v3.25.3
Segment Reporting
 6 Months Ended 12 Months Ended
Jun. 30, 2025
Dec. 31, 2024
Segment Reporting [Abstract]    
Segment Reporting

19. Segment Reporting

 

The Company has three reportable operating segments, Banzai Operating Co, Inc., Banzai Reel Acquisition Inc. (OpenReel), and Vidello Limited (Vidello). The Company’s segments deliver SaaS tools that leverage data, analytics, and AI to provide marketing and sales solutions, including video production and editing, for businesses of all sizes.

 

Our Chief Executive Officer, who serves as the Company’s chief operating decision maker (“CODM”), primarily uses segment revenue, gross profit, and adjusted EBITDA to allocate resources and assess performance. Segment revenue and gross profit are determined on the same basis as consolidated revenue and consolidated gross profit as shown in the Company’s consolidated statements of operations. Segment adjusted EBITDA is defined as revenue less the following expenses associated with each segment: cost of revenue, people, marketing and advertising, technology, and other segment expenses. Segment adjusted EBITDA excludes certain non-cash items or items that management does not consider reflective of ongoing core operations. Currently, the CODM does not review assets in evaluating the results of the operating segments, and therefore, such information is not presented.

 

The tables below present information about reported segments for the three and six months ending June 30, 2025:

 

Three months ended June 30, 2025                
   Banzai Operating   OpenReel   Vidello   Total Consolidated 
Revenue  $1,146,546   $1,386,938   $728,766   $3,262,250 
Cost of revenue   368,473    77,694    108,348    554,515 
Gross profit   778,073    1,309,244    620,418    2,707,735 
                     
Expenses                    
People   1,666,047    40    -    1,666,087 
Marketing and advertising   454,754    18,377    103,059    576,190 
Technology   254,213    551,381    27,377    832,971 
Other segment expenses1   1,027,031    26,906    73,022    1,126,959 
Total expenses   3,402,045    596,704    203,458    4,202,207 
Adjusted EBITDA   (2,623,972)   712,540    416,960    (1,494,472)
Transaction, PubCo. Expenses and Stock-based compensation   2,891,939    18,657    —    2,910,596 
EBITDA  $(5,515,911)  $693,883   $416,960   $(4,405,068)

 

 

Six months ended June 30, 2025                
   Banzai
Operating		   OpenReel   Vidello   Total
Consolidated		 
Revenue  $2,306,292   $2,828,481   $1,506,560   $6,641,333 
Cost of revenue   745,071    152,502    262,941    1,160,514 
Gross profit   1,561,221    2,675,979    1,243,619    5,480,819 
                     
Expenses                    
People   3,869,793    89,888    -    3,959,681 
Marketing and advertising   1,249,850    57,494    278,351    1,585,695 
Technology   530,621    1,070,261    51,573    1,652,455 
Other segment expenses1   1,696,159    47,034    262,536    2,005,729 
Total expenses   7,346,423    1,264,677    592,460    9,203,560 
Adjusted EBITDA   (5,785,202)   1,411,302    651,159    (3,722,741)
Transaction, PubCo. Expenses and Stock-based compensation   5,021,849    320,482    —    5,342,331 
EBITDA  $(10,807,051)  $1,090,820   $651,159   $(9,065,072)

 

1Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and PubCo. expenses, insurance expenses, and expenses related to licenses.

 

The tables below present information about reported segments for the three and six months ending June 30, 2024:

 

   Banzai Operating   OpenReel1   Vidello1   Total Consolidated 
Three months ended June 30, 2024
   Banzai Operating   OpenReel1   Vidello1   Total Consolidated 
Revenue  $1,068,197   $—   $—   $1,068,197 
Cost of revenue   330,008    —    —    330,008 
Gross profit   738,189    —    —    738,189 
                     
Expenses                    
People   1,323,758    —    —    1,323,758 
Marketing and advertising   561,008    —    —    561,008 
Technology   221,638    —    —    221,638 
Other segment expenses2   114,003    —    —    114,003 
Total expenses   2,220,407    —    —    2,220,407 
Adjusted EBITDA   (1,482,218)   —    —    (1,482,218)
Transaction, PubCo. Expenses and Stock-based compensation   1,888,827    —    —    1,888,827 
EBITDA  $(3,371,045)  $—   $—   $(3,371,045)

 

