Shares of Dave Inc (DAVE) unexpectedly plummeted 6.22% on Tuesday, confounding investors as the fintech company reported robust third-quarter results and raised its full-year guidance. The significant drop in stock price sharply contrasted with the positive financial data released earlier in the day, leaving market participants searching for explanations.
Dave's Q3 performance exceeded analyst expectations, with revenue surging to $150.8 million, up from $92.5 million in the same quarter last year. The company's adjusted net income showed remarkable improvement, reaching $4.45 per diluted share, compared to 3 cents a year earlier. Both figures handily beat analyst projections, with FactSet-polled analysts expecting earnings of $1.82 per share on revenue of $132.84 million.
Adding to the positive news, Dave raised its 2025 revenue guidance to between $544 million and $547 million, up from the previous range of $505 million to $515 million. The company also increased its 2025 Adjusted EBITDA guidance to $215-$218 million. Despite these upbeat projections and strong quarterly performance, investors appeared to be selling off the stock, possibly due to profit-taking, concerns about the sustainability of the company's growth rate, or other unknown factors. The stark contrast between the company's financial success and the stock's negative movement has left analysts and investors puzzled, highlighting the often unpredictable nature of market reactions to earnings reports.
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