INVESTOR OVERVIEW ® Q1 2017 CONTENT + INFLUENCE + SCALE
This overview contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position and business strategy. The words or phrases “would be,” “will allow,” “intends to,” “may result,” “are expected to,” “will continue,” “anticipates,” “expects,” “estimate,” “project,” “indicate,” “could,” “potentially,” “should,” “believe,” “think”, “considers” or similar expressions are intended to identify “forward-looking statements.” These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include competitive conditions in the social media sponsorship segment in which IZEA operates, failure to popularize one or more of the marketplace platforms of IZEA, inability to obtain additional capital, and changing economic conditions that are less favorable than expected and other factors that are detailed in our periodic reports and on documents we file from time to time with the Securities and Exchange Commission. Statements made herein are as of the date of this investor overview and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such forward-looking statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's expectations and estimates. All images, brands and marks found in this presentation are copyright their respective holders. None of the agencies, celebrities, brands or companies presented herein have endorsed an investment in IZEA. SAFE HARBOR STATEMENT
KEY STATS NASDAQ : IZEA Stock Price (2/28/17) $4.30 52 Week Low-High $4.22-$7.99 Avg. Vol. (3 mo.) 14,262 Shares Outstanding 5.67M Free Float (est.) 3.4M Insider Holdings 19% Institutional Holdings (est.) 45% Market Cap $22.7M Enterprise Value $16.7M Full Time Employees (2/28/17) 134 Fiscal Year End Dec 31 Revenue (TTM) $27.3M Revenue Backlog (MRQ) $10.2M Gross Profit (MRQ) $3.6M Adjusted EBITDA (MRQ) -$1.1M EV/Revenue (TTM) $0.61x Gross Profit Margin (MRQ) 48.9% Cash and Investments (MRQ) $5.9M Accounts Receivable (MRQ)1 $3.7M Total Assets (MRQ) $17.0M Total Debt (MRQ) $0.0M $0M $5M $10M $15M $20M $25M $30M 12 13 14 15 16 $30M $25M $9M $7M $5M Annual Bookings Growth $0M $5M $10M $15M $20M $25M $30M 12 13 14 15 16 $27M $21M $8M$7M $5M Annual Revenue Growth Please note: Forecast issued and effective only on December 31, 2016. Stock Data Source: S&P Capital IQ, NASDAQ (ttm) = trailing 12 months at December 31, 2016 (mrq) = most recent quarter at December 31, 2016 1) Net of allowance for doubtful accounts
We develop technology that helps
Marketers and Creators connect. Created the sponsored social space in 2006, became NASDAQ listed in 2016 140+ team members located in Los Angeles, New York, Detroit, Chicago, Toronto with headquarters in Orlando, Florida Powers social sponsorships for all 5 of the top 5 global consumer brands by revenue Supports content programs for 1,000+ publishers including Gannett and the AP
as well as top brands and agencies A PIONEER AND LEADER IN OUR SPACE.
Will Tang + SOFTWARE Robust SaaS platform for agencies and brands that automates multi-type influencer and content marketing programs. SERVICES Fully managed influencer marketing and custom content services using our experienced team members and network of Creators. SELF-SERVICE Streamlined self-service content amplification through social media influencers on Twitter and Facebook through ContentAmp. PROPRIETARY TECHNOLOGY + INCREDIBLE SERVICE
WE DO REALLY WELL. THINGS Blog Post
on Dell’s Blog Russ Banham
Journalist formerly with
The Wall Street Journal Jeremy Piven
Actor CREATOR + = BRAND Influencer Marketing Sponsored Tweet
on Jeremy’s Twitter Account Custom Content CONTENT TWO + = Dell Avocados
from Mexico
Utilize our network of creators to produce high quality content for use on your owned and operated sites, native advertising needs, CRM efforts or other marketing collateral. • Feature Stories • Articles / Blog Posts • Product Descriptions • Meta Data • White Papers • Infographics • Videos CUSTOM CONTENT
Leverage the power of social media influencers and media companies to produce custom sponsored content and distribute
it natively through their
social channels. • Sponsored Blog Posts • Sponsored Videos • Sponsored Photos • Sponsored Updates • Product Sampling • Influencer Events INFLUENCER MARKETING
+ PLATFORM AGNOSTIC IZEA supports all major social distribution platforms for both long form and short form content. PAID Sponsorship and Distribution EARNED Amplification via social shares OWNED Original content creation OUR APPROACH
Creator Discovery Contracting Content Workflow Publishing Payment Tracking Analytics IZEAx PROVIDES: Our team leverages IZEA’s proprietary software technology IZEAx to manage workflow, enable collaboration, and optimize outcomes on behalf of our services clients. + OUR TECH
Technology enabled influencer and content marketing. THE IZEA PROCESS REVIEW CONTENT PUBLISH & TRACK CREATOR PAYMENT CREATE OPPORTUNITY TARGET CREATORS ACCEPT BIDS BID ON OPPORTUNITIES CREATE CONTENT MARKETER CREATOR
THE WORLD’S LARGEST BRANDS TRUST IZEA 5 out of 5 top consumer brands (by revenue) use IZEA to create and distribute content.
