Core Insights - IZEA Worldwide, Inc. reported a significant increase in total revenue for Q4 2024, rising 23.7% to $11.0 million compared to $8.9 million in Q4 2023, driven primarily by Managed Services revenue growth [5][9] - The company is undergoing a transformational change, focusing on operational efficiency and cost structure to accelerate profitability [4][10] - Despite revenue growth, the company reported a net loss of $4.6 million in Q4 2024, which included $2.7 million in one-time charges, compared to a net loss of $1.5 million in the same quarter of the previous year [7][9] Q4 2024 Financial Summary Compared to Q4 2023 - Total revenue increased by 23.7% to $11.0 million from $8.9 million [5] - Managed Services revenue rose by 24.0% to $10.9 million from $8.8 million [5] - SaaS Services revenue increased by 5.7% to $117,423 from the previous year [5] - Total costs and expenses grew by 28.0% to $14.2 million from $11.1 million [7] - Adjusted EBITDA for the quarter was $(1.5) million, compared to $(1.1) million in Q4 2023 [10] FY 2024 Financial Summary Compared to FY 2023 - Total revenue for FY 2024 was $35.9 million, a slight decrease from $36.2 million in FY 2023 [7] - Managed Services revenue for FY 2024 was $35.1 million, down 2% from $35.7 million in FY 2023 [28] - SaaS Services revenue increased by 74% to $823,000 from $474,000 in the previous year [28] - The net loss for FY 2024 was $18.9 million, including $8 million in one-time charges, compared to a net loss of $7.4 million in FY 2023 [7][9] Operational Highlights - Managed Services bookings increased by 52.8% to $11.7 million in Q4 2024 compared to $7.6 million in Q4 2023 [7] - The company implemented targeted workforce reductions, expected to save $5.1 million annually [8] - New business was secured from notable clients including Academy Sports, NHTSA, and Navy Federal Credit Union [7] - The company divested its investment in Hoozu, which generated $3.4 million in revenue for 2024 but incurred a $0.7 million annual net loss [7] Cash Position - As of December 31, 2024, the company had cash, cash equivalents, and investments totaling $51.1 million [10] - The company has no outstanding long-term debt [10]

Company Overview - IZEA Worldwide, Inc. is a creator economy solutions company that facilitates collaboration and transactions between brands and social influencers [3] - The company has launched the first influencer marketing platform in 2006 and has facilitated nearly 4 million transactions [3] - IZEA aims to help brands increase digital engagement, diversify brand voice, scale content production, and achieve measurable ROI [3] Upcoming Conference Call - IZEA will hold a conference call to discuss its fourth quarter 2024 and full-year financial results on March 27, 2025, at 5:00 p.m. EDT [1] - The call will be hosted by CEO Patrick Venetucci and CFO Peter Biere, followed by a Q&A session [1] - Participants are encouraged to call in five minutes before the start time, with a replay available for a limited period after the call [2]

Company Overview - IZEA Worldwide, Inc. is a leading provider of influencer marketing solutions within the Creator Economy, enabling brands to collaborate with top social influencers and content creators [4] - The company launched the first influencer marketing platform in 2006 and has facilitated nearly 4 million transactions between online buyers and sellers [4] - IZEA has partnered with leading brands and agencies, including half of the Fortune 50, to enhance digital engagement and drive measurable ROI [4] Leadership Appointment - Frank Carvalho has been appointed as Executive Vice President of Sales and Marketing, bringing over 30 years of global marketing experience [1][2] - Carvalho previously served as Chief Marketing Officer at Foap, where he expanded the company's global presence and strengthened partnerships with major social platforms [1] - His background includes leadership roles at agencies like Leo Burnett and Publicis Groupe, and with brands such as Coca-Cola, Merck, and Vodafone [2] Strategic Goals - Carvalho's expertise in marketing and understanding of the Creator Economy is expected to drive growth and innovation at IZEA [3] - The company aims to deepen partnerships and enhance its market position to empower creators, platforms, and brands globally [3] - CEO Patrick Venetucci emphasized that Carvalho's leadership will accelerate momentum and strengthen client partnerships [3]

