company background image
DAVE

Dave NasdaqGM:DAVE Stock Report

Last Price

US$0.74

Market Cap

US$278.3m

7D

1.0%

1Y

-92.5%

Updated

10 Aug, 2022

Data

Company Financials +
DAVE fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health5/6
Dividends0/6

DAVE Stock Overview

Dave Inc. provides a suite of financial products and services through its financial service online platform.

Dave Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Dave
Historical stock prices
Current Share PriceUS$0.74
52 Week HighUS$15.35
52 Week LowUS$0.54
Beta0
1 Month Change22.80%
3 Month Change-68.19%
1 Year Change-92.50%
3 Year Changen/a
5 Year Changen/a
Change since IPO-92.40%

Recent News & Updates

Jul 14

Dave Grows Member Base As Economic Conditions Tighten

Dave recently reported financial and operational results for Q1 2022. The company provides financial services in the U.S. via its mobile app. DAVE has produced growing revenue, gross profit and increasing member numbers, but operating losses and unrecoverable advances are worsening. Until we learn the net effects of a potential economic downturn on its results, I'm on Hold for DAVE. A Quick Take On Dave Dave (DAVE) recently reported its 1st Quarter 2022 financial and operational results on May 11, highlighting increased revenue, gross profit and growth of its member base. The company provides financial services via its mobile-centric app of the same name. While demand for Dave’s offerings may indeed increase as an economic slowdown or recession occurs, it appears too early to tell how well the firm will be able to produce improved financial results in the near term. DAVE may be a stock to put on a watch list, but for now I’m on Hold for it. Dave Overview West Hollywood-based Dave was founded in 2015 to develop a suite of online personal financial management services for its members. The firm is headed by founder and CEO Jason Wilk, who previously founded WriteyBoard, AllScreen and 1DaySports.com. The company’s primary offerings include: Extra Cash - cash advance Side Hustle - connections to local, flexible jobs Dave Banking - digital checking and demand deposit account The firm has been backed by billionaire Mark Cuban and went public in a SPAC merger deal with VPC Impact Acquisition (VPCB) at an equity value of around $4 billion. The deal closed in January 2022. Dave acquires customers through a variety of online means, including search engine marketing and online partners. The company recently received $100 million in an investment from noted cryptocurrency exchange FTX US, where FTX will serve as the exclusive partner for crypto assets to be introduced on the Dave platform. Dave’s Market & Competition According to a 2020 market research report by Allied Market Research, the market for mobile banking was an estimated $715 million in 2018 and is expected to reach $1.8 billion by 2026. This represents a forecast CAGR (Compound Annual Growth Rate) of 12.2% from 2019 to 2026. The main drivers for this expected growth are increasing adoption of smartphones for banking and financial services and improved innovation by financial service providers. Also, this report is limited to mobile banking, so the markets for lending or cash advances and other services would be in addition to these figures. While the North America region accounted for significant market share, the Asia Pacific region is expected to produce the highest CAGR by region, at 16.0% from 2019 to 2026. Other major market participants or competitors include: Chime Deserve Even B9 Varo Bank Credit Sesame MoneyLion Steady Braviant Empower Finance Dave’s Recent Financial Performance Total revenue by quarter has grown moderately in the three most recent quarters: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has risen but recently plateaued: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have been in a rising trend, indicating the firm is getting less efficient at generating revenue over time: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating losses by quarter have worsened considerably in the past three quarters: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have remained mostly negative in the past 5 quarter period: 5 Quarter Earnings Per Share (Seeking Alpha) In the past 12 months, since its SPAC merger, DAVE’s stock price has dropped 93.9 percent vs. the U.S. S&P 500 index’ drop of around 13.9 percent, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation Metrics For Dave Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Enterprise Value $65,030,000 Market Capitalization $209,480,000 Enterprise Value / Sales [TTM] 0.40 Price / Sales [TTM] 0.55 Revenue Growth Rate [TTM] 24.84% Operating Cash Flow [TTM] -$80,800,000 Earnings Per Share (Fully Diluted) -$0.30 (Source - Seeking Alpha) Commentary On Dave In its last earnings call (Source - Seeking Alpha), covering Q1 2022’s results, management highlighted the addition of 340,000 net new members, finishing the quarter with 6.4 million members. Notably, the company had 1.45 million of its members (22.7%) make at least one ‘funding, spending, ExtraCash or subscription transaction’ during the quarter.

Shareholder Returns

DAVEUS SoftwareUS Market
7D1.0%-3.6%0.3%
1Y-92.5%-17.4%-13.5%

Return vs Industry: DAVE underperformed the US Software industry which returned -17.4% over the past year.

Return vs Market: DAVE underperformed the US Market which returned -13.5% over the past year.

Price Volatility

Is DAVE's price volatile compared to industry and market?
DAVE volatility
DAVE Average Weekly Movement18.9%
Software Industry Average Movement10.7%
Market Average Movement7.9%
10% most volatile stocks in US Market17.2%
10% least volatile stocks in US Market3.2%

Stable Share Price: DAVE is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: DAVE's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2015225Jason Wilkhttps://dave.com

Dave Inc. provides a suite of financial products and services through its financial service online platform. The company offers Insights, a personal financial management tool to manage income and expenses between paychecks for members; ExtraCash, a free overdraft and short-term credit alternative, which allows members to advance funds to their account and avoid a fee; and Side Hustle, a job application portal. It also provides Dave Banking, a digital checking and demand deposit account.

Dave Inc. Fundamentals Summary

How do Dave's earnings and revenue compare to its market cap?
DAVE fundamental statistics
Market CapUS$278.26m
Earnings (TTM)-US$54.83m
Revenue (TTM)US$161.14m

1.7x

P/S Ratio

-5.1x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DAVE income statement (TTM)
RevenueUS$161.14m
Cost of RevenueUS$24.78m
Gross ProfitUS$136.36m
Other ExpensesUS$191.18m
Earnings-US$54.83m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 11, 2022

Earnings per share (EPS)-0.15
Gross Margin84.62%
Net Profit Margin-34.03%
Debt/Equity Ratio88.8%

How did DAVE perform over the long term?

See historical performance and comparison