IZEA - Earnings call transcript Q3 2024

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Operator

Greetings, and welcome to IZEA Worldwide, Inc.

Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Matt Gray, Assistant Vice President of Marketing. Mr. you, Thank Gray.

begin. You may

Matt Gray

QX call everyone, a Venetucci. the and AVP earnings afternoon, today. Earlier the Chief on to Marketing Peter afternoon, Financial Biere; this and release for welcome quarter of being XXXX. detailing covering IZEA IZEA's the me third joining Gray, Officer, IZEA. call IZEA XXXX. performance Chief of Officer, press Patrick Good during Executive And IZEA's issued are Thanks I'm of us company Matt with

If Investor like details, of at you'd review to all found our those be can online investor izea.com/investors. Relations information on our website

disclosures statements we in we our regarding considered of operations and note today's Before to results results differ number materially. make be We of cause and these filings included covering factors. discussion risks business, of may and financial release the in statements a harbor you actual the such that could IZEA's financial paragraph that for take that please a press to advised and contained forward-looking today the encourage begin, detailed be our performance SEC safe of involve some uncertainties consider

filings. non-GAAP will results our Reconciliations non-GAAP adjusted the also between issued today earlier our release can earnings our for financial of available GAAP in measure commentary Our also publicly include be in and metrics reported EBITDA. found and today

to IZEA's Officer, would that, I Financial like to call now Chief with over turn Biere. And and Peter? introduce Peter the

Peter Biere

revenue quarter was selected million balance XX% September prior Thank quarter discuss prior XXXX, highlights. above the you, $X.X results Total compared year's quarter. review operating for the Matt, good XX, approximately for quarter of ended I'll year and or afternoon, third everyone. and the XXXX the sheet to

grew the million to grew healthy services prior revenue large in ways quarter. Demand to year's XXXX, third the third XXXX whom from in customer compared $X.X $X.X quarter. revenues of parted quarter for in XX% the a managed year XX% million nonrecurring attributable with prior we to Excluding the

XXXX. emerging This this reduction markets. experienced is was in to than due of believe We slightly half some first quarter's decline demand and budgets, lower in marketing particularly in the timing

It's bookings Many faster of are the are contract and complete IZEA's average longer. note important take to months cycle. contracts X.X some revenue to that an

year-to-date. backlog, $XX.X of that revenue increase of million are versus million quarter an This Our Managed Services invoice, unrecognized XXXX bookings million and to contracts of decrease underway totaled is XX, that September total haven't second a for on recent started we a and XXXX. $X.X the of $X

the quarters. much X this in We X will recognize to following revenue of

million XX% $X.X third $X.X Our or from revenue quarter in of first Managed revenue in $X.X higher increased from Services the totaled same of Managed XXXX, part coming revenue and quarter in during than XX% half or Services customer approximately prior by $X.X the million million XXXX, was of XXXX. quarter, Removing the the our strong in demand the of nonrecurring XXXX. third Hoozu period million from year by which

quarter. compared third AI Most in are SaaS $XX,XXX Services IZEA's quarter the these revenue year prior customers of tools. of $XXX,XXX in XXXX the using actively totaled to

mainly year of totaled prior revenue costs up the in cost base. Expenses from revenue revenue $X.X million of offset compensation third existing administrative during activities. General quarter, mainly totaled our the total demand totaled quarter. the reduced customer costs costs reflects compared to cost generation XXX% attributable within other to third due million the and quarter. million or $X.X costs partly third expenses XXXX the quarter, Sales the year professional company during on quarter prior decrease million from up $X.X $XX quarter, incurred revenue the of or the severance quarter. by The of million $X.X fees third the to quarter margins the XX.X% third XXXX, and Our in of executives. also noncash from for increased was in X $X.X to increased X% prior percentage compensation than accrued The XX% and XX% improved cost during spending of current departure from of the year up marketing million year quarter. prior

We also to million quarter. Tapinfluence goodwill XXXX related acquisition impaired, the current determined charge of that leading the was noncash $X our in to a

