IZEA Reports Q2 2021 Financial Results

ORLANDO, Fla., Aug. 12, 2021 (GLOBE NEWSWIRE) — IZEA Worldwide, Inc. (NASDAQ: IZEA), the premier supplier of influencer advertising and marketing expertise, information, and companies for the world’s main manufacturers, reported its monetary and operational outcomes for the second quarter ended June 30, 2021. Q2 2021 Financial Summary Compared to Q2 2020 Total income elevated 109% to $6.5 million, in comparison with $3.1 million.Managed Services unit income elevated 146% to $6.1 million, in comparison with $2.5 million.SaaS Services unit income decreased 34% to $425,000, in comparison with $645,000.Total prices and bills elevated 74% to $8.6 million, in comparison with $4.9 million.Net loss was $0.1 million, in comparison with a internet lack of $1.8 million.Adjusted EBITDA* decreased to $(1.4) million, in comparison with $(1.3) million. Q2 2021 Operational Highlights Managed Services bookings reached 187% yr over yr development in Q2 to hit an all-time report of $11.1 million.Hit all-time report depend of shoppers licensing IZEA SaaS merchandise.Company joined Russell Microcap® Index.Unveiled subsequent era of IZEAx® Unity Suite.Announced BrandGraph Compare, Themes, and TikTok Support.Added 4 companions to IZEA’s Talent Partner Program.Completed sale of $35 Million of frequent inventory by means of its ATM providing at a median of $4.98 per share. * Adjusted EBITDA is a non-GAAP monetary measure. Refer to the definition and reconciliation of this measure underneath “Use of Key Metrics and Non-GAAP Financial Measures”. Management Commentary “The second quarter was a continuation and acceleration of the sturdy gross sales momentum we first began to see on the finish of 2020,” mentioned Ted Murphy, IZEA’s Chairman and CEO. “The report $11.1 million in Managed Services bookings we noticed on this quarter could have a optimistic influence on income this yr and carry over into early 2022.” “On our first quarter investor name I shared that our purpose was to ship no less than 30% annual income development per yr for every of the following three years, or a 30% compound annual development fee,” continued Murphy. “That stays our long term purpose, however based mostly on present bookings and first half income numbers it’s clear that we are going to far exceed this purpose in 2021. As of July, Managed Services bookings for 2021 have already exceeded all that of 2020. We will doubtless exceed 30% yr over yr bookings development once more in Q3. Our pipeline stays very sturdy and we have now been constructing on the success and momentum with growth of key accounts in addition to new buyer acquisition.” “We noticed report buyer counts for software program licenses as soon as once more this quarter, pushed by will increase for Unity Suite, BrandGraph, and IZEAx Discovery. We are nonetheless within the midst of absorbing the pricing and general strategic change we made with Unity Suite final yr, however we did see 130% bookings development in mixed Unity Suite and BrandGraph licensing YoY, with practically two-thirds coming from new clients. We will proceed to see some lumpiness with licensing income till we get absolutely by means of the pricing transition however count on to see some normalization and income development that displays the regular climb in software program buyer counts on the opposite aspect of this yr.” Q2 2021 Financial Results Total income within the second quarter of 2021 elevated 109% to $6.5 million, in comparison with $3.1 million within the second quarter of 2020, with income from Managed Services growing by $3.6 million, or 146%, to $6.1 million within the second quarter of 2021 in comparison with the second quarter of 2020 and income from SaaS Services lowering by $220,000, or 34%, to $424,920 within the second quarter of 2021 in comparison with the second quarter of 2020. Revenue from managed companies improved on the energy of current prior quarter bookings development and a rise in accomplished campaigns in the course of the quarter; demand for managed companies continues to extend as many purchasers are shifting extra of their advertising and marketing spend to influencer advertising and marketing campaigns. Revenue from SaaS Services decreased primarily because of decrease license charges and decrease margins on self-service market spending. Licensee counts on all platforms are rising, nevertheless common license charges are decrease attributable to aggressive adjustments we carried out in the summertime of 2020 in response to COVID-related churn. We additionally lowered our pricing on chosen self-service choices in the course of the third quarter of 2020, which impacted our present quarter margins on market spending. Gross billings (a key metric, as additional outlined beneath) for SaaS Services decreased 42% to $1.2 million in Q2 2021, in comparison with $2.0 million in Q2 2020. Certain of our SaaS entrepreneurs decreased their spend ranges as they transitioned from the TapInfluence platform to IZEAx and curtailed spending all through 2020. Cost