Banzai International (NasdaqCM:BNZI) Q4 2025 Earnings call March 31, 2026 04:30 PM ET Company ParticipantsDean Ditto - CFOJoe Davy - Co-Founder, Chairman, and CEODean DittoJoe Davy.Joe DavyThank you, Dean. Good afternoon, everyone. I'm pleased to welcome you to Banzai's fourth quarter and full year 2025 financial results conference call. I'll begin with a brief overview of our business and market opportunity before delving into financial and operational highlights. I'll then touch on some product and strate ...

Banzai International (NasdaqCM:BNZI) Q4 2025 Earnings call March 31, 2026 04:30 PM ET Company ParticipantsDean Ditto - CFOJoe Davy - Co-Founder, Chairman, and CEOOperatorJoe Davy.Joe DavyThank you, Dean. Good afternoon, everyone. I'm pleased to welcome you to Banzai's fourth quarter and full year 2025 financial results conference call. I'll begin with a brief overview of our business and market opportunity before delving into financial and operational highlights. I'll then touch on some product and strategy ...

Banzai International (NasdaqCM:BNZI) Q4 2025 Earnings call March 31, 2026 04:30 PM ET Speaker0Joe Davy.Speaker1Thank you, Dean. Good afternoon, everyone. I'm pleased to welcome you to Banzai's fourth quarter and full year 2025 financial results conference call. I'll begin with a brief overview of our business and market opportunity before delving into financial and operational highlights. I'll then touch on some product and strategy updates. Our CFO, Dean Ditto, will then review our fourth quarter and full ...

Financial Data and Key Metrics Changes - In Q3 2025, revenues increased to $363.7 million, up nearly 3% from $353.6 million in the prior year [16] - Adjusted EBITDA for Q3 2025 was $124.1 million, a slight decline of less than 1% from $124.7 million year-over-year [17] - Adjusted diluted EPS rose by more than 7% to $1.76 from $1.64 in Q3 2024, aided by share buybacks that reduced the weighted average diluted shares by 7.5% [17][25] Business Line Data and Key Metrics Changes - Tech and shopping revenue fell by 2% in Q3, with adjusted EBITDA down 12%, primarily due to the wind down of game publishing activities [8][19] - Health and wellness segment saw a 13% year-over-year revenue growth and 18% adjusted EBITDA growth, marking high watermarks for the division [10] - Cybersecurity and martech revenue grew by 2% in Q3, driven by strong performance in consumer VPN and cloud backup [12] Market Data and Key Metrics Changes - The connectivity division achieved 2% year-over-year revenue growth, with year-to-date revenues up 7% [11] - Gaming and entertainment revenues were approximately 4% lower year-over-year, but adjusted EBITDA grew nearly 3% [9] - Advertising and performance marketing revenues grew by 5.9% year-over-year, while subscription and licensing revenues increased by 2% [18] Company Strategy and Development Direction - The company is evaluating potential opportunities to unlock shareholder value, having engaged outside advisors for this purpose [4][5] - There is a focus on maximizing value for shareholders while maintaining a profitable and growing business structure [5][26] - The company is committed to a disciplined acquisition strategy, having closed seven acquisitions in the first nine months of 2025 [22][23] Management's Comments on Operating Environment and Future Outlook - Management noted that the disconnect between the current market value and intrinsic value of the company is at its widest [29] - The company anticipates fiscal year 2025 total revenues and adjusted diluted EPS to be within the lower half of its guidance range [24] - Management expressed optimism about the performance of various segments despite broader industry headwinds [39] Other Important Information - The company has significant cash reserves of $503.4 million and long-term investments of $119.6 million, with a gross leverage of 1.7 times trailing 12 months adjusted EBITDA [22] - Free cash flow for Q3 2025 was $108.2 million, representing a 35% increase year-over-year [25] - The company plans to continue its stock repurchase program, having repurchased 3 million shares year-to-date [23] Q&A Session Summary Question: Insights on valuation disconnect - Management acknowledged the valuation disconnect and noted that the recent segment-level disclosures have attracted interest from strategic and private equity investors [28][29] Question: Strategic review and potential divestitures - Management stated that no specific properties are off-limits for divestiture, but exploring opportunities for select units is likely to be more value-accretive [31] Question: Impact of AI on traffic and revenue - Management indicated that the company is well-positioned against fluctuations in search traffic, with only 35% of total revenue dependent on web traffic [32] Question: Future M&A opportunities - Management expressed optimism about acquiring smaller properties that may not have weathered recent market changes as well as continuing to buy back shares [44][45] Question: Philosophical shift in acquisitions - Management clarified that the focus remains on cash-on-cash returns and that there is no change in the overall approach to acquisitions [51]

