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Mar 31, 2020
IZEA Q1 2020 Earnings Report
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.
Key Takeaways
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.
IZEA
IZEA
IZEA Revenue by Segment
Revenue by Segment
Managed Services Revenue
CapyFin.comSaaS Services Revenue
CapyFin.com 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.
Positive Outlook
- 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.
Challenges Ahead
- 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.