Janover Reports First Quarter 2024 Financial Results and Provides Business Update
Janover (Nasdaq: JNVR) reported a 17% sequential revenue increase in Q1 2024 compared to Q4 2023, largely driven by a 16% rise in SBA revenue. Revenue per transaction rose 10% year-over-year. Notably, 18% of the total revenue was from recurring subscriptions. As of March 31, 2024, Janover held $3.9 million in cash with no material debt. Despite these gains, the company's revenue for Q1 2024 was $411,000, a decline from $467,000 in Q1 2023, due to fewer closed loans. Sales and marketing expenses surged to $416,000 from $294,000 in the same period last year, attributed to increased employee compensation. The net loss was $964,000, up from $220,000 in Q1 2023, leading to an adjusted EBITDA loss of $837,000. CEO Blake Janover emphasized the company's focus on larger loans and recurring revenue streams through the Groundbreaker acquisition and Janover Insurance Group launch.
- 17% sequential increase in revenue for Q1 2024 compared to Q4 2023.
- 16% sequential increase in SBA revenue for Q1 2024 compared to Q4 2023.
- 10% year-over-year increase in revenue per transaction for Q1 2024.
- 18% of total revenue from recurring subscriptions in Q1 2024.
- $3.9 million in cash and cash equivalents as of March 31, 2024.
- No material debt on the balance sheet.
- Revenue for Q1 2024 was $411,000, down from $467,000 in Q1 2023.
- Sales and marketing expenses rose to $416,000 from $294,000 in Q1 2023.
- Net loss increased to $964,000 from $220,000 in Q1 2023.
- Adjusted EBITDA loss expanded to $837,000 from $175,000 in Q1 2023.
Insights
Janover's financial results for Q1 2024 present a mixed bag of improvements and challenges, which investors need to dissect carefully. The 17% sequential increase in revenue from Q4 2023 to Q1 2024 is a positive indicator of growth, despite prevailing market challenges. This growth is significantly driven by the 16% rise in SBA revenue, underscoring the company's ability to capitalize on small business loan opportunities. Moreover, the 10% year-over-year increase in revenue per transaction highlights a strategic shift towards larger loan opportunities, which can offer higher returns per transaction.
However, the company reported a net loss of approximately $964,000 for Q1 2024, a steep increase from the $220,000 loss in Q1 2023. This increase in losses may raise concerns regarding cost management and operational efficiency, especially when coupled with rising sales and marketing expenses. The emphasis on recurring revenue, which formed 18% of total revenue, is a stabilizing factor and a positive long-term strategy, particularly with the acquisition of Groundbreaker and the launch of Janover Insurance. Nevertheless, the overall revenue decline from the same quarter of the previous year needs close monitoring.
In summary, while Janover shows promising avenues for growth, particularly in recurring revenue streams, investors should remain cautious about the rising operational losses and evaluate if the strategic expansions will eventually lead to profitability.
From a market perspective, Janover's performance in Q1 2024 provides insights into the company's positioning within the commercial real estate transaction sector. The company's focus on leveraging AI-enabled platforms for commercial real estate and small business loans is a forward-thinking approach that aligns with industry trends towards digital transformation. The acquisition of Groundbreaker, a B2B SaaS platform and the recent launch of Janover Insurance, are strategic moves aimed at increasing recurring revenue streams.
Janover's digital media assets, reported to generate over 100 million impressions annually, are also noteworthy. This significant online presence may enhance lead generation and brand visibility, important for scaling operations and capturing a larger market share. However, the considerable increase in net loss and adjusted EBITDA loss indicates that while the company is positioned for growth, it is currently in a phase of heavy investment and sustained cash burn. Investors should monitor how effectively Janover can convert its digital reach and technological advantages into sustainable profitability.
Overall, while the strategic direction and market positioning appear robust, the financial health of the company remains a critical area to watch, especially given the increased operational expenses and net losses.
Achieves
Quarterly Revenue Per Transaction Increased
BOCA RATON, Fla., May 14, 2024 (GLOBE NEWSWIRE) -- Janover Inc. (Nasdaq: JNVR) (“Janover” or the “Company”), an AI-enabled platform for commercial real estate transactions, today provided a business update, and announced its financial results for the first quarter ended March 31, 2024.
Q1 2024 Key Financials
17% sequential increase in revenue for Q1 2024 compared to Q4 2023;16% sequential increase in Small Business Administration (SBA) revenue for Q1 2024 compared to Q4 2023;- Revenue per transaction increased
10% year-over-year for the first quarter ended March 31, 2024; 18% of the total revenue consisted of recurring subscription revenue in Q1 2024;$3.9 million in cash and cash equivalents as of March 31, 2024; and- No material debt or other instruments on the balance sheet.
