Dave Inc.

Good morning, everyone, and thank you for participating in today's conference call to discuss Dave's financial results for the second quarter ended June 30th, 2024. Joining us today are Dave's CEO, Mr. Jason Wilk, and the company's CFO, Mr. Kyle Bauman. By now, everyone should have access to the second quarter 2024 earnings press release, which was issued yesterday. The release is available in the investor relations section of Dave's website at https colon slash slash investors.dave.com. In addition, this call will also be available for webcast replay on the company's website. Following management remarks, we'll open the call for your questions. Certain comments made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties. as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on forward-looking statements, which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or update any forward-looking statements. The company's presentation also includes certain non-GAAP financial measures, including adjusted EBITDA as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts and other important information in the earnings press release and form 8K furnished to the SEC. I would now like to turn the call over to Dave's CEO, Mr. Jason Wilk, You may begin.

Thank you, and good morning, everyone.

We continue to outperform expectations in the second quarter, delivering 31% revenue growth and materially improved profitability compared to the year-ago period. This marks our third consecutive quarter of accelerating year-over-year revenue growth, which we accomplished while managing to reduce operating expenses for the fifth consecutive quarter. This resulted in achieving another record quarter of adjusted EBITDA. Given our performance year to date and strong outlook for the remainder of the year, we are raising the bottom end of our revenue guidance and increasing adjusted EBITDA guidance for 2024. This upper revision is further supported by continued growth in our monthly transacting member base, which reached 2.3 million members. Turning to the second quarter, I'd like to share more about our continued progress in executing on our growth strategy. This includes efficiently acquiring new members engaging them through extra cash, and deepening our relationships through the day of cart. Our commitment to efficient member acquisition is paying off as we continue to reduce marketing spend when compared to year-ago periods, yet still expand our multi-transaction member base, as I'll discuss in more detail in a moment. In the second quarter, we acquired 3% fewer members relative to the year-ago period, but with nearly 30% less marketing investments. This is driven by a 26% year-over-year decrease in CAC to $15 as we continue to optimize our marketing ROI in pursuit of profitable growth. On a sequential basis, we ramped up marketing spend by 18% to capitalize on the seasonal demand pattern for extra cash while reducing CAC by 7% at this higher level of investment. As we navigate an election year, we are closely monitoring its potential impact on customer acquisition costs. While we didn't observe election impacts in Q2, nor have we thus far in Q3, we'll remain disciplined as November nears to ensure our marketing investments achieve or exceed our internal return hurdles. The environment for member acquisition has remained constructive in Q3, which adds to our confidence in sustaining efficient growth at higher levels of scale. The second pillar of our growth strategy is to drive greater MTM engagement while using our extra cash product as the primary entry point of our member journey. This focus has yielded impressive results, with MTM growing 18% year over year to a record 2.3 million members. Our focused efforts to strengthen new member conversion, existing member retention, and dormant member reactivation contributed meaningfully to this growth. Given the size and consistent growth of our member base, as well as how our product capabilities have been expanding, we have been evaluating additional potential sponsor banks since late last year in an effort to diversify our key partner relationships. Dave is an attractive partner opportunity for the many reputable and qualified sponsor banks in the market, given our scale and growth trajectory. These discussions have been constructive thus far, and we will report back when we have material updates on our progress. Extra cash delivered another strong quarter with originations reaching 1.2 billion. Originations grew 37% year over year and 13% sequentially, driven by our cash AI underwriting engine, and reflecting strong continued demand for extra cash coming out of the seasonally softer tax refund season in Q1. Despite the solid growth, our net receivables portfolio totaled just $128 million at quarter end. We believe this highlights the short duration, high velocity nature of our product, which allows us to serve a vast number of everyday Americans without the need for a capital intensive balance sheet. Cash AI enables us to expand access and liquidity for our members and increase average disbursement amounts without compromising credit performance. In Q2, we continued to improve our 28-day delinquency rate to 2.03%, down 80 basis points year over year. This equates to 28% improvement in credit performance over a period where we accelerated the extra cash origination volume growth for the third consecutive quarter. We also rolled out a new underwriting model throughout the second quarter, which further optimizes the data used to manage credit risk within our cash AI underwriting engine. Credit performance has remained strong thus far in Q3, which we expect to continue in part because of the full quarter's benefit from this new model. The third and final pillar of our growth strategy is to foster deeper member relationships through Dave card engagement. We believe offering quicker, more cost-effective extra cash transfers of the Dave card is an efficient way for us to drive trial with the Dave card. This trial is an important step in building the trust required to win direct deposits, which can generate five to six times higher bank ARPU relative to non-DD users. Our Dave card continues to demonstrate strong performance with spending volume climbing 28% year over year to reach $388 million in the second quarter. There is an untapped potential to further elevate this metric as we strategically incentivize direct deposit adoption. Please note, we are no longer reporting out on average transaction per MTM, as we believe DaveCard spending per MTM, which can be calculated from our existing disclosure, is also a sufficient proxy for member engagement in our banking product. Our combined efforts in Extra Cash, DaveCard, and subscriptions yielded a strong 11% year-over-year increase in ARPU during the second quarter due to improvements in both Extra Cash engagement and monetization, as well as growth in DaveCard ARPU. Sequentially, ARPU increased 7% from Q1 as extra cash ARPU normalized coming out of a tax refund season, which typically experiences seasonally lower demand for extra cash. I am proud of the positive impact we have had on our members' financial lives, as well as our Dave team, who remains dedicated to serving the majority of Americans poorly served by incumbent banks, including those early in their banking journey and those living paycheck to paycheck. Our strategic focus remains on increasing customer value, expanding our member base, and leveraging our disruptive technology to drive operational efficiency. We look forward to delivering exceptional value to our members and shareholders as we further solidify Dave's position as a premier banking solution for everyday Americans. With that, I'll turn the call over to Kyle and take you through our financial results. Kyle?