Toll-free dial-in number: 1-877-407-4018 ORLANDO, Fla., May 06, 2025 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (NASDAQ: IZEA), a leading influencer marketing company that makes Creator Economy solutions for marketers, announced today that its conference call to review and discuss its first quarter 2025 financial results will begin at 5:00 p.m. Eastern Daylight Time on May 13, 2025. IZEA's Chief Executive Officer Patrick Venetucci and Chief Financial Officer Peter Biere will host the call, followed by a quest ...

IZEA Worldwide, Inc. (NASDAQ:IZEA) Q4 2024 Earnings Conference Call March 27, 2025 5:00 PM ET Company Participants Matt Gray - Vice President, Marketing Peter Biere - Chief Financial Officer Patrick Venetucci - Chief Executive Officer Operator Greetings, and welcome to the IZEA Worldwide, Inc. Fourth Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Matt ...

Revenue and Financial Performance - Managed Services accounted for approximately 97.7% and 98.7% of the company's revenue during the twelve months ended December 31, 2024 and 2023, respectively[39]. - Total revenue for the twelve months ended December 31, 2024, was $35,881,010, a decrease of 1% from $36,214,598 in 2023[180]. - Managed Services revenue decreased by $682,662, or 2%, to $35,058,023, primarily due to the discontinuation of a significant customer relationship[181]. - SaaS Services revenue increased by $349,074, or 74%, to $822,987, driven by a growing number of licensees[182]. - Net loss for the twelve months ended December 31, 2024, was $18,852,261, an increase of $11,502,901, or 157%, from the prior year[192]. - The company reported a net loss from operations of $(18.9) million in 2024, significantly impacted by goodwill write-downs and one-time losses[211]. - Cash and cash equivalents increased to $44.6 million as of December 31, 2024, from $37.4 million in 2023, an increase of $7.2 million[205]. - Net cash used for operating activities was $(11.5) million in 2024, driven by cash flow funding and increases in net working capital[206]. - Managed services revenue, adjusting for the loss of a major customer and non-recurring revenues, was approximately $31.7 million, reflecting a 16.3% year-over-year increase[210]. - The company has a strong balance sheet with $51.1 million in cash and short-term investments and no debt[208]. Market and Industry Trends - The total global addressable market of the creator economy is estimated to grow to $480 billion by 2027[19]. - Marketing spend on influencer marketing tripled between 2019 and 2023 to more than $6 billion, with projections for continued growth[19]. - The company faces intense competition in the influencer and content marketing market, which may lead to reduced pricing, margins, and revenue due to lost market share[84]. - A potential ban on TikTok in the U.S. could materially impact advertising and e-commerce, negatively affecting the market for the company's services[95]. Product and Service Development - The company launched The Creator Marketplace in October 2022, enhancing functionality and allowing marketers to search a database of influencers[22]. - In January 2023, the company launched IZEA Flex, a flagship platform for enterprise influencer marketing, improving processes and workflows[23]. - Form AI, unveiled in June 2023, integrates advanced AI models to enhance content production efficiency while lowering costs for marketers and creators[30]. - The company launched the Marketplace on IZEA.com in October 2022 and Flex in January 2023, replacing previous platforms with upgraded functionality[89]. Operational Challenges and Risks - The company operates with a remote workforce, which presents operational challenges and increased security risks[71]. - The complexity of accounting practices may lead to significant fluctuations in reported revenue, affecting investor expectations and stock price[74]. - The company must continue to attract and retain software customers to increase software-related revenue and achieve profitability[90]. - The inability to maintain effective internal controls over financial reporting could impair the company's ability to produce accurate financial statements, affecting investor confidence[76]. - Security breaches could expose the company to legal and financial liabilities, damaging its reputation and user confidence in its platforms[108]. - The presence of defects in technology platforms could necessitate suspending services, adversely affecting business and reputation[109]. Legal and Regulatory Environment - The company is subject to various federal and state laws regarding privacy and data protection, which could significantly affect its business practices and operations[49]. - Compliance with evolving privacy laws, such as the EU's GDPR, could incur substantial operational costs and impact business practices, with potential fines up to €20 million or 4% of annual global revenues for noncompliance[102]. - The company must navigate the complexities of regulatory scrutiny on targeted advertising practices, which could affect its business model and revenue streams[105]. Shareholder and Stock Information - The company regained compliance with Nasdaq's Bid Price Rule in 2023 by executing a 4-for-1 reverse stock split after falling out of compliance in 2022[122]. - The company’s common stock may be delisted from Nasdaq if it fails to meet continued listing requirements, which could reduce liquidity and investor confidence[123]. - The company has approximately 104 shareholders of record as of March 25, 2025[158]. - The company has never paid cash dividends and does not anticipate doing so in the foreseeable future[159]. - The company authorized a stock repurchase program of up to $10.0 million, with purchases commencing on November 1, 2024[162]. Employee and Workforce Management - The company had 110 full-time employees and 1 part-time employee as of December 31, 2024, with 32 employees notified of termination effective January 2, 2025[61]. - The client development team has shifted strategies to reduce costs and enhance efficiencies, focusing on North American markets[32]. - The company may experience difficulties in attracting and retaining qualified personnel, which could impact its ability to manage operations and achieve objectives[119]. Financial Management and Capital Structure - The company may need to raise capital through new financings, which could include equity financing that may dilute existing shareholders[66]. - The company has incurred significant net losses and negative cash flow from operations for most periods since inception, raising concerns about future profitability[65]. - The company has engaged third-party service providers to enhance its cybersecurity risk mitigation efforts[147]. - The company has developed a cybersecurity program based on internationally recognized frameworks, including SOC-2 compliance[144].

