Dave Inc. ( NASDAQ: DAVE ) stock slumped 16% in Thursday after-hours trading after the banking app company lowered its guidance for 2022 as it shifts its focus to engaging users from new member growth.
It now expects non-GAAP operating revenue of $200M-$215M, down from its previous range of $200M-$230M and non-GAAP variable profit margin of 40%-44% vs. the 44%-48% range it issued in May.
The higher cost of capital is also prompting the company to shift some near-term investment from new member growth to lifetime value growth, said co-founder and CEO Jason Wilk. "With this shift, we anticipate we can still maintain strong growth while significantly de-risking our path to profitability without relying on raising additional equity capital."
Q2 adjusted EBITDA of -$28.5M widened from -$4.5M in the year-ago quarter.
Non-GAAP variable profit margin narrowed to 39% from 55% a year ago, while non-GAAP operating expenses increased to $28.5M from $17.1M in Q2 2021.
Q2 non-GAAP operating revenue of $47.0M rose from $38.4M.
The company added 560K net new members during the quarter bringing total members to ~7M.
Conference call at 5:30 PM ET
Earlier, Dave ( DAVE ) reports Q2 results
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Dave Inc. stock drops after cutting guidance as cost of capital rises