Dave Inc. authorizes $50 million stock buyback program

LOS ANGELES - Dave Inc. (NASDAQ:DAVE), a prominent U.S. neobank with a market capitalization of $1.09 billion, announced today that its Board of Directors has approved a new share repurchase initiative. The program allows for the buyback of up to $50 million of its outstanding Class A common stock. The company has not set a fixed expiration date for the repurchase program, indicating that the buybacks will be conducted based on market conditions, liquidity, and strategic considerations. According to InvestingPro data, Dave maintains a strong liquidity position with a current ratio of 8.05, suggesting ample resources for the buyback program.

Kyle Beilman, the Chief Financial Officer of Dave, stated that the authorization of the share repurchase program reflects the company’s belief in its financial robustness, long-term growth potential, and its capacity to generate free cash flow. Beilman’s confidence appears well-founded, as InvestingPro analysis shows the company achieved impressive revenue growth of 34% and maintains healthy profitability metrics. The company generated $347.08 million in revenue over the last twelve months, with a robust gross profit margin of 60.4%. Beilman emphasized that the company views share repurchases as a strategic way to potentially enhance shareholder value, especially considering Dave’s current market valuation and liquidity position.

The repurchase program will be carried out through various methods, which may include open market transactions and privately negotiated deals, adhering to Rule 10b-18 of the Securities Exchange Act of 1934 and other relevant regulations. Dave’s management will determine the specific timing, manner, and total amount of repurchases, taking into account market conditions, the stock’s price, the company’s performance, and other investment opportunities. With an Altman Z-Score of 7.54 indicating strong financial health, the company appears well-positioned to execute this program. It’s important to note that the program does not commit Dave to repurchase any specific number of shares, and it can be suspended, modified, or discontinued at the company’s discretion.

Dave Inc. is known for leveraging disruptive technologies to offer banking services that aim to be more cost-effective than traditional incumbents. The neobank serves millions of Americans and is recognized for its innovation in the fintech space. For deeper insights into Dave’s financial health and growth prospects, investors can access comprehensive analysis and 11 additional ProTips through InvestingPro’s detailed research reports.

The announcement of the share repurchase program is based on a press release statement from Dave Inc. and includes forward-looking statements regarding the expected impact and timing of the share repurchases. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from those projected.

Investors and interested parties are reminded that forward-looking statements are not guarantees of future performance and are advised to consider the risk factors outlined in Dave’s recent SEC filings, including its Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Dave does not undertake any obligation to update forward-looking statements beyond the date of the press release.

In other recent news, Dave Inc reported impressive fourth-quarter results for 2024, with earnings per share (EPS) reaching $2.04, far surpassing the expected loss of $1.13. The company’s revenue increased to $101 million, marking a 38% year-over-year growth, which exceeded analyst projections by 7%. JMP Securities maintained a Market Outperform rating with a $135 price target, citing Dave Inc’s consistent performance in exceeding expectations. Canaccord Genuity also raised its price target to $130, maintaining a Buy rating, following the company’s robust earnings report. Benchmark analysts reiterated a Buy rating with a $145 target, highlighting the significant increase in ExtraCash advance originations and Dave Debit Card spending as key contributors to the company’s success. Dave Inc’s management provided an optimistic outlook for 2025, projecting a mid-20% organic growth in revenue and continued margin expansion. Analysts noted the company’s effective operating model and its ability to handle higher volumes with minimal additional costs. Despite these strong financial results, Dave Inc’s stock experienced a decline, reflecting mixed investor sentiment.

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