Banzai Reports Fourth Quarter and Full Year 2024 Financial Results
Revenue of
Q4 2024 Adjusted Net Loss Improved by
Management to Host Fourth Quarter and Full Year 2024 Results Conference Call Today,
Fourth Quarter 2024 and Subsequent Key Financial & Operational Highlights
- Completed two acquisitions:
ClearDoc, Inc. (“OpenReel”) onDecember 19, 2024 , andVidello, Ltd. (“Vidello”) onJanuary 31, 2025 . - Signed a definitive agreement to acquire
Act-On Software Inc. (“Act-On”), an enterprise marketing automation platform (MAP) provider, which is projected to increase revenue by$27 million for the twelve-month period endingDecember 31, 2025 , on a pro-forma basis, when completed; acquisition subject to closing conditions. - Completed ahead-of-schedule repayment of
$20.3 million of outstanding liabilities as ofMarch 31, 2025 , pursuant to the$24.8 million debt payoff and restructuring agreements announced onSeptember 24, 2024 .
Pro-Forma, As Consolidated Highlights of
- Revenue of
$16.7 million on a consolidated, pro-forma basis, for the year endedDecember 31, 2024 , representing 267% annual growth compared to Banzai’s stand-alone revenue in FY 2023. - Expanded customer base to over 90,000 total customers.
Highlights of
- Revenue of
$4.5 million for FY 2024, a decrease of$0.03 million over FY 2023 of$4.6 million on a GAAP basis. - Revenue of
$1.3 million for Q4 2024 compared to$1.1 million for Q3 2024, a 20% sequential increase. - Annual Recurring Revenue (ARR) of
$6.8 million for Q4 2024. This represents a 54% annualized ARR growth rate compared to Q3 2024. - Q4 2024 Adjusted Net Loss was
($1.44) million , a$(0.03) million sequential improvement from Q3 2024 Adjusted Net Loss of($1.47) million . This represents an annualized improvement of$0.12 million . - FY 2024 Adjusted EBITDA improved by
$5.4 million to($6.5) million in FY 2024 from($11.9) million in FY 2023. - Launched a comprehensive initiative designed to improve net income by up to
$13.5 million annually while maintaining growth outlook. - Demio’s AI-powered webinar platform recognized with multiple accolades from the Gartner Digital Markets brands – Capterra, Software Advice, and GetApp.
Highlights of
- OpenReel demonstrated profitable financial results in FY 2024.
- FY 2024 Revenue of
$6.3 million - FY 2024 Net Income of
$0.1 million
Highlights of
- Vidello demonstrated profitable financial performance in CY 2024.
- CY 2024 Revenue of
$6.1 million - CY 2024 Net Income of
$1.5 million - Launched CreateStudio 4.0, the latest version of its award-winning video creation product.
Vidello, Ltd. FY 2024 endsMarch 31, 2024 . CY 2024 results included audited financials for the periodJanuary 1, 2024 , throughMarch 31, 2024 , and include reviewed, unaudited financials for the periodApril 1, 2024 , throughDecember 31, 2024 .
“The fourth quarter was underscored by significant consolidated, pro-forma revenue growth enabled by the recently closed acquisitions of Vidello and OpenReel, and continued strong performance for our products,” said
“For the fourth quarter, we achieved a 54% annualized Annual Recurring Revenue growth rate. Growth was driven by our focus on mid-market and enterprise customers, and on the Reach product through re-engineering and expanded sales efforts. In total, we now serve over 90,000 customers.
“To better serve our customers, we have continued to invest in our products and growth initiatives. We recently launched CreateStudio 4.0, with major A.I. enhancements for video creation including new A.I. builders, hook generators and assistant, and improved audio visualizer, call-to-action, and UI improvements. We added significant enhancements to our Demio platform through deeper integration with Salesforce, and key enhancements designed to maximize efficiency and scalability. Demio’s success was further validated with accolades including the Capterra Shortlist, the Software Advice Frontrunners, the GetApp Category Leaders, and Forbes.
“In 2024 we developed a completely re-engineered Reach offering, that we feel positions us for future growth in that category, as well as Curate, an AI-powered newsletter product which has already gained meaningful early customer traction.
