IZEA Worldwide Inc. (NASDAQ:IZEA) Q1 2021 Earnings Conference Call May 13, 2021 5:00 PM ET Company Participants Ryan Schram – President and Chief Operating Officer Peter Biere – Chief Financial Officer Ted Murphy – Chairman and Chief Executive Officer Conference Call Participants Jon Hickman – Ladenburg Operator Good day. And welcome to IZEA Worldwide Incorporated First Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. At this time, I'll tu ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) IZEA's Q1 2021 revenue increased 13% to $5.4 million, with net loss improving to $2.0 million from $6.2 million due to the absence of a $4.3 million goodwill impairment, while cash and equivalents grew to $65.5 million from $33.0 million, boosted by $33.6 million from stock sales [Unaudited Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) As of March 31, 2021, the company's total assets increased to $75.8 million from $44.8 million at the end of 2020, primarily driven by a significant rise in cash and cash equivalents to $65.5 million, while total liabilities remained stable at $12.5 million, leading to a substantial increase in total stockholders' equity to $63.3 million Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $65,465,588 | $33,045,225 | | Total current assets | $69,966,275 | $38,526,191 | | Total assets | $75,847,757 | $44,752,071 | | **Liabilities & Equity** | | | | Total current liabilities | $12,376,338 | $12,462,520 | | Total liabilities | $12,549,530 | $12,965,711 | | Total stockholders' equity | $63,298,227 | $31,786,360 | [Unaudited Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the three months ended March 31, 2021, revenue increased 13% to $5.4 million compared to $4.8 million in the prior-year period, and the company reported a net loss of $2.0 million, or ($0.04) per share, a significant improvement from a net loss of $6.2 million, or ($0.18) per share, in Q1 2020, largely due to the absence of a $4.3 million goodwill impairment charge Consolidated Statements of Operations Highlights (Unaudited) | Metric | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Revenue | $5,375,632 | $4,763,668 | | Total costs and expenses | $7,383,751 | $10,882,767 | | Impairment of goodwill | $0 | $4,300,000 | | Loss from operations | ($2,008,119) | ($6,119,099) | | Net loss | ($1,992,438) | ($6,163,461) | | Basic and diluted loss per common share | ($0.04) | ($0.18) | [Unaudited Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) For the first quarter of 2021, net cash used in operating activities was $0.8 million, while net cash provided by financing activities was $33.3 million, primarily from $34.4 million in proceeds from the sale of securities, resulting in a net increase in cash and cash equivalents of $32.4 million, bringing the quarter-end balance to $65.5 million Consolidated Statements of Cash Flows Highlights (Unaudited) | Cash Flow Activity | Three Months Ended Mar 31, 2021 | Three Months Ended Mar 31, 2020 | | :--- | :--- | :--- | | Net cash used for operating activities | ($829,707) | ($1,348,372) | | Net cash used for investing activities | ($13,217) | ($51,004) | | Net cash provided by financing activities | $33,263,287 | $1,149,188 | | Net increase (decrease) in cash | $32,420,363 | ($250,188) | | Cash and cash equivalents, end of period | $65,465,588 | $5,634,441 | [Notes to the Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail the company's business as an online marketplace connecting marketers with content creators through platforms like IZEAx, BrandGraph, and Shake, including disclosures on revenue sources, a pending $1.9 million PPP loan forgiveness, significant equity financing through ATM offerings raising $34.4 million in Q1 2021, and a $4.3 million goodwill impairment recognized in Q1 2020 due to COVID-19 - The company operates online marketplaces (IZEAx, BrandGraph, Shake) that connect marketers with content creators for influencer marketing and custom content creation[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - In Q1 2020, the company recorded a **$4.3 million** goodwill impairment charge due to adverse economic conditions caused by the COVID-19 pandemic[79](index=79&type=chunk) - The company received a **$1.9 million** PPP loan in April 2020 and submitted a forgiveness application in December 2020, which is awaiting SBA approval[86](index=86&type=chunk)[88](index=88&type=chunk) - During Q1 2021, the company sold **8.7 million shares** through its ATM offerings for gross proceeds of **$34.4 million**[103](index=103&type=chunk) Revenue by Product Service Type (Q1 2021 vs Q1 2020) | Revenue Type | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Managed Services Revenue | $4,872,034 | $4,125,061 | | SaaS Services Revenue | $503,598 | $638,607 | | **Total Revenue** | **$5,375,632** | **$4,763,668** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a 13% YoY revenue increase to $5.4 million in Q1 2021, driven by 18% growth in Managed Services despite a 21% decline in SaaS Services, with net loss improving significantly to $2.0 million from $6.2 million due to the absence of a $4.3 million goodwill impairment, and liquidity substantially enhanced to $65.5 million cash from ATM offerings, sufficient for at least twelve months [Company Overview and COVID-19 Impact](index=28&type=section&id=Company%20Overview%20and%20COVID-19%20Impact) IZEA operates online marketplaces connecting marketers with content creators via its technology platforms IZEAx, BrandGraph, and Shake, and despite an initial negative impact from COVID-19 in 2020, the company saw a rebound in Managed Services bookings in Q4 2020 and Q1 2021, leading