IZEA Reports Q1 2025 Revenue from Core Operations of $8.0 million, up 23%

Improved Net Income by $3.1 million, achieving $(0.01) per share, Cash Positive

ORLANDO, Fla., May 13, 2025 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. $(IZEA)$, a leading influencer marketing company that makes Creator Economy solutions for marketers, reported its financial and operational results for the first quarter ended March 31, 2025.

Q1 2025 Financial Summary Compared to Q1 2024

   -- Total revenue increased 15% to $8.0 million, compared to $7.0 million 
 
   -- Revenue from core operations (excluding Hoozu) increased 23% 
 
   -- Managed Services bookings totaled $7.5 million, compared to $9.3 million 
 
   -- Managed Services revenue increased 18% to $7.9 million, compared to $6.7 
      million 
 
   -- Total costs and expenses decreased 22% to $8.6 million, compared to $11.0 
      million 
 
   -- Net loss was $0.1 million, compared to a net loss of $3.3 million 
 
   -- Adjusted EBITDA* for the quarter was $(0.1) million, compared to $(3.4) 
      million 
 
   -- Cash, cash equivalents, and investments as of March 31, 2025 totaled 
      $52.2 million, growing $1.1 million YTD 

Q1 2025 Highlights

   -- Recruited Frank Carvalho, EVP Sales and Marketing, to drive new customer 
      growth and marketing innovation 
 
   -- Launched the all-new IZEA.com homepage, highlighting our service 
      offerings and key industry verticals 
 
   -- Won new business from Nestle, Acer, Jeep, and more 
 
   -- Produced new work for Clorox, Carnation Breakfast Essentials, Matin Kim, 
      Academy Sports, and Coursera 

* Adjusted EBITDA is a non-GAAP financial measure. Refer to the definition and reconciliation of this measure under "Use of Key Metrics and Non-GAAP Financial Measures."

Management Commentary

"Q1 was an exceptional quarter and a giant step towards making good on our promise to accelerate our path to profitability," commented Patrick Venetucci, CEO. "We grew revenue by double-digits, nearly broke even, and generated cash -- in one quarter. This is strong evidence that the transformational changes we made in Q4 2024 are working. Our new go-to-market model, cost structure and technologies are aligning and beginning to bear fruit."

Q1 2025 Financial Results

Total revenue in the first quarter of 2025 increased 15% to $8.0 million, compared to $7.0 million in the first quarter of 2024. Revenue from ongoing Managed Services customers increased by 28% to $7.9 million in the first quarter of 2025. Revenue from SaaS Services decreased by 76% to $60,953 in the first quarter of 2025 compared to the first quarter of 2024, as we paused our marketing efforts during our business transformation.

Cost of revenue increased to $4.4 million in the first quarter of 2025, or 55% of revenue, compared to $4.0 million, or 57%, in the prior-year quarter. The nominal cost increase is due to higher revenues in the recent quarter, while lower average margins from the prior-year divested operations drove the percentage cost increase.

Costs and expenses, excluding the cost of revenue totaled $4.2 million for the first quarter of 2025, representing a 40% decrease from the prior-year quarter to $2.8 million. Sales and marketing costs were $1.1 million during the first quarter of 2025, representing a 63% decrease from $3.1 million in the prior-year quarter. The decrease was largely due to reduced costs resulting from our targeted workforce reduction, as well as a temporary pause in advertising spending and lower general contractor fees. General and administrative costs totaled $2.9 million during the quarter, a $0.8 million, or 22%, decrease compared to the prior-year quarter. General and administrative expenses decreased mainly due to reduced employee-related expenses related to our targeted workforce reduction, reduced use of external contractors, and lower spending on professional services and software licensing.

Net loss in the first quarter of 2025 was $0.1 million, or $(0.01) per share, as compared to a net loss of $3.3 million, or $(0.20) per share in the first quarter of 2024, based on 16.9 million and 16.3 million average shares outstanding, respectively.

Adjusted EBITDA (as defined below, a non-GAAP measure management uses as a proxy for operating cash flow) totaled $(0.1) million in the first quarter of 2025, compared with $(3.4) million in the comparative period.

As of March 31, 2025, our cash, cash equivalents, and investments totaled $52.2 million, a $1.1 million improvement from the beginning of the year, due to lower working capital levels and cash-positive operations. The company has no outstanding long-term debt.

We previously announced our commitment to repurchase up to $10.0 million of our stock in the open market, subject to certain restrictions. During the first quarter of 2025, we purchased a total of 180,486 shares at an average share price of $2.44 under our program for an aggregate investment of $0.4 million. Through May 8, 2025, we've purchased 401,480 shares, investing $1.0 million under the active program.

Conference Call

IZEA will hold a conference call to discuss its first quarter 2025 results on Tuesday, May 13, 2025, at 5:00 p.m. EDT. IZEA's CEO Patrick Venetucci and CFO Peter Biere will host the call, followed by a question and answer period.

