Banzai Q4 2025 Earnings Call - Acquisition-Fueled Revenue Surge, ConnectAndSell to More Than Double Run Rate

Dean Ditto, Chief Financial Officer, Banzai: Joe Davy.

Joe Davy, Chief Executive Officer, Banzai: Thank 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 year 2025 financial results before we open the call for questions. For those new to our story, at Banzai, we’re developing a platform of AI-powered marketing solutions to make our customers’ lives ten times faster and easier. Our products enable our robust customer base to target, engage, and measure both new and existing customers more effectively.

Our offerings consist of Demio, our webinar and virtual event platform with AI moderation, OpenReel, our enterprise AI-powered remote video production platform, CreateStudio, an AI 3D video creation and animation platform, Superblocks, an AI agent for building and hosting websites and landing pages, Boost and Reach, audience targeting and event amplification, and ConnectAndSell, a proposed acquisition of an AI sales acceleration platform. Our focus is on the global martech market, which is expanding rapidly due to increasing digital transformation, surging demand for personalized experiences, and the proliferation of automation and AI. These dynamics have created challenges for modern marketing teams, which must navigate the expansive and complex world of available tools. Enterprise marketers use an average of 120 marketing tools.

Our core product suite addresses the issue of disjointed customer experiences and messy data by centralizing all essential marketing tools in the Banzai platform. We continue to expand our family of products through our targeted acquisition strategy, which positions us strongly for capitalizing on industry consolidation. Banzai continues to be focused on our strategy of building and buying products across four key areas, attracting leads, engagement, tracking, and intelligence. We feel these areas are key to marketing success both now and in the future. The fourth quarter was marked by continued operational momentum and substantial growth, with revenue growing 116% year-over-year to $2.8 million, driven by our Vidello and OpenReel subsidiaries and continued strong performance for our products.

We’re seeing strong results from having Vidello’s next-generation video creation, editing, and marketing suite and OpenReel’s digital video creation platform in the Banzai family of products. We achieved gross profit of $2.3 million in the quarter, a year-over-year increase of 148%, and gross margin expanded significantly year-over-year from 71.3% to 81.9%. We reduced net loss by $2.9 million year-over-year, a 36% increase. Our fiscal year 2025 revenue increased to $12.2 million, up 169% from fiscal 2024, and net loss improved by $9 million compared to 2024.

We achieved stockholders’ equity increase of $10.8 million to $8.1 million as of December 31, 2025, and we reached a customer base of over 150,000 total customers who have purchased or subscribed to Banzai products. We also secured a $11 million debt facility with an institutional investor to support acquisitions and ongoing operations. The appointments of Dean Ditto as Chief Financial Officer and Michael Kurtzman as Chief Revenue Officer significantly strengthened our team’s financial oversight and growth acceleration to meet our revenue and operational goals. Similarly, an institutional investor increased their direct equity stake to 18.7% following the exercise of warrants, demonstrating their continued confidence in Banzai’s long-term strategy.

Most recently, we announced the proposed acquisition of ConnectAndSell, a sales acceleration software provider that will strengthen and broaden our marketing and sales software platform with an established revenue-generating business, which I will go into more detail shortly. In November, we acquired privately held Superblocks, an agentic AI platform for developing and hosting launch-ready websites and landing pages. Last week, we announced an agreement on terms to acquire assets of ConnectAndSell, Inc., an AI-powered sales enablement platform serving B2B organizations across financial services, healthcare, technology, and other industries. The proposed acquisition is expected to increase Banzai’s annual revenue by approximately $15 million and is expected to close in the second quarter of 2026. The company has a gross margin of 86%, approximately 250 enterprise customers, and 10+ patents issued and pending.

This acquisition would more than double our current annualized revenue to over $27 million. ConnectAndSell’s AI-powered platform is designed to improve seller productivity by helping sales teams spend more time in live conversations with qualified decision-makers. The acquisition would add sales acceleration capabilities to Banzai’s platform and expand the company’s ability to support customers across a broader portion of the revenue generation process. We believe the addition of ConnectAndSell would strengthen our position as a provider of integrated marketing and sales technology solutions while creating meaningful cross-sell opportunities across both companies’ customer bases. The transaction would also further Banzai’s strategy of building a broader platform of practical revenue-generating business-critical solutions.

