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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
August 14, 2024
BM TECHNOLOGIES, INC.
(Exact name of registrant as specified in its charter)
Delaware |
|
001-38633 |
|
82-3410369 |
(State or other jurisdiction
of incorporation) |
|
(Commission File Number) |
|
(IRS Employer
Identification No.) |
201 King of Prussia Road, Suite 650
Wayne, PA 19087
(Address of principal executive offices, including
zip code)
Registrant’s telephone number, including
area code: (877) 327-9515
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Common Stock |
|
BMTX |
|
NYSE American LLC |
Warrants to purchase Common Stock |
|
BMTX.W |
|
NYSE American LLC |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial
Condition.
On August 14, 2024, BM Technologies,
Inc. (the “Company”) issued a press release announcing its results of operations and financial condition for the second quarter
ended June 30, 2024. The press release is furnished herewith as Exhibit 99.1 and incorporated by reference herein.
The foregoing (including the
information presented in Exhibit 99.1) is being furnished pursuant to Item 2.02 and will not be deemed to be filed for purposes of Section
18 of the Exchange Act, or otherwise be subject to the liabilities of that section, nor will it be deemed to be incorporated by reference
in any filing under the Securities Act or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
|
BM Technologies, Inc. |
|
|
Dated: August 15, 2024 |
By: |
/s/ Luvleen Sidhu |
|
|
Luvleen Sidhu |
|
|
Chief Executive Officer |
2
Exhibit 99.1
BM
Technologies, Inc.
BM Technologies Reports Second Quarter &
First Half 2024 Results
First Half 2024 Revenue of $28.7 Million, Up
10% YoY
Q2 2024 Interchange and Card Revenue Increased
57% YoY
Growth Initiatives Launched with Cash Back Rewards
Engine & 15 Identity Verification (IDV) Product Sales YTD
Radnor, PA, August 14, 2024 —
BM Technologies, Inc. (NYSE American: BMTX) (“BM Technologies”, “BMTX”, “we”, or the “Company”),
one of the largest digital banking platforms and Banking-as-a-Service (BaaS) providers in the country, today reported results for the
three and six months ended June 30, 2024.
Luvleen Sidhu, BMTX’s Chair, CEO, and Founder,
stated, “This quarter we have made strong progress towards our strategy of digital transformation and setting the stage for growth
in our higher education business going forward. Additionally, the year-over-year increase in interchange and card revenue is validating
our strategy of switching to a Durbin exempt bank. In the second quarter, we completed our technology platform transformation, a cutting-edge
microservice architecture platform that has unlocked our ability to bring additional products and services to market at an industry leading
pace. This significant investment enables us to offer our student customer base targeted products and services in a compliant manner.
Also in the second quarter, we saw a strong response
to our IDV product, an innovative Software-as-a-Service (SaaS) product that assists universities in mitigating fraud vulnerabilities during
the student enrollment process. IDV leverages robust AI and machine learning tools, empowering universities to maintain their risk level
preferences with data driven insights and significantly enhances their fraud detection capabilities. We believe adding this product to
our technology stack will attract more college and university partners, creating a new source of revenue for us and reducing fraud for
our university partners and for the Company as well.”