Date: Tuesday, May 13, 2025

Time: 5:00 p.m. EDT

Toll-free dial-in number: 1-877-407-4018

International dial-in number: 1-201-689-8471

Please call the conference telephone number five (5) minutes before the start time. An operator will register your name and organization. A call replay will be made available approximately 3 hours after the conference ends until Tuesday, May 20, 2025, at 11:59 p.m. EDT.

Toll-free replay number: 1-844-512-2921

International replay number: 1-412-317-6671

Replay ID: 13753486

About IZEA Worldwide, Inc.

IZEA Worldwide, Inc. ("IZEA"), is an influencer marketing company with a mission to make creator economy solutions for marketers. We do this by lighting up the Creator Economy with IZEAs--our strategies, campaigns, and solutions that build brands and drive demand. Since launching the industry's first-ever influencer marketing platform in 2006, IZEA has facilitated nearly 4 million collaborations between brands and creators.

Use of Key Metrics and Non-GAAP Financial Measures

Managed Services bookings measure all sales orders received during a period less cancellations received, or refunds given during the same period. Sales order contracts vary in complexity with each customer and range from custom content delivery to integrated marketing services; our contracts generally run from several months for smaller contracts to twelve months for larger contracts. We recognize revenue from our Managed Services contracts based on a percentage of completion basis as we deliver the content or services over time, which can vary greatly from a few weeks to a year. For this reason, Managed Services bookings, while an overall indicator of the health of our business, may not be used to predict quarterly revenues and could be subject to future adjustments.

Managed Services bookings is a useful metric as it reflects the amount of orders received in one period, even though revenue may be reflected over time. Management uses the Managed Services bookings metric to plan its operating staff, identify key customer group trends, enlighten go-to-market activities, and inform its product development efforts.

"Adjusted EBITDA" is a non-GAAP financial measure under the Securities and Exchange Commission rules. EBITDA is commonly defined as "earnings before interest income and expense, taxes, depreciation, and amortization." IZEA defines "Adjusted EBITDA" as earnings or loss before interest expense, interest income, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable.

We believe that Adjusted EBITDA provides useful information to investors as it primarily excludes non-cash and non-operating transactions, and it provides consistency to facilitate period-to-period comparisons.

All companies do not calculate bookings and Adjusted EBITDA in the same manner. These metrics and financial measures, as presented by IZEA, may not be comparable to those presented by other companies. Moreover, these metrics and financial measures have limitations as analytical tools. You should not consider them in isolation or as a substitute for an analysis of our results of operations or, with respect to non-GAAP financial measures, as reported under GAAP. A reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure is presented in the financial tables included in this press release.

Safe Harbor Statement

All 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," "hope, " "estimate," "optimistic," "believe," "intend," "ought to," "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 product development and platform launches, future financial performance and operating results, including regarding recognition of bookings as revenues, the share repurchase authorization and any use of such

authorization, 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; our ability to maintain disclosure controls and procedures and internal control over financial reporting; 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.

Press Contact

Matt Gray

IZEA Worldwide, Inc.

Phone: 407-674-6911

Email: ir@izea.com

 
 
                            IZEA Worldwide, Inc. 
                    Unaudited Consolidated Balance Sheets 
 
                                 March 31, 2025         December 31, 2024 
---------------------------  ----------------------  ------------------------ 
          Assets 
Current assets: 
  Cash and cash equivalents  $          50,612,348   $          44,644,468 
  Accounts receivable, net               4,269,114               7,781,824 
  Prepaid expenses                         697,635               1,079,045 
  Short term investments                 1,572,233               6,427,488 
  Other current assets                      10,511                  97,215 
                              --------------------    -------------------- 
    Total current assets                57,161,841              60,030,040 
 
  Property and equipment, 
   net of accumulated 
   depreciation                             80,619                 103,574 
  Software development 
   costs, net of 
   accumulated 
   amortization                          2,098,571               2,086,660 
      Total assets           $          59,341,031   $          62,220,274 
                              ====================    ==================== 
 
      Liabilities and 
   Stockholders' Equity 
Current liabilities: 
  Accounts payable                         892,636               1,511,747 
  Accrued expenses                       3,081,263               3,734,123 
  Contract liabilities                   7,095,245               8,188,651 
    Total current 
     liabilities                        11,069,144              13,434,521 
 
Finance obligation, less 
 current portion                                --                   4,034 
    Total liabilities                   11,069,144              13,438,555 
                              --------------------    -------------------- 
 
Commitments and 
Contingencies                                   --                      -- 
 
