[October 10, 2017] |
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IZEA Reports Q3 Bookings of $7.9 Million
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.
This press release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20171010005421/en/
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 mprovement 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/.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171010005421/en/
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