   Banzai Operating   OpenReel1   Vidello1   Total Consolidated 
Six months ended June 30, 2024
   Banzai Operating   OpenReel1   Vidello1   Total Consolidated 
Revenue  $2,147,669   $—   $—   $2,147,669 
Cost of revenue   711,388    —    —    711,388 
Gross profit   1,436,281    —    —    1,436,281 
                     
Expenses                    
People   2,576,425    —    —    2,576,425 
Marketing and advertising   929,746    —    —    929,746 
Technology   430,425    —    —    430,425 
Other segment expenses2   991,631    —    —    991,631 
Total expenses   4,928,227    —    —    4,928,227 
Adjusted EBITDA   (3,491,946)   —    —    (3,491,946)
Transaction, PubCo. Expenses and Stock-based compensation   3,279,795    —    —    3,279,795 
EBITDA  $(6,771,741)  $—   $—   $(6,771,741)

 

 

1The OpenReel acquisition occurred on December 18, 2024 and therefore is presented at $0 for comparative purposes. The Vidello acquisition occurred on January 31, 2025 (refer to Note 4) and therefore is presented at $0 for comparative purposes.

 

2Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and PubCo. expenses, the SEPA commitment fee expense and deferred fee expense, the GEM warrant expense, and the GEM commitment fee expense.

 

A reconciliation between EBITDA by reportable segment to consolidated net loss before income taxes for the three months ended June 30, 2025, and 2024, is as follows:

 

   June 30, 2025   June 30, 2024 
EBITDA by segment          
Banzai Operating Co.  $(5,515,911)   (3,371,045)
OpenReel   693,883    — 
Vidello   416,960    — 
Total   (4,405,068)   (3,371,045)
           
Reconciliation to loss before income taxes:          
Changes in fair value of financial instruments   223,503    (350,000)
Interest expense   —    396,019 
Interest expense – related party   536,639    385,474 
Gain (loss) on extinguishment of liabilities, net   (145,221)   — 
Loss on debt issuance   169,200    — 
Loss on Private Placement Issuance   1,190,000    — 
GEM settlement fee expense   —    — 
Loss on Yorkville SEPA advances   362,613    — 
Yorkville prepayment premium expense   —    80,760 
Loss on Yorkville SEPA advances   —    — 
Depreciation and amortization   300,546    1,261 
Other income, net   1,335,377    64,145 
Loss before income taxes  $(8,377,725)  $(3,948,704)

 

A reconciliation between EBITDA by reportable segment to consolidated net loss before income taxes for the six months ended June 30, 2025, and 2024, is as follows:

 

   June 30, 2025   June 30, 2024 
EBITDA by segment          
Banzai Operating Co.  $(10,807,051)  $(6,771,741)
OpenReel   1,090,820    — 
Vidello   651,159    — 
Total   (9,065,072)   (6,771,741)
           
Reconciliation to loss before income taxes:          
Changes in fair value of financial instruments   568,095    (329,000)
Interest income   (2)   (10)
Interest expense   —    847,418 
Interest expense – related party   895,020    962,987 
Gain (loss) on extinguishment of liabilities, net   (2,718,732)   (527,980)
Loss on debt issuance   443,000    171,000 
Loss on Private Placement Issuance   1,190,000    — 
GEM settlement fee expense   —    200,000 
Loss on Yorkville SEPA advances   747,137    — 
Yorkville prepayment premium expense   —    80,760 
Depreciation and amortization   547,237    2,825 
Other income, net   1,210,846    60,027 
Loss before income taxes  $(11,947,673)  $(8,239,768)

 

 

Disaggregation of Revenue

 

The following table presents the Company’s percentage of revenue generated by SaaS product for the three months ended June 30, 2025, and 2024:

 

   Three
Months Ended
June 30,		   Three
Months Ended
June 30,		   Six
Months Ended
June 30,		   Six
Months Ended
June 30,		 
Revenue %  2025   2024   2025   2024 
Reach   2.7%   3.4%   1.7%   2.0%
Demio   32.4%   96.1%   27.0%   97.4%
OpenReel   42.5%   0.0%   35.8%   0.0%
Vidello   22.4%   0.0%   35.5%   0.0%
Other   0.0%   0.5%   0.0%   0.6%
Total   100.0%   100.0%   100.0%   100.0%

 

For disaggregation of revenue by geographic area, refer to Note 6.

 

21. Segment Reporting

 

The Company has two reportable operating segments, Banzai Operating Co., Inc and Banzai Reel Acquisition Inc. (OpenReel). The Company’s segments deliver SaaS tools that leverage data, analytics, and AI to provide marketing and sales solutions for business of all sizes.