of income unique of amortization was $3.3 million in Q2 2021, or 50% of Revenue, in comparison with $1.4 million, or 45% within the prior yr quarter, increased primarily attributable to a heavier mixture of bigger offers that carry decrease general margins. Costs and bills aside from price of income totaled $5.3 million for the present quarter in comparison with $3.5 million for the prior yr quarter. Sales and advertising and marketing prices had been $2.3 million in the course of the quarter, $1.1 million or 87% above the comparative quarter attributable to gross sales compensation, which varies with increased bookings and advertising and marketing prices related to driving buyer development. General and administrative prices totaled $2.7 million in the course of the quarter, $739,086 or 38% above the prior yr quarter, due primarily to increased compensation and contractor prices to assist operations and IT investments. Net loss within the second quarter of 2021 was $0.1 million, or $0.00 per share, as in comparison with a internet lack of $1.8 million, or $(0.05) per share within the second quarter of 2020, based mostly on 61.4 million and 36.1 million common shares excellent, respectively. Adjusted EBITDA (a non-GAAP measure administration makes use of as a proxy for working money stream, as outlined beneath) declined 12%, or $154,072, to $(1.4) million within the second quarter of 2021 in comparison with $(1.3) million within the second quarter of 2020. Adjusted EBITDA as a proportion of income within the second quarter of 2021 was destructive (22)% in comparison with destructive (40)% within the second quarter of 2020. We raised $12.2 million from sale of securities by means of our at-the-market providing in Q2 2021 and our money stability as of June 30, 2021 was $75.0 million. From June 2020 to July 2021, we have now raised complete gross proceeds of $75.0 million by means of at-the-market choices. Conference Call IZEA will maintain a convention name to debate its second quarter 2021 outcomes on Thursday, August twelfth at 5:00 p.m. Eastern Daylight Time. IZEA’s Chairman and CEO Ted Murphy, CFO Peter Biere, and COO Ryan Schram will host the decision, adopted by a query and reply interval. Date: Thursday, August 12, 2021Time: 5:00 p.m. Eastern Daylight TimeToll-free dial-in quantity: 1-800-786-6705International dial-in quantity: 1-212-231-2931 The convention name will probably be webcast dwell and out there for replay through the traders part of our web site at https://izea.com/. Please name the convention phone quantity 5 minutes previous to the beginning time. An operator will register your title and group. A replay of the decision will probably be out there after 8:00 p.m. EDT on the identical day by means of August 19, 2021. Toll-free replay quantity: 1-844-512-2921International replay quantity: 1-412-317-6671Replay ID: 21996359 About IZEA Worldwide, Inc. IZEA Worldwide, Inc. (“IZEA”) is a advertising and marketing expertise firm offering software program {and professional} companies that allow manufacturers to collaborate and transact with the total spectrum of immediately’s prime social influencers and content material creators. The firm serves as a champion for the rising Creator Economy, enabling people to monetize their content material, creativity, and affect. IZEA launched the business’s first-ever influencer advertising and marketing platform in 2006 and has since facilitated practically 4 million transactions between on-line consumers and sellers. Leading manufacturers and businesses associate with IZEA to extend digital engagement, diversify model voice, scale content material manufacturing, and drive measurable return on funding. Use of Key Metrics and Non-GAAP Financial Measures We outline gross billings, a key metric, as the whole greenback worth of the quantities earned from our clients for the companies we carried out, or the quantities billed to our clients for his or her self-service buy of products and companies on our platforms. Gross billings for Marketplace Spend are the quantities of our reported income plus the price of funds we made to third-party creators offering the content material or sponsorship companies, that are netted in opposition to income for typically accepted accounting rules within the United States (“GAAP”) reporting functions. Gross billings for all different income varieties equals the income reported in our consolidated statements of operations. Managed Services Bookings is a measure of all gross sales orders acquired throughout a time interval much less any cancellations acquired, or refunds given throughout the identical time interval. Sales order contracts range in complexity with every buyer and vary from customized content material supply to built-in advertising and marketing companies; our contracts typically run from a number of months for smaller contracts as much as twelve months for bigger contracts. We acknowledge income from our Managed Services contracts based mostly on a proportion of completion foundation as we ship the content material or