Executive Summary

Q1 revenue declined 8.3% year over year to $1.08M; gross margin held at ~65%, but operating expenses rose 35.9%, widening the Adjusted EBITDA loss to $(1.51)M from $(0.63)M a year ago .
Annual recurring revenue (ARR) reached $4.9M in March (+14.2% sequentially vs Q4), and management initiated a December 2024 ARR target of $8.1–$10.0M (midpoint implies ~97% growth vs March ARR, roughly half from LOI-led acquisitions) .
Liquidity remains tight (cash ~$1.0M; substantial current liabilities ~$35.2M), with “substantial doubt” about going concern; the Yorkville standstill following partial repayment aims to reduce near‑term conversion pressure while the company pursues a registered offering .
Product pivot progressed: Demio drove 99% of revenue; Banzai relaunched Reach (Reach 2.0) and cited early enterprise adopters; management highlighted AI-driven roadmap as a 2024 catalyst .

What Went Well and What Went Wrong

What Went Well
- ARR momentum: March ARR of $4.9M rose 14.2% q/q and ~5% y/y; management set 2024 ARR target of $8.1–$10.0M (midpoint +97% vs March ARR) .
- Product/AI: Launch of Reach 2.0 with early adoption by Cisco, The Economist Impact, and CrowdStrike; CEO emphasized “leverag[ing] AI and data to deliver solutions that give marketers superpowers” .
- Cost of revenue efficiency: Cost of revenue fell 7.5% y/y on lower infrastructure and contracted services, partly offset by higher streaming costs, sustaining ~65% gross margin .
What Went Wrong
- Top-line softness and mix: Revenue fell 8.3% y/y to $1.08M as Reach declined ~$74k (prior phase-out), and Demio dipped ~$25k on churn and slower new sales .
- OpEx pressure and losses: Operating expenses increased 35.9% (audit/legal/technical accounting drove +$0.7M), widening Adjusted EBITDA loss to $(1.51)M and net loss to $(4.50)M .
- Liquidity, listing, and leverage: Cash ~$1.0M vs current liabilities ~$35.2M and going‑concern warning; Nasdaq bid/MVPHS deficiency notices raise listing risk; Yorkville/GEM/term debt remain significant overhangs despite standstill and settlements .

Financial Results

Revenue, profitability, and margins (y/y comparison)

Metric	Q1 2023	Q1 2024
Revenue ($)	$1,177,061	$1,079,472
Gross Profit ($)	$764,835	$698,092
Gross Margin (%)	65.0% (764,835/1,177,061)	64.7% (698,092/1,079,472)
Operating Loss ($)	$(2,407,632)	$(3,612,401)
Net Loss ($)	$(3,765,122)	$(4,500,272)
Diluted EPS ($)	$(0.59)	$(0.26)
Adjusted EBITDA ($)	$(626,000)	$(1,508,000)

Sequential context (Q1 vs Q4): management cited a $1.9M sequential increase in net income (30%) vs Q4 2023, driven by operational improvements and product mix; however, Q4 figures were not fully disclosed in filings .

Regional revenue mix

Region	Q1 2023 ($, %)	Q1 2024 ($, %)
Americas	$669,775 (62%)	$582,827 (54%)
EMEA	$407,910 (30%)	$386,250 (36%)
APAC	$99,376 (8%)	$110,395 (10%)
Total	$1,177,061 (100%)	$1,079,472 (100%)

Product revenue mix

Product	Q1 2023 (% of Rev)	Q1 2024 (% of Rev)
Demio	93%	99%
Reach	7%	1%

Key KPIs (Demio)

KPI	Q1 2023	Q1 2024
Average Monthly NRR	96.3%	97.2%
New Customer ACV ($)	$1,376	$1,484
Total Average ACV ($)	$1,289	$1,499
CAC ($)	$884	$1,220
Monthly Churn – Revenue	8.1%	5.2%
Monthly Churn – Logo	8.8%	6.3%
MRR (New Customers) ($)	$107	$125
Customer Life (months)	12.4	19.2
LTV (New Customers) ($)	$1,423	$2,376
LTV/CAC	1.5	2.0

Balance sheet and liquidity (Q1 2024)

Cash: $1,026,932; Deferred revenue: $1,245,306 .
Current liabilities: $35,206,386; Total liabilities: $35,281,386 .
Going concern: management disclosed substantial doubt about the company’s ability to continue as a going concern within 12 months .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
ARR ($)	December 2024	—	$8.1–$10.0M; midpoint $9.1M (≈97% growth vs March 2024 ARR $4.9M; ~50% organic/~50% LOI acquisitions)	Initiated

Notes: Management plans to track progress toward the 2024 ARR target in quarterly reports and notes contribution assumptions from non‑binding LOIs (Cliently and Boast) .

