Q2 2025 Banzai International inc Earnings Call

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Joe Davy: Let's capture the opportunities ahead. We have substantially scaled our customer base to over 140,000 customers, which covers some blue-chip names across a variety of sectors. Some of our key customers and partners include RBC Global Asset Management, which we recently expanded our contract with, as well as Cisco, Adobe, Thermo Fisher Scientific, UnitedHealth, Hewlett Packard Enterprise, Capital One, and thousands of others. We serve a variety of industries including healthcare, financial services, e-commerce, technology, and media, and we operate 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.

Joe Davy: Let's capture the opportunities ahead. We have substantially scaled our customer base to over 140,000 customers, which covers some blue chip names across a variety of sectors. Some of our key customers and partners include RBC Global Asset Management, which we recently expanded our contract with, as well as Cisco, Adobe, Thermo Fisher Scientific, UnitedHealth, Hewlett Packard Enterprise, Capital One, and thousands of others. We serve a variety of industries, including healthcare, financial services, e-commerce, technology, and media, and we operate 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.

Capture the opportunities ahead.

We have substantially scaled our customer base to over 140,000 customers, which covers some blue-chip names across a variety of sectors. Some of our key customers and partners include RBC Global Asset Management, with whom we recently expanded our contract, as well as Cisco, Adobe, Thermo Fisher Scientific, UnitedHealth, Hewlett Packard Enterprise Capital, and thousands of others. We serve a variety of industries, including healthcare, financial services, e-commerce, technology, and media. We operate 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.

Joe Davy: This drives additional data and content 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 into a single platform allows us to simplify our customers' workflows and deliver on our brand promise of 10 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 product. 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.

Joe Davy: This drives additional data and content 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 into a single platform allows us to simplify our customers' workflows and deliver on our brand promise of 10 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 product. 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.

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 content 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 into 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.

Joe Davy: 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 customer base, and second, by accelerating our path to profitability and scale and to hopefully benefit from multiple expansions along the way. I will now turn the call over to Dean Dito, Chief Financial Officer, to discuss our financial results.

Joe Davy: 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 customer base, and second, by accelerating our path to profitability and scale, and to hopefully benefit from multiple expansion along the way. I will now turn the call over to Dean Ditto, Chief Financial Officer, to discuss our financial results.

Our vision is to generate substantial long-term value by scaling inorganically. In addition to the growth of our existing product, our acquisition framework is centered around profitable. Businesses that align with bonds eyes, 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 Bonsai is twofold. First to increase our product capabilities by acquiring strategically aligned products that serve our customer base and second by accelerating our path to profitability and scale. And to, hopefully benefit from multiple expansion along the way.

Uh I will now turn the call over to Dean ditto Chief Financial Officer to discuss our financial results.

Dean Ditto: Thank you, Joe. Total revenue for Q2 2025 was $3.3 million, compared to $1.1 million in Q2 2024. We believe the non-GAAP metric annual recurring revenue, or ARR, is meaningful in evaluating the company's performance. ARR was $12.6 million for Q2 2025 and represents a 182% increase from $4.5 million in Q2 2024. Gross profit for Q2 2025 was $2.7 million, compared to $0.7 million in Q2 2024. Gross margin was 83% in Q2 2025, which is an increase of 1,390 basis points compared to 69.1% in Q2 2024.

Dean Dito: Thank you, Joe. Total revenue for the second quarter of 2025 was $3.3 million compared to $1.1 million in the second quarter of 2024. We believe the non-GAAP metric, annual recurring revenue, or ARR, is meaningful in evaluating the company's performance. ARR was $12.6 million for the second quarter of 2025 and represents a 182% increase from $4.5 million in the second quarter of 2024. Gross profit for the second quarter of 2025 was $2.7 million compared to $0.7 million in the second quarter of 2024. Gross margin was 83% in the second quarter of 2025, which is an increase of 1,390 basis points compared to 69.1% in the second quarter of 2024. Total operating expenses for the second quarter of 2025 were $7.4 million compared to $4.1 million in the second quarter of 2024.

Thank you, Joe.

Total revenue for the second quarter of 2025 was 3.3 million compared to 1.1 million in the second quarter of 2024, we believe the non-gaap metric annual recurring revenue or ARR is Meaningful and evaluating the company's performance.

ARR was 12.6 million for the second quarter of 2025 and represents 182% increase from 4.5 million in the second quarter of 2024.

Gross profit for the second quarter of 2025 was $2.7 million.

Compared to 0.7 million in the second quarter of 2024.

Gross margin was 83%. In the second quarter of 2025, which is an increase of 1,390 basis points compared to 69.1% in the second quarter of 2024.

Dean Ditto: Total operating expenses for Q2 2025 were $7.4 million compared to $4.1 million in Q2 2024. The increase in operating expenses were primarily due to the additions of the OpenReel and Vidello businesses and overall operating expenses. Net loss for Q2 2025 was $7.8 million compared to a net loss of $4.0 million in Q2 2024. For the three months ended 30 June 2025, adjusted EBITDA was a loss of $1.5 million, compared to a loss of approximately $1.5 million for the three months ended 30 June 2024.