Second Quarter 2024 Financial Highlights
| ● | Operating revenues for the three and six months ended June 30,
2024 totaled $12.5 million and $28.7 million, respectively, compared to $12.6 million and $26.0 million for the three and six months
ended June 30, 2023, respectively. |
| ● | Q2 2024 net loss totaled $(4.8) million, or $(0.41) per diluted
share. Net loss for the six months ended June 30, 2024 totaled $(4.1) million, or $(0.35) per diluted share. This includes one-time
Q2 2024 costs of $1.6 million ($0.13 per diluted share) related to the implementation of our NextGen technology. |
| ● | Q2 2024 Core EBITDA Loss1
totaled $(0.9) million. Core EBITDA1 for the six months ended June 30, 2024 totaled $0.5 million |
| ● | Liquidity remained strong at June 30, 2024 with $12.5
million of cash (over $1 per diluted share outstanding), $0.4 million of working capital, and no debt. |
| ● | There is a considerable amount of seasonality in our higher
education business, with the second quarter generally being the weakest quarter of the year. |
1 | Metrics such as Core EBITDA (Loss), Core Earnings (Loss),
and Core Operating Expense are non-GAAP measures which exclude certain items from or add certain items to the comparable GAAP measure;
a reconciliation appears on pages 8 and 9 of this release. |
First Half 2024 Operating Highlights
| ● | Average serviced deposits totaled $685 million and ending serviced deposits totaled $642 million at June 30,
2024. |
| ● | Debit card spend totaled $631 million in Q2 2024 and $1.4 billion in the six months ended June 30,
2024. |
| ● | There were approximately 60 thousand new account sign-ups in the second quarter 2024 and approximately
160 thousand new account sign-ups in the first six months of 2024. |
| ● | Higher Education Organic Deposits (deposits that are not part of a school disbursement and are indicative
of primary banking behavior) for the three and six months ended June 30, 2024 totaled $366 million and $814 million, respectively. |
Financial Summary Table
| |
Q2 | | |
Q1 | | |
Q4 | | |
Q3 | | |
Q2 | | |
Current Quarter Over Prior Year Quarter Change | |
(dollars in thousands) | |
2024 | | |
2024 | | |
2023 | | |
2023 | | |
2023 | | |
$ | | |
% | |
Interchange and card revenue | |
| 2,284 | | |
| 3,415 | | |
| 2,731 | | |
| 2,292 | | |
| 1,458 | | |
| 826 | | |
| 57 | % |
Servicing fees | |
| 6,874 | | |
| 8,966 | | |
| 8,470 | | |
| 8,658 | | |
| 7,700 | | |
| (826 | ) | |
| (11 | )% |
Account fees | |
| 1,805 | | |
| 2,095 | | |
| 2,118 | | |
| 1,931 | | |
| 1,910 | | |
| (105 | ) | |
| (5 | )% |
University fees | |
| 1,469 | | |
| 1,612 | | |
| 1,410 | | |
| 1,412 | | |
| 1,373 | | |
| 96 | | |
| 7 | % |
Other revenue | |
| 109 | | |
| 93 | | |
| 130 | | |
| 88 | | |
| 200 | | |
| (91 | ) | |
| (46 | )% |
Total GAAP Operating Revenue | |
$ | 12,541 | | |
$ | 16,181 | | |
$ | 14,859 | | |
$ | 14,381 | | |
$ | 12,641 | | |
$ | (100 | ) | |
| (1 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
GAAP Operating Expense | |
$ | 17,210 | | |
$ | 15,526 | | |
$ | 19,038 | | |
$ | 18,766 | | |
$ | 17,682 | | |
$ | (472 | ) | |
| (3 | )% |
Less: restructuring, merger and acquisition related expenses | |
| (71 | ) | |
| (79 | ) | |
| 56 | | |
| — | | |
| (274 | ) | |
| 203 | | |
| (74 | )% |
Less: impairment of developed software | |
| — | | |
| (50 | ) | |
| (620 | ) | |
| — | | |
| — | | |
| — | | |
| —% | |
Less: share-based compensation expense | |
| (486 | ) | |
| 660 | | |
| (365 | ) | |
| (176 | ) | |
| (723 | ) | |
| 237 | | |
| (33 | )% |
Less: NextGen implementation costs | |
| (1,560 | ) | |
| — | | |
| — | | |
| — | | |
| — | | |
| (1,560 | ) | |
| NM | |
Less: depreciation and amortization | |
| (1,671 | ) | |
| (1,226 | ) | |
| (2,488 | ) | |
| (3,420 | ) | |
| (3,138 | ) | |
| 1,467 | | |
| (47 | )% |
Total Core Operating Expense | |
$ | 13,422 | | |
$ | 14,831 | | |
$ | 15,621 | | |
$ | 15,170 | | |
$ | 13,547 | | |
$ | (125 | ) | |
| (1 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Core EBITDA (Loss) | |
$ | (881 | ) | |
$ | 1,350 | | |
$ | (762 | ) | |
$ | (789 | ) | |
$ | (906 | ) | |
$ | 25 | | |
| 3 | % |
Core EBITDA (Loss) Margin | |
| (7 | )% | |
| 8 | % | |
| (5 | )% | |
| (5 | )% | |
| (7 | )% | |
| | | |
| | |
NM - Not meaningful
Business Update
Higher Education Vertical
During the second quarter ended June 30,
2024, the Company retained 99.3% of its Higher Education institutional clients. The Company signed three new colleges and universities
in the first half of 2024, providing approximately 16,000 additional students access to BankMobile Disbursements and the BankMobile Vibe
checking account.