Core Insights - Zeta Global Holdings Corp. (NYSE:ZETA) experienced a significant stock price increase of 19.40% to close at $19.94, driven by strong earnings and a positive outlook for 2025 [1][3] - The company reported a narrowed net loss of 79% in Q3, reducing it to $3.6 million from $17.37 million year-on-year [2] - Revenue for Zeta Global increased by 25.7% to $337.17 million, surpassing previous guidance [3] - The company raised its revenue guidance for full-year 2025 to a range of $1.273 billion to $1.276 billion, up from the previous outlook [4] - Adjusted EBITDA expectations were also increased to $273.2 million to $274.1 million [5] - Initial guidance for full-year 2026 projects revenues of $1.54 billion, indicating nearly 21% growth from the updated 2025 outlook [5] Financial Performance - Q3 net loss narrowed to $3.6 million, a significant improvement from $17.37 million in the same quarter last year [2] - Revenue growth of 25.7% to $337.17 million compared to $268.29 million year-on-year, exceeding prior guidance of $327 million to $329 million [3] - Adjusted EBITDA is now expected to be between $273.2 million and $274.1 million, an increase from the previous estimate [5] Future Outlook - Revenue guidance for 2025 has been raised to $1.273 billion to $1.276 billion, up from $1.258 billion to $1.268 billion [4] - Initial revenue guidance for 2026 is set at $1.54 billion, reflecting a nearly 21% growth from the updated 2025 forecast [5] - The CEO highlighted the role of artificial intelligence and data products in driving growth, emphasizing their competitive advantage [3][4]

Core Insights - Tealium has been recognized by Snowflake as a "One to Watch" in the Activation and Delivery for Owned Channels category of The Modern Marketing Data Stack 2026 report [1][4] - The report highlights the impact of AI, privacy, and data gravity on martech and adtech, based on insights from over 11,100 Snowflake customers [2] Company Highlights - Tealium's bi-directional connectivity with Snowflake, including the Snowpipe Streaming API, allows for seamless real-time customer engagement data delivery [3] - Tealium's growth with Snowflake positions it as a key technology in the Activation and Delivery category, providing unified, real-time solutions for marketers [4] - Tealium's solutions include a real-time customer data platform (CDP) and support over 1,300 built-in connections, enhancing customer data strategies for more than 850 leading businesses globally [9] Customer Success Stories - Rohrman Auto Group utilized Tealium and Snowflake to unify customer data, resulting in over 2 million customer records transformed into clean, consented data, which improved lead conversions [5] - Spark New Zealand leveraged Tealium and Snowflake to create a real-time, AI-powered data engine, generating millions in incremental revenue [6] - Legal & General integrated Tealium's CDP with Snowflake's AI Data Cloud, achieving a 54% increase in call-to-lead conversions [6] Strategic Initiatives - Tealium will sponsor seven Snowflake World Tour events across various cities to showcase innovations in data and AI [7] - The collaboration between Tealium and Snowflake aims to unlock the full value of customer data, enabling personalized experiences and AI-driven insights at scale [8]