“We made significant improvements to our balance sheet and cost structure, which we believe will position us for sustainable profitability in the future. With the investment in our Vidello acquisition, we further improved our financial position and flexibility with a
“Looking ahead, combined with our new acquisitions we are fueling marketing results with an integrated platform of AI-powered
Fourth Quarter 2024 Financial Results
Banzai believes its non-GAAP financial measure ARR is more meaningful in evaluating its performance. The Company’s management team evaluates its financial and operating results utilizing this non-GAAP measure. For the three months ended
Total GAAP revenue for the three months ended
Total cost of revenue for the three months ended
Gross profit for the three months ended
Total operating expenses for the three months ended
Net loss for the three months ended
Adjusted Net Loss for the three months ended
Adjusted EBITDA for the three months ended
Full Year 2024 Financial Results
Total revenue for the year ended
Cost of revenue for the years ended
Gross profit for the year ended
Total operating expenses for the year ended
Net loss for the year ended
Adjusted Net Loss for the year ended
Net cash used in operating activities for the year ended
Cash totaled
Annual Recurring Revenue (“ARR”) refers to annual run-rate revenue of subscription agreements from all customers in the last month of the measured period. These statements are forward-looking and actual ARR may differ materially. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause Banzai’s actual ARR to differ materially from these forward-looking statements.
Fourth Quarter and Full Year 2024 Results Conference Call
Banzai Founder & CEO
To access the call, please use the following information:
| Date: | |
| Time: | |
| Webcast Registration: | https://my.demio.com/ref/aLRoHasrpp8D7bM7 |
A replay of the webcast and the presentation utilized during the call will be available in the Company’s investor relations section here.
Note About Non-GAAP Financial Measures
Adjusted EBITDA
In addition to our results determined in accordance with
Non-GAAP measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We endeavor to compensate for the limitation of Adjusted EBITDA, by also providing the most directly comparable GAAP measure, which is net loss, and a description of the reconciling items and adjustments to derive the non-GAAP measure.
Adjusted EBITDA should only be considered alongside results prepared in accordance with GAAP, including various cash-flow metrics, net income (loss) and our other GAAP results and financial performance measures.
Net Income/(Loss) to Adjusted EBITDA Reconciliation
| Year Ended |
Year Ended |
Year-over- | Year-over- | |||||||||||||
| ($ in Thousands) | 2024 | 2023 | Year $ | Year % | ||||||||||||
| Net loss | $ | (31,513 | ) | $ | (14,406 | ) | $ | (17,107 | ) | 118.7 | % | |||||
| Other expense (income), net | 88 | (63 | ) | 151 | -239.7 | % | ||||||||||
| Depreciation expense | 24 | 7 | 17 | 242.9 | % | |||||||||||
| Stock based compensation | 1,166 | 1,246 | (80 | ) | -6.4 | % | ||||||||||
| Interest expense | — | 1,068 | (1,068 | ) | -100.0 | % | ||||||||||
| Interest expense - related party | 3,047 | 4,486 | (1,439 | ) | -32.1 | % | ||||||||||
| Income tax expense | — | — | — | nm | ||||||||||||
| GEM settlement fee expense | 200 | — | 200 | nm | ||||||||||||
| Gain on extinguishment of liabilities | (681 | ) | — | (681 | ) | nm | ||||||||||
| Loss on debt issuance | 653 | — | 653 | nm | ||||||||||||
| Loss on issuance of term notes | 1,072 | — | 1,072 | nm | ||||||||||||
| Loss on conversion and settlement of Alco promissory notes - related party | 4,809 | — | 4,809 | nm | ||||||||||||
| Loss on conversion and settlement of CP BF notes - related party | 6,529 | — | 6,529 | nm | ||||||||||||
| Change in fair value of warrant liability | (626 | ) | (1,807 | ) | 1,181 | -65.4 | % | |||||||||
| Change in fair value of warrant liability - related party | (573 | ) | 115 | (688 | ) | -598.3 | % | |||||||||
