Dave Results Presentation Deck
Q-O-Q improvement
in variable margin
Variable margin declined in prior quarters as i) we
made long-term investments in the Dave Card
business which should bolster margins as that
business scales and ii) ExtraCash advance sizes
increased: larger ExtraCash sizes typically have
lower monetization rates but, ultimately, higher
ARPU and variable profit.
In 3Q22, we began to realize impacts from our
margin-driving initiatives, translating into ~280bp
sequential margin improvement.
Margin-driving initiatives include optimization of
settlement processing flow, vendor contract
renegotiations, and increased emphasis on fraud
controls and risk management.
Substantial fraud event in 3Q22, which adversely
impacted variable margin, has been addressed and
is not expected to recur.
Dave
Variable Profit Margin (Non-GAAP)
48%
3Q21
48%
4Q21
41%
1Q22
42%
39%
||
2Q22
3Q22
Note: Variable Profit Margin (Non-GAAP) is defined as Non-GAAP Variable Profit divided by Non-GAAP Revenue.
See Glossary for the definition of Non-GAAP Variable Profit and Non-GAAP Revenue.
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