Financial Data and Key Metrics Changes - Total revenue for the first quarter grew 5% year over year to $205.5 million, while subscription revenue increased 4% year over year to $184.1 million [5][22] - Non-GAAP operating income was $36.7 million, resulting in an 18% non-GAAP operating margin for the quarter [5][24] - Free cash flow generation reached a record $81 million for the quarter [5][25] - The subscription revenue base net dollar expansion rate was 102%, reflecting elevated customer churn and down-sell activity [22] Business Line Data and Key Metrics Changes - Professional services revenue was $21.4 million, contributing to the overall revenue growth [22] - Subscription gross margin was 78%, while professional services gross margin was 6%, leading to a total non-GAAP gross margin of 70% [23] Market Data and Key Metrics Changes - As of April 30, the company had 146 customers generating at least $1 million in annual subscription revenue, a 6% increase year over year [17][22] - The total remaining performance obligations (RPO) were $943.2 million, up 2% year over year, while current RPO was $596.8 million, up 5% year over year [27] Company Strategy and Development Direction - The company is focused on transforming its business through a clear ambidextrous strategy, optimizing its cost structure, and strengthening its product delivery roadmaps [7][12] - Project Bearhug aims to engage the top 500 customers, representing approximately 80% of revenue, to drive accelerated ROI [14] - The company is committed to improving customer implementation processes and post-sales support to enhance customer satisfaction and retention [10][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties leading to longer sales cycles and increased scrutiny of enterprise spending [9][28] - The company expects FY 2026 to be a transitional year with ongoing challenges but remains optimistic about future growth opportunities [20][33] - Guidance for Q2 indicates total revenue in the range of $205 million to $206 million, representing 4% growth year over year [31] Other Important Information - The company has authorized a new $150 million stock buyback program, expected to be completed by June 30, 2026 [26] - The company is experiencing higher data and hosting costs due to launching new cloud environments [23] Q&A Session Summary Question: How long until the go-to-market strategy reaches its full potential? - Management indicated that FY 2026 is a transitional year, with expectations for improved sales execution and customer engagement in the latter half of the year [39][41] Question: What differentiates Sprinklr in the CCaaS market? - The company highlighted its AI capabilities and unified platform as key differentiators, enabling a seamless experience for agents and customers [44][46] Question: Is the elongation in sales cycles broad-based across customers? - Management noted that the scrutiny is widespread, affecting all customers, but emphasized that the company is seeing opportunities in its core pipeline [51][53] Question: What is driving logo churn and how to address it? - Management attributed churn to past execution challenges and emphasized the need for improved customer engagement and consistent implementation processes [55][57] Question: What R&D activities are being pursued to help with renewals? - The company is focusing on improving user experience and exploring acquisition opportunities to enhance its core offerings [65][67] Question: What metrics are being used to measure the success of the new pod structure? - Management is implementing a collaborative approach within sales teams, emphasizing accountability and customer engagement to drive success [100][102]

Summary of Zeta Global Conference Call Company Overview - **Company**: Zeta Global - **Industry**: Marketing Technology (MarTech) Core Points and Arguments 1. **Unique Value Proposition**: Zeta Global offers an all-in-one marketing platform that enables brands to acquire, grow, and retain customers using a single dataset, unlike competitors who focus on either customer retention or acquisition [6][12][14] 2. **Data Advantage**: Zeta has data on approximately 240 million U.S. individuals, representing 90-95% of the U.S. adult population, which is leveraged for identity-based marketing [19][20] 3. **Growth in Agency Partnerships**: The company has shifted from direct enterprise sales to working with agencies, which now account for nearly 20% of revenue, marking a significant growth area [30][68] 4. **Channel Expansion**: The average customer is now utilizing three channels, with a focus on expanding use cases to drive higher average revenue per user (ARPU) [40][41] 5. **Generative AI Investments**: Zeta has made significant investments in generative AI to enhance marketing solutions, aiming to provide easier and faster campaign deployment [51][53] 6. **Customer Retention and ROI**: Zeta emphasizes measurable ROI for clients, which leads to increased investment in their platform as clients see better outcomes [8][10][47] Additional Important Insights 1. **Market Trends**: CMOs are increasingly investing in data convergence and identity-based marketing, which aligns with Zeta's offerings [12][14] 2. **Agency Dynamics**: Independent agencies are engaging with Zeta similarly to direct enterprise relationships, creating multi-year contracts and minimum usage agreements [32][34] 3. **Sales Strategy**: Zeta's sales approach is not tied to RFP cycles, allowing flexibility in entering the market through data solutions [45][46] 4. **Financial Performance**: Zeta has maintained mid to high 20% organic growth, with a forecast of 23% growth for the current year [49][56] 5. **Operational Efficiency**: The company has managed to grow while expanding free cash flow margins, indicating a balance between growth investments and margin expansion [61][70] This summary encapsulates the key points discussed during the conference call, highlighting Zeta Global's strategic positioning, growth initiatives, and market dynamics.