Blake Janover, CEO of Janover, stated, “I am pleased to report that despite significant dislocation in the commercial real estate market, we achieved more than
“We are cultivating a robust array of premium, tech-powered product offerings aimed at delivering maximum value and experience to our customers and ultimately our shareholders. Our product mix is increasingly comprised of high margin, recurring revenue products, including Groundbreaker and Janover Insurance (which renews annually), supported by our cutting-edge AI enabled platform. Additionally, our digital media assets include dozens of websites, generating over 100 million impressions annually on Google and facilitating tens of billions of dollars in loan applications each year. Our core multifamily, commercial real estate, and SBA finance marketplace round out our comprehensive suite of services. All of this is enabled by a team that provides world-class customer service and a team of expert advisors. We believe we have established a meaningful foundation and a highly scalable infrastructure, which we believe positions us well for future growth and real value to our shareholders in the years to come. I appreciate everyone that is with us on the journey during what we know is a challenged market. We’ve built something special here and I’m incredibly excited about where our new business lines combined with our current offerings will take us in the years ahead.”
Financial Results
Revenue for the quarter ended March 31, 2024, was approximately
About Janover Inc.
Janover is an AI-enabled platform for commercial real estate transactions. The Company seeks to revolutionize the commercial real estate lending market by making it hyper-efficient, transparent, and accessible to all rather than the few. Through the Company’s online platform, it provides technology that connects commercial mortgage borrowers looking for capital to refinance, build, or purchase commercial property, including, but not limited to, apartment buildings, to commercial property lenders. Borrowers include, but are not limited to, owners, operators, and developers of commercial real estate including multifamily properties and most recently, a growing segment of small business owners, which Janover believes represents a significant growth opportunity. Lenders include small banks, credit unions, REITs, Fannie Mae® and Freddie Mac® multifamily lenders, FHA® multifamily lenders, debt funds, CMBS lenders, SBA lenders, and more. Additional information about the Company is available at: https://janover.co/.
To view the latest investor presentation, please visit https://ir.janover.co/.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “believe,” “project,” “estimate,” “expect,” strategy,” “future,” “likely,” “may,”, “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) the effect of and uncertainties related the ongoing volatility in interest rates; (ii) our ability to achieve and maintain profitability in the future; (iii) the impact on our business of the regulatory environment and complexities with compliance related to such environment; (iv) our ability to respond to general economic conditions; (v) our ability to manage our growth effectively and our expectations regarding the development and expansion of our business; (vi) our ability to access sources of capital, including debt financing and other sources of capital to finance operations and growth and other risks and uncertainties more fully in the section captioned "Risk Factors" in the Company’s Registration Statement on Form S-1 related to the public offering (SEC File No. File No. 333-267907) and other reports we file with the SEC. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
Contact:
Crescendo Communications, LLC
Tel: 212-671-1020
Email: jnvr@crescendo-ir.com
(Tables follow)
| JANOVER INC. CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| March 31, | December 31, | ||||||
| 2024 | 2023 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 3,924,238 | $ | 5,075,609 | |||
| Accounts receivable | 120,779 | 86,138 | |||||
| Prepaid expenses | 132,146 | 130,430 | |||||
| Total current assets | 4,177,163 | 5,292,177 | |||||
| Property and equipment, net | 33,137 | 28,137 | |||||
| Intangible assets, net | 604,348 | 675,957 | |||||
| Goodwill | 606,666 | 606,666 | |||||
| Other assets | 18,107 | 18,107 | |||||
| Right of use asset | 50,619 | 62,781 | |||||
| Total assets | $ | 5,490,040 | $ | 6,683,825 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable and accrued expenses | $ | 212,172 | $ | 539,136 | |||
| Deferred revenue | 83,233 | 83,228 | |||||
| Right of use liability, current portion | 54,502 | 52,731 | |||||
| Total current liabilities | 349,907 | 675,095 | |||||
| Contingent consideration | 178,819 | 178,819 | |||||
| Right of use of liability | - | 13,933 | |||||
| Total liabilities | 528,726 | 867,847 | |||||
| Stockholders' equity: | |||||||
| Series A Preferred stock, | |||||||
| Series B Preferred stock, | - | - | |||||
