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IZEA(IZEA) - 2024 Q3 - Earnings Call Transcript
IZEAIZEA(IZEA)2024-11-17 06:16
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Financial Data and Key Metrics - Total revenue for Q3 2024 was 8.8million,a128.8 million, a 12% increase compared to the prior year quarter Excluding revenue from a nonrecurring customer, revenue grew 27% year-over-year [7] - Managed Services revenue was 8.6 million, up 10% from Q3 2023 Excluding the nonrecurring customer, Managed Services revenue increased by 1.7millionor251.7 million or 25% [10] - SaaS Services revenue totaled 206,000, up significantly from 57,000intheprioryearquarter[11]−NetlossforQ32024was57,000 in the prior year quarter [11] - Net loss for Q3 2024 was 8.8 million or negative 0.52pershare,comparedtoanetlossof0.52 per share, compared to a net loss of 2 million or negative 0.13pershareinQ32023[14]−AdjustedEBITDAwasnegative0.13 per share in Q3 2023 [14] - Adjusted EBITDA was negative 2.8 million, compared to negative 1.5millionintheprioryearquarter[14]−Cashandinvestmentstotaled1.5 million in the prior year quarter [14] - Cash and investments totaled 54.4 million as of September 30, 2024, a decrease of 2.1millionduringthequarter[15]BusinessLinePerformance−ManagedServicesdemandgrew112.1 million during the quarter [15] Business Line Performance - Managed Services demand grew 11% to 7.9 million in Q3 2024, slightly lower than the first half of 2024 due to timing and reduced marketing budgets in emerging markets [8] - Managed Services backlog totaled 14.6milliononSeptember30,2024,adecreaseof14.6 million on September 30, 2024, a decrease of 1 million from Q2 2024 but an increase of 3.4millionyear−to−date[9]−SaaSServicesrevenuegrowthwasdrivenbyactiveuseofIZEA′sAItoolsbycustomers[11]MarketandOperationalHighlights−ThecompanywonnewbusinessfrommajorclientsincludingNestle,Danone,Coursera,andNHTSA[25]−IZEAlaunchedIZZY,anAIassistantformarketers,leveragingitsrichdatasettoenhancecreatorcampaigndecisions[26]−Thecompanyreceivedmultipleawardsforitswork,includingtheGlobalInfluencerMarketingAwardsandrecognitionasaGreatPlacetoWork[26]StrategicDirectionandIndustryCompetition−Thecompanyisfocusedonsimplifying,fortifying,andfocusingitsgo−to−marketmodeltodrivetop−linegrowthandachieveprofitability[27]−Resourcesarebeingshiftedfrommerelygrowingbusinesssegmentstothosewithprofitablegrowthpotential[27]−The2025businessplanprocessisunderway,withmorestrategicdirectiontobesharedatthenextinvestormeeting[28]ManagementCommentaryonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutthecompany′sfuture,citingastrongtalentbase,extensiveclientlist,androbusttechproductinnovationpipeline[23]−Thecompanyismakingprogressinitstransformationalchanges,withtheBoardandmanagementconfidentindeliveringvaluetostakeholders[28]OtherImportantInformation−Thecompanyincurreda3.4 million year-to-date [9] - SaaS Services revenue growth was driven by active use of IZEA's AI tools by customers [11] Market and Operational Highlights - The company won new business from major clients including Nestle, Danone, Coursera, and NHTSA [25] - IZEA launched IZZY, an AI assistant for marketers, leveraging its rich data set to enhance creator campaign decisions [26] - The company received multiple awards for its work, including the Global Influencer Marketing Awards and recognition as a Great Place to Work [26] Strategic Direction and Industry Competition - The company is focused on simplifying, fortifying, and focusing its go-to-market model to drive top-line growth and achieve profitability [27] - Resources are being shifted from merely growing business segments to those with profitable growth potential [27] - The 2025 business plan process is underway, with more strategic direction to be shared at the next investor meeting [28] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the company's future, citing a strong talent base, extensive client list, and robust tech product innovation pipeline [23] - The company is making progress in its transformational changes, with the Board and management confident in delivering value to stakeholders [28] Other Important Information - The company incurred a 4 million noncash charge due to goodwill impairment related to the 2019 acquisition of Tapinfluence [13] - IZEA adopted a Safe Harbor 10b5-1 plan to purchase shares, acquiring 51,503 shares at an average price of 2.74foratotalinvestmentof2.74 for a total investment of 142,273 [16] - The company has no debt and is in a solid position to execute on organic growth and acquisition opportunities [17] Q&A Session Summary - No questions were asked during the Q&A session [30][33]