to 13% overall revenue growth in Q1 2021, while transitioning to a permanent 'virtual first' work-from-home model - IZEA's primary business is connecting marketers with content creators through its technology platforms: IZEAx, BrandGraph, and Shake[143](index=143&type=chunk)[146](index=146&type=chunk)[147](index=147&type=chunk) - The company transitioned to a permanent work-from-home policy and allowed office leases to expire in 2020[148](index=148&type=chunk) - After an initial negative impact from COVID-19 in 2020, the company saw a year-over-year increase in Managed Services bookings in Q4 2020 and Q1 2021, leading to **13%** overall revenue growth in Q1 2021[149](index=149&type=chunk)[150](index=150&type=chunk) [Results of Operations](index=31&type=section&id=Results%20of%20Operations) Total revenue for Q1 2021 increased 13% to $5.4 million, driven by an 18% rise in Managed Services revenue to $4.9 million as customers expanded marketing efforts, while SaaS Services revenue declined 21% to $0.5 million, and total costs and expenses decreased 32% to $7.4 million due to the non-recurrence of a $4.3 million goodwill impairment, resulting in a narrowed net loss of $2.0 million from $6.2 million in the prior year Summary of Operations (Q1 2021 vs Q1 2020) | Metric | Q1 2021 | Q1 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $5,375,632 | $4,763,668 | $611,964 | 13% | | Total costs and expenses | $7,383,751 | $10,882,767 | ($3,499,016) | (32)% | | Loss from operations | ($2,008,119) | ($6,119,099) | $4,110,980 | (67)% | | Net loss | ($1,992,438) | ($6,163,461) | $4,171,023 | (68)% | - Managed Services revenue grew **18% YoY** due to increased orders from new and existing customers expanding their marketing efforts[161](index=161&type=chunk) - SaaS Services revenue fell **21% YoY**, primarily due to lower Marketplace Spend Fees and a decrease in License Fees from competitive pricing changes[161](index=161&type=chunk)[163](index=163&type=chunk) - Sales and marketing expenses increased **36%** due to higher advertising spending to build brand awareness and increased commission expenses from higher customer bookings[166](index=166&type=chunk) [Key Metrics and Non-GAAP Measures](index=33&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Measures) The company uses Gross Billings as a key metric, which increased 9% to $6.6 million in Q1 2021, driven by an 18% increase in Managed Services despite an 11% decrease in SaaS Services Gross Billings, while Adjusted EBITDA, a non-GAAP measure, was a loss of $1.4 million, slightly higher than the $1.2 million loss in Q1 2020 Gross Billings by Revenue Type (Q1 2021 vs Q1 2020) | Gross Billings Type | Q1 2021 | Q1 2020 | % Change | | :--- | :--- | :--- | :--- | | Managed Services | $4,872,034 | $4,125,061 | 18% | | SaaS Services | $1,746,393 | $1,972,088 | (11)% | | **Total Gross Billings** | **$6,618,427** | **$6,097,149** | **9%** | Adjusted EBITDA Reconciliation (Non-GAAP) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net loss (GAAP) | ($1,992,438) | ($6,163,461) | | Adjustments | $604,090 | $4,968,708 | | **Adjusted EBITDA (Non-GAAP)** | **($1,388,348)** | **($1,194,753)** | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity significantly improved, with cash and cash equivalents increasing by $32.4 million during the quarter to reach $65.5 million as of March 31, 2021, primarily driven by net proceeds of approximately $33.6 million from at-the-market (ATM) stock offerings, and management believes its current cash reserves are sufficient to cover expenses for at least the next twelve months, despite a pending $1.9 million PPP loan forgiveness application - Cash and cash equivalents increased to **$65.5 million** at March 31, 2021, from **$33.0 million** at December 31, 2020[184](index=184&type=chunk) - Financing activities provided **$33.3 million** in cash, mainly from the sale of common stock through ATM offerings[185](index=185&type=chunk) - From June 2020 to April 2021, the company sold a total of **26 million shares** for gross proceeds of approximately **$75 million** through its ATM offerings[186](index=186&type=chunk)[139](index=139&type=chunk) - Management expects to have sufficient cash to cover expenses for at least one year from the report's issuance date[188](index=188&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company is a smaller reporting company - Disclosure is not required for smaller reporting companies[192](index=192&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2021, with no material changes in internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[196](index=196&type=chunk) - No material changes were made to the company's internal control over financial reporting during the first quarter of 2021[199](index=199&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it is not currently aware of any legal proceedings or claims that would be expected to have a material adverse effect on the business - As of May 10, 2021, the company is not aware of any legal proceedings that could have a material adverse effect[201](index=201&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) The company highlights the extreme price and volume volatility its common stock has recently experienced, noting that the stock price has fluctuated significantly and may be influenced by factors such as 'short squeeze' activity, potentially unrelated to operating performance - The company's common stock has recently experienced extreme price and volume volatility, which may be unrelated to its operating performance[204](index=204&type=chunk) - From January 1, 2020, to December 31, 2020, the stock's closing price ranged from **$0.13** to **$2.82**, and in January 2021, it reached an intraday high of **$7.45**[204](index=204&type=chunk) - The company acknowledges that its stock price may be subject to 'short squeeze' activity, which can lead to short-term, high volatility trading conditions[205](index=205&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not sell any unregistered securities during the period covered by this report, other than what may have been previously reported on Form 8-K - The Company did not sell any unregistered securities during the quarter[207](index=207&type=chunk)