Dean Dito: The increase in operating expenses was primarily due to the additions of the OpenRio and Videlo businesses and overall operating expenses. Net loss for the second quarter of 2025 was $7.8 million compared to a net loss of $4.0 million in the second quarter of 2024. For the three months ended June 30, 2025, adjusted EBITDA was a loss of $1.5 million compared to a loss of approximately $1.5 million for the three months ended June 30, 2024. Total revenue for the six months ended June 30, 2025 was $6.6 million, which was an increase of 209% compared to the prior year. Total cost of revenue for the six months ended June 30, 2025 was $1.2 million compared to $0.7 million in the prior year quarter, which was an increase of 63%. The increase was less than proportional to the revenue for the corresponding period, resulting in improved gross profit.

Total operating expenses for the second quarter of 2025 were 7.4 million compared to 4.1 million dollars in the second quarter of 2024.

The increase in operating expenses was primarily due to the additions of the open reel and video businesses, as well as overall operating expenses.

Net loss for the second quarter of 2025 was $7.8 million, compared to a net loss of $4.0 million in the second quarter of 2024.

For the three months ended June 30, 2025, adjusted EBITDA was a loss of $1.5 million, compared to a loss of approximately $1.5 million for the three months ended June 30, 2024.

Dean Ditto: Total revenue for the six months ended 30 June 2025 was $6.6 million, which was an increase of 209% compared to the prior year. Total cost of revenue for the six months ended 30 June 2025 was $1.2 million compared to $0.7 million in the prior year quarter, which was an increase of 63%. The increase was less than proportional to the revenue for the corresponding period, resulting in improved gross profit. Gross profit excuse me, six months ended 30 June 2025 was $5.5 million compared to $1.4 million in the prior year period.

Total revenue for the 6 months, ended June 30th 2025.

was $6.6 million, which was an increase of 209% compared to the prior year.

Total cost of revenue for the 6 months, ended June, 30 2025 was 1.2 million.

The increase was less than proportional to the revenue for the corresponding period resulting in improved gross profit.

Dean Dito: Gross profit for the year ended June or for the, excuse me, six months ended June 30, 2025 was $5.5 million compared to $1.4 million in the prior year period. Gross margin was 82.5% in the first half of 2025 compared to 66.9% for the first half of 2024. Total operating expenses for the six months ended June 30, 2025 were $15.1 million compared to $8.2 million in the prior year period. The increase in operating expenses was primarily due to the additions of the OpenRio and Videlo businesses and overall operating expenses. Net loss for the six months ended June 30, 2025 was $11.4 million compared to $8.2 million in the prior year period. Adjusted EBITDA for the six months ended June 30, 2025 was $3.7 million compared to adjusted EBITDA of $3.5 million for the prior year period.

Gross profit for the year. Ended. June, or for the? Excuse me, 6 months, ended June 30th 2025.

Was 5.5 million.

Compared to 1.4 million.

Dean Ditto: Gross margin was 82.5% in H1 2025 compared to 66.9% for H1 2024. Total operating expenses for the six months ended 30 June 2025 were $15.1 million compared to $8.2 million in the prior year period. The increase in operating expenses was primarily due to the additions of the OpenReel and Vidello businesses and overall operating expenses. Net loss for the six months ended 30 June 2025 was $11.4 million compared to $8.2 million in the prior year period. Adjusted EBITDA for the six months ended 30 June 2025 was $3.7 million, compared to adjusted EBITDA of $3.5 million for the prior year period.

In the prior year period, gross margin was 82.5% in the first half of 2025 compared to 66.9% for the first half of 2024.

Total operating expenses for the 6 months, ended June 30th, 2025 or 15.1 million.

Compared to 8.2 million in the prior year period.

The increase in operating expenses was primarily due to the additions of the open reel in video businesses and overall operating expenses.

Net loss for the 6 months, ended June 30th 2025 was 11.4 million.

Compared to 8.2 million in the prior year period.

Adjusted EBIT for the six months ended June 30, 2025, was $3.7 million compared to adjusted EBITDA of $3.5 million for the prior year period.

Dean Ditto: Net cash used in operating activities for the six months ended 30 June 2025, was $9.0 million, compared to $3.8 million for the six months ended 30 June 2024. Cash totaled $2.3 million as of 30 June 2025, compared to $0.7 million as of 31 March 2025. I'll now turn the call back to Joe for some closing remarks.

Dean Dito: Net cash used in operating activities for the six months ended June 30, 2025 was $9.0 million compared to $3.8 million for the six months ended June 30, 2024. Cash totaled $2.3 million as of June 30, 2025, compared to $0.7 million as of March 31, 2025. I'll now turn the call back to Joe for some closing remarks.

Net cash used in operating activities for the 6 months. Ended, June 30th 2025 was 9.0 million compared to 3.8 million for the 6 months. Ended June 30th 2024.

Cash total was $2.3 million as of June 30, 2025, compared to $0.7 million as of March 31, 2025.

Joe Davy: Thank you, Dean. We're seeing solid revenue growth across our business at much higher gross margin. Operationally, we're in a great place as we're positioned for improved results and cash position in 2025. We've worked diligently to strengthen our balance sheet and stockholders' equity, increasing our cash and liquidity to advance long-term growth. Our debt facility is also available to support acquisitions and ongoing operations. We have an expanded suite of synergetic products that drive real value for our massive customer base and the right team to achieve our objectives. We're very focused on generating sustainable value for our shareholders, and I look forward to providing additional updates throughout the year. Thank you, everyone, for attending, and I would now like to answer your questions. And I'll just provide some instructions here.

