Dave Inc (NASDAQ:DAVE), a leading neobank, saw its shares surge 9.44% on Tuesday after reporting better-than-expected fourth-quarter results and issuing an upbeat outlook for 2025.
The company reported Q4 adjusted earnings of $2.04 per share, outpacing analysts' estimates of $0.42 by a wide margin. Revenue rose 38% year-over-year to $100.9 million, also beating expectations of $95.45 million. Dave's strong performance was driven by robust demand for its ExtraCash product, with originations up 44% from a year ago.
For fiscal 2025, Dave forecasts revenue of $415 million to $435 million, representing growth of 20% to 25% year-over-year. The company also expects adjusted EBITDA to range from $110 million to $120 million, up 27% to 39% from 2024 levels. This upbeat outlook reflects the benefits of Dave's recently implemented new fee structure, which is expected to boost ExtraCash limits, monetization, and customer lifetime value.
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