Financial Data and Key Metrics - Total revenue for Q3 2024 was $8.8 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 $1.7 million or 25% [10] - SaaS Services revenue totaled $206,000, up significantly from $57,000 in the prior year quarter [11] - Net loss for Q3 2024 was $8.8 million or negative $0.52 per share, compared to a net loss of $2 million or negative $0.13 per share in Q3 2023 [14] - Adjusted EBITDA was negative $2.8 million, compared to negative $1.5 million in the prior year quarter [14] - Cash and investments totaled $54.4 million as of September 30, 2024, a decrease of $2.1 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 $14.6 million on September 30, 2024, a decrease of $1 million from Q2 2024 but an increase of $3.4 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 $2.74 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]

Financial Performance - Total revenue for the three months ended September 30, 2024, was $8,831,794, representing a 12% increase from $7,894,901 in the same period of 2023[134] - Total revenue for the nine months ended September 30, 2024 was $24,878,493, a decrease of $2,443,189 or 9% compared to the same period in 2023[144] - Managed Services revenue increased by $788,199, or 10%, from $7,837,725 in 2023 to $8,625,924 in 2024, with recurring customer revenue rising by $1.7 million, or 25%[135] - Managed Services revenue decreased by $2.8 million, or 10%, during the nine months ended September 30, 2024, while SaaS Services revenue increased by $342,742, or 94%[146] - SaaS Services revenue surged to $205,870 in Q3 2024, a 260% increase from $57,176 in Q3 2023, driven by a higher number of licensees[135] - Managed Services Bookings for the three months ended September 30, 2024 was $7.9 million, compared to $7.1 million for the same period in 2023[155] - Total gross billings for the three months ended September 30, 2024, reached $9,276,178, representing a 14% increase from $8,110,050 in the prior year[157] - SaaS Services gross billings for the three months ended September 30, 2024, were $650,254, a significant 139% increase from $272,325 in the same period of 2023[157] Expenses and Losses - Cost of revenue for Q3 2024 was $5,210,104, an 11% increase from $4,685,437 in Q3 2023[134] - General and administrative expenses rose significantly by 93% to $5,840,027 in Q3 2024, compared to $3,032,759 in Q3 2023[134] - The impairment of goodwill was recorded at $4,016,722 in Q3 2024, marking a 100% increase from zero in Q3 2023[134] - Total costs and expenses for Q3 2024 amounted to $18,186,022, a 73% increase from $10,536,041 in Q3 2023[134] - Net loss for Q3 2024 was $8,768,319, a 342% increase from $1,982,938 in Q3 2023[134] - General and administrative expense for the three months ended September 30, 2024 increased by $2.8 million, or approximately 93%, primarily due to higher human capital costs related to executive departures[138] - Net loss from operations for the nine months ended September 30, 2024 was $14.2 million, an increase of $8.4 million from the net loss of $5.8 million for the same period in 2023[153] - The company reported a net loss of $8,768,319 for the three months ended September 30, 2024, compared to a net loss of $1,982,938 in the same period of 2023[161] - Adjusted EBITDA for the three months ended September 30, 2024, was $(2,833,720), which is a decline from $(1,549,080) in the same period of 2023[161] Cash and Financial Position - Cash and cash equivalents increased to $46.0 million as of September 30, 2024, up from $37.4 million as of December 31, 2023[162] - The company incurred net cash used for operating activities of $(8,657,588) during the nine months ended September 30, 2024, compared to $(5,679,905) in the same period of 2023[163] - The company has a total accumulated deficit of $99.7 million as of September 30, 2024[162] Corporate Developments - The company acquired 26 Talent, an Australian talent management agency, on July 1, 2024, enhancing its capabilities in the Asia-Pacific region[127] - The company appointed Patrick J. Venetucci as the new CEO on September 6, 2024, following the resignation of Ted Murphy and Ryan Schram[127] - The Board of Directors has established a Strategic and Capital Allocation Committee to review business strategies and formulate a plan for sustainable profitability[165] Accounting and Reporting - No material changes to critical accounting policies were reported in the Annual Report for the year ended December 31, 2023[167] - For a summary of significant accounting policies, refer to "Note 1 Company and Summary of Significant Accounting Policies" in the Quarterly Report[167] - Recent accounting pronouncements are detailed in "Note 1. Company and Summary of Significant Accounting Policies" in the Quarterly Report[168] - Market risk disclosures are not applicable to smaller reporting companies[169]