Revenue Growth - Total revenue in Q4 2024 increased 23.7% to $11.0 million, compared to $8.9 million in Q4 2023[4] - Managed Services revenue increased by 24.0% to $10.9 million in Q4 2024, compared to $8.8 million in Q4 2023[7] - Managed Services bookings increased 52.8% to $11.7 million in Q4 2024, compared to $7.6 million in Q4 2023[7] - Revenue for Q4 2024 was $11,002,517, representing a 24% increase from $8,892,916 in Q4 2023[27] - Managed Services Revenue accounted for 99% of total revenue in Q4 2024, totaling $10,885,094, up 24% from $8,781,825 in Q4 2023[27] - SaaS Services Revenue increased by 74% year-over-year, reaching $822,987 in 2024 compared to $473,913 in 2023[27] Costs and Expenses - Total costs and expenses increased 28.0% to $14.2 million in Q4 2024, compared to $11.1 million in Q4 2023[7] - Total costs and expenses for Q4 2024 were $14,181,270, up from $11,081,417 in Q4 2023, reflecting a 28% increase[27] - Impairment expense for Q4 2024 was $113,755, while the company recorded a significant impairment of goodwill and intangible assets totaling $4,130,477 for the full year[29] Net Loss - Net loss in Q4 2024 was $4.6 million, compared to a net loss of $1.5 million in Q4 2023[8] - Net loss for Q4 2024 was $4,623,264, compared to a net loss of $1,526,657 in Q4 2023, indicating a significant increase in losses[25] - The company reported a total comprehensive loss of $4,396,551 for Q4 2024, compared to a loss of $1,263,931 in Q4 2023[25] - Adjusted EBITDA for Q4 2024 was $(1.5) million, compared to $(1.1) million in the same period last year[9] - Adjusted EBITDA for Q4 2024 was $(1,480,243), compared to $(1,105,973) in Q4 2023, showing a worsening operational performance[29] - The company experienced a loss on divestiture of $2,286,083 in Q4 2024, contributing to the overall net loss[29] Cash and Investments - Cash, cash equivalents, and investments as of December 31, 2024 totaled $51.1 million[9] Workforce and Divestiture - Targeted workforce reductions are expected to save $5.1 million annually in full-time and contract labor costs[7] - The company divested its Hoozu investment, which generated $3.4 million in revenue in 2024 and incurred a $0.7 million annual net loss[7] - New business was won from clients including Academy Sports, NHTSA, and Navy Federal Credit Union[7] Shares Outstanding - The weighted average common shares outstanding increased to 16,965,350 in Q4 2024 from 16,269,346 in Q4 2023[25]