companies over time, which might range tremendously. Historically, bookings have transformed to revenues over a 6-month interval on common. However, since late 2020, we have now acquired more and more bigger and extra complicated gross sales orders which, in flip, has lengthened the typical income interval to roughly 9 months, with the biggest contracts taking longer to finish. For this cause, Managed Services Bookings, whereas an general indicator of the well being of our enterprise, might not be used to foretell quarterly revenues, and could possibly be topic to future adjustment. Managed Services Bookings is beneficial info because it displays the quantity of orders acquired in a single interval, despite the fact that income from these orders could also be mirrored over various quantities of time. Management makes use of the Managed Services Bookings metric to plan its working workers, to establish key buyer group traits to enlighten go-to-market actions, and to tell its product growth efforts. “Adjusted EBITDA” is a non-GAAP monetary measure underneath the principles of the Securities and Exchange Commission. EBITDA is usually outlined as “earnings earlier than curiosity, taxes, depreciation and amortization.” IZEA defines “Adjusted EBITDA” as earnings or loss earlier than curiosity, taxes, depreciation and amortization, non-cash stock-based compensation, achieve or loss on asset disposals or impairment, and sure different uncommon or non-cash revenue and expense gadgets similar to good points or losses on settlement of liabilities and exchanges, and adjustments within the truthful worth of derivatives, if relevant. We consider that Adjusted EBITDA gives helpful info to traders because it primarily excludes non-cash transactions, and it gives consistency to facilitate period-to-period comparisons. All corporations don’t calculate gross billings, bookings and Adjusted EBITDA in the identical method. These metrics as offered by IZEA might not be similar to these offered by different corporations. Moreover, these metrics have limitations as analytical instruments, and you shouldn’t contemplate them in isolation or as an alternative choice to an evaluation of our outcomes of operations as reported underneath GAAP. A reconciliation of GAAP to non-GAAP outcomes is offered within the monetary tables included on this press launch. Safe Harbor Statement All statements on this launch that aren’t based mostly on historic reality are “forward-looking statements” supposed to qualify for the protected harbor from legal responsibility established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements, that are based mostly on sure assumptions and describe our future plans, methods and expectations, can typically be recognized by means of forward-looking phrases similar to “might,” “will,” “would,” “might,” “ought to,” “count on,” “anticipate,” “hope,” “estimate,” “consider,” “intend,” “doubtless,” “tasks,” “plans,” “pursue,” “technique” or “future,” or the destructive of those phrases or different phrases or expressions of comparable that means. Examples of forward-looking statements embody, amongst others, statements we make relating to efficiency underneath buyer contracts, expectations of working outcomes that stay topic to completion of economic closing procedures, IZEA’s skill to extend income and bookings, development or upkeep of buyer relationships, and expectations regarding business traits or IZEA’s enterprise technique. Forward-looking statements contain inherent dangers and uncertainties which might trigger precise outcomes to vary materially from these within the forward-looking statements, because of numerous elements together with, amongst others, the next: aggressive situations within the content material and social sponsorship section by which IZEA operates; failure to popularize a number of of {the marketplace} platforms of IZEA; our skill to ascertain efficient disclosure controls and procedures and inside management over monetary reporting; our skill to fulfill the necessities for continued itemizing of our frequent inventory on the Nasdaq Capital Market; altering financial situations which are much less favorable than anticipated; and different dangers and uncertainties described in IZEA’s periodic reviews filed with the Securities and Exchange Commission. The forward-looking statements made on this launch converse solely as of the date of this launch, and IZEA assumes no obligation to replace any such forward-looking statements to replicate precise outcomes or adjustments in expectations, besides as in any other case required by regulation. Press Contact Martin SmithIZEA Worldwide, Inc.Phone: 407-674-6911Email: [email protected] IZEA Worldwide, Inc.Consolidated Balance Sheets  June 30,2021 December 31,2020Asunits   Current belongings:   Cash and money equivalents$74,989,876  $33,045,225 Accounts receivable, net6,132,949  5,207,205 Prepaid expenses1,006,643  199,294 Other present assets62,694  74,467 Total present assets82,192,162  38,526,191     Property and gear, net193,786  230,918 