Dave (DAVE) Stock Forecast & Price Target

Dave Inc. has demonstrated robust financial performance, with a significant 38% year-over-year revenue increase in 4Q24, reaching $100.9 million, which surpassed market expectations. The company reported an 18% year-over-year growth in annualized revenue per monthly transacting member, supported by a notable increase in monthly transacting members to 2.5 million, reflecting strong customer engagement. Additionally, the 44% year-over-year rise in ExtraCash originations, coupled with a consistent increase in ARPU and operational efficiencies indicated by projected 27% to 39% growth in adjusted EBITDA, underscores a positive trajectory for future performance.

Dave Inc.'s stock has experienced significant downward pressure, with shares declining over 12% after the company's fourth-quarter earnings report, despite beating expectations and providing favorable guidance for fiscal year 2025. The company faces numerous risks, including potential repayment issues with ExtraCash advances, competitive threats from established financial institutions and FinTech rivals, and the challenges associated with brand reputation, which could erode customer trust. Additionally, economic factors such as rising unemployment could lead to increased delinquency rates and reduced growth prospects, coupled with regulatory changes that may raise compliance costs and impact operational efficiency.