Joe Davy: Thank you, Dean. We're seeing solid revenue growth across our business at much higher gross margin. Operationally, we're in a great place as we're positioned for improved results and cash position in 2025. We've worked diligently to strengthen our balance sheet and stockholders' equity, increasing our cash and liquidity to advance long-term growth. Our debt facility is also available to support acquisitions and ongoing operations. We have an expanded suite of synergetic products that drive real value for our massive customer base and the right team to achieve our objectives. We're very focused on generating sustainable value for our shareholders, and I look forward to providing additional updates throughout the year. Thank you everyone for attending, and I would now like to answer your questions. I'll just provide some instructions here.

I'll now turn the call back to Joe for some closing remarks.

Thank you, Dean.

Uh, we're seeing solid revenue growth, uh, across our business at much higher gross margin.

Operationally, we're in a great place as we're positioned for improved results and cash position in 2025. We've worked diligently to strengthen our balance sheet and stockholders Equity. Increasing our cash and liquidity to advance long-term growth.

Our debt facilities available to support Acquisitions and ongoing operations.

We have an expanded Suite of synergetic products that drive real value for our massive customer base and the right team to achieve our objectives. We're very focused on generating, sustainable value for our shareholders. And I look forward to providing additional updates throughout the year.

Uh, thank you everyone for attending and I would now like to answer your questions.

Joe Davy: If you wanna put questions in the chat, as I see some of you already have, we will mark those. We'll bring them up on the screen, either Dean or I will address them. First question is from Howard at Taglich. Thanks, Howard. What is your sales cycle for mid-market and enterprise customers? When do you anticipate that your new team beginning to drive sequential revenue growth? Will you be able to continue reducing operating expenses sequentially over the next few quarters? That's a great question. Thank you, Howard. You know, we've seen the sales cycle can vary.

Joe Davy: If you want to put questions in the chat, as I see some of you already have, we will mark those. We'll bring them up on the screen, and then either Dean or I will address them. So, first question is from Howard at Taglich. Thanks, Howard. What is your sales cycle for mid-market and enterprise customers? When do you anticipate that your new team beginning to drive sequential revenue growth, will you be able to continue reducing operating expenses sequentially over the next few quarters? That's a great question. Thank you, Howard. You know, we've seen the sales cycle can vary, especially depending on the size of the account. So, you know, we have some deals that we're, you know, in the works that we think are very, very meaningful potentially, but could be, you know, one year plus sales cycles.

Um, and I'll just provide some instructions here. Uh, if you want to put, uh, questions in the uh, chat.

Uh, as I see some of you already have.

uh, we will Mark those, we'll bring them up on the screen and then uh, either Dean or I will address them.

Joe Davy: especially depending on the size of the account. You know, we have some deals that we're, you know, in the works that we think are very meaningful potentially, but could be, you know, 1 year plus sales cycles. A lot of our kinda mid-market sales cycle comes in between 30 and 60 days. Obviously, you know, we have a lot of customers that will also buy directly from us online, so maybe they'll, you know, buy self-serve, and then they'll upgrade over time, or maybe our account management team will get involved and help them upgrade over time. You know, I think it's a meaningful shift to our business model from a year ago.

So, uh, first question, uh, is from Howard? Uh, at taglich. Thanks, Howard. Uh, what is your sales cycle for mid-market and Enterprise customers? Uh, when do you anticipate that your new team beginning to drive? Uh, sequential Revenue growth, will you be able to continue reducing operating expenses sequentially over the next few quarters? Uh, that's a great question. Thank you, Howard. Um, you know, we've seen the sales cycle can vary, uh, especially depending on, uh, the, the size of the account. So, you know, we have, uh, some deals that we are, you know, in the works that we think are very, very meaningful potentially.

Joe Davy: A lot of our kind of mid-market sales cycle comes in between 30 and 60 days. So, and then obviously, you know, we have a lot of customers that will also buy directly from us online. So maybe they'll, you know, buy self-serve and then they'll upgrade over time, or maybe our account management team will get involved and help them upgrade over time. So that's, you know, I think a very meaningful, you know, I think it's a meaningful shift to our business model from a year ago. We're now seeing much larger deals sitting in our pipeline. We're starting to see pipeline growth of those deals. And, you know, this is really why Michael is a part of the team now and Matt and some of the other, you know, folks is really just to focus on driving that additional pipeline and driving additional organic growth.

Um but could be, you know, 1 year plus sales Cycles. Um a lot of our kind of mid-market sales cycle comes in between 30 and 60 days. So uh, and then obviously, you know, we have a lot of customers that will also buy directly from Us online, so maybe they'll, uh, you know, buy self-serve and then they'll upgrade uh, over time or maybe our account management team will get involved and help them upgrade over time. Um, so that's, uh, uh, so that's, uh, you know, I think a very, uh, meaningful, um,

Joe Davy: We're now seeing much larger deals, sitting in our pipeline. We're starting to see pipeline growth of those deals. You know, this is really why Michael is a part of the team now, and Matt and some of the other, you know, folks, is really just to focus on driving that additional pipeline and driving additional organic growth. You know, we're really pleased with, you know, how that's going so far. When do you anticipate your new team beginning to drive sequential revenue growth? You know, we'll see. I think the team is making progress on this already. Michael's been on board for a couple of months now, I think. He's started to make some changes in the team.

