Revenue of $3.4 Million for Q1 2025, Representing 213% Growth from Q1 2024

Gross Profit of $2.8 Million for Q1 2025, Representing 297% Growth from Q1 2024; Gross Margin Expanded to 82.1% in Q1 2025 from 64.7% in Q1 2024

Q1 2025 Net Loss Improved to ($3.6) Million from ($7.9) Million in Q4 2024, Positioning the Company to Cash Break-Even Operations in FY2025

Management to Host First Quarter 2025 Results Conference Call Today, Thursday, May 15, 2025 at 5:45 p.m. Eastern Time

SEATTLE, May 15, 2025 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ:BNZI) ("Banzai" or the "Company"), a leading marketing technology company that provides essential marketing and sales solutions, today reported financial results for the first quarter ended March 31, 2025.

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") on January 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 ending December 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 of March 31, 2025, pursuant to the $24.8 million debt payoff and restructuring agreements announced on September 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 Joe Davy, Founder and CEO of Banzai. "Revenue was $3.3 million for the first quarter of 2025, representing a 207% increase from the prior year from continued strong performance for our products. We closed the acquisition of Vidello in February, and progress continued toward closing the acquisition of Act-On Software, which is projected to increase revenue by $27 million for the full year 2025 on a pro-forma basis when completed, which remains subject to the satisfaction or waiver of closing conditions and therefore there is no guarantee it will be completed or provide such revenue.

"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 $5.1 million year over year improvement in stockholders' equity to a positive $2.4 million as of March 31, 2025. We also implemented a strategic initiative that we expect will enable us to significantly improve net income, substantially extend our cash runway, and invest in growth. We are making significant progress toward these goals and overall improvement in net income is expected to be approximately $13.5 million annually when fully implemented, while maintaining our growth outlook.

"In the first quarter Banzai secured expanded agreements with several prominent enterprises including RBC Capital Markets for our OpenReel solution, further cementing OpenReels position as a leading digital video creation platform for enterprise marketing teams. These agreements further validate our expansion strategy in the enterprise and mid-market. We are seeing solid traction in the financial sector, where the OpenReel Creator tool gives global financial firms the ability to offer standardized branded video with personalization at scale for their wealth managers, partners, and other stakeholders.

"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 MarTech solutions that is driving strong growth with its marketing results. We are focused on adding innovative new products and capabilities that will provide compelling solutions for our clients and further our market reach. As we continue to invest in our software platform, sales and marketing, product development, acquisition strategy and other organic growth initiatives, we are managing costs efficiently. We are also continuing to strengthen our capital structure and balance sheet, to deliver a material benefit to both net income and shareholders' equity. We look forward to additional updates on our anticipated milestones in the weeks and months to come," concluded Davy.

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 March 31, 2025, ARR increased to $14.9 million, representing a 268% annualized ARR growth rate.

Total revenue for the three months ended March 31, 2025, was $3.4 million, a sequential increase of 160% from the three months ended December 31, 2024, and an increase of 213% compared to the prior year quarter.

Total cost of revenue for the three months ended March 31, 2025 was $0.6 million, compared to $0.4 million in the prior year quarter, an increase of 59%. The increase was proportional to the revenue for the corresponding period.

Gross profit for the three months ended March 31, 2025, was $2.8 million, compared to $0.7 million in the prior year quarter. Gross margin was 82.1% in the first quarter of 2025, compared to 64.7% in the first quarter of 2024.

Total operating expenses for the three months ended March 31, 2025, were $7.7 million, compared to $4.1 million in the prior year quarter. The increase in operating expenses were primarily due to the additions of OpenReel and Vidello and overall operating expenses.

Net loss for the three months ended March 31, 2025, was $3.6 million, compared to $4.3 million in the prior year quarter.

Adjusted EBITDA for the three months ended March 31, 2025, was ($1.7) million, compared to Adjusted EBITDA of ($1.5) million for the prior year quarter. This period-over-period decrease is primarily attributable to increased gain on extinguishments of liabilities offset by loss on issuance of term notes and increased transaction related expenses.

Net cash used in operating activities for the three months ended March 31, 2025, was $5.0 million, compared to $2.1 million for the three months ended March 31, 2024.

Cash totaled $0.8 million as of March 31, 2025, compared to $1.1 million as of December 31, 2024.

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 Joe Davy and Interim CFO Alvin Yip will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company's website here.

To access the call, please use the following information:

Date:	Thursday, May 15, 2025
Time:	5:45 p.m. Eastern Time (2:45 p.m. Pacific 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 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

	Three Months Ended *March 31,*			Three Months Ended *March 31,*			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, New York Life, Thermo Fisher Scientific, Thinkific, and ActiveCampaign, among thousands of others. Learn more at www.banzai.io. For investors, please visit https://ir.banzai.io.

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

BNZI@mzgroup.us

www.mzgroup.us

Media

Nancy Norton

Chief Legal Officer, Banzai

media@banzai.io

BANZAI INTERNATIONAL, INC. Consolidated Balance Sheets

	March 31, 2025			December 31, 2024
	(Unaudited)
ASSETS
Current assets:
Cash	$	780,764		$	1,087,497
Accounts receivable, net of allowance for credit losses of $14,503 and $24,210, respectively		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
Goodwill		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, $0.0001 par value, 275,000,000 (250,000,000 Class A and 25,000,000 Class B) shares authorized and 14,686,775 (12,375,641 Class A and 2,311,134 Class B) and 8,195,163 (5,884,029 Class A and 2,311,134 Class B) issued and outstanding at March 31, 2025 and December 31, 2024, respectively		1,450			800
Preferred stock, $0.0001 par value, 75,000,000 shares authorized, 1 and 1 shares issued and outstanding at March 31, 2025 and December 31, 2024		—			—
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

BANZAI INTERNATIONAL, INC. Unaudited Condensed Consolidated Statements of Operations

	For the Three Months Ended March 31,
	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

BANZAI INTERNATIONAL, INC. Unaudited Condensed Consolidated Statements of Cash Flows

	For the Three Months Ended March 31,
	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

Banzai Reports First Quarter 2025 Financial Results