Financial Performance - Operating revenues for the three months ended March 31, 2021, were $24.4 million, a 55% increase from $15.8 million in the same period in 2020[123]. - Net income for the first quarter of 2021 was $18.9 million, compared to a net loss of $(4.5) million in the first quarter of 2020[124]. - Basic earnings per share for the first quarter of 2021 were $1.59, compared to a loss of $(0.74) per share in the same period in 2020[124]. - The company recorded a gain of $15.0 million on the fair value of private warrant liability, contributing to improved profitability[123]. Revenue Sources - Interchange and card revenue rose by $1.7 million, or 26%, driven by a 31% increase in total spend, which reached $880.6 million[129]. - Servicing fees from the partner bank increased by $4.6 million, or 97%, due to the rise in average deposits[128]. - Other revenue increased by $2.5 million, primarily due to additional project revenues from the white label partner[129]. Deposits and Accounts - Average deposits increased by 112% to $1.31 billion in the three months ended March 31, 2021, compared to the same period in 2020[129]. - A white label partner accounted for approximately 25% of accounts receivable as of March 31, 2021, down from 63% at December 31, 2020[141]. Operating Expenses - Total operating expenses decreased by $1.3 million, or 6%, from $19.9 million in the first quarter of 2020 to $18.6 million in 2021[123]. - Salaries and employee benefits decreased by $2.0 million, or 27%, primarily due to a headcount reduction[130][132]. - Professional services expenses declined by $2.2 million, or 56%, due to reduced reliance on higher-cost outside contractors[132][133]. - Account fees decreased by $0.2 million, or 8%, reflecting a trend in active student accounts[129]. - Technology expenses increased by $2.6 million, or 42%, year-over-year, driven by higher spending on core processing functions[130][132]. Cash Flow and Liquidity - Net cash provided by operating activities was $9.5 million, an increase of $11.0 million compared to a cash used of $(1.5) million in the same period in 2020[137]. - Cash and cash equivalents amounted to $17.4 million as of March 31, 2021, with a line of credit providing up to $10.0 million of borrowings[135]. - Cash flows used in investing activities decreased by $1.0 million, primarily due to lower capital investment in 2021[137]. - Cash provided from financing activities was $5.0 million in 2021, resulting from a recapitalization transaction[137]. Provisions and Losses - Provision for operating losses increased by $446,000, or 51%, compared to the previous year[130].
BM Technologies(BMTX) - 2021 Q1 - Quarterly Report