| Over a week ago | ||||
Northland analyst Mike… Northland analyst Mike Grondahl lowered the firm's price target on BM Technologies to $5 from $6 and keeps a Market Perform rating on the shares following the company's "tough" Q1 report. A deposit deal was signed with First Carolina Bank for the higher education business, and it sounds like regulatory review of the partnership is ongoing, says the firm, which notes that results were negatively impacted by loss of Durbin-exempt interchange until the higher education business transitions to a new sponsor bank. | ||||
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The company said,… The company said, "The Company continues to expect Core EBITDA results for the first half of 2023 to be in-line with the second half of 2022, and for FY23, the Company estimates Core EBITDA of approximately $14M. The guidance we have provided is under the expectation that we will target the transfer of our Higher Education customer deposits to FCB beginning on July 1. The Company will continue to provide updates to its 2023 financial outlook in its future earnings releases, particularly as it relates to business execution and the regulatory approval process for the anticipated transfer of our Higher Education deposits from Customers Bank to FCB." | ||||
Reports Q1 revenue… Reports Q1 revenue $13.5M, consensus $14.87M. "Q1 2023 tracked very closely to our expectations," said Luvleen Sidhu, BMTX's Chair, CEO, and Founder. "Q1 uarter results were temporarily negatively impacted by the loss of Durbin-exempt interchange until we transition our Higher Education business to a new sponsor bank. Our spend and deposit metrics for this business have improved quarter over quarter and these positive fundamentals will drive revenue growth once we transition to our new partner bank. Regulatory review of our partnership with First Carolina Bank is underway, and we continue to receive positive feedback on progress to date. In addition, and beginning in the second quarter, we expect servicing fee margins to improve by over 150 basis points at the current fed funds rate due to the impact of the new variable rate deposit servicing agreements. In the interim, we continue to focus our efforts on initiatives that position us as a lean, efficient, and innovative fintech including continued execution of our PEP. Initiatives completed during the first quarter collectively comprise nearly 50% of our targeted $15M cost savings goal that will be realized throughout 2023." | ||||
| Over a month ago | ||||
Maxim analyst Michael… Maxim analyst Michael Diana lowered the firm's price target on BM Technologies (BMTX) to $10 from $15 and keeps a Buy rating on the shares. BM's Q4 results missed consensus due to an unfavorable deposit processing servicing agreement with Customers Bank (CUBI) and due to a lower level of deposits, the analyst tells investors in a research note. BM's valuation remains compelling, the firm adds. | ||||
Northland lowered the… Northland lowered the firm's price target on BM Technologies (BMTX) to $6 from $7 and keeps a Market Perform rating on the shares following the company's Q4 report. New deposit servicing agreements and a T-Mobile (TMUS) extension "remove overhangs," said the firm, which adds that the second half will be better than the first half for BM Technologies. | ||||
| Over a quarter ago | ||||
The Company announced the… The Company announced the appointment of investment banking veteran Raj Singh to its Board of Directors effective January 27, 2023. Mr. Singh worked in the investment banking practice of Raymond James for more than 20 years, including most recently as Vice Chairman - Investment Banking from 2017 to 2023. | ||||
On January 26, 2023, the… On January 26, 2023, the Company elected Jamie Donahue, the Company's Executive Vice President and Chief Technology Officer, as the Company's President. Mr. Donahue has been in his current position with the Company since 2020. In his new position as President, Mr. Donahue will be responsible for leading the entire information technology, operations, product and program management, and sales teams as the Company pivots its strategy to ensure sustainable growth and profitability into the future as a leader in embedded finance and Banking-as-a-Service. Effective January 26, 2023, the Company transitioned Robert Ramsey, the Company's CFO, from that position to a new corporate development role. Concurrent with the transition of Mr. Ramsey, the Company elected James Dullinger, the Company's Chief Accounting Officer, to the additional position of CFO. Mr. Dullinger has been in his current position with the Company since March 2022. | ||||
BM Technologies announced… BM Technologies announced a series of actions being taken to streamline its operations, strengthen its management team, position the Company for future growth, and drive long-term shareholder value. In connection with its previously announced near-term strategy to focus on being an innovative, efficient, risk-oriented Fintech with a sponsor bank model, rather than becoming a bank, the Company committed to a targeted Profit Enhancement Plan on January 26, 2023 that it expects to deliver approximately $18 million in annualized cost reductions with approximately $15 million of savings expected in 2023. The Plan is intended to reduce operating costs, improve operating margins, improve operating cash flow, and continue advancing the Company's ongoing commitment to profitable growth and continued innovation, and direct the Company's resources toward its best opportunities. Included within the Plan is a targeted reduction of the Company's employee workforce of approximately 25% as compared to its headcount at December 31, 2022. This workforce reduction is in addition to other spend reduction and service provider rationalization. The Company expects the actions necessary to attain these cost reductions will be substantially completed by June 30, 2023. The Company estimates that it will incur approximately $1.5 million to $3.0 million in charges in connection with the Plan, substantially all of which are expected to be incurred in the first quarter of 2023. | ||||
After BM Technologies… After BM Technologies announced on December 23 that the company and First Sound Bank have reached a mutual decision not to move forward with the previously announced merger, Northland analyst Mike Grondahl called the deal termination a positive given how the macro environment has changed since the signing of the deal, especially in terms of interest rates and regulators. Grondahl, who expects the next two to three quarters to be weaker from a revenue perspective until the new variable deposit servicing deal gets put in place, has a Market Perform rating and $7 price target on BM Technologies shares. | ||||