Joe Davy: And, you know, we're really pleased with, you know, how that's going so far. When do you anticipate your new team beginning to drive sequential revenue growth? You know, we'll see. I think that the team is making progress on this already. Michael's been on board for a couple of months now, I think. So he's started to make some changes in the team. I think some of those things are starting to bear fruit. And, you know, I think he's doing everything he needs to be doing right now. So really supportive of the work that he's doing. Will you be able to continue reducing operating expenses sequentially over the next few quarters? Yeah, look, I think, you know, maybe I'll let Dean chime in on this, but, you know, my view on this is even more important than operating expenses is, I think, cost of capital.

And, you know, we're we're really uh, pleased, uh, with you know how that's going so far.

Um,

Joe Davy: I think some of those things are starting to bear fruit. You know, I think he's doing everything he needs to be doing right now. Really supportive of the work that he's doing. Will you be able to continue reducing operating expenses sequentially over the next few quarters? Yeah, look, I think, you know, maybe I'll let Dean chime in on this. You know, my view on this is, even more important than operating expenses is, I think, cost of capital. We definitely anticipate being able to bring that down. I think that will make a direct bottom line impact and, you know, probably will be the, you know, from our perspective, we can reduce cost of capital.

when do you anticipate your new team beginning to drive, sequential Revenue growth? Um, you know, we'll, we'll, we'll see. Uh, I think that the team is making progress, uh, on this already. Uh, Michael's been on board for, uh, couple of months now, I think. Uh, so, he's, he started to make some changes in the team. I think some of those things are starting to bear fruit, um, and, and, uh, you know, I think he's, he's doing everything he needs to be doing right now, uh, so really supportive of, uh, of the work that he's doing.

Joe Davy: And we definitely anticipate being able to bring that down. And I think that will make a direct bottom line impact and, you know, probably will be the, you know, from our perspective, we can reduce cost of capital. That's much better than reducing operating expenses. So I think we'd much like to, much rather like to see, you know, an increase in net income coming from reduced cost of capital and revenue growth versus, you know, necessarily coming from, you know, OpEx cuts at this moment. Dean, is there anything you want to add to that?

Um, will you be able to uh continue reducing operating expenses sequentially over the next few quarters? Yeah, look, I think um, you know, maybe I'll let Dean chime in on this. But, you know, my view on this is um, even more important than operating expenses is, I think, uh, cost of capital. And we definitely anticipate being able to bring that down, um, and I think that will make a direct bottom line impact and, you know, probably will be, uh, the, you know, the the.

Joe Davy: That's much better than reducing operating expenses. I think we'd much rather like to see, you know, increase in net income coming from reduced cost of capital and revenue growth versus, you know, necessarily coming from, you know, OpEx cuts at this moment. Dean, is there anything you want to add to that?

Dean Dito: Yeah, I would just build on what Joe just said. And, you know, as the company continues in its growth phase, I do think we'll very selectively add resources where we need to. I also think, yes, we are finding line items right now in our cost stack where we can continue to find efficiencies, especially with businesses that we've onboarded where we need to combine service providers and look for efficiencies there. So there certainly are opportunities, and we're working very hard to achieve those.

Dean Ditto: Yeah. I would just build on what Joe just said. You know, as the company continues in its growth phase, I do think we'll very selectively add resources where we need to. I also think, yes, we are finding line items right now in our cost stack where we can continue to find efficiencies, especially with businesses that we've onboarded where we need to combine service providers and look for efficiencies there. There certainly are opportunities, and we're working very hard to achieve those.

From our perspective, we can reduce cost of capital. Um, that's much better than reducing operating expenses. So I I think we'd much like much rather like to see you know increase in net income coming from reduced cost of capital and revenue growth versus you know, necessarily coming from, you know, Opex cuts at this moment. Dean is there anything you want to add to that?

Yeah, we just build on um what Joe just said.

and and, you know, as the company continues in its growth phase, uh, I I do think, um, will vary, um selectively, add resources, where we need to

I also think, uh, you

We are, um, finding line items right now in our, uh, cost, um, stack where we can continue to find efficiencies, um, especially with businesses that we've on boarded where we need to, uh, combined service providers and look for efficiencies there. So, there, there certainly are opportunities, um, and we're working very hard to achieve those.

Joe Davy: Yeah. Thanks, Dean. Thanks, thanks, Howard. Really appreciate the questions. Here's a question from Jackson. I'm gonna pull this up on the screen. What's ARR growth normalized for each acquisition? You know, I'll say, we're targeting ARR growth in the 20% to 30% range over the next year, normalized for acquisitions. I think we may see it outpace that, depending on what happens with acquisitions, but that's, you know, obviously gonna be lumpy. We'll see. You know, I think one of the reasons that we brought in, you know, Michael and Matt is, you know, they've both had experience taking businesses from the stage that we are at right now to the $100 million stage and doing that in a 3 to 5-year period.