Core Insights - IZEA Worldwide, Inc. reported a significant increase in total revenue for Q4 2024, rising 23.7% to $11.0 million compared to $8.9 million in Q4 2023, driven primarily by Managed Services revenue growth [5][9] - The company is undergoing a transformational change, focusing on operational efficiency and cost structure to accelerate profitability [4][10] - Despite revenue growth, the company reported a net loss of $4.6 million in Q4 2024, which included $2.7 million in one-time charges, compared to a net loss of $1.5 million in the same quarter of the previous year [7][9] Q4 2024 Financial Summary Compared to Q4 2023 - Total revenue increased by 23.7% to $11.0 million from $8.9 million [5] - Managed Services revenue rose by 24.0% to $10.9 million from $8.8 million [5] - SaaS Services revenue increased by 5.7% to $117,423 from the previous year [5] - Total costs and expenses grew by 28.0% to $14.2 million from $11.1 million [7] - Adjusted EBITDA for the quarter was $(1.5) million, compared to $(1.1) million in Q4 2023 [10] FY 2024 Financial Summary Compared to FY 2023 - Total revenue for FY 2024 was $35.9 million, a slight decrease from $36.2 million in FY 2023 [7] - Managed Services revenue for FY 2024 was $35.1 million, down 2% from $35.7 million in FY 2023 [28] - SaaS Services revenue increased by 74% to $823,000 from $474,000 in the previous year [28] - The net loss for FY 2024 was $18.9 million, including $8 million in one-time charges, compared to a net loss of $7.4 million in FY 2023 [7][9] Operational Highlights - Managed Services bookings increased by 52.8% to $11.7 million in Q4 2024 compared to $7.6 million in Q4 2023 [7] - The company implemented targeted workforce reductions, expected to save $5.1 million annually [8] - New business was secured from notable clients including Academy Sports, NHTSA, and Navy Federal Credit Union [7] - The company divested its investment in Hoozu, which generated $3.4 million in revenue for 2024 but incurred a $0.7 million annual net loss [7] Cash Position - As of December 31, 2024, the company had cash, cash equivalents, and investments totaling $51.1 million [10] - The company has no outstanding long-term debt [10]

Company Overview - IZEA Worldwide, Inc. is a creator economy solutions company that facilitates collaboration and transactions between brands and social influencers [3] - The company has launched the first influencer marketing platform in 2006 and has facilitated nearly 4 million transactions [3] - IZEA aims to help brands increase digital engagement, diversify brand voice, scale content production, and achieve measurable ROI [3] Upcoming Conference Call - IZEA will hold a conference call to discuss its fourth quarter 2024 and full-year financial results on March 27, 2025, at 5:00 p.m. EDT [1] - The call will be hosted by CEO Patrick Venetucci and CFO Peter Biere, followed by a Q&A session [1] - Participants are encouraged to call in five minutes before the start time, with a replay available for a limited period after the call [2]

Company Overview - IZEA Worldwide, Inc. is a leading provider of influencer marketing solutions within the Creator Economy, enabling brands to collaborate with top social influencers and content creators [4] - The company launched the first influencer marketing platform in 2006 and has facilitated nearly 4 million transactions between online buyers and sellers [4] - IZEA has partnered with leading brands and agencies, including half of the Fortune 50, to enhance digital engagement and drive measurable ROI [4] Leadership Appointment - Frank Carvalho has been appointed as Executive Vice President of Sales and Marketing, bringing over 30 years of global marketing experience [1][2] - Carvalho previously served as Chief Marketing Officer at Foap, where he expanded the company's global presence and strengthened partnerships with major social platforms [1] - His background includes leadership roles at agencies like Leo Burnett and Publicis Groupe, and with brands such as Coca-Cola, Merck, and Vodafone [2] Strategic Goals - Carvalho's expertise in marketing and understanding of the Creator Economy is expected to drive growth and innovation at IZEA [3] - The company aims to deepen partnerships and enhance its market position to empower creators, platforms, and brands globally [3] - CEO Patrick Venetucci emphasized that Carvalho's leadership will accelerate momentum and strengthen client partnerships [3]

