IZEA Provides Recap of Q2 Key Events
July 02 2020 - 1:15PM
IZEA Worldwide, Inc. (NASDAQ: IZEA), the premier provider of
influencer marketing technology, data, and services for the world’s
leading brands, provided a recap of the key events occurring in Q2
2020. The company finished Q2 with Managed Services bookings up 50%
year over year, exceeding management’s expectations. Managed
Services represented 83% of the company’s revenue in the trailing
twelve months from Q2 2019 to Q1 2020, and is the primary revenue
driver for the company. The growth was driven by a combination of
new and existing customers.
Key Events in Q2 2020:
- Meaningfully expanded its financial relationship with a Global
Fortune 10 retailer.
- Secured a significant six-figure contract with a new Fortune
500 manufacturer.
- Renewed its contract with a Global Fortune 500 technology
company.
- Regained Compliance with the Nasdaq Capital Market Bid Price
Rule.
- Released Twitch Influencer Marketing Workflow Support in IZEAx
Unity Suite.
- Launched BrandGraph® Social Intelligence Platform.
- Launched BrandGraph® Trends.
- Added Proximity Identifiers and “Cashtag” Support to
BrandGraph®.
- Announced the Launch of the Shake™ Marketplace.
“In the face of extreme adversity, we have accelerated our march
forward as a company with vigor and passion. Not only were we able
to grow the core of our business, but we have successfully launched
multiple products and new technologies – all while working together
remotely,” said Ted Murphy, IZEA’s Chairman and CEO.
“I am very pleased with the growth we saw in Managed Services
bookings in Q2 2020 amid the economic challenges associated with
COVID-19, socio-political unrest, and a variety of other global
disruptions that unfolded during the quarter,” continued Murphy.
“As we previously shared, we saw a dramatic decline in customer
commitments in March, which carried into April, but the rebound we
have fought so hard for has been nothing short of remarkable. Even
more remarkable is that managed services bookings have increased
despite a significant and uncharacteristic number of cancellations
in the quarter, which dragged our growth rate lower than it
otherwise would have been.”
Bookings are a measure of all sales orders, minus any known or
expected cancellations or refunds in the measurement period.
Management uses bookings to inform expectations of total sales
activity. Subsequent revenue recognition and effective margins vary
by revenue stream, and bookings are not always an indicator of
revenue for the quarter and could be subject to future
adjustment.
“Enterprise SaaS licensing and marketplace spend from those
customers continues to trail Managed Services and be slower in
recovery, as we expected,” continued Murphy, “However, we have seen
a strong upward trend of the smaller, largely credit-card driven
portion of our SaaS licensing business, driven by IZEAx Discovery.
Credit card orders in Q2 2020 have more than doubled year over
year. We believe that the lower price points and monthly plans have
driven customer adoption and fueled a quicker recovery for the
offering. With the contribution of IZEAx Discovery, we ended the
quarter with a record number of paid SaaS subscriptions. As we look
to a near-term future where uncertainty around COVID-19 still
exists, we believe this purchasing preference bodes well for Shake
and other software solutions that have lower price points for entry
and can appeal to a more diverse base of customers.”
About IZEA Worldwide, Inc.IZEA Worldwide, Inc.
(“IZEA”) operates IZEAx, the premier online marketplace that
connects marketers with content creators. IZEAx automates
influencer marketing and custom content development, allowing
brands and agencies to scale their marketing programs. IZEA
creators include celebrities and accredited journalists. Creators
are compensated for producing unique content such as long and short
form text, videos, photos, status updates, and illustrations for
marketers or distributing such content on behalf of marketers
through their personal websites, blogs, and social media channels.
Marketers receive influential content and engaging, shareable
stories that drive awareness. For more information about IZEA,
visit https://izea.com/.
Safe Harbor StatementAll statements in this
release that are not based on historical fact are “forward-looking
statements” intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. Forward-looking statements, which are based on certain
assumptions and describe our future plans, strategies and
expectations, can generally be identified by the use of
forward-looking terms such as “may,” “will,” “would,” “could,”
“should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,”
"likely," "projects," “plans,” "pursue," "strategy" or "future," or
the negative of these words or other words or expressions of
similar meaning. Examples of forward-looking statements
include, among others, statements we make regarding expectations
concerning IZEA’s ability to increase revenue and bookings, growth
or maintenance of customer relationships, and expectations
concerning IZEA’s business strategy. Forward-looking statements
involve inherent risks and uncertainties which could cause actual
results to differ materially from those in the forward-looking
statements, as a result of various factors including, among others,
the following: competitive conditions in the content and social
sponsorship segment in which IZEA operates; failure to popularize
one or more of the marketplace platforms of IZEA; uncertainty
relating to the effects of COVID-19; our ability to satisfy the
requirements for continued listing of our common stock on the
Nasdaq Capital Market; changing economic conditions that are less
favorable than expected; and other risks and uncertainties
described in IZEA’s periodic reports filed with the Securities and
Exchange Commission. The forward-looking statements made in this
release speak only as of the date of this release, and IZEA assumes
no obligation to update any such forward-looking statements to
reflect actual results or changes in expectations, except as
otherwise required by law.
Martin Smith
IZEA Worldwide, Inc.
Phone: 407-674-6911
Email: ir@izea.com
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