Dave Inc (NASDAQ: DAVE) stock is currently experiencing a notable surge in its stock prices on the US market. Dave stock was marking a remarkable 52.51% increase to $33.40 during the current trading session as of the last check. This surge is primarily attributed to the unveiling of its financial performance.
DAVE unveiled its financial outcomes for the fourth quarter and full year concluded on December 31, 2023. The reported fiscal period proved to be exceptional for DAVE, with the results serving as a testament to the unwavering commitment and diligence of its outstanding workforce.
Diligently executing its growth strategy enabled the company to surpass both operational and financial targets, outperforming the updated annual guidance across all metrics, and achieving profitability earlier than initially projected. These results underscore the robustness and sustainability of Dave’s business model within its expansive and evolving target market.
The demand for accessible credit and banking services remains robust, as evidenced by the company’s Month-to-Month (MTM) growth and the resilience of its marketing efficiency. The ability to continually enhance variable margins and generate operating leverage demonstrates the positive outcomes stemming from investments in the technological infrastructure.
DAVE’s Operating Revenues surged by 26% to $259.1 million compared to $204.8 million in the preceding year. The Net Loss also saw an improvement, narrowing from ($128.9) million last year to ($48.5) million this fiscal year. DAVE welcomed 683,000 new members, while witnessing a 12% reduction in customer acquisition costs.
Monthly Transacting Members (“MTMs”) experienced an 11% increase, reaching 2.1 million, while Transactions per MTM soared by 24% to 6.4. ExtraCash originations surged by 29% to $1.0 billion, with the average 28-Day delinquency rate witnessing a notable improvement of 139 basis points to 2.19%. Dave Debit Card spending surged by 41% to $369 million during the reported period.
The company expresses enthusiasm about sustaining this momentum, armed with a compelling roadmap for 2024. Significant opportunities lie ahead to further enhance the AI-enabled platform and products, delivering even greater value to its members who opt for direct deposit with the Dave Card.
This strategic direction underscores the company’s commitment to fostering mutually beneficial relationships with its members and businesses, positioning it favorably to achieve robust growth and sustained profitability throughout the year.
