NASDAQ$IZEA

IZEA Worldwide Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

IZEA's financial results for Q1 2020 were reported, revealing flat total revenue compared to the previous year, with growth in Managed Services offset by a decline in SaaS Services, and a significant net loss due to an impairment of goodwill.

IZEA's Q1 2020 showed flat revenue year-over-year, with a 7% increase in Managed Services revenue offset by a 36% decrease in SaaS Services revenue. The company experienced a net loss of $6.2 million, primarily due to a $4.3 million impairment of goodwill. Despite challenges from COVID-19, the company saw a resurgence of bookings in mid-April.

  • Total revenue remained flat at $4.8 million compared to Q1 2019.
  • Managed Services revenue increased by 7% to $4.1 million.
  • SaaS Services revenue decreased by 36% to $583,000.
  • Net loss was $6.2 million, impacted by a $4.3 million impairment of goodwill.

Headline financials

Total Revenue

$4.76M

Previous: $4.79M-0.6%
EPS (adj)

-$0.72

Previous: -$0.60-20.0%
Adjusted EBITDA

-$1.19M

Previous: -$874K-36.7%
Capital Expenditures

$0.00

Previous: -$2.38K+100.0%
Free Cash Flow

-$6.16M

Previous: -$1.83M-236.3%
Net Income

-$6.16M

Previous: -$1.83M-236.7%
Operating Income

-$6.12M

Previous: -$1.71M-257.5%
Gross Profit

$2.62M

Previous: $2.69M-2.6%
Cash & Equivalents

$5.63M

Previous: $2.32M+143.4%
Total Assets

$17.3M

Previous: $22.3M-22.7%

Revenue & EPS history

IZEA · Revenue · Quarterly

$4.76M

Q1 2020-0.6%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

IZEA · $4.71M total across 2 segments · Q1 2020

  • Managed Services
    $4.13M+6.7%
  • SaaS Services
    $583K-36.1%

Forward guidance

IZEA faces uncertainty due to the evolving macro environment and the COVID-19 crisis, but remains cautiously optimistic. The company is focused on cost control, rebuilding its sales pipeline, and adjusting to the current consumer environment. The company expects to reflect cost savings in Q2.

Tailwinds

  • Bookings saw a remarkable resurgence in mid-April.
  • The 14-day average bookings trendline is now above the pre-COVID-19 average.
  • Monthly recurring revenue from IZEAx hit an all-time high in March 2020.
  • The 14-day average trendline for daily software demos hit an all-time record last week.
  • IZEA's products and services are well-aligned for the current consumer environment.

Headwinds

  • Cannot assure that the momentum will continue.
  • Still digging out from the overall decline in SaaS licensing and marketplace revenue related to TapInfluence customer churn.
  • SaaS sales attributable to new customers post March 13th have been much slower to rebound than Managed Services.
  • Many customers will remain on hold until such time that those sectors begin to recover.
  • Faces a rapidly evolving macro environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.7%

Avg return

Earnings day

-2.5%

Avg return

5 days after

-1.6%

Avg return

30 days after

37%

21 / 57 earnings

Positive

+38.0%

Q4 2016

Best reaction

-27.8%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.2%-13.3%-17.2%
Q4 2025-2.3%+5.1%+15.7%
Q3 2025-1.8%+5.6%-1.8%
Q1 2025-2.5%-1.0%-8.0%
Q4 2024-5.3%+1.2%-6.0%
Q3 2024+1.8%+0.7%-9.8%
Q2 2024-1.3%-0.4%+17.4%
Q1 2024-9.4%-20.2%-35.7%
Q4 2023+3.5%+3.9%+24.2%
Q3 2023-5.9%-3.3%-5.9%
Q2 2023-6.4%-5.9%-6.8%
Q1 2023+5.0%+12.7%+27.5%
Q4 2022-4.8%-10.1%-14.6%
Q3 2022-0.7%-1.3%-3.6%
Q2 2022+8.9%+0.2%-12.6%
Q1 2022-8.7%-5.8%-9.8%
Q4 2021+23.0%-0.7%-15.2%
Q3 2021+2.9%+13.2%-23.9%
Q2 2021-8.8%-16.4%+0.4%
Q1 2021-23.2%-0.3%-6.7%
Q4 2020-3.3%-1.3%-2.8%
Q3 2020-6.6%-7.6%+7.8%
Q2 2020-4.3%-3.6%-32.3%
Q1 2020-0.8%-9.8%+172.2%
Q4 2019+13.0%-12.4%+24.9%
Q3 2019-8.8%-8.8%-24.6%
Q2 2019-19.2%-19.6%-36.3%
Q1 2019+0.4%-9.6%-13.2%
Q4 2018-17.9%-14.3%-25.0%
Q3 2018-7.3%-11.0%-25.2%
Q2 2018-12.9%+17.7%+41.9%
Q1 2018-16.5%-25.7%-45.6%
Q4 2017+25.9%+8.2%-6.8%
Q3 2017+22.0%+24.7%+22.3%
Q2 2017+9.1%+12.8%+5.5%
Q1 2017-16.9%-23.6%-32.4%
Q4 2016+38.0%+37.7%+22.6%
Q3 2016-13.7%-18.1%-13.0%
Q2 2016-0.9%+3.1%-11.4%
Q1 2016-6.7%
Q4 2015+0.1%
Q3 2015+5.6%
Q2 2015+8.3%
Q1 2015+8.3%
Q4 2014+1.4%
Q3 2014-10.0%
Q2 2014-0.6%
Q1 2014+4.0%
Q4 2013-1.9%
Q3 2013-18.2%
Q2 2013+11.4%
Q4 2012-4.8%
Q3 2012-27.8%
Q2 2012-16.7%
Q1 2012+16.0%
Q4 2011-6.3%
Q3 2011
Q2 2011+1.6%
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2010

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