Banzai International Q4 2024 Earnings Report

Banzai International EPS Results

• Actual EPS: N/A
• Consensus EPS: -$8.00
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Banzai International Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $1.49 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Banzai International Announcement Details

• Quarter: Q4 2024
• Date: 5/21/2025
• Time: Before Market Opens
• Conference Call Date: N/A
• Conference Call Time: N/A

Banzai International (NASDAQ:BNZI), a marketing technology company, provides data-driven marketing and sales solutions for various businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products include Demio, a browser-based webinar platform with data and marketing features designed to help businesses engage with their audience through live events and on-demand, interactive video content; Boost, a software-as-a-service (SaaS) solution for social sharing by event registrants; and Reach, a SaaS and managed service to increase registration and attendance of marketing events. The company serves healthcare, financial services, e-commerce, technology, media, and other industries. Banzai International, Inc. was founded in 2015 and is based in Bainbridge Island, Washington.

Banzai International Q4 2024 Earnings Call Transcript

Presentation

[Operator]

welcome to the Bonsai Fourth Quarter and Full Year twenty twenty four Financial Results and Business Update Conference Call. A question and answer session will follow the formal presentation. As a reminder, this conference call is being recorded. Before we begin the formal presentation, I would like to remind everyone that statements made on this call and webcast may be may include predictions, estimates, or other information that might be considered forward looking. While these forward looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially.

[Operator]

You are cautioned not to place undue reliance on these forward looking statements, which reflect our opinions only as of the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events. Throughout today's discussion, we will attempt to present some important factors relating to our business that may affect our predictions. You should also review our most recent Form 10 ks and Form 10 Q for more complete discussion of these factors and other risks, particularly under the heading Risk Factors. A press release detailing these results was issued this afternoon and is available in the Investor Relations section of our company's website, bonsai.io.

[Operator]

Your host today, Joe Davey, Chief Executive Officer and Alvin Yip, Chief Financial Officer, will present unaudited results of operations for the fourth quarter and full year ended 12/31/2024. At this time, I will turn the call over to Bonsai chief executive officer, Joe Davey.

[Joe Davy, Founder & CEO at Banzai International]

Thank you, and good afternoon, everyone. I am pleased to welcome you to Bonsai's fourth quarter and full year twenty twenty four financial results conference call. We oh, let me just go ahead and flip to the next slide here. Sorry. We are seeing an acceleration of growth at Bonsai with the fourth quarter showing significant pro form a revenue growth.

[Joe Davy, Founder & CEO at Banzai International]

This is driven by the recently closed acquisitions of Vidello and OpenReal as well as continued strong performance for our products. For the full year 2024, total revenue on a consolidated pro form a basis was $16,700,000, which represents a 267 percent annual growth compared to Bonsai's standalone revenue in 2023. Vidello's next generation video creation, editing, and marketing suite and OpenReal's digital video creation platform combined to add approximately $13,000,000 in revenue that enabled us to greatly exceed our previously announced 2024 guidance of $10,000,000. We are also making continued progress towards the closing of the acquisition of Acton Software, which is projected to increase revenue by $27,000,000 for the full year 2025 on a pro form a basis. Importantly, we recently paid off $20,300,000 of debt, which fully satisfies outstanding debt obligations to key vendors and will deliver a material benefit to net income and shareholders' equity for 2025.

[Joe Davy, Founder & CEO at Banzai International]

We have continued to drive growth with the addition of 1,300 customers through December 2024. Bonsai now serves a customer base of nearly 90,000 customers, many of which are top tier enterprises that rely on our technology to succeed. I will begin with a brief overview of Bonsai those of you that are newer to the story and touch on the market opportunity and the long term vision. I will then cover some highlights from 2024, including updates on each of our products and our go forward strategy. And I'll just point out that this presentation is being run on Demio, which is a Bonsai product.

[Joe Davy, Founder & CEO at Banzai International]

And the, you know, view care of myself and Alvin were created using Create Studio, which is another Bonsai product. So I hope everybody enjoys using a couple of Bonsai products today. At Bonsai, we're building a platform of AI powered marketing solutions that make our customers' lives 10 times faster and easier. Our products enable our customers from small businesses to large global enterprises to target, engage, measure both new and existing customers more effectively. We're focused on the rapidly growing global martech market driven by digital transformation, heightened demand for personalized experiences, and the proliferation of automation and AI.

[Joe Davy, Founder & CEO at Banzai International]

Marketers in the modern age must grapple with a vast and complex network of vendors. Our core product suite addresses the issue of disjointed customer experiences and messy data by centralizing essential tools in one place, Bonsai. We're continuing to bolster our family of products by acquisitions positioning us strongly for capitalizing on industry consolidation. Before we delve deeper into updates for each of our individual products, I'd like to cover some key highlights for 2024 and subsequent period. First off, our 2024 pro rep pro form a revenue in total was $16,700,000, exceeding our previous guidance of $10,000,000 by 67% and representing 267% annual growth.