Financial Data and Key Metrics - Total revenue for Q3 2024 was $8.8 million, a 12% increase compared to the prior year quarter Excluding revenue from a nonrecurring customer, revenue grew 27% year-over-year [7] - Managed Services revenue was $8.6 million, up 10% from Q3 2023 Excluding the nonrecurring customer, Managed Services revenue increased by $1.7 million or 25% [10] - SaaS Services revenue totaled $206,000, up significantly from $57,000 in the prior year quarter [11] - Net loss for Q3 2024 was $8.8 million or negative $0.52 per share, compared to a net loss of $2 million or negative $0.13 per share in Q3 2023 [14] - Adjusted EBITDA was negative $2.8 million, compared to negative $1.5 million in the prior year quarter [14] - Cash and investments totaled $54.4 million as of September 30, 2024, a decrease of $2.1 million during the quarter [15] Business Line Performance - Managed Services demand grew 11% to $7.9 million in Q3 2024, slightly lower than the first half of 2024 due to timing and reduced marketing budgets in emerging markets [8] - Managed Services backlog totaled $14.6 million on September 30, 2024, a decrease of $1 million from Q2 2024 but an increase of $3.4 million year-to-date [9] - SaaS Services revenue growth was driven by active use of IZEA's AI tools by customers [11] Market and Operational Highlights - The company won new business from major clients including Nestle, Danone, Coursera, and NHTSA [25] - IZEA launched IZZY, an AI assistant for marketers, leveraging its rich data set to enhance creator campaign decisions [26] - The company received multiple awards for its work, including the Global Influencer Marketing Awards and recognition as a Great Place to Work [26] Strategic Direction and Industry Competition - The company is focused on simplifying, fortifying, and focusing its go-to-market model to drive top-line growth and achieve profitability [27] - Resources are being shifted from merely growing business segments to those with profitable growth potential [27] - The 2025 business plan process is underway, with more strategic direction to be shared at the next investor meeting [28] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the company's future, citing a strong talent base, extensive client list, and robust tech product innovation pipeline [23] - The company is making progress in its transformational changes, with the Board and management confident in delivering value to stakeholders [28] Other Important Information - The company incurred a $4 million noncash charge due to goodwill impairment related to the 2019 acquisition of Tapinfluence [13] - IZEA adopted a Safe Harbor 10b5-1 plan to purchase shares, acquiring 51,503 shares at an average price of $2.74 for a total investment of $142,273 [16] - The company has no debt and is in a solid position to execute on organic growth and acquisition opportunities [17] Q&A Session Summary - No questions were asked during the Q&A session [30][33]

Financial Performance - Total revenue for the three months ended September 30, 2024, was $8,831,794, representing a 12% increase from $7,894,901 in the same period of 2023[134] - Total revenue for the nine months ended September 30, 2024 was $24,878,493, a decrease of $2,443,189 or 9% compared to the same period in 2023[144] - Managed Services revenue increased by $788,199, or 10%, from $7,837,725 in 2023 to $8,625,924 in 2024, with recurring customer revenue rising by $1.7 million, or 25%[135] - Managed Services revenue decreased by $2.8 million, or 10%, during the nine months ended September 30, 2024, while SaaS Services revenue increased by $342,742, or 94%[146] - SaaS Services revenue surged to $205,870 in Q3 2024, a 260% increase from $57,176 in Q3 2023, driven by a higher number of licensees[135] - Managed Services Bookings for the three months ended September 30, 2024 was $7.9 million, compared to $7.1 million for the same period in 2023[155] - Total gross billings for the three months ended September 30, 2024, reached $9,276,178, representing a 14% increase from $8,110,050 in the prior year[157] - SaaS Services gross billings for the three months ended September 30, 2024, were $650,254, a significant 139% increase from $272,325 in the same period of 2023[157] Expenses and Losses - Cost of revenue for Q3 2024 was $5,210,104, an 11% increase from $4,685,437 in Q3 2023[134] - General and administrative expenses rose significantly by 93% to $5,840,027 in Q3 2024, compared to $3,032,759 in Q3 2023[134] - The impairment of goodwill was recorded at $4,016,722 in Q3 2024, marking a 100% increase from zero in Q3 2023[134] - Total costs and expenses for Q3 2024 amounted to $18,186,022, a 73% increase from $10,536,041 in Q3 2023[134] - Net loss for Q3 2024 was $8,768,319, a 342% increase from $1,982,938 in Q3 2023[134] - General and administrative expense for the three months ended September 30, 2024 increased by $2.8 million, or approximately 93%, primarily due to higher human capital costs related to executive departures[138] - Net loss from operations for the nine months ended September 30, 2024 was $14.2 million, an increase of $8.4 million from the net loss of $5.8 million for the same period in 2023[153] - The company reported a net loss of $8,768,319 for the three months ended September 30, 2024, compared to a net loss of $1,982,938 in the same period of 2023[161] - Adjusted EBITDA for the three months ended September 30, 2024, was $(2,833,720), which is a decline from $(1,549,080) in the same period of 2023[161] Cash and Financial Position - Cash and cash equivalents increased to $46.0 million as of September 30, 2024, up from $37.4 million as of December 31, 2023[162] - The company incurred net cash used for operating activities of $(8,657,588) during the nine months ended September 30, 2024, compared to $(5,679,905) in the same period of 2023[163] - The company has a total accumulated deficit of $99.7 million as of September 30, 2024[162] Corporate Developments - The company acquired 26 Talent, an Australian talent management agency, on July 1, 2024, enhancing its capabilities in the Asia-Pacific region[127] - The company appointed Patrick J. Venetucci as the new CEO on September 6, 2024, following the resignation of Ted Murphy and Ryan Schram[127] - The Board of Directors has established a Strategic and Capital Allocation Committee to review business strategies and formulate a plan for sustainable profitability[165] Accounting and Reporting - No material changes to critical accounting policies were reported in the Annual Report for the year ended December 31, 2023[167] - For a summary of significant accounting policies, refer to "Note 1 Company and Summary of Significant Accounting Policies" in the Quarterly Report[167] - Recent accounting pronouncements are detailed in "Note 1. Company and Summary of Significant Accounting Policies" in the Quarterly Report[168] - Market risk disclosures are not applicable to smaller reporting companies[169]