Earnings Call Themes & Trends

Note: No separate Q1 2024 earnings call transcript was filed; themes below reflect the press release and 10-Q disclosures.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2024)	Trend
AI/Technology initiatives	10-K roadmap prioritized AI features (translation, transcription, content generation)	Reach 2.0 launched; management emphasized leveraging AI/data; early enterprise adopters named	Increasing emphasis on AI-led product value
Macro/Regulatory/Listing	10-K detailed macro risks and SEC/Nasdaq compliance costs	Nasdaq minimum bid and MVPHS deficiency notices received in April 2024	Mounting listing compliance pressure
Product performance	Demio focus; Reach previously being phased out per MD&A	Reach 2.0 reintroduced; Demio remains core (99% rev); Reach revenue y/y down ~$74k	Pivot to reaccelerate Reach alongside Demio
Regional trends	Global customer base in 86+ countries (10-Q)	Mix shifts: Americas 54% (from 62%); EMEA 36% (from 30%); APAC 10% (from 8%)	EMEA share up; Americas down
Financing/Capital structure	SEPA, GEM, CP BF debt, and warrants described in 10-K	Yorkville standstill tied to $2.0M repayment from offering; GEM settlement executed; convertible conversions ongoing	Reducing near‑term conversion overhang; leverage remains high

Management Commentary

“Q1 was a strong rebuilding quarter… positive quarterly growth was driven by improvements to both our Demio product and our customer acquisition efficiency… Reach 2.0… and the new customers we’ve added so far in 2024… leverage AI and data to deliver solutions that give marketers superpowers.” — Joe Davy, CEO .
Management highlighted tracking to the 2024 ARR target and noted contribution assumptions from LOI acquisitions (Cliently, Boast) .

Q&A Highlights

No Q&A disclosures were filed; management’s prepared remarks (press release) focused on ARR momentum, product roadmap (Reach 2.0/AI), and early customer traction .
Financing clarifications were provided through the Yorkville Debt Repayment Agreement and subsequent standstill mechanics, contingent on a registered offering and partial repayment .

Estimates Context

Wall Street consensus (S&P Global) for Q1 2024 was unavailable for this ticker in our S&P mapping at this time; as a result, we cannot provide a results vs consensus comparison. We attempted retrieval but no CIQ mapping was available for VII at the time of query.

Key Takeaways for Investors

Execution vs targets: ARR grew to $4.9M (+14.2% q/q); the 2024 ARR target ($8.1–$10.0M) will be a central yardstick—delivery depends on both organic growth and closing/accreting LOI deals .
Revenue base is stabilizing with high gross margin (~65%), but operating costs (audit/legal/accounting) keep pressure on profitability; watch for OpEx normalization as public-company costs annualize .
Liquidity risk: Cash ~~$1.0M and substantial current liabilities (~~$35.2M) alongside going‑concern language and listing deficiency notices are near‑term overhangs; the planned offering and Yorkville standstill are pivotal to bridge execution .
Product catalysts: Reach 2.0 and AI-feature development could support upsell, ACV expansion, and lower logo/revenue churn (already improved in Q1); monitor Demio enterprise traction and Reach 2.0 pipeline .
Mix and geography: Americas mix fell while EMEA/APAC rose; sustained EMEA strength may reflect enterprise wins but could require localized go‑to‑market investments .
Capital structure: Continued conversions, warrant remeasurement gains, and settlements reduced some non-cash overhangs; however, CP BF term/convertible notes and deferred fees remain material—track subsequent capital actions and covenant compliance .
Trading setup: Stock sensitivity likely tied to (i) progress on the registered offering and Yorkville repayment/standstill, (ii) M&A LOIs converting to closed/ARR-contributing deals, and (iii) evidence of re-acceleration from Reach 2.0 and AI features into ARR trajectory .

Banzai International, Inc. (VII)·Q1 2024 Earnings Summary