IZEA(US:IZEA)2021-03-31 02:00Financial Data and Key Metrics Changes - For Q4 2020, total revenue was $6.4 million, a 10% increase from $5.9 million in Q4 2019, with $5.9 million from Managed Services and $537,000 from SaaS offerings [6] - Managed Service revenue increased by 17% to $842,000 compared to Q4 2019, while SaaS Services revenue declined by $274,000 [6][8] - Gross billings rose to $8 million in Q4 2020 from $7.8 million in Q4 2019, a 2% increase [8] - Net loss improved to $1 million or $0.02 per share in Q4 2020 from a net loss of $2.3 million or $0.07 per share in Q4 2019 [11] - Adjusted EBITDA improved by $825,000 or 64% to negative $467,000 in Q4 2020 compared to negative $1.3 million in Q4 2019 [12] Business Line Data and Key Metrics Changes - Managed Services bookings increased approximately 48% in Q4 2020 compared to Q4 2019, leading to a revenue increase of $2.3 million or nearly 67% compared to Q3 2020 [7] - SaaS Services revenue saw a decline due to customer churn and changed spending habits, resulting in a total of $537,000 in Q4 2020 [6][8] Market Data and Key Metrics Changes - The company reported a revenue backlog of approximately $10.6 million entering 2021, indicating expected revenue growth [13] - As of December 31, 2020, the company had cash on hand of $33 million and raised an additional $34.3 million in early 2021 [14] Company Strategy and Development Direction - The company aims to transition to aggressive growth mode, focusing on expanding its customer base and increasing the inventory of creators available on its platform [41] - Investments in engineering and product teams are being made to enhance existing platforms and develop new software products [39][38] - The introduction of new products like BrandGraph and Shake is part of the strategy to connect buyers and sellers in the Creator Economy [30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty surrounding the COVID-19 pandemic but expressed confidence in the company's ability to adapt and thrive [20][42] - The company plans to triple its marketing investment in 2021 to increase brand awareness and significantly grow revenue [40] Other Important Information - The company has formed partnerships to enhance its service offerings and streamline investments for global brands [24][25] - A new version of the IZEAx platform is expected to launch, integrating features from Shake and BrandGraph [56] Q&A Session Summary Question: Clarification on bookings in Q4 - Bookings in Q4 were $8.3 million, with Managed Services accounting for $6.6 million [48][49] Question: Share count after recent capital raise - The current share count is 59 million shares outstanding [50] Question: Marketing spend increase - The company plans to spend three times more on marketing compared to last year, focusing on various platforms [51][64] Question: Revenue expectations for 2021 - While not providing specific guidance, management noted a strong Q1 pipeline and over 100% growth in Managed Services bookings [58] Question: Competition with Fiverr - The company differentiates itself by offering higher quality inventory and pricing compared to Fiverr [70] Question: Future of NFTs in relation to Shake - Management sees potential for digital assets and collectibles within Shake, but acknowledges current inefficiencies in the NFT space [76]