During the second quarter of 2024, the Company
disbursed over $1.9 billion in refunds to students. Of the $1.9 billion, approximately 12%, or $234 million, was disbursed into BankMobile
Vibe checking accounts. The second quarter is typically the slowest quarter for the year as the business is cyclical.
Higher Education average serviced deposits and
ending serviced deposits totaled $425 million and $392 million, respectively, for the three month period ended June 30,
2024. Debit card point of sale spend decreased by 4% during Q2 2024 as compared to Q2 2023. Deposits and spend per 90-day active account
during the second quarter of 2024 were $1,665 and $1,853, respectively.
In the first half of July, the Company launched
a rewards engine offered to its Vibe customers in which customers can earn cash back on everyday debit card purchases. This feature is
the first of many that are expected to increase transaction and spend volume that drives interchange revenues. With the NextGen technology,
we are very excited in terms of what we can offer our students over the following quarters, increasing the value proposition for the Vibe
account, as well as the potential for higher revenue from increased spend and deposits.
In the first quarter, we launched IDV, a SaaS
revenue product that assists universities in mitigating fraud vulnerabilities during the student enrollment process. YTD we have signed
on 15 universities for this product and have a strong pipeline and anticipate solid sales through the remainder of the year. As part of
our improved technology stack and service offering, IDV increases stickiness and lifetime value of our existing higher education relationships
and opens the door for new relationships as well.
BaaS Vertical
BaaS average serviced deposits and ending serviced
deposits totaled $261 million and $250 million, respectively, at June 30, 2024 and debit card point of sale spend during
Q2 2024 decreased 6% from Q2 2023. Average deposits declined 47% from Q2 2023.
Our BaaS relationship expires in February 2025.
In the current regulatory and interest rate environment, this business is unprofitable for us. In the event of a wind-down, we expect
our pro-forma core EBITDA to increase at least $1 million per quarter on a run-rate basis.
Technology Initiatives and Outlook
Jamie Donahue, President and Chief Technology
Officer stated, “Our technology transformation is driven by our vision to modernize our platform architecture and offer innovative
products and services to our customers. We are executing on that vision and delivering exciting new features for our clients. We have
added a rewards engine to allow our students to take advantage of their everyday spending. Our next product launch is targeted before
the end of the year and will provide our students with financial, insurance, and wellness benefits. Additionally, we will be enhancing
our direct deposit experience and external account linking for funding; all these changes are expected to further make the BankMobile
Vibe account a feature-rich, lifelong checking and savings account that will grow with our student population.”
During Q2 of 2024, the Company made significant
investment in the launch of its NextGen technology platform which for the first time allows the Company to market targeted products and
services to its Vibe customer base. The implementation of this new architecture resulted in higher expenses in Q2 related to technology
and professional services costs from having to run two separate platforms for a period of time.
Growth Initiatives and Outlook
The Company anticipates revenue growth in 2024
driven by investments in the Higher Education vertical and the full year effect of Durbin-exempt interchange rates on the majority of
serviced deposit account holder’s debit card spend. The Company also expects a positive Core EBITDA1 in 2024 based on these
higher revenues and stricter cost controls implemented as part of the Company’s PEP.
In closing, our Higher Education vertical is a
prized asset and we have shown our commitment to this business by making necessary investments, including the implementation of NextGen.
Earnings Webcast
The Company will host a conference call and webcast
on Thursday, August 15, 2024, at 9:00 am ET to discuss its second quarter 2024 results. The webcast can be accessed via the Company’s
investor relations site (ir.bmtxinc.com) by clicking on “Events & Presentations”, then “Events Calendar,”
and following the link under “Upcoming Events;” or directly at 2Q24 Webcast Link. A replay will be available following the
call.
