BM Technologies reports Q2 EPS (41c) with items, consensus (17c)

Q2 EPS includes one-time costs of $1.6M or 13c per diluted share related to the implementation of NextGen technology. Reports Q2 revenue $12.5M, consensus $13.99M. CEO Luvleen Sidhu 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 Q2, 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. Also in Q2, we saw a strong response to our IDV product, an innovative Software-as-a-Service product that assists universities in mitigating fraud vulnerabilities during the student enrollment process…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.”