Business Overview / Sources of Revenue

Dave Inc. (DAVE) is a digital banking service company founded in 2015 and headquartered in Los Angeles. The company offers a financial services platform with various products including:

- ExtraCash: A short-term liquidity solution providing cash advances to help members avoid overdraft fees[2][5]
- Budget: A personal financial management tool for budgeting and expense tracking[5]
- Side Hustle: A portal connecting members with supplemental work opportunities[2][5]
- Dave Banking: A modern checking account with tools for building financial health[2]
- Surveys: A feature allowing members to earn money by taking paid surveys[5]

The company generates revenue through its banking app services, financial insights, overdraft protection, credit building services, and helping customers find side gigs[1]. Dave Inc. reported annual revenue of $347.08 million with a net income of $57.87 million[2]. The company has 274 employees and generates approximately $1.27 million in revenue per employee[2].

Revenue Growth Potential and Recurrence

Based on the financial results, Dave (DAVE) has shown impressive revenue growth with Q1 2025 revenue surging 47% year-over-year to $108 million[4]. The company has demonstrated consistent growth acceleration with three consecutive quarters of accelerating revenue growth as of Q2 2024[2]. While specific recurring revenue figures aren't explicitly mentioned, the increase in Monthly Transacting Members to 2.5 million in Q4 2024 (up 17%)[5] suggests a solid recurring customer base.

Dave's growth potential appears strong, with recent performance showing 34% annual revenue growth for 2024[1][3][5]. The company's improving profitability, as evidenced by the $16.8 million net income in Q4 2024[1][5], and increased Adjusted EBITDA guidance[2] indicate a sustainable growth model. The expansion in ARPU (Average Revenue Per User) alongside growth in transacting members[2] suggests Dave can continue growing revenues through both user acquisition and increased monetization per customer.

Economic Moat Factors

Dave Inc. (ticker DAVE) is considered to have a *narrow* economic moat[1]. This suggests that while it possesses some competitive advantages, these are not substantial or durable enough to ensure long-term market dominance or protect profits for decades[3].

Dave’s offerings in financial services—such as digital banking—face intense competition, and its advantages do not benefit significantly from strong switching costs, network effects, unique assets, or economies of scale[1]. Its brand is still relatively new and less entrenched compared to major players in the sector. The company's narrow moat implies it may sustain above-average returns for up to 10 years but is vulnerable to competitive threats over a longer horizon as rivals mimic or outpace its features and services[3].

In summary, Dave’s moat exists but is relatively weak and likely temporary amid rapid fintech innovation[1][3].

Leadership

Dave Inc. (ticker: DAVE) is led by Jason Wilk, who is a co-founder and has served as Chief Executive Officer since May 2016[1][2]. Wilk has over 15 years of experience building digital companies. As a co-founder, he holds a significant ownership stake in the company, although the exact percentage is not specified in the provided information. Wilk’s long tenure suggests strong founder-led leadership and a deep commitment to the company’s vision and growth[1][2].

Financial Health

Dave Inc. (DAVE) demonstrates robust financial health, with strong revenue growth (47% year-over-year), net income of $28.8 million, and adjusted EBITDA of $44.2 million in Q1 2025[1][2][3]. The company has a healthy balance sheet, boasting a current ratio of 8.59 and a debt-to-equity ratio of 0.38, both indicating ample liquidity and low leverage[3][5]. Dave is generating free cash flow, with a net margin of 26.68% and strong profitability[5]. Shareholder dilution risk is low, as Dave initiated a $50 million share repurchase program, making it a net repurchaser[2].

Last updated Jun 6, 2025