Stockholders' equity: 
  Preferred stock; $.0001 
  par value; 10,000,000 
  shares authorized; no 
  shares issued and 
  outstanding                                   --                      -- 
  Common stock; $0.0001 par 
   value; $50,000,000 
   shares authorized; 
   shares issued: 
   $17,661,220 and 
   $17,518,018, 
   respectively, shares 
   outstanding: $16,893,885 
   and $16,931,169, 
   respectively.                             1,766                   1,752 
  Treasury stock at cost: 
   7,67335 and 586,849 
   shares at March 31, 2025 
   and March 31, 2024, 
   respectively                         (2,065,873)             (1,622,065) 
  Additional paid-in 
   capital                             154,793,924             154,593,800 
  Accumulated deficit                 (104,439,855)           (104,297,055) 
  Accumulated other 
   comprehensive income 
   (loss)                                  (18,075)                105,287 
                              --------------------    -------------------- 
    Total stockholders' 
     equity                             48,271,887              48,781,719 
                              --------------------    -------------------- 
      Total liabilities and 
       stockholders' 
       equity                $          59,341,031   $          62,220,274 
                              ====================    ==================== 
 
 
 
                         IZEA Worldwide, Inc. 
            Unaudited Consolidated Statements of Operations 
 
                                  Three Months Ended March 31, 
                                  2025                  2024 
Revenue                   $         7,968,363   $         6,952,883 
 
Costs and expenses: 
   Cost of revenue                  4,401,574             3,967,975 
   Sales and marketing              1,121,782             3,056,291 
   General and 
    administrative                  2,940,507             3,783,086 
   Depreciation and 
    amortization                      160,352               204,186 
                           ------------------    ------------------ 
      Total costs and 
       expenses                     8,624,215            11,011,538 
                           ------------------    ------------------ 
 
Loss from operations                 (655,852)           (4,058,655) 
 
Other income (expense): 
   Change in the fair 
    value of digital 
    assets                                 --               106,159 
   Interest expense                    (1,654)               (2,001) 
   Other income 
    (expense), net                    514,706               669,865 
                           ------------------    ------------------ 
      Total other income 
       (expense), net                 513,052               774,023 
 
Net loss before income 
 taxes                    $          (142,800)  $        (3,284,632) 
   Tax benefit                             --                18,782 
                           ------------------    ------------------ 
Net loss                             (142,800)           (3,265,850) 
                           ==================    ================== 
 
Weighted average common 
 shares outstanding -- 
 basic and diluted                 16,927,166            16,333,415 
Basic and diluted loss 
 per common share         $             (0.01)  $             (0.20) 
 
 
 
                         IZEA Worldwide, Inc. 
          Unaudited Consolidated Statements of Comprehensive 
                                 Loss 
 
                                   Three Months Ended March 31, 
                                   2025                 2024 
Net loss                    $        (142,800)  $        (3,265,850) 
 
Other comprehensive income 
   Unrealized gain (loss) 
    on securities held                (13,903)               58,177 
   Unrealized gain (loss) 
    on currency 
    translation                      (109,459)                4,170 
Total other comprehensive 
 income (loss)                       (123,362)               62,347 
 
Total comprehensive income 
 (loss)                     $        (266,162)  $        (3,203,503) 
                             ================    ================== 
 
 
 
                                                    IZEA Worldwide, Inc. 
                                                       Revenue Details 
 
Revenue details by type: 
 
                                   Three Months Ended March 31, 
                             2025                                 2024                      $ Change            % Change 
             -----------------------------------                                       -------------------  ---------------- 
Managed 
 Services 
 Revenue 
 from Core 
 Operations  $        7,907,410           99   %  $        6,199,226           89   %  $        1,708,184            28    % 
Managed 
 Services 
 Revenue - 
 Hoozu                       --           --   %             497,316            7   %            (497,316)          (49)   % 
              -----------------  -----------       -----------------  -----------       -----------------   ----------- 
Total 
 Managed 
 Services 
 Revenue              7,907,410           99   %           6,696,542           96   %           1,210,868            18    % 
 
SaaS 
 Services 
 Revenue                 60,953            1   %             256,341            4   %            (195,388)          (76)   % 
              -----------------  -----------       -----------------  -----------       -----------------   ----------- 
 
Total 
 Revenue     $        7,968,363          100   %  $        6,952,883          100   %  $        1,015,480            15    % 
              =================  ===========       =================  ===========       =================   =========== 
 
 
 
                         IZEA Worldwide, Inc. 
         Reconciliation of GAAP Net loss to Non-GAAP Adjusted 
                                EBITDA 
 
                                   Three Months Ended March 31, 
                                   2025                 2024 
Net loss from operations    $        (142,800)  $        (3,265,850) 
   Adjustment to fair 
    market value of 
    digital assets                         --              (106,159) 
   Non-cash stock-based 
    compensation                      285,132               354,189 
   Non-cash stock issued 
    for payment of 
    services                           90,002                75,006 
   Depreciation and 
    amortization                      160,352               204,186 
   Interest expense                     1,654                 2,001 
   Interest income                   (471,190)             (666,252) 
   Tax benefit                             --               (18,782) 

                             ----------------    ------------------ 
      Adjusted EBITDA(1)    $         (76,850)  $        (3,421,661) 
                             ================    ================== 
 

(1) Adjusted EBITDA presentation varies from prior disclosure, primarily to exclude non-operating items such as interest income.

(END) Dow Jones Newswires

May 13, 2025 16:01 ET (20:01 GMT)