Q3 2024 Financial and Business Highlights:
- 40% sequential QoQ revenue growth.
- 58% sequential QoQ run rate ARR growth.
- 70% YoY and 41% QoQ sequential improvement in net loss.
- 39% sequential QoQ improvement in net cash used in operations.
- Began executing share buybacks during the quarter.
Blake Janover, CEO of Janover, stated, “We are pleased to report the best quarter since our IPO, marking our third consecutive quarter of simultaneous top line growth, net income, cash flow, adjusted EBITDA improvement, and ARR growth. Run rate ARR broke out with 58% sequential growth over the last quarter. Recurring revenue has increased significantly over the past few months, as we’ve delivered, to market, our full suite of software products and services that completes the first phase of our technology platform connecting the commercial real estate industry.”
Key Business Updates for the Quarter:
- Janover Pro – Janover Pro was launched, which is a commercial real estate lender matching tool, commercial real estate professionals can use to place loans at more than 1,000 lenders, including more than 10% of the banks in America.
- Janover Insurance Group – Our Insurtech completed another profitable quarter with an 89% QoQ growth in its run rate recurring revenue.
- Janover Engage – Janover launched the pilot of its equity marketplace as a service: a marketplace connecting real estate syndicators and accredited investors. This platform provides access to more than 40,000 verified investors who have collectively invested over $1 billion.
- Janover Connect – Groundbreaker was rebranded, re-designed, and relaunched as Janover Connect, the ecosystem’s easiest-to-use, most service-focused real estate syndication software and investor portal for syndicators and general partners (GPs).
- Janover Capital Markets – Janover’s multifamily and commercial real estate debt placement team, using cutting edge technology for deal placement, “signed up” more new business by revenue than any quarter in its history since its founding.
- Janover AI– Janover’s artificial intelligence; more specifically its conversational applications across voice, email, text, and chat, have now been licensed by two publicly traded companies for use in optimizing their operations.
Blake Janover continued, “Look, we’re just obsessed. Obsessed with delivering a better suite of products, with creating more from less, with running lean and fast, and with being useful. And even in a difficult market, it’s manifesting in the results. I’m proud of our team and the work we’re doing together. Right now, we’re set on getting to cash flow positive through growth and controlled costs and I have to say, the year ahead looks very promising for Janover.”
Financial Results
Revenue for the three months ended September 30, 2024 was approximately $619,000 as compared to approximately $584,000 for the three months ended September 30, 2023, an increase of approximately $35,000, or 6%. Revenue for the three months ended September 30, 2024 increased sequentially by approximately 40% compared to the three months ended June 30, 2024. We will focus our efforts on revenue growth, with an emphasis on our most profitable cohorts of customers. We will target increasing both our number of transactions closed and our revenue per transaction closed. During fiscal 2024, we focused on larger loan opportunities, which should increase our average loan size. With the acquisition of Groundbreaker and the recent launch of our Insurtech, an increasing portion of our total revenue will be recurring revenue, where we receive annual, quarterly, and monthly subscriptions, and annual insurance premium commissions. For the quarter ended September 30, 2024 approximately 22% of our total revenue was recurring revenue compared to 20% for the quarter ended June 30, 2024. The company will continue to migrate our revenue to recurring and subscription revenue for the remainder of fiscal 2024 and beyond. For the quarter ended September 30, 2024 subscription revenue was approximately $134,000 compared to $0 for the quarter ended September 30, 2023. Subscription revenue for the three months ended September 30, 2024 increased sequentially by approximately 51% compared to the three months ended June 30, 2024. For the quarter ended September 30, 2024 our annual recurring revenue (“ARR”) run-rate reached approximately $480,000, compared to no annual recurring revenue in the prior year. ARR increased sequentially by approximately 58%, which was approximately $303,000 for the three months ended June 30, 2024. ARR represents an annualization of our recurring revenue, which assumes a full year of revenue.
Net loss for the three months ended September 30, 2024 was approximately $471,000 as compared to approximately $1.6 million for the three months ended September 30, 2024, a decrease of approximately $1.1 million, or 70%. Net loss for the three months ended September 30, 2024 decreased sequentially by approximately 41% compared to the three months ended June 30, 2024. The reduction to our net loss was primarily due to significant cost cutting across the organization and one-time IPO related expenses and stock issuances for services in the prior year.
About Janover Inc.
