Dave (DAVE) AI Stock Analysis

• Market Cap: $1.09B
• Dividend Yield: N/A
• Average Volume (3M): 503.02K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 2.34
• Revenue Growth: 33.94%
• EPS Growth: N/A
• Country: US
• Employees: 274
• Sector: Technology
• Sector Strength: 51
• Industry: Software - Application
• EPS (TTM): 4.26
• Shares Outstanding: 11,580,041
• 10 Day Avg. Volume: 444,925
• 30 Day Avg. Volume: 503,025
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.42
• Price to Cash Flow (P/CF): 7.10
• P/FCF Ratio: 7.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $126.71
• Price Target Upside: 51.13% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

Dave's overall stock score reflects a strong financial performance with significant revenue growth and improved profitability, supported by a robust balance sheet. The technical analysis presents some caution due to mixed signals, while the earnings call and corporate events provide positive future outlooks. The valuation is reasonable for growth-oriented investors, making Dave an attractive option within its industry despite some operational challenges.

Positive Factors

AI-Driven Credit Decisioning

DAVE's AI-driven credit-decisioning engine contributes to its profitability by managing credit losses and boosting approval limits for ExtraCash advances.

Credit Performance

DAVE's credit performance has continued to improve even as its loan originations have been growing.

Product Market Fit

DAVE's neobank platform is well-positioned to sustain profitable growth during a potential economic downturn given its strong product-market fit.

Negative Factors

Credit Comparison

Dave Inc.'s credit performance continued to improve even as many lenders and credit card companies reported deterioration in their credit-related metrics.

Mandatory Fee Structure

The shift to a mandatory fee structure with a 5% fee is likely to report larger average loan sizes going forward, translating into higher ARPU.

Market Positioning

DAVE’s focus on providing ExtraCash advances to financially stretched U.S. consumers puts it in a very different position from traditional financial institutions in terms of the expected demand for its loans during an economic pullback.

Dave Business Overview & Revenue Model

Company Description

Dave (DAVE) is a financial technology company that aims to improve the financial well-being of its users by providing tools for budgeting, financial planning, and accessing short-term financial assistance. Operating primarily in the digital banking and financial services sector, the company offers a mobile application that helps users manage their finances through features like budgeting tools, cash advances, and credit building services.

How the Company Makes Money

Dave makes money through a combination of subscription fees, transaction fees, and interest income. The company offers a subscription-based model where users pay a monthly fee for access to premium features within the app, such as more advanced budgeting tools and financial insights. Additionally, Dave generates revenue through transaction fees associated with its cash advance services, where users can access short-term funds with nominal fees attached. The company also earns interest on the cash advances it provides. Partnerships with banks and financial institutions further contribute to its revenue by facilitating financial products and services offered through the app.

Dave Financial Statement Overview

Summary

Dave's financial performance has shown a strong turnaround with impressive revenue and profit growth, improved margins, and enhanced cash flow performance. The balance sheet is strengthened with increased equity and reduced leverage, indicating financial stability. Despite historical challenges in profitability and cash flow consistency, the current financial health suggests a positive trajectory.

Income Statement

Dave has exhibited strong revenue growth, increasing from $259.1 million in 2023 to $311.4 million in 2024, a growth rate of approximately 20.2%. The gross profit margin improved from 52.2% to 65.6%, indicating enhanced operational efficiency. Notably, the company transitioned from a net loss of $48.5 million in 2023 to a net income of $57.9 million in 2024, reflecting significant profitability improvements. However, EBIT and EBITDA margins remain negative, suggesting challenges in covering operating expenses and depreciation/amortization costs.

Balance Sheet

The balance sheet shows a robust equity position with an equity ratio of 61.1% in 2024, up from 29.6% in 2023, indicating improved financial stability. The debt-to-equity ratio decreased substantially from 2.08 in 2023 to 0.003, showcasing successful debt reduction efforts. Return on Equity (ROE) turned positive to 31.6% in 2024, reflecting effective shareholder value creation. The improvements in equity and reduction in leverage highlight a strengthened financial foundation, although historic volatility in equity levels poses a potential risk.