[Joe Davy, Founder & CEO at Banzai International]

In the first quarter of twenty twenty five, we completed a $20,300,000 debt repayment ahead of schedule, which fully satisfied our outstanding debt obligations to several key vendors. We're extremely pleased to deliver this improvement on the balance sheet, which will also create a material benefit to net income for 2025. We achieved annual recurring revenue of 6,800,000.0 in the fourth quarter. This represents a five 54% annualized ARR growth rate compared to q three twenty twenty four. Full year 2024 adjusted EBITDA was negative 6,500,000.0, which represents a $5,400,000 improvement from full year 2023 EBITDA of negative 11,900,000.0.

[Joe Davy, Founder & CEO at Banzai International]

We acquired Vidello, a technology provider of video hosting and marketing suite for businesses, and OpenReal, a leading, digital video creation platform. We signed a definitive agreement to acquire Acton Software, an enterprise marketing automation platform provider, which is projected to increase full year 2025 revenue by $27,000,000 on a pro form a basis. We grew our customer base from 27, hundred customers at the end of twenty twenty three to over 90,000 as of 03/31/2025. We launched Create Studio four point o, which is the latest version of Create Studio's award winning video creation app developed by the recently acquired Vidello. Finally, we launched Curate, an AI powered newsletter platform designed to streamline content creation and audience engagement for organizations of all sizes.

[Joe Davy, Founder & CEO at Banzai International]

As we look at our long term vision, we are building an AI powered platform that provides marketing teams with the data analytics and integrated applications they need to win. We are consolidating mission critical subscale Martech products within the key themes, which we'll call our four horsemen of marketing technology, attracting leads, engaging them through content, gathering and enriching data to drive business intelligence, and measuring results to improve operations. All products that we have built, will build, or acquire will fit into this framework, which simply put, is focused on delivering more customer value over time. Through 03/31/2025, Bonsai achieved a milestone in debt repayment under our September 2024 restructuring plan. Now that we've repaid, we've we've now repaid $20,300,000 of liabilities under that plan, this will impact both stockholders' equity and net income in 2025, and this is a very meaningful milestone for the company and positions us for future financial strength.

[Joe Davy, Founder & CEO at Banzai International]

Moving on to our products. In 2024 and q one twenty twenty five, we completed the acquisitions of OpenReal and Vidello. These products will be operated under a consolidated video business unit within Bonsai that is focused on helping marketers leverage video to engage their leads and customers more effectively. This consolidated business had pro form a revenues of $16,700,000 in 2024, which represents 267% growth compared to Banzai standalone in 2023. I'll I'll pause here, and I'll point out that, this, slide, the scene that you're seeing here, are assets from Create Studio.

[Joe Davy, Founder & CEO at Banzai International]

Our Vidello subsidiary, makes Create Studio, a leading product for creating three d Pixar style videos quickly and easily. It includes over 1,000 prebuilt assets customers can leverage in their projects and has over 85,000 customers as of 03/31/2025. Vidello also includes products for video marketing, live images, and royalty free audio. In February, we launched Create Studio four point o, the latest version of the award winning video creation app developed by our Vidello subsidiary. The Vidello business delivered $6,100,000 in revenue and $1,500,000 in net income in 2024.

[Joe Davy, Founder & CEO at Banzai International]

Meet OpenReal. Our OpenReal product enables customers to capture, create, and edit brand compliant production ready videos. It enables remote capture from any device and AI powered editing to streamline customer workflows. The OpenReal business has over 650 mid market and enterprise customers and delivered $6,300,000 in revenue and $100,000 in net income in 2024. And finally, Demio. We're continuing to see traction with

[Joe Davy, Founder & CEO at Banzai International]

Demio, our AI powered webinar platform, which you're all joining us on today. We've made enhancements to the platform's integration with HubSpot, Salesforce, and Pardot to offer advanced contact management, UTM tracking, and seamless data synchronization at both the session and contact levels. Demio has an industry first feature, event insights, pre event analytics delivered to your inbox, tracking registrations, cancellations, room size alerts, peak days, and top channels. This empowers Demio users to make data driven decisions and maximize attendee engagement to better leverage everyone's time. Our AI moderator to Demio, powered by our own LLM custom designed to this purpose, allows our customers to train an AI to join their webinars to assist their attendees.

[Joe Davy, Founder & CEO at Banzai International]

Demio is built to empower marketers to streamline their webinar management and marketing efforts, ultimately leading to better business decision making and higher ROI for our customers. In January 2025, we announced a definitive agreement to acquire Acton Software Inc. Acton is a leading marketing automation platform provider. It's expected to be accretive to Bonsai's overall revenue and net income in 2025. This acquisition is subject to the satisfaction or waiver of closing conditions and is still in progress.

[Joe Davy, Founder & CEO at Banzai International]

Curate, which we launched late last year, is a groundbreaking AI powered newsletter platform that writes and grows itself. Leveraging OpenAI's GPT four o to automate the newsletter creation process, Curate writes relevant branded articles that resonate with target audiences. Newsletters are a key modern engagement tool for businesses to highlight their brand for their existing and prospective customers, but they currently require significant time and resources to create and maintain. Curate was made to take down the cost and effort for our customers to create high quality newsletters by 90%. This is a really cool product, by the way.