Joe Davy: Yeah, thanks, Dean. And thanks, thanks, Howard. Really appreciate the questions. Here's a question from Jackson. I'm going to pull this up on the screen. What's ARR growth normalized for each acquisition? You know, I'll say we're targeting ARR growth in the 20 to 30% range over the next year, normalized for acquisitions. So I think we may see it outpace that depending on what happens with acquisition, but that's, you know, obviously going to be lumpy. But we'll see. You know, I think one of the reasons that we brought in, you know, Michael and Matt is, you know, they've both had experience taking businesses from the stage that we are at right now to the $100 million stage and doing that in a three to five-year period. And so that's kind of what we're looking to do here.

Yeah, thanks Dean.

Um,

And thanks. Uh, thanks, Howard. I appreciate the questions.

um,

Here's a question from Jackson. I'm going to pull this up on the screen. What's our growth normalized for each acquisition? You know, I'll say, um,

Joe Davy: That's kinda what we're looking to do here. You know, I think our internal target is to get this organically to $50 million in the next 3 years, but, you know, there's a lot of work that goes into that. There's a lot of work to be done. You know, the team is definitely, you know, working on scaling, you know, working on closing, you know, new relationships. I think if you look at the customer slide that we showed earlier, a lot of new logos on that slide compared to compared to last quarter. We wanted to highlight who some of those new customers are. You know, we're really excited about what the team's doing, but, you know, I think there's gonna be work going into this.

Joe Davy: You know, I think our internal target is to get this organically to $50 million in the next three years, but, you know, there's a lot of work that goes into that. And there's a lot of work to be done. You know, the team is definitely, you know, working on scaling, you know, working on closing, you know, new relationships. I think if you look at the customer slide that we showed earlier, a lot of new logos on that slide compared to last quarter. So we wanted to highlight who some of those new customers are. So, you know, we're really excited about what the team's doing, but, you know, I think there's going to be work going into this. But that organic growth is an important focus for us. So thank you for the question. Let me see, just going through questions here.

We're, we're targeting. Uh, uh, ARR growth in the 20 to 30% range, uh, over the next year, normalized for Acquisitions. So, I think we may see it outpaced that, um, depending on what happens with Acquisitions. But that's, you know, obviously going to be lumpy. Um, but we'll see, you know, I think, uh, 1 of the reasons that we brought in, uh, you know, Michael, uh, and Matt is, you know, they both had experience taking businesses from the stage that we are at right now to the hundred million dollar stage um and doing that in a 3 to 5 year period and so that's kind of what we're looking to do here. Um you know I think our our internal Target is to get this organically to 50 million dollars in the next 3 years. But you know, there's a lot of work that goes into that uh and there's a lot of uh there's a lot of work to be done, you know. The team is uh definitely you know working on scaling.

Um, you know, we're working on closing new relationships. I think if you look at the customer slide that we showed earlier, there are a lot of new logos on that slide compared to, uh,

Compared to last quarter. So we wanted to highlight who some of those new customers are. So you know we're really excited about what the team's doing. But uh

Joe Davy: That organic growth is an important focus for us, so thank you for the question. Let me see. Just going through questions here. There's a question from Muhammad. Can there be development and profitability with the urgent time? I think, you know, first of all, absolutely. I think when you look at our adjusted EBITDA, which is basically, in a sense, kind of the way that we look at kind of normalized cash flow, you know, this was pretty flat from last quarter, and I think it is getting pretty small. We think, you know, just a slight nudge up will get this into positive at this point. Dean and I are working really hard on options for how to make that happen.

You know, I think there's there's going to be work uh, going into this but uh, that that organic growth is an important Focus for us. So thank you for the question.

Um, let me see just going through questions here.

Um,

Joe Davy: So here's a question from Mohammed. Can there be development of profitability with the urgent time? I think, you know, first of all, absolutely. I think when you look at our adjusted EBITDA, which is basically, in a sense, kind of the way that we look at kind of normalized cash flow, you know, this was pretty flat from last quarter. And I think it is getting pretty small. And so we think, you know, just a slight nudge up will get this into positive at this point. And Dean and I are working really hard on options for how to make that happen. And we think we have some, we think we have some good options there that we're pursuing right now. So we're excited to keep making progress towards that, and we'll keep you guys updated about that as we go. Thanks for the question.

Joe Davy: We think we have some good options there that we're pursuing right now. We're excited to keep making progress towards that, and we'll keep you guys updated about that as we go. Thanks for the question. Here's a question from Patrick. Total diluted shares. You know, Patrick, I actually don't know the number off the top of my head. I would refer you to the 10-Q, which has a complete breakdown of this embedded in it. You know, Dean can maybe tell you if he has a better answer than that, but I know we have a breakdown of it in the 10-Q.

So, uh, we're excited to keep making progress towards that, and we'll keep you guys updated about that as we go.

thanks for the question.

Um,

Joe Davy: Here's a question from Patrick. Total diluted shares. You know, Patrick, I actually don't know the number off the top of my head. I would refer you to the 10-Q, which has a complete breakdown of this embedded in it. You know, Dean can maybe tell you if he has a better answer than that, but I know we have a breakdown of it in the 10-Q.

Here's a question from Patrick total diluted shares. Um, you know, Patrick, I I I actually don't know the number off, the top of my head, I would refer you to the 10 Q which has a, uh,

Dean Dito: Yeah. Yeah, that 10-Q is filed and available. So I would say take a look there and certainly happy to follow up with any additional questions one-on-one.

