accelerating top-line and profitability: revenue +41% y/y to $92.5M; Adj. EBITDA +$27.2M y/y to $24.7M; management highlighted fourth straight quarter of accelerating y/y revenue growth and 63% q/q Adj. EBITDA growth .
Credit performance and margins: 28‑day delinquency improved to 1.78% (−64 bps y/y), supporting a record 69% variable profit margin; provision for credit losses fell 14% y/y to $13.7M despite 46% y/y origination growth, driven by CashAI underwriting .
Efficient growth: MTMs +23% to 2.4M; CAC down 14% y/y to $15 with 4% more new members (854k); Dave Card spend +19% y/y to $407M; ARPU +14% y/y and +11% q/q .

What Went Wrong

Legal accrual weighed on GAAP results: Q3 included a $7.0M accrual related to the FTC matter; adjusted metrics exclude this .
Liquidity optics: cash, equivalents, marketable securities, investments and restricted cash decreased to $76.7M from $89.7M q/q due primarily to a $37.7M quarter‑end timing increase in ExtraCash receivables (day‑of‑week dynamic) .
Outlook caveat on provisions: management expects quarter‑end calendar effects to lift loss provision in Q4 (ends on a Tuesday), potentially offsetting solid underlying credit performance near‑term .

Financial Results

Headline P&L vs Prior Periods

Metric	Q3 2023	Q2 2024	Q3 2024
GAAP Operating Revenues, Net ($M)	$65.8	$80.1	$92.5
GAAP Net Income (Loss) ($M)	$(12.1)	$6.4	$0.5
Diluted EPS ($)	$(1.01)	$0.47	$0.03
Adjusted EBITDA ($M)	$(2.5)	$15.2	$24.7
Non‑GAAP Variable Profit Margin (%)	57%	65%	69%

Notes: Q3 Adj. EBITDA margin was 27% per management commentary .

Revenue Mix

Revenue Component ($M)	Q3 2023	Q3 2024
Service‑based revenue, net	$59.2	$83.4
Transaction‑based revenue, net	$6.6	$9.1
Total operating revenues, net	$65.8	$92.5

KPIs and Operating Metrics

KPI	Q3 2024	YoY Change	QoQ Change
New Members	854,000	+4%	n/a
CAC ($)	$15	−14%	−2%
Monthly Transacting Members	2.4M	+23%	n/a
ExtraCash Originations	$1.4B	+46%	+15%
28‑Day Delinquency Rate	1.78%	−64 bps	−25 bps
Dave Card Spend	$407M	+19%	n/a
ARPU	Not disclosed (level)	+14%	+11%

Liquidity and Capital

Cash, cash equivalents, marketable securities, investments and restricted cash: $76.7M at 9/30/24 vs $89.7M at 6/30/24; decline due to ~$37.7M higher receivables from quarter‑end timing; no increased facility utilization in Q3 .
Credit facility: $75M drawn; amended post‑quarter to increase advance rate by 250 bps (facility size $150M; maturity Dec 15, 2026; pricing unchanged) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Operating Revenues, Net ($M)	FY 2024	$310–$325	$340–$343	Raised
Adjusted EBITDA ($M)	FY 2024	$40–$50	$71–$74	Raised

Management commentary: “record Adjusted EBITDA margin of 27%” in Q3; strong ExtraCash demand, solid credit, and efficient CAC underpin guidance raise .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1–Q2 2024)	Current Period (Q3 2024)	Trend
AI/Technology (CashAI, DaveGPT)	CashAI and DaveGPT highlighted as core levers for underwriting, retention, and support cost efficiency; delinquency improvement and operating leverage noted . Q2 release referenced CashAI’s role in loss rates and margins .	Full‑quarter impact of new underwriting model; variable margin up ~1,300 bps y/y; delinquency 1.78% with 46% y/y origination growth .	Improving
Marketing/CAC	Q1: CAC $16; plan to ramp spend with sub‑6‑month gross profit paybacks . Q2: CAC fell to $15; continued efficiency .	CAC $15 (−14% y/y, −2% q/q); new members +4% with ~10% less marketing; environment rational .	Improving
Product Performance (ExtraCash)	Q1: >$1B originations; delinquency -77 bps y/y to 1.83%; percent-based fees scaled monetization . Q2: originations +37% y/y to $1.2B .	Originations +46% y/y to $1.4B; avg disbursement +17% y/y; strong sequential +15% .	Improving
Banking/Payments (Dave Card, deposits)	Q1: Card spend +34% y/y to $394M; building direct deposit; ~30% of ExtraCash to Dave Card . Q2: Card spend +28% y/y to $388M .	Card spend +19% y/y to $407M; focus to elevate Dave Card in 2025; ~30% of originations go to Dave Card affirmed .	Stable to improving
Regulatory/Legal	Q1: No major actions disclosed on call.	FTC lawsuit acknowledged; $7M accrual booked; management expects to defend vigorously and made no forecast changes .	Emerging headwind
Bank Partner Diversification	Not previously announced.	LOI with new sponsor bank (public parent) to diversify relationships; costs viewed comparable; potential to enable new credit product in 2025 .	Positive development

