BM Technologies Increases Preliminary Third Quarter and Full Year 2021 Financial Guidance & Provides Corporate Update
RADNOR, Pa., Oct. 13, 2021 (GLOBE NEWSWIRE) -- BM Technologies, Inc. (NYSE American: BMTX), one of the largest digital banking platforms in the country, increases preliminary third quarter revenue and EBITDA guidance to approximately $22 million and $6 million respectively and about $92 million and $24 million for the full year ending December 31st, 2021.
Throughout 2021 BMTX has delivered strong revenue and improving profitability, with record results for the second quarter and first half of 2021. The company generated second quarter 2021 GAAP revenues of $22.9 million, an increase of 48% compared to the prior year, and $13.9 million of core EBITDA (a non-GAAP financial measure) in the first half of 2021, nearly four times all of 2020.
“We are investing heavily in our products and marketing on the student side of our business and are confident in our ability to acquire more students and retain them as customers for life by continuing to solve their most pressing pain points,” said Luvleen Sidhu, Chair, CEO, and Founder of BM Technologies. “Our New Businesses which include our White Label and Workplace Banking verticals continue to experience significant expansion. We are actively working our pipeline of prospective new white label customers to offer a suite of financial services products through our proprietary API driven platform. Additionally, Google recently announced it is winding down its Plex program and although disappointing, BMTX continues to pursue various growth strategies and initiatives and this will not impact our ability to generate meaningful revenue and EBITDA now and in the future.”
Sidhu added: “As one of the largest digital banking platforms in the country with approximately 2 million account holders, we remain focused on expanding our profitable, high-growth business model. We look forward to our earnings announcement in November and building long-term value for our shareholders.”
Other growth initiatives BMTX will pursue over the next 6 to 18 months include:
“Our objective has always been to execute our purpose driven mission to reach those who are underserved by traditional banks using state of the art mobile technology and operating with the best risk management infrastructure” commented Sidhu.
Third Quarter and Full Year 2021 Guidance
The company expects core EBITDA of at least $6.0 million in the third quarter of 2021, representing an increase of at least 60% when compared to core EBITDA of $3.7 million in the same year-ago quarter. The company expects core EBITDA of approximately $24.0 million for the full year 2021, representing an increase of about 535% when compared to core EBITDA of $3.8 million in the full year 2020. Core EBITDA is a non-GAAP measure; a reconciliation of historical periods is included at the end of this release.
“We continue to experience growth and leverage in our innovative business model, as evidenced by our increasing revenues and significant ramp in EBITDA,” Bob Ramsey, CFO of BM Technologies. “In fact, year-to-date EBITDA through the first three quarters of 2021 is expected to be over 5 times greater than EBITDA in all of 2020.”
About BM Technologies, Inc.
Note about Non-GAAP Financial Measures
In addition to financial results presented in accordance with GAAP, this press release presents core EBITDA, which is a non-GAAP measure. Core EBITDA is determined by taking net income (loss) and adding interest, taxes, depreciation, amortization, loss (gain) on fair value mark of private warrant liabilities, stock-based compensation expenses, and merger or other non-core expenses. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides useful information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company’s internal reporting to evaluate its operations and the performance of senior management. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.
Forward Looking Statements
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