Content and Influencer Marketing achieved chart-topping Effectiveness Ratings among familiar Influencer and Content Marketers. 2016 IM (1-10 Scale) 2016 CM (1-10 Scale) Content Marketing 7.69 7.63 Influencer Marketing 7.56 7.54 Brand-Specific Web Development 7.47 7.47 Experiential Marketing 7.42 7.43 Celebrity Endorsements 6.84 6.77 Online Display Advertising 6.50 6.49 Podcast Advertising 6.35 6.32 Television Advertising 6.25 6.33 TV Program Official Sponsorship 6.01 6.09 TV Program Embedded Sponsorship 6.00 6.01 Radio Advertising 5.59 5.65 Magazine Advertising 5.36 5.36 Newspaper Advertising 4.69 4.56 BASE: U.S. Marketers of each type with professional experience with the given approach U.S. MARKETING TECHNIQUE EFFECTIVENESS RATINGS Traditional advertising across the entire media mix was viewed as much less effective by Marketers in 2016. `
2016 Effectiveness Momentum also reveals Content and Influencer Marketing have chart-topping year-on-year perceptual gains. BASE: IZEA’s 2016 U.S. State of Creator Economy Research Now B-to-B Panel Sample of 602 Client and Agency Marketers. Each marketing approach was rated by respondents who had professional experience with that approach. ! Notable that all approaches with strong positive Effectiveness Momentum have digital roots.
" In contrast, all traditional marketing approaches were perceived as having negative Effectiveness Momentum. Marketing Effectiveness Momentum vs. YA (U.S. Influencer Marketer Sample) Content Marketing Influencer Marketing Brand-Specific Web Development Experiential Marketing Online Display Advertising Podcast Advertising Celebrity Endorsements TV Program Official Sponsorships TV Advertising TV Program Embedded Sponsorships Radio Advertising Magazine Advertising Newspaper Advertising -70 -52.5 -35 -17.5 0 17.5 35 52.5 70 7% 9% 10% 11% 13% 11% 23% 35% 44% 45% 52% 61% 58% -54% -37% -33% -24% -25% -19% -21% -9% -14% -5% -4% -8% -1% % Negative Shift % Positive Shift +57% +53% +48% +40% +30% +26% +2% -8% -12% -13% -23% -28% -47% U.S. MARKETING APPROACH EFFECTIVENESS MOMENTUM
69% Over 2/3 of marketers in companies that do Influencer Marketing have stand-alone IM budget for their brand Organization-wide, 33% have budgets totaling over $500k - up from 25% in 2015 Over 1/2 of U.S. Marketers in companies that do Content Marketing have stand-alone CM budget for their brand Organization-wide, 29% have CM budgets totaling over $500k 58% INFLUENCER MARKETING BUDGETS CONTENT MARKETING BUDGETS
IZEA 2012-2016 AVG. DEAL SIZE $0K $5K $10K $15K $20K $25K $30K $35K 13 14 15 16 $31.7K $26.2K $13.4K $8.4K +277%
0 1 2 3 4 5 6 2008 2009 2010 2011 2012 2013 2014 2015 2.8 2.6 2.3 1.6 0.8 0.40.30.3 2.42.42.32.5 2.62.42.32.2 0.40.30.30.30.30.40.30.2 Connected Device Desktop / Laptop Mobile Source : eMarketer DEVICE INDEPENDENT IZEA content flows natively to all devices, without the need for separate ad units for mobile, tablet and other connected devices. IF YOU CAN SEE THE CONTENT YOU CAN SEE THE MARKETING MESSAGE. Hours Spent per Adult User per Day with Digital Media, US 51% mobile
MOBILE USERS ARE SPENDING MORE TIME OUTSIDE OF WEB BROWSERS, AVOIDING OR BLOCKING MOBILE WEB ADS. Source : comScore Media Metrix Multi-Platform & Mobiel Matrix, US, Dec 2014 / Dec 2015 IN-APP & IN-BROWSER Mario Lopez + 3% 13% 4% 54% 26% Desktop Phone App Phone Web Tablet App Tablet Web 3% 9% 6% 61% 21% 2014 2015 Share of Time Spent
on Social Media
Across Platforms. Phone App
MARKETING ASSET DEVELOPMENT Use assets produced by IZEA Creators for email marketing, website production, video
