ORLANDO, Fla., April 01, 2024 (GLOBE NEWSWIRE) — IZEA Worldwide, Inc. (NASDAQ: IZEA), a premier supplier of influencer advertising expertise, information, and companies for the world’s main manufacturers, reported its monetary and operational outcomes for the fourth quarter ended December 31, 2023.Q4 2023 Financial Summary Compared to Q4 2022Total income elevated 1.0% to $8.9 million, in comparison with $8.8 millionTotal prices and bills elevated 8.5% to $11.1 million, in comparison with $10.2 millionNet loss was $1.5 million, in comparison with a internet loss of $0.9 millionAdjusted EBITDA* for the quarter was a loss of $1.1 million, in comparison with a loss of $0.3 millionCash, money equivalents and investments as of December 31, 2023 totaled $64.2 million with no long-term debtQ4 2023 Operational HighlightsIZEA named “Best Influencer Marketing Company” in 2023 MarTech Breakthrough Awards ProgramExpanded gross sales presence into the South Korea marketLaunched Offers, Creator Experience, and Offer Negotiation in IZEA FlexLaunched GPT-4 and AI Video Generation Tool in FormAI in IZEA’s Creator MarketplaceFY 2023 Financial Summary Compared to FY 2022Total income decreased 12% to $36.2 million, in comparison with $41.1 millionNet loss was $7.3 million, in comparison with a internet loss of $4.5 millionAdjusted EBITDA* was a loss of $5.5 million, in comparison with a loss of $2.8 million* Adjusted EBITDA is a non-GAAP monetary measure. For the definition and reconciliation of this measure, consult with “Use of Key Metrics and Non-GAAP Financial Measures.”Management Commentary“Last 12 months we made complete strategic changes to raised place ourselves for 2024 and past,” commented Ted Murphy, Founder and CEO of IZEA. “This included shifts in organizational frameworks, in addition to updates to our platforms and pricing methods. We made these difficult but obligatory transitions to enhance our operations, setting the stage for an upcoming period of formidable international growth via each natural and inorganic initiatives. I’m blissful to report that we’re starting to see the optimistic outcomes of these modifications within the first quarter of this 12 months.”“Year-over-year managed companies bookings development has returned in Q1 of 2024, fueled by a robust pipeline in Q4 of 2023, and an all-time report breaking pipeline in Q1 of 2024. Not solely have we seen a pipeline report in phrases of greenback worth, we’ve additionally seen a soar in phrases of quantity of alternatives, which is core to our income diversification technique shifting ahead. While Managed Services represents the overwhelming majority of income, SaaS income has begun to rebound after hitting a low level in Q3 of 2023. We ended 2023 with a report rely of energetic SaaS clients, and that development has continued into the primary quarter.”“We are excited and optimistic concerning the years forward, and imagine that IZEA is effectively positioned to capitalize on international alternatives within the creator financial system.”Q4 2023 Financial OutcomesTotal income within the fourth quarter of 2023 elevated 1.0% to $8.9 million, in comparison with $8.8 million within the fourth quarter of 2022. Revenue from Managed Services elevated by 4.2% to $8.8 million within the fourth quarter of 2023, from $8.4 million in the identical interval in 2022. In January 2023, we introduced that we had begun parting methods with one massive buyer (the “non-recurring buyer”), which is now full. Managed Services income from this non-recurring buyer totaled $0.4 million throughout the fourth quarter of 2023, $1.3 million or 79.0% decrease than in 2022. Managed Services income from new and current clients (our “ongoing clients”), excluding our non-recurring buyer, totaled $8.4 million within the fourth quarter, $1.7 million or 25.1% greater than in 2022, primarily on account of stronger bookings from these ongoing clients throughout the second and third quarters of 2023.Managed Services bookings totaled $7.6 million throughout the fourth quarter of 2023, in comparison with $7.9 million throughout the identical interval in 2022, largely as a result of loss of our non-recurring buyer.Revenue from SaaS Services decreased by $0.3 million, or 70.0%, within the fourth quarter of 2023 in comparison with the identical interval in 2022. During the second