Greetings, and welcome to Dave's Second Quarter 2022 Earnings Call. As a reminder, this conference is being recorded. This afternoon Dave issued a press release announcing results for the second quarter ended June 30, 2022, which can be found at investors.dave.com. We would like to remind you that during this conference call, management will be making forward-looking statements, including statements regarding expectations related to financial guidance, outlook for the sector and company, and the expected investment, and growth initiatives. Please note these forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect the company's views only as of today and should not be relied upon until -- upon representative of views as of any subsequent date and Dave undertakes no obligation to revise or publicly release the result of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For a further discussion of the material risks and other important factors that could affect our financial results, please refer to the company's filings with the SEC, including its Form 10-K filed with the SEC on March 25, 2022 and subsequently filed quarterly reports on Form 10-Q. In addition, during today's call, the company will discuss non-GAAP financial measures, which they believe are useful as supplemental measures of Dave's performance. These non-GAAP measures should be considered in addition to, and not as a substitute for or in isolation from GAAP results. You will find additional disclosure regarding the non-GAAP financial measures discussed on today's call in Dave's press release issued this afternoon and its filings with the SEC each of which is posted on Dave's website. The webcast of this call will be available on the Investor Relations section of the company's website. It is now my pleasure to introduce you to your host, Mr. Jason Wilk, CEO and Chairman of the Board. Thank you. Mr. Wilk, you may begin.

Thank you, operator. Good afternoon and thank you for joining us for our second quarter earnings call. For today's call, I would like to begin by providing some highlights on the quarter, and then we'll recap progress on our growth strategies. After that, I will turn it to our CFO, Kyle Beilman, who will discuss our second quarter results in more detail as well as our outlook. Now on to some highlights from Q2. As anticipated, we saw a strong demand for our products and services leading to another record quarter. Dave is designed as the perfect banking solution for everyday Americans looking for extra financial help, as they navigate the current inflationary and post-stimulus environment. During the quarter, we reported non-GAAP total operating revenue of $47 million, representing an increase of 22.4% year-over-year, driven primarily by growth in our ExtraCash active, origination volume growth and higher average revenue per monthly transacting members. During the quarter, we added more than 560,000 net new members and ended the quarter with approximately seven million total members. In terms of engagement, we saw a record 1.54 million average monthly transacting members in the quarter, up 6% sequentially and achieved a new all-time high of 1.61 million monthly transacting members in June. Our transaction members completed an average of 4.5 transactions per month in Q2 also a record. With respect to variable margin, we came in at 39.4%. Our focus and resource allocation in the first half of the year has been oriented around top of funnel efficiency and the unification of our banking and ExtraCash business lines. We expect our long-term margin to be substantially higher than this, and Kyle will be sharing details and an overview of our initiatives to drive additional margin in Q3 and Q4 later in the call. Adjusted…

Thank you, Jason. In terms of topline performance, total non-GAAP operating revenue was $47 million in Q2, representing a 22.4% year-over-year growth compared to the same period last year. On a GAAP basis, service-based revenue was $43 million, an increase of 25% compared to the same period last year. The growth was primarily driven by an increase in ExtraCash actives, higher origination volume, and higher average revenue per origination. GAAP transaction-based revenue was $2.8 million in the quarter and remained relatively flat compared to the same period last year. As we've talked about at length, our focus over the past 12 months has been building a new product and regulatory framework around ExtraCash putting it into a bank-sponsored overdraft structure. We think that this is a critical step towards creating the product synergy in our portfolio and is foundational to the member journey that we're trying to create. In anticipation of this launch, driving new users to banking was deprioritized in H1. Now that it's here, we are excited to promote the debit card and ExtraCash experience to drive growth in transaction revenue moving forward. For the second quarter, non-GAAP variable profit was $18.5 million representing a 39.4% margin relative to our non-GAAP total operating revenue. From a margin perspective, this represents a decline of about 117 basis points relative to the first quarter of this year. The decline is primarily a function of increased fraud-related expenses and payment processing expenses, offset by a decrease in our reserve as a percentage of non-GAAP variable revenue. As a reminder, non-GAAP variable margin is a metric used internally as an indicator of the margin profile of our unit economics. To recap, the key drivers of this metric are ExtraCash and payment performance, as well as other direct cost drivers associated with our…

We will now begin the question-and-answer session. [Operator Instructions] And our first question will come from Sagiv Hartmayer with Jefferies. Please go ahead.

