DAVE Earnings Prediction
The chart below shows how DAVE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DAVE sees a +3.94% change in stock price 10 days leading up to the earnings, and a +2.29% change 10 days following the report. On the earnings day itself, the stock moves by +8.87%. This data can give you a slight idea of what to expect for the next quarter's release.
DAVE Key Earning Data
DAVE Earnings Analysis
Positive
Quarterly Revenue Milestone: Record-setting fourth quarter with over $100 million in quarterly revenue and more than $30 million in adjusted EBITDA for the first time.
Strong Performance and Execution: Exceeded original and updated guidance for 2024, demonstrating strong execution and outperformance across all key business areas.
MTM Growth and Retention: Multi-transacting member (MTM) growth of 17% year-over-year, supported by stable customer acquisition costs (CAC) and enhanced member retention.
ARPU Growth Drivers: Average revenue per user (ARPU) increased by 18% year-over-year, driven by higher engagement and monetization from ExtraCash and the Dave Card.
Credit Performance Improvement: Improved credit performance with a 24% year-over-year reduction in the 28-day delinquency rate, showcasing the effectiveness of the V5 cash AI underwriting model.
Fee Structure Transition Success: Successful transition to a new fee structure for ExtraCash, which is expected to enhance member experience and align monetization with member needs.
Strategic Partnership Enhancement: Strategic partnership with Coastal Community Bank to leverage their scale and compliance capabilities, enhancing product offerings and market position.
Record Non-GAAP Variable Profit: Achieved a record non-GAAP variable profit of $72.6 million, reflecting a 72% margin relative to total revenue, driven by lower provision expenses and improved credit performance.
Net Income Improvement: GAAP net income improved significantly to $16.8 million, marking a substantial increase from the previous year.
2025 Growth Projections: Expectations for continued growth in 2025 with projected GAAP revenue between $415 million and $435 million, and adjusted EBITDA between $110 million and $120 million.
Negative
Marketing Spend Impact on CAC: Increased marketing spend by 26% led to a 12% increase in CAC, indicating higher costs for acquiring new customers.
Credit Loss Provision Increase: The provision for credit losses increased by 15% year-over-year, reflecting higher origination volumes despite improved credit performance.
Credit Risk Management Concerns: The loss provision as a percentage of extra cash originations increased from 1.01% in Q3 to 1.12% in Q4, indicating potential concerns about credit risk management.
Compensation Expense Increase: Compensation-related expenses grew to $27.2 million in Q4, up from $23.5 million in the prior year, largely due to stock-based compensation increases.
Litigation Expense Increase: Legal fees incurred related to the FTC and DOJ litigation added to other operating expenses, which increased by 9% year-over-year.
Litigation Risks and Impact: The company faced litigation from the FTC and DOJ, which could pose risks to its operations and reputation.
DAVE FAQs
How does DAVE typically perform around its earnings report dates?
DAVE's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +3.94% change leading up to the report and a +2.29% change in the 10 days following the release.
Is Dave Inc (DAVE) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
DAVE Earning Call Sentiment
Dave Inc. (DAVE) Q4 2024 Earnings Call Transcript
DAVE.O
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