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Brand Engagement Network (BNAI)
NASDAQ:BNAI
RESEARCH TOOLSreports
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Brand Engagement Network
(NASDAQ:BNAI)
35Underperform
Positive Factors
Financial flexibility
BNAI has a $50M standby equity purchase agreement with Yorkville Advisors for financial flexibility.
Growth expectations
Multiple pilot programs and pending acquisition support robust growth expectations for BNAI.
Negative Factors
Stock price dilution
The price target was lowered to $4 due to dilution.
Brand Engagement Network (BNAI) vs. S&P 500 (SPY)
Market Cap
$12.68M
Dividend YieldN/A
Average Volume (3M)262.94K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue GrowthN/A
EPS Growth-20.33%
CountryUS
Employees39
SectorFinancial
Sector Strength85
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-0.98
Shares Outstanding42,274,460
10 Day Avg. Volume177,927
30 Day Avg. Volume262,935
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)0.74
Price to Sales (P/S)0.00
P/FCF Ratio-1.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Brand Engagement Network Business Overview & Revenue Model
Company DescriptionBrand Engagement Network, Inc. engages in the provision of conversational artificial intelligence assistants with the purpose of transforming engagement and analytics for businesses through security-focused, multimodal communication and human-like artificial intelligence assistants. The firm is also involved in delivering highly personalized, multi-modal artificial intelligence engagement with a focus on industries where there is a massive workforce gap and an opportunity to transform how consumers engage with networks, providers, and brands. The company is headquartered in Jackson, WY.
How the Company Makes MoneyBNAI generates revenue by offering a range of services and solutions that cater to businesses seeking to improve their brand engagement strategies. The company earns money through service fees for consulting on marketing strategies, subscription fees for access to their digital platforms, and revenue-sharing agreements based on performance metrics. Key revenue streams include licensing fees for proprietary technology, custom content creation services, and strategic partnerships with other marketing agencies and tech firms. Additionally, BNAI may engage in joint ventures or collaborations with brands to expand their reach and enhance service offerings, further contributing to their income.
Brand Engagement Network Financial Statement Overview
Summary
Brand Engagement Network is facing significant financial challenges, marked by negative profitability and cash flow issues. Despite revenue growth, the company struggles with high liabilities and inefficiencies, which are reflected in low income statement, balance sheet, and cash flow scores.Income Statement
The company has experienced significant revenue growth from prior periods, albeit starting from a low base. However, negative gross profit and substantial net losses indicate severe profitability challenges. Margins are deeply negative, reflecting inefficiencies and potential pricing issues.25
Negative
Balance Sheet
The company maintains a moderate debt level relative to equity, but the negative equity in prior years raises concerns about financial stability. Current positive equity suggests some recovery, yet total liabilities remain high. The equity ratio is moderate, indicating partial reliance on equity financing.35
Negative
Cash Flow
Free cash flow remains negative, and operating cash flows are insufficient to cover net income, indicating liquidity challenges. Although there has been a surge in investing cash flows, it is not enough to offset negative operating cash flows.20
Very Negative
| Breakdown | |||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 99.79K | 0.00 | 15.64K | 7.41K | Gross Profit |
| -699.80K | 0.00 | 15.64K | 7.41K | EBIT |
| -18.70M | -2.81M | -1.22M | -819.77K | EBITDA |
| -21.03M | -6.88M | -1.15M | -819.77K | Net Income Common Stockholders |
| -22.87M | -6.88M | -676.04K | -820.07K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 1.57M | 40.17K | 2.01K | 861.47K | Total Assets |
| 311.90M | 22.10M | 626.11K | 735.00K | Total Debt |
| 0.00 | 0.00 | 0.00 | 0.00 | Net Debt |
| -1.57M | -40.17K | -2.01K | -861.47K | Total Liabilities |
| 27.83M | 8.78M | 666.22K | 290.26K | Stockholders Equity |
| 284.06M | 13.32M | -40.11K | 444.74K |
| Cash Flow | Free Cash Flow | ||
| -12.84M | -822.44K | -85.41K | -170.59K | Operating Cash Flow |
| -12.65M | -822.44K | -85.41K | -170.59K | Investing Cash Flow |
| 27.42M | 296.22M | -2.58K | 89.00 | Financing Cash Flow |
| -16.40M | -295.57M | 90.00K | 170.50K |
Brand Engagement Network Technical Analysis
Negative
0.30
Price Trends
0.34
Negative
0.47
Negative
0.80
Negative
Market Momentum
-0.01
Positive
39.95
Neutral
27.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNAI, the sentiment is Negative. The current price of 0.3 is below the 20-day moving average (MA) of 0.33, below the 50-day MA of 0.34, and below the 200-day MA of 0.80, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 39.95 is Neutral, neither overbought nor oversold. The STOCH value of 27.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNAI.
