BM Technologies, Inc.

Good day and thank you for standing by. Welcome to the BMTX fourth quarter and full year 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be question and answer session. To ask a question during the session, you will need to press star 1 on your telethon. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Bob Ramsey, CFO, please go ahead.

Thank you, Jerome, and good morning, everyone. And thank you for joining us for BM Technologies' fourth quarter and full year 2021 earnings call. Our earnings release and investor presentation are both posted on the investor relations page of the company's website at ir.bmtxinc.com. Our investor presentation includes important details that we'll be walking through on this morning's call, and I encourage everyone to pull up a copy. Before we begin, I would like to remind you that some of the statements we make today may be considered forward-looking. These forward-looking statements are subject to a number of risks and uncertainties that may cause actual performance results to differ materially from what is currently anticipated. Please note that these forward-looking statements speak only as of the date of this presentation. and we undertake no obligation to update these forward-looking statements in light of new information or future events, except to the extent required by applicable securities laws. Please refer to our SEC filings, including our Form 10-K and 10-Q, for a more detailed description of the risk factors that may affect our results. Copies may be obtained from the SEC or by visiting the Investor Relations section of our website. This morning, I'm joined by BM Technologies Chair and CEO, Loveline Sadu. At this time, it's my pleasure to turn the call over to Loveline. Thank you.

Good morning, everyone. Thank you for joining BM Technologies' fourth quarter and full year 2021 earnings call. Joining me today on the call is Bob Ramsey, our CFO, and also joining us is our COO, Bob Deagle, who is on the line and available during the Q&A section if needed. We are thrilled to be sharing with you our record Q4 and full year results and also highlight our great accomplishments over the last year. Before we get started, I wanted to also acknowledge that we announced yesterday a non-cash restatement of our financials related to severance awards granted by Customers Bank to certain employees and executives of BMTX. in connection with its January 4th, 2021 divestiture of BM Technologies. These awards were reported in our company's filing, but the associated expense was not recognized by BMTX because it was considered an expense of customer's bank since they made the award. BM Technologies management and board were not involved in the granting of these awards. However, upon further analysis of technical accounting principles, the company determined that this non-cash share-based compensation expense related to this customer's bank-granted severance award should be included in BM Technologies' standalone financials. I want to emphasize that this correction has no impact on the company's previously reported revenues, core EBITDA, cash balance, assets, or equity, and no impact on the company's operations or its underlying business fundamentals. Bob Ramsey will share more details shortly. So now on to more exciting matters. For those joining us for the first time, I wanted to provide a very brief overview of who we are. BNPX is one of the largest digital banking platforms and banking as a service providers in the country today. We are on a mission to financially empower millions of Americans by providing a more affordable, transparent, and consumer-friendly banking experience. We were one of the first new banking fintechs to go public last year, are one of the first to have a profitable business model, and are now among the first fintechs embracing a bank charter to create an innovative fintech bank with a sustainable, profitable business model into the future. We pursue a B2BGC and a banking as a service strategy, which allows us to acquire bank customers at low cost and at high volumes. Today, we are acquiring customers at less than $10. This provides a tremendous competitive edge for us relative to not only traditional banks, but also to most challenger banks, which are having to spend an exorbitant amount to acquire a bank customer. Today, we are leveraging our B2B2C and banking as a service strategy in three main verticals. The first being our higher education vertical, where we have relationships with approximately 750 campuses across the country, which allows us to touch one in every three college-bound students and introduce them to VM technologies and offer them a choice to open a BankMobile Vibe checking account through our partner bank. The second vertical is our banking as a service business. Through our proprietary API-driven banking as a service platform, and our white label interface, we are able to help FinTechs and brands launch fully branded financial services products to their customers and to their employees at a fraction of the cost and at a fraction of the time it would take them to roll this out on their own. Our offerings provide them with a strong point of differentiation that leads to attracting new customers, building greater customer loyalty, adding new revenue streams, and accessing data to provide an even more personalized experience to their customers. Additionally, we manage the entire program end-to-end and also provide back office banking operations, compliance, fraud and risk management, and customer service support, which is an important differentiator and a competitive edge in the banking as a service space. Our best vertical is best exemplified today by our partnership with T-Mobile and with the launch of our checking account product, T-Mobile Money. We continue to expand and significantly grow this relationship. Lastly, our niche direct-to-consumer vertical is our most nascent vertical. We continue to have high conviction in the market need and value in executing targeted direct-to-consumer strategies to underserved affinity groups. This will include continuing to focus on an employee demographic, as we have talked about before, but will extend beyond that to other attractive segments. More to come on this over the next 6 to 12 months, And overall, we continue to make solid progress in all three of our verticals. From a financial standpoint, our vision continues to be to create a company with a market cap of $500 million to $1 billion over the next three to five years by executing on the strategy that we've laid out and building upon the strong foundation we already have. So let's get started. Flipping to slide four. I am delighted to report to you record results for the fourth quarter and full year 2021. We are pleased to report Q4 2021 revenues increased 46% to $25.3 million, up from $17.3 million in Q4 2020. 2021's full year revenues increased 41% to $94.6 million from $66.9 million in 2020. Additionally, Q4 core EBITDA increased over 400% to $7.8 million from $1.5 million in Q4 2020, and full year 2021 core EBITDA increased 625% to $28.6 million from $3.9 million in 2020. Q4 core earnings were 3.1 or 26 cents per diluted share compared to a loss of 2.2 million in Q4 2020. 2021 core earnings were 10.9 million or 92 cents per diluted share compared to a loss of 9.9 million in 2020. Lastly, we continue to show strength in new account origination, opening approximately 440,000 new accounts in 2021. Moving on to slide five, you can see that our average service deposit totaled $2 billion in Q4 2021, a 111% increase compared to Q4 2020. Average new business service deposits increased over 200% to $1.3 billion compared to Q4 2020, which is about a $900 million increase. As a reminder, our new business segment includes our banking as a service and niche direct to consumer banking verticals. In our student business, organic deposits, and also as a reminder, these are deposits that are above and beyond any school disbursement. These organic deposits increase 17% year over year to 2.2 billion when the 12 months ended December 31st, 2021. indicating strong primary banking behavior. Additionally, debit card spend was $777 million in Q4 2021, a 14% increase compared to Q4 2020. And new business debit spend increased 35% compared to Q4 2020. Lastly, in the higher education vertical, we dispersed $13.4 billion in refunds, to students for the full year, of which $1.8 billion was deposited into Bank Mobile Live accounts held at our partner bank. Let's move to slide six. We continue to see strong performance in the overall business. Our revenue per 90-day active account increased 39% year-over-year to approximately $188 in 2021. The strong revenue per account metric is driven by healthy average balances and spend across the portfolio. Again, our CAC, or customer acquisition cost, remains low at less than $10, demonstrating our strong margin on a per account basis. Again, we couldn't be more excited about our record financial results for the fourth quarter and full year 2021. I will now pass it on to our CFO, Bob Ramsey, for some additional financial details.