and print advertising. CONTENT AT-SCALE IMAGES CREATED BY THE IZEA NETWORK FOR HORMEL. CONTENT CAN BE RE-PURPOSED AND RE-DISTRIBUTED. CUSTOMER EMAIL NEWSPAPER INSERT RECIPE WEBSITE
CONTENT IS THE ONLY FORM OF MARKETING THAT PEOPLE SHARE. 4.5k+ SHARES 1K+ PINS Life on Virginia Street + The Gardening Cook + SHAREABLE MARKETING
NETWORK & EXPERIENCE 800,000+ opt-in social connections • All forms of social media content from snaps to live streams • Bloggers, YouTubers, Instagrammers and Tweeters Aggregate reach of 4+ billion followers Partnerships with talent agencies, MCNs and smaller networks Connections across 9 social channels Unmatched experience with
3.5+ million transactions facilitated between Brands and Creators Andrew Zimmern +
INFLUENCER DIVERSITY & QUALITY Access celebrities, niche influencers and everything in-between. Hillary Duff + Bat Dad + Latoya Forever + Tiffani Thiessen + Alfonso Ribeiro + Embellishments + Lucy Hale Actress Tia Mowry Actress Business Insider Premium Site Elizabeth Banks Movie Star Jordan Sparks Musician Modern Day Moms Blog Mark Cuban Entrepreneur Carmelo Anthony NBA Player Floyd Mayweather Boxer Rajiv Dhall Vine Star Marcus Johns Vine Star Brodie Smith Web Celebrity Venture Beat Premium Site Daymond John Entreprenuer Darren Criss Musician
INFOGRAPHIC MULTI-FORMAT CONTENT CAPABILITIES Blog Posts, Photos, Illustration and Video. Allstate HTC Thomson Reuters Broadcom Altos Tequila Wiley Nationwide Hershey’s BLOG POST PHOTO VIDEO BLOG POST INFOGRAPHIC VIDEOPHOTO
Custom tailored programs for any industry or content need. CLIENT SUCCESS SUPER AWARENESS IZEA has launched day-parted influencer campaigns for Kia, Toyota, Doritos and Avocados from Mexico to drive awareness of their Super Bowl commercials. DIY DELIGHTS IZEA Creators produce ongoing blog content for Bed, Bath & Beyond aimed at DIYers, home decor enthusiasts and those that love to cook. THE GOOD GUIDES IZEA Creators have developed over 25,000+ online product guides for eBay to support customer education, drive engagement and increase search traffic. ICE STREAM IZEA partnered with Nestle’s Drumstick brand to produce the first ever sponsored live stream on Periscope, promoting the first day of summer. HUNGRY FOR CONTENT Hormel leverages the IZEA Creator network to produce thousands of recipes which are used in print materials, email and on the Hormel website. CONTENT ARMY IZEA enables Gannett to produce thousands of pieces of editorial and sponsored content every month for their family of newspapers.
REVENUE PER FTE $0 $11,304 $22,609 $33,913 $45,217 $56,522 $67,826 $79,130 $90,435 $101,739 $113,043 $124,348 $135,652 $146,957 $158,261 $169,565 $180,870 $192,174 $203,478 $214,783 $226,087 $237,391 $248,696 $260,000 Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 $138,961 $114,159 $88,473 $104,865 $163,243 $165,770 $189,853 $212,880 $173,522 $196,598 $196,857 $206,979 Revenue Per FTE (Annualized) Quarterly Q1’14-Q4’16 +97% HEAVY INVESTMENT IN PEOPLE AND TECHNOLOGY
40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140% Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 93.00% 114.00% 133.00% 105.00% 75.00% 74.00% 79.00% 72.00% 81.00% 66.00% 60.00% 64.00% Cash OPEX / Rev CASH OPEX / REVENUE Quarterly Q1’14-Q4’16 -41% HEAVY INVESTMENT IN PEOPLE AND TECHNOLOGY
0% 10% 20% 30% 40% 50% 60% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 48.95% 47.62% 50.56% 43.26%42.71% 39.54% 36.96% 40.96% Gross Profit Margin 3QTR. Avg Moving Average 2015-2016 GROSS PROFIT MARGIN 2015 2016
2012-2016 REVENUE GROWTH $0M $5M $10M $15M $20M $25M $30M 12 13 14 15 16 $27.31M $20.47M $8.32M $6.63M $4.95M
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