Banzai International Reports 213.2% Revenue Growth to $3.4 Million, Net Loss Improves

Banzai International, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending March 31, 2025. The company generated revenue of approximately $3.4 million, a substantial increase of 213.2% compared to $1.1 million in the same period last year. This growth is attributed primarily to the contributions from recent acquisitions, including OpenReel and Vidello, which accounted for approximately $1.4 million and $0.7 million in revenue, respectively. Despite this revenue growth, Banzai reported a net loss of approximately $3.6 million, a slight improvement from the $4.3 million loss recorded in the prior year.

The company's operating expenses also rose significantly, totaling approximately $7.7 million for the quarter, up 87.3% from $4.1 million in the previous year. This increase was driven by the operational costs associated with the newly acquired companies, as well as higher salaries, marketing expenses, and professional fees. The gross profit for the quarter was approximately $2.8 million, reflecting a gross margin of 82%, which is a notable improvement from the previous year's gross profit of $0.7 million.

Banzai's balance sheet showed total assets of approximately $33.7 million as of March 31, 2025, up from $25.7 million at the end of 2024. The increase in assets was primarily due to the acquisition of intangible assets and goodwill from the Vidello merger, which added approximately $3 million in goodwill. The company’s liabilities also increased, totaling approximately $30.7 million, with current liabilities accounting for a significant portion. The company reported an accumulated deficit of approximately $81.9 million, indicating ongoing challenges in achieving profitability.

In terms of operational metrics, Banzai's customer base grew to over 3,070 customers, with a focus on increasing its mid-market and enterprise clientele. The company reported a net revenue retention rate of 98.7% for its Demio product, indicating strong customer loyalty and retention. However, the customer acquisition cost (CAC) increased to $2,258, reflecting the higher expenses associated with acquiring new customers.

Looking ahead, Banzai plans to continue its growth strategy through further acquisitions and product enhancements. The company is actively seeking additional funding to support its operations and expansion plans, particularly in light of its recent merger with Act-On Software, which is expected to enhance its market position. However, the company also noted substantial doubt about its ability to continue as a going concern without securing additional financing, given its history of losses and current cash position of approximately $0.8 million.