Overview

• AI sales & marketing tech firm's Q1 revenue fell 20% yr/yr, missing analyst expectations

• Gross margin stayed high at 80.7% despite revenue decline

• Company signed non-binding letter to acquire ConnectAndSell, aiming to expand AI platform

Outlook

• Company expects cost management actions to materially reduce operating expenses

• Acquisition of ConnectAndSell, if completed, expected to increase annual revenue and expand AI platform

• Company focused on deepening enterprise customer relationships and driving adoption in high-value verticals

Result Drivers

• CONSUMER PRODUCT WEAKNESS - Co said revenue decline was primarily due to underperformance in consumer direct products

• ENTERPRISE PIPELINE - Co cited substantial efforts to increase enterprise pipeline and noted 11% revenue growth in March vs February

• OPERATING EXPENSES - Operating expenses rose due to investments in leadership, sales and marketing, and professional fees

Company press release: ID:nGNX4jrNjv

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Miss	$2.7 mln	$3.76 mln (3 Analysts)
Q1 Net Income		-$8.4 mln
Q1 Adjusted EBITDA		-$1.9 mln
Q1 Gross Margin		80.7%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the it services & consulting peer group is "buy"

• Wall Street's median 12-month price target for Banzai International Inc is $100.00, about 1,431.4% above its May 14 closing price of $6.53

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