| Common stock, | 110 | 110 | |||||
| Additional paid-in capital | 12,568,730 | 12,459,343 | |||||
| Accumulated deficit | (7,607,526 | ) | (6,643,475 | ) | |||
| Total stockholders' equity | 4,961,314 | 5,815,978 | |||||
| Total liabilities and stockholders' equity | $ | 5,490,040 | $ | 6,683,825 | |||
| JANOVER INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2024 | 2023 | ||||||
| Revenues | $ | 411,137 | $ | 467,240 | |||
| Cost of revenues | 8,633 | - | |||||
| Gross profit | 402,504 | 467,240 | |||||
| Operating expenses: | |||||||
| Sales and marketing | 415,626 | 293,745 | |||||
| Research and development | 173,384 | 105,200 | |||||
| General and administrative | 758,761 | 342,315 | |||||
| Depreciation and amortization | 72,985 | - | |||||
| Total operating expenses | 1,420,756 | 741,260 | |||||
| Loss from operations | (1,018,252 | ) | (274,020 | ) | |||
| Other income: | |||||||
| Change in fair value of future equity obligations | - | 45,710 | |||||
| Interest income | 51,079 | 6,695 | |||||
| Other income | 3,122 | 1,429 | |||||
| Total other income | 54,201 | 53,834 | |||||
| Net loss | $ | (964,051 | ) | $ | (220,186 | ) | |
| Weighted average common shares outstanding - basic and diluted | 11,061,839 | 7,064,008 | |||||
| Net loss per common share - basic and diluted | $ | (0.09 | ) | $ | (0.03 | ) | |
| JANOVER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||||
| Three Months Ended | ||||||||||
| March 31, | ||||||||||
| 2024 | 2023 | |||||||||
| Cash flows from operating activities: | ||||||||||
| Net loss | $ | (964,051 | ) | $ | (220,186 | ) | ||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
| Depreciation and amortization | 72,985 | - | ||||||||
| Stock-based compensation | 108,155 | 99,156 | ||||||||
| Change in fair value of future equity obligations | - | (45,710 | ) | |||||||
| Changes in operating assets and liabilities: | ||||||||||
| Accounts receivable | (34,641 | ) | (77,423 | ) | ||||||
| Prepaid expenses | (1,716 | ) | - | |||||||
| Accounts payable and accrued expenses | (326,964 | ) | 30,429 | |||||||
| Deferred revenue | 5 | - | ||||||||
| Net cash used in operating activities | (1,146,227 | ) | (213,734 | ) | ||||||
| Cash flows from investing activities: | ||||||||||
| Purchase of property and equipment | (6,376 | ) | - | |||||||
| Net cash used in investing activities | (6,376 | ) | - | |||||||
| Cash flows from financing activities: | ||||||||||
| Exercise of stock options | 1,232 | - | ||||||||
| Net cash provided by financing activities | 1,232 | - | ||||||||
| Net change in cash | (1,151,371 | ) | (213,734 | ) | ||||||
| Cash at beginning of period | 5,075,609 | 981,125 | ||||||||
| Cash at end of period | $ | 3,924,238 | $ | 767,391 | ||||||
| JANOVER INC. RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) | |||||||
| Three Months Ended | |||||||
| March 31, | |||||||
| 2024 | 2023 | ||||||
| Consolidated Reconciliation of GAAP Net Loss to Adjusted EBITDA: | |||||||
| Net loss | $ | (964,051 | ) | $ | (220,186 | ) | |
| Add (subtract): | |||||||
| Stock-based compensation | 108,155 | 99,156 | |||||
| Depreciation and amortization | 72,985 | - | |||||
| Other income | 54,201 | 53,834 | |||||
| Adjusted EBITDA | $ | (837,112 | ) | $ | (174,865 | ) | |
| Three Months Ended | |||||||
| March 31, | |||||||
| 2024 | 2023 | ||||||
| Consolidated Reconciliation of GAAP Net Loss per share to Adjusted EBITDA per share: | |||||||
| Net loss per share - basic and diluted | $ | (0.09 | ) | $ | (0.03 | ) | |
| Add (subtract): | |||||||
| Stock-based compensation | 0.01 | 0.01 | |||||
| Depreciation and amortization | 0.01 | - | |||||
| Other income | - | 0.01 | |||||
| Adjusted EBITDA per share | $ | (0.07 | ) | $ | (0.03 | ) | |
Non-GAAP Financial Measures
To provide investors and the market with additional information regarding our financial results, we have disclosed adjusted EBITDA and adjusted EBITDA per share, non-GAAP financial measures that we calculate as net loss excluding; stock-based compensation expense; depreciation and amortization; and other income. We have provided reconciliations of adjusted EBITDA to net loss and adjusted EBITDA per share to earnings per share, the most directly comparable GAAP financial measures.
We have included adjusted EBITDA and adjusted EBITDA per share, herein, because they are key measures used by our management and Board of Directors to evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses. Accordingly, we believe that adjusted EBITDA and adjusted EBITDA per share provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and Board of Directors.
FAQ
What was Janover's revenue growth in Q1 2024?
How much of Janover's Q1 2024 revenue was recurring?
What contributed to Janover's revenue per transaction increase in Q1 2024?
What was Janover's net loss in Q1 2024?
What were Janover's cash holdings as of March 31, 2024?
What was Janover's adjusted EBITDA loss in Q1 2024?
What is Janover's stock symbol?
Did Janover's marketing expenses increase in Q1 2024?