Janover is an AI-enabled platform that connects the commercial real estate industry. The company serves over one million annual web users and 1,000+ lenders, including more than 10% of U.S. banks in America, providing debt capital markets services, real estate syndication software, data and AI licensing, and insurance brokerage solutions to entrepreneurial multifamily and commercial real estate owners, developers and professionals. Janover operates through its Debt, Equity, and Insurance divisions, focusing on delivering needed technology-first solutions to commercial real estate professionals. 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 1-A related to the public offering (SEC File No. 024-12458) 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.
Company Contact:
Bruce S. Rosenbloom, CFO
Tel: (561) 782-2788
Email: IR@janover.co
(Tables follow)
| JANOVER INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||||
| September 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 2,768,398 | $ | 5,075,609 | ||||
| Accounts receivable | 165,785 | 86,138 | ||||||
| Prepaid expenses | 129,206 | 130,430 | ||||||
| Deferred offering costs | 48,528 | – | ||||||
| Total current assets | 3,111,917 | 5,292,177 | ||||||
| Property and equipment, net | 36,219 | 28,137 | ||||||
| Intangible assets, net | 510,283 | 675,957 | ||||||
| Goodwill | 606,666 | 606,666 | ||||||
| Marketable securities | 173,250 | – | ||||||
| Other assets | 20,742 | 18,107 | ||||||
| Right of use asset | 25,718 | 62,781 | ||||||
| Total assets | $ | 4,484,795 | $ | 6,683,825 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 121,539 | $ | 539,136 | ||||
| Deferred revenue | 200,948 | 83,228 | ||||||
| Right of use liability, current portion | 27,659 | 52,731 | ||||||
| Total current liabilities | 350,146 | 675,095 | ||||||
| Contingent consideration | 178,819 | 178,819 | ||||||
| Right of use of liability | – | 13,933 | ||||||
| Total liabilities | 528,965 | 867,847 | ||||||
| Commitments and contingencies (Note 9) | ||||||||
| Stockholders’ equity: | ||||||||
| Series A Preferred stock, $0.00001 par value, 100,000 shares authorized, 10,000 shares issued and outstanding as of both September 30, 2024 and December 31, 2023 | – | – | ||||||
| Series B Preferred stock, $0.00001 par value, 1,000 shares authorized, 0 shares issued and outstanding as of both September 30, 2024 and December 31, 2023 | – | – | ||||||
| Common stock, $0.00001 par value, 100,000,000 shares authorized, 11,299,592 and 11,046,981 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively | 113 | 110 | ||||||
| Additional paid-in capital | 12,839,903 | 12,459,343 | ||||||
| Accumulated deficit | (8,884,186 | ) | (6,643,475 | ) | ||||
| Total stockholders’ equity | 3,955,830 | 5,815,978 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,484,795 | $ | 6,683,825 | ||||
| JANOVER INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenues | $ | 618,669 | 583,785 | $ | 1,470,779 | $ | 1,652,965 | |||||||||
| Cost of revenues | 7,631 | – | 24,298 | – | ||||||||||||
| Gross profit | 611,038 | 583,785 | 1,446,481 | 1,652,965 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 298,897 | 764,189 | 1,128,152 | 1,373,379 | ||||||||||||
| Research and development | 151,190 | 246,883 | 478,580 | 442,502 | ||||||||||||
| General and administrative | 564,437 | 1,211,252 | 1,990,573 | 1,996,057 | ||||||||||||
| Depreciation and amortization | 50,603 | 107 | 173,268 | 107 | ||||||||||||
| Total operating expenses | 1,065,127 | 2,222,431 | 3,770,573 | 3,812,045 | ||||||||||||
| Loss from operations | (454,089 | ) | (1,638,646 | ) | (2,324,092 | ) | (2,159,080 | ) | ||||||||
| Other income(expense): | ||||||||||||||||
| Change in fair value of future equity obligations | – | – | – | (119,826 | ) | |||||||||||
| Change in fair value of marketable securities | (52,250 | ) | – | (52,250 | ) | – | ||||||||||
| Interest income | 34,288 | 57,587 | 129,220 | 77,115 | ||||||||||||
| Other income | 796 | 2,531 | 6,411 | 5,226 | ||||||||||||
| Total other income (expense) | (17,166 | ) | 60,118 | 83,381 | (37,485 | ) | ||||||||||