| Change in fair value of simple agreement for future equity | — | (208 | ) | 208 | -100.0 | % | ||||||||||
| Change in fair value of simple agreement for future equity - related party | — | (2,752 | ) | 2,752 | -100.0 | % | ||||||||||
| Change in fair value of bifurcated embedded derivative liabilities | — | (1,405 | ) | 1,405 | -100.0 | % | ||||||||||
| Change in fair value of bifurcated embedded derivative liabilities - related party | (51 | ) | (3,063 | ) | 3,012 | -98.3 | % | |||||||||
| Change in fair value of convertible notes | 693 | (34 | ) | 727 | -2138.2 | % | ||||||||||
| Change in fair value of term notes | 89 | — | 89 | nm | ||||||||||||
| Change in fair value of convertible bridge notes | (10 | ) | — | (10 | ) | nm | ||||||||||
| Yorkville prepayment premium expense | 81 | — | 81 | nm | ||||||||||||
| 2,725 | — | 2,725 | nm | |||||||||||||
| Transaction related expenses | 5,772 | 4,746 | 1,026 | 21.6 | % | |||||||||||
| Adjusted EBITDA (Loss) | $ | (6,506 | ) | $ | (11,944 | ) | $ | 5,438 | -45.5 | % | ||||||
About Banzai
Banzai is a marketing technology company that provides AI-enabled marketing and sales solutions for businesses of all sizes. On a mission to help their customers grow, Banzai enables companies of all sizes to target, engage, and measure both new and existing customers more effectively. Customers who use Banzai's product suite include Autodesk, Dell Technologies,
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding
Investor Relations
Executive Vice President
949-491-8235
BNZI@mzgroup.us
www.mzgroup.us
Media
Director, Demand Generation, Banzai
media@banzai.io
Consolidated Balance Sheets |
||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 1,087,497 | $ | 2,093,718 | ||||
| Accounts receivable, net of allowance for credit losses of |
936,321 | 105,049 | ||||||
| Prepaid expenses and other current assets | 643,674 | 741,155 | ||||||
| Total current assets | 2,667,492 | 2,939,922 | ||||||
| Property and equipment, net | 3,539 | 4,644 | ||||||
| Intangible assets, net | 3,883,853 | — | ||||||
| 18,972,475 | 2,171,526 | |||||||
| Operating lease right-of-use assets | 72,565 | 134,013 | ||||||
| Bifurcated embedded derivative asset - related party | 63,000 | — | ||||||
| Other assets | 11,154 | 38,381 | ||||||
| Total assets | 25,674,078 | 5,288,486 | ||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 7,782,746 | 6,439,863 | ||||||
| Accrued expenses and other current liabilities | 3,891,018 | 5,194,240 | ||||||
| Convertible notes (Yorkville) | — | 1,766,000 | ||||||
| Convertible notes - related party | 8,639,701 | 5,233,932 | ||||||
| Convertible notes | 215,057 | — | ||||||
| Notes payable - related party, net of discount | — | 9,164,924 | ||||||
| Notes payable, carried at fair value | 3,575,000 | — | ||||||
| Deferred underwriting fees | — | 4,000,000 | ||||||
| Deferred fee | — | 500,000 | ||||||
| Warrant liability | 15,000 | 641,000 | ||||||
| Warrant liability - related party | 2,300 | 575,000 | ||||||
| Earnout liability | 14,850 | 59,399 | ||||||
| Due to related party | 167,118 | 67,118 | ||||||
| GEM commitment fee liability | — | 2,000,000 | ||||||
| Deferred revenue | 3,934,627 | 1,214,096 | ||||||
| Operating lease liabilities, current | 22,731 | 234,043 | ||||||
| Total current liabilities | 28,260,148 | 37,089,615 | ||||||
| Deferred revenue - long-term | 117,643 | — | ||||||
| Deferred tax liability | 10,115 | — | ||||||
| Operating lease liabilities, non-current | 49,974 | — | ||||||
| Other long-term liabilities | — | 75,000 | ||||||
| Total liabilities | 28,437,880 | 37,164,615 | ||||||
| Commitments and contingencies (Note 17) | ||||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock, |
800 | 259 | ||||||
| Preferred stock, |
— | — | ||||||
| Additional paid-in capital | 75,515,111 | 14,889,936 | ||||||
| Accumulated deficit | (78,279,713 | ) | (46,766,324 | ) | ||||
| Stockholders' equity (deficit) | (2,763,802 | ) | (31,876,129 | ) | ||||
