Key Points
Dave raised its 2025 revenue guidance to a range of $505 million to $515 million.
Still, despite great earnings and guidance, DAVE plummeted $54 a share.
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Shares of Dave Inc. (NASDAQ: DAVE) are down about $54 a share, or 22% on the day.
That’s even as DAVE EPS of $3.14 beat estimates by $1.20. And after revenue of $132.7 million, up 64.4% year over year, beat by $18.07 million.
The company also raised its 2025 revenue guidance to a range of $505 million to $515 million. It raised its adjusted EBITDA guidance to a range of $180 million to $190 million.
According to Founder and CEO, Jason Wilk:
“Our strong first-half results reinforce our confidence that Dave is firmly on track for another record year. We are once again raising our 2025 Revenue and Adjusted EBITDA outlook. We’re entering the second half of the year with strong momentum and even greater conviction in our long-term opportunity, as we remain committed to innovation, member value, and long-term shareholder returns,” as quoted in a company press release.
Still, despite great earnings and guidance, DAVE plummeted $54 a share.
What may be weighing the stock down is an increase in its average 28-day delinquency rate of 2.4%, as compared to 2.03% year over year. With an already stretched valuation, this challenge may have been the trigger for the pullback. We also have to consider that increased competition in the fintech sector poses challenges and risks to its wild valuation.
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