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Dave stock drops after earnings despite rising revenue and margins

Dave reported $170.8 million in revenue in its latest quarter, with adjusted EBITDA rising 48% to $75.5 million.

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MarketBeat Ratings reports that Dave’s stock fell after its August earnings, even as the company posted continued growth in revenue and profitability. The outlet notes that Dave’s shares are up about 45% for the year, but investor sentiment around the most recent results has been split.

According to MarketBeat Ratings, Dave reported revenue of $170.8 million in the latest quarter, compared with $131.7 million in the year-ago period, with revenue growth essentially in line with analyst expectations. The outlet says adjusted EBITDA rose 48% to $75.5 million, while adjusted net income increased to $56.4 million.

MarketBeat Ratings adds that analysts are turning more bullish on the fundamentals, but legal challenges tied to the company’s fee structure remain unresolved. The outlet also points to a non-GAAP gross profit margin of 72% in the quarter.

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