Banzai International, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing significant challenges in revenue generation and increased losses compared to the previous fiscal period. The company generated revenue of $1.1 million for the third quarter of 2024, a slight decrease from $1.1 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was approximately $3.2 million, down 7.2% from $3.5 million in the prior year. The decline was attributed primarily to reduced revenue from its Demio product, which fell by approximately $203,000.
Gross profit for the nine-month period was approximately $2.2 million, a decrease of 7.1% from $2.3 million in 2023. Operating expenses surged to approximately $11.7 million, an increase of 31.1% from $8.9 million in the previous year, driven by higher salaries, marketing expenses, and professional fees. Consequently, Banzai reported an operating loss of approximately $9.5 million for the nine months ended September 30, 2024, compared to a loss of $6.6 million in the same period of 2023.
The net loss for the third quarter of 2024 was approximately $15.4 million, a stark increase from $782,000 in the third quarter of 2023. For the nine months ended September 30, 2024, the net loss reached approximately $23.7 million, up from $8.0 million in the prior year, marking a 194.5% increase. The accumulated deficit as of September 30, 2024, stood at approximately $70.4 million, up from $46.8 million at the end of 2023.
In terms of strategic developments, Banzai completed a merger with 7GC & Co. Holdings Inc. on December 14, 2023, which resulted in Banzai becoming a wholly-owned subsidiary of 7GC. A reverse stock split at a ratio of 1-for-50 was approved on August 29, 2024, effective September 19, 2024. Additionally, the company undertook a significant reduction in workforce, laying off 24 employees, approximately 34% of its full-time staff, with expected annual savings of $1.3 million starting in Q4 2024.
Banzai's cash position improved, with approximately $4.3 million in cash as of September 30, 2024, compared to $2.1 million at the end of 2023. The company raised approximately $7.5 million through financing activities during the nine months ended September 30, 2024, primarily from convertible debt and common stock issuances. However, Banzai continues to face substantial doubt about its ability to continue as a going concern due to insufficient cash flows and liquidity challenges.
About Banzai International, Inc.
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