[Joe Davy, Founder & CEO at Banzai International]

If you're interested in the demo, send me an email after the end of this, and I'll make sure it happens. Driven by our acquisitions, we've substantially scaled our customer base to over 90,000 customers while retaining leaders from various industries. Some of our key customers and partners include Cisco, Adobe, Thermo Fisher Scientific, Microsoft, Dell, Capital One, RBC Global Asset Management, among thousands of others. We serve a variety of industries, including health care, financial services, ecommerce, technology, and media in over 90 countries. We're continuing to focus on targeting the mid market and enterprise segment while still supporting small businesses.

[Joe Davy, Founder & CEO at Banzai International]

We're taking a disciplined approach to focus on acquiring stickier, higher value customers. Bonsai continues to be focused on our strategy of building and buying new products across four key areas, attracting leads, engaging content, tracking, and intelligence. We feel these areas are key to marketing success both now and in the future for our customers. Our growth strategy is centered around our secret sauce, our land and expands model. The land phase is securing a customer for one Bonsai solution based on their needs at the time.

[Joe Davy, Founder & CEO at Banzai International]

With the variety of complementary tools that are now in our product suite, we can then upsell that customer to increase NRR or the expansion phase. We're targeting a 10% cross sale rate per business unit in 2025. Our vision is to build a moat in two key areas, integrations and AI enablement. By combining multiple products on a single platform, we can simplify customers' workflows and deliver on our brand promise of 10 times faster and easier solutions. Long term, we believe AI enablement will be key to marketing success.

[Joe Davy, Founder & CEO at Banzai International]

We believe that adding more products with more data will enable us to deliver more powerful AI features over time. Our business model is based on a flywheel where great products lead to growing customer usage, which then drives additional data and content on our products. This data and content enables us to create additional high value or create additional customer value through integrations, automations, and AI features. Over time, we believe that this flywheel will be key to driving customer expansion and the continued organic growth of our business. We see an enormous potential for long term value creation by scaling via strategic acquisitions in addition to organic growth.

[Joe Davy, Founder & CEO at Banzai International]

We're taking a diligent approach to evaluating potential candidates that can align with the key themes of Bonsai's AI driven platform. Again, attracting leads, engagement, data, and intelligence. The opportunity for Bonsai is twofold. First, increase our product capabilities by acquiring strategically aligned products that serve our core customer base, and second, by accelerating our path to profitability and scale and, hopefully, to benefit from multiple expansion along the way. I will now turn the call over to Alvin Yepp, Interim Chief Financial Officer, to discuss our financial results.

[Joe Davy, Founder & CEO at Banzai International]

Alvin?

[Alvin Yip, CFO at Banzai International]

Thank you, Joe. Hi, everyone. So I'm gonna do a financial summary on the q four and and the twelve month full year financial. Total revenue for the February was 1,300,000.0 compared to 1,100,000.0 in the February. However, we believe the non GAAP metrics annual recurring revenue or ARR is more meaningful in evaluating the

[Alvin Yip, CFO at Banzai International]

ARR was 6,800,000.0 for the February and represents a 46% increase from the February. Gross profit for the February was 900,000.0 compared to 800,000.0 in the February. Gross margin was flat at 71% in the fourth quarter of twenty twenty four compared to 71% in the fourth quarter of twenty twenty three. Total operate total operating expense for the February were 4,800,000.0 compared to $44,000,000 in the February. Net loss for the fourth quarter of twenty twenty four was 7,800,000.0 compared to a net loss of 6,400,000.0 in the fourth quarter of twenty twenty three year.

[Alvin Yip, CFO at Banzai International]

Non GAAP adjusted EBITDA for the fourth quarter of twenty twenty four was $1,440,000 reflecting a net loss of $7,900,000 before changing the value adjustment of common stock warrants issued, goodwill and other bifurcated embedded derivative liabilities for a total of 4,200,000.0, loss on extinguishment of debt and other expenses for 2,300,000.0, and is a sub sequential improvement of points point zero three million compared to the adjusted net loss of 1,470,000.00 for the February. This represent a an annualized improvement of approximately 120,000.00. Non GAAP adjusted EBITDA had a loss of 1,440,000.00 for the February, reflecting a sequential increase of approximately 7,800,000.0 in earning when compared to a loss of 9,200,000.0 for the February. This period over period increase in earning is primarily attributed to the company overall cost cutting effort made in general and administrative, marketing, and technology expenses and represents an annualized improvement to adjusted EBITDA of approximately $31,000,000 Total pro form a revenue for the full year 2024 was $16,700,000 compared to the 4,600,000 in the prior year, reflecting a sequential increase of approximately $12,100,000 in earnings. Gross profit for the full year 2024 was $13,600,000 compared to $3,100,000 in 2023.

[Alvin Yip, CFO at Banzai International]

Gross margin was flat at 81% in the full year 2024 compared to 68% in 2023, reflecting a sequential increase of approximately 13%. Cash and cash equivalents totaled 1,100,000.0 on 12/31/2024 as compared to 4,300,000.0 on 09/30/2024 and 2 point 1,000,000 on 12/31/2023. I will turn the call back to Joe for some closing remarks. Thank you, everyone.

