Janover Reports Fiscal 2023 Financial Results and Provides Business Update
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Insights
The reported 54% increase in revenue per transaction for Janover Inc. indicates a successful strategy in enhancing the value of each deal closed. This performance metric is particularly important in the commercial real estate sector, where transaction volumes can be variable and influenced by economic cycles. The growth in revenue per transaction suggests that Janover has been able to either increase its prices due to enhanced service offerings, such as their AI-enabled platform, or improve the quality of transactions it secures.
The 100% growth in small business transactions for the second consecutive year is a strong signal that Janover is effectively capturing a niche market, possibly by leveraging SBA loans which are designed to support small businesses. This could point to Janover's strategic positioning to take advantage of specific government programs and reflects a deep understanding of the needs of small business operators in commercial real estate.
However, the overall revenue decline from $2.2 million in 2022 to $2.0 million in 2023 despite these gains raises questions about the broader transaction volume and the company's ability to scale. Investors might be concerned about the sustainability of growth and whether the company can maintain its revenue per transaction growth while also expanding its total number of transactions.
Janover's completion of an IPO and subsequent capital raise of over $5.0 million, combined with its $5.1 million in cash and cash equivalents at year-end, positions the company with a solid liquidity profile. This financial stability is critical for executing strategic initiatives and suggests a capacity for sustained investment in technology and market expansion. The liquidity also provides a buffer against the macroeconomic challenges noted by the CEO, such as rising interest rates and sector disruptions, which can be particularly impactful in the real estate market.
The acquisition of Groundbreaker Tech Inc. and the launch of new AI capabilities represent strategic moves towards a recurring revenue model, which is favorable for long-term financial stability. Recurring revenue models are generally viewed positively by investors as they provide predictable and stable cash flows, which are essential for valuation purposes.
The share repurchase program is another financial maneuver that can signal confidence in the company's future to investors, potentially leading to an increase in share price due to the reduced supply of shares. However, it's important to monitor whether these buybacks are being financed responsibly and not at the expense of necessary capital expenditures or growth opportunities.
The emphasis on AI and the acquisition of a SaaS platform indicate Janover's commitment to technological innovation within the commercial real estate sector. The AI chatbot interface and new AI capabilities can be seen as a differentiation strategy aimed at improving customer experience and operational efficiency. The integration of AI into its platform may enable Janover to process transactions more quickly, provide more accurate analytics and enhance decision-making for clients.
The strategic partnerships with La Rosa Holdings and Xchange.Loans suggest a focus on leveraging external expertise and networks to navigate market dislocations. These partnerships could provide Janover with additional channels for customer acquisition and cross-selling opportunities.
However, the real test will be in the company's ability to monetize these technological investments and convert enhanced capabilities into market share and revenue growth. It will be important to track customer adoption rates and the impact of these technologies on the bottom line in subsequent financial periods.
Reports
Revenue from Small Business Transactions Grows More Than
BOCA RATON, Fla., March 28, 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 year-ended December 31, 2023.
Key Financials
- Revenue per transaction increased
54% year-over-year for the year-ended December 31, 2023; - Revenue from Small Business transactions, which includes Small Business Administration (SBA), increased more than
100% , for the second consecutive year; - Completed IPO in July 2023 and raised over
$5.0 million in all common stock; - Generated revenue of
$2.0 million in 2023, versus$2.2 million in 2022, despite significant industry declines and Company’s focus on building the platform in 2023—positioning Janover for growth in 2024; and $5.1 million in cash and cash equivalents as of December 31, 2023.
2023 Operational Highlights
- Launched AI chatbot interface for commercial lenders under SaaS licensing model
- Acquired Groundbreaker Tech Inc., a recurring revenue SaaS platform, establishing a comprehensive marketplace for commercial real estate
- Launched share repurchase program
- Entered into strategic referral partnership with La Rosa Holdings (Nasdaq:LRHC)
- Entered into strategic partnership with Xchange.Loans to capitalize on market dislocation
- Achieved significant growth and engagement with top credit unions
- Inaugurated real estate advisory board
- Appointed finance veteran Bruce S. Rosenbloom, CPA as CFO
- Launched new AI capabilities to further strengthen its fintech marketplace
Blake Janover, CEO of Janover, stated, “In 2023, our Company achieved significant milestones, including our listing on the Nasdaq exchange in July and the acquisition of Groundbreaker in November, signaling the beginning of our transition to recurring revenue. Despite facing significant macro-economic challenges including the material increase in interest rates by the Federal Reserve, and disruptions in the banking and commercial real estate sector, we emerged far ahead of most of our peers and incumbents in multiple categories. Moreover, with the substantial investments we made in 2023 in our sales and marketing capabilities and in artificial intelligence, we believe we have built a solid foundation and now have a highly scalable infrastructure, which we believe will support future growth and meaningful returns for our shareholders in the years ahead.
