Dave (DAVE) AI Stock Analysis

• Market Cap: $2.74B
• Dividend Yield: N/A
• Average Volume (3M): 563.32K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 2.34
• Revenue Growth: 53.82%
• EPS Growth: 227.54%
• Country: US
• Employees: 274
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 6.34
• Shares Outstanding: 12,190,000
• 10 Day Avg. Volume: 488,894
• 30 Day Avg. Volume: 563,321
• PEG Ratio: -0.09
• Price to Book (P/B): 5.94
• Price to Sales (P/S): 3.14
• P/FCF Ratio: 8.72
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 6.87
• Enterprise Value/Ebitda: 21.19
• 1Y Price Target: $300.75
• Price Target Upside: 48.41% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 6.39
• Revenue Forecast (FY): $512.49M

• Rating: 80 Outperform
• Price Target: $251.00 ▲(23.86% Upside)

Dave's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's impressive revenue and EBITDA growth, coupled with strategic initiatives, bolster its outlook. Technical analysis and valuation present moderate risks, but they are outweighed by the company's robust financial health and strategic progress.

Positive Factors

Revenue Growth

Significant revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability and market position.

Subscription Revenue Increase

The increase in high-margin subscription revenue strengthens profitability and provides a stable, recurring income stream, supporting sustainable growth.

Cash Flow Generation

Strong cash flow growth enhances financial flexibility, enabling reinvestment in growth initiatives and providing a buffer against economic uncertainties.

Negative Factors

Higher Loss Rates

Increased loss rates could pressure margins and profitability, potentially impacting long-term financial health if not managed effectively.

Legal Settlement Charge

Legal settlement charges can strain financial resources and indicate potential operational risks, affecting long-term profitability and reputation.

Historical Margin Volatility

Volatile margins can lead to unpredictable earnings, complicating financial planning and potentially undermining investor confidence over time.

Dave Business Overview & Revenue Model

Company Description

Dave (DAVE) is a financial technology company that aims to provide banking services and financial management tools to consumers, particularly targeting the underserved and those seeking alternatives to traditional banking. The company operates primarily in the fintech sector, offering services such as budgeting tools, cash advances, and a debit card linked to a mobile app that helps users manage their finances more effectively.

How the Company Makes Money

Dave generates revenue through several key streams. Primarily, the company earns money by charging users a monthly subscription fee for access to premium features, including financial insights and budgeting tools. Additionally, Dave offers cash advances to users, which may involve fees for late repayments or interest charges, contributing to its earnings. The company also partners with various financial institutions to facilitate transactions and may receive referral fees or commissions for these partnerships. Furthermore, revenue is supplemented through interchange fees collected when users make purchases using their Dave debit card.

Dave Financial Statement Overview

Summary

Dave demonstrates strong financial performance with impressive revenue growth, profitability, and cash flow generation. The balance sheet is solid with minimal leverage, although historical volatility in margins and equity levels presents potential risks.

Income Statement

Dave has shown impressive revenue growth with a 10.81% increase in TTM, supported by strong gross and net profit margins of 88.44% and 30.56%, respectively. The company has successfully turned around its profitability, with a significant improvement in EBIT and EBITDA margins compared to previous years. However, the historical volatility in margins and profitability should be monitored.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.00 in TTM, indicating minimal leverage. The return on equity is robust at 65.84%, showcasing efficient use of equity capital. However, the equity ratio is not explicitly provided, and historical fluctuations in equity levels suggest potential risks.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 22.78% in TTM, with a free cash flow to net income ratio of 1.01, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is not provided, but the overall cash flow position appears solid, with improvements over previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	491.30M	347.08M	259.09M	204.84M	153.01M	121.80M
Gross Profit	419.00M	316.70M	230.17M	172.89M	129.55M	100.15M
EBITDA	135.85M	76.02M	-31.08M	-112.64M	-14.30M	-5.08M
Net Income	146.73M	57.87M	-48.52M	-128.91M	-19.99M	-6.96M
Balance Sheet
Total Assets	433.25M	299.33M	294.02M	321.49M	147.19M	76.41M
Cash, Cash Equivalents and Short-Term Investments	91.73M	90.29M	155.94M	191.96M	40.23M	22.45M
Total Debt	75.30M	75.55M	181.29M	178.15M	73.64M	6.11M
Total Liabilities	141.94M	116.23M	206.96M	214.93M	108.45M	26.56M
Stockholders Equity	291.31M	183.10M	87.06M	106.56M	38.74M	49.84M
Cash Flow
Free Cash Flow	236.75M	124.88M	25.17M	-54.20M	-7.02M	-13.37M
Operating Cash Flow	238.44M	125.14M	33.75M	-44.88M	-541.00K	-9.15M
Investing Cash Flow	-178.73M	-45.84M	-14.38M	-285.58M	-37.20M	3.42M
Financing Cash Flow	-44.59M	-71.00M	22.00K	321.77M	65.05M	4.24M

Dave Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 202.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAVE, the sentiment is Negative. The current price of 202.65 is below the 20-day moving average (MA) of 214.61, below the 50-day MA of 217.67, and above the 200-day MA of 179.72, indicating a neutral trend. The MACD of -5.44 indicates Positive momentum. The RSI at 44.82 is Neutral, neither overbought nor oversold. The STOCH value of 63.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAVE.

Dave Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAVE	80 Outperform	$2.74B	20.08	65.63%	―	53.82%	227.54%
FRSH	68 Neutral	$3.34B	―	-2.98%	―	18.18%	70.94%
GBTG	62 Neutral	$4.15B	354.02	0.76%	―	5.71%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	51 Neutral	$3.02B	―	-80.55%	―	9.74%	22.36%
GRND	48 Neutral	$2.37B	―	-171.54%	―	28.97%	-4.18%
RUM	44 Neutral	$3.09B	―	-122.08%	―	21.17%	-108.27%

Dave Corporate Events

Dave Inc. Reports Record Q3 Revenue and Profit Growth

Dave Inc., a leading U.S. neobank, provides innovative banking services leveraging disruptive technologies to serve millions of Americans. In its latest earnings report, Dave Inc. announced a record third-quarter revenue of $150.8 million, marking a 63% year-over-year increase, driven by strong growth in Monthly Transacting Members and a record Average Revenue Per User. The company also reported a significant rise in net income to $92 million and adjusted EBITDA to $58.7 million, reflecting a 137% increase. Key performance metrics include a 49% increase in ExtraCash originations to over $2 billion and a 25% rise in Dave Debit Card spend. With a robust financial performance, Dave Inc. has raised its 2025 revenue and adjusted EBITDA guidance to $544-$547 million and $215-$218 million, respectively. Looking ahead, Dave Inc. remains focused on scaling efficiently and driving profitable growth, supported by strong unit economics and strategic recalibrations in underwriting and acquisition strategies.

Dave Inc. Reports Record Growth in Earnings Call

Dave Inc.’s recent earnings call painted a positive picture of the company’s financial health and strategic direction. The management highlighted significant revenue and EBITDA growth, improved credit economics, and successful strategic initiatives. Despite facing challenges such as higher loss rates and a legal settlement charge, the overall sentiment was optimistic, reflecting the company’s robust performance and forward momentum.