[Joe Davy, Founder & CEO at Banzai International]

Thank you, Alvin. Hopefully, everybody can see why we were, so excited to share, this update with you all. Before I close, I'd like to review our 2025 forecast for our consolidated company to include OpenReal and Videlo. I'll, give the, disclaimer that this is a forecast, and, you know, we we like to be transparent here. But, as was said at the beginning of the call, you know, this, this is a forward looking, this is a forward looking projection and, you know, may may change, and and, we're, you know, not required to disclose, those changes if they occur.

[Joe Davy, Founder & CEO at Banzai International]

But, as you all know, we, you know, have taken the approach of, trying to be transparent to the market, and so that's why we wanted to share this today. Our pro form a revenue for the full year of 2025 is projected to be just shy of $20,000,000, which would represent a 19% increase from full year 2024 actual revenue. Our pro form a net income is projected to be $1,400,000 in 2025, reflecting our transition to be a profitable company on a GAAP basis, which is something that we're very excited about. In summary, with a fortified balance sheet, a massive customer base, and an expanding product suite, we're making steady progress towards profitability and long term growth. Something I would like to note is our minimal exposure to geopolitical and tariff risk that is impacting many global businesses at the moment.

[Joe Davy, Founder & CEO at Banzai International]

We have an asset light scalable business model, and as such, we're projecting, substantial revenue growth in 2025. Apologies for that. We are consistently evaluating potential value added acquisition opportunities that can further accelerate our growth. We're well positioned for success as we execute on our strategic initiatives, and I look forward to providing additional updates in the months to come as we work on building long term value for our shareholders. Thank you, everyone, for attending, and I would now like to answer your questions.

[Joe Davy, Founder & CEO at Banzai International]

Operator?

[Operator]

Currently, do not see any in the chat. Okay. We got one coming in. We've got a couple coming in. What are your top strategic priorities for 2025 to maximize the value of OpenReal, Fidelo, and Act On, And how will these drive long term shareholder value?

[Operator]

How do you see Banzai's expanded portfolio positioning the company against competitors in the marketing technology space?

[Joe Davy, Founder & CEO at Banzai International]

Okay. First of all, thank you for the question. Our our number one strategic priority is, to integrate these products so, they work seamlessly together. So a customer that uses, one of those, products can, utilize any of the other ones. And, you know, we think that this is, basically, you know, the way the way I think about this is really simple.

[Joe Davy, Founder & CEO at Banzai International]

Right? Customer comes to us on one of these products. They typically have a a very specific problem to solve. And, know, customers in the marketing world, they're not looking for tools. They're looking for marketing enablement.

[Joe Davy, Founder & CEO at Banzai International]

So they're looking to solve a problem within their business, and they're they're looking, for a specific solution to that problem. Over time, though, those customers tend to have additional problems. And so the the the analogy I love here is get a customer in one door just like you're at a stadium. You know? Get a customer in in one of the entrances.

[Joe Davy, Founder & CEO at Banzai International]

But once they're in the stadium, you can sell them the same, you know, beer and hot dogs and pizza everywhere in the stadium. And that's basically, you know, our our our approach to integrating these products. We want the products to work together smoothly so that it's really easy for customers to go buy that extra hot dog or go buy that extra beer. And, so that that that's really what our focus is right now technically. And then I would say from a business standpoint, this is really about operationally getting those teams to work together well.

[Joe Davy, Founder & CEO at Banzai International]

In other words, you know, integrating the different product teams, integrating the different, you know, customer success teams, sales teams, marketing teams, so that we can kinda go to market with a single voice so we can upsell customers, in a cohesive way. So, we think that a lot of the growth, and the value of this strategy really comes from customer expansion and upsell over time. And, so I think the the key is making the products work well together and then making our teams work well together to go take those products to our customer base. So that's, that's a high level. I hope that answers your question.

[Joe Davy, Founder & CEO at Banzai International]

Let's see. I'm just gonna go through these, kind of one by one. So this question, when would twenty twenty five q one results come out? Right now, we're expecting q one results to be out on, 05/15/2025.

[Alvin Yip, CFO at Banzai International]

Correct.

[Joe Davy, Founder & CEO at Banzai International]

This question from Sandra Gale. Are you closing on Acton soon? You know, I I can tell you, Sandra, we're we're actively working on this. Obviously, can't give a a specific date as to, when that will be complete, but I can tell you that we're, making meaningful progress towards that, and we will keep you updated. Let's see.

[Joe Davy, Founder & CEO at Banzai International]

I've I've got a question here about, when do we expect the value of the stock will return to the old value? And I think that's a really great question. And, you know, I think, that there have been a lot of factors impacting the stock price, in, you know, the last, few months. I would say probably the number one factor impacting the stock price in the last month and a half has been just the general kind of market chaos that has impacted everyone. Hopefully, what we'll see is, you know, as people start to realize, investors start to realize that, you know, our business is not really impacted by any of these, potential tariffs, that we have really minimal exposure to that.

