US neobank Dave achieves profitability over Q4 2023
US neobank Dave has achieved its first quarterly profit almost eight years after its inception in 2016.
Neobank Dave became profitable in Q4 2023
According to its recently published full-year financial statement for 2023, the Los Angeles-based neobank generated a GAAP net income of $200,000 in the last quarter of 2023, while also achieving an adjusted EBITDA of $10 million.
This is after it produced a combined $48.7 million loss in GAAP net income across the preceding three quarters, along with a $20.1 million adjusted EBITDA loss over the same period.
Elsewhere, the filing also reveals a healthy and steady year-on-year increase in the neobank’s GAAP net operating revenues, rising 26% from 2022’s $204.8 million to last year’s $259.1 million, with $26.9 million of this latter figure consisting of net transaction-based revenue.
Operating highlights for Q4 show that the neobank totalled 683,000 new members, with customer acquisition costs down 12% versus Q4 2022. Its total number of monthly transacting members also surpassed just over 2 million. Year-on-year, total debit card spending also grew by 41% to $369 million.
Dave has sought to differentiate its digital offering by embracing AI technology as a means to further its lending and credit abilities. This is best noted through its CashAI underwriting model, which it leverages to deliver loans of up to $500 through its ExtraCash product.
Jason Wilk, founder and CEO of Dave, says the neobank’s recent financial performance “displays the benefits of the investments we have made in our technology platform” and that, into 2024, it plans to “further enhance our AI-enabled platform and products”.