Revenue Performance - Total revenue for Q3 2024 increased by 12% to $8.8 million, compared to $7.9 million in Q3 2023[2] - Managed Services bookings rose by 11% to $7.9 million, while Managed Services revenue increased by 10% to $8.6 million[2] - Revenue from SaaS Services surged by 260% to $205,870 compared to Q3 2023[5] - Total revenue for the three months ended September 30, 2024, was $8,831,794, representing a 12% increase from $7,894,901 in the same period of 2023[18] - Managed Services revenue for the three months ended September 30, 2024, was $8,625,924, a 10% increase from $7,837,725 in the prior year[20] - SaaS Services revenue for the three months ended September 30, 2024, was $205,870, a significant increase of 260% from $57,176 in the same period of 2023[20] Financial Losses - Net loss for Q3 2024 was $8.8 million, or $(0.52) per share, compared to a net loss of $2.0 million, or $(0.13) per share in Q3 2023[8] - Adjusted EBITDA for the quarter was a loss of $2.8 million, compared to a loss of $1.5 million in the prior year[9] - The net loss for the three months ended September 30, 2024, was $8,768,319, compared to a net loss of $1,982,938 in the same period of 2023[19] - The nine months ended September 30, 2024, showed a net loss of $14,228,997 compared to a net loss of $5,822,703 in the same period of 2023[22] Costs and Expenses - Total costs and expenses increased by 73% to $18.2 million, including a $4.0 million non-cash charge for goodwill impairment[2] - Total costs and expenses for the three months ended September 30, 2024, were $18,186,022, compared to $10,536,041 in the same period of 2023[18] - The impairment of goodwill and intangible assets amounted to $4,016,722 for the three months ended September 30, 2024, with no impairment recorded in 2023[22] - Non-cash stock-based compensation for the three months ended September 30, 2024, was $1,579,236, up from $239,353 in 2023[22] - Depreciation and amortization expenses for the three months ended September 30, 2024, were $239,849, compared to $117,544 in 2023[22] - Interest expense for the three months ended September 30, 2024, was $1,654, consistent with the same amount in 2023[22] Assets and Equity - Cash, cash equivalents, and investments totaled $54.4 million as of September 30, 2024, with no outstanding long-term debt[11] - Total assets decreased to $68,135,888 as of September 30, 2024, from $79,425,466 as of December 31, 2023[17] - Total stockholders' equity decreased to $53,288,890 as of September 30, 2024, from $65,313,388 as of December 31, 2023[17] - The accumulated deficit as of September 30, 2024, was $(99,673,791), an increase from $(85,444,794) as of December 31, 2023[17] Business Developments - The company launched IZZY, an AI assistant for marketers, enhancing its technology offerings[3] - New business was secured from major clients including Nestlé, Danone, and Coursera, indicating market expansion[4] - The company has initiated a stock repurchase program with a commitment to buy $10.0 million of its stock[10] Shareholder Information - The weighted average common shares outstanding for the three months ended September 30, 2024, were 16,956,497, compared to 15,463,334 in the same period of 2023[18] - Basic and diluted loss per common share for the three months ended September 30, 2024, was $(0.52), compared to $(0.13) in the same period of 2023[18] - Adjusted EBITDA as a percentage of revenue for the three months ended September 30, 2024, was (32)%, compared to (20)% in the same period of 2023[22]