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IZEA Nasdaq· IZEA Worldwide Inc.
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IZEA Nasdaq· IZEA Worldwide Inc.
Earnings report Q3 2023

IZEA Reports Decline in Revenue for the Latest Quarter

Segments of revenue

IZEA Worldwide, Inc. reported revenue of $7.89 million for the three months ended September 30, 2023, compared to $10.83 million in the same period of 2022. This represents a decrease of approximately 27%.

Strengths

Despite the decline in revenue, IZEA's management attributed the decrease to various factors. Revenue from Managed Services decreased by $2.1 million, primarily due to the timing of campaigns and the impact of the COVID-19 pandemic. Revenue from Marketplace Spend Fees decreased by $0.8 million, mainly due to a decrease in net margins received on this business. Additionally, License Fees revenue decreased by $0.3 million, which was attributed to lower licensee counts and lower average revenue per licensee as the company transitions to its new Flex platform.

Challenges

The decline in revenue poses a challenge for IZEA, as it indicates a decrease in demand for its services. The impact of the COVID-19 pandemic on campaign timing and the overall economic environment may continue to affect the company's revenue in the future. Additionally, the decrease in licensee counts and revenues highlights the need for IZEA to effectively transition its clients to the new Flex platform.

Noteworthy

It is worth noting that IZEA reported a net loss of $1.98 million for the latest quarter, compared to a net loss of $0.91 million in the same period of 2022. This increase in net loss can be attributed to the decline in revenue and higher costs and expenses. However, the company reported other income of $0.66 million, which helped offset the loss from operations.

Summary

IZEA Worldwide, Inc. experienced a decline in revenue for the latest quarter, primarily driven by decreases in Managed Services, Marketplace Spend Fees, and License Fees revenue. The impact of the COVID-19 pandemic and the transition to the new Flex platform contributed to these declines. The company reported a net loss for the quarter, but other income helped mitigate the loss from operations. Going forward, IZEA will need to address the challenges posed by the decline in revenue and effectively transition its clients to the new platform to drive future growth.

Source documents

Form 10-Q  filed on Nov 14, 2023
63 pages scanned

Reference data

Company financials Q3 revenue 8.9M
Analyst estimates Q3 EPS missed by NaN%
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