Izea Worldwide (NASDAQ:IZEA) Releases Earnings Results, Misses Estimates By $0.07 EPS

Izea Worldwide (NASDAQ:IZEA) released its quarterly earnings results on Thursday. The company reported ($0.03) earnings per share for the quarter, missing the consensus estimate of $0.04 by ($0.07), FiscalAI reports. The firm had revenue of $6.20 million for the quarter, compared to analysts’ expectations 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 Trading Down 1.8%

NASDAQ:IZEA traded down $0.04 during mid-day trading on Thursday, hitting $2.19. 60,126 shares of the company’s stock traded hands, compared to its average volume of 29,367. The company has a fifty day moving average of $2.47 and a 200 day moving average of $3.34. Izea Worldwide has a twelve month low of $2.13 and a twelve month high of $5.50.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Izea Worldwide in a report on Monday, August 31st. Two equities research analysts have rated the stock with a Sell rating. According to MarketBeat, the stock has a consensus 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.