Contact Information
Investors:
Ajay Asija, Chief Financial Officer
BM Technologies, Inc.
AAsija@bmtx.com
Media Inquiries:
Brigit Hennaman
Rubenstein Public Relations, Inc.
bhennaman@rubensteinpr.com
About BM Technologies, Inc.
BM Technologies, Inc. (NYSE American: BMTX) -
formerly known as BankMobile - is among the largest digital banking platforms and Banking-as-a-Service (BaaS) providers in the country,
providing access to checking and savings accounts and financial wellness. It is focused on technology, innovation, easy-to-use products,
and education with the mission to financially empower millions of Americans by providing a more affordable, transparent, and consumer-friendly
banking experience. BM Technologies, Inc. (BMTX) is a technology company and is not a bank, which means it provides banking services through
its partner banks. More information can be found at www.bmtx.com.
Forward Looking Statements
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainty. In general,
forward-looking statements may be identified through the use of words such as “anticipate,” “believe”, “estimate,”
“expect,” “intend,” “plan,” “will,” “should,” “plan,” “continue,”
“potential” and “project” or the negative of these terms or other similar words and expressions, and in this press
release, include the expected margin improvement on Durbin-exempt interchange fees, achievement of the PEP target as a result of the expected
cost savings from the PEP, and the expected growth outlook and results from operations during 2024. Forward-looking statements are not
guarantees of future results and conditions, but rather are subject to various risks and uncertainties. Such statements are based on Management’s
current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from
those described in the forward-looking statements. Investors are cautioned that there can be no assurance actual results or business conditions
will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors.
These risks and uncertainties include, but are
not limited to, general economic conditions, consumer adoption, technology and competition, continuing interest rate volatility, the ability
to enter into new partnerships, regulatory risks, risks associated with the higher education industry and financing, and the operations
and performance of the Company’s partners, including bank partners, higher education partners, and BaaS partners. Further information
regarding additional factors which could affect the forward-looking statements contained in this press release can be found in the cautionary
language included under the headings “CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS” and “Risk Factors”
in the Company’s Annual Report on Form 10-K and other documents filed with the Securities and Exchange Commission (“SEC”).
The Company’s SEC filings are available publicly on the SEC website at www.sec.gov.
Many of these factors are beyond the Company’s
ability to control or predict. If one or more events related to these or other risks or uncertainties materialize, or if the underlying
assumptions prove to be incorrect, actual results may differ materially from the forward-looking statements. Accordingly, shareholders
and investors should not place undue reliance on any such forward-looking statements. Any forward-looking statement speaks only as of
the date of this communication, and BMTX undertakes no obligation to update or revise any forward-looking statements, whether as a result
of new information, future events, or otherwise, unless required by law. BMTX qualifies all forward-looking statements by these cautionary
