In a release issued under the same headline earlier today
by Dave Inc. (Nasdaq: DAVE, DAVEW), please note the sixth
bulletpoint under "First Quarter 2022 Highlights" should read
"Adjusted EBITDA* of $(18.3) million, compared to $(8.0) million in
the first quarter of 2021" instead of "Adjusted EBITDA* of $18.3
million, compared to $8.0 million in the first quarter of 2021".
The corrected release follows:
Dave Inc. (Nasdaq: DAVE, DAVEW) (“Dave”), a banking app on a
mission to build products that level the financial playing field,
today reported its financial results for the first quarter ended
March 31, 2022.
“We experienced record Q1 2022 results, with 24% year over year
revenue growth and 340,000 net new members added in the quarter,”
said Jason Wilk, Co-Founder and Chief Executive Officer of Dave.
“Our outlook is very positive, and our growth strategy is squarely
aligned with the current state of our target consumer. We’re well
capitalized and in a unique position to deliver strong performance
throughout the rest of the year and beyond. We’ve only scratched
the surface of what we can deliver for the 150 million Americans
who need our help.”
First Quarter 2022 Highlights:
- Added 340,000 Net New Members, bringing the total to 6.4
million Total Members
- 1.45 million Monthly Transacting Members
- 4.4 Transactions Per Monthly Transacting Member
- GAAP operating revenues, net of $42.6 million, compared to
$34.4 million in the first quarter of 2021
- Non-GAAP operating revenues* of $43.7 million, compared to
$35.5 million in the first quarter of 2021
- Non-GAAP variable profit margin* of 41%, compared to 64% in the
first quarter of 2021
- Net loss of $34.8 million, compared to net income of $3.9
million in the first quarter of 2021
- Adjusted EBITDA* of $(18.3) million, compared to $(8.0) million
in the first quarter of 2021
- $302.3 million of cash and marketing securities as of March 31,
2022
Dave defines Net New Members as the number of new Members who
join the Dave platform in given period by connecting an existing
bank account to the Dave service or by opening a new Dave Banking
account, net of the number of accounts deleted by Members or closed
by the Company in the same period. Total Members is defined as the
number of unique Members that have either connected an existing
bank account to the Dave service or have opened a Dave Banking
account, less the number of accounts deleted by Members or closed
by Dave, as measured at the end of a period. The number Monthly
Transacting Members represents the unique number of Members who
have made a funding, spending, ExtraCash or subscription
transaction within a particular month, measured as the average over
a given period. Transactions Per Monthly Transacting Member
measures the average number of transactions initiated per Monthly
Transacting Member in each month, measured as the average of a
given period.
*See reconciliation of the non-GAAP measures at the end of the
press release.
Fiscal Year 2022 Outlook:The Company reaffirms
its previously provided guidance for full year 2022, as shown
below:
- Non-GAAP operating revenues between $200 million and $230
million
- Non-GAAP variable profit margin between 44% and 48%
Conference CallDave will host a conference call
and webcast to discuss first quarter 2022 financial results and
business operations updates today, Wednesday, May 11, 2022,
at 5:30 pm ET. Hosting the call will be Jason Wilk,
Co-Founder and Chief Executive Officer, and Kyle Beilman,
Chief Financial Officer. The conference call will be webcast live
from the Company’s investor relations website
at https://investors.dave.com/. A replay will be available on
the investor relations website following the call.
About DaveDave is a banking app on a mission to
build products that level the financial playing field. Dave’s
financial tools, including its debit card and spending account,
help millions of customers bank, budget, avoid overdraft fees, find
work and build credit. For more information, visit
www.dave.com.
Forward-Looking StatementsThis press release
includes forward-looking statements, which are subject to the “safe
harbor” provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements may be identified by words such as
“feel,” “believes,” expects,” “estimates,” “projects,” “intends,”
“should,” “is to be,” or the negative of such terms, or other
comparable terminology and include, among other things, the
quotations of our Chief Executive Officer and statements regarding
Dave’s future performance and other future events that involve
risks and uncertainties. Such forward-looking statements are not
guarantees of future performance and are subject to risks and
uncertainties, which could cause actual results to differ
materially from the forward-looking statements contained herein due
to many factors, including, but not limited to: the ability of Dave
to compete in its highly competitive industry; the ability of Dave
to keep pace with the rapid technological developments in its
industry and the larger financial services industry; the ability of
Dave to manage its growth as a public company; disruptions to
Dave’s operations as a result of becoming a public company; the
ability of Dave to protect intellectual property and trade secrets;
changes in applicable laws or regulations and extensive and
evolving government regulations that impact operations and
business; the ability to attract or maintain a qualified workforce;
level of product service failures that could lead Dave members to
use competitors’ services; investigations, claims, disputes,
enforcement actions, litigation and/or other regulatory or legal
proceedings; the effects of the COVID-19 pandemic on Dave’s
business; the possibility that Dave may be adversely affected by
other economic, business, and/or competitive factors; and those
factors discussed in Dave’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission (the “SEC”) on March 25,
2022 and subsequent Quarterly Reports on Form 10-Q under the
heading “Risk Factors,” filed with the SEC and other reports and
documents Dave files from time to time with the SEC. Any
forward-looking statements speak only as of the date on which they
are made, and Dave undertakes no obligation to update any
forward-looking statement to reflect events or circumstances after
the date of this press release.
