Banzai International, Inc.

Sir, and I would like to welcome you to third quarter 2025 financial results and business update conference call. A question and answer session will follow the formal presentation. And as a reminder, this conference is being recorded. Before we begin the formal presentation, I'd like to remind everyone that statements made on the call and webcast may include predictions, estimates, and other information that may be considered forward looking. While these forward looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially. Your caution not to place reliance on these statements, forward-looking statements, which reflect our opinions as the date of this presentation. Please keep in mind that we are not obligating ourselves to revise or publicly release the results of any revisions to these forward-looking statements in light of new information or future events. Throughout today's discussion, we will attempt to present some important factors related to our business that may affect our predictions. You should also review our most recent Form 10-K and our Form 10-Q that was just filed for a more complete discussion of these factors and other risks, particularly under the heading risk factors. A press release detailing these results was issued this afternoon and is available in the investor relations section of our website, which is bonsai.io. Your host today, Joe Davey, who's our chief executive officer, and I are going to present unaudited results of operations for the third quarter ended September 30th, 2025. And at this time, I will turn the call over to Bonsai's chief executive officer, Joe Davey. Thanks, Dean.

Good afternoon, everyone. First, I'm pleased to welcome you to Bonsai's third quarter 2025 financial results conference call. I'll begin with a brief overview of our business and the market opportunity before delving into Q3 2025 financial and operational highlights. I'll touch on some product and strategy updates. Our CFO Dean will then review our Q3 financial results before I close and open the call up for questions. One thing I want to do, shameless plug here. I'm going to go back to the first slide. Just want to point out how cool this is. This was made with Create Studio. So if you're not already a Create Studio customer, go to create studio.com. You can make cool stuff like this too. Okay, for those of you who are new to our story at Bonsai, we are developing a platform of AI-powered marketing solutions that make our customers' lives 10 times faster and easier, and our products enable our customer base to target, engage, and measure both new and existing customers more effectively. Our focus is on the global MarTech market, as we've discussed many times. This market is expanding rapidly due to increasing digital transformation, surging demand for personalized experiences, and the proliferation of automation and AI. And these dynamics have created challenges for modern marketing teams. These teams now have to navigate expansive and complex networks of available tools. And our core product suite addresses this by centralizing essential marketing tools on the Bonsai platform. And we're continuing to expand our family products through targeted acquisition strategy, which positions us strongly for capitalizing on industry consolidation. And I'll just point out the average enterprise marketing team uses over 120 different marketing tools, which is, you know, quite a lot. We'd love for that number to come down to one. That's what we're working on. Okay. Talking about our vision real quick, Bonsai continues to be focused on the 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. One of the things that I love to say is that sometimes the factors that aren't going to change in a market are the most important factors in the market. Obviously, the technology landscape changes very quickly. And things like AI, new data availability are all things that we are bringing to the market. But one of the things that doesn't change in the market is the basic desire of customers, which in this case pretty much comes down to how do I attract more leads? How do I engage them more effectively? How do I get smarter about them? And how do I know what's working and what's not working? And that's where we're focused on delivering value for our customers. You know, some things never change. Talk real quick about our Q3 2025 and subsequent highlights. So first of all, our Q3 2025 revenue, 2.8 million. This was an increase of 163% year over year. So we're pleased with that result. Obviously, we want to continue to see that year over year increase, you know, in future periods. Q3 2025 decreased net loss by $9.5 million. This is a 62% improvement. So again, very pleased with that result. Shareholders' equity increased 72% to $5.4 million. This is a reflection of our continued focus on improving our balance sheet. And which we've done dramatically in Q3 and which we've continued to do in Q4. And finally, Q3 2025 gross margin was pretty steady at 82%. This was up about 13% year over year. We achieved ARR of $11 million in the third quarter. This is 168% annualized growth rate compared to Q3 2024. Adjusted EBITDA was a $2.2 million loss compared to $1.5 million in Q3 2024. Our cash balance at second quarter end was $0.9 million. Stockholders' equity increased to $5.4 million, which was a 72% increase from June 30th. We executed a payoff and debt conversion agreement for the remaining principal balance of our outstanding senior secured debt. totaling approximately $4.8 million. The decision by senior debt holders to convert into equity reflects a strong vote of confidence in Bonsai's vision and trajectory. You're not going to see that reflected in the Q3 numbers because that occurred at the beginning of Q4, but we are very happy about that and you'll see that additional improvement reflected in the Q4 financials when those are released. One of our institutional investors increased their direct equity stake to 18.7% following the exercise of warrants, demonstrating their continued confidence in our long-term strategy. And we secured an $11 million debt facility with an institutional investor to support acquisitions and ongoing operations. Of course, we appointed Dean Ditto as chief financial officer, bringing over 20 years of experience. Is it 20 or 30, Dean?

Well, somewhere in between. I like 20 because it just makes me feel younger.