| Total liabilities and stockholders' equity (deficit) | $ | 25,674,078 | $ | 5,288,486 | ||||
Consolidated Statements of Operations |
||||||||
| For the Years Ended |
||||||||
| 2024 | 2023 | |||||||
| Operating income: | ||||||||
| Revenue | $ | 4,527,879 | $ | 4,561,300 | ||||
| Cost of revenue | 1,422,542 | 1,444,618 | ||||||
| Gross profit | 3,105,337 | 3,116,682 | ||||||
| Operating expenses: | ||||||||
| General and administrative expenses | 16,548,902 | 12,905,073 | ||||||
| Depreciation and amortization expense | 24,179 | 7,160 | ||||||
| Total operating expenses | 16,573,081 | 12,912,233 | ||||||
| Operating loss | (13,467,744 | ) | (9,795,551 | ) | ||||
| Other expenses (income): | ||||||||
| SEPA commitment fee and deferred fee expense | — | 3,826,176 | ||||||
| GEM warrant expense | — | 2,448,000 | ||||||
| GEM commitment fee expense | — | 2,000,000 | ||||||
| GEM settlement fee expense | 200,000 | — | ||||||
| Other expense (income), net | 88,329 | (62,985 | ) | |||||
| Interest income | (10 | ) | (813 | ) | ||||
| Interest expense | — | 1,068,447 | ||||||
| Interest expense - related party | 3,047,101 | 4,486,027 | ||||||
| Gain on extinguishment of liabilities | (680,762 | ) | — | |||||
| Loss on debt issuance | 653,208 | — | ||||||
| Loss on extinguishment of term notes | 1,071,563 | — | ||||||
| Loss on conversion and settlement of Alco promissory notes - related party | 4,808,882 | — | ||||||
| Loss on conversion and settlement of CP BF notes - related party | 6,529,402 | — | ||||||
| Change in fair value of warrant liability | (626,000 | ) | (1,807,000 | ) | ||||
| Change in fair value of warrant liability - related party | (572,700 | ) | 115,000 | |||||
| Change in fair value of simple agreement for future equity | — | (207,570 | ) | |||||
| Change in fair value of simple agreement for future equity - related party | — | (2,752,430 | ) | |||||
| Change in fair value of bifurcated embedded derivative liabilities | — | (1,404,863 | ) | |||||
| Change in fair value of bifurcated embedded derivative liabilities - related party | (51,000 | ) | (3,063,278 | ) | ||||
| Change in fair value of convertible notes | 693,000 | (34,000 | ) | |||||
| Change in fair value of term notes | 88,588 | — | ||||||
| Change in fair value of convertible bridge notes | (10,176 | ) | — | |||||
| Yorkville prepayment premium expense | 80,760 | — | ||||||
| 2,725,460 | — | |||||||
| Total other expenses, net | 18,045,645 | 4,610,711 | ||||||
| Loss before income taxes | (31,513,389 | ) | (14,406,262 | ) | ||||
| Income tax expense | — | — | ||||||
| Net loss | (31,513,389 | ) | (14,406,262 | ) | ||||
| Deemed dividend - Series A and Series B warrant modification (net of tax) | (418,360 | ) | — | |||||
| Net loss attributable to common shareholders | $ | (31,095,029 | ) | $ | (14,406,262 | ) | ||
| Net loss per share attributable to common shareholders | ||||||||
| Basic and diluted | $ | (6.97 | ) | $ | (6.00 | ) | ||
| Weighted average common shares outstanding | ||||||||
| Basic and diluted | 4,458,169 | 2,401,988 | ||||||
Consolidated Statements of Cash Flows |
||||||||
| For the Years Ended |
||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (31,513,389 | ) | $ | (14,406,262 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization expense | 24,179 | 7,160 | ||||||
| Provision for credit losses on accounts receivable | 18,462 | (102,112 | ) | |||||
| Non-cash shares issued to Yorkville for aggregate commitment fee | — | 3,288,000 | ||||||
| Non-cash issuance of warrants accounted for as liabilities | — | 2,448,000 | ||||||
| Non-cash share issuance for marketing expenses | 245,252 | — | ||||||
| Non-cash settlement of GEM commitment fee | 200,000 | 2,000,000 | ||||||
| Non-cash share issuance for Yorkville redemption premium | 80,760 | — | ||||||
| Discount at issuance on notes carried at fair value | 747,962 | 686,016 | ||||||
| Non-cash interest expense - related party | 1,532,475 | 513,977 | ||||||
| Amortization of debt discount and issuance costs | — | 958,822 | ||||||
