Banzai International, Inc. (NASDAQ: BNZI) (“Banzai” or the
“Company”), a leading marketing technology company that provides
essential marketing and sales solutions, today announced a
comprehensive initiative designed to significantly improve its Net
Income while maintaining its growth outlook. The Company plans to
accomplish this through a reduction of its annual operational
expenses by up to $9.9 million by March 31, 2025, along with a
reduction in other expenses by up to $3.6 million.
Overall improvement in Net Income is expected to
be approximately $13.5 million annually when fully implemented.
The strategic initiative includes a broad range
of measures including strategic workforce adjustments, operational
consolidation, and various other cost-saving actions. These
measures are aimed at increasing efficiency and improving
scalability while continuing to build Banzai’s leadership position
in the marketing technology industry. Specifically, Banzai expects
to:
Implement Workforce
Adjustments
Banzai has undertaken a strategic adjustment to
reduce its staffing and independent contractor expenses by 27%,
which will preserve the company's agility and innovation capacity.
Affected employees will be supported with comprehensive severance
packages and resources for career transition. The Company
anticipates that the total cost to implement this plan will be $0.1
million.
Reduce Interest Expense
Banzai has restructured its long-term debt with
Columbia Pacific Advisors (“CP BF”) such that the long-term debt
maturity is extended until February 19, 2027 from February 19,
2025, and 100% of interest expense is now Payable-in-Kind (“PIK”)
instead of payable in cash. This substantially reduces the
Company’s cash expenses. If fully converted to equity under the
restructured note, the entire $1.9m annual expense would be
eliminated.
Realize Vendor Cost-Savings
Banzai has begun implementing, and will continue
to implement, a series of additional measures to further reduce
expenses. These will include curtailing discretionary spending,
cost-reduction measures for certain legal and accounting expenses,
reduction of real-estate expenses, and leveraging automation and
digital technologies to enhance operational efficiency.
“Alongside the $5m private placement transaction
and debt restructuring transactions the company has executed in the
last two weeks, we believe that implementing this strategic
initiative, if fully achieved, will enable us to substantially
extend our cash runway and invest in growth,” said Joe Davy, CEO of
Banzai. “We are dedicated to managing costs efficiently while still
advancing innovative products and maintaining the exceptional
service our customers rely on, all without sacrificing growth. We
will continue to invest in our software platform, sales and
marketing and product development. We are confident that this
strategic realignment will strengthen our competitive position and
contribute to our long-term success."
About Banzai
Banzai is a marketing technology company that
provides essential marketing and sales solutions for businesses of
all sizes. On a mission to help their customers achieve their
mission, Banzai enables companies of all sizes to target, engage,
and measure both new and existing customers more effectively.
Banzai customers include Square, Hewlett Packard Enterprise, Thermo
Fisher Scientific, Thinkific, Doodle and ActiveCampaign, among
thousands of others. Learn more at www.banzai.io. For investors,
please visit https://ir.banzai.io.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements often use words such
as “believe,” “may,” “will,” “estimate,” “target,” “continue,”
“anticipate,” “intend,” “expect,” “should,” “would,” “propose,”
“plan,” “project,” “forecast,” “predict,” “potential,” “seek,”
“future,” “outlook,” and similar variations and expressions.
Forward-looking statements are those that do not relate strictly to
historical or current facts. Examples of forward-looking statements
may include, among others, statements regarding Banzai
International, Inc.’s (the “Company’s”): future financial, business
and operating performance and goals; annualized recurring revenue
and customer retention; ongoing, future or ability to maintain or
improve its financial position, cash flows, and liquidity and its
expected financial needs; potential financing and ability to obtain
financing; acquisition strategy and proposed acquisitions and, if
completed, their potential success and financial contributions;
strategy and strategic goals, including being able to capitalize on
opportunities; expectations relating to the Company’s industry,
outlook and market trends; total addressable market and serviceable
addressable market and related projections; plans, strategies and
expectations for retaining existing or acquiring new customers,
increasing revenue and executing growth initiatives; and product
areas of focus and additional products that may be sold in the
future. Because forward-looking statements relate to the future,
they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict and many of which are
outside of our control. Forward-looking statements are not
guarantees of future performance, and our actual results of
operations, financial condition and liquidity and development of
the industry in which the Company operates may differ materially
from those made in or suggested by the forward-looking statements.
Therefore, investors should not rely on any of these
forward-looking statements. Factors that may cause actual results
to differ materially include changes in the markets in which the
Company operates, customer demand, the financial markets, economic,
business and regulatory and other factors, such as the Company’s
ability to execute on its strategy. More detailed information about
risk factors can be found in the Company’s Annual Report on Form
10-K and the Company’s Quarterly Reports on Form 10-Q under the
heading “Risk Factors,” and in other reports filed by the Company,
including reports on Form 8-K. The Company does not undertake any
duty to update forward-looking statements after the date of this
press release.
Investor Relations:Chris TysonExecutive Vice
PresidentMZ Group - MZ North America949-491-8235BNZI@mzgroup.us
www.mzgroup.us
MediaRachel MeyrowitzDirector, Demand
Generation, Banzaimedia@banzai.io
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