Revenue Performance - Total revenue for Q3 2024 increased by 12% to $8.8 million, compared to $7.9 million in Q3 2023[2] - Managed Services bookings rose by 11% to $7.9 million, while Managed Services revenue increased by 10% to $8.6 million[2] - Revenue from SaaS Services surged by 260% to $205,870 compared to Q3 2023[5] - Total revenue for the three months ended September 30, 2024, was $8,831,794, representing a 12% increase from $7,894,901 in the same period of 2023[18] - Managed Services revenue for the three months ended September 30, 2024, was $8,625,924, a 10% increase from $7,837,725 in the prior year[20] - SaaS Services revenue for the three months ended September 30, 2024, was $205,870, a significant increase of 260% from $57,176 in the same period of 2023[20] Financial Losses - Net loss for Q3 2024 was $8.8 million, or $(0.52) per share, compared to a net loss of $2.0 million, or $(0.13) per share in Q3 2023[8] - Adjusted EBITDA for the quarter was a loss of $2.8 million, compared to a loss of $1.5 million in the prior year[9] - The net loss for the three months ended September 30, 2024, was $8,768,319, compared to a net loss of $1,982,938 in the same period of 2023[19] - The nine months ended September 30, 2024, showed a net loss of $14,228,997 compared to a net loss of $5,822,703 in the same period of 2023[22] Costs and Expenses - Total costs and expenses increased by 73% to $18.2 million, including a $4.0 million non-cash charge for goodwill impairment[2] - Total costs and expenses for the three months ended September 30, 2024, were $18,186,022, compared to $10,536,041 in the same period of 2023[18] - The impairment of goodwill and intangible assets amounted to $4,016,722 for the three months ended September 30, 2024, with no impairment recorded in 2023[22] - Non-cash stock-based compensation for the three months ended September 30, 2024, was $1,579,236, up from $239,353 in 2023[22] - Depreciation and amortization expenses for the three months ended September 30, 2024, were $239,849, compared to $117,544 in 2023[22] - Interest expense for the three months ended September 30, 2024, was $1,654, consistent with the same amount in 2023[22] Assets and Equity - Cash, cash equivalents, and investments totaled $54.4 million as of September 30, 2024, with no outstanding long-term debt[11] - Total assets decreased to $68,135,888 as of September 30, 2024, from $79,425,466 as of December 31, 2023[17] - Total stockholders' equity decreased to $53,288,890 as of September 30, 2024, from $65,313,388 as of December 31, 2023[17] - The accumulated deficit as of September 30, 2024, was $(99,673,791), an increase from $(85,444,794) as of December 31, 2023[17] Business Developments - The company launched IZZY, an AI assistant for marketers, enhancing its technology offerings[3] - New business was secured from major clients including Nestlé, Danone, and Coursera, indicating market expansion[4] - The company has initiated a stock repurchase program with a commitment to buy $10.0 million of its stock[10] Shareholder Information - The weighted average common shares outstanding for the three months ended September 30, 2024, were 16,956,497, compared to 15,463,334 in the same period of 2023[18] - Basic and diluted loss per common share for the three months ended September 30, 2024, was $(0.52), compared to $(0.13) in the same period of 2023[18] - Adjusted EBITDA as a percentage of revenue for the three months ended September 30, 2024, was (32)%, compared to (20)% in the same period of 2023[22]