[Joe Davy, Founder & CEO at Banzai International]

And also that I think, we potentially stand to do really well, in an environment where customers are trying to do more with less, trying to get more efficiency out of limited marketing dollars, trying to fight for every dollar of revenue. I think, you know, a lot of customers turn to, better marketing technology to, enable that. And so, you know, our our hope is that, the market will kinda recognize the value that we've already created through these acquisitions. I think that we'll start to reflect, the benefit of some of these acquisitions more in our GAAP financials starting in q one. We reflected it just in a very, very small way in q four, but I think we'll have a a more full recognition of that in q one.

[Joe Davy, Founder & CEO at Banzai International]

And then probably an even more full recognition of it, starting in q two. And so I think we'll start to see that phase in, and, hopefully, that will, be be viewed positively by the market. So, you know, our our view is that, we're we're working really hard to to get the stock price back up, to the levels that it's been at. And, you know, we we, certainly doing everything that we can to make that happen. Thank you for the question.

[Joe Davy, Founder & CEO at Banzai International]

I always appreciate the tough ones. Let's see. Here's a question. How's the market traction been for Reach two point o? Can you share metrics around usage growth and new customers added for Reach two point o since launch?

[Joe Davy, Founder & CEO at Banzai International]

Can you comment on the acquisition pipeline? Are there any plans to continue? So this is I'll just go ahead and say this is about five questions in one, but I'll just try to run through them pretty quickly. So, first of all, market traction for Reach two point o has has been good. These customers tend to be larger customers, than the average, you know, Demio or Create Studio customer.

[Joe Davy, Founder & CEO at Banzai International]

And so there's fewer of them, but they're bigger. We've also seen some cross sales. We've seen existing customers utilizing Demio, for example, starting to utilize Reach, two point o. So that's been, really great. I don't think we've shared any specific metrics, around the breakout of customers or anything like that, but I can say, you know, we've been relatively pleased, with the early results.

[Joe Davy, Founder & CEO at Banzai International]

I think, you know, the product is working really well for a number of the customers that are using it. And that's really the bellwether for any new product coming to the market is, you know, can you get customers that really love the product? In terms of the acquisition pipeline, look. I'll what I what I'll say here is we're very focused on, Act On right now, and that's our number one priority. Obviously, that's a huge transformative acquisition for the business.

[Joe Davy, Founder & CEO at Banzai International]

I can, I I can't comment on any specific companies that we're looking at or talking to, but I can say, you know, we're we're receiving new, you know, opportunities, coming into the pipeline, almost every day, at least every week? It's definitely a focus of ours, and we're seeing some really attractive assets on the market right now. So I I think there's gonna be, hopefully, some interesting stuff that occurs there over the next over the rest of this year, 2025. Plan is to continue with the acquisition strategy in 2025. Obviously, we are focused on organic growth as well.

[Joe Davy, Founder & CEO at Banzai International]

So we got an operating business that we're growing organically, adding new customers, cross selling, and then we're also looking at things that are, you know, value added to our customer base. One of the key things that we're always looking at is basically, do we think this is gonna create create shareholder value or not? So, you know, I've heard comments from people about, you know, dilution and things like that. You know, we're we're always focused on, anytime we we buy an asset, we think we're getting more than we're paying for it. So we think that, you know, it's a one plus one equals three.

[Joe Davy, Founder & CEO at Banzai International]

And, you know, and then our and then our job is to run it well. In terms of, q four net revenue retention, I can say, I don't think we disclosed a specific number, but I can say that q four net revenue retention hit a historic high. So we saw a very strong, retention and expansion in q four compared to prior periods. And in terms of traction and specific verticals, I would say, you know, the ones that, that stand out to me as being the interesting opportunities right now, are things like health care, financial services, insurance. We're seeing a lot of customer inbound, a lot of traction in those areas.

[Joe Davy, Founder & CEO at Banzai International]

We're also seeing, opportunities with, things in the data center space, you know, the cloud space. So, I I don't think we're you know, we're we're not a business that's really built on going after any specific vertical. We're a very diversified business, but I think there's a lot of opportunities in those areas. And we are looking at, are there specific things that we can go after in a specific vertical, you know, specific use case for that vertical that we can build and we can own and be better than anybody else in that space. So that's a big focus of ours right now.

[Joe Davy, Founder & CEO at Banzai International]

Thank you for the questions. Okay. This is a good one. How's the integration with the new acquisitions going? I'll I'll say I've already addressed the Acton question, so I won't touch that one again.

[Joe Davy, Founder & CEO at Banzai International]

But I'll say the the integrations is going really fabulously in my opinion. I think the teams are getting along really well. Been really impressed by how quickly everyone has started thinking of themselves as part of team Bonsai. We've already got customer cross sales with every product, I think. Maybe there's one that's that's pending right now, on a kinda enterprise deal.

