Skip to main content

Record Gross Profit, up 62% Year over Year

IZEA, Inc. (OTCQB: IZEA), the leader in Social Sponsorship, today announced record results for its first quarter ending March 31, 2014.

First Quarter 2014 Financial Highlights:

  • Revenue increased 41% to a record $1.96 million during Q1 2014 compared Q1 2013
  • Bookings reached a record $1.70 million in Q1 2014, the highest amount of Q1 net bookings in the history of the company.
  • Gross profit margin for the quarter was 67%, up from 58% during the same period in 2013.
  • In February 2014, the Company completed a $12 million financing. The company currently has no long-term debt.

First Quarter Operational Highlights:

  • 58 full time team members, added 8 in sales and 2 engineers.
  • IZEAx, our next generation social sponsorship platform, launched into beta March 17th. Q1 growth driven entirely by legacy platforms.
  • 50 thousand Registered Users in IZEAx, reaching an aggregate audience of 392 million fans and followers.
  • 9 signed IZEAx white label partners, 2 signed IZEAx certified resellers.

“We are pleased with our strong first quarter of 2014 and continue to see record revenue growth fueled by increased awareness of our company, repeat customers and progression of our industry,” said Ted Murphy, IZEA’s Chairman and Chief Executive Officer. “I remain very optimistic for 2014 and believe we will continue to see strong growth moving forward.”

“While we experienced some delays in expected Q1 bookings due to the unprecedented severe weather in the Northeast and Midwest throughout the quarter, those sales opportunities were quickly recognized in April,” said Ryan Schram, Chief Operating Officer. “The result was net bookings of nearly $1M for the month, up 230% from April 2013.”

First Quarter 2014 