The following is a summary of the BM Technologies, Inc. (BMTX) Q2 2024 Earnings Call Transcript:
Financial Performance:
Operating revenues for second quarter and first half of 2024 were $12.5 million and $28.7 million respectively, showing a growth of 10% in the first half.
Interchange and card revenue increased by 57% year-over-year, mainly due to the change to a Durbin-exempt bank.
Core EBITDA for Q2 2024 was a loss of approximately $880,000, a slight improvement from a loss of $906,000 in Q2 last year.
Business Progress:
BM Technologies completed a significant technology platform transformation with a new micro service architecture, enhancing product and service delivery to the market.
Launched a new cash back rewards engine and saw significant engagement and utilization from student customers.
Launched an Identity Verification (IDV) product that is seeing adoption in universities, aimed at mitigating fraud during student enrollment.
Opportunities:
The rollout of new student-oriented products such as cash back rewards and upcoming financial wellness services are expected to boost customer engagement and revenue.
The IDV product expands BM Technologies' reach into potential university clients, broadening the client base and revenue sources.
Risks:
There is a potential wind down of the BaaS business by February 2025 due to current unprofitability in the regulatory and interest rate environment, which could affect revenues in the short term.
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