ConnectAndSell has a highly complementary sales acceleration capability and would expand Banzai’s platform access across more of the go-to-market process and create additional opportunities for customer expansion across our platform, which aligns well with our strategy of acquiring AI proven AI-powered business solutions. In November, we acquired the assets of privately held Superblocks, an agentic AI platform for developing and hosting websites, landing pages, registration pages, and more. This advances our vision of building the AI platform for marketing. The Superblocks platform allows marketers to easily create and host websites, landing pages, and simple web applications using conversational AI. Building well-designed functional landing pages and websites have traditionally required teams to use rigid template-based site builders or possess extensive web development experience. Superblocks AI agent builds beautiful brand compliant web assets quickly for businesses, marketers, and creators.

Using the platform’s AI agent, users can describe what they want in natural language, and the AI agent then generates the user interface functionality and hosts the application. The integration of Superblocks into our platform allows existing customers to build custom registration pages, event pages, video pages, and more with ease, adding to our growing AI-powered SaaS platform of solutions that make our customers’ lives 10 times faster and easier and becoming a powerful new tool for our customers. We entered 2025 with a clear set of strategic priorities and have made meaningful progress on our goals to position Banzai for sustainable long-term growth. As I mentioned, we’ve rapidly paid down and converted debt in recent quarters and intend to opportunistically continue strengthening our balance sheet.

Banzai stockholders’ equity increased by 48% in Q4 and by $10.8 million from December 31, 2024, reflecting the substantial improvements we’ve made. We continue to execute a focused strategy to expand our capabilities through targeted acquisitions focused on profitable AI-aligned businesses that add differentiated functionality, accelerate distribution, and strengthen our AI roadmap. Since December 2024, we’ve closed 3 significant acquisitions, OpenReel, Vidello, and Superblocks. In addition, we recently announced an agreement to acquire ConnectAndSell, expanding our ability to support customers across the digital engagement life cycle from acquisition and conversion through content creation, engagement, and performance measurement. We also maintain an active pipeline of potential acquisition opportunities across key industries where we have strong sector experience, and we can leverage our AI platform to add value and strategic operational acceleration.

Recent balance sheet improvements will further enable new growth as we maintain operational discipline and a focus on efficiency in the path to sustainable profitability. We’re also accelerating organic growth in our current lines of business. Healthcare is one of our largest customer verticals and represents key areas of focus for Banzai as we look ahead. We serve more than 250 healthcare and medical technology customers, ranging from small businesses to large enterprises. Healthcare and medical technology companies operate in highly specialized and regulated environments that demand precision targeting, compliant engagement, and measurable outcomes. Our platform is designed to support those requirements through AI-enabled targeting, data-driven engagement, and performance measurement, and helping teams move faster with fewer resources. We believe the opportunity ahead remains significant as healthcare organizations continue to invest in digital transformation and AI marketing solutions.

We’re deepening our relationships with the healthcare industry while continuing to execute across all of our verticals. Finally, leadership strength. Last year, we welcomed Michael Kurtzman as CRO, Dean Ditto as CFO, as I previously mentioned, and most recently, Matt McCurdy as vice president of sales. These are proven leaders with the experience, discipline, and vision to help us capture the opportunities ahead. We’ve substantially scaled our customer base or substantially scaled our base of customers who have used Banzai products to over 150,000 customers, which includes blue-chip names across a variety of sectors. Some of our key customers include Hewlett Packard Enterprise, Adobe, RBC, Thermo Fisher Scientific, and thousands of others. We serve a variety of industries, including healthcare, financial services, technology, and media in over 90 countries.

We remain focused on targeting the mid-market and enterprise segment while continuing to support our small business customers, and we’re taking a disciplined approach to focus on acquiring stickier, high-value customers. Our flywheel business model continues to be at the center of our strategy. Developing great products leads to growing customer usage. This drives additional data and context on our products, which enables us to create additional value through integrations, automation, and AI features. We’re building a moat in two key areas: integrations and AI enablement. Integrating multiple products on a single platform allows us to simplify our customers’ workflows and deliver on our brand promise of ten times faster and easier solutions. Continued investment in AI enablement will ultimately be key to long-term success. We believe that adding more solutions will, over time, expand the context available to us and will enable us to deliver more powerful AI capabilities.