[Joe Davy, Founder & CEO at Banzai International]

So, we're we've already got a big pipeline for cross sales all the products. Starting to see the first deals close. Product integrations are in the works. You know, product management is starting to think about, this as a single, you know, video business unit, and that's going really well. And I think, with with Acton, we're thinking about that as a kind of a separate business unit, a marketing automation business unit that will expand the capabilities, beyond, beyond that, when it closes.

[Joe Davy, Founder & CEO at Banzai International]

So that's really exciting. Thanks for the question. Let's see. Edward, asked I think we've kind of already touched on this, but I think one important question here is, will you need to focus on integrations of the three recent acquisitions first before you pursue new ones? I'll say we're first of all, we're like I said, we're we're actively working on getting Acton closed.

[Joe Davy, Founder & CEO at Banzai International]

But, I I think the way that the integrations have gone, we've been really, really pleased with them. And we don't foresee, integration being a major barrier to doing additional acquisitions. I think we've got a great playbook for this. We've done a number of these now. We're starting to build a muscle around this.

[Joe Davy, Founder & CEO at Banzai International]

And, I think we could easily go do a couple more, you know, this year and continue to to see some of that scale. And, again, hopefully, find some of these, opportunities that are, you know, profitable, growing, have great products, sticky customers. And, you know, the number one thing that we look at is, does this solve a new problem for our customer base? So, that's that's, definitely still a focus for us. Thank you for the question.

[Joe Davy, Founder & CEO at Banzai International]

Okay. This question. How's the launch of Curate and Reach two point o performed? I I mentioned a little bit about Reach two point o. I'll say this this is asking about Curate as well.

[Joe Davy, Founder & CEO at Banzai International]

I'll say I I I believe we've got, something like, I I mean, Curate, first of all, launched, I think, just just at the end of q three or the beginning of q four. So this is a pretty new product for us. I I I think I wanna say this launched in in October, November. So this is pretty new for us. But I think we've already got 12 or 13 workspaces live on this now.

[Joe Davy, Founder & CEO at Banzai International]

And we're so we're starting to see a lot of traction with Curate. We've made a lot of improvements to the product based on initial customer feedback and stuff like that. Starting to get customers live on it. So, I think it's going really well. And, I think, you know, our sales team is continuing to field interest around it.

[Joe Davy, Founder & CEO at Banzai International]

One thing that's been really interesting is we've seen a lot of customers that that, you know, wanna buy several of these products together. So we've had a lot of opportunities come up for things like, you know, Demio, Reach, and Curate as a single bundle. And so I think that's gonna be really interesting. So thank you for the thank you for the question. Patrick, says for the coming year, adding the first quarter acquisition of Acton, I see revenues of $50,000,000 and share count of 50,000,000.

[Joe Davy, Founder & CEO at Banzai International]

Can you please comment on this? I would say, look, directionally, that's probably about right. I think that, you can work backwards in terms of your math, to figure out what an appropriate, you know, share price would be, under that. But, you know, I think it's it's probably north of where it is right now. You know, we've seen companies like Adobe that are trading for I I wanna say the last I looked at it was trading for about a 9.8 times revenue multiple.

[Joe Davy, Founder & CEO at Banzai International]

So there are definitely businesses in this space with a very attractive revenue multiples, and, hopefully, we'll start to realize, a multiple more in that range. I think we shared earlier that, you know, we're we we see, gross margin definitely improving this year. I would say gross margin will probably be north of 80%, for the year and, you know, or at least in that range. And we are, looking at, positive, net income for this year, hopefully. And I think Acton is accretive to all of those things.

[Joe Davy, Founder & CEO at Banzai International]

So, you know, it will add to revenue. It will add to net income, and it will probably contribute positively to gross margin as well, once that closes. So thank you for the question, Patrick. Do I think the stock price will go up with the 2024 earnings? Well, I certainly hope so.

[Joe Davy, Founder & CEO at Banzai International]

It it it certainly looks like it has, today, so that's positive. Hopefully, hopefully, it continues to go up. Thank you for the question. I certainly think, you know, pretty much pretty much everything in, our our q four in 2024. You know, there's there's a lot of positive news here to digest, for the market.

[Joe Davy, Founder & CEO at Banzai International]

But I think we've made huge progress on a number of different fronts, cleaning up the balance sheet, you know, improving the, you know, improving the efficiency of the business, growing the top line, all of those things. You know, at the end of the day, I don't control the stock price, unfortunately. I wish I did. But, you know, I can control do we run a good business, and do we build a good business over time. So, you know, myself and the rest of the team, we're really just focused on every day trying to get more efficiency, get the balance sheet stronger, you know, look at interesting businesses that we think, strengthen our overall business.

[Joe Davy, Founder & CEO at Banzai International]

So that's that's that's our goal. So, you know, I believe over time, that will, that will, you know, build a stronger business, and and, hopefully, that will be reflected in our stock price. Thank you for the question. Okay. Here's a question.

[Joe Davy, Founder & CEO at Banzai International]

What have you seen in terms of web traffic and sales for q one twenty twenty five? I can say, you know, first of all, we got a lot of websites, because each of our products tends to sell through its own, through its own website. So we have a website for OpenReal, a website for Create Studio, a website for Demio. So, you know, I don't know that I can comment specifically on web traffic, but, what I can comment on is I think we saw, really strong, efficiency numbers in q one. We launched a new website, for the OpenReal business.

