Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the new sponsor bank announcement and how the economics compare to your existing relationship? Are there new products this relationship will enable? A: (Jason Wilk, CEO) The costs are comparable between the two banks, and we are optimistic about the economics. The new bank can be a key partner in launching a new credit product next year.
Q: What strategies are you considering to increase card spend and make it a bigger contributor to the business? A: (Jason Wilk, CEO) We plan to merge extra cash and banking products to increase card spend. We are exploring rewards to drive further attachment and make the Dave card more top-of-wallet.
Q: Can you provide more detail on the impressive credit performance and customer cost improvements? A: (Kyle Bauman, CFO) Our new underwriting models and cash AI have improved credit performance. Better retention rates also support credit performance, as longer customer tenure leads to better credit outcomes.
Q: How are you balancing top-line growth with margin expansion as you look to Q4 and 2025? A: (Kyle Bauman, CFO) We focus on marketing investments with acceptable returns, maintaining strong top-line growth while achieving high profitability levels. Our flow-through from gross profit to EBITDA is high, supporting earnings growth and margin expansion.
Q: Can you elaborate on the new fee model and its impact on subscription pricing? A: (Jason Wilk, CEO) We are working on a mandatory fee model for extra cash access, separate from subscription pricing. Our goal is to maintain or exceed lifetime value as a replacement for instant transfer fees and tips.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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