Our vision is to generate substantial long-term value by scaling inorganically in addition to the growth of our existing products. Our acquisition framework is centered around profitable businesses that align with Banzai’s target enterprise and mid-market customer profile and our data and AI-driven platform. We evaluate candidates on their ability to attract leads, engage, harness data and intelligence, and measure results. The opportunity for Banzai is twofold. First, to increase our product capabilities by acquiring strategically aligned products that serve our core customer base, and second, by accelerating our path to profitability and scale. Hopefully, we’ll benefit from multiple expansion along the way. I’ll now turn the call over to Dean Ditto, Chief Financial Officer, to discuss our financial results.

Dean Ditto, Chief Financial Officer, Banzai: Great. Thank you, Joe. I’ll start with fourth quarter results. Total revenue for the fourth quarter was $2.8 million, which was a 116% increase compared to $1.3 million in the fourth quarter of 2024. Gross profit for the fourth quarter of 2025 was $2.3 million compared to $0.9 million in the fourth quarter of 2024, which was a 148% increase. Gross margin in the fourth quarter of 2025 was 81.9% compared to 71.3% in 2024, which was an increase of 1,061 basis points. Total operating expenses was $6.6 million for the fourth quarter of 2025 compared to $4.8 million in the fourth quarter of 2024.

The increase in operating expenses is primarily due to the addition of the acquired businesses, OpenReel and Vidello, and overall operating expenses. Net loss for the three quarters ended December 31, 2025, was $5 million, and this is compared to $7.9 million for the same period in 2024, or a 36% improvement. For the three months ended December 31, 2025, adjusted EBITDA was a loss of $1.6 million compared to which was a modest improvement from the same period in 2024, where we had a adjusted EBITDA loss of $1.7 million, a 3% improvement. Now I’ll move to the year ended December 31, 2025, to our full year results.

Total revenue for the year ended December 31, 2025, was $12.2 million, and this is compared to $4.5 million in the prior year or 169% increase. The total cost of revenue for the year ended December 31 was $2.2 million, and as compared to $1.4 million in the prior year. The increase was less proportional to the increase in revenue, resulting in improved gross profit. The gross profit for the year ended December 31, 2025, increased by 221%. The result was $10 million compared to the same period in 2024 of $3.1 million in gross profit.

Our gross margins increased in 2025 to 82% compared to the full year of 2024 at 68.6%. This is an improvement of 1,342 basis points. Total operating expenses for the year ended December 31, 2025, were $28.4 million, and this is compared to the same period in 2024, where expenses were $16.6 million. Again, the increase is primarily due to the acquired businesses as well as the overall level of operating expenses. Net loss for the year ended December 31, 2025, decreased by 29% to $22.5 million compared to $31.5 million for the prior period.

Adjusted EBITDA loss for the year ended December 31, 2025, was $7.3 million compared to the adjusted EBITDA loss of $6.5 million for the prior year period. Net cash used in operating activities for 2025 was $15.7 million compared to $9.6 million for the year ended December 31, 2024. Cash totaled $0.3 million as of December 31, 2025, compared to $1.1 million as of December 31, 2024. Subsequent to December 31, 2025, the company did issue shares under its ATM agreement for net proceeds of approximately $1.3 million. I’ll now turn the call back to Joe for some closing remarks.

Joe Davy, Chief Executive Officer, Banzai: Thank you, Dean. We are seeing solid revenue growth across our business at much higher gross margin. Operationally, we’re positioned for improved results and cash position in 2026. We’ve worked diligently to continue executing the plans we previously communicated to advance long-term growth. Our debt facility is also available to support acquisitions and ongoing operations. We have an expanding suite of synergistic products that drive real value for our massive customer base and the right team to achieve our objectives, and we’re focused on generating sustainable value for our shareholders, especially through continuing to look at opportunistic acquisitions when they come around. I look forward to continuing to provide additional updates throughout the year. Thank you everyone for attending, and Dean and I would now like to answer your questions.