[Joe Davy, Founder & CEO at Banzai International]

That's gone really well since launch. We launched a new version of our Create Studio product, Create Studio four. That had a tremendous, sales response, and we continue to see, just a steady increase in efficiency of ROAS and, you know, sales efficiency for that product. So, I I think I think q one was was generally very positive. We're looking forward to sharing the q one numbers in about a month.

[Joe Davy, Founder & CEO at Banzai International]

So, thank you for the question. So the question is for Acton, would you expect that to be in q one? If it closes sooner, it would be on q two. So, for the way GAAP, accounting works is the the financials of the, acquired company are only integrated in post closing. So, you know, our q four only included just a sliver of, OpenReal because it was closed, I think, thirteen days prior to the end of the quarter.

[Joe Davy, Founder & CEO at Banzai International]

So we're expecting those results will be realized fully in, q one. And then in q one, we closed on Vidello, so we're gonna recognize, two months of that in q one. If we close Acton like, let's say we close Acton tomorrow, not saying that's gonna happen, but I'm saying it let's say we did, then, it would only be from April 16 onward that we would include it. So that would that would be included in q two. Just to clarify, that's more of a GAAP accounting issue, but but, I I think, you know, we're gonna see, the the acquisition, financials integrated, more in q one, probably more in q two, and hopefully, onward from there.

[Joe Davy, Founder & CEO at Banzai International]

Thank you for the question. Let's see. This is a great question. Have you noticed any big change with lead times for sales cycle signing new customers? CTOs marketing departments more cautious about entering, acquiring, renewing new enterprise software?

[Joe Davy, Founder & CEO at Banzai International]

I I will say, I'll just give you a couple anecdotes here. Our our velocity right now is well, well, well below, our target, which is a good thing. Right? Velocity means how long does it take us to to close a customer. So, we're we're beating that, velocity target, on every product line, I think, right now.

[Joe Davy, Founder & CEO at Banzai International]

I'll also say, you know, we're not seeing, I don't think we're seeing, customers being more cautious. I actually think we're seeing the opposite. We're seeing customers that are locking in longer term contracts to secure larger discounts. So I can say, you know, we just signed a five year contract a couple of weeks ago. I I don't think I can disclose what customer it was with right now, but, we signed a a five year contract, with a customer that's a meaningful, you know, meaningful revenue to the company.

[Joe Davy, Founder & CEO at Banzai International]

And, you know, they were able to lock in a a discount over that period of time, which is good for them. And we were able to lock that customer in for five years, which is obviously good for us. So, we've signed a number of these multiyear renewals, in the last ninety days, and I think we're looking to do more of that. And, in a lot of cases, customers are looking to lock in, longer term cost savings and, use that as an opportunity. So I think when you got a mission critical product, you know, customers aren't aren't you know, it it's not as much of a question of of the renewal or not.

[Joe Davy, Founder & CEO at Banzai International]

It's a lot a lot of times, it's a question of, you know, what's the, what's the structure that's gonna be most efficient for them in terms of value. And, so we can do something where we get the customer a little more value by offering them a multiyear contract. Look. I think that benefits both us us and the customer, so, we we like those situations. Thank you for the question.

[Joe Davy, Founder & CEO at Banzai International]

Why do all these acquisitions not translate into the share price increasing? I mean, that's a fantastic question. Again, I I wish I, I wish I knew, you know, why the share price, you know, the market has not responded, better to a lot of the news, that we've put out. I think the news we put out is phenomenal. I I think, you know, you can you can go to PitchBook, and you can look up, you know, what companies are are transacting at.

[Joe Davy, Founder & CEO at Banzai International]

But I think the last number that I saw was the average acquisition was something like 4.8 x next twelve month revenue. And, you know, so far, next twelve month revenue is $20,000,000. You know, you could infer that, you know, that would put us somewhere in the 90 to a hundred million dollar range in terms of, you know, what somebody would be willing to pay for the company today. Now, you know, I'm not saying that's the case. I'm not saying that we're looking to sell the company.

[Joe Davy, Founder & CEO at Banzai International]

We're not, because I think we have a lot more value that we can create here. But, I I do think the share price right now is silly. So, you know, hopefully, the market will start to recognize and start to price in some of the, you know, some of the the huge milestones that we've achieved, in the last ninety days. And, you know, frankly, that's one reason that we're really excited to get this report out, because I think putting out 2024, helps. I think putting out q one will help.

[Joe Davy, Founder & CEO at Banzai International]

But, you know, really, I think, hopefully, the market will, will continue to respond. So, thank you for the question. Here's a question from Van. Is Bonsai open to the possibility of being acquired by some large cap MarTech company, and what's your opinion on the likelihood of that happening? You also mentioned hard work on showing profitability.

[Joe Davy, Founder & CEO at Banzai International]

Is it realistic for investors to expect that? And if so, when do you think that you could deliver on that promise? Thanks. This is a great question, Van. Thank you.