| Amortization of debt discount and issuance costs - related party | 1,393,785 | 2,410,735 | ||||||
| Amortization of operating lease right-of-use assets | 137,717 | 173,245 | ||||||
| Stock based compensation expense | 1,165,680 | 1,245,796 | ||||||
| Gain on extinguishment of liability | (680,762 | ) | — | |||||
| Loss on conversion and settlement of Alco promissory notes - related party | 4,808,882 | — | ||||||
| Loss on conversion and settlement of CP BF notes - related party | 6,529,402 | — | ||||||
| Loss on debt issuance | 653,208 | — | ||||||
| Loss on extinguishment of term notes | 1,071,563 | — | ||||||
| Impairment loss | 2,725,460 | — | ||||||
| Excise tax | — | 305,719 | ||||||
| Change in fair value of warrant liability | (626,000 | ) | (1,807,000 | ) | ||||
| Change in fair value of warrant liability - related party | (572,700 | ) | 115,000 | |||||
| Change in fair value of simple agreement for future equity | — | (207,570 | ) | |||||
| Change in fair value of simple agreement for future equity - related party | — | (2,752,430 | ) | |||||
| Change in fair value of bifurcated embedded derivative liabilities | — | (1,404,863 | ) | |||||
| Change in fair value of bifurcated embedded derivative liabilities - related party | (51,000 | ) | (3,063,278 | ) | ||||
| Change in fair value of convertible promissory notes | 693,000 | (34,000 | ) | |||||
| Change in fair value of term notes | 88,588 | — | ||||||
| Change in fair value of convertible bridge notes | (10,176 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 15,828 | 65,479 | ||||||
| Prepaid expenses and other current assets | 551,645 | (407,648 | ) | |||||
| Other assets | 27,227 | — | ||||||
| Deferred offering costs | — | (1,708,163 | ) | |||||
| Accounts payable | 1,012,281 | 5,339,614 | ||||||
| Due to related party | — | 67,118 | ||||||
| Deferred revenue | (6,315 | ) | 283,660 | |||||
| Accrued expenses | 498,051 | 4,448,867 | ||||||
| Operating lease liabilities | (237,607 | ) | (284,963 | ) | ||||
| Earnout liability | (44,549 | ) | (229,700 | ) | ||||
| Deferred fees | — | 500,000 | ||||||
| Deferred revenue - long-term | 10,573 | — | ||||||
| Deferred tax liability | 10,115 | — | ||||||
| Other long-term liabilities | (75,000 | ) | — | |||||
| Net cash used in operating activities | (9,575,403 | ) | (1,550,781 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash acquired in acquisition of OpenReel | 82,219 | — | ||||||
| Net cash provided by investing activities | 82,219 | — | ||||||
| Cash flows from financing activities: | ||||||||
| Effect of Merger, net of transaction costs (Note 4) | — | (7,615,462 | ) | |||||
| Payment of GEM commitment fee | (1,200,000 | ) | — | |||||
| Repayment of convertible notes (Yorkville) | (750,000 | ) | — | |||||
| Proceeds from term notes, net of issuance costs | 2,782,438 | — | ||||||
| Repayment of term notes | (1,939,583 | ) | — | |||||
| Partial repayment of convertible notes - related party | (283,315 | ) | — | |||||
| Proceeds from Yorkville redemption premium | 35,040 | — | ||||||
| Proceeds from advance from related party | 100,000 | — | ||||||
| Proceeds from issuance of GEM promissory note | — | — | ||||||
| Proceeds from issuance of notes payable, net of issuance costs - related party | — | 4,387,701 | ||||||
| Proceeds from issuance of convertible notes, net of issuance costs | 2,602,000 | 3,235,000 | ||||||
| Proceeds from issuance of convertible notes, net of issuance costs - related party | — | 2,583,000 | ||||||
| Proceeds received for exercise of Pre-Funded warrants | 2,072 | — | ||||||
| Proceeds from issuance of shares to Yorkville under the SEPA agreement | 880,943 | — | ||||||
| Proceeds from issuance of common stock | 6,257,368 | 30,761 | ||||||
| Net cash provided by financing activities | 8,486,963 | 2,621,000 | ||||||
| Net decrease in cash | (1,006,221 | ) | 1,070,219 | |||||
| Cash at beginning of period | 2,093,718 | 1,023,499 | ||||||
| Cash at end of period | $ | 1,087,497 | $ | 2,093,718 | ||||
Source: Banzai International, Inc.