Izea Worldwide (NASDAQ:IZEA) Posts Quarterly Earnings Results

Izea Worldwide (NASDAQ:IZEA) posted its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share for the quarter, missing analysts’ consensus estimates of $0.04 by ($0.07), FiscalAI reports. The company had revenue of $6.20 million for the quarter, compared to analyst estimates of $9.50 million. Izea Worldwide had a negative return on equity of 5.10% and a negative net margin of 9.36%.

Here are the key takeaways from Izea Worldwide’s conference call:

• Third-quarter revenue fell 23% year over year to $6.2 million, as uneven enterprise spending and the exit from smaller, non-core customers outweighed gains from larger accounts.
• Managed Services bookings rose 94% year over year to $7 million. IZEA expects fourth-quarter revenue of $7.5 million to $8.1 million, up approximately 24% to 34% year over year, though bookings take about seven months on average to convert to revenue.
• Revenue from the three largest customers grew 21% year over year, and the accounts delivered their strongest combined quarterly revenue to date. However, performance across the broader enterprise portfolio remained inconsistent.
• Gross margin declined to 37% from 49%, and IZEA reported a $0.4 million net loss and a $0.2 million adjusted EBITDA loss. Lower revenue, customer mix, and higher internal delivery costs weighed on profitability.
• Operating expenses excluding cost of revenue fell 26% year over year, while IZEA ended the quarter with $46.4 million in cash and no long-term debt, giving it flexibility to fund growth initiatives and pursue acquisitions.

Izea Worldwide Stock Performance

IZEA stock traded up $0.23 during midday trading on Friday, hitting $2.42. 44,393 shares of the stock were exchanged, compared to its average volume of 56,118. The stock’s 50-day moving average price is $2.47 and its 200-day moving average price is $3.34. The stock has a market cap of $41.96 million, a price-to-earnings ratio of -17.32 and a beta of 1.19. Izea Worldwide has a fifty-two week low of $2.13 and a fifty-two week high of $5.50.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reissued a “sell (d-)” rating on shares of Izea Worldwide in a report on Monday, August 31st. Two research analysts have rated the stock with a Sell rating. Based on data from MarketBeat.com, the company presently has an average rating of “Sell”.

About Izea Worldwide

IZEA Worldwide, Inc. (NASDAQ: IZEA) is a marketing technology company that operates in the creator economy. The company helps brands and agencies develop and execute influencer marketing campaigns by connecting them with creators, including social media influencers, bloggers, and other digital content producers. IZEA provides both technology-enabled and managed services. Its offerings support creator discovery, campaign planning, content development, workflow management, payments, and performance measurement.