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IZEA(IZEA) - 2024 Q3 - Quarterly Results
IZEAIZEA(IZEA)2024-11-14 21:15

Revenue Performance - Total revenue for Q3 2024 increased by 12% to 8.8million,comparedto8.8 million, compared to 7.9 million in Q3 2023[2] - Managed Services bookings rose by 11% to 7.9million,whileManagedServicesrevenueincreasedby107.9 million, while Managed Services revenue increased by 10% to 8.6 million[2] - Revenue from SaaS Services surged by 260% to 205,870comparedtoQ32023[5]−TotalrevenueforthethreemonthsendedSeptember30,2024,was205,870 compared to Q3 2023[5] - Total revenue for the three months ended September 30, 2024, was 8,831,794, representing a 12% increase from 7,894,901inthesameperiodof2023[18]−ManagedServicesrevenueforthethreemonthsendedSeptember30,2024,was7,894,901 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 7,837,725intheprioryear[20]−SaaSServicesrevenueforthethreemonthsendedSeptember30,2024,was7,837,725 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 57,176inthesameperiodof2023[20]FinancialLosses−NetlossforQ32024was57,176 in the same period of 2023[20] Financial Losses - Net loss for Q3 2024 was 8.8 million, or (0.52)pershare,comparedtoanetlossof(0.52) per share, compared to a net loss of 2.0 million, or (0.13)pershareinQ32023[8]−AdjustedEBITDAforthequarterwasalossof(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 1.5millionintheprioryear[9]−ThenetlossforthethreemonthsendedSeptember30,2024,was1.5 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 1,982,938inthesameperiodof2023[19]−TheninemonthsendedSeptember30,2024,showedanetlossof1,982,938 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 5,822,703inthesameperiodof2023[22]CostsandExpenses−Totalcostsandexpensesincreasedby735,822,703 in the same period of 2023[22] Costs and Expenses - Total costs and expenses increased by 73% to 18.2 million, including a 4.0millionnon−cashchargeforgoodwillimpairment[2]−TotalcostsandexpensesforthethreemonthsendedSeptember30,2024,were4.0 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 10,536,041inthesameperiodof2023[18]−Theimpairmentofgoodwillandintangibleassetsamountedto10,536,041 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,upfrom1,579,236, up from 239,353 in 2023[22] - Depreciation and amortization expenses for the three months ended September 30, 2024, were 239,849,comparedto239,849, compared to 117,544 in 2023[22] - Interest expense for the three months ended September 30, 2024, was 1,654,consistentwiththesameamountin2023[22]AssetsandEquity−Cash,cashequivalents,andinvestmentstotaled1,654, 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 68,135,888asofSeptember30,2024,from68,135,888 as of September 30, 2024, from 79,425,466 as of December 31, 2023[17] - Total stockholders' equity decreased to 53,288,890asofSeptember30,2024,from53,288,890 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),anincreasefrom(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 10.0millionofitsstock[10]ShareholderInformation−TheweightedaveragecommonsharesoutstandingforthethreemonthsendedSeptember30,2024,were16,956,497,comparedto15,463,334inthesameperiodof2023[18]−BasicanddilutedlosspercommonshareforthethreemonthsendedSeptember30,2024,was10.0 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]