Dave Shares Surge on Strong Outlook and Q4 Earnings Beat

Dave Inc. (NASDAQ: DAVE), a leading neobank, saw its shares jump 8.9% in after-hours trading on Monday, following the release of its fourth-quarter and full-year 2024 earnings results. The company's strong guidance for 2025 and better-than-expected Q4 earnings have investors bullish on the stock.



Dave reported record Q4 revenue of $100.9 million, up 38% year-over-year, and full-year revenue of $347.1 million, up 34% from the previous year. Adjusted EBITDA for the quarter was $33.4 million, a 234% increase from the same period last year, significantly exceeding the high-end of the company's guidance. For the full year, adjusted EBITDA was $86.5 million, a 39% increase from 2023.



The company's strong performance was driven by robust member growth and increased ExtraCash originations. New members increased 12% to 766,000, while monthly transacting members (MTMs) grew 17% to 2.5 million. ExtraCash originations surged 44% to $1.5 billion, with the average 28-Day delinquency rate improving by 53 basis points to 1.66%.

Dave's CEO, Jason Wilk, attributed the company's success to its strong member demand and the team's execution. He also highlighted the company's transition to a new fee structure in mid-Q1 2025, which is expected to result in even greater ExtraCash limits, monetization, and member lifetime value going forward.

Looking ahead, Dave expects to generate revenue of $415 million to $435 million in 2025, representing year-over-year growth of 20% to 25%. The company also anticipates adjusted EBITDA of $110 million to $120 million in 2025, indicating year-over-year growth of 27% to 39%.

Investors seem optimistic about Dave's prospects, with the stock price surging following the earnings release. The company's strong member growth, increased ExtraCash originations, and positive outlook have analysts bullish on the stock. The average price target for Dave Inc. is $102.71, which is an 8.08% increase from the latest price.

In conclusion, Dave Inc.'s strong Q4 earnings and positive outlook have investors bullish on the stock. The company's focus on AI-powered underwriting, innovative financial products, and efficient marketing have contributed to its success. As Dave continues to execute on its strategic roadmap and drive sustainable growth, investors can expect the company to deliver long-term value for both its members and shareholders.