IZEA(US:IZEA)2020-03-30 23:27Financial Data and Key Metrics Changes - For Q4 2019, total revenues were $5.8 million, with $5 million from managed services and $800,000 from SaaS offerings, reflecting a 2% increase in managed service revenue but a $600,000 decline in SaaS revenue compared to Q4 2018 [11][12] - Gross billings decreased to $7.8 million in Q4 2019, a 30% decline from $11.1 million in Q4 2018, primarily due to lower marketplace spend and customer churn [12] - The net loss for Q4 2019 was $2.3 million or $0.07 per share, compared to a net loss of $693,000 or $0.06 per share for Q4 2018 [15] - Full year 2019 revenues were $18.9 million, down 6% from $20.1 million in 2018, with gross billings at $29 million, down 3% from $30 million in 2018 [16][18] Business Line Data and Key Metrics Changes - Managed services revenue decreased by 12% year-over-year, while SaaS gross billings increased by $1.1 million, accounting for 47% of total billings in 2019 compared to 41% in 2018 [16][17] - The cost of revenues for 2019 was approximately $8.5 million, consistent with prior year levels at 45% of revenues [18] Market Data and Key Metrics Changes - The total fees under contract for IZEAx in 2020 were already 40% greater than all fees collected in 2018, indicating strong customer transition from TapInfluence [24] - Monthly recurring revenue (MRR) for IZEAx hit an all-time high in March 2020, with new IZEAx Unity customers up 85% from Q4 2019 [24] Company Strategy and Development Direction - The company is focusing on integrating TapInfluence and enhancing its IZEAx and BrandGraph platforms, with a cautious optimism for 2020 despite COVID-19 challenges [22][23] - Cost control measures are being implemented, including a hiring freeze and reductions in contractor and vendor expenses, to optimize operations during the pandemic [31][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of COVID-19 on bookings and revenue recognition, but expressed long-term optimism for the business and industry [36][37] - The company is assessing the landscape post-COVID-19 and has taken proactive measures to protect its workforce and maintain operations [28][29] Other Important Information - The company had cash on hand of nearly $5.9 million as of December 31, 2019, with an available line of credit of $5 million [19] - Management is exploring eligibility for government-provided small business disruption loans under the CARES Act to strengthen cash position [35] Q&A Session Summary Question: Customer count and contract sizes for IZEAx - Management did not disclose exact customer counts or pricing but noted an all-time record customer count and an 85% increase in new IZEAx Unity Suite customers from Q4 [44] Question: Changes in marketplace spend - There has been an increase in customers opting for product-only activations, impacting overall marketplace spend and revenue recognition [45] Question: Clarification on G&A expenses - A $418,000 impairment charge was noted due to the transition of the Tap platform to IZEAx, with expectations for G&A expenses to return to normal as costs are optimized [46][51] Question: Sales personnel expenses - The increase in sales and marketing expenses was attributed to both personnel costs and additional marketing spend [52]