BM Technologies reports Q4 EPS (34c), consensus (25c)

Reports Q4 revenue $14.9M, consensus $14.95M..Reports Q4 Core EBITDA ($0.8M) marking the fourth sequential quarter of improved results. Core EBITDA for the twelve months ended December 31 totaled ($4.3M) Luvleen Sidhu, BMTX‘s Chair, CEO, and Founder, stated, “In December of 2023, we completed the transfer of the Higher Education customer deposits to our new partner bank FCB. Effective with the transfer, we are earning Durbin-exempt interchange rates on the majority of our serviced deposit account holder’s debit card spend. This transfer is expected to increase our annualized interchange revenue by approximately $4.4 million based on the current level of Higher Education debit card spend of $2.2B.” Ms. Sidhu continued, “As we begin 2024, we are better positioned for growth and profitability this year and over the long term. In addition to the transfer of our Higher Education customer deposits to a Durbin-exempt partner bank, the Profit Enhancement Plan (“PEP”) that we began implementing in early 2023 meaningfully reduced 2023 Core Operating Expenses1 by approximately $9.5 million with further savings expected to be realized in 2024. In addition, we estimate that less than 1 in 5 of our Higher Education disbursement services customers convert their refunds to active BankMobile Vibe checking accounts, presenting us with significant untapped potential to grow from an existing customer base. We have made significant investments to upgrade our technology platform positioning us to deepen customer relationships, increase customer lifetime value, and unlock new revenue streams. We are excited about our future and look forward to realizing these growth opportunities in the quarters and years to come.”