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JI

Janover Inc. (JNVR)·Q1 2024 Earnings Summary

Executive Summary

  • Q1 2024 revenue was $0.411M, down 12% YoY, with net loss of $0.964M and EPS of $(0.09); management highlighted a 17% sequential revenue increase versus Q4 2023 driven by SBA and larger loan opportunities .
  • Mix shift began toward recurring revenue: SaaS subscriptions were ~$0.073M (18% of revenue), aided by the November 2023 Groundbreaker acquisition; platform fees contributed ~$0.338M .
  • Adjusted EBITDA deteriorated to $(0.837M) vs $(0.175M) YoY as OpEx rose on headcount, public company costs, and amortization of acquired technology; cash declined to $3.924M, no material debt .
  • No formal quantitative guidance was provided; management expects recurring and contractual revenue to “significantly bolster” 2024 and is focused on AI-enabled product expansion and Janover Insurance scaling .
  • No earnings call transcript was available; recap synthesizes the 8‑K press release, Q1 10‑Q, and related Q1‑context press releases .

What Went Well and What Went Wrong

What Went Well

  • Recurring revenue traction: SaaS reached ~$0.073M (18% of total), establishing a steadier revenue base alongside platform fees .
  • Strong SBA and larger-loan focus lifted revenue per transaction 10% YoY to ~$10,208, despite fewer closings; management emphasized sequential growth of 17% vs Q4 2023 .
  • Liquidity and clean balance sheet: $3.924M cash and no material debt instruments at quarter-end, supporting ongoing investment in AI, insurance, and partnerships .

What Went Wrong

  • Revenue decline and wider losses: revenue fell 12% YoY; net loss increased to $(0.964M) as total OpEx nearly doubled (92% YoY) on compensation, professional fees, and amortization .
  • Commercial real estate market headwinds persisted, lowering closed loan volume (33 vs 49 YoY) and pressuring transaction-driven revenue despite higher revenue per transaction .
  • Disclosure controls were not effective due to size/segregation-of-duties constraints, highlighting internal control enhancements still needed as a public company .

Financial Results

MetricQ2 2023Q3 2023Q1 2024
Revenue ($USD)$601,940 $583,785 $411,137
Net Loss ($USD)$(397,851) $(1,578,528) $(964,051)
EPS ($USD)$(0.06) $(0.17) $(0.09)
Total Operating Expenses ($USD)$848,354 $2,222,431 $1,420,756

Liquidity snapshot:

MetricQ2 2023Q3 2023Q1 2024
Cash And Equivalents ($USD)$1,581,545 $5,815,008 $3,924,238
Total Liabilities ($USD)$942,454 $244,353 $528,726

Revenue disaggregation:

MetricQ1 2024
Platform fees ($USD)$338,430
SaaS subscription fees ($USD)$72,707
Total Revenue ($USD)$411,137

KPIs:

KPIQ1 2023Q1 2024
Transactions closed (units)49 33
Revenue per transaction ($USD)$9,250 $10,208
Recurring revenue (% of total)n/a18%

Non-GAAP:

MetricQ1 2023Q1 2024
Adjusted EBITDA ($USD)$(174,865) $(837,112)
Adjusted EBITDA per share ($USD)$(0.03) $(0.07)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Recurring/contractual revenue trajectoryFY 2024None disclosedManagement expects recurring and contractual revenue to “significantly bolster” 2024, supported by Groundbreaker and Janover Insurance Qualitative positive
Quantitative revenue/EPS/OpExFY/Q2+ 2024None disclosedNo formal quantitative guidance ranges disclosed in Q1 filings/press release Maintained “no formal guidance”

Earnings Call Themes & Trends

(No Q1 2024 earnings call transcript available; themes sourced from filings and press releases.)

TopicPrevious Mentions (Q2–Q3 2023)Current Period (Q1 2024)Trend
AI/technology initiativesBuilding AI-enabled marketplace; product enrichment to improve matching and advisor workflows Continued investment; “cutting-edge AI enabled platform” powering premium products and recurring revenue offerings Steady build; deeper integration
SBA/SMB performanceSBA drove growth; higher revenue per transaction despite fewer closings SBA sequential revenue up 16%; continued focus on larger loans to lift revenue per transaction Positive momentum
Macro headwinds (rates, CRE dislocation)CRE headwinds, transaction declines; seasonality muted Market remains “challenged”; management still anticipates first-half pressure Persistent headwinds
Recurring revenue (SaaS)Pre-acquisition minimal; strategy to add subscriptions 18% of Q1 revenue from SaaS; Groundbreaker acquisition contribution; ARR build underway Scaling upward
Insurance business launchn/aLaunched Janover Insurance Group in Jan 2024; targeting multifamily/commercial property insurance via generative AI New vector for recurring revenue
PartnershipsBegan building referral/strategic partnerships (e.g., La Rosa) Partnerships remain a channel for expansion; investor presentation highlights lender/credit union engagement Broadening channels
Controls/governanceControls effective (Q2) but structural weaknesses noted; later updates Disclosure controls “not effective” at quarter-end due to size/segregation-of-duties limits; remediation intent Needs strengthening

Management Commentary

  • “We achieved more than 17% sequential growth for the first quarter of 2024… our SBA business line experienced a sequential increase of 16%… and a 10% year-over-year increase in revenue per transaction.” — Blake Janover, CEO .
  • “Approximately 18% of our total revenue consisted of recurring revenue… Groundbreaker [SaaS] and Janover Insurance position us to significantly bolster recurring and contractual revenue for the remainder of fiscal 2024.” .
  • “Our product mix is increasingly comprised of high margin, recurring revenue products… supported by our cutting-edge AI enabled platform… We believe we have established a meaningful foundation and a highly scalable infrastructure.” .

Q&A Highlights

  • No Q1 2024 earnings call transcript or webcast was identified; results and strategy were communicated via the 8‑K press release and 10‑Q filing .

Estimates Context

  • Wall Street consensus estimates from S&P Global were not available for JNVR due to missing data mapping; as a result, comparison versus consensus EPS and revenue cannot be provided for Q1 2024 [GetEstimates error].
  • Near-term estimate revisions (if covered) would likely focus on recurring revenue contribution, transaction volume cadence, and OpEx trajectory given the shift toward SaaS and insurance, but formal consensus data was unavailable in our tools .

Key Takeaways for Investors

  • Mix shift toward recurring SaaS is real: 18% of Q1 revenue from subscriptions; expect continued ARR build as Groundbreaker and Insurance scale .
  • Transaction model remains sensitive to CRE cycles: closed deals fell YoY (33 vs 49), but revenue per transaction rose ~10% on larger loans; SBA remains a bright spot .
  • Operating losses widened with higher OpEx and amortization of acquired tech; monitor OpEx discipline and non-GAAP profitability trajectory through 2024 .
  • Liquidity sufficient near term ($3.924M cash, no material debt) to fund AI, insurance licensing, and partnership expansion, but cash burn needs watching given $(1.146M) operating cash outflow in Q1 .
  • No formal guidance provided; narrative points to recurring/contractual revenue strengthening in 2024—key catalyst will be evidenced ARR growth and subscription retention .
  • Governance/controls: disclosure controls not effective due to small-company segregation limits; remediation plans noted—track progress as scale increases .
  • With no call transcript, rely on filings for signals: focus on SaaS contribution, insurance revenue ramp, and SBA pipeline to gauge sustainable margin improvement .