quarter of 2023, we accomplished the transition from our legacy IZEAx platform to Flex and The Creator Marketplace, which each have decrease per-user income fashions designed to drive subscriber development.Cost of income decreased to $4.7 million, or 53.1% of income, within the fourth quarter of 2023, in comparison with $5.7 million, or 65.3% of income, in the identical interval of 2022, primarily on account of greater lower-margin contract deliveries to our non-recurring buyer within the prior-year quarter. The proportion value of income on ongoing buyer deliveries was in vary with current historic averages.Costs and bills aside from the price of income totaled $6.4 million for the fourth quarter of 2023, 42.5% above the prior-year quarter. Sales and advertising prices had been $2.6 million throughout the fourth quarter of 2023, 18.0% greater than the prior-year quarter, primarily on account of elevated spend on commerce reveals and model consciousness efforts. General and administrative prices totaled $3.6 million throughout the quarter, $1.8 million or 97.6% greater than the prior-year quarter, due primarily to greater human capital and contractor prices and non-cash stock-based compensation prices.Net loss within the fourth quarter of 2023 was $1.5 million, or $(0.09) per share, as in comparison with a internet loss of $0.9 million, or $(0.06) per share within the fourth quarter of 2022, primarily based on 16.4 million and 15.5 million common shares excellent, respectively, as adjusted for the four-for-one reverse break up effected in June 2023.Adjusted EBITDA (as outlined under, a non-GAAP measure administration makes use of as a proxy for working money move) totaled a loss of $1.1 million within the fourth quarter of 2023, in contrast with a loss of $0.3 million in the identical interval in 2022, lowering $0.8 million due primarily to decrease internet earnings. Adjusted EBITDA as a proportion of income within the fourth quarter of 2023 was a loss of 9.0% in comparison with a loss of 3.4% within the fourth quarter of 2022.As of December 31, 2023, our money and investments totaled $64.2 million. The firm has no long-term debt borrowings excellent.Conference CallIZEA will maintain a convention name to debate its fourth quarter 2023 outcomes on Monday, April 1, 2024, at 5:00 p.m. EDT. 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: Monday, April 1, 2024Time: 5:00 p.m. EDTToll-free dial-in quantity: 1-877-407-4018International dial-in quantity: 1-201-689-8471Please name the convention phone quantity 5 (5) minutes previous to the beginning time. An operator will register your title and group. A replay of the decision shall be made obtainable roughly 3 hours after the convention ends till Monday, April 8, 2024, at 11:59 p.m. EDT.Toll-free replay quantity: 1-844-512-2921International replay quantity: 1-412-317-6671Replay ID: 13744273About IZEA Worldwide, Inc.IZEA Worldwide, Inc. (“IZEA”) is a advertising expertise firm offering software program {and professional} companies that allow manufacturers to collaborate and transact with the total spectrum of at the moment’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 platform in 2006 and has since facilitated almost 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 a measurable return on funding.Use of Key Metrics and Non-GAAP Financial Measures Managed Services bookings measure all gross sales orders obtained, much less cancellations obtained, or refunds given throughout the identical interval. Sales order contracts differ in complexity with every buyer and vary from customized content material supply to built-in advertising companies; our contracts typically run from a number of months for smaller contracts to 12 months for bigger contracts. We acknowledge income from our Managed Services contracts primarily based on a proportion of completion foundation as we ship the content material or companies over time, which might differ significantly from a number of weeks to a 12 months. For this motive, Managed Services bookings, whereas an total indicator of the well being of our enterprise, is probably not used to foretell quarterly revenues and may very well be topic to future changes.Managed Services bookings is a helpful metric because it displays the quantity of orders obtained in a single interval, although income could also be mirrored