Nearly eight years after its founding in 2016, US neobank Dave has realized its first quarterly profit.
Nearly eight years after its founding in 2016, US neobank Dave has realized its first quarterly profit.
The Los Angeles-based neobank achieved an adjusted EBITDA of $10 million in the last quarter of 2023, in addition to a GAAP net income of $200,000, as per its newly released full-year financial statement for 2023.
This comes after it generated an adjusted EBITDA loss of $20.1 million and a cumulative $48.7 million loss in GAAP net income for the three quarters prior.
The neobank's GAAP net operating revenues increased year over year by 26% from $204.8 million in 2022 to $259.1 million last year, with $26.9 million of the amount coming from net transaction-based revenue, according to other sections of the document.
Operating highlights for Q4 2022 reveal that customer acquisition costs decreased by 12% compared to Q4 2022, and the neobank added 683,000 new members. Its monthly transacting membership count also exceeded two million. Debit card spending as a whole increased by 41% to $369 million in the previous year.
In an effort to set itself apart from the competition, Dave has embraced AI technologies to improve its credit and lending capabilities. The best example of this is its CashAI underwriting algorithm, which it uses to provide $500 loans through its ExtraCash product.
The neobank's recent financial performance, according to Dave's founder and CEO Jason Wilk, "displays the benefits of the investments we have made in our technology platform," and the company has plans to "further enhance our AI-enabled platform and products" through 2024.
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