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Banzai Reports Fourth Quarter And Full Year 2024 Financial Results
| Date : | Tuesday, April 15, 2025 |
| Time: | 5:30 p.m. Eastern Time (2:30 p.m. Pacific Time) |
| Webcast Registration : | |
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 U.S. GAAP, we believe that Adjusted EBITDA, a non-GAAP measure as defined below, is useful in evaluating our operational performance distinct and apart from certain irregular, non-cash, and non-operational expenses. We use this information for ongoing evaluation of operations and for internal planning purposes. We believe that non- GAAP financial information, when taken collectively with results under GAAP, may be helpful to investors in assessing our operating performance and comparing our performance with competitors and other comparable companies.
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 December 31, | Year Ended December 31, | 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 | ||||||||||||
| Goodwill impairment | 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, New York Life, Thermo Fisher Scientific, Thinkific, and ActiveCampaign, among thousands of others. Learn more at . For investors, please visit .
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 Banzai International, Inc.'s (the“Company's”): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company's industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company's ability to execute on its strategy. More detailed information about risk factors can be found in the Company's Annual Report on Form 10-K and the Company's Quarterly Reports on Form 10-Q under the heading“Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release.
Investor Relations
Chris Tyson
Executive Vice President
MZ Group - MZ North America
949-491-8235
...
Media
Rachel Meyrowitz
Director, Demand Generation, Banzai
...
| BANZAI INTERNATIONAL, INC. Consolidated Balance Sheets | ||||||||
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 1,087,497 | $ | 2,093,718 | ||||
| Accounts receivable, net of allowance for credit losses of $24,210 and $5,748, respectively | 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 | - | ||||||
| Goodwill | 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, $0.0001 par value, 275,000,000 (250,000,000 Class A and 25,000,000 Class B) shares authorized and 8,195,163 (5,884,029 Class A and 2,311,134 Class B) and 2,585,297 (274,163 Class A and 2,311,134 Class B) issued and outstanding at December 31, 2024 and December 31, 2023, respectively | 800 | 259 | ||||||
| Preferred stock, $0.0001 par value, 75,000,000 shares authorized, 1 and 0 shares issued and outstanding at December 31, 2024 and December 31, 2023 | - | - | ||||||
| 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 |
| BANZAI INTERNATIONAL, INC. Consolidated Statements of Operations | ||||||||
| For the Years Ended December 31, | ||||||||
| 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 | - | ||||||
| Goodwill impairment | 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 |
| BANZAI INTERNATIONAL, INC. Consolidated Statements of Cash Flows | ||||||||
| For the Years Ended December 31, | ||||||||
| 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 |
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