"2023 was an extraordinary year for Dave, and our results are a testament to the dedication and hard work of our exceptional team. Focused execution of our growth strategy enabled us to surpass our operational and financial objectives, exceeding our updated annual guidance across all metrics, and achieving profitability much earlier than anticipated," stated Jason Wilk, Founder and CEO of Dave. “Our results underscore the strength and durability of Dave’s business model within our large and growing target market. We believe demand for affordable credit and banking services remains strong as demonstrated by our MTM growth and the resiliency of our marketing efficiency. Our ability to continue to increase variable margins and generate operating leverage displays the benefits of the investments we have made in our technology platform.”

“We are excited to continue building on this momentum with a compelling roadmap for 2024. We see significant opportunities to further enhance our AI-enabled platform and products, and provide even greater value to our members who commit to direct deposit with the Dave Card. This strategy highlights our commitment to member and business win-wins and positions us well to deliver strong growth and be solidly profitable for the year.”

Fourth Quarter 2023 Operating Highlights (vs. Q4 2022)
• New Members totaled 683,000 while customer acquisition costs decreased by 12%
• Monthly Transacting Members (“MTMs”) increased 11% to 2.1 million. Transactions per MTM increased 24% to 6.4
• ExtraCash originations increased 29% to $1.0 billion, while the average 28-Day delinquency rate improved 139 basis points to 2.19%
• Dave Debit Card spend increased 41% to $369 million

Liquidity Summary
The Company had $157 million of cash and cash equivalents, marketable securities, investments and restricted cash as of December 31, 2023. Additionally, the Company had $2 million of undrawn capacity on its credit facility, bringing Dave’s total liquidity to $159 million at December 31, 2023.

Subsequent to year-end, the Company announced the repurchase of a convertible note (the “Note”) that it issued to FTX Ventures Ltd. with an original principal balance of $100 million. Dave repurchased the Note for a discounted price of $71 million, reflecting a $35 million discount to or 67% of the $105.5 million outstanding balance as of December 31, 2023. Accounting for this repurchase, as well as the impact from our operations and the increase in ExtraCash receivables in January, our cash and cash equivalents, marketable securities, investments and restricted cash balance of as January 31, 2024 was $75.3 million.

The Company does not provide a quantitative reconciliation of forward-looking non-GAAP financial measures because it is unable to predict without unreasonable effort the exact amount or timing of the reconciling items, including interest expense, investment income, and loss provision, among others. The variability of these items could have a significant impact on our future GAAP financial results.

Dave CFO Kyle Beilman commented: “Our 2024 guidance illustrates the sustainability of the progress we made in achieving profitability in the fourth quarter, as well as our commitment to growing our business profitably going forward. In 2024, we expect to continue to drive growth in MTMs and ARPU in our ExtraCash, banking and subscription offerings, while maintaining strong variable margins and fixed expense discipline.”

“Confidence in our outlook underpinned our decision to repurchase the FTX convertible note which was a highly compelling capital allocation opportunity for Dave. After accounting for the note repurchase payment, our balance sheet remains strong and we believe we have ample liquidity to execute our growth plans moving forward. ”