Benchmark analyst Mark Palmer has increased the price target for Dave (DAVE, Financial) from $202 to $229, maintaining a Buy rating on the stock. This adjustment comes after Dave's impressive first-quarter earnings, which surpassed market expectations both in revenue and earnings. The company's success is attributed to ongoing enhancements in its key operational metrics.
During a recent investor meeting arranged by Benchmark, Dave's CEO Jason Wilk and CFO Kyle Beilman highlighted several components of the company's business model that are pivotal in driving consistent outperformance. This discussion underscored the structural strengths of Dave's platform that have led to its remarkable results.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Dave Inc (DAVE, Financial) is $182.00 with a high estimate of $206.00 and a low estimate of $130.00. The average target implies an downside of 0.53% from the current price of $182.97. More detailed estimate data can be found on the Dave Inc (DAVE) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Dave Inc's (DAVE, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Dave Inc (DAVE, Financial) in one year is $37.94, suggesting a downside of 79.26% from the current price of $182.97. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Dave Inc (DAVE) Summary page.
DAVE Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Dave Inc (DAVE, Financial) reported record-setting first-quarter results, with topline growth accelerating to its highest level since 2021.
- Adjusted EBITDA grew by 235% to $44.2 million, marking the largest dollar increase in the company's history.
- The company raised its full-year 2025 guidance for both revenue and adjusted EBITDA, marking the seventh consecutive quarter of either raising or exceeding guidance.
- The transition to a new fee structure for extra cash transactions has unlocked enhanced member lifetime value through improvements in conversion, retention, and monetization.
- Dave Inc (DAVE) achieved a 15% year-over-year growth in total members, ending the first quarter with 12.4 million members.
Negative Points
- Customer acquisition cost (CAC) increased by 13% year over year, reflecting strategic refinements in the marketing approach.
- Provision for credit losses increased by 7% year over year to $10.6 million, primarily due to increased origination volumes.
- The company's net income declined to $28.8 million from $34.2 million in Q1 of the previous year due to a non-recurring gain in 2024.
- The 28-day delinquency rate is expected to normalize throughout the rest of the year, potentially impacting credit performance.
- The ongoing litigation with the Department of Justice remains unresolved, with a ruling on the motion to dismiss expected in Q3.
