Dave Inc.'s Record Q4: A Deep Dive into the Neobank's Strong Performance

As an investor, keeping a pulse on the financial health of the companies in your portfolio is crucial. Today, we're taking a closer look at Dave Inc.'s (DAVE) fourth quarter and full year 2024 earnings call, which painted a picture of a neobank on a strong growth trajectory. Let's dive into the key takeaways and explore what this means for the future of Dave Inc. and the broader fintech landscape.



Record Revenue and Profitability

Dave Inc. closed out the year with record-setting results, delivering another quarter of exceptional growth and profitability. The company reported a 38% increase in Q4 revenue to $100.9 million and a 34% increase in full-year revenue to $347.1 million. Adjusted EBITDA for Q4 reached $33.4 million, significantly exceeding the high-end of guidance, while GAAP net income for Q4 was $16.8 million, a substantial improvement from the previous year (Dave Inc., 2025).

Strong Member Demand and Execution

Dave Inc.'s strong performance was underpinned by robust member demand and continued strength in its team's execution. 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, supported by increased member growth and average origination per member. The company's proprietary CashAI-powered underwriting continued to drive improvements in credit performance, with a 24% year-over-year improvement in the 28-day delinquency rate to 1.66% (Dave Inc., 2025).

Strategic Shift to a New Fee Model

Dave Inc. completed a strategic shift to a new fee model for ExtraCash in mid-Q1 of 2025, which is expected to result in even greater ExtraCash limits, monetization, and member lifetime value. The new fee structure, which includes a fixed fee of 5% with a $5 minimum and $15 cap, has improved monetization by ensuring consistent revenue from customers over time. This change has led to higher ARPU (Average Revenue Per User) and better retention, creating a strong growth flywheel (Dave Inc., 2025).



Partnership with Coastal Community Bank

Dave Inc. finalized a strategic partnership with Coastal Community Bank, enhancing its ability to offer next-generation financial products. The partnership allows Dave to offer additional credit products and improve its debit relationship, with Coastal's experience in credit products being superior. Dave plans to onboard new customers to Coastal starting in Q2 and eventually migrate all customers to the bank, which is expected to provide synergies and cost savings (Dave Inc., 2025).

Looking Ahead

Dave Inc. has established a strong 2025 revenue and Adjusted EBITDA outlook, with expectations for 20% to 25% year-over-year growth in GAAP operating revenues, net, and 27% to 39% year-over-year growth in Adjusted EBITDA. The company's focus remains on expanding ARPU, leaning into its banking offering, further strengthening member retention, and expanding member lifetime value (Dave Inc., 2025).

In conclusion, Dave Inc.'s record-setting fourth quarter results and strong full-year performance are a testament to the company's strategic execution and commitment to driving sustainable growth. As an investor, it's essential to stay informed about the financial health and growth prospects of the companies in your portfolio. By keeping a close eye on key performance indicators, strategic initiatives, and partnerships, you can make more informed decisions and capitalize on opportunities in the ever-evolving fintech landscape.