Q2 2024 Bm Technologies Inc Earnings Call Transcript
Key Points
- BM Technologies Inc (BMTX) reported a 10% increase in operating revenues for the first half of 2024 compared to the same period in 2023.
- Interchange and card revenue increased by 57% year-over-year, driven by the switch to a Durbin exempt bank.
- The company successfully launched a new cashback rewards engine, which has already shown positive engagement metrics.
- BM Technologies Inc (BMTX) signed 15 universities for its new identity verification (IDV) product, with a strong pipeline for future sales.
- The company retained over 99% of its higher-education and institutional clients, demonstrating strong customer loyalty.
- Core EBITDA for the second quarter was a loss of approximately $880,000, showing only a slight improvement from the previous year's loss.
- Servicing fees decreased to $6.9 million in Q2 2024 from $7.7 million in Q2 2023, due to lower average service deposits in the BaaS business.
- Average service deposits in the BaaS vertical decreased significantly, down 47% compared to the second quarter of 2023.
- The BaaS business remains unprofitable in the current regulatory and interest rate environment, with potential wind-down expected to increase core EBITDA by at least $1 million per quarter.
- Total operating expenses included $1.6 million of one-time costs related to the implementation of the next-gen platform, impacting overall profitability.
Good morning, everyone, and welcome to the BM Technologies second quarter 2024 earnings call. Please note that this event is being recorded. (Operator Instructions) I'd like to turn the conference call over to Brian Prenoveau, Investor Relations for BM Technologies. Please go ahead.
Thank you, operator, and good morning, everyone. Thank you for joining the BM Technologies' second quarter earnings call. Before we begin, we would like to remind you that some of the statements we make today may be considered forward looking. These forward looking statements are subject to a number of risks and uncertainties that may cause actual performance results to differ materially from what is currently anticipated.
Please note that these forward-looking statements speak only as of the date of this presentation and we undertake no obligation to update these forward-looking statements in light of new information or future events, except to the extent required by applicable securities laws. Please refer to our
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