Dave Inc. (NASDAQ:DAVE) Q1 2024 Earnings Call Transcript

Q – Devin Ryan: Yes. Thanks, guys for taking the call up here. So just one on marketing and you heard obviously, the commentary, you’ll look to ramp that a little bit and we can back into some overall expense numbers just based on the revenue and EBITDA guide. But just how should we be thinking about that? Is that going to come through in the way of promotions or kind of targeted ad placement? And then, how do you guys think because you guys have been obviously, running pretty lean here over the last year, and done a great job on getting to very strongly positive adjusted EBITDA and even GAAP profitability recently. But how much, can you really lean in on marketing, if you want to turn that back on where you can really benefit from that investment?

How should we think about the return on investment, before you start to hit maybe diminishing returns? And I asked the question obviously, because we look at your CAC and LTV performance and it would seem to support more marketing that you can get the benefit off of that. So, I’d just love to hear a little bit more about the components of it, where it’s going to come from and then how you’re thinking about it more broadly?

Kyle Beilman: Sure. Jason, do you want me to take that?

Jason Wilk: Yes. Go ahead, Kyle.

Kyle Beilman: Sure. So Devin like as we mentioned in the notes, we expect to ramp marketing spend throughout the remainder of the year, as we come out of a seasonally softer period in Q1 with tax refunds. I’d say, the overwhelming majority of that spend will come in the form of top-of-funnel marketing spend across our key channels, where we have very effective tracking in place to manage the efficiency of that spend. We do expect that to be a growth catalyst for us, moving through the rest of the year. Our returns are very solid. We look at things on a kind of a gross-profit-based payback period. Our payback periods are sub six months, at this point. So, it is an opportunity for us to lean into more spend there to drive value creation through that investment.

That’s how, we think about marketing is through the lens of an investment, not an expense necessarily. And we kind of evaluate it, based on the return profiles of those investments. So — and we do expect like I said that to ramp things up here, moving into Q2 and through the remainder of the year, but certainly to do it in a disciplined way to drive returns.

Q – Devin Ryan: Got it. Okay. Thanks for the color. Appreciate it.

Operator: Thank you. This does conclude the question-and-answer session as well as today’s program. Everyone, have a great day. You may now disconnect.