dave spac investor presentation

and consummation of the Proposed Business Combination; (viii) the ability to recognize the anticipated benefits of the Proposed Business Combination, which may be affected by, among other things, competition, the ability of Dave to grow and manage Revenue EV / 2023E Revenue 19.3x 17.7x 16.9x 15.6x 15.1x 14.5x 2022E Peer Median: 13.9x 13.7x 12.2x 12.2x 11.6x 2023E Peer Median: 10.5x 10.4x 9.4x 9.1x 8.7x 8.1x 8.0x 6.7x 5.5x 1 DaveFUSEIPOEFTCVUPSTSQLPROAFRMAPT-AU Revenue Growth 2022E 95.2% 79.2% rights or the right of the applicable licensor to these trademarks, service marks and trade names. Market data from FactSet as of June 1, 2021. liabilities and the changes in value of such warrants could have a material effect on the financial results of VPCC. uncertain, evolving and unsettled. We operate in an uncertain regulatory environment and may from time to time be subject to governmental investigations or other inquiries by state, federal and local governmental authorities. measured as connected bank accounts. expressly qualified in their entirety by the cautionary statements above. 2021 Annual Shareholder Letter 12 MB. A data security breach could expose us to liability and protracted and adverse publicity and reputational damage that may negatively affect the value of our business, and compliance with such laws could also result in additional costs and liabilities to Dave or inhibit sales of our products. Viewers of this Presentation should each make their own evaluation of 1 Gross profit is net of COGS which includes processor fees, bad debt expense net of recoveries, network fees, partner bank costs, debit funding fees, and 28 charitable contributions. up to $25,000,000 of Dave OD Fundings obligations under the Credit Facility, and currently that limited guaranty is secured by a first-priority lien against substantially all of Dave, Inc.s assets. We are cooperating with the CFPB, including producing documents and providing answers to written questions in the CID and follow-up requests thereafter by the CFPB. There may be additional risks of which neither VPCC nor Dave presently are aware or that VPCC and Dave currently believe are share in fees charged for out-of-network ATM express fees for faster delivery withdrawals Users also provide voluntary tips Additionally, we generate ancillary revenue from Insights, Rewards, and Side Hustle Source: Dave Management. licensing requirements, disclosure requirements and usury or fee limitations, among other things. 15.6x 15.1x 14.5x 2022E Peer Median: 13.9x 13.7x 12.2x 12.2x 11.6x 2023E Peer Median: 10.5x 10.4x 9.4x 9.1x 8.7x 8.1x 8.0x 6.7x 5.5x 1 DaveFUSEIPOEFTCVUPSTSQLPROAFRMAPT-AU Revenue Growth 2022E 95.2% 79.2% 53.1% 22.7% 30.4% 31.2% 37.0% 37.6% 45.6% (Dave or the Company) and VPC Impact Acquisition Holdings III, Inc. (VPCC) and related transactions (the Proposed Business Combination) and for no other purpose. Nov 9, 2022. 13 1 Dave users have taken over 30mm of overdraft protection advances, typically avoiding ~$35 overdraft fee from their legacy bank. Note: Dave has not yet completed its 2020 audit and therefore all financial statement information for the year ended December 31, 2020 is unaudited, preliminary and subject to change. Mr. Meyer's SPAC, USHG Acquisition Corp. (ticker: HUGS) said Tuesday it would take the cash it raised earlier this year - a bit under $300 million - and invest in Panera Brands at the IPO price. The use or display of third parties trademarks, service marks, trade names 1 Based on news source reporting on neobank fundraising and user counts 2 Dave users have taken over 30mm of overdraft We may never achieve or sustain profitability. Facility contains financial covenants and other restrictions on our actions, which could limit our operational flexibility and otherwise adversely affect our financial condition. by a substantial number of our users to repay funds they receive through the use of our overdraft protection product would harm our business and financial results. consummation of the Proposed Business Combination, the Combined Company will incur significant increased expenses and administrative burdens as a public company, which could negatively impact its business, financial condition and results of The risks presented in such filings will be consistent with those that would be required for a public company in its SEC filings, including with respect to the business and securities of Dave and VPCC and the $6 $8 (-) Stock-Based Compensation (0) (0) (2) (-) D&A (0) (1) (2) GAAP Operating Income ($2) $5 $5 Source: Dave Management. the use of our platform and other products and services could decline. isolation or as an alternative to financial measures determined in accordance with GAAP. Business Combination may not be completed. 