Digital banking platform Dave (NASDAQ: DAVE) will be announcing earnings results this Tuesday before market open. Here’s what you need to know.
Dave beat analysts’ revenue expectations by 16% last quarter, reporting revenues of $131.8 million, up 64.5% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.
Is Dave a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Dave’s revenue to grow 44.3% year on year to $133.5 million, improving from the 40.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.34 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dave has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 15.7% on average.
Looking at Dave’s peers in the personal loan segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FirstCash delivered year-on-year revenue growth of 11.7%, beating analysts’ expectations by 9.3%, and LendingClub reported revenues up 31.9%, topping estimates by 3.9%. FirstCash traded up 7.4% following the results while LendingClub was also up 10.5%.
Read our full analysis of FirstCash’s results here and LendingClub’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the personal loan stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.8% on average over the last month. Dave is up 18.8% during the same time and is heading into earnings with an average analyst price target of $275.38 (compared to the current share price of $238).
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