over time. Management makes use of the Managed Services bookings metric to plan its working employees, establish key buyer group developments, enlighten go-to-market actions, and inform its product improvement efforts.EBITDA is a non-GAAP monetary measure underneath the Securities and Exchange Commission guidelines generally 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 earnings and expense objects equivalent to good points or losses on settlement of liabilities and exchanges, and modifications within the truthful worth of derivatives, if relevant.We imagine that Adjusted EBITDA offers helpful data to traders because it primarily excludes non-cash transactions and offers consistency to facilitate period-to-period comparisons.All corporations don’t calculate bookings, and Adjusted EBITDA in the identical method. These metrics and monetary measures, as introduced by IZEA, could also be completely different from these introduced by different corporations. Moreover, these metrics and monetary measures have limitations as analytical instruments. You mustn’t think about them in isolation or as an alternative to an evaluation of our outcomes of operations as reported underneath GAAP. The monetary tables included on this press launch current a reconciliation of adjusted EBITDA to probably the most instantly comparable GAAP measure.Safe Harbor AssertionAll statements on this launch that aren’t primarily based on historic reality are “forward-looking” and meant to qualify for the protected harbor from legal responsibility established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements, that are primarily based on sure assumptions and describe our future plans, methods, and expectations, can typically be recognized by the use of forward-looking phrases equivalent to “could,” “will,” “would,” “might,” “ought to,” “count on,” “anticipate,” “hope,” “estimate,” “optimistic,” “imagine,” “intend,” “must,” “possible,” “tasks,” “plans,” “pursue,” “technique” or “future,” or the unfavourable of these phrases or different phrases or expressions of related which means. Examples of forward-looking statements embody, amongst others, statements we make concerning expectations regarding product improvement and platform launches, future monetary efficiency and working outcomes, together with concerning recognition of bookings as revenues, development, or upkeep of buyer relationships, and expectations regarding 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 in consequence of numerous components, together with, amongst others, the next: aggressive circumstances within the content material and social sponsorship phase wherein IZEA operates; failure to popularize a number of of {the marketplace} platforms of IZEA; our capacity to keep up disclosure controls and procedures and inside management over monetary reporting; our capacity to fulfill the necessities for continued itemizing of our frequent inventory on the Nasdaq Capital Market; altering financial circumstances which might be much less favorable than anticipated; and different dangers and uncertainties described in IZEA’s periodic studies filed with the Securities and Exchange Commission. The forward-looking statements made on this launch communicate 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 modifications in expectations, besides as in any other case required by regulation.Press ContactNicole O’HaraIZEA Worldwide, Inc.Phone: 407-674-6911Email: [email protected] IZEA Worldwide, Inc.Unaudited Consolidated Balance Sheets December 31,2023 December 31,2022Asunits Current property: Cash and money equivalents$37,446,728 $24,600,960 Accounts receivable, internet 5,012,373 5,664,727 Prepaid bills 739,988 3,927,453 Short time period investments 17,126,057 16,106,758 Other present property 26,257 66,441 Total present property 60,351,403 50,366,339 Property and tools, internet of amassed depreciation 205,377 156,774 Goodwill 5,280,372 4,016,722 Intangible property, internet 1,749,441 — Digital property 162,905 64,953 Software improvement prices, internet 2,056,972 1,774,033 Long time period investments 9,618,996 29,296,069 Total property$79,425,466 $85,674,890 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable 1,504,348 1,968,322 Accrued bills 3,083,460 2,130,702 Contract liabilities 8,891,205 11,247,746 Contingent legal responsibility 