IZEA(IZEA) - 2025 Q1 - Quarterly Results

Executive Summary & Q1 2025 Highlights IZEA reported strong Q1 2025 results with significant revenue growth, improved profitability, and strategic operational advancements, highlighting the success of recent business transformations Q1 2025 Performance Overview IZEA reported a strong Q1 2025 with core operations revenue up 23% and total revenue up 15% to $8.0 million, significantly improving net income to $(0.01) per share and achieving cash positive operations | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :----- | :------ | :------ | :----- | :------- | | Total Revenue | $8.0 million | $7.0 million | $1.0 million | 15% | | Revenue from Core Operations | | | | 23% | | Net Loss per Share | $(0.01) | $(0.20) | $0.19 | -95% | Management Commentary CEO Patrick Venetucci highlighted Q1 2025 as an exceptional quarter, demonstrating the success of Q4 2024's transformational changes, including a new go-to-market model, cost structure, and technologies, which are accelerating the path to profitability - Q1 was an exceptional quarter and a giant step towards making good on our promise to accelerate our path to profitability[3] - Strong evidence that the transformational changes made in Q4 2024 are working, with new go-to-market model, cost structure, and technologies aligning and bearing fruit[3] Detailed Financial Results Total revenue increased 15% YoY, driven by a 28% increase in Managed Services revenue from ongoing customers, while SaaS Services revenue decreased significantly due to a pause in marketing efforts during business transformation. Costs and expenses saw substantial reductions, leading to a dramatic improvement in net loss | Metric | Q1 2025 | Q1 2024 | Change | % Change | | :----- | :------ | :------ | :----- | :------- | | Total Revenue | $7,968,363 | $6,952,883 | $1,015,480 | 15% | | Managed Services Revenue (ongoing customers) | $7.9 million | | | 28% | | SaaS Services Revenue | $60,953 | | | -76% | | Cost of Revenue | $4.4 million (55% of revenue) | $4.0 million (57% of revenue) | $0.4 million | 10% | | Total Costs and Expenses (excl. CoR) | $4.2 million | $7.0 million | -$2.8 million | -40% | | Sales and Marketing Costs | $1.1 million | $3.1 million | -$2.0 million | -63% | | General and Administrative Costs | $2.9 million | $3.7 million | -$0.8 million | -22% | | Net Loss | $(0.1) million | $(3.3) million | $3.2 million | -97% | - SaaS Services revenue decreased by 76% due to a temporary pause in marketing efforts during business transformation[4] - Decrease in sales and marketing costs (63%) and general and administrative costs (22%) largely due to targeted workforce reduction, reduced external contractors, and lower advertising/professional services spending[6] Key Financial & Operational Highlights The company achieved a significant reduction in Adjusted EBITDA loss, improved its cash position, and continued its stock repurchase program. Operationally, IZEA recruited a new EVP Sales and Marketing, launched a new homepage, and secured new business from notable brands | Metric | Q1 2025 | Q1 2024 | Change | | :----- | :------ | :------ | :----- | | Adjusted EBITDA | $(0.1) million | $(3.4) million | $3.3 million improvement | | Cash, Cash Equivalents, and Investments (as of March 31, 2025) | $52.2 million | | $1.1 million YTD improvement | - Purchased 180,486 shares for $0.4 million in Q1 2025 under the $10.0 million stock repurchase program, with total purchases reaching 401,480 shares for $1.0 million through May 8, 2025[10] - Recruited Frank Carvalho as EVP Sales and Marketing, launched the all-new IZEA.com homepage, and won new business from Nestle, Acer, Jeep, Clorox, Carnation Breakfast Essentials, Matin Kim, Academy Sports, and Coursera[8] Corporate Information & Disclosures This section provides details on the Q1 2025 conference call, company overview, definitions of key financial metrics, and important legal disclaimers Conference Call Details IZEA scheduled a conference call for May 13, 2025, at 5:00 p.m. EDT to discuss Q1 2025 results, hosted by CEO Patrick Venetucci and CFO Peter Biere, with replay available until May 20, 2025 - Conference call to discuss Q1 2025 results on Tuesday, May 13, 2025, at 5:00 p.m. EDT, hosted by CEO Patrick Venetucci and CFO Peter Biere[11] - Replay available until Tuesday, May 20, 2025, at 11:59 p.m. EDT[11] About IZEA Worldwide, Inc. IZEA Worldwide, Inc. is a leading influencer marketing company focused on creating Creator Economy solutions for marketers, having facilitated nearly 4 million collaborations since launching its first platform in 2006 - IZEA Worldwide, Inc. is an influencer marketing company dedicated to making creator economy solutions for marketers[12] - Since launching the industry's first influencer marketing platform in 2006, IZEA has facilitated nearly 4 million collaborations between brands and creators[12] Use of Key Metrics and Non-GAAP Financial Measures This section defines "Managed Services bookings" as sales orders less cancellations/refunds, used for operational planning but not direct revenue prediction, and "Adjusted EBITDA" as a non-GAAP measure excluding non-cash and non-operating items, used to facilitate period-to-period comparisons - Managed Services bookings measure all sales orders received during a period less cancellations or refunds, used by management for operational planning, customer trend identification, go-to-market activities, and product