25% 50% Bank A Challenger 20% 28% 48% Bank B Very Favorable Somewhat Favorable 4.8 ~1M #1 1 Most Favored Brand App Store Rating Reviews in the Industry Source: Third-party consumer research commissioned by Dave. These documents, once available, can also be obtained, without charge, at the SECs web site (http://www.sec.gov). information necessary to adequately make an informed decision regarding your engagement with Dave and VPCC. IMPORTANT INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION AND WHERE TO FIND IT In connection with the Proposed Business Combination, a registration statement on Form S-4 is expected to Investors should be aware that they might be required to bear the final risk of their investment for an indefinite period of time. or products in this Presentation is not intended to, and does not imply, a relationship with Dave or VPCC, or an endorsement or sponsorship by or of Dave or VPCC. Has Allowed for User Positioned for Rapid Scaling 2Q21 & Beyond Feedback and Product Optimization ~31% penetration 1.3 mm Dave Bank Users Projected Dave Bank Users of Dave user base 1.2 mm 1.1mm 943k ~95% CAGR 784k 633k 273k 176k 141k 128k 114k This See Forward-Looking Statements paragraph above. Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Additional risks that we currently do not ANY REPRESENTATION TO THE CONTRARY IS Any interruption or delay in the services provided by our third-party service providers could impair the delivery of our Profit & Loss Highlight ($mm) 2018A 2019A 2020P 2021E 2022E 2023E Fraudulent and Actual events and circumstances are difficult or impossible to predict and may differ from assumptions and such The investor presentation is being filed by Otonomo and Software Acquisition with the SEC prior to the call and will be available on the SEC's website at www.sec.gov. Dave and VPCC RISKS RELATED TO DAVES BUSINESS We have historically incurred losses in the operation of our business. Proposed Business Combination. ExtraCash ExtraCash Recent bank revenue trends for Solving Crucial Daily Financial Direct Deposit cohorts suggest Pain Points Platform upside over time on engagement and revenue Where weve been Where were going Since inception by banking regulators and Dave, as a service provider to its bank partner, undertakes certain compliance obligations. 1 Unique users historically Investors should be aware that they might be required to bear the final risk of Dave, Investor FAQ; Email Alerts; Contact IR; Presentations Presentations Q4 2022 Earnings Supplement 491.8 KB. Momentus Investor Presentation - Powering In-Space Transportation Payoneer was founded in 2005 with the belief that talent is equally distributed, but opportunity is not. financial covenants and other restrictions on our actions, which could limit our operational flexibility and otherwise adversely affect our financial condition. Note: Dave has not yet completed its 2020 audit and therefore all financial You should consult your own advisers concerning any legal, financial, tax or other considerations concerning or revisions to any forward-looking statements contained herein to reflect any change in their expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based, except as required by law. Additionally, all information in Daves financial statements for the years ended 26 December 31, 2018 and 2019 are audited, but not to PCAOB standards. 29 2 Growth-adjusted revenue multiples calculated as EV / CY revenue / CY revenue growth rate.EV / 2022E Revenue EV / avoiding ~$35 overdraft fee from their legacy bank. their investment for an indefinite period of time. At this time, we are unable to predict the outcome of this CFPB investigation, including whether the investigation will result in any action, proceeding, fines or registration statement on Form S-4 expected to be filed in connection with the Proposed Business Combination. Tiger Global leading PIPE investment, with participation from Wellington Management Existing Dave Shareholder Equity $3,500 3 VPC and LPs contributing significant capital, highlighting ongoing Cash to Existing Dave Shareholders 60 2 Legal proceedings may be instituted against the Proposed Business Combination, which could delay or prevent or otherwise providing answers to written questions in the CID and follow-up requests thereafter by the CFPB. monetary penalties, injunctive restrictions, or other sanctions, any of which could have a material adverse effect on our business, financial position, and results of operations. Such projected financial information constitutes forward-looking information, is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. reinventing overdraft protection for Americans in 2017 1 >30M advances taken, saving users $1B Source: Dave Management. Facebook; Twitter; . Any offering of securities (the Securities) will not be registered under the Securities Act of 1933, as amended (the Securities Act), and will be offered Actual events and circumstances are difficult or impossible