I will say if you have questions, you can put them in the chat and we will respond to them. Okay. I’m seeing a question here from Ed Wu, so let me respond to this. The outlook for current M&A. Thank you for the question, Ed. I’d say it’s an ongoing strategy for us. I’m assuming this is Ed Wu. I can only see your first name. We’re seeing a lot of interesting opportunities right now, including the ConnectAndSell opportunity, which we’re really excited about. I think, you know, the ConnectAndSell opportunity’s a clear path for us to more than double revenue on a pro forma consolidated basis.

We’re gonna continue to look for those opportunities, scale the business, and especially to do so in a way that we think is advantageous for shareholders. The recent acquisitions I would say have mostly been integrated at this point. You know, no major outstanding items left, but there are still some continuing technology opportunities. For example, things like, you know, shared authentication, consolidated billing systems. One thing that Dean and his team have done is we recently rolled out NetSuite internally. This allows us to consolidate a lot of our financial operations, which I think is gonna ultimately be great for our efficiency and for our customer experience around billing.

You know, if we can give customers a single bill instead of, you know, two or three bills, I think that’ll be great. Dean, anything you wanna add to that?

Dean Ditto, Chief Financial Officer, Banzai: I would just add, Joe, that it also makes it very efficient for us to integrate new business acquisitions. We can very quickly set up those entities and move them into our centralized processes.

Joe Davy, Chief Executive Officer, Banzai: Yeah. Thanks, Dean. Okay, I’ve got a question here from Gaoshi. You’ve highlighted that ConnectAndSell did about $14.7 million of revenue in 2025, with 86% gross margins and is profitable. Once the deal closes, how should we think about the combined company revenue and gross margin profile, and do you expect ConnectAndSell to be EBITDA accretive in its first full year under ownership? Great question. Thank you, Gaoshi. So yes, I think you should think about the combined company revenue, I mean, as a starting point, roughly $27 million. The gross margins we would expect to go up a couple of percentage points probably upon consolidation. That $21 million would be on a, you know, a pro forma consolidated basis.

We’ll only recognize the revenue for the portion of the year, obviously, after the acquisition closes, which hopefully is, you know, shortly. We do expect it to be EBITDA accretive. I think that, you know, just on a standalone basis, probably $2 million of EBITDA, but through synergies, we may be able to see that expand by $2 million additional. You know, we would expect that could have a very meaningful impact on profitability for this year. Great question. Thank you. Another question from Ed. Is there a technology or product that you’re looking for? Yeah, we’re looking for a variety of different things, Ed. Great question.

I would say the main thing that we’re looking for, is, you know, profitable businesses that we think are gonna be resilient in an AI first world. There’s a handful of different ways that we look at that. I think we really strongly consider, you know, before kind of the AI transformation began, we would really look at businesses, you know, on the traditional terms, right? We’d look at their growth rate, their profitability, their unit economics, you know, their LTV, customer acquisition costs, things like that, retention. Now we’re obviously still looking at all those things, but now we’re asking ourselves an additional question, which is, you know, is this business gonna continue to survive and thrive in five years?

I think there’s gonna be, you know, a K-shaped market for a lot of technology companies going forward. I think there’s gonna be businesses that are. You’re probably familiar with some of them. There’s businesses like Chegg that, you know, were very dominant at one time and their market has just kind of gone away. You know, another obvious one that comes to mind is like Stack Overflow. I think it’s been really tough for some of those businesses because the AI platforms that are out there have already started eating away at them and replacing them. It’s just a better way of getting answers to your questions, you know? I think that there’s other use cases, and I think ConnectAndSell is a prime example of this, that are gonna do better in an AI world.

You know, ConnectAndSell has already implemented a lot of AI, improving, you know, operational efficiency, gross margins, all this stuff. You know, we expect that AI’s gonna be a tailwind for a lot of businesses, make them more profitable, make their offerings more attractive, make the customer solve more customer problems, make the solutions more powerful. We’re really looking at those factors now, and I’d say we’re gonna be very opportunistic in terms of what we’re looking for. I’d say our aperture is broadening a little bit. We are seeing lots of interesting opportunities right now, and we’re thinking about things a little bit differently in the context of AI. I hope that answers your question. Let’s see.

