IZEA(IZEA)2023-11-14 23:53Financial Data and Key Metrics - Total revenue for Q3 2023 was 1.5 million, compared to negative 2 million, or 0.9 million, or 7.1 million, a 14.1% decline from the prior year quarter [7] - SaaS service revenues for Q3 2023 were 6.9 million in Q3 2023, a 3.9% decline from the prior year quarter [11] - Managed Services backlog as of September 30, 2023, was 12 million [12] - The delivery time between bookings and revenues improved to 7.5 months from approximately nine months in Q2 2023 [11] Market Data and Key Metrics - The company has expanded its sales footprint, establishing a presence in Korea and building upon market entries into China and the UK [37] - The company is observing a growing trend in M&A activity within the industry sector [38] Company Strategy and Industry Competition - The company is focusing on customer diversification to avoid overreliance on any single customer or sector [42] - The company is pursuing both organic growth and strategic acquisitions to enhance product offerings and enter new markets [40] - The company has introduced IZEA Flex, a next-generation lower-cost enterprise influencer software platform, to replace IZEAx [34] Management Commentary on Operating Environment and Future Outlook - The company expects to see gross margins increase over the coming quarters [30] - The company is confident that proactive measures will offset the current revenue shortfall and propel accelerated bookings growth in 2024 [35] - The company is committed to maintaining a strong balance sheet and structuring accretive M&A transactions [39] Other Important Information - The company has 62.7 million in cash and investments as of September 30, 2023 [23] - The company has no debt on its balance sheet [23] - The company has appointed a new Head of Growth and a dedicated M&A team member [37] Q&A Session Summary Question: Can you elaborate on the new opportunity pipeline and how it translates into bookings? - The new opportunity pipeline represents active proposals with associated dollars, which should theoretically translate into bookings [46][47] - The past two months were records for the gross amount of the pipeline, but it takes time to determine the close rate [48] Question: What is the percentage of bookings that get done in the quarter now that the unnamed big customer is out of the picture? - The time for a booking to turn into revenue is about 7.5 months [50] Question: Has the company brought on a business development person focused solely on M&A? - Yes, the company has a team member now solely focused on M&A activity [51]