Dave outperformed fourth-quarter expectations, driven by an increase in members and loan originations.
The neobank posted $33 million in adjusted earnings before interest, taxes, depreciation and amortization in the three months ended Dec. 31, according to its earnings report, up from $10 million a year ago. Analysts polled by S&P had expected $19.1 million.
Revenue rose 38% from a year ago to $101 million in the quarter.
«As we entered 2024, we had high expectations and I’m proud to say that we not only surpassed our original guidance from last year, but also exceeded the updated guidance provided in Q1, Q2 and Q3,» said Dave founder and CEO Jason Wilk on the company’s Tuesday morning earnings call. «This outperformance was driven by strength across all key areas of our business.»
Dave’s stock opened at $93 on Tuesday, down 2.1% from Monday’s close. In late afternoon trade, the stock was down 4.1% as the market overall soured due to the Trump administration’s tariffs taking effect.
Total membership grew 16% year-over-year to a reported 12.1 million members at the close of the fourth quarter. The neobank said more than 75% of its customers are millennials or Gen Z and it sees room for further growth in the sector. The fourth quarter saw 766,000 new members, up 12% year-over-year but with a 26% increase in marketing spending.
«This strong performance was driven by a 17% growth in [monthly transacting members] and an 18% increase in [average revenue per user], reflecting increased engagement and monetization for both ExtraCash and the Dave Card,» Chief Financial Officer Kyle Beilman said on the call. «Our disciplined approach to member acquisition has amplified the impact of our marketing investments.»
Founded in 2017, Dave grew through a focus on interest-free cash advances through its ExtraCash product. Dave uses an AI-based underwriting model it calls CashAI to determine interest-free cash advances of up to $500. The model relies on metrics like income, bank balances, spending patterns and customers’ track record with the company to determine approval, instead of relying on a traditional credit score.
«This is our sixth consecutive quarter of double-digit [average revenue per user] expansion on a year-over-year basis, given the progress we’ve made increasing ExtraCash disbursement amounts, which was up 17% year-over-year and 4% sequentially in Q4,» Wilk said. «With our new fee model structure fully implemented as of last month, we anticipate further [average revenue per user] expansion in 2025.»
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The company shifted its ExtraCash product fee model to a simplified 5% fee structure with a $5 minimum and $15 cap with no extra fees for instant transfers between ExtraCash to Dave Checking accounts. The transition to the new fee structure began in the fourth quarter of 2024 and was completed in February.
«The [average revenue per user] increase was fueled by higher engagement and monetization of ExtraCash, supported by CashAI optimization as well as stronger Dave Card adoption and higher levels of card spend,» Beilman said. «We believe that our product roadmap between ExtraCash and Dave Card will continue to drive [average revenue per user] expansion this year.»
Dave reported 44% year-over-year growth in ExtraCash origination volume.
«Even with the $1.5 billion in ExtraCash origination in Q4, our net receivables was just $176 million at quarter end, further highlighting the capital efficient nature of our balance sheet,» Wilk said. «As we progress through the first quarter we anticipate the typical seasonal impact as tax refunds provide important liquidity for our members, reducing their need for extra cash.»
The company also said Monday that it was switching its partner bank from Evolve Bank & Trust to Coastal Financial’s Coastal Community Bank. Because Dave is a neobank, it does not hold a full banking license and has to rely on a partnership with an institutional bank as a sponsor. The company said customers’ accounts would begin to switch over to Coastal in the second quarter.
Wilk called Coastal «one of the most highly respected banks in the fintech ecosystem» on the investor call Tuesday morning.
«This new partnership will enable Dave to leverage Coastal’s scale, experience on compliance and risk management capabilities to sponsor our ExtraCash and banking products,» Wilk said. «We believe the partnership will also strengthen our position to launch next generation products that support Dave’s mission of leveling this national playing field for everyday Americans.»
In November, Dave said it intended to «form a strategic partnership with a leading bank whose parent is publicly traded» but did not specify Coastal. The news came following a year of regulator scrutiny for Evolve. It was among several banks that partner with fintechs to receive regulatory enforcement actions in 2024 and Evolve’s partnership with Synapse Financial Technologies led to headaches after the company’s collapse.
The earnings report caps a positive year for Dave: In March 2024, the neobank announced its first profitable quarter since going public in January 2022, meeting guidance it set in November 2023 that the fourth quarter would be profitable.
The company saw a boost in its stock price following the election of Donald Trump last November.