“Revenue from small business transactions (which is primarily derived from SBA loans for commercial real estate) has more than doubled each of the last two years, highlighting our continued success in this new and exciting category. Furthermore, as discussed in our third quarter press release, our focus on enhancing revenue per transaction continues to bear fruit, evidenced by the
“Our AI-enabled platform drives value directly to customers and employees, improving each transaction along the way. Our expanding product suite tailored to commercial real estate enterprises and small and medium businesses is delighting owners, operators, and lenders alike.
“In summary, Janover is dedicated to building a resilient mix of high-quality products to deliver deeper and deeper value to our customers and, as a byproduct, our shareholders. I am very excited about what lies ahead and am confident in our ability to execute and scale our enterprise.”
Financial Results
Revenue for the year-ended December 31, 2023, was
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. CONSOLIDATED BALANCE SHEETS | ||||||||||||||
| December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| ASSETS | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 5,075,609 | $ | 981,125 | ||||||||||
| Accounts receivable | 86,138 | 38,287 | ||||||||||||
| Prepaid expenses | 130,430 | 7,566 | ||||||||||||
| Total current assets | 5,292,177 | 1,026,978 | ||||||||||||
| Property and equipment, net | 28,137 | - | ||||||||||||
| Intangible assets | 675,957 | 16,178 | ||||||||||||
| Goodwill | 606,666 | - | ||||||||||||
| Other assets | 18,107 | 6,877 | ||||||||||||
| Right of use asset | 62,781 | 109,661 | ||||||||||||
| Deferred offering costs | - | 177,219 | ||||||||||||
| Total assets | $ | 6,683,825 | $ | 1,336,913 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Accounts payable and accrued expenses | $ | 539,136 | $ | 159,380 | ||||||||||
| Deferred revenue | 83,228 | - | ||||||||||||
| Right of use liability, current portion | 52,731 | 45,516 | ||||||||||||
| Total current liabilities | 675,095 | 204,896 | ||||||||||||
| Contingent consideration | 178,819 | - | ||||||||||||
| Future equity obligations | - | 539,582 | ||||||||||||
| Right of use of liability | 13,933 | 67,057 | ||||||||||||
| Total liabilities | 867,847 | 811,535 | ||||||||||||
| Stockholders' equity: | ||||||||||||||
| Series A Preferred stock, | - | - | ||||||||||||
| Series B Preferred stock, | - | - | ||||||||||||
| Common stock, | 110 | 71 | ||||||||||||
| Additional paid-in capital | 12,459,343 | 3,794,988 | ||||||||||||
| Accumulated deficit | (6,643,475 | ) | (3,269,681 | ) | ||||||||||
| Total stockholders' equity | 5,815,978 | 525,378 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 6,683,825 | $ | 1,336,913 | ||||||||||
JANOVER INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
| Year Ended | |||||||||||||||
| December 31, | |||||||||||||||
| 2023 | 2022 | ||||||||||||||
| Revenues | $ | 2,003,155 | $ | 2,150,937 | |||||||||||
| Operating expenses: | |||||||||||||||
| Sales and marketing | 1,975,219 | 1,623,900 | |||||||||||||
| Research and development | 792,131 | 426,828 | |||||||||||||
| General and administrative | 2,640,697 | 1,820,604 | |||||||||||||
| Total operating expenses | 5,408,047 | 3,871,332 | |||||||||||||
| Loss from operations | (3,404,892 | ) | (1,720,395 | ) | |||||||||||
| Other income (expense): | |||||||||||||||
| Change in fair value of future equity obligations | (119,826 | ) | 434,224 | ||||||||||||
| Interest income | 140,720 | 9,241 | |||||||||||||
| Other income | 10,204 | 15,255 | |||||||||||||
| Total other income (expense) | 31,098 | 458,720 | |||||||||||||
| Net loss | $ | (3,373,794 | ) | $ | (1,261,675 | ) | |||||||||
| Weighted average common shares outstanding - | |||||||||||||||
| basic and diluted | 8,451,573 | 6,882,581 | |||||||||||||
| Net loss per common share - basic and diluted | $ | (0.40 | ) | $ | (0.18 | ) | |||||||||
| JANOVER INC. CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||
| Year Ended | ||||||||||||||
| December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||
| Net loss | $ | (3,373,794 | ) | $ | (1,261,675 | ) | ||||||||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||