Got a couple of questions about cash, so I’ll just address this kind of broadly. Couple people asking about cash management strategy. I’ll say, we have, you know, a very liquid stock. We do have access to an ATM. We’re shelf eligible now, so that’s a huge asset for the company. We also have this, you know, substantial debt facility with an institutional investor that we can use to support operational cash and acquisitions when needed. I think, you know, we do operate the business. You know, we have strategically chosen to operate the business from a lean cash position, and we also opted in Q4 to do some things like debt payoffs that we saw an opportunity to substantially improve the shareholders’ equity.

I think those were the right moves for the company at the time, and so it’s something that Dean and I are constantly keeping an eye on. Thank you for the question. Let’s see. Here’s a question from Jeff. "Do you need significant expansion of your sales force in order to maximize your growth, or can you achieve your goals by synergizing the sales force efforts by having them learn the newest products?" Yeah, this is a fantastic question.

We absolutely can synergize sales force efforts, and I think in a lot of cases we’re gonna see, you know, we might have two businesses with a, you know, combined 25-person sales force, and maybe we only need 20 people, and maybe we can leverage AI to get some productivity, and maybe we can leverage tools like ConnectAndSell. I mean, we are a customer of ConnectAndSell, by the way, so we’re very familiar with that product. And it’s been great for our team. Yeah, I think our biggest focus right now, and especially through Q1, has actually been demand generation, seeing our pipeline expand, and we’ve made an enormous amount of progress there, just seeing tons of new pipeline come in, and some deals already starting to close. That’s fantastic.

I think one of the ones that we maybe didn’t highlight was Trend Micro is a new customer that recently signed through some of our new pipeline generation efforts. I do think that we’ll see expanded productivity and probably some cost improvements there. Great question. "To the extent you can identify your potential market, what percent do you have at the end of 2025?" Okay. Well, I mean, just going back to you know looking at the overall market, I think we showed earlier a picture of the market, you know 18% CAGR, roughly, probably in the neighborhood of a $500 billion market. We’re a tiny fraction of this market today, and I think there’s basically no ceiling on how big this business can grow.

I think there’s a huge upside potential here, especially as I said just a second ago, with some of these pipeline generation efforts, and growth efforts that we’ve put into place now. Dean, anything you wanna add to that?

Dean Ditto, Chief Financial Officer, Banzai: No, no, I think it was well said. Thank you, Joe.

Joe Davy, Chief Executive Officer, Banzai: Okay. I’ve got another question here from Jeffrey. "Are your customer satisfaction numbers continuing their very strong retention? Is upselling still gaining strength amongst the team following your emphasis of helping customers achieve their goals?" Yes. The CSAT numbers just continue to be in my view, kind of industry-leading numbers for customer satisfaction. We routinely see. I can’t remember the last time we saw a number that was below 95% on CSAT. It’s almost, you know, not even as exhilarating to look at it anymore ’cause they’re just always so good. That team’s led by a guy named Beau Dillard, who has done a fantastic job of consolidating across teams and integrating those teams.

Really proud of the progress that he’s made there, and we’ve also rolled out some stuff like, we’ve started to unify on a single customer support platform, which is Intercom. That’s been great, and that’s given us some additional efficiencies, so I think they’re doing really well. Thank you for the question.

Dean Ditto, Chief Financial Officer, Banzai: Joe, can I just add to that.

Joe Davy, Chief Executive Officer, Banzai: Yeah, please.

Dean Ditto, Chief Financial Officer, Banzai: ... response? Yeah, we measure. This is one of the metrics that we measure and discuss with our leadership team every week. We definitely have a pulse on it. I think it’s very fair to say that this is one of our differentiators, among others, that Banzai has. We get responses, poll responses, unsolicited responses from customers regularly, telling us they’re raving fans. That’s. I think it really helps us, you know, continue with that strong retention rate.