Cash Flow

Operating cash flow has increased significantly, from $33.8 million in 2023 to $125.1 million in 2024, indicating enhanced cash generation capabilities. Free cash flow has also seen remarkable growth, reaching $124.9 million, demonstrating efficient capital expenditure management and robust liquidity. The operating cash flow to net income ratio is strong at 2.16, signaling effective conversion of income to cash. While past fluctuations in cash flow were evident, the current trajectory presents a positive outlook for cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
311.43M	259.09M	204.80M	153.00M	121.80M
	Gross Profit
204.40M	135.26M	172.90M	129.50M	100.15M
	EBIT
-1.04M	-42.20M	-146.13M	-46.90M	-2.33M
	EBITDA
76.02M	-31.08M	-113.18M	-14.27M	-5.08M
	Net Income Common Stockholders
57.87M	-48.52M	-128.90M	-20.00M	-6.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
49.81M	155.94M	191.96M	32.00M	22.45M
	Total Assets
299.33M	294.02M	321.49M	147.19M	76.41M
	Total Debt
554.00K	181.29M	178.15M	73.64M	6.11M
	Net Debt
-49.16M	139.53M	155.26M	41.64M	1.32M
	Total Liabilities
116.23M	206.96M	214.93M	108.45M	26.56M
	Stockholders Equity
183.10M	87.06M	106.56M	-33.40M	49.84M
Cash Flow		Free Cash Flow
124.88M	25.17M	-54.20M	-47.18M	-13.37M
	Operating Cash Flow
125.14M	33.75M	-44.88M	-40.70M	-9.15M
	Investing Cash Flow
-45.84M	-14.38M	-285.58M	3.00M	3.42M
	Financing Cash Flow
-71.00M	22.00K	321.77M	65.05M	4.24M

Dave Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 83.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAVE, the sentiment is Neutral. The current price of 83.84 is below the 20-day moving average (MA) of 84.81, below the 50-day MA of 92.63, and above the 200-day MA of 65.73, indicating a neutral trend. The MACD of -2.46 indicates Negative momentum. The RSI at 48.35 is Neutral, neither overbought nor oversold. The STOCH value of 69.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DAVE.

Dave Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAVE	76 Outperform	$1.09B	19.66	42.84%	―	33.94%	―
OLO	72 Outperform	$1.01B	―	-0.13%	―	24.81%	98.55%
SEMR	72 Outperform	$1.30B	162.03	3.46%	―	22.47%	872.41%
ML	69 Neutral	$965.04M	114.53	3.34%	―	28.92%	―
SPT	64 Neutral	$1.13B	―	-39.88%	―	21.66%	8.66%
AMPL	60 Neutral	$1.11B	―	-31.90%	―	8.32%	2.04%
Sector *	58 Neutral	$11.04B	9.83	-6.56%	3.16%	7.59%	-10.43%

Dave Corporate Events

Dave Inc. Announces $50 Million Share Buyback Plan

On March 10, 2025, Dave Inc. announced that its Board of Directors has authorized a share repurchase program to buy back up to $50 million of its outstanding Class A common stock. This decision reflects the company’s confidence in its financial strength and long-term growth potential, aiming to enhance shareholder value. The repurchase program will be executed based on market conditions and may involve various methods, including open market and privately negotiated transactions. The program does not obligate Dave to repurchase a specific number of shares and can be modified or terminated at any time.

Dave Partners with Coastal Community Bank for Expansion

On February 27, 2025, Dave Operating LLC, a subsidiary of Dave Inc., entered into a Program Agreement with Coastal Community Bank to offer Dave-branded deposit accounts and cards. This partnership, announced on March 3, 2025, will enable Dave to expand its banking and ExtraCash products, improving financial inclusion for underbanked populations. Coastal Community Bank will act as a sponsor bank, sharing interchange revenue with Dave and supporting its mission to provide accessible financial services. The agreement is set for an initial term of five years, with options for renewal, and marks a significant milestone in Dave’s growth strategy.