IZEA(US:IZEA)2024-11-14 21:15Revenue 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]