Dave Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total operating revenues of $92.5 million for the third quarter, marking a 41% increase from $65.8 million in the same period of 2023. This growth was driven by a substantial rise in service-based revenue, which reached $83.4 million, up from $59.2 million year-over-year. The increase in revenues was attributed to higher processing fees, tips, and subscriptions, with processing fees alone rising 50% to $58.7 million.

For the nine months ended September 30, 2024, total operating revenues amounted to $246.2 million, a 32% increase from $186.0 million in the prior year. The company reported a net income of $466,000 for the third quarter, a significant turnaround from a net loss of $12.1 million in the same quarter of 2023. For the nine-month period, net income was $41.1 million, compared to a net loss of $48.7 million in the previous year.

Despite the positive revenue growth, total operating expenses for the third quarter increased to $89.9 million, up 18% from $76.4 million in the prior year. This rise was primarily due to higher compensation and benefits expenses, which increased by 33% to $30.8 million, largely driven by stock-based compensation. Additionally, legal expenses surged due to a $7 million settlement related to ongoing litigation with the Federal Trade Commission (FTC).

The company’s balance sheet showed total current assets of $254.7 million as of September 30, 2024, down from $276.9 million at the end of 2023. Cash and cash equivalents decreased to $35.1 million, while ExtraCash receivables increased significantly to $165.5 million, reflecting the growing demand for the company’s liquidity products. Total liabilities decreased to $116.4 million, down from $207.0 million at the end of 2023, contributing to an increase in total stockholders’ equity to $155.8 million.

Strategically, Dave Inc. continues to focus on enhancing its financial services platform, with a particular emphasis on its flagship product, ExtraCash, which allows members to access short-term liquidity without fees. The company is also navigating regulatory challenges, including a recent FTC lawsuit alleging violations related to its cash advance products, which could have significant financial implications.