Dean Ditto: Yeah. Yeah, that 10-Q is filed and available, I would say take a look there, and certainly happy to follow up with any additional questions one-on-one.

A complete breakdown of this um uh embedded in it. Um, you know, Dean can can maybe, uh, tell you if he has a better answer than that. But uh, I know we have a breakdown of it uh, in the, in the 10 e.

Joe Davy: Yeah, if you want to reach out to, I'll just advance the slide here so you can see. If you want to reach out to Chris Tyson here, there's their email address as our investor relations group. If you have a specific question that doesn't get answered in the Q, let us know and we can help you with that. Thank you for the question. And I think this is a follow-up question here from Patrick. So thanks, Patrick. So what's revenue retention on the two acquisitions? Have they driven any organic revenue on their own without counting the cross sales? So, so first of all, you know, we've been acquiring new customers across both of these products. We're pleased with how that's going.

Joe Davy: Yeah. If you wanna reach out to, I'll just advance the slide here so you can see. If you wanna reach out to Chris Tyson here, there's their email addresses, our investor relations group. If you have a specific question that doesn't get answered in the queue, let us know, and we can help you with that. Thank you for the question. I think this is a follow-up question here from Patrick. Thanks, Patrick. What's revenue retention on the two acquisitions? Have they driven any organic revenue on their own without counting the cross sales? First of all, You know, we've been acquiring new customers across both of these products. We're pleased with how that's going.

Yeah. Yeah, that 10 Q is filed and available. So I I would I would say take a look there and uh certainly happy to follow up with any additional questions. Uh, 1-on-1.

yeah, if you want to reach out to, um,

um, I'll, I'll just Advance the slide here so you can see if you want to reach out to Chris Tyson here. Uh, there's their email, addresses are investor relations group. You have a specific question that that doesn't get answered in the queue. Let us know and we can help you with that. Uh, thank you for the question.

uh,

and I think this is a

Uh, follow-up question here from Patrick. Uh so thanks Patrick.

Joe Davy: I think, you know, as with anything in the recurring revenue business, you know, it takes time when a customer's acquired to then recognize that revenue and start to see that inflection pick up. So, you know, hopefully we'll start to see that reflected more and more coming up. But I think, again, with the revenue retention, I would direct you to the 10-Q, but we feel pretty good about how it's going overall on an annual basis. And I think, especially in that core customer segment, we feel pretty good about it right now. And then here's a question from Paul. Thanks, Paul. So revenue is quite low with many customers. How do you drive revenue up significantly? You need to move forward quickly as your very low revenue stream and margins. Percentage increase cannot be considered yet. Stock with a reverse is very low on a 52-week range.

Joe Davy: I think you know, as with anything in the recurring revenue business, you know, it takes time when a customer's acquired to then recognize that revenue and start to see that inflection tick up. You know, hopefully we'll start to see that reflected more and more coming up. I think again, with the revenue retention, I would direct you to the 10-Q, but we feel pretty good about how it's going overall on manual basis. I think especially in that core customer segment, we feel pretty good about it right now. Here's a question from Paul. Thanks, Paul. Revenue's quite low with many customers. How do you drive revenue up significantly?

Um, so what's Revenue retention on the 2 Acres? Have they driven any organic revenue on their own without counting across sales? Uh, so, so, so first of all, uh, that you know, we we've been acquiring new customers, uh, across both of these products. Um, we're we're pleased with how that's going. I think, you know, as with anything in the recurring Revenue business. Uh, you know, it takes time when a customer's acquired to then recognize that revenue and start to see that inflection, um, pick up so, you know, hopefully we'll start to see that, um, reflected more and more, um,

Uh, coming up. Uh, but uh, I think again with the revenue retention, I would I direct you to the to the, you know, 10 Q. Uh, but we we feel pretty good about how it's going overall on manual basis. Um, and I think especially in that core customer segments. Uh, we feel pretty, pretty good about it right now.

Um,

And then uh, here's a question from Paul.

Joe Davy: You need to move forward quickly as your very low revenue stream margins, percentage increase cannot be considered yet. Stock with a reverse is very low on a 52-week range. Let me start from the end of that and work backwards. First of all.

Joe Davy: So let me start from the end of that and work backwards. First of all, I agree that the stock is very low on a 52-week range. I think it's, you know, low compared to comps in our space right now. And I think, you know, you look at all the progress we've delivered over the last year, you look at all the progress we've delivered to stockholders' equity, to revenue, to gross profit, et cetera. You know, we intend to, you know, keep pushing up on that. And, you know, when you're on an elevator and you're trying to go from the basement to the 100th floor, you know, you got to go past the 10th floor on the way up there. And that's what we're doing right now.

Dean Ditto: Yeah

Joe Davy: I agree that the stock is very low on a 52-week range. I think it's, you know, I think it's, you know, low compared to comps in our space right now. I think, you know, you look at all the progress we've delivered over the last year, you look at all the progress we've delivered to stockholders' equity, to revenue, to gross profit, et cetera, you know, we intend to, you know, keep pushing up on that. You know, when you're on an elevator and you're trying to go from the basement to the 100th floor, you know, you gotta go past the 10th floor on the way up there, and that's what we're doing right now.