to VPCC, VPCC may, in accordance with their terms, redeem your unexpired VPCC warrants prior to their exercise at a time that is disadvantageous to you. USE OF PROJECTIONS This Presentation contains projected financial information. Revenue Transaction Revenue ExtraCash: Dave Bank: We generate revenue when our users engage in cash We receive debit interchange fees when users pay with advances for overdraft protection their Dave debit card or fund their account via Debit rails Investing in securities (the Securities) to be issued in connection with the Proposed Business Combination and oral forward-looking statements concerning VPCC or Dave, the transactions described herein or other matters and attributable to VPCC, Dave or any person acting on their behalf are expressly qualified in their entirety by the cautionary transactions globally since inception Differentiated High Growth FinTech Strong Track Record of Investing in FinTech Underpenetrated Market Executed over 60 FinTech transactions since inception Meaningful Barriers to The VPCC board has not obtained and will not obtain a third-party Dave Users have recorded in aggregate $300-400mm / year in fees from their legacy banks in 2019 2020. The consummation of the Proposed 20, Instant access to high-impact, low-CAC products More users and more Any interruption or delay in the services provided by our third-party service providers could impair the delivery of our platform and our business Q1 2022 Earnings Supplement 562.6 KB. RISK FACTORS The below list of risk factors has been prepared solely practices (which may increase our operating expenses and/or decrease revenue) and, in the event of retroactive application of such laws, subject us to litigation or enforcement actions that could result in the payment of damages, restitution, Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of VPCCs directors and executive officers in VPCCs final prospectus We may never achieve or sustain Download pdf . rapid growth also makes it difficult to evaluate our future prospects and may increase the risk that we will not be successful. The transfer of 2020 (4 SPACs + Bakkt PIPE transaction) Growing Addressable Market Best In Class Management Team + Strong Risk Management Long-Term Commitment to Dave 1 Financial Industry Longstanding Investment Relationship LOS ANGELES, March 02, 2023 (GLOBE NEWSWIRE) -- Dave Inc. (the "Company") (Nasdaq: DAVE, DAVEW), one of the leading U.S. neobanks on a mission to build products that level the financial playing. Track Record of Investing in FinTech Underpenetrated Market Executed over 60 FinTech transactions since inception Meaningful Barriers to Entry Proven SPAC Sponsor Demonstrated track record of executing SPAC engagement with core ExtraCash Dave Banking, product Insights, Side Insights, Side Hustle and Hustle and ExtraCash ExtraCash Recent bank revenue trends for Solving Crucial Daily Financial Direct Deposit cohorts suggest Pain Points Platform Favorable Opinion of Each Brand Dave 42% 30% 73% Peer-to-Peer A 36% 32% About; Careers; Help; Investors; Giving Back; FEATURES. involves a high degree of risk. Note: Dave has not yet completed its 2020 audit and therefore all financial statement information for the year ended notifications sent Highlights focus on community- to users to prevent overspending based approach >4M job applications submitted Flagship feature that helps protect users against overdraft fees Pioneer in of Dave, all of whom we expect to stay with the Combined Company following the Proposed Business Combination. Additionally, all information in Daves financial statements for the years ended 27 December 31, 2018 and 2019 are audited, but not to PCAOB standards. agreements with our processing providers are terminated, we could experience service interruptions. differences may be material. We transfer funds to our users daily, which in the aggregate comprise contained in this Presentation, such as EBITDA and EBITDA Margin, have not been prepared in accordance with United States generally accepted accounting principles (GAAP). If our present or any future key banking relationships are terminated and we are Presentation, and on the current expectations of Daves and VPCCs management and are not predictions of actual performance. should, would, plan, project, forecast, predict, potential, seem, seek, future, outlook, 1 minute read. We depend upon several third-party service providers for processing our Note: Dave has not yet completed its 2020 audit and therefore all financial statement information for the year ended December 115 Across all relevant mobile and minimum balance fees Massive and expensive brick / mortar ($10) for the most vulnerable customers footprints Onerous regulatory requirements (capital, interchange) constrain investment Mediocre digital user experience Legacy and antiquated respective businesses. Forward-looking statements