Non-GAAP Financial InformationThis press
release contains references to Adjusted EBITDA, non-GAAP operating
revenues, non-GAAP operating expenses, non-GAAP variable profit and
non-GAAP variable profit margin of Dave, which are adjusted from
results based on generally accepted accounting principles in the
United States (“GAAP”) and exclude certain expenses, gains and
losses. The Company defines and calculates Adjusted EBITDA as net
loss attributable to Dave before the impact of interest income or
expense, provision for income taxes, depreciation and amortization,
and adjusted to exclude legal settlement and litigation expenses,
other strategic financing and transaction expenses, stock-based
compensation expense, and certain other non-core items. The Company
defines and calculates non-GAAP operating revenues as operating
revenues, net excluding direct loan origination costs and ATM fees.
The Company defines and calculates non-GAAP operating expenses as
operating expenses excluding non-variable operating expenses. The
Company defines non-variable operating expenses as all advertising
and marketing operating expenses, compensation and benefits
operating expenses, and certain operating expenses (legal, rent,
technology/infrastructure, depreciation, amortization, charitable
contributions, other operating expenses, one-time Member account
activation costs and non-recurring Dave Banking expenses). The
Company defines and calculates non-GAAP variable profit as non-GAAP
operating revenues excluding non-GAAP operating expenses. The
Company defines and calculates non-GAAP variable profit margin as
non-GAAP variable profit as a percent of non-GAAP operating
revenues.
These non-GAAP financial measures are provided to enhance the
user’s understanding of our prospects for the future and the
historical performance for the context of the investor. The
Company’s management team uses these non-GAAP financial measures in
assessing performance, as well as in planning and forecasting
future periods. These non-GAAP financial measures are not computed
according to GAAP and the methods the Company uses to compute them
may differ from the methods used by other companies. Non-GAAP
financial measures are supplemental, should not be considered a
substitute for financial information presented in accordance with
GAAP and should be read only in conjunction with our consolidated
financial statements prepared in accordance with GAAP.
Refer to the attached financial supplement for a reconciliation
of these non-GAAP financial measures to their most directly
comparable GAAP measures for the three months ended March 31, 2022
and 2021.
DaveMediapress@dave.com
InvestorsDaveIR@icrinc.com
|
|
|
|
DAVE INC.
AND SUBSIDIARIES |
|
CONSOLIDATED
STATEMENTS OF OPERATIONS |
|
(in millions) |
|
(unaudited) |
|
|
|
Q1 2022 |
|
Q1 2021 |
|
|
|
|
|
|
|
Operating revenues: |
|
|
|
|
|
Service based revenue, net |
|
$ |
39.3 |
|
|
$ |
32.4 |
|
|
Transaction based revenue, net |
|
|
3.3 |
|
|
|
2.0 |
|
|
Total operating revenues, net |
|
|
42.6 |
|
|
|
34.4 |
|
|
Operating expenses: |
|
|
|
|
|
Provision for unrecoverable advances |
|
|
13.8 |
|
|
|
3.5 |
|
|
Processing and servicing fees |
|
|
6.5 |
|
|
|
5.2 |
|
|
Advertising and marketing |
|
|
12.2 |
|
|
|
14.0 |
|
|
Compensation and benefits |
|
|
17.9 |
|
|
|
9.4 |
|
|
Other operating expenses |
|
|
14.8 |
|
|
|
12.6 |
|
|
Total operating expenses |
|
|
65.2 |
|
|
|
44.7 |
|
|
Other (income) expenses: |
|
|
|
|
|
Interest expense, net |
|
|
1.5 |
|
|
|
0.2 |
|
|
Legal settlement and litigation expenses |
|
|
— |
|
|
|
0.4 |
|
|
Other strategic financing and transactional expenses |
|
|
1.0 |
|
|
|
0.1 |
|
|
Changes in fair value of derivative asset on loans to
stockholders |
|
|
5.6 |
|
|
|
(17.1 |
) |
|
Changes in fair value of warrant liability |
|
|
4.1 |
|
|
|
2.2 |
|
|
Total other expense (income), net |
|
|
12.2 |
|
|
|
(14.2 |
) |
|
Net
(loss) income before provision for income taxes |
|
|
(34.8 |
) |
|
|
3.9 |
|
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
Net
(loss) income |
|
$ |
(34.8 |
) |
|
$ |
3.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE INC.
