Dave Inc.

Good afternoon and welcome to the Dave-In conference call. All lines have been placed in mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press the star one again. For operator assistance throughout the call, please press star zero. And finally, I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Jason to begin the conference. Jason, over to you.

Thank you, and good afternoon, everyone. I'm very proud of our team's performance in delivering another strong quarter for Dave members and shareholders. In Q1, we grew revenue by nearly 40% year-over-year and were flat sequentially in line with our expectations given the seasonality of demand for our extra cash product during tax refund season. Our variable margin and unit economics continued to improve driven by a combination of substantial improvements in credit performance, our renegotiated key vendor contracts, and continued processing cost efficiencies. This margin expansion coupled with lower marketing spend and fixed cost operating leverage allowed us to more than have our adjusted EBITDA loss for the second consecutive quarter building on our progress in Q4, and advancing our path to profitability. I believe our improved profitability drivers over the past two quarters validated our operational strategy and positions to aid for success as we further cement ourselves as one of the leading neobanks in the U.S. Our affordable, member-centric banking products have already drawn millions of customers to Dave, and we look forward to continuing to execute on our strategy of becoming a superior banking product for everyday Americans. Now to dive a little deeper into the quarter and our progress against our strategic growth initiatives. Our first area of focus is to acquire banking customers efficiently at scale by marketing top-of-mind liquidity pain points. Our key value proposition of being the neobank that helps people access short-term liquidity for their everyday expenses without incurring overdraft fees continues to resonate strongly, driving efficient member acquisition. In Q1, we added 587,000 new members and grew our monthly transacting members to 2 million. representing 34% year-over-year growth. We were able to achieve this growth despite seasonally lower demand for extra cash as tax refunds help to support the liquidity needs of our audience during tax season. These seasonal dynamics typically lead to lower response rates on our campaigns, which is why we tend to moderate marketing spend in the first quarter. However, we actually reduced our tax by 4% sequentially and nearly 40% relative to the first quarter of 2022. We believe these favorable acquisition trends demonstrate the strong demand for our products that should help to reinforce our overall growth objectives for the year. As Kyle will outline in a moment, we plan to ramp up marketing spend in the second and third quarters as we believe we can achieve even more attractive returns on investment at greater scale in those periods and re-accelerate growth. Our second focus area is to engage customers by delighting them with instant access of up to $500 of extra cash using our proven AI-driven underwriting models. In the first quarter, extra cash origination volume grew over 45% to $798 million on a year-over-year basis, driven by both growth in numbers as well as higher extra cash limits compared to the prior year. On a sequential basis, extra cash originations remain flat, reflecting the tax refund-driven seasonal dynamics I described earlier. From a monetization standpoint, our unit economics are durable and margins are improving. Average revenue per origination remains steady. our 28-day delinquency rate was a record low, improving by nearly 100 basis points sequentially and 67 basis points year-over-year. As we've discussed on our last several calls, we believe our underwriting and risk management capabilities are a competitive advantage and that this quarter demonstrates just how powerful our model is, even against a challenging consumer credit backdrop, we're making gains. As mentioned earlier, we moderated marketing spend in the quarter to better match market demand for extra cash around tax refund season, Consistent with our plan to ramp up marketing spend over the balance of the year, we expect extra cash originations to accelerate as demand normalizes seasonally, with additional tailwinds based on the challenging macro backup impacting our members and broader camp. Our final focus area is to create deeper payment relationships with our members by accelerating adoption of our Dave debit card. We are ultimately working towards becoming a primary destination for our members to deposit their paychecks, putting Dave at the center of their financial lives. Utilizing Extra Cash as a conversion point for initial card usage, we are continuing to make meaningful progress in growing Dave card spend. Average transactions per monthly transacting member grew to a record 5.4 in the first quarter. We had another quarter of record Dave card spending volume, increasing 12% sequentially and 62% on a year-over-year basis as the Dave card continues to gain traction. We anticipate these positive trends to persist, supported by an exciting product roadmap that is aimed at capturing this opportunity. I remain optimistic about our outlook. We're delivering significant value for our members, solving their fundamental pain points and building loyalty that enables us to deepen our relationships with them. We have an innovative roadmap that I'm confident will allow us to deliver even more member value. We're doing this while building a durable and defensible business model with strong growth and attractive unit economics with significant upside from here. Overall, we're tracking well against our strategic growth initiatives and our commitment to achieving profitability in 2024. With that, I will turn the call over to Kyle to take you through our financial results.

Kyle? Thank you, and good afternoon, everyone.