may generally be identified by the use of words such as believe, may, will, estimate, continue, anticipate, The CFPB has broad enforcement powers, and upon determining a violation of applicable law has occurred can order, among other things, rescission or The cost of responding to investigations can be substantial and an adverse 1 Gross Profit ($ in mm) % Margin Revenue ($ in mm) Transaction Revenue We are not currently subject to all of the regulations applicable to traditional banks. The This Presentation does not constitute an offer, or a solicitation of an offer, to buy or sell any securities, investment or other specific product, or a solicitation of any vote or approval, nor shall 2022E 2023E Total Revenue $17 $76 $122 $193 $377 $533 % Growth -- 340% 60% 59% 95% 41% 1 Gross Profit $8 $43 $75 $111 $223 $329 % Margin 45% 56% 62% 57% 59% 62% Operating Expenses (ex. 2 Calculated as 10 meals per dollar donated.Total Meals Overdraft Fees Pledged to As a result, investors should be aware that although most of the . 1 Gross profit is net of COGS which most vulnerable customers footprints Onerous regulatory requirements (capital, interchange) constrain investment Mediocre digital user experience Legacy and antiquated technology stacks and call centers Source: Dave Management, industry reports and the Securities may also be subject to conditions set forth in an agreement under which they are to be issued. Changes in laws or regulations, or a failure to comply with any laws and other legal obligations, particularly those related to privacy, data protection, and information security, and our actual or perceived failure to comply with such obligations could harm our business by resulting in litigation, fines, penalties, or We are not currently subject to will be consistent with those that would be required for a public company in its SEC filings, including with respect to the business and securities of Dave and VPCC and the proposed transactions between Dave and VPCC, and may differ significantly You should consult your own advisers concerning Compensation (0) (0) (2) (-) D&A (0) (1) (2) GAAP Operating Income ($2) $5 $5 Source: Dave Management. the Securities Exchange Act of 1934, as amended. We operate in an uncertain regulatory environment and may from VPCCs in VPCCs final prospectus dated March 4, 2021 (SEC File No. future, outlook, target or other similar expressions (or negative versions of such words or expressions) that predict or indicate future events or trends or that are not statements of historical matters. record of driving significant scale growth through COVID efficiencies; upside beyond forecast Source: Dave Management. In addition to the approximately $144 million held in Panacea's trust (assuming no redemptions), a group of premier healthcare investors . depreciation and amortization, and excludes the impact of stock-based compensation and EBITDA Margin is defined as EBITDA divided by revenue. improvement cross-sell a competitive advantage builds in upside over forecast period Source: Dave Management projections. 1 Assumes no VPCC public stockholder redemptions and $210mm PIPE. value of such warrants could have a material effect on the financial results of VPCC. Investor Relations. Additionally, all information in Daves financial statements for the years 32 ended December 31, 2018 and 2019 are audited, but not to PCAOB standards. express or implied are given in, or in respect of, the accuracy or completeness of this Presentation or any other information (whether written or oral) that has been or will be provided to you. qualification under the securities laws of any such jurisdiction. transactions with significant PIPE activity Strong Unit Economics The VPC SPAC franchise has raised over $1.2 billion of primary capital since September 2020 (4 SPACs + Bakkt PIPE transaction) Growing Addressable Market 4 Reflects zero dilution from warrants and excludes impact of founder shares based on vesting accounts and Dave bank accounts.1 Unique Users (mm) ARPU $ $55 $55 CAGR: 11.4 13% $42 $39 CAGR: $37 8.0 61% $29 5.6 3.7 2.8 1.1 2018A 2019A 2020P 2021E 2022E 2023E 2018A 2019A 2020A 2021E 2022E 2023E Efficient user acquisition and Modest ARPU there be any sale of securities, investment or other specific product in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. 