Management Commentary

“Our fourth consecutive quarter of accelerating year-over-year revenue growth resulted from double-digit increases in both ARPU and monthly transacting members... This resulted in 63% sequential growth in Adjusted EBITDA.” — Jason Wilk, CEO .
“With 41% year-over-year revenue growth and record Adjusted EBITDA margin of 27%, we believe we continue to demonstrate our ability to drive both growth and profitability... We are once again raising our Revenue and Adjusted EBITDA guidance for full year 2024 to $340–$343 million and $71–$74 million, respectively.” — Kyle Beilman, CFO .
On LOI/new sponsor bank: “We believe that the costs are comparable between the 2 banks... this bank can be a very key partner in our ability to get [a new credit product] off the ground.” — Management during Q&A .
On FTC matter: “We believe we have a strong defense… [the suit] pertains to our consumer disclosures and how the company acquires consent… we have not made any changes to our financial forecast as a result of the FTC's action.” — CEO .

Q&A Highlights

Sponsor bank LOI economics and product roadmap: Costs seen comparable; LOI expected to support a new credit product launch in 2025 .
Dave Card growth levers: Plan to merge ExtraCash and banking incentives (including potential rewards) to drive top‑of‑wallet; not reliant on interchange as primary monetization .
Credit performance drivers: CashAI model with more variables and longer tenure boosts loss rates and retention; MTM retention at all‑time highs supports better credit .
Balancing growth and margins: Sub‑6‑month gross profit paybacks enable marketing investment while maintaining profitability; Q3 Adj. EBITDA margin 27%; high flow‑through of incremental gross profit to EBITDA .
Fee model testing: Evaluating a simplified mandatory fee for ExtraCash (replacing tips and instant transfer fees to Dave checking) with goal to maintain/exceed LTV; subscription pricing tests separate and ongoing .
Attach metrics: ~30% of ExtraCash originations to Dave Card remains steady .

Estimates Context

S&P Global consensus for revenue/EPS was unavailable for DAVE this quarter due to a missing mapping, so we cannot quantify beat/miss vs Street. Management stated they “exceeded growth and profitability expectations,” and raised FY24 guidance on the call and in the release .
Implication: Street models may need to move higher on FY24 revenue ($340–$343M) and Adj. EBITDA ($71–$74M), and potentially on FY25 if momentum in CAC efficiency and credit holds .

Key Takeaways for Investors

High‑quality growth: Q3 revenue +41% y/y with record variable margin (69%) and 27% Adj. EBITDA margin underscore operating leverage from CashAI and disciplined CAC .
Positive 2024 reset: Guidance raised materially; execution suggests upside potential if quarter‑end provision quirks normalize and credit quality persists .
Strategic bank diversification: LOI adds optionality and may accelerate product innovation (new credit offering) without sacrificing unit economics .
Monetization evolution: Testing a mandatory ExtraCash fee could simplify the model, reduce regulatory focus areas, and sustain or lift LTV while ARPU trends remain positive .
Near‑term watch items: FTC litigation path (with $7M accrual booked), quarter‑end provision timing effects in Q4, and liquidity balances as receivables fluctuate with timing .
2025 setup: Management plans to invest more in Dave Card primacy (e.g., rewards, direct deposit) to deepen engagement and diversify revenue while maintaining CAC discipline .

Additional source documents consulted for trend context:

Q2 2024 press release: revenue $80.1M (+31% y/y), Adj. EBITDA $15.2M, variable margin 65% .
Q1 2024 earnings call: revenue $73.6M (+25% y/y), Adj. EBITDA $13.2M; details on CashAI/DaveGPT and CAC framework .
Preliminary Q3 results release (11/5): reiterated Q3 revenue $92.5M, net income $0.5M incl. $7M legal accrual, Adj. EBITDA $24.7M .

*Consensus values were unavailable from S&P Global due to a mapping issue; thus, we are unable to provide estimate comparisons this quarter.

Dave Inc./DE (DAVE)·Q3 2024 Earnings Summary