statements.
UNAUDITED FINANCIAL STATEMENTS
BM TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)- UNAUDITED
(amounts in thousands, except per share data)
| |
Q2 | | |
Q1 | | |
Q4 | | |
Q3 | | |
Q2 | |
| |
2024 | | |
2024 | | |
2023 | | |
2023 | | |
2023 | |
Operating revenues: | |
| | |
| | |
| | |
| | |
| |
Interchange and card revenue | |
$ | 2,284 | | |
$ | 3,415 | | |
$ | 2,731 | | |
$ | 2,292 | | |
$ | 1,458 | |
Servicing fees | |
| 6,874 | | |
| 8,470 | | |
| 8,470 | | |
| 8,658 | | |
| 7,700 | |
Account fees | |
| 1,805 | | |
| 2,118 | | |
| 2,118 | | |
| 1,931 | | |
| 1,910 | |
University fees | |
| 1,469 | | |
| 1,410 | | |
| 1,410 | | |
| 1,412 | | |
| 1,373 | |
Other revenue | |
| 109 | | |
| 130 | | |
| 130 | | |
| 88 | | |
| 200 | |
Total operating revenues | |
| 12,541 | | |
| 16,181 | | |
| 14,859 | | |
| 14,381 | | |
| 12,641 | |
Operating expenses: | |
| | | |
| | | |
| | | |
| | | |
| | |
Technology, communication, and processing | |
| 4,297 | | |
| 4,711 | | |
| 6,826 | | |
| 7,826 | | |
| 6,018 | |
Salaries and employee benefits | |
| 5,660 | | |
| 5,152 | | |
| 5,152 | | |
| 4,773 | | |
| 6,139 | |
Professional services | |
| 2,634 | | |
| 3,331 | | |
| 3,331 | | |
| 2,948 | | |
| 2,338 | |
Provision for operating losses | |
| 2,096 | | |
| 2,683 | | |
| 2,683 | | |
| 2,138 | | |
| 1,813 | |
Occupancy | |
| 10 | | |
| 2 | | |
| 2 | | |
| 9 | | |
| 10 | |
Customer related supplies | |
| 231 | | |
| 234 | | |
| 234 | | |
| 227 | | |
| 222 | |
Advertising and promotion | |
| 75 | | |
| 108 | | |
| 108 | | |
| 128 | | |
| 125 | |
Restructuring, merger and acquisition related expenses | |
| 71 | | |
| (56 | ) | |
| (56 | ) | |
| — | | |
| 274 | |
NextGen implementation costs | |
| 1,560 | | |
| — | | |
| — | | |
| — | | |
| — | |
Other expense | |
| 576 | | |
| 758 | | |
| 758 | | |
| 717 | | |
| 743 | |
Total operating expenses | |
| 17,210 | | |
| 15,526 | | |
| 19,038 | | |
| 18,766 | | |
| 17,682 | |
Income (loss) from operations | |
| (4,669 | ) | |
| 655 | | |
| (4,179 | ) | |
| (4,385 | ) | |
| (5,041 | ) |
Non-operating income and expense: | |
| | | |
| | | |
| | | |
| | | |
| | |
Gain on fair value of private warrant liability | |
| (162 | ) | |
| 216 | | |
| 216 | | |
| 433 | | |
| 595 | |
Income (loss) before income tax | |
| (4,831 | ) | |
| 763 | | |
| (3,963 | ) | |
| (3,952 | ) | |
| (4,446 | ) |
Income tax expense (benefit) | |
| — | | |
| — | | |
| — | | |
| — | | |
| 10 | |
Net income (loss) | |
$ | (4,831 | ) | |
$ | 748 | | |
$ | (3,963 | ) | |
$ | (3,952 | ) | |
$ | (4,456 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Weighted average number of shares outstanding - basic | |
| 11,785 | | |
| 11,728 | | |
| 11,574 | | |
| 11,570 | | |
| 11,563 | |
Weighted average number of shares outstanding - diluted | |
| 11,785 | | |
| 11,746 | | |
| 11,574 | | |
| 11,570 | | |
| 11,563 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Basic earnings (loss) per common share | |
$ | (0.41 | ) | |
$ | 0.06 | | |
$ | (0.34 | ) | |
$ | (0.34 | ) | |
$ | (0.39 | ) |
Diluted earnings (loss) per common share | |
$ | (0.41 | ) | |
$ | 0.06 | | |
$ | (0.34 | ) | |
$ | (0.34 | ) | |
$ | (0.39 | ) |
BM TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(amounts in thousands)
| |
June 30, | | |
March 31, | | |
December 31, | | |
September 30, | | |
June 30, | |
| |
2024 | | |
2024 | | |
2023 | | |
2023 | | |
2023 | |
ASSETS | |
| | |
| | |
| | |
| | |
| |
Cash and cash equivalents | |
$ | 12,457 | | |
$ | 14,288 | | |
$ | 14,288 | | |
$ | 11,524 | | |
$ | 11,524 | |
Accounts receivable, net allowance for doubtful accounts | |
| 6,252 | | |
| 9,128 | | |
| 9,128 | | |
| 8,511 | | |
| 7,083 | |
Prepaid expenses and other assets | |
| 3,382 | | |
| 5,148 | | |
| 5,148 | | |
| 10,742 | | |
| 10,742 | |
Total current assets | |
| 22,091 | | |
| 28,564 | | |
| 28,564 | | |
| 23,401 | | |
| 29,349 | |
Premises and equipment, net | |
| 448 | | |
| 535 | | |
| 535 | | |
| 531 | | |
| 531 | |
Developed software, net | |
| 16,247 | | |
| 16,173 | | |
| 16,173 | | |
| 19,759 | | |
| 19,759 | |
Goodwill | |
| 5,259 | | |
| 5,259 | | |
| 5,259 | | |
| 5,259 | | |
| 5,259 | |
Other intangibles, net | |
| 3,949 | | |
| 4,109 | | |
| 4,109 | | |
| 4,269 | | |
| 4,269 | |
Other assets | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | |
Total assets | |
$ | 47,994 | | |
$ | 50,977 | | |
$ | 54,640 | | |
$ | 51,051 | | |
$ | 59,167 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |
| | | |
| | | |
| | | |
| | | |
| | |
Liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Accounts payable and accrued liabilities | |
$ | 10,382 | | |
$ | 10,577 | | |
$ | 10,577 | | |
$ | 12,513 | | |
$ | 11,624 | |
Deferred revenue, current | |
| 11,271 | | |
| 12,322 | | |
| 12,322 | | |
| 3,440 | | |
| 8,209 | |
Total current liabilities | |
| 21,653 | | |
| 22,899 | | |
| 22,899 | | |
| 15,953 | | |
| 19,833 | |
Non-current liabilities: | |
| | | |
| | | |
| | | |
| | | |
| | |
Deferred revenue, non-current | |
| 3 | | |
| 127 | | |
| 127 | | |
| — | | |
| — | |
Liability for private warrants | |
| 216 | | |
| 162 | | |
| 162 | | |
| 378 | | |
| 811 | |
Other non-current liabilities | |
| — | | |
| 480 | | |
| 480 | | |
| 480 | | |
| 480 | |
Total liabilities | |
$ | 21,872 | | |
$ | 23,668 | | |
$ | 23,668 | | |
$ | 16,811 | | |
$ | 21,124 | |
Commitments and contingencies | |
| | | |
| | | |
| | | |
| | | |
| | |
Shareholders’ equity: | |
| | | |
| | | |
| | | |
| | | |
| | |
Preferred stock | |
| — | | |
| — | | |
$ | — | | |
$ | — | | |
$ | — | |
Common stock | |
| 1 | | |
| 1 | | |
| 1 | | |
| 1 | | |
| 1 | |
Additional paid-in capital | |
| 71,020 | | |
| 71,787 | | |
| 71,787 | | |
| 71,092 | | |
| 70,943 | |
Accumulated deficit | |
| (44,899 | ) | |
| (40,816 | ) | |
| (40,816 | ) | |
| (36,853 | ) | |
| (32,901 | ) |
Total shareholders’ equity | |
$ | 26,122 | | |
$ | 30,884 | | |
$ | 30,972 | | |
$ | 34,240 | | |
$ | 38,043 | |
Total liabilities and shareholders’ equity | |
$ | 47,994 | | |
$ | 50,977 | | |
$ | 54,640 | | |
$ | 51,051 | | |
$ | 59,167 | |
NON-GAAP FINANCIAL RECONCILIATIONS - UNAUDITED
Certain financial measures used in this Press
Release are not defined by U.S. generally accepted accounting principles (“GAAP”), and as such, are considered non-GAAP financial
measures. Core expenses and EBITDA exclude the effects of items the Company does not consider indicative of its core operating performance,
including restructuring, merger and acquisition related expenses, fair value mark to market income or expense associated with certain
warrants, impairment of developed software, and non-cash share-based compensation. Management believes the use of core revenues, expenses,
and EBITDA are appropriate to provide investors with an additional tool to evaluate the Company’s ongoing business performance. Investors
are cautioned that these non-GAAP financial measures may not be defined in the same manner by other companies and, as a result, may not
be comparable to other similarly titled measures used by other companies. Also, these non-GAAP financial measures should not be construed
as alternatives, or superior, to other measures determined in accordance with GAAP.
Reconciliation - GAAP Operating Expenses to
Core Operating Expenses (in thousands)
| |
Q2 | | |
Q1 | | |
Q4 | | |
Q3 | | |
Q2 | |
| |
2024 | | |
2024 | | |
2023 | | |
2023 | | |
2023 | |
GAAP total expenses | |
$ | 17,210 | | |
$ | 15,526 | | |
$ | 19,038 | | |
$ | 18,766 | | |
$ | 17,682 | |
Less: restructuring, merger and acquisition related expenses | |
| (71 | ) | |
| (79 | ) | |
| 56 | | |
| — | | |
| (274 | ) |
Impairment of developed software | |
| — | | |
| (50 | ) | |
| (620 | ) | |
| — | | |
| — | |
Less: NextGen implementation costs | |
| (1,560 | ) | |
| — | | |
| — | | |
| — | | |
| — | |
Less: share-based compensation expense | |
| (486 | ) | |
| 660 | | |
| (365 | ) | |
| (176 | ) | |
| (723 | ) |
Core Operating Expenses inc Dep and Amort | |
$ | 15,093 | | |
$ | 16,057 | | |
$ | 18,109 | | |
$ | 18,590 | | |
$ | 16,685 | |
Less: depreciation and amortization | |
| 1,671 | | |
| 1,226 | | |
| 2,488 | | |
| 3,420 | | |
| 3,138 | |
Core Operating Expenses ex. Dep and Amort | |
$ | 13,422 | | |
$ | 14,831 | | |
$ | 15,621 | | |
$ | 15,170 | | |
$ | 13,547 | |
Reconciliation - GAAP Net Loss to Core Net
(Loss) Income (in thousands, except per share data)
| |
Q2 | | |
Q1 | | |
Q4 | | |
Q3 | | |
Q2 | |
| |
2024 | | |
2024 | | |
2023 | | |
2023 | | |
2023 | |
GAAP net income (loss) | |
$ | (4,831 | ) | |
$ | 748 | | |
$ | (3,963 | ) | |
$ | (3,952 | ) | |
$ | (4,456 | ) |
Add: loss/(gain) on fair value of private warrant liability | |
| 162 | | |
| (108 | ) | |
| (216 | ) | |
| (433 | ) | |
| (595 | ) |
Add: restructuring, merger and acquisition related expenses | |
| 71 | | |
| 79 | | |
| (56 | ) | |
| — | | |
| 274 | |
Add: impairment of developed software | |
| — | | |
| 50 | | |
| 620 | | |
| — | | |
| — | |
Add: share-based compensation expense | |
| 486 | | |
| (660 | ) | |
| 365 | | |
| 176 | | |
| 723 | |
Add: NextGen implementation costs | |
| 1,560 | | |
| — | | |
| — | | |
| — | | |
| — | |
Less: tax (@ actual ETR) on taxable non-core items | |
| (1 | ) | |
| — | | |
| — | | |
| — | | |
| — | |
Core net (loss)/income | |
$ | (2,553 | ) | |
$ | 109 | | |
$ | (3,250 | ) | |
$ | (4,209 | ) | |
$ | (4,053 | ) |
Core diluted shares | |
| 11,785 | | |
| 11,746 | | |
| 11,574 | | |
| 11,570 | | |
| 11,563 | |
Core diluted (loss) earnings per common share | |
$ | (0.22 | ) | |
$ | 0.01 | | |
$ | (0.28 | ) | |
$ | (0.36 | ) | |
$ | (0.35 | ) |
GAAP diluted (loss) earnings per common share | |
$ | (0.41 | ) | |
$ | 0.06 | | |
$ | (0.34 | ) | |
$ | (0.34 | ) | |
$ | (0.39 | ) |
Reconciliation - GAAP Net Loss to Core EBITDA (Loss) (in thousands)
| |
Q2 | | |
Q1 | | |
Q4 | | |
Q3 | | |
Q2 | |
| |
2024 | | |
2024 | | |
2023 | | |
2023 | | |
2023 | |
GAAP net income (loss) | |
$ | (4,831 | ) | |
$ | 748 | | |
$ | (3,963 | ) | |
$ | (3,952 | ) | |
$ | (4,456 | ) |
Add: loss/(gain) on fair value of private warrant liability | |
| 162 | | |
| (108 | ) | |
| (216 | ) | |
| (433 | ) | |
| (595 | ) |
Add: income tax expense | |
| — | | |
| 15 | | |
| — | | |
| — | | |
| 10 | |
Add: restructuring, merger and acquisition related expenses | |
| 71 | | |
| 79 | | |
| (56 | ) | |
| — | | |
| 274 | |
Add: impairment of developed software | |
| — | | |
| 50 | | |
| 620 | | |
| — | | |
| — | |
Add: share-based compensation expense | |
| 486 | | |
| (660 | ) | |
| 365 | | |
| 176 | | |
| 723 | |
Add: NextGen implementation costs | |
| 1,560 | | |
| — | | |
| — | | |
| — | | |
| — | |
Add: depreciation and amortization | |
| 1,671 | | |
| 1,226 | | |
| 2,488 | | |
| 3,420 | | |
| 3,138 | |
Core (Loss) EBITDA | |
$ | (881 | ) | |
$ | 1,350 | | |
$ | (762 | ) | |
$ | (789 | ) | |
$ | (906 | ) |
Key Performance Metrics
| |
Q2 | | |
Q1 | | |
Q4 | | |
Q3 | | |
Q2 | | |
Year Over Year Change | |
| |
2024 | | |
2024 | | |
2023 | | |
2023 | | |
2023 | | |
$ | | |
% | |
Debit card POS spend ($ millions) | |
| | |
| | |
| | |
| | |
| | |
| | |
| |
Higher education | |
$ | 472 | | |
$ | 636 | | |
$ | 545 | | |
$ | 567 | | |
$ | 490 | | |
$ | (18 | ) | |
| (4 | )% |
BaaS | |
| 158 | | |
| 172 | | |
| 168 | | |
| 171 | | |
| 168 | | |
| (10 | ) | |
| (6 | )% |
Total POS spend | |
$ | 631 | | |
$ | 809 | | |
$ | 714 | | |
$ | 737 | | |
$ | 658 | | |
$ | (28 | ) | |
| (4 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Serviced deposits ($ millions) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Higher education | |
$ | 392 | | |
$ | 535 | | |
$ | 361 | | |
$ | 636 | | |
$ | 408 | | |
$ | (16 | ) | |
| (4 | )% |
BaaS | |
| 250 | | |
| 284 | | |
| 313 | | |
| 357 | | |
| 439 | | |
| (189 | ) | |
| (43 | )% |
Total Ending Deposits | |
$ | 642 | | |
$ | 820 | | |
$ | 674 | | |
$ | 994 | | |
$ | 848 | | |
$ | (205 | ) | |
| (24 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Higher education | |
$ | 425 | | |
$ | 537 | | |
$ | 479 | | |
$ | 466 | | |
$ | 429 | | |
$ | (4 | ) | |
| (1 | )% |
BaaS | |
| 261 | | |
| 290 | | |
| 326 | | |
| 387 | | |
| 494 | | |
| (233 | ) | |
| (47 | )% |
Total Average Deposits | |
$ | 685 | | |
$ | 828 | | |
$ | 805 | | |
$ | 853 | | |
$ | 922 | | |
$ | (237 | ) | |
| (26 | )% |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Higher Education Metrics | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Higher education retention | |
| 99 | % | |
| 99 | % | |
| 99 | % | |
| 99 | % | |
| 98 | % | |
| | | |
| | |
FAR(1) disbursement amount ($B) | |
$ | 1.9 | | |
$ | 4.3 | | |
$ | 2.0 | | |
$ | 3.6 | | |
$ | 1.8 | | |
$ | 0.1 | | |
| 6 | % |
Organic deposits(2) ($M) | |
$ | 366 | | |
$ | 449 | | |
$ | 390 | | |
$ | 411 | | |
$ | 400 | | |
$ | (34 | ) | |
| (9 | )% |
(1) | FAR disbursements are Financial Aid Refund disbursements
from a higher education institution. |
(2) | Organic Deposits are all deposits excluding any funds
disbursed directly from the school. |
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BM Technologies (AMEX:BMTX)
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