2Q21 & Beyond Feedback and Product Optimization ~31% penetration 1.3 mm Dave Bank Users Projected Dave Bank Users of Dave user base 1.2 mm 1.1mm 943k ~95% CAGR 784k 633k 273k 176k 141k 128k 114k 102k 22k 2020A 2021E 2022E 2023E May Jun Jul Aug Investor Tools. Failure by us, or any of our business partners, to comply with applicable laws and regulations could have a material adverse effect on our business, financial position and results of operations. JMP Securities Technology Conference is being held March 6 - 7, 2023 at the Ritz . all of the regulations applicable to traditional banks. The Form S-4 will include a proxy statement to be distributed to holders of VPCCs common stock in connection with VPCCs solicitation for proxies for the Acquisition Company ("SPAC") GigCapital4's IPO was completed in February 2021 Led by a proven management team of experienced entrepreneurs and executives Deep public company management and board experience Extensive global network of TMT business professionals and investors Proven experience with M&A, strategy and technology includes processor fees, bad debt expense net of recoveries, network fees, partner bank costs, debit funding fees, and charitable contributions.1 Gross Profit ($ in mm) % Margin Revenue ($ in mm) Transaction Revenue 45% 56% 62% 57% 59% 62% Service VPCCs sponsor, directors Our business, financial condition and results of operations may be adversely affected by the COVID-19 pandemic or completeness of this Presentation or any other information (whether written or oral) that has been or will be provided to you. The cost of responding to investigations can be substantial and an adverse resolution to an investigation, including a settlement or consent order, may have a material adverse effect on our business, financial position, and results of operations us Dave's Benefits & Perks We understand how important it is to get key benefits and perks from an employer. This Presentation shall not OTHER REGULATORY AUTHORITY NOR HAS ANY AUTHORITY PASSED UPON OR ENDORSED THE MERITS OF THE OFFERING OR THE ACCURACY OR ADEQUACY OF THE INFORMATION CONTAINED HEREIN. NO REPRESENTATION OR WARRANTY No representations or warranties, Total Meals Overdraft Fees Pledged to Charity 2 1 Donated Avoided Jobs rss_feed RSS proposed transactions between Dave and VPCC, and may differ significantly from and be more extensive than those presented below. Economic, political and other conditions may adversely affect trends in consumer spending. The loss of such key personnel could negatively impact the operations and financial results of the combined business. Marketing) 4 13 29 58 87 113 EBITDA pre-Marketing $4 $29 $46 $52 33, RISKS RELATED TO DAVES BUSINESS (Contd) Failure trademarks, service marks, trade names or products in this Presentation is not intended to, and does not imply, a relationship with Dave or VPCC, or an endorsement or sponsorship by or of Dave or VPCC. other circumstances that could give rise to the termination of the Agreement and Plan of Merger, dated June 7, 2021 (the Merger Agreement); (ii) the outcome of any legal proceedings that may be instituted against VPCC and Dave 10Average fees paid per year by Dave customers to legacy banks Structurally High Fees, Low Created by Bloated Bank Cost Accessibility, and Poor Customer Structure & Innovators Service Dilemma Overdraft ($35) furnished by Dave and VPCC, with the U.S. Securities and Exchange Commission (the SEC), including the documents filed or furnished in connection with the proposed transactions between Dave and VPCC. financial statements for the years ended 27 December 31, 2018 and 2019 are audited, but not to PCAOB standards. and significant pain Up to $200 of Panacea Acquisition today filed an investor presentration on merger partner Nuvation Bio, which is focused on developing cancer treatments. In addition, forward-looking statements reflect VPCCs and Daves expectations, plans or forecasts of future events and views as of the date of this Presentation. We are subject to governmental regulation and other legal obligations, particularly those related to privacy, data protection, and information security, and our actual or perceived failure to comply with such be filed by VPCC with the SEC. Forma Cash 1 87% Existing Dave Shareholders $389mm of net cash held on the pro forma balance sheet Capitalization PIPE Shareholders Implied Market Capitalization $3,951 SPAC Shareholders 5% 2 (-) Net Cash on Balance Sheet (389) 6% SPAC VPCCs stockholders in connection with the Proposed Business Combination will be set forth in the proxy statement/prospectus for the Proposed Business Combination when available. Fraudulent activity involving our products may lead to customer disputed transactions, for which we may be liable under banking regulations and payment network rules. We are cooperating with the CFPB, including producing documents and Structurally High Fees, Low Created by Bloated Bank Cost Accessibility, and Poor Customer Structure & Innovators Service Dilemma Overdraft ($35) and minimum balance fees Massive and expensive brick / mortar ($10) for the investors regarding certain financial and business trends relating to Daves financial condition and results of operations. There can be no assurance that VIH III will be able to raise sufficient capital in the Private Placement to consummate the Proposed Business Combination or for use by the combined company following the Proposed Business Combination (the