Financial Data and Key Metrics Changes - For Q4 2020, total revenue was $6.4 million, a 10% increase from $5.9 million in Q4 2019, with $5.9 million from Managed Services and $537,000 from SaaS offerings [6] - Managed Service revenue increased by 17% to $842,000 compared to Q4 2019, while SaaS Services revenue declined by $274,000 [6][8] - Gross billings rose to $8 million in Q4 2020 from $7.8 million in Q4 2019, a 2% increase [8] - Net loss improved to $1 million or $0.02 per share in Q4 2020 from a net loss of $2.3 million or $0.07 per share in Q4 2019 [11] - Adjusted EBITDA improved by $825,000 or 64% to negative $467,000 in Q4 2020 compared to negative $1.3 million in Q4 2019 [12] Business Line Data and Key Metrics Changes - Managed Services bookings increased approximately 48% in Q4 2020 compared to Q4 2019, leading to a revenue increase of $2.3 million or nearly 67% compared to Q3 2020 [7] - SaaS Services revenue saw a decline due to customer churn and changed spending habits, resulting in a total of $537,000 in Q4 2020 [6][8] Market Data and Key Metrics Changes - The company reported a revenue backlog of approximately $10.6 million entering 2021, indicating expected revenue growth [13] - As of December 31, 2020, the company had cash on hand of $33 million and raised an additional $34.3 million in early 2021 [14] Company Strategy and Development Direction - The company aims to transition to aggressive growth mode, focusing on expanding its customer base and increasing the inventory of creators available on its platform [41] - Investments in engineering and product teams are being made to enhance existing platforms and develop new software products [39][38] - The introduction of new products like BrandGraph and Shake is part of the strategy to connect buyers and sellers in the Creator Economy [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty surrounding the COVID-19 pandemic but expressed confidence in the company's ability to adapt and thrive [20][42] - The company plans to triple its marketing investment in 2021 to increase brand awareness and significantly grow revenue [40] Other Important Information - The company has formed partnerships to enhance its service offerings and streamline investments for global brands [24][25] - A new version of the IZEAx platform is expected to launch, integrating features from Shake and BrandGraph [56] Q&A Session Summary Question: Clarification on bookings in Q4 - Bookings in Q4 were $8.3 million, with Managed Services accounting for $6.6 million [48][49] Question: Share count after recent capital raise - The current share count is 59 million shares outstanding [50] Question: Marketing spend increase - The company plans to spend three times more on marketing compared to last year, focusing on various platforms [51][64] Question: Revenue expectations for 2021 - While not providing specific guidance, management noted a strong Q1 pipeline and over 100% growth in Managed Services bookings [58] Question: Competition with Fiverr - The company differentiates itself by offering higher quality inventory and pricing compared to Fiverr [70] Question: Future of NFTs in relation to Shake - Management sees potential for digital assets and collectibles within Shake, but acknowledges current inefficiencies in the NFT space [76]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File No.: 001-37703 IZEA WORLDWIDE, INC. (Exact name of registrant as specified in its charter) Nev ...

IZEA Worldwide, Inc. (NASDAQ:IZEA) Q3 2020 Earnings Conference Call November 12, 2020 5:00 PM ET Company Participants Ryan Schram - Chief Operating Officer Ted Murphy - Chairman and Chief Executive Officer LeAnn Hitchcock - Interim Chief Financial Officer Conference Call Participants Graham Hickman - Ladenburg Thalmann Mike Jeffrey - Private Investor Andrew Hanna - Private Investor Operator Thank you for standing by. This is the conference operator. Welcome to the IZEA Worldwide, Inc., Third Quarter 2020 Ea ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File No.: 001-37703 IZEA WORLDWIDE, INC. (Exact name of registrant as specified in its cha ...

IZEA Worldwide, Inc. (NASDAQ:IZEA) Q2 2020 Earnings Conference Call August 13, 2020 5:00 PM ET Company Participants Ryan Schram - Chief Operating Officer LeAnn Hitchcock - Interim Chief Financial Officer Ted Murphy - Founder, Chairman, Chief Executive Officer Conference Call Participants Operator Greeting and welcome to the IZEA, Inc., Second Quarter 2020 Earnings Conference Call. At this time, all participants will be in a listen-only mode. A question-and-answer session will follow the formal presentation. ...

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File No.: 001-37703 IZEA WORLDWIDE, INC. Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 (Exact name of registrant as specified in its charter) ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________________ to _________________ Commission File No.: 001-37703 IZEA WORLDWIDE, INC. (Exact name of registrant as specified in its charter ...