Banzai International (BNZI) AI Stock Analysis

• Market Cap: $9.58M
• Dividend Yield: N/A
• Average Volume (3M): 390.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 14.51
• Revenue Growth: 106.67%
• EPS Growth: 16.74%
• Country: US
• Employees: 28
• Sector: Financial
• Sector Strength: 76
• Industry: Software - Application
• EPS (TTM): N/A
• Shares Outstanding: 2,237,474
• 10 Day Avg. Volume: 351,814
• 30 Day Avg. Volume: 390,912
• PEG Ratio: >-0.01
• Price to Book (P/B): <0.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: >-0.01
• Enterprise Value/Market Cap: 1.57K
• Enterprise Value/Revenue: 4.43
• Enterprise Value/Gross Profit: 2.90K
• Enterprise Value/Ebitda: -188.04
• 1Y Price Target: $24.00
• Price Target Upside: 533.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 25 Underperform
• Price Target: ―

Banzai International faces severe financial weaknesses with negative cash flows and high leverage, posing significant risks. Technical analysis is neutral, and the valuation is unattractive due to negative profitability. Recent corporate events show potential for improvement, but the overall financial instability remains a major concern.

Positive Factors

Market Potential

The MarTech industry is experiencing significant growth, driven by the increased reliance on digital channels for customer engagement.

Revenue Growth

Q1 2025 Annual Recurring Revenue (ARR) was $14.9 million, showing a significant increase from $6.8 million in Q4 2024, with Q1 revenues up 213% year-over-year.

Strategic Acquisitions

The acquisition of OpenReel, a digital video creation platform, highlights strategic expansion in the digital video sector.

Negative Factors

Valuation Adjustment

The 12-month price target has been lowered to $24 from $26, which might suggest a more conservative valuation approach.

Banzai International Business Overview & Revenue Model

Company Description

Banzai International (BNZI) is a global technology company specializing in innovative solutions across various sectors, including consumer electronics, software development, and digital services. With a focus on cutting-edge technology, BNZI offers a diverse range of products and services, from smart home devices and mobile applications to enterprise software solutions designed to enhance productivity and streamline operations.

How the Company Makes Money

Banzai International generates revenue through multiple streams. Primarily, the company earns money by selling its consumer electronics, which include a wide array of smart devices and gadgets. Additionally, BNZI has a significant software division that generates income through software licensing and subscription-based models. The company also partners with other businesses to provide tailored digital solutions, which contributes to its consulting and service fees. BNZI's revenue is further augmented by strategic partnerships and collaborations that expand its market reach and customer base.

Banzai International Financial Statement Overview

Summary

Banzai International's financial performance shows significant challenges. Despite generating substantial revenue, the company has consistently reported negative net income and EBIT, indicating ongoing profitability issues. The balance sheet reveals a highly leveraged position with negative stockholders' equity, posing a significant risk. Cash flow analysis indicates severe challenges, with persistent negative operating and free cash flows.

Income Statement

Banzai International's financial performance shows significant challenges. Despite generating substantial revenue in the most recent year, the company has consistently reported negative net income and EBIT, indicating ongoing profitability issues. The gross profit margin is relatively high, suggesting effective cost management at the production level, but the negative net profit margins highlight broader operational inefficiencies. Revenue growth has been volatile, further complicating the financial outlook.

Balance Sheet

The balance sheet reveals a highly leveraged position with negative stockholders' equity, which poses a significant risk to financial stability. The debt-to-equity ratio is alarming due to the negative equity, and the equity ratio is negative, indicating that liabilities exceed assets. The company's financial structure is risky, with high liabilities relative to assets and equity, suggesting vulnerability to financial distress.

Cash Flow

Cash flow analysis indicates severe challenges, with persistent negative operating and free cash flows, suggesting that the company is struggling to generate sufficient cash from its core operations. The free cash flow to net income ratio is negative, highlighting inefficiencies in converting net income into cash. The operating cash flow to net income ratio further underscores the difficulty in maintaining liquidity and financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.53M	4.56M	5.33M	5.21M	0.00
Gross Profit	3.10M	3.11M	3.37M	3.13M	0.00
EBITDA	-28.30M	-8.67M	-12.93M	-7.87M	-6.05M
Net Income	-31.51M	-14.41M	-15.47M	-9.98M	-6.05M
Balance Sheet
Total Assets	25.67M	5.29M	5.48M	231.00M	232.28M
Cash, Cash Equivalents and Short-Term Investments	1.09M	2.09M	1.02M	711.65K	1.72M
Total Debt	12.50M	16.40M	14.20M	7.98M	0.00
Total Liabilities	28.44M	37.16M	29.59M	21.14M	34.05M
Stockholders Equity	-2.76B	-31.88M	-24.11M	209.86M	198.23M
Cash Flow
Free Cash Flow	-9.58M	-1.55M	-5.18M	-1.01M	-583.37K
Operating Cash Flow	-9.58M	-1.55M	-5.17M	-1.01M	-583.37K
Investing Cash Flow	82.22K	0.00	-10.81K	-3.57M	-230.00M
Financing Cash Flow	8.49M	2.62M	4.42M	11.42M	232.31M

Banzai International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNZI, the sentiment is Negative. The current price of 3.79 is below the 20-day moving average (MA) of 4.93, below the 50-day MA of 7.34, and below the 200-day MA of 14.70, indicating a bearish trend. The MACD of -1.05 indicates Negative momentum. The RSI at 28.50 is Positive, neither overbought nor oversold. The STOCH value of 27.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNZI.

Banzai International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$16.93B	11.67	9.79%	3.89%	11.83%	-7.56%
NXPL	53 Neutral	$23.37M	―	-49.11%	―	19.37%	-197.96%
SMSI	50 Neutral	$17.22M	―	-55.77%	―	-45.77%	67.69%
LDTCF	40 Underperform	$785.75K	―		―	―	―
BNZI	25 Underperform	$9.58M	―	67.54%	―	106.67%	16.74%

Banzai International Corporate Events

Banzai International Reports Strong 2024 Financial Growth

Banzai International reported significant financial growth for the year ending December 31, 2024, with a 267% increase in revenue to $16.7 million, surpassing their guidance by 67%. The company completed two acquisitions, ClearDoc and Vidello, and is in the process of acquiring Act-On Software, which is expected to further boost revenue. Banzai’s strategic initiatives have improved their financial position, with a focus on sustainable profitability and growth through innovative product launches and enhanced customer solutions.

Spark’s Take on BNZI Stock

According to Spark, TipRanks’ AI Analyst, BNZI is a Underperform.

Banzai International’s overall stock score is primarily dragged down by its poor financial performance, characterized by declining revenues, negative cash flows, and high leverage. While recent corporate events and some technical indicators show potential for future improvement, the current financial instability poses significant risks.

To see Spark’s full report on BNZI stock, click here.