[Joe Davy, Founder & CEO at Banzai International]

So let me start with the first one. I I kind of just addressed this, but I, frankly, you know, I would say we have been approached by a couple of folks. I'm not saying whether, you know, anything has come of that. We very casual conversations. But, I would say, definitely, we are definitely, our view is that there's more value still for us to create, in this business.

[Joe Davy, Founder & CEO at Banzai International]

And so, you know, I think we're we're very, very focused on continuing to scale the business up, continuing to execute. I think this business is even more valuable when we get to a hundred or 200 or 500,000,000 in revenue. And so, you know, right now, our heads are are down. We're very focused on trying to to get to those milestones, very focused on trying to close Acton, very focused on trying to look at the, you know, the opportunities beyond that, continue to manage the business well, continue to grow organically, all of that. So, you know, right now, we're just very focused on, on on on our knitting.

[Joe Davy, Founder & CEO at Banzai International]

And, I think, you know, there there may be opportunistic things that happen in the future, but can't really comment on that, very specifically right now. But, but definitely appreciate the question, and, you know, I think, we'll we'll see what happens. If we create a really valuable business, I think, you know, as a general heuristic I've always had in my life, I think you create a valuable business. There's people that wanna own that business. So I'll just kinda leave that at that.

[Joe Davy, Founder & CEO at Banzai International]

Your, your second question here, is about profitability. I think, as as we said earlier, we are, forecasting to show profitability in 2025. So, I think, I can't comment on exactly when that's gonna happen, but, I think, I'll just say, you know, we think that we're going to reflect a lot of the benefit of the, acquisitions and other things that we've done strategically, the, you know, debt repayments, things like that. A lot of that will be reflected in in q one. I think it'll be fully you know, more fully reflected in q two.

[Joe Davy, Founder & CEO at Banzai International]

So, hopefully, as those things start to more fully reflect, the business will get more profitable. And and, you know, I I think that, I think that, you know, people will hopefully be pleased with the financial results we deliver this year. But I think at the at the end of the day, you know, profitability is the result of having, a great business that's operated efficiently. So having great products, great customer relationships, you know, great processes, great, you know, discipline. And so that's that's really where our heads at right now, is working on that.

[Joe Davy, Founder & CEO at Banzai International]

And I believe that that will show up in in terms of profitability over time, in the business. So, thanks for the question. Finally, question here from Mohammed. How do you react on tariffs? Well, look.

[Joe Davy, Founder & CEO at Banzai International]

I'll say just, objectively, I I personally I'm a fan of free trade. I I don't think that tariffs, are good for free trade. I'm a I'm a, you know, fan of entrepreneurship. I'm a fan of, innovation. I'm a fan of people being able to, you know, sell their products to customers that find them most valuable.

[Joe Davy, Founder & CEO at Banzai International]

So, you know, I'm a fan of open markets. So in in general, I I'm not a huge fan of tariffs. I also studied economics, in in college, so, you know, I I think you're hard pressed to find a lot of economists who are big fans of tariffs. All that being said, I I don't think the tariffs really impact our business. And as I said earlier, I think they actually you know, there's a potential that they could create a positive tailwind for us, you know, if customers decide that they need to get more efficiency in their marketing, you know, if they decide that they need to leverage more AI, that they need to leverage more automation, to gain that efficiency, look, I think that could benefit us potentially.

[Joe Davy, Founder & CEO at Banzai International]

Our products are not really the kind of products that are subject to tariffs. So and, you know, most of our customers are, in The US, anyways. So I think it's it's not really probably a huge concern for us. I don't think, you know, we we don't really right now, the tariffs seem like they're mainly gonna end up being between The US and China as things stand today, although, you know, things have been changing fast, so it's a dynamic environment. But, you know, the Chinese market is not an important market for us, as a business as it stands today.

[Joe Davy, Founder & CEO at Banzai International]

And so, you know, I I don't really see the tariffs impacting our business, adversely, at all. But, I appreciate, the question, and and, definitely, it's something that we're we're getting asked about from time to time because, definitely, people are are curious about it, and and they're wondering what's going on. So, thank you for asking. Okay. I hope that was helpful.

[Joe Davy, Founder & CEO at Banzai International]

I believe that's all the questions. So I will just say thank you all for joining the conference call today. Look forward to updating you on our ongoing achievements, innovations, and growth. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group, who would be more than happy to assist. And with that and you can see their contact information on the slide that's on the screen here.

[Joe Davy, Founder & CEO at Banzai International]

And by the way, this this scene is a scene that's available in Create Studio. So if you wanna go build three d videos for your own business, go check out Create Studio, createstudio.com. Okay? That's my last shameless plug. Wouldn't be a good CEO if I wasn't selling you guys a little bit, taking every opportunity I can to sell software.

[Joe Davy, Founder & CEO at Banzai International]

So, thanks so much for joining. We appreciate it, and, we will will look forward to the next call.

[Alvin Yip, CFO at Banzai International]

Thank you, Joe. Thanks, everyone.

Participants

Executives

• Joe Davy, Founder & CEO
• Alvin Yip, CFO