Joe Davy, Chief Executive Officer, Banzai: Yeah. Thanks. Great additional comment. Let’s see. We’ve got a question here, another one from. I think we can do two more questions, so then we’ve got a. We’re already a little bit over time here. This question, "How are you pricing and packaging Superblocks today as a standalone SKU, premium add-on, or bundled into higher tier plans?" This is a great question. I think. First of all, Superblocks, you know, when we bought it, was, you know, pretty small. I think it’s still pretty small, has a lot of upside potential, and we’re looking at it in two ways. One is a standalone product, and two is as a integration into other products to support power features.

For example, somebody that’s using our video hosting platform, which we just rolled out a new platform called Studio Sync. You know, we’ll be able to use Superblocks to put together landing pages to host their videos and have custom landing pages, or Demio users. Like, you’re all using Demio right now. It’s a product that we own. By the way, if you need webinar software, please go buy Demio.

Dean Ditto, Chief Financial Officer, Banzai: Oh.

Joe Davy, Chief Executive Officer, Banzai: We’d love to have you as customers. Shameless plug. You know, Demio customers, you know, today it’s a template-based, you know, registration page feature, but with, you know, once we integrate Superblocks capabilities in, users will be able to, you know, generate their own, landing pages and, drop in, registration forms and stuff like that, and have things customized to their brand just much, much faster. We’ve heard from enterprise customers that it can take them up to 12 weeks to go from, the idea for a webinar or an event to actually getting the registration page out, just because of the time it takes to get through their marketing team, their, back office team to build assets.

You know, this is a something we think can enormously speed up that process for customers. I think we’re hoping to see you know, potential expansion across some of our product lines as we start to get this technology integrated in and potentially some additional standalone revenue as well. Although this is kind of a bogey, you know, we’ll see how this product does. I think the team has done a lot of R&D on this, continuing R&D on it. I think it’s very exciting. Okay, last question and then we gotta wrap up. We got a question from another one from Gaushee. Gaushee, you’re the MVP today. Thank you. You have a broad product set.

For 2025, roughly what percentage of ARR came from customers using two or more Banzai products, and how do you expect that multi-product penetration to trend over the next year? I don’t actually have a number for that. It’s, you know, it has grown substantially. I think it’s still, you know, relatively small, so meaning there’s still a relatively large opportunity for this, and we do expect this to continue to grow. I’ll say, one person that’s done a lot of work on this is Michael Kurtzman and Matt McCurdy, that team. The customer success team has really started focusing on how can we bundle in other solutions, you know, customers using OpenReel like bundling in Demio, for example, or vice versa.

We do have some customers that are using that, and we’ve actually had some customers that were potential churn risk due to budget reasons or whatever, and we’ve been able to actually increase revenue with that customer, because, you know, we’ve been able to go back to them and say, "Hey, we can offer you more value, at a lower cost than what you’re paying for us, plus another vendor. Consolidate onto us, increases our revenue, and you get a better experience." Hopefully this will continue, and I think we’re, you know, excited to see the progress the team makes this year. Dean, anything you wanna add to that?

Dean Ditto, Chief Financial Officer, Banzai: Nope. Well said. I think that sums it up. Thank you.

Joe Davy, Chief Executive Officer, Banzai: Okay. Well, if anybody has additional questions, please feel free to reach out to Chris Tyson. He’s the Executive Vice President that we work with at MZ Group, which is our IR firm. His contact information is below, and we’ll be happy to address that. Overall, extremely pleased with the financial results for Q4 in 2025. Just wanna say thank you to all of our shareholders for your ongoing support. We’re hopeful that we’ll have you know, continued growth in 2026, and especially by focusing on things like the ConnectAndSell acquisition that we’re really you know, very motivated by here. That’s it for me. Thank you everyone, and yeah, Happy Easter coming up. That’s very exciting. Hopefully everybody enjoys a Good Friday off.

Stock market’s closed on Friday, and hopefully everybody has a great Easter holiday with your family. Okay.

Dean Ditto, Chief Financial Officer, Banzai: Thank you.

Joe Davy, Chief Executive Officer, Banzai: That’s it for us. Thanks everyone. Bye-bye