IZEA Achieves Record-breaking 181% Growth in Q3 Managed Services Bookings Year over Year

Rhea-AI Summary

IZEA Worldwide reported record Managed Services bookings of $11.3 million in Q3 2021, a 181% increase year-over-year compared to $4.0 million in Q3 2020. This surpasses the prior record of $11.1 million set in Q2 2021. The growth was fueled by the addition of new influencer marketing customers, including Fortune 500 brands. Management highlights substantial investments made throughout the year, enhancing sales performance. Total active software customers have doubled since September 2020, primarily driven by IZEAx Discovery.

Positive

• Managed Services bookings reached a record $11.3 million in Q3 2021, up 181% from Q3 2020.
• New customer acquisitions include multiple Fortune 500 brands.
• Total active software customers have more than doubled since September 2020.

Negative

• None.

Orlando, Florida, Oct. 05, 2021 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (NASDAQ: IZEA), the premier provider of influencer marketing technology, data, and services for the world’s leading brands, announced today that it set a Managed Services bookings record for the best quarter in company history. Managed Services bookings in Q3 of 2021 increased 181% year over year to $11.3 million as compared to Q3 of 2020, which were $4.0 million. The managed services bookings bests the previous record of $11.1 million set in Q2 2021. IZEA added a variety of new influencer marketing customers within the quarter, including multiple Fortune 500 brands.

Bookings are a measure of all sales orders minus any known cancellations or refunds in the same time period with respect to such sales orders or refunds. Management uses bookings to inform expectations of total sales activity. Bookings are not always an indicator of revenue for the quarter and could be subject to future adjustments. Revenue from Managed Services bookings is typically recognized over a 9-month period on average, though larger contracts may be recognized over more extended periods of time. IZEA recognizes Managed Services revenue based on a percentage of completion. 

“2021 has been a year of incredible growth and momentum for team IZEA,” said Ted Murphy, IZEA’s Chairman and CEO. “We have been making substantial investments across the organization and those new resources are beginning to have a material impact on our top line performance. Our marketing and sales efforts have resulted in increased opportunities and conversions with new customers across both Managed Services and SaaS offerings. We are also benefitting from expansion of programs with existing clients.”

“The changes that we made to our SaaS licensing plans and aggressive new price points at the end of Q3 last year continue to have a positive impact on increasing customer counts,” continued Murphy. “The total active software customer base reached record numbers again in Q3 and has more than doubled since September of last year. Software customer counts were largely driven by IZEAx Discovery, although Unity Suite new customer counts also saw an uptick from Q2 2021.”

IZEA’s net income and cash flow results will be announced along with the rest of its financial performance when it announces Q3 earnings, which is tentatively scheduled for November 10, 2021. IZEA’s Managed Services bookings represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors - including the amount of revenue recognized within the quarter, the cost of sales, and other operating expenses.

About IZEA Worldwide, Inc.
IZEA Worldwide, Inc. (“IZEA”) is a marketing technology company providing software and professional services that enable brands to collaborate and transact with the full spectrum of today’s top social influencers and content creators. The company serves as a champion for the growing Creator Economy, enabling individuals to monetize their content, creativity, and influence. IZEA launched the industry’s first-ever influencer marketing platform in 2006 and has since facilitated nearly 4 million transactions between online buyers and sellers. Leading brands and agencies partner with IZEA to increase digital engagement, diversify brand voice, scale content production, and drive measurable return on investment.

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,” “believe,” “intend,” "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 IZEA’s ability to increase revenue and bookings, 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 establish effective 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.

FAQ

What were IZEA's Managed Services bookings for Q3 2021?

IZEA reported Managed Services bookings of $11.3 million for Q3 2021, a 181% increase year-over-year.

How do Managed Services bookings affect IZEA's financial performance?

Managed Services bookings are a key indicator of sales activity but do not directly correlate to quarterly financial results due to revenue recognition processes.

When will IZEA announce its Q3 earnings?

IZEA is scheduled to announce its Q3 earnings on November 10, 2021.

What factors contributed to IZEA's growth in software customers?

The growth in software customers was driven by changes to SaaS licensing plans and aggressive pricing strategies implemented at the end of Q3 2020.