| Net loss | $ | (471,255 | ) | $ | (1,578,528 | ) | $ | (2,240,711 | ) | $ | (2,196,565 | ) | ||||
| Weighted average common shares outstanding – basic and diluted | 11,205,011 | 9,180,889 | 11,110,766 | 7,769,635 | ||||||||||||
| Net loss per common share – basic and diluted | $ | (0.04 | ) | $ | (0.17 | ) | $ | (0.20 | ) | $ | (0.28 | ) | ||||
| JANOVER INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||||||
Nine Months Ended | ||||||||
| September 30, | ||||||||
| 2024 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (2,240,711 | ) | $ | (2,196,565 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 173,268 | 107 | ||||||
| Stock-based compensation | 263,313 | 893,400 | ||||||
| Change in fair value of marketable securities | 52,250 | – | ||||||
| Issuance of common stock upon IPO for services | – | 541,064 | ||||||
| Change in fair value of future equity obligations | – | 119,826 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (230,147 | ) | (89,422 | ) | ||||
| Prepaid expenses | 91,695 | (183,846 | ) | |||||
| Other assets | (2,634 | ) | – | |||||
| Accounts payable and accrued expenses | (386,806 | ) | 6,328 | |||||
| Deferred revenue | 42,720 | – | ||||||
| Right of use of liability, net | (1,944 | ) | 969 | |||||
| Net cash used in operating activities | (2,238,996 | ) | (908,139 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | (13,176 | ) | (9,073 | ) | ||||
| Intangible assets, net | (2,500 | ) | – | |||||
| Net cash used in investing activities | (15,676 | ) | (9,073 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Issuance of preferred stock | – | 1,000,000 | ||||||
| Issuance of common stock | – | 5,023,500 | ||||||
| Exercise of stock options | 1,232 | – | ||||||
| Repurchase of common stock | (5,243 | ) | – | |||||
| Deferred offering costs | (48,528 | ) | (272,405 | ) | ||||
| Net cash (used in)provided byfinancing activities | (52,539 | ) | 5,751,095 | |||||
| Net change in cash | (2,307,211 | ) | 4,833,883 | |||||
| Cash at beginning of period | 5,075,609 | 981,125 | ||||||
| Cash at end of period | $ | 2,768,398 | $ | 5,815,008 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash paid for interest | $ | 1,089 | $ | – | ||||
| Cash paid for taxes | $ | – | $ | – | ||||
| Supplemental disclosure of non-cash financing activities: | ||||||||
| Issuance of common stock for prepaid and accrued services | $ | 121,262 | $ | – | ||||
| Marketable securities received in exchange for customer contract | $ | 225,500 | $ | – | ||||
| Conversion of future equity obligations into common stock in connection with IPO | $ | – | $ | 659,408 | ||||
| Conversion of preferred stock into common stock in connection with IPO | $ | – | $ | 1,000,000 | ||||
| JANOVER INC. RECONCILIATION OF NON-GAAP MEASURES (UNAUDITED) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Consolidated Reconciliation of GAAP Net Loss to Adjusted EBITDA: | ||||||||||||||||
| Net loss | $ | (471,255 | ) | $ | (1,578,528 | ) | $ | (2,240,711 | ) | $ | (2,196,565 | ) | ||||
| Add (subtract): | ||||||||||||||||
| Stock-based compensation | 50,103 | 1,231,433 | 263,313 | 1,434,464 | ||||||||||||
| Depreciation and amortization | 50,603 | 107 | 173,268 | 107 | ||||||||||||
| Other income (expense) | (17,166 | ) | 60,118 | 83,381 | (37,485 | ) | ||||||||||
| Adjusted EBITDA | $ | (353,383 | ) | $ | (407,106 | ) | $ | (1,887,511 | ) | $ | (724,509 | ) | ||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Consolidated Reconciliation of GAAP Net Loss per share to Adjusted EBITDA per share: | ||||||||||||||||
| Net loss per share – basic and diluted | $ | (0.04 | ) | $ | (0.17 | ) | $ | (0.20 | ) | $ | (0.28 | ) | ||||
| Add (subtract): | ||||||||||||||||
| Stock-based compensation | – | 0.13 | 0.02 | 0.18 | ||||||||||||
| Depreciation and amortization | 0.01 | – | 0.02 | – | ||||||||||||
| Other income (expense) | – | – | 0.01 | (0.01 | ) | |||||||||||
| Adjusted EBITDA per share | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.15 | ) | $ | (0.09 | ) | ||||
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.