| Depreciation | 912 | - | ||||||||||||
| Stock-based compensation - issuance of common stock upon IPO for services | 541,064 | - | ||||||||||||
| Stock-based compensation | 944,383 | 529,929 | ||||||||||||
| Change in fair value of future equity obligations | 119,826 | (434,224 | ) | |||||||||||
| Changes in operating assets and liabilities: | ||||||||||||||
| Accounts receivable | (47,851 | ) | 72,345 | |||||||||||
| Prepaid expenses | (116,218 | ) | (5,172 | ) | ||||||||||
| Other assets | (11,230 | ) | (4,483 | ) | ||||||||||
| Accounts payable and accrued expenses | 379,756 | 79,615 | ||||||||||||
| Deferred revenue | (5,379 | ) | - | |||||||||||
| Right of use liability, net | 969 | - | ||||||||||||
| Net cash used in operating activities | (1,567,562 | ) | (1,023,665 | ) | ||||||||||
| Cash flows from investing activities: | ||||||||||||||
| Purchases of property and equipment | (29,049 | ) | - | |||||||||||
| Cash used pursuant to business combination | (60,000 | ) | - | |||||||||||
| Net cash used in investing activities | (89,049 | ) | - | |||||||||||
| Cash flows from financing activities: | ||||||||||||||
| Proceeds from future equity obligations, net of financing fees | - | 286,000 | ||||||||||||
| Issuance of preferred stock | 1,000,000 | - | ||||||||||||
| Issuance of common stock | 5,650,000 | 165,992 | ||||||||||||
| Offering costs | (898,905 | ) | (154,469 | ) | ||||||||||
| Net cash provided by financing activities | 5,751,095 | 297,523 | ||||||||||||
| Net change in cash | 4,094,484 | (726,142 | ) | |||||||||||
| Cash and cash equivalents at beginning of year | 981,125 | 1,707,267 | ||||||||||||
| Cash and cash equivalents at end of year | $ | 5,075,609 | $ | 981,125 | ||||||||||
| Supplemental disclosure of cash flow information: | ||||||||||||||
| Cash paid for interest | $ | - | $ | - | ||||||||||
| Cash paid for taxes | $ | - | $ | - | ||||||||||
| Supplemental disclosure of non-cash financing activities: | ||||||||||||||
| Conversion of future equity obligations into common stock in connection with IPO | $ | 659,408 | $ | 668,898 | ||||||||||
| Conversion of preferred stock into common stock in connection with IPO | $ | 1,000,000 | $ | - | ||||||||||
| Issuance of common stock pursuant to business combination | $ | 945,665 | $ | - | ||||||||||
| Contingent consideration pursuant to business combination | $ | 178,819 | $ | - | ||||||||||
| Right of use asset and liability | $ | - | $ | 143,132 | ||||||||||
| Shares issued as deferred offering costs | $ | - | $ | 22,750 | ||||||||||
| JANOVER INC. RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||
| Year Ended | ||||||||||||||
| December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Consolidated Reconciliation of GAAP Net Loss to Adjusted EBITDA: | ||||||||||||||
| Net loss | $ | (3,373,794 | ) | $ | (1,261,675 | ) | ||||||||
| Add (subtract): | ||||||||||||||
| Stock-based compensation | 1,485,447 | 529,929 | ||||||||||||
| Depreciation | 912 | - | ||||||||||||
| Other income (expense) | 31,098 | 458,720 | ||||||||||||
| Adjusted EBITDA | $ | (1,918,533 | ) | $ | (1,190,466 | ) | ||||||||
| Year Ended | ||||||||||||||
| December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Consolidated Reconciliation of GAAP Net Loss per share to Adjusted EBITDA per share: | ||||||||||||||
| Net loss per share - basic and diluted | $ | (0.40 | ) | $ | (0.18 | ) | ||||||||
| Add (subtract): | ||||||||||||||
| Stock-based compensation | 0.18 | 0.08 | ||||||||||||
| Depreciation | - | - | ||||||||||||
| Other income (expense) | - | 0.07 | ||||||||||||
| Adjusted EBITDA per share | $ | (0.22 | ) | $ | (0.17 | ) | ||||||||
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 other income (expense). 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 the percentage increase in revenue per transaction for Janover Inc. (JNVR) in 2023?
How much revenue did Janover Inc. (JNVR) generate in 2023?
What was the revenue from small business transactions for Janover Inc. (JNVR) in 2023?
How much cash and cash equivalents did Janover Inc. (JNVR) have as of December 31, 2023?
What were some operational highlights for Janover Inc. (JNVR) in 2023?
