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Banzai International(BNZI) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for the full year 2024 was 16.7million,representinga26716.7 million, representing a 267% annual growth compared to 2023's standalone revenue of 4.6 million [6][38] - Annual recurring revenue (ARR) for Q4 2024 was 6.8million,reflectinga546.8 million, reflecting a 54% annualized growth rate compared to Q3 2024 [12][36] - Full year 2024 adjusted EBITDA was negative 6.5 million, an improvement from negative 11.9millionin2023[13][38]NetlossforQ42024was11.9 million in 2023 [13][38] - Net loss for Q4 2024 was 7.8 million, compared to a net loss of 6.4millioninQ42023[37]BusinessLineDataandKeyMetricsChangesTheVidelosubsidiarygenerated6.4 million in Q4 2023 [37] Business Line Data and Key Metrics Changes - The Videlo subsidiary generated 6.1 million in revenue and 1.5millioninnetincomein2024[20]OpenReeldelivered1.5 million in net income in 2024 [20] - OpenReel delivered 6.3 million in revenue and 0.1millioninnetincomein2024[21]Theconsolidatedvideobusinessunit,includingVideloandOpenReel,hadproformarevenuesof0.1 million in net income in 2024 [21] - The consolidated video business unit, including Videlo and OpenReel, had pro forma revenues of 16.7 million in 2024, marking a 267% growth compared to Bonsai's standalone revenue in 2023 [18] Market Data and Key Metrics Changes - Bonsai's customer base grew from 2,700 customers at the end of 2023 to over 90,000 as of March 31, 2025 [14][27] - The company serves a variety of industries, including healthcare, financial services, e-commerce, technology, and media in over 90 countries [28] Company Strategy and Development Direction - The company is focused on building an AI-powered marketing platform and consolidating mission-critical MarTech products [16][29] - The growth strategy includes a "land and expand" model, targeting a 10% cross-sell rate per business unit in 2025 [30][31] - The company aims to integrate newly acquired products to enhance customer experience and drive upsell opportunities [48][52] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving pro forma revenue of nearly 20millionin2025,reflectinga1920 million in 2025, reflecting a 19% increase from 2024 [42] - The company has minimal exposure to geopolitical and tariff risks, positioning it well for substantial revenue growth in 2025 [43][106] - Management highlighted the importance of operational efficiency and customer relationships in achieving profitability [100][102] Other Important Information - The company completed a 20.3 million debt repayment, which is expected to benefit net income and shareholders' equity in 2025 [7][12] - The acquisition of Acton Software is projected to increase revenue by $27 million for the full year 2025 on a pro forma basis [14][24] Q&A Session Summary Question: What are your top strategic priorities for 2025? - The primary focus is on integrating products to work seamlessly together, enhancing customer experience and enabling upsell opportunities [48][52] Question: When will Q1 2025 results be released? - Q1 results are expected to be out on May 15, 2025 [53] Question: How is the integration with new acquisitions going? - Integration is progressing well, with cross-sales already occurring among products [70] Question: What is the market traction for Reach 2.0%? - Market traction has been good, with larger customers showing interest and existing customers cross-selling [61] Question: How has the company been impacted by tariffs? - The company has minimal exposure to tariffs, and they may even create a positive tailwind by driving demand for efficiency in marketing [106]