Banzai Reports First Quarter 2025 Financial Results
Revenue of
Gross Profit of
Q1 2025 Net Loss Improved to
Management to Host First Quarter 2025 Results Conference Call Today,
First Quarter 2025 and Subsequent Key Financial & Operational Highlights
- Revenue of
$3.4 million for Q1 2025, representing an increase of 213% million over Q1 2024 and a 160% sequential increase. - Gross profit of
$2.8 million for Q1 2025, representing an increase of 297% over Q1 2024. Gross margin was 82.1% in Q1 2025, compared to 64.7% in Q1 2024. - Annual Recurring Revenue (ARR) of
$14.9 million for Q1 2025. This represents a 268% annualized ARR growth rate compared to Q4 2024. - Q1 2025 Net Loss was
($3.6) million , a$4 million sequential improvement from Q4 2024 Net Loss of($7.9) million . - Q1 2025 Adjusted EBITDA was
($1.7) million , compared to($1.5) million in Q1 2024. - Completed acquisition of
Vidello, 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 . - Expanded customer base to over 90,000 total customers.
“In the first quarter, as our Vidello and OpenReel businesses continued to drive revenue momentum, we also focused on shoring up the financial strength of the company,” said
“For the first quarter, we achieved a 268% 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.
“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
“In the first quarter Banzai secured expanded agreements with several prominent enterprises including
“To better serve our customers, we have continued to invest in our products and growth initiatives. We 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.
“Looking ahead, our acquisitions have allowed us to build an integrated platform of AI-powered
First Quarter 2025 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 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 EBITDA for the three months ended
Net cash used in operating activities for the three months 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.
First Quarter 2025 Results Conference Call
Banzai Founder & CEO
To access the call, please use the following information:
| Date: | |
| Time: | |
| Webcast Registration: | https://my.demio.com/ref/qHC2rXEC8UQl131C |
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 | ||||||||||||||||
| Three Months Ended |
Three Months Ended |
Period- over- |
Period- over- |
|||||||||||||
| ($ in Thousands) | 2025 | 2024 | Period $ | Period % | ||||||||||||
| Net loss | $ | (3,644 | ) | $ | (4,291 | ) | $ | 647 | -15.1 | % | ||||||
| Depreciation expense | 247 | 2 | 245 | 12250.0 | % | |||||||||||
| Stock based compensation | 337 | 43 | 294 | 685.9 | % | |||||||||||
| Interest expense | — | 451 | (451 | ) | -100.0 | % | ||||||||||
| Interest expense - related party | 358 | 578 | (220 | ) | -38.1 | % | ||||||||||
| Income tax expense | 74 | (1 | ) | 75 | -7500.0 | % | ||||||||||
| GEM commitment fee expense | - | 200 | (200 | ) | -100.0 | % | ||||||||||
| Gain on extinguishment of liabilities | (4,343 | ) | (528 | ) | (3,815 | ) | 722.5 | % | ||||||||
| Loss on debt issuance | 274 | 171 | 103 | 60.2 | % | |||||||||||
| Loss on issuance of term notes | 1,770 | — | 1,770 | nm | ||||||||||||
| Change in fair value of warrant liability | (4 | ) | (408 | ) | 404 | -99.0 | % | |||||||||
| Change in fair value of warrant liability - related party | 2 | (115 | ) | 117 | -101.7 | % | ||||||||||
| Change in fair value of bifurcated embedded derivative liabilities - related party | 43 | - | 43 | nm | ||||||||||||
| Change in fair value of convertible notes | 159 | 544 | (385 | ) | -70.8 | % | ||||||||||
| Change in fair value of term notes | 166 | — | 166 | nm | ||||||||||||
| Change in fair value of convertible bridge notes | (22 | ) | — | (22 | ) | nm | ||||||||||
| Loss on yorkville sepa advances | 385 | — | 385 | nm | ||||||||||||
| Other expense, net | (125 | ) | (4 | ) | (121 | ) | 3025.0 | % | ||||||||
| Transaction related expenses* | 2,582 | 1,842 | 740 | 40.2 | % | |||||||||||
| Adjusted EBITDA (Loss) | $ | (1,742 | ) | $ | (1,512 | ) | $ | (230 | ) | 15.2 | % | |||||
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
Chief Legal Officer, Banzai
media@banzai.io
Consolidated Balance Sheets |
||||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 780,764 | $ | 1,087,497 | ||||
| Accounts receivable, net of allowance for credit losses of |
1,028,379 | 936,321 | ||||||