Goodwill4,016,722  4,016,722 Intangible belongings, net72,222  505,556 Software growth prices, net1,242,252  1,472,684 Total belongings$87,717,144  $44,752,071     Liabilities and Stockholders’ Equity   Current liabilities:   Accounts payable$1,624,725  $1,880,144 Accrued expenses2,097,474  1,924,973 Contract liabilities8,654,765  7,180,264 Current portion of notes payable—  1,477,139 Total present liabilities12,376,964  12,462,520     Finance obligation, much less present portion34,292  43,808 Notes payable, much less present portion32,255  459,383 Total liabilities12,443,511  12,965,711     Commitments and Contingencies—  —     Stockholders’ fairness:   Preferred inventory; $.0001 par worth; 10,000,000 shares approved; no shares issued andoutstanding—  — Common inventory; $.0001 par worth; 200,000,000 shares approved; 61,809,573 and50,050,167, respectively, issued and outstanding6,181  5,005 Additional paid-in capital148,006,352  102,416,131 Accumulated deficit(72,738,900) (70,634,776)Total stockholders’ equity75,273,633  31,786,360     Total liabilities and stockholders’ fairness$87,717,144  $44,752,071  IZEA Worldwide, Inc.Consolidated Statements of Operations and Comprehensive Loss  Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020Revenue$6,538,739  $3,135,039  $11,914,371  $7,898,707         Costs and bills:       Cost of income (unique of amortization)3,284,259  1,414,249  5,689,011  3,554,766 Sales and marketing2,302,869  1,228,691  4,381,192  2,751,834 General and administrative2,659,578  1,920,492  5,194,725  4,338,330 Impairment of goodwill—  —  —  4,300,000 Depreciation and amortization363,924  377,107  729,453  878,376 Total prices and expenses8,610,630  4,940,539  15,994,381  15,823,306         Loss from operations(2,071,891) (1,805,500) (4,080,010) (7,924,599)        Other revenue (expense):       Interest expense(8,739) (19,476) (22,532) (26,094)Other revenue (expense), net1,968,944  33,834  1,998,418  (3,910)Total different revenue (expense), net1,960,205  14,358  1,975,886  (30,004)        Net loss$(111,686) $(1,791,142) $(2,104,124) $(7,954,603)        Weighted common frequent shares excellent –primary and diluted61,386,913  36,108,073  58,874,526  35,394,639 Basic and diluted loss per frequent share$—  $(0.05) $(0.04) $(0.22) Revenue by kind:  Three Months Ended June 30,    2021    2020    $ Change% ChangeManaged Services Revenue$6,113,819 94% $2,490,343 79% $3,623,476  146 %         Marketplace Spend Fees71,167 1% 195,894 6% (124,727) (64)%License Fees344,843 5% 442,905 14% (98,062) (22)%Other Fees8,910 —% 5,897 —% 3,013  51 %SaaS Services Revenue424,920 6% 644,696 21% (219,776) (34)%         Total Revenue$6,538,739 100% $3,135,039 100% $3,403,700  109 %  Six Months Ended June 30, YTDYTD 2021    2020    $ Change% ChangeManaged Services Revenue$10,985,853 92% $6,615,404 84% $4,370,449  66 %         Marketplace Spend Fees179,964 2% 362,187 5% (182,223) (50)%License Fees727,884 6% 894,453 11% (166,569) (19)%Other Fees20,670 —% 26,663 —% (5,993) (22)%SaaS Services Revenue928,518 8% 1,283,303 16% (354,785) (28)%         Total Revenue$11,914,371 100% $7,898,707 100% $4,015,664  51 % Gross billings by income kind:  Three Months Ended June 30, YTDYTD 2021    2020    $ Change% ChangeManaged Services Gross Billings$6,113,819 84% $2,490,343 55% $3,623,476  146 %         Marketplace Spend Fees838,343 11% 1,596,880 35% (758,537) (48)%License Fees344,843 5% 442,905 10% (98,062) (22)%Other Fees8,910 —% 5,897 —% 3,013  51 %SaaS Services Gross Billings1,192,096 16% 2,045,682 45% (853,586) (42)%         Total Gross Billings$7,305,915 100% $4,536,025 100% $2,769,890  61 %  Six Months Ended June 30, YTDYTD 2021    2020    $ Change% ChangeManaged Services Gross Billings$10,985,853 79% $6,615,404 62% $4,370,449  66 %         Marketplace Spend Fees2,189,935 16% 3,096,654 29% (906,719) (29)%License Fees727,884 5% 894,453 8% (166,569) (19)%Other Fees20,670 —% 26,663 —% (5,993) (22)%SaaS Services Gross Billings2,938,489 21% 4,017,770 38% (1,079,281) (27)%         Total Gross Billings$13,924,342 100% $10,633,174 100% $3,291,168  31 % IZEA Worldwide, Inc.Reconciliation of GAAP Net loss to Non-GAAP Adjusted EBITDA  Three Months Ended June 30, Six Months Ended June 30, 2021  2020  2021  2020 Net loss$(111,686)  $(1,791,142)  $(2,104,124)  $(7,954,603) Gain on the forgiveness of debt(1,927,220)  —   (1,927,220)  —  Non-cash stock-based compensation206,194   118,707   404,180   248,278  Non-cash inventory issued for fee of services37,544   31,249   72,240   62,499  Interest expense8,739   19,476   22,532   26,094  Depreciation and amortization363,924   377,107   729,453   878,376  Impairment of goodwill—   —   —   4,300,000  Other non-cash items124   (23,706)  (7,790)  (23,706) Adjusted EBITDA$(1,422,381)  $(1,268,309)  $(2,810,729)  $(2,463,062)         Revenue$6,538,739   $3,135,039   $11,914,371   $7,898,707  Adjusted EBITDA as a % of Revenue(22)% (40)% (24)% (31)% A photograph accompanying this announcement is accessible at https://www.globenewswire.com/NewsRoom/AttachmentNg/c7258438-8ea9-484b-bbe2-0c31e4339cfc