|[February 06, 2017]
IZEA Reports Significant New Contract Wins
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 encourage 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 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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170206005276/en/
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