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IZEA(IZEA) - 2025 Q1 - Quarterly Report
IZEAIZEA(US:IZEA)2025-05-13 20:03

PART I. FINANCIAL INFORMATION Item 1. Financial Statements IZEA Worldwide, Inc. reported a revenue increase to $8.0 million and a significant reduction in net loss to $0.14 million for Q1 2025, with cash and cash equivalents rising to $50.6 million Unaudited Consolidated Balance Sheets Consolidated Balance Sheet Summary | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $50,612,348 | $44,644,468 | | Accounts receivable, net | $4,269,114 | $7,781,824 | | Total current assets | $57,161,841 | $60,030,040 | | Total assets | $59,341,031 | $62,220,274 | | Liabilities & Stockholders' Equity | | | | Total current liabilities | $11,069,144 | $13,434,521 | | Total liabilities | $11,069,144 | $13,438,555 | | Total stockholders' equity | $48,271,887 | $48,781,719 | | Total liabilities and stockholders' equity | $59,341,031 | $62,220,274 | Unaudited Consolidated Statements of Operations Consolidated Statement of Operations Summary | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenue | $7,968,363 | $6,952,883 | | Total costs and expenses | $8,624,215 | $11,011,538 | | Loss from operations | ($655,852) | ($4,058,655) | | Net loss | ($142,800) | ($3,265,850) | | Basic and diluted loss per common share | ($0.01) | ($0.20) | Unaudited Consolidated Statements of Cash Flows Consolidated Statement of Cash Flows Summary | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2,008,132 | ($3,341,872) | | Net cash provided by investing activities | $4,715,817 | $4,971,123 | | Net cash used in financing activities | ($618,804) | ($37,233) | | Net increase in cash and cash equivalents | $5,967,880 | $1,592,018 | | Cash and cash equivalents, end of period | $50,612,348 | $39,035,332 | Notes to the Unaudited Consolidated Financial Statements - The company's primary revenue sources are Managed Services (custom content, influencer marketing) and SaaS Services (platform access, transaction fees), with revenue recognized based on the five-step model of ASC 6064445 - For the three months ended March 31, 2025, the company repurchased 401,480 shares at an average price of $2.61 per share, totaling $1.0 million under its active share repurchase program93 Revenue by Service Type | Service Type | Q1 2025 Revenue | Q1 2024 Revenue | | :--- | :--- | :--- | | Managed Services | $7,907,410 | $6,696,542 | | SaaS Services | $60,953 | $256,341 | | Total Revenue | $7,968,363 | $6,952,883 | Revenue by Geographic Region | Region | Q1 2025 Revenue | Q1 2024 Revenue | | :--- | :--- | :--- | | North America | $7,628,344 | $5,490,415 | | APAC | $237,827 | $1,027,859 | | Other | $102,192 | $434,609 | | Total | $7,968,363 | $6,952,883 | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation Management attributes 15% revenue growth and a significant reduction in net loss to $0.1 million in Q1 2025 to increased Managed Services and cost reductions, maintaining $52.2 million in cash and no debt Results of Operations Q1 2025 vs Q1 2024 Results of Operations | Metric | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Revenue | $7,968,363 | $6,952,883 | $1,015,480 | 15% | | Total costs and expenses | $8,624,215 | $11,011,538 | ($2,387,323) | (22)% | | Loss from operations | ($655,852) | ($4,058,655) | $3,402,803 | (84)% | | Net loss | ($142,800) | ($3,265,850) | $3,123,050 | (96)% | - Managed Services revenue increased by 18% YoY, with an increase from ongoing operations of 28% when excluding $0.5 million revenue from the divested Hoozu unit in Q1 2024155 - SaaS Services revenue decreased by 76% YoY to $60,953, reflecting a strategic shift away from SaaS products156 - Sales and marketing expenses decreased by 63% ($1.9 million) due to lower payroll costs from the December 2024 workforce reduction and a pause in advertising spending157158 - General and administrative expenses decreased by 22% ($0.8 million) due to lower employee-related costs, reduced contractor use, and lower professional service fees159 Key Metrics - Managed Services Bookings, representing all sales orders received less cancellations, was $7.5 million for Q1 2025, compared to $9.3 million for Q1 2024164 - The average time for bookings to convert to revenue improved from a 9-month average to approximately 7.5 months in the latter half of 2023164 Non-GAAP Financial Measure Reconciliation of Net Loss to Adjusted EBITDA | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net loss from operations | ($142,800) | ($3,265,850) | | Adjusted EBITDA | ($76,850) | ($3,421,661) | | Adjusted EBITDA as a % of Revenue | (1.0)% | (49.2)% | Liquidity and Capital Resources - The company had cash and cash equivalents of $50.6 million as of March 31, 2025, an increase of $6.0 million from December 31, 2024172 Cash Flow Summary | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash from Operating activities | $2,008,132 | ($3,341,872) | | Net cash from Investing activities | $4,715,817 | $4,971,123 | | Net cash used for Financing activities | ($618,804) | ($37,233) | - The company's balance sheet includes $52.2 million in cash and short-term investments with no outstanding debt175 - A Strategic and Capital Allocation Committee has been established by the Board to review business strategies and formulate a plan to achieve sustainable profitability178 Item 3. Quantitative and Qualitative Disclosures About Market Risk This section is not applicable to the company as a smaller reporting entity - Not applicable to smaller reporting companies182 Item 4. Controls and Procedures Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that as of March 31, 2025, the company's disclosure controls and procedures were effective185 - There were no changes in internal control over financial reporting during the fiscal quarter ended March 31, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting189 PART II. OTHER INFORMATION Item 1. Legal Proceedings As of May 13, 2025, the company is not involved in any legal proceedings or claims with a material adverse effect - As of May 13, 2025, the company is not party to any legal proceedings or claims that it believes would have a material adverse effect192 Item 1A. Risk Factors No material changes to risk factors have occurred since the Annual Report on Form 10-K for fiscal year 2024 - There have been no material changes to the risk factors described in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024193 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds This section is not applicable - Not applicable194 Item 3. Defaults Upon Senior Securities This section is not applicable - Not applicable195 Item 4. Mine Safety Disclosures This section is not applicable - Not applicable196 Item 5. Other Information This section is not applicable - Not applicable197 Item 6. Exhibits This section lists all exhibits filed with the quarterly report, including corporate governance documents and required Sarbanes-Oxley Act certifications - Lists corporate governance documents such as Articles of Incorporation and Bylaws199 - Includes the Rights Agreement dated May 28, 2024199 - Contains required CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002199