Core Insights - IZEA Worldwide, Inc. reported a total revenue increase of 12% to $8.8 million for Q3 2024 compared to $7.9 million in Q3 2023, driven by growth in Managed Services and SaaS Services [2][5][25] - The company experienced a significant net loss of $8.8 million in Q3 2024, compared to a net loss of $2.0 million in the same quarter of the previous year [8][9] - Adjusted EBITDA for the quarter was a loss of $2.8 million, worsening from a loss of $1.5 million year-over-year, indicating challenges in operational efficiency [9][27] Financial Performance - Total revenue for Q3 2024 was $8.8 million, up from $7.9 million in Q3 2023, with Managed Services revenue increasing by 10% to $8.6 million [2][5] - Managed Services bookings rose by 11% to $7.9 million, while revenue from SaaS Services surged by 260% to $205,870 [2][5][6] - Total costs and expenses increased by 73% to $18.2 million, largely due to a $4.0 million non-cash charge for goodwill impairment [2][7] Operational Highlights - IZEA's work for the Barbie movie received multiple awards, including the 2024 Global Influencer Marketing Awards [3] - The company launched IZZY, an AI assistant for marketers, enhancing its technology offerings [3][4] - IZEA Flex was recognized as the Best Influencer Marketing Platform in the 2024 MarTech Breakthrough Awards [3] Management Commentary - CEO Patrick Venetucci noted a healthy increase in managed services bookings and revenue, with expectations for year-over-year growth in the last quarter of 2024 [4] - The company secured new business from major clients such as Nestlé, Danone, and Coursera, indicating a strong market position [4] Cash Position - As of September 30, 2024, the company had cash, cash equivalents, and investments totaling $54.4 million, with no outstanding long-term debt [11]

Core Insights - The "Trust in Influencer Marketing" report indicates a significant preference for influencer-generated content over traditional advertising, with 77% of respondents favoring influencer content and 85% trusting influencers more than celebrities [2][3] - Social media platforms, particularly TikTok and Instagram, have become primary sources for product research, with their usage for this purpose more than doubling since 2022 [2][3] - A notable 86% of respondents search for product information on social media, and 77% have made purchases directly through these platforms, highlighting the importance of social shopping [3] - Engagement patterns are shifting, with Facebook and YouTube maintaining strong overall usage, while TikTok has seen significant growth among the 45-60 age demographic [3] About the Study - The 2025 report is based on responses from 1,114 U.S. social media users aged 18 and over, capturing data from the past four years to document the evolving role of influencer marketing in consumer behavior [4] About IZEA Worldwide, Inc. - IZEA Worldwide, Inc. is a leader in influencer marketing, providing services and software that enable brands to collaborate with social influencers and content creators, having facilitated nearly 4 million transactions since its inception [5]

Company Overview - IZEA Worldwide, Inc. is a marketing technology company that provides software and professional services for brands to collaborate with social influencers and content creators [3] - The company has facilitated nearly 4 million transactions between online buyers and sellers since launching the first influencer marketing platform in 2006 [3] - IZEA aims to support the Creator Economy by enabling individuals to monetize their content and influence [3] Upcoming Financial Results - IZEA will hold a conference call to discuss its third quarter 2024 financial results on November 14, 2024, at 5:00 p.m. Eastern Standard Time [1] - The call will feature insights from CEO Patrick Venetucci and CFO Peter Biere regarding the company's earnings for the third quarter [1] Conference Call Details - Participants can join the call using the toll-free number 1-877-407-4018 or the international number 1-201-689-8471 [2] - A replay of the call will be available approximately three hours after the conference ends until November 21, 2024 [2]

ORLANDO, Fla., Sept. 10, 2024 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (Nasdaq: IZEA), a leading provider of technology, data, and services for the Creator Economy, today announced a partnership with GP Investments, Ltd. and a series of value creation actions. Antonio Bonchristiano and Rodrigo Boscolo of GP Investments, a global investment firm with flexible, longterm capital, are joining IZEA's Board of Directors. These appointments reflect GP's substantial IZEA shareholding and its track record in creatin ...