Banzai International Inc. (NASDAQ: BNZI) Stock Rockets 82%: What’s the Trigger?
On Wednesday, the Banzai International Inc. (NASDAQ:BNZI) stock was on a tear and delivered gains of 82% to close at $5.02 after hitting a session high of $6.89. The rally came about following a major new announcement from the company.
The Trigger
Today the company announced a comprehensive new program aimed at boosting its net income considerably while keeping the growth outlook on the same track. Banzai International stated that it aimed to achieve that through the reduction of annual operational costs by $9.9 million by March 31 next year. In the same timeline, the company would also aim to bring down other costs by $3.6 million.
Expected Results
Owing to the initiative, Banzai International expects the net income to be around $13.5 million upon complete implementation. The cost savings measures would include a wide range of moves, including workforce adjustments, consolidation of operations, and other cost savings initiatives.
The measures are aimed at not only boosting efficiency but also enhancing scalability and continuing to strengthen Banzai International’s position as a leader in the marketing technology space.
The workforce adjustments are aimed at cutting down independent contractor and staffing expenses by 27%. The cost of putting the plan into place would be $100,000 as per the company’s projections. The company also stated that the restructuring of its debt with Columbia Pacific Advisors would significantly cut down its cash expenses. If the debt is converted entirely under the restructuring agreement, then $1.9 million worth of debt would be extinguished.
CEO Comment
“Alongside the $5 million private placement transaction and debt restructuring transactions the company has executed in the last two weeks, we believe that implementing this strategic initiative, if fully achieved, will enable us to substantially extend our cash runway and invest in growth,” said Joe Davy, CEO of Banzai.
Technicals
| +/- EMA(20) | 4.51 (+11.31%) |
| +/- SMA(50) | 5.03 (-0.20%) |
| +/- SMA(200) | 28.62 (-82.46%) |
| 5-Day Perf. | +5.02% |
| 1-Month Perf. | +26.93% |
| 3-Month Perf. | -32.16% |
| 6-Month Perf. | -80.28% |
| YTD Perf. | -94.66% |
| 1-Year Perf. | -99.05% |
| RSI(14) | 51.79 |
| ATR(14) | 1.37 |
| ADX(14) | 27.55 |
| Beta (5Y) | 0.18 |
