Under normal circumstances, a 97% plunge in stock price would be the death knell for any company. But then, mobile banking app fintech Dave is hardly a normal company. Indeed, despite its market cap dropping from $5.7 billion earlier this year to only $100 million in November, Chief Executive Officer Jason Wilk is confident the company will not only make it through this downturn, but it will reach profitability within a year.
“We’re trying to dispel the myth of, ‘Hey, this company does not have enough money to make it through,” said Wilk in an interview. “We think that couldn’t be further from the truth. […] We expect one more year of burn and we should be able to become run-rate profitable probably at the end of next year.”
Indeed, there are many promising signs that Dave has already begun to reverse its remarkable turn in fortunes. With a surging user base despite cost-cutting measures imposed on customer acquisition strategies, it is expected that Dave’s $225 million in cash reserves and short-term holdings will keep the company afloat for the foreseeable future.