development[13][14] - Adjusted EBITDA is a non-GAAP measure defined as earnings or loss before interest expense, interest income, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items[15] - Adjusted EBITDA provides useful information by primarily excluding non-cash and non-operating transactions, facilitating period-to-period comparisons, but should not be considered in isolation or as a substitute for GAAP measures[16][17] Safe Harbor Statement The Safe Harbor Statement clarifies that the release contains forward-looking statements, which are subject to inherent risks and uncertainties that could cause actual results to differ materially, and IZEA assumes no obligation to update them - All statements not based on historical fact are 'forward-looking statements' subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[18] - Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially, and IZEA assumes no obligation to update them except as required by law[18] Press Contact Provides contact information for press inquiries, including name, phone, and email - Press Contact: Matt Gray, IZEA Worldwide, Inc., Phone: 407-674-6911, Email: ir@izea.com[19] Unaudited Consolidated Financial Statements This section presents the unaudited consolidated balance sheets, statements of operations, and comprehensive loss for Q1 2025 and comparative periods Unaudited Consolidated Balance Sheets As of March 31, 2025, total assets were $59.3 million, a decrease from $62.2 million at December 31, 2024, primarily due to decreases in accounts receivable and short-term investments. Total liabilities also decreased, leading to a slight reduction in total stockholders' equity | Balance Sheet Item | March 31, 2025 | December 31, 2024 | Change | | :----------------- | :------------- | :---------------- | :----- | | Total Assets | $59,341,031 | $62,220,274 | -$2,879,243 | | Cash and cash equivalents | $50,612,348 | $44,644,468 | +$5,967,880 | | Accounts receivable, net | $4,269,114 | $7,781,824 | -$3,512,710 | | Short term investments | $1,572,233 | $6,427,488 | -$4,855,255 | | Total Current Liabilities | $11,069,144 | $13,434,521 | -$2,365,377 | | Total Liabilities | $11,069,144 | $13,438,555 | -$2,369,411 | | Total Stockholders' Equity | $48,271,887 | $48,781,719 | -$509,832 | Unaudited Consolidated Statements of Operations For Q1 2025, IZEA reported a net loss of $(0.14) million, a significant improvement from $(3.27) million in Q1 2024, driven by increased revenue and substantial reductions in sales & marketing and general & administrative expenses | Income Statement Item | Q1 2025 | Q1 2024 | Change | | :-------------------- | :------ | :------ | :----- | | Revenue | $7,968,363 | $6,952,883 | +$1,015,480 | | Total Costs and Expenses | $8,624,215 | $11,011,538 | -$2,387,323 | | Loss from Operations | $(655,852) | $(4,058,655) | +$3,402,803 | | Net Loss | $(142,800) | $(3,265,850) | +$3,123,050 | | Basic and Diluted Loss per Common Share | $(0.01) | $(0.20) | +$0.19 | Unaudited Consolidated Statements of Comprehensive Loss The total comprehensive loss for Q1 2025 was $(0.27) million, a substantial improvement compared to $(3.20) million in Q1 2024, primarily due to the reduced net loss, despite negative other comprehensive income from unrealized losses on securities and currency translation | Comprehensive Loss Item | Q1 2025 | Q1 2024 | Change | | :---------------------- | :------ | :------ | :----- | | Net Loss | $(142,800) | $(3,265,850) | +$3,123,050 | | Total Other Comprehensive Income (Loss) | $(123,362) | $62,347 | -$185,709 | | Total Comprehensive Income (Loss) | $(266,162) | $(3,203,503) | +$2,937,341 | Supplementary Financial Information This section provides detailed revenue breakdowns by service type and a reconciliation of GAAP net loss to non-GAAP Adjusted EBITDA Revenue Details by Type Managed Services Revenue from Core Operations increased by 28% to $7.9 million, representing 99% of total revenue, while SaaS Services Revenue decreased by 76% to $60,953. Total revenue grew 15% year-over-year | Revenue Type | Q1 2025 | % of Total | Q1 2024 | % of Total | $ Change | % Change | | :----------- | :------ | :--------- | :------ | :--------- | :------- | :------- | | Managed Services Revenue from Core Operations | $7,907,410 | 99% | $6,199,226 | 89% | $1,708,184 | 28% | | Managed Services Revenue - Hoozu | $0 | 0% | $497,316 | 7% | $(497,316) | (49)% | | Total Managed Services Revenue | $7,907,410 | 99% | $6,696,542 | 96% | $1,210,868 | 18% | | SaaS Services Revenue | $60,953 | 1% | $256,341 | 4% | $(195,388) | (76)% | | Total Revenue | $7,968,363 | 100% | $6,952,883 | 100% | $1,015,480 | 15% | Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA IZEA's Adjusted EBITDA for Q1 2025 was $(76,850), a significant improvement from $(3,421,661) in Q1 2024, after adjusting for non-cash and non-operating items such as stock-based compensation, depreciation, and interest income/expense | Item | Q1 2025 | Q1 2024 | | :--- | :------ | :------ | | Net loss from operations | $(142,800) | $(3,265,850) | | Non-cash stock-based compensation | $285,132 | $354,189 | | Non-cash stock issued for payment of services | $90,002 | $75,006 | | Depreciation and amortization | $160,352 | $204,186 | | Interest expense | $1,654 | $2,001 | | Interest income | $(471,190) | $(666,252) | | Adjusted EBITDA | $(76,850) | $(3,421,661) | - Adjusted EBITDA presentation varies from prior disclosure, primarily to exclude non-operating items such as interest income[29]