IZEA Reports Q3 Bookings of $7.9 Million
October 10 2017 - 8:01AM
Business Wire
All-Time Record Managed Services Bookings, Up
12% Year Over Year
IZEA, Inc. (NASDAQ: IZEA), operator of IZEAx, the premier online
marketplace connecting brands and publishers with influential
content creators, reported all-time record managed services
bookings of $6.7 million for the third quarter of 2017, up 12% from
$6.0 million in the same year-ago quarter. Total bookings for the
quarter were $7.9 million, up 2% from $7.7 million in the same
year-ago quarter.
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IZEA reports all-time record managed
services bookings of $6.7 million for the third quarter of 2017, up
12% from $6.0 million in the same year-ago quarter. (Photo:
Business Wire)
Managed Services bookings represent sales of custom content and
influencer marketing to brands and agencies. It is the primary
focus of the company and contributed over 95% of the company’s
gross profit margin during the first three quarters of 2017.
“We continue to see growth and strength in our high margin
managed services offering, and that momentum is positively
impacting our overall financial profile,” said Ted Murphy, IZEA’s
Chairman and CEO. “Not only did our team deliver record managed
services bookings, but we have made significant progress on our
path to profitable growth through financial discipline and focus
throughout the organization. We expect to report record revenue and
a meaningful improvement in EBITDA of over 50% compared to the
prior year quarter.”
Workflow bookings from lower margin legacy publishers was $1.1
million, down 27% from $1.6 million in the same year-ago quarter.
The decline is in line with previously provided guidance and is
expected to continue to decline as the company focuses on higher
margin opportunities with brands and agencies.
Bookings is a measure of gross sales orders minus any
cancellations or refunds in a given period. Management uses
bookings as a leading indicator of future revenue recognition as
revenue is typically recognized within 90-120 days of booking.
However, larger contracts, such as some of those booked in Q3, may
be recognized over twelve months from the original booking
date.
Average annualized Q3 bookings per salesperson reached an
all-time record of $806,000, up 38% from $584,000 in the same
year-ago quarter. “The IZEA sales organization is benefitting from
our investments in marketing automation and ongoing performance
optimization,” continued Murphy. “As a result, we are delivering
more sales with fewer sales people, and providing a better overall
experience for our customers.”
The company reiterates its 2017 revenue guidance of $29-$30
million. Guidance on gross margins is being increased by 200 basis
points, with an expected range of 49-50% for the year. This
increase is a result of improving product mix and increased margins
on custom content development for brands.
IZEA has not completed preparation of its financial statements
for the third quarter of 2017. The preliminary, unaudited results
presented in this news release for the quarter ended September 30,
2017 are based on current expectations. Actual results may
differ.
The company plans to provide full financial results for the
third quarter on November 7, 2017.
About IZEA
IZEA operates IZEAx, the premier online marketplace that
connects marketers with influential content creators. IZEA creators
range from leading social media influencers to accredited
journalists. Creators are compensated for producing and
distributing unique content on behalf of marketers including long
form text, videos, photos and status updates. Marketers receive
influential consumer content and engaging, shareable stories that
drive awareness. For more information about IZEA, visit
https://izea.com.
Important Cautions Regarding Forward-Looking
Statement
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934.
These forward-looking statements are based largely on IZEA's
current expectations and are subject to a number of risks and
uncertainties, certain of which are beyond IZEA's control.
Operating results for the quarter are not necessarily indicative of
results that may be expected for the entire fiscal year. Actual
results could differ materially from these forward-looking
statements as a result of, among other factors, competitive
conditions in the content and social sponsorship segments in which
IZEA operates, customer order cancellations, failure to popularize
one or more of the marketplace platforms of IZEA, inability to
obtain additional capital on a timely basis, and changing economic
conditions that are less favorable than expected. In light of these
risks and uncertainties, there can be no assurance that the
forward-looking information contained in this press release will in
fact occur. IZEA undertakes no obligation to publicly update any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future developments or otherwise. Please read the full statement
and disclosures here:
https://izea.com/investors/safe-harbor-statement/.
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version on businesswire.com: http://www.businesswire.com/news/home/20171010005421/en/
IZEA, Inc.Justin Braun, 407-215-6218Manager, Corporate
Communicationsjustin.braun@izea.com
IZEA Worldwide (NASDAQ:IZEA)
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