IZEA(US:IZEA)2024-11-14 21:16Financial 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]