Dave's Q1 2025 Earnings Call: Unpacking Contradictions in Card Adoption, Fees, and Revenue Growth

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Record Financial Performance:
- Dave's first quarter ended March 31, 2025, with adjusted EBITDA growth accelerating by 235% to $44.2 million, representing a year-over-year increase of $31 million, the largest dollar increase in the company's history.
- The growth was driven by operating leverage on the fixed cost base and variable margin expansion from improvements in cash AI credit performance.

ExtraCash and Member Acquisition:
- ExtraCash originations exceeded $1.5 billion, representing a 46% year-over-year increase, and monthly transacting members grew by 13% year-over-year to a record 2.5 million.
- This was attributed to the successful transition to a new fee structure, improved conversion rates, and enhanced member engagement through ExtraCash.

ARPU and Dave Card Engagement:
- ARPU expanded by 29% year-over-year, driven by a 26% increase in average revenue per ExtraCash origination, reaching approximately $11.40.
- Increased Dave Card spending to a record $488 million, up 24% year-over-year, was driven by the growth in MTMs and seasonally supported tax refunds, further enhancing ARPU.

Guidance and Future Growth:
- The company raised its full-year 2025 guidance for both revenue to a range of $460 million to $475 million and adjusted EBITDA to $155 million to $165 million.
- This is due to solid performance across the business and the early success of the new ExtraCash fee structure, which provides a strong foundation for continued growth.