Hey guys. Thank you very much for all the detail and for taking my question. First off thinking big picture here, what are you seeing in terms of the competitive dynamics of the industry? We're hearing from traditional operators in the space there's some tightening just to protect the balance sheet and so forth. So how would you define that or describe it? And does that give Dave certain opportunities as well that we should be thinking about? Thanks.

Yes. We have heard about tightening for some institutional investors and some large peer-based consumer lenders. But we have not seen that. Given the capital efficiency of our model given the returns of our portfolio and the short-term duration and small capital outlays of the needs for our customer, we have just not seen anything there given the small balance sheet we need to service up a large population of customers.

Yeah. And just to add to that, we think we're in a really favorable macro environment. We see significant demand for the product as just consumer balance sheets have come under a bit of stress given just the high-cost nature of things like gas and groceries. And we're seeing things like keyword searches for advance as well as Dave search prevalence be at near five-year highs. So, just really strong sort of macro tailwinds for us that have just allowed us to continue to grow in this environment.

Okay. That's very helpful. Thank you. And as a follow-up question, you mentioned, I believe a profitability target for 2024. What are the key drivers for margin expansion to get there? And maybe if you could talk about incremental products that would play a part in that over the next cycle? And just kind of to tack on to that, how should we be thinking about marketing spend and potential revenue trajectory over the next couple of quarters? Thank you very much.

Yes. So, maybe just starting with the first part of the question. In terms of the path to profitability, it really is generating a significant amount of operating leverage out of the current cost structure. As I touched on in my remarks, we feel like we have a team in place that can support significant growth from here that will really allow us to sort of see the benefits of that operating leverage. On the operating -- or sorry, the variable margin side or on the gross margin side, we feel like we have several levers there. We continue to believe that there is a large opportunity to really improve the economics of our portfolio through things like optimized pricing and better risk management. We have a new settlement program that we're working on that we think will also be additive to margins. Additionally, I touched on some of the fraud leakage that we've seen in the ecosystem. That's relatively new to the company, over the past 12 months as we kind of introduced the banking product into our ecosystem. So, just added focus there, we think will shore some of that up. And kind of related to the banking product, the way that our pricing structures are very crafted with our partners, we're not able to -- we're sort of not at the level of scale with that product at the moment that allows us to generate real substantial gross margin there. So we're looking forward to driving that spend with Dave initiative to really drive more scale and volume on that program to really drive margins. Maybe Jason, if you want to touch on any of the product development stuff that we're working on that we think is going to be sort of additive to the revenue profile. But what I'd just say about that is, we feel like the fundamentals of our existing business and the -- just the core products and services that we have, we can sort of grow our way to profitability pretty organically as we just sort of bring additional users into the ecosystem and just drive sort of better ARPU and LTV with the product enhancements of the core services that we're really focused on over the next six months.

Yes, that's right. Just to add to that, from a product perspective, what we're working on really is that cross attach from ExtraCash, a Dave Banking, now that we have that product synergy here really trying to double down on people spending their ExtraCash with our Dave card, which we know is an indicator of long-term -- longer-term revenue per user and ultimately direct to positive attach is something we want to do. The longer someone sticks around with us through banking, the bigger margin opportunity we have with them over time to deliver more lifetime value. The other piece we're obviously working on is, credit builder, which is a typically very expensive proposition for people to rebuild their credit. And we've had such a high amount of interest in Dave's ability to roll it out to our consumers. So, more to come on that in future quarters. And additionally, we have some interesting things, we'll be revealing about future improvements to Side Hustle that we're excited about, which we think will be more ways to drive more bank across that as well and again, make Dave more of a one-stop shop. Lastly, I would just say, we're doing a lot of interesting things around just underwriting improvements to get customers approved for the exact amount they're here and they're looking for. And we think there are ways to do that by further incentivizing bank-related activity.

That’s very helpful. Thank you again.

Thanks for question.

[Operator Instructions] As there are no further questions, this concludes our question-and-answer session, which also concludes today's conference. Thank you for attending today's presentation. You may now disconnect.