Joe Davy: So I think we've made a lot of good progress over the last 12 months and some continued progress even in the last quarter. And I think we're going to continue to hopefully see that. So, you know, we appreciate, you know, everybody's support as a part of that because I agree with you. I think that the stock is low on a 52-week range right now when you look at comps. You know, to address your question on the margins, I'm not sure I agree with you about, you know, the revenue being low on the margins. I think the 82, I think, you know, 83%, this is a 1% increase from last quarter. This is a, you know, close to 1,400 bps increase over the last year. So I think we've seen the margins improve pretty dramatically.

Joe Davy: I think we've made a lot of good progress over the last 12 months, and some continued progress even in the last Q, and I think we're gonna continue to hopefully see that. You know, we appreciate everybody's support as a part of that, 'cause I agree with you. I think that the stock is low on a 52-week range right now when you look at comps. You know, to address your question on the margins, I'm not sure I agree with you about, you know, the revenue being low on the margins. I think, you know, 83%, this is a 1% increase from last Q.

Um, thanks Paul. Uh, so revenue is quite low with many customers. How do you drive Revenue up significantly? You need to move forward. Quickly, as you're very low Revenue stream and margins, uh, percentage increase, cannot be considered yet stocked with a reverse is very low on a 52 week range. So, let me start from the back, let me start from the end that has worked backwards. Um, first of all, I agree that the stock is very low on a 52 week range. I think it's, you know, uh I think it's, you know, low compared to comps um, and our space right now and I think uh, you know, you look at all the progress. We've delivered over the last year. You look at all the progress. We've delivered to stockholders Equity to revenue to, to gross profit. Etc, you know, uh, we we intend to, you know, keep pushing, uh, pushing up on that and you know when when you're on an elevator and you're trying to go from the basement to the 100th Floor, you know, you got to go past the 10th floor on the way up there and that's what we're doing right now. So um, I think we've made a lot of good progress uh, over the last 12 months. Um,

And some continued progress and even in the last quarter, and I think we're going to continue to, to, hopefully see that. Uh, so, uh, you know, we we appreciate, uh, you know, everybody's support as a part of that because I agree with you, I think that the, um, I think that the stock is, is low on a 52 week range, right now, when you look at comps,

um,

Joe Davy: This is a, you know, close to 1,400 BPS increase over the last year. I think we've seen the margins improve pretty dramatically. I think margins in that range are, you know, pretty decent when you compare them to comps across the SaaS industry. I think we do expect to see those margins, you know, move up a little bit more, maybe into the, you know, 84% range, you know, over the next couple of quarters. We'll see how that goes. You know, we're pretty happy with the margins as they are. Obviously, yeah, we want the revenue to keep increasing.

Joe Davy: I think margins in that range are, you know, pretty, pretty decent when you compare them to comps across the SaaS industry. I think we do expect to see those margins, you know, move up a little bit more, maybe into the, you know, 84% range, you know, over the next couple of quarters. We'll see how that goes. But, you know, we're pretty happy with the margins as they are. Obviously, yeah, we want the revenue to keep increasing. So, you know, to answer your question about that, you know, I think what we've seen over the last year in Q2, we've seen a surge of, you know, we've seen, you know, many, many new kind of core customers come in, but we've also seen a lot of smaller ones come in.

Joe Davy: You know, to answer your question about that, you know, I think what we've seen over the last, you know, in Q2, we've seen a surge of, you know, we've seen, you know, many, new kind of core customers come in, but we've also seen a lot of smaller ones come in. A lot of these small customers, the pattern is, you know, the customer might come in for a very small initial purchase price on a self-serve basis, and then they're going to, you know, upgrade over time, they're going to expand over time. You know, our business model isn't just about that initial revenue that comes when we bring in a new customer. It's really about, you know, seeing those customers expand over time too.

you know, to address your question, uh, on the margins. Uh, I I I'm not sure I agree with you about, uh, you know, the, the revenue, uh, being low on the margins. I think the 82, I think, you know, 83%, uh, this is a 1% increase from last quarter. This is a, uh, you know, close to 1400 bips, uh, increase over the last year. So I think we've seen the margins improve pretty dramatically. I think, margins in that range are are, you know, pretty pretty decent. Uh, when you compare them to comps um, across industry. Um, I think we do expect to see those margins, you know, move up, uh, a little bit more maybe into the, you know, 84% range. Um, you know, over the next couple of quarters, uh, we'll see how that goes. But you know, we're, we're pretty happy with the margins as they are obviously. Yeah. We want the revenue to, to keep increasing. So, you know, to answer your question about that, you know, I think what we've seen over the last, um,

Joe Davy: And a lot of these small customers, the pattern is, you know, the customer might come in for a very small initial purchase price on a self-serve basis, and then they're going to, you know, upgrade over time. They're going to expand over time. And so, you know, our business model isn't just about that initial revenue that comes when we bring in a new customer. It's really about, you know, it's really about seeing those customers expand over time too. And we've got a pretty good playbook for how to do that. And I think Michael and his team are really focused on that right now. We've made a couple of key additions there that are just focused on driving customer expansion right now.