| Prepaid expenses and other current assets | 831,394 | 643,674 | ||||||
| Total current assets | 2,640,537 | 2,667,492 | ||||||
| Property and equipment, net | 10,889 | 3,539 | ||||||
| Intangible assets, net | 8,936,187 | 3,883,853 | ||||||
| 21,991,721 | 18,972,475 | |||||||
| Operating lease right-of-use assets | 66,896 | 72,565 | ||||||
| Bifurcated embedded derivative asset - related party | 20,000 | 63,000 | ||||||
| Other assets | 13,984 | 11,154 | ||||||
| Total assets | 33,680,214 | 25,674,078 | ||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 2,830,450 | 7,782,746 | ||||||
| Accrued expenses and other current liabilities | 4,030,965 | 3,891,018 | ||||||
| Convertible notes (Yorkville) | 1,684,000 | — | ||||||
| Convertible notes - related party | 8,104,901 | 8,639,701 | ||||||
| Convertible notes | — | 215,057 | ||||||
| Notes payable, carried at fair value | 5,949,001 | 3,575,000 | ||||||
| Warrant liability | 11,000 | 15,000 | ||||||
| Warrant liability - related party | 4,600 | 2,300 | ||||||
| Earnout liability | 2,046,370 | 14,850 | ||||||
| Due to related party | 167,118 | 167,118 | ||||||
| Deferred revenue | 4,419,195 | 3,934,627 | ||||||
| Operating lease liabilities, current | 23,485 | 22,731 | ||||||
| Total current liabilities | 29,271,085 | 28,260,148 | ||||||
| Deferred revenue, non-current | 111,161 | 117,643 | ||||||
| Deferred tax liability | 1,309,333 | 10,115 | ||||||
| Operating lease liabilities, non-current | 43,765 | 49,974 | ||||||
| Total liabilities | 30,735,344 | 28,437,880 | ||||||
| Commitments and contingencies (Note 15) | ||||||||
| Stockholders' equity (deficit): | ||||||||
| Common stock, |
1,450 | 800 | ||||||
| Preferred stock, |
— | — | ||||||
| Additional paid-in capital | 84,866,612 | 75,515,111 | ||||||
| Accumulated deficit | (81,923,192 | ) | (78,279,713 | ) | ||||
| Stockholders' equity (deficit) | 2,944,870 | (2,763,802 | ) | |||||
| Total liabilities and stockholders' equity (deficit) | $ | 33,680,214 | $ | 25,674,078 | ||||
Unaudited Condensed Consolidated Statements of Operations |
||||||||
| For the Three Months Ended |
||||||||
| 2025 | 2024 | |||||||
| Revenue | $ | 3,379,083 | $ | 1,079,472 | ||||
| Cost of revenue | 605,999 | 381,380 | ||||||
| Gross profit | 2,773,084 | 698,092 | ||||||
| Operating expenses: | ||||||||
| General and administrative expenses | 7,433,088 | 4,098,789 | ||||||
| Depreciation and amortization expense | 246,691 | 1,564 | ||||||
| Total operating expenses | 7,679,779 | 4,100,353 | ||||||
| Operating loss | (4,906,695 | ) | (3,402,261 | ) | ||||
| Other expenses (income): | ||||||||
| GEM settlement fee expense | — | 200,000 | ||||||
| Interest income | (2 | ) | (10 | ) | ||||
| Interest expense | — | 451,399 | ||||||
| Interest expense - related party | 358,381 | 577,513 | ||||||
| Gain on extinguishment of liabilities | (4,343,406 | ) | (527,980 | ) | ||||
| Loss on debt issuance | 273,800 | 171,000 | ||||||
| Loss on extinguishment of term notes | 1,769,895 | — | ||||||
| Change in fair value of warrant liability | (4,000 | ) | (408,000 | ) | ||||
| Change in fair value of warrant liability - related party | 2,300 | (115,000 | ) | |||||
| Change in fair value of bifurcated embedded derivative assets - related party | 43,000 | — | ||||||
| Change in fair value of convertible notes | 159,100 | 544,000 | ||||||
| Change in fair value of term notes | 165,906 | — | ||||||
| Change in fair value of convertible bridge notes | (21,714 | ) | — | |||||
| Loss on Yorkville SEPA advances | 384,524 | — | ||||||
| Other income, net | (124,531 | ) | (4,118 | ) | ||||
| Total other (income) expenses, net | (1,336,747 | ) | 888,804 | |||||
| Loss before income taxes | (3,569,948 | ) | (4,291,065 | ) | ||||
| Income tax expense (benefit) | 73,531 | (933 | ) | |||||
| Net loss | (3,643,479 | ) | (4,290,132 | ) | ||||
| Net loss attributable to common shareholders | $ | (3,643,479 | ) | $ | (4,290,132 | ) | ||
| Net loss per share attributable to common shareholders | ||||||||
| Basic and diluted | $ | (0.15 | ) | $ | (1.64 | ) | ||
| Weighted average common shares outstanding | ||||||||
| Basic and diluted | 23,963,166 | 2,612,025 | ||||||
Unaudited Condensed Consolidated Statements of Cash Flows |
||||||||
| For the Three Months Ended |
