ORLANDO, Fla.--(BUSINESS WIRE)--IZEA, Inc. (NASDAQ:IZEA), operator of IZEAx®, the premier online marketplace connecting brands and publishers with influential content creators, is reporting several large new contract wins in early 2017.
Since the beginning of the year, IZEA signed a seven-figure contract with a Fortune 500 transportation company, as well as another contract in excess of $500,000 with a top 50 global consumer packaged goods company. In addition, IZEA has also received a $500,000 purchase order from a top 5 global retailer.
“We experienced a strong close in 2016, with record fourth quarter bookings driven by healthy demand for both influencer marketing and custom content services” said Ted Murphy, IZEA’s chairman and CEO. “We saw a meaningful increase in the size of repeat business contracts, leading to our best bookings month ever in December. That was followed by an unseasonably positive start to the year and our strongest January bookings in IZEA’s history.”
In addition to overall bookings momentum, IZEA was cash flow positive in December 2016, driven by strong customer collections and continued expense management. IZEA ended the year with nearly $6.0 million in cash, reducing cash burn to $650,000 versus $1.4 million in the prior quarter. This follows IZEA’s first EBITDA positive month, which occurred in the third quarter of 2016.
“While we do not yet expect to be cash flow or EBITDA positive on an ongoing basis, we are encouraged by the continued affirmation of our model,” said Murphy. “We are balancing our investment in future growth with our desire to maintain a sightline to profitability at all times. We continue to see great opportunity in our space and will invest ahead of revenues in areas that we believe will deliver strong returns for IZEA.”
IZEA ended 2016 with $30 million in bookings, up 23% from $24.5 million in 2015. Full year revenue is expected to be approximately $27 million, in-line with previous guidance. IZEA plans to provide complete financial results for the fourth quarter and full year 2016 on March 28, 2017.
IZEA will be announcing IZEAx 2.0 at IZEAFest on February 10-11th, 2017. To register for the event, go to www.izeafest.com.
IZEA operates IZEAx, the premier technology platform that connects marketers with influential content creators. IZEAx automates influencer marketing and custom content development, allowing brands and agencies to scale their marketing programs. IZEA creators range from leading bloggers and social media personalities, to A-list celebrities and professional journalists. Creators are compensated for developing and distributing text, videos, photos and status updates through social media. Marketers receive influential content and engaging, shareable stories that drive awareness. For more information about IZEA, visit www.izea.com.
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, customer order cancellations, 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.