Kind of core customers come in. But we've also seen a lot of smaller ones come in and a lot of these small customers the pattern is you know the customer might come in for a very small initial purchase price on a self-serve basis and then they're going to you know upgrade over time they're going to expand over time and so you know our our business model isn't just about that initial Revenue that comes when we bring in a new customer. Uh, it's really about uh,

Joe Davy: We've got a pretty good playbook for how to do that, and I think Michael and his team are really focused on that right now. We've made a couple of key additions there that are just focused on driving customer expansion right now. We're expecting to see, you know, not, you know Kinda phase 1 is gotta plumb in, we call this the more beers and bigger bottles approach. You know, we wanna plumb in new customers, and then over time see those customers grow. You know, we're seeing the customer number grow. That's great. You know, we would hope that the customer, you know, that the customer expansion will follow that. Thank you for the question.

Joe Davy: So we're expecting to see, you know, not, you know, kind of phase one is got to plumb in, you know, we call this the more beers and bigger bottles approach. But, you know, we want to plumb in new customers and then, and then over time see those customers grow. So, you know, we're seeing the customer number grow. That's great. You know, we would hope that the customer, you know, that the customer expansion will follow that. So thank you for the question. I think we have time for one more question here, which is from Adam Dix. Thanks, Adam. With such high-profile clients and partners, do you foresee any additional expansion agreements like what you've seen with RBC? Is that something of focus at this time? I mean, you know, you know, absolutely, it's a focus for us.

You know, it's really about seeing those customers expand over time too. And we've got a pretty good playbook for how to do that and I think Michael and his team are are uh, really focused on that. Right now, we've made a couple of key additions there, uh, that are just focused on driving customer expansion. Uh, right now. So we're we're expecting to see, you know, not, you know, kind of phase 1 is you got to plumb in, you know, we we we call this the more beers and bigger bottles approach. Uh but you know we want to we want to plumb in new customers, uh, and then and then over time, see those customers grow. So, uh, you know, we're seeing the customer number grow, that's great. Um, you know, we would hope that the, that the, uh, uh, customer, uh, that, you know, that the, that the uh, customer expansion will follow that.

Um, so thank you for the question.

Joe Davy: I think we have time for one more question here, which is from Adam Dix. Thanks, Adam. With such high-profile clients and partners, do you foresee any additional expansion agreements like what we've seen with RBC? Is that something of focus at this time? I mean, you know, you know, absolutely, it's a focus for us. I think, you know, customer expansion, both just from cross-sales and also from adding new seats, adding new, you know, upgrading users to higher tiers, all that is a big priority for our team, both customer marketing and account management. Michael has already gotten in there, started to do a lot of work on improving our processes there. Some of our processes were already really good.

Uh, I think we have time for 1 more question here.

Uh, which is from Adam dixs. Thanks, Adam.

Um, with such high-profile clients and partners, do you foresee any additional expansion agreements? Like what we've seen with RBC, is that something, uh, a focus at this time? I mean, uh, you know,

Joe Davy: I think, you know, customer expansion both just from cross sales and also from adding new seats, adding new, you know, upgrading users to higher tiers, all that is a big priority for our team, both customer marketing and account management. Michael has already gotten in there, started to do a lot of work on improving our processes there. Some of our processes were already really good. Some of them, you know, need some additional work. You know, I think there's a lot of, I think there's a lot of low-hanging fruit for Michael in what he's doing. And that's exactly why we brought somebody like that on to help support that. So, so yeah, we hope to see more of those coming down the line. And, you know, we'll see what happens. Thanks for the question. Okay.

Joe Davy: Some of them, you know, need some additional work. you know, I think there's a lot of low-hanging fruit for Michael in what he's doing, and that's exactly why we brought somebody like that on to help support that. so yeah, we hope to see more of those coming down the line, and, you know, we'll see what happens. Thanks for the question. Okay. you know, I'd like to thank everyone for joining the conference call today. Look forward to continuing to update you on our ongoing achievements, innovations, and growth. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group. Their information is on the screen here.

You know, absolutely, it's a focus for us. Um, I think you know customer expansion both just from Cross sales and also from adding new seats adding new, you know, you know, upgrading users a higher tiers. Um, all that is, is a big priority for our team, both customer marketing and, uh, account management. Uh, Michael has already gotten in there, started to do a lot of work, uh, on improving our processes there. Um, some of our processes were already really good. Some of them, you know, need some additional work. Um, you know, I think there's a lot of, uh, I think there's a lot of low-hanging fruit for Michael, uh, and and what he's doing. And that's exactly why we brought somebody like that on, uh, to help support that. So, um, uh, so so yeah. We we, we hope to see more of those, uh, coming down the line. Uh, and, and, you know, we'll see what happens.

Uh, thanks for the question.

Uh,

Joe Davy: You know, I'd like to thank everyone for joining the conference call today. Look forward to continuing to update you on our ongoing achievements, innovations, and growth. If we were unable to answer any of your questions, please reach out to our IR firm, MZ Group. Their information is on the screen here. They'll be more than happy to assist and direct those questions to us or answer themselves if they can. Thank you very much.

Okay. Um,

Joe Davy: They'll be more than happy to assist and direct those questions to us or answer them themselves if they can. Thank you very much.

you know, I'd like to thank everyone for joining the conference call today, uh, look forward to continuing to update you on our ongoing, achievements Innovations and growth. Um, if we were unable to answer any of your questions, please reach out to our IR, for MZ group. Their information is on the screen here. Uh, they will be more than happy to assist, uh, and direct those questions to us or answer themselves if they can.

Uh, thank you very much.