BM Technologies (BMTX) Q3 2024 earnings summary

Executive summary

• BM Technologies reported a net loss of $5.0 million for Q3 2024 and a net loss of $9.1 million for the nine months ended September 30, 2024, a 32% improvement year-over-year.

• Operating revenues for Q3 2024 were $14.1 million, down 2% year-over-year, while nine-month revenues rose 6% to $42.8 million.

• The company entered a definitive agreement on October 24, 2024, to be acquired by First Carolina Bank for $5.00 per share in cash, a 55% premium to the prior day’s closing price, pending shareholder and regulatory approval.

• Upon completion, BM Technologies will become a wholly owned subsidiary of First Carolina Bank and continue operating under its current name.

• Implementation of the NextGen technology platform in Q2 2024 led to one-time costs and higher expenses, but is expected to drive future efficiencies.

Financial highlights

• Q3 2024 net loss: $5.0 million, or $(0.42) per share; nine-month net loss: $9.1 million, or $(0.77) per share, improved from $13.4 million, or $(1.16) per share, in 2023.

• Q3 2024 operating revenues: $14.1 million (down 2%); nine-month revenues: $42.8 million (up 6%).

• Core EBITDA (loss) for Q3 2024 was $(2.1) million; year-to-date Core EBITDA (loss) was $(1.6) million.

• Cash and cash equivalents at September 30, 2024: $11.2 million, down from $14.3 million at year-end 2023; no debt reported.

• Operating cash flow for nine months ended September 30, 2024: $1.8 million, up from $(5.5) million in 2023.

Outlook and guidance

• Management expects sufficient liquidity to support operations for at least the next 12 months, projecting $13.6 million in liquidity by November 2025.

• Margin improvement is expected from Durbin-exempt interchange fees and cost savings from the PEP initiative.

• The pending merger is expected to close by January 31, 2025, subject to shareholder and regulatory approvals.

• Forward-looking statements are subject to risks including economic conditions, regulatory changes, and completion of the merger.