AND SUBSIDIARIES |
|
LIQUIDITY
AND CAPITAL RESOURCES |
|
(in millions) |
|
|
|
|
|
|
|
|
|
March
31, |
|
December
31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash |
|
$ |
24.0 |
|
|
$ |
32.4 |
|
|
Marketable
securities |
|
|
278.3 |
|
|
|
8.2 |
|
|
Working
capital |
|
|
316.2 |
|
|
|
31.6 |
|
|
Total
stockholders’ equity |
|
|
174.4 |
|
|
|
38.7 |
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
|
March 31, |
|
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
Cash
(used in) provided by: |
|
|
|
|
|
Operating activities |
|
$ |
(37.5 |
) |
|
$ |
2.6 |
|
|
Investing activities |
|
|
(272.6 |
) |
|
|
0.6 |
|
|
Financing activities |
|
|
301.7 |
|
|
|
15.6 |
|
|
Net
(decrease) increase in cash, cash equivalents and restricted
cash |
|
$ |
(8.4 |
) |
|
$ |
18.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE INC.
AND SUBSIDIARIES |
|
RECONCILIATION OF NET LOSS TO ADJUSTED EBITDA |
|
(in millions) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Q1 2022 |
|
Q1 2021 |
|
|
|
|
|
|
|
Net
loss |
|
$ |
(34.8 |
) |
|
$ |
3.9 |
|
|
Interest expense (income), net |
|
|
1.5 |
|
|
|
0.2 |
|
|
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
Depreciation and amortization |
|
|
1.1 |
|
|
|
0.6 |
|
|
Stock-based compensation |
|
|
3.2 |
|
|
|
1.7 |
|
|
Legal settlement and litigation expenses |
|
|
— |
|
|
|
0.4 |
|
|
Other strategic financing and transactional expenses |
|
|
1.0 |
|
|
|
0.1 |
|
|
Changes in fair value of derivative asset on loans to
stockholders |
|
|
5.6 |
|
|
|
(17.1 |
) |
|
Changes in fair value of warrant liability |
|
|
4.1 |
|
|
|
2.2 |
|
|
Adjusted EBITDA |
|
$ |
(18.3 |
) |
|
$ |
(8.0 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
DAVE INC.
AND SUBSIDIARIES |
|
RECONCILIATION OF TOTAL OPERATING REVENUES, NET TO NON-GAAP
TOTAL OPERATING REVENUES |
|
(in millions) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Q1 2022 |
|
Q1 2021 |
|
|
|
|
|
|
|
Operating revenues, net |
|
$ |
42.6 |
|
|
$ |
34.4 |
|
|
ExtraCash origination and ATM-related fees |
|
|
1.1 |
|
|
|
1.1 |
|
|
Non-GAAP operating revenues |
|
$ |
43.7 |
|
|
$ |
35.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF TOTAL OPERATING EXPENSES TO NON-GAAP
TOTAL OPERATING EXPENSES |
|
(in millions) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Q1 2022 |
|
Q1 2021 |
|
|
|
|
|
|
|
Operating expenses |
|
$ |
65.2 |
|
|
$ |
44.7 |
|
|
Non-variable operating expenses |
|
|
(39.3 |
) |
|
|
(32.0 |
) |
|
Non-GAAP operating expenses |
|
$ |
25.9 |
|
|
$ |
12.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CALCULATION
OF NON-GAAP VARIABLE PROFIT |
|
(in millions) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Q1 2022 |
|
Q1 2021 |
|
|
|
|
|
|
|
Non-GAAP operating revenues |
|
$ |
43.7 |
|
|
$ |
35.5 |
|
|
Non-GAAP operating expenses |
|
|
(25.9 |
) |
|
|
(12.7 |
) |
|
Non-GAAP variable profit |
|
$ |
17.8 |
|
|
$ |
22.8 |
|
|
Non-GAAP variable profit margin |
|
|
41 |
% |
|
|
64 |
% |
|
|
|
|
|
|
|
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