 

Our Chief Executive Officer who serves as the Company’s chief operating decision maker (“CODM”), primarily uses segment revenue, gross profit, and adjusted EBITDA to allocate resources and assess performance. Segment revenue and gross profit are determined on the same basis as consolidated revenue and consolidated gross profit as shown in the Company’s consolidated statements of operations. Segment adjusted EBITDA is defined as revenue less the following expenses associated with each segment: cost of revenue, people, marketing and advertising, technology, and other segment expenses. Segment adjusted EBITDA excludes certain non-cash items or items that management does not consider reflective of ongoing core operations. Currently, the CODM does not review assets in evaluating the results of the operating segments, and therefore, such information is not presented.

 

The table below presents information about reported segments for the year ending December 31, 2024:

 

2024            
   Banzai Operating   OpenReel   Total Consolidated 
Revenue  $4,305,429   $222,450   $4,527,879 
Cost of revenue   1,407,564    14,978    1,422,542 
Gross profit   2,897,865    207,472    3,105,337 
                
Expenses               
People   6,209,488    17,642    6,227,130 
Marketing and advertising   1,587,085    5,020    1,592,105 
Technology   861,775    112,429    974,204 
Other segment expenses1   811,519    6,856    818,375 
Total expenses   9,469,867    141,947    9,611,814 
Adjusted EBITDA   (6,572,002)   65,525    (6,506,477)
Transaction, PubCo. Expenses and Stock-based compensation   6,912,309    —    6,912,309 
EBITDA  $(13,484,311)  $65,525   $(13,418,786)

 

1Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and PubCo. expenses, insurance expenses, and expenses related to licenses.

 

The table below presents information about reported segments for the year ending December 31, 2023:

 

2023            
   Banzai Operating   OpenReel1   Total Consolidated 
Revenue  $4,561,300   $—   $4,561,300 
Cost of revenue   1,444,618    —    1,444,618 
Gross profit   3,116,682    —    3,116,682 
                
Expenses               
People   5,809,973    —    5,809,973 
Marketing and advertising   941,737    —    941,737 
Technology   628,998    —    628,998 
Other segment expenses2   7,679,506    —    7,679,506 
Total expenses   15,060,214    —    15,060,214 
Adjusted EBITDA   (11,943,532)   —    (11,943,532)
Transaction, PubCo. Expenses and Stock-based compensation   6,118,859    —    6,118,859 
EBITDA  $(18,062,391)  $—   $(18,062,391)

 

 

1The OpenReel acquisition occurred on December 18, 2024 (refer to Note 5) and therefore is presented at $0 for comparative purposes.

 

2Other segment expenses for each reportable segment includes travel and entertainment expenses, professional expenses other than those included in transaction and PubCo. expenses, SEPA commitment fee and deferred fee expense, GEM warrant expense, and GEM commitment fee expense.

 

A reconciliation between reportable segment adjusted EBITDA to consolidated net loss before income taxes for the years ended December 31, 2024, and 2023, is as follows:

 

   December 31, 2024   December 31, 2023 
EBITDA by segment          
Banzai Operating Co.  $(13,484,311)  $(18,062,391)
OpenReel   65,525    — 
Total   (13,418,786)   (18,062,391)
           
Reconciliation to loss before income taxes:          
Changes in fair value of financial instruments   (478,288)   (9,154,141)
Interest income   (10)   (813)
Interest expense   —    1,068,447 
Interest expense – related party   3,047,101    4,486,027 
Gain (loss) on extinguishment of liabilities, net   390,801    — 
Loss on conversion of liabilities   11,338,284    — 
Loss on debt issuance   653,208    — 
GEM settlement fee expense   200,000    — 
Yorkville prepayment premium expense   80,760    — 
Goodwill impairment   2,725,460    — 
Depreciation and amortization   24,179    7,160 
Other   113,108    (62,809)
Loss before income taxes  $(31,513,389)  $(14,406,262)

 

Disaggregation of Revenue

 

The following table presents the Company’s revenue generated by SaaS product for the years ended December 31, 2024, and 2023:

   Year Ended
December 31,		   Year Ended
December 31,		 
Revenue %  2024   2023 
Reach   3.8%   4.5%
Demio   91.0%   94.9%
Other1   5.2%   0.6%
Total   100.0%   100.0%

 

1Other includes Boost sales for the years ended December 31, 2024, and 2023 and OpenReel product sales from acquisition date (refer to Note 5) to December 31, 2024.

 

For disaggregation of revenue by geographic area, refer to Note 7.