ORLANDO, Fla.--(BUSINESS WIRE)--IZEA, Inc. (NASDAQ:IZEA), operator of IZEAx, the premier online marketplace connecting brands and publishers with influential content creators, reported record bookings for the third quarter of 2016 of $7.7 million, up 14% from $6.7 million in the same year-ago quarter.
In addition to record bookings, IZEA has achieved its first positive adjusted EBITDA month during the quarter, a significant milestone for the company. Results were driven by strong year-over-year margin improvements in both Sponsored Social and Content, as well as aggressive management of operating expenses.
“We believe it is important for us to always have a sightline to profitability given the macro economic climate,” said Ted Murphy, IZEA’s Chairman and CEO. “Over the past six months, we have shifted some of our focus to reducing burn, optimizing operations, and bringing parity to the custom content unit gross margin. The dramatic impact of those efforts gives us additional confidence in our baseline model and supports the ongoing investment in the technology and people that give us operational leverage. As we look forward, our intent is to place growth ahead of near-term profitability, while tapering our losses over time. This market is large and growing and IZEA is well positioned for continued expansion.”
IZEA’s trailing 12-month bookings from Q3 2016 was $29.1 million, up 48% from $19.7 million in the same trailing year-ago period. The company plans to provide full financial results for the third quarter of 2016 on November 14, 2016.
IZEA operates the premier online marketplace that connects brands with influential content creators. IZEA creators range from leading bloggers and social media personalities to A-list celebrities and professional journalists. Creators are compensated for developing and distributing unique content on behalf of brands including long form text, videos, photos and status updates. Brands receive influential consumer content and engaging, shareable stories that drive awareness. For more information about IZEA, visit http://corp.izea.com.
Financial Methodology & Related Disclosures
"EBITDA" is a non-GAAP financial measure within the meaning of Regulation G promulgated by the Securities and Exchange Commission. EBITDA is commonly defined as "earnings before interest, taxes, depreciation and amortization." We believe that EBITDA provides useful information to investors as it excludes transactions not related to the core cash operating business activities including non-cash transactions. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. All companies do not calculate EBITDA in the same manner, and EBITDA as presented by IZEA may not be comparable to EBITDA presented by other companies. IZEA defines adjusted EBITDA as earnings or loss before interest, taxes, depreciation and amortization, non-cash stock related compensation, gain or loss on asset disposals or impairment and all other income and expense items such as loss on exchanges and changes in fair value of derivatives, if applicable.
Important Cautions Regarding Forward-Looking Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are forward-looking include future market values and launch dates. These forward-looking statements are based largely on IZEA's current expectations and are subject to a number of risks and uncertainties, certain of which are beyond IZEA's control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, competitive conditions in the content and social sponsorship segments in which IZEA operates, failure to popularize one or more of the marketplace platforms of IZEA, inability to obtain additional capital on a timely basis, difficulties in integrating technology and operations of acquired businesses and achieving the expected benefits from the acquisitions, and changing economic conditions that are less favorable than expected. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will in fact occur. Please read the full statement and disclosures here: http://corp.izea.com/safe-harbor-statement.