Brand Engagement Network Risk Analysis
Brand Engagement Network disclosed 56 risk factors in its most recent earnings report. Brand Engagement Network reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Brand Engagement Network Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $12.74B | 9.83 | 7.63% | 17000.35% | 12.34% | -5.32% | |
61 Neutral | $21.80M | ― | -19.27% | ― | -1.05% | 80.22% | |
43 Neutral | $8.65M | ― | -220.48% | ― | -25.38% | 67.34% | |
39 Underperform | $16.37M | ― | -501.24% | ― | 141.65% | -28.86% | |
38 Underperform | $7.52M | ― | -243.87% | ― | -14.99% | 59.75% | |
35 Underperform | $12.68M | ― | -422.39% | ― | ― | -20.33% |
* Financial Sector Average
Performance Comparison
BNAI
Brand Engagement Network
0.30
-0.97
-76.38%
BLIN
Bridgeline Digital
1.81
0.67
58.77%
DTSS
Datasea
2.24
-4.51
-66.81%
APCX
AppTech
0.26
-0.68
-72.34%
RVYL
Ryvyl
0.70
-0.81
-53.64%
FAAS
DigiAsia
0.19
-9.12
-97.96%
Brand Engagement Network Earnings Call Summary
Earnings Call Date:Mar 27, 2025
(Q3-2024)
| % Change Since: -21.05%|
Next Earnings Date:May 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted several strategic moves and financial improvements, such as new leadership appointments, significant partnerships, and a strategic acquisition. While there are concerns related to revenue generation and acquisition challenges, the overall outlook remains positive with strong progress in core verticals and enhanced financial metrics.Q3-2024 Updates
Positive Updates
New Leadership and Strategic Vision
Paul Chang stepped into the role of CEO, and Walid Khiari will join as CFO and COO, bringing over 20 years of experience in the technology sector. This indicates a strategic vision to strengthen BEN's financial position and expand its global presence.
Significant Partnerships and Integrations
BEN announced a partnership with Cox Automotive to integrate AI assistance into their Dealer.com platform, enhancing dealership operations with interactive customer experiences.
Cantaneo Acquisition
BEN announced the acquisition of Cantaneo for $19.5 million, aiming to expand its reach in the $45 billion global media technology market. Cantaneo's Mydas platform supports over 5,000 users and handles over EUR 5 billion in annual media spending.
Financial Improvements
Quarterly revenue improved compared to Q2, with a 24% reduction in operating costs and a 28% improvement in cash flow from operations compared to the first half of 2024.
Strong Progress in Core Verticals
BEN saw strong progress in the healthcare, automotive, and financial services verticals, including a collaboration with KangarooHealth for enhanced remote patient monitoring.
Negative Updates
Pending Acquisition Challenges
The acquisition of Cantaneo is subject to closing conditions, including shareholder and regulatory approvals, and obtaining financing, which introduces uncertainty.
Revenue Concerns
Revenue from proof of concept and revenue sharing was not substantial, with reported revenue of $50,000, indicating that pilot programs have not yet converted into significant revenue streams.
Company Guidance
During the Q3 2024 earnings call for Brand Engagement Network (BEN), several key metrics and strategic developments were highlighted. CEO Paul Chang announced the impending acquisition of Cantaneo, a Munich-based media technology company, for $19.5 million, comprising $9 million in cash and 4.2 million BEN shares at $2.50 per share. This acquisition aims to expand BEN's reach in the global media technology market, valued at $45 billion, and enhance its conversational AI solutions. CFO Bill Williams reported a 24% reduction in costs compared to the first half of the year, resulting in a $1.5 million or 24% sequential operating profit improvement. Additionally, cash flow from operations improved by 28% sequentially. BEN also secured a $50 million standby equity facility to ensure liquidity and financial flexibility. The company emphasized its strong progress in health care, automotive, and financial services verticals, with significant partnerships such as the integration with Cox Automotive's Dealer.com platform. The call concluded with a vision to continue building market momentum, scaling platforms, and enhancing liquidity for the remainder of 2024 and beyond.Brand Engagement Network Corporate Events
Legal ProceedingsBusiness Operations and Strategy
Brand Engagement Network Faces Legal Challenges and AI Expansion
Negative
Jan 17, 2025
On January 17, 2025, Brand Engagement Network Inc. announced the termination of its Exclusive Reseller Agreement with AFG Companies, Inc., citing issues with AFG’s failure to provide necessary operational-ready data platforms and a concealed ransomware attack. This led to BEN filing a lawsuit against AFG and its CEO for fraudulent misrepresentation and breach of contract. Despite these challenges, BEN is moving forward with its automotive initiatives, including the rollout of its Automotive AI Agent aimed at improving dealership operations across over 13,000 dealerships. The company also continues to expand its AI healthcare solutions, emphasizing data security and regulatory compliance.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.