||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (3,643,479 | ) | $ | (4,290,132 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization expense | 246,691 | 1,564 | ||||||
| Provision for credit losses on accounts receivable | (9,707 | ) | (2,191 | ) | ||||
| Non-cash share issuance for marketing expenses | — | 48,734 | ||||||
| Non-cash shares issued for consulting expenses | 232,500 | — | ||||||
| Non-cash settlement of GEM commitment fee | — | 200,000 | ||||||
| Discount at issuance on notes carried at fair value | 16,200 | — | ||||||
| Non-cash interest expense | — | 374,944 | ||||||
| Non-cash interest expense - related party | 336,275 | 87,758 | ||||||
| Amortization of debt discount and issuance costs | (885 | ) | 30,027 | |||||
| Amortization of debt discount and issuance costs - related party | — | 489,755 | ||||||
| Amortization of operating lease right-of-use assets | 5,669 | 43,705 | ||||||
| Stock based compensation expense | 336,568 | 42,827 | ||||||
| Gain on extinguishment of liability | (4,343,406 | ) | (527,980 | ) | ||||
| Loss on debt issuance | 273,800 | 171,000 | ||||||
| Loss on extinguishment of term notes | 1,769,895 | — | ||||||
| Loss on SEPA issuance | 384,524 | — | ||||||
| Change in fair value of warrant liability | (4,000 | ) | (408,000 | ) | ||||
| Change in fair value of warrant liability - related party | 2,300 | (115,000 | ) | |||||
| Change in fair value of bifurcated embedded derivative liabilities - related party | 43,000 | — | ||||||
| Change in fair value of convertible promissory notes | 159,100 | 544,000 | ||||||
| Change in fair value of term notes | 165,906 | — | ||||||
| Change in fair value of convertible bridge notes | (21,714 | ) | — | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (82,351 | ) | 72,570 | |||||
| Prepaid expenses and other current assets | (187,720 | ) | (186,558 | ) | ||||
| Other assets | (2,830 | ) | — | |||||
| Accounts payable | (609,595 | ) | 1,897,046 | |||||
| Deferred revenue | 36,602 | 31,210 | ||||||
| Accrued expenses | (212,557 | ) | (524,713 | ) | ||||
| Operating lease liabilities | (5,455 | ) | (75,078 | ) | ||||
| Earnout liability | 170,481 | (22,274 | ) | |||||
| Deferred revenue - long-term | (6,482 | ) | — | |||||
| Deferred tax liability | (25,032 | ) | — | |||||
| Net cash used in operating activities | (4,975,702 | ) | (2,116,786 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash paid in acquisition of Vidello, net of cash acquired | (2,677,480 | ) | — | |||||
| Net cash used in investing activities | (2,677,480 | ) | — | |||||
| Cash flows from financing activities: | ||||||||
| Payment of GEM commitment fee promissory note | (215,057 | ) | (1,200,000 | ) | ||||
| Repayment of convertible notes (Yorkville) | (1,877,100 | ) | — | |||||
| Proceeds from term notes, net of issuance costs | 4,000,000 | — | ||||||
| Repayment of term notes | (3,686,086 | ) | — | |||||
| Partial repayment of convertible notes - related party | (870,190 | ) | — | |||||
| Proceeds from issuance of convertible notes, net of issuance costs | 3,258,000 | 2,250,000 | ||||||
| Proceeds from issuance of shares to Yorkville under the SEPA | 6,687,082 | — | ||||||
| Proceeds from shares issued to Verista | 49,800 | — | ||||||
| Net cash provided by financing activities | 7,346,449 | 1,050,000 | ||||||
| Net decrease in cash | (306,733 | ) | (1,066,786 | ) | ||||
| Cash at beginning of period | 1,087,497 | 2,093,718 | ||||||
| Cash at end of period | $ | 780,764 | $ | 1,026,932 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | — | 44,814 | ||||||
| Non-cash investing and financing activities | ||||||||
| Shares issued to Roth for advisory fee | — | 278,833 | ||||||
| Shares issued to GEM | — | 100,000 | ||||||
| Shares issued for marketing expenses | — | 194,935 | ||||||
| Shares issued to Hudson for consulting fee | 232,500 | — | ||||||
| Settlement of GEM commitment fee | — | 200,000 | ||||||
| Consideration transferred for acquisition of Vidello | 1,661,677 | — | ||||||
| Assets acquired in acquisition of Vidello | 8,393,172 | — | ||||||
| Liabilities assumed in acquisition of Vidello | 3,986,464 | — | ||||||
| Shares issued to Yorkville of aggregate commitment fee | — | 500,000 | ||||||
| Conversion of convertible notes - Yorkville | — | 1,667,000 | ||||||
| Conversion of convertible notes - related party | — | 2,540,091 | ||||||
Source: Banzai International, Inc.