114,400 — Total present liabilities 13,593,413 15,346,770 Finance obligation, much less present portion 63,419 62,173 Deferred buy value, much less present portion 60,600 — Deferred Tax Liability 394,646 — Total liabilities 14,112,078 15,408,943 Commitments and Contingencies Stockholders’ fairness: Preferred inventory; $.0001 par worth; 2,500,000 shares approved; no shares issued and excellent — — Common inventory; $0.0001 par worth; 50,000,000 shares approved; shares issued: 16,602,155 and 15,603,597, respectively; shares excellent: 16,236,300 and 15,603,597, respectively 1,660 1,560 Treasury inventory at value: 365,855 and 0 shares at December 31, 2023 and December 31, 2022, respectively (1,019,997) — Additional paid-in capital 152,027,110 149,148,248 Accumulated deficit (85,444,794) (78,103,066)Accumulated different complete earnings (loss) (250,591) (780,795)Total stockholders’ fairness 65,313,388 70,265,947 Total liabilities and stockholders’ fairness$79,425,466 $85,674,890 IZEA Worldwide, Inc.Unaudited Consolidated Statements of Operations Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022Revenue$8,892,916 $8,802,255 $36,214,598 $41,095,937 Costs and bills: Cost of income 4,721,329 5,748,623 21,621,445 24,737,699 Sales and advertising 2,610,521 2,211,654 10,547,322 9,523,894 General and administrative 3,610,670 1,826,942 13,214,978 11,637,044 Depreciation and amortization 138,897 423,305 713,135 828,161 Total prices and bills 11,081,417 10,210,524 46,096,880 46,726,798 Loss from operations (2,188,501) (1,408,269) (9,882,282) (5,630,861) Other earnings (expense): Interest expense (1,853) 1,795 (8,226) (799)Other earnings (expense), internet 657,593 489,341 2,535,044 1,162,162 Deferred tax profit 6,104 — 6,104 — Total different earnings (expense), internet 661,844 491,136 2,532,922 1,161,363 Net loss$(1,526,657) $(917,133) $(7,349,360) $(4,469,498) Weighted common frequent shares excellent – primary and diluted 16,368,216 15,549,845 16,368,216 15,549,845 Basic and diluted loss per frequent share$(0.09) $(0.06) $(0.45) $(0.29) IZEA Worldwide, Inc.Unaudited Consolidated Statements of Comprehensive Loss Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022Net loss$(1,526,657) $(917,133) $(7,349,360) $(4,469,498) Other complete earnings Unrealized (achieve) loss on securities held (262,726) (83,800) (530,204) 780,795 Total different complete earnings (loss) (262,726) (83,800) (530,204) 780,795 Total complete earnings (loss)$(1,263,931) $(833,333) $(6,819,156) $(5,250,293) IZEA Worldwide, Inc.Revenue Details Revenue particulars by kind: Three Months Ended December 31, 2023 2022 $ Change % ChangeManaged Services Revenue$8,781,826 98.8% $8,431,636 95.8% $350,190 4.2% Marketplace Spend Fees 4,812 0.1% 83,566 0.9% (78,754) (94.2)%License Fees 99,687 1.1% 270,480 3.1% (170,793) (63.1)%Other Fees 6,592 0.1% 16,573 0.2% (9,981) (60.2)%SaaS Services Revenue 111,091 1.2% 370,619 4.2% (259,528) (70.0)% Total Revenue$8,892,917 100.0% $8,802,255 100.0% $90,662 1.0% Twelve Months Ended December 31, 2023 2022 $ Change % Change Managed Services Revenue$35,740,685 98.7% $39,456,986 96.0% $(3,716,301) (9.4)% Marketplace Spend Fees 44,985 0.1% 205,809 0.5% (160,824) (78.1)%License Fees 404,625 1.1% 1,301,198 3.2% (896,573) (68.9)%Other Fees 24,303 0.1% 131,944 0.3% (107,641) (81.6)%SaaS Services Revenue 473,913 1.3% 1,638,951 4.0% (1,165,038) (71.1)% Total Revenue$36,214,598 100.0% $41,095,937 100.0% $(4,881,339) (11.9)% IZEA Worldwide, Inc.Reconciliation of GAAP Net loss to Non-GAAP Adjusted EBITDA Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022Net loss$(1,526,657) $(917,133) $(7,349,360) $(4,469,498)Impairment of digital property — 6,502 — 148,310 Adjustment to truthful worth of digital property (90,320) — (90,320) — Non-cash stock-based compensation 308,017 182,759 950,769 610,772 Non-cash inventory issued for fee of companies 75,003 31,258 300,015 125,000 Interest expense 1,853 (1,795) 8,226 799 Deferred tax legal responsibility (6,104) — (6,104) — Depreciation and amortization 138,897 423,305 713,135 828,161 Other non-cash objects (4,809) (26,229) (4,505) (7,674)Adjusted EBITDA$(1,104,120) $(301,333) $(5,478,144) $(2,764,130) Revenue$8,892,916 $8,802,255 $36,214,598 $41,095,937 Adjusted EBITDA as a % of Revenue (12.4)% (3.4)% (15.1)% (6.7)%
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