$X.X $X.X quarter million negative million on of XX the EBITDA for prior million or a for loss XXXX. Our or XX.X compared compared totaled Adjusted quarter quarter third to million to third $X.XX XXXX year $X.XX per current the in net million negative per for on net the of was million of shares loss the negative negative $X $X.X a shares share quarter. share

commitment As our decrease XX, $XX.X million our $X.X subject previously XXXX, some primarily $XX funding market, of negative following On open XXXX, million September we period. in cash September X EBITDA investments, window, of and we the without the of to to purchase levels had to buy our in adopted plan XX, restrictive insider restrictions during and million the required quiet became to which due XXbX-X a working We of capital. November harbor announced periodic on safe related quarter, higher a stock shares restrictions. to active

earned for have share our of investments program our purchased XXXX, price an As investment current in we million at XX,XXX average of of quarter. an $X.XX interest shares $X.X $XXX,XXX. We during aggregate on under the November XX,

our liquidity acquisition do debt sheet. ahead. portfolio required, lie growth investment With on execute solid hand have cash that position our business and as balance we're we in a on opportunities not any from and our on Lastly, organic to

Executive call Chief to that, our the turn Patrick I'll Officer. Venetucci, over With

Patrick Venetucci

Venetucci, and for CEO I'm your Peter, Thank afternoon, and today. IZEA. you, you the of good new Thank Patrick everyone. time attention

we both management made On September Board. X, several changes to and the important

IZEA's X COO, Murphy, and years CEO experience Schram, stepped on company. Founder the XX-plus Ted side, management years the and Board. CEO; the I industry leveraging into On Ryan my role, of departed and

Board. of from made and Bonchristiano Lindsay Strategy Capital Board Board. more the chaired composition new commitment confidence importantly, X the created of Board's a Committee Caron. $X naming the to that the the Investments. roles, as side, buyback We company's We shares to GP Chairman from million CEO are size, Chairman Rodrigo to and in increased And demonstration a million the On we of Gardner IZEA's Boscolo John and as Board committee as Antonio added changes as belief by members, separated share and our We the create $XX Allocation well undervalued ability value. we structure

shareholders. first was optimism newfound Talent tour clients listening about future. Officer. I During I excitement listening first tour, days, Chief hired on encompassed What a IZEA's our heard my and strategic My with employees, XX and and went workshops held meetings

base talent is Our smart, charismatic engaged. and

to an do Fortune that client extensive have have we includes We which for brands more. list XXX opportunities

strong a creativity of have and We innovation. culture care,

and Our new is which pipeline growth ideas team, product for leadership led AI. I tech including quickly robust, organized innovation executive to our strategic several with efficiencies. workshops

auto new I Kerry our new development. Coursera services professionalizing Lastly, accomplishments NHTSA. Talent sales, talents produced to talent Danone, largest work managed Chief the enable business hired us exciting experience one to for from first in programs won develop Griffin, our is and over charged business the in attract has we who during operations manufacturers. and of made with Nestle, We and industry. In We Officer, product notable QX, of X our and decades the best

and creator including and set Awards, Global IZZY movie Our Barbie faster launching tech cutting-edge won IZEA's the Awards awards, rich our empowers Agency vibrant AI make to advanced Excellence launching Digital campaign harnesses Global Influencer Marketing data impactful The product making IZZY, numerous work assistant more campaigns. for Global by smarter, marketers a the Awards. We creator decisions. and users

Lastly, Stevie and several being IZEA's Awards Best Great Daily Employers of awards Comparably. as attractive Place we Agencies, culture, Work recognition won to a Top PR Workplace, Agency for Great

we do model, driving putting go-to-market line are simplify, the path profitability. believe focused both and There path opportunities company we the to profitability. forward, Looking a accelerate growth on top are fortify can and and to to I focus. on our

to to are merely segments growth. We with from business profitable that beginning are shift and segments identify growing resources

direction is next initiatives our sharing Our change XXXX investor happened and forward business QX. at transformational conclusion, the look at meeting. In plan during process more about future a I to IZEA strategic underway.

making company open now the of future stakeholders, deliver We're the employees the all fast. our alike. Thank progress. Board Q&A will The about management this to optimistic moving you our call value and additional clients to are from I are shareholders, ability of and today. We for for and community. time your analyst

Operator

turn questions, of now [Operator comments. the Instructions] further there over for I like no floor reached to would the have ladies As Matt and are to question-and-answer gentlemen, closing we session. end Gray

Matt Gray

Thanks this joining for everyone, Ranjil, so and you, afternoon. much, thank us

us, As on Thanks our a find a again nice information . IZEA's of Investor can you Relations izea.com/investors. website, Investor evening. joining all and have reminder, for Relations

Operator

concludes This you. today's Thank teleconference.

participation. your for you Thank time. this at lines your disconnect may You

IZEA Worldwide (IZEA) 14 Nov 242024 Q3 Earnings call transcript