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Jun 30, 2020
IZEA Q2 2020 Earnings Report
Financial results decreased due to the impact of COVID-19, but bookings for Managed Services increased.
Key Takeaways
IZEA Worldwide Inc. reported a decrease in total revenue by 20% to $3.1 million compared to Q2 2019. The net loss was $1.8 million, slightly better than the $2.0 million loss in the previous year. Managed Services bookings increased by 50% compared to the prior-year quarter.
Total revenue decreased by 20% to $3.1 million compared to the same quarter last year.
Managed Services unit revenue decreased by 17% to $2.5 million.
SaaS Services unit revenue decreased by 31% to $645,000.
Net loss improved slightly to $1.8 million from $2.0 million in the prior year.
IZEA
IZEA
IZEA Revenue by Segment
Forward Guidance
IZEA anticipates revenue from recent bookings will be recognized over the coming two quarters and plans to expand investment in technology and marketing.
Positive Outlook
- Strong balance sheet enables expanded investment.
- Strategic push forward to capture more market share.
- New technology to differentiate from competition.
- Aggressive marketing plans.
- High-quality service offerings.
Challenges Ahead
- COVID-19 pandemic caused material declines in new business sales.
- Customers paused or cancelled campaigns booked in prior quarters.
- Uncertainty in the financial markets.
- Expected reductions in future receivables.
- Low stock price and small market cap.