BM Technologies reports Q1 EPS 6c, consensus (21c)

Reports Q1 revenue $16.2M, consensus $15.06M. CEO Luvleen Sidhu stated, “Q1 marked an important turning point in our company’s evolution. The hard work of 2023 has begun to pay off as we posted positive net income of $0.7M and Core EBITDA of $1.4M. Following the transfer of higher education deposits to First Carolina Bank in December 2023, Q1 2024 marked the first full quarter of benefits we were able to receive from Durbin-exempt interchange rates. The result of the deposit transfer, coupled with variable rate deposit pricing supported by a stabilized interest rate environment, contributed to our increased revenue and overall profitability. Interchange and card revenue increased 15% in Q1 2024 compared to the same period last year and servicing revenue increased 35% year-over-year. The revenue increase coupled with targeted reductions in expenses contributed to the $5.7M QoQ improvement in net income compared to last year. The first phase of our technology transformation efforts were completed in April of this year and will continue to position us to show benefits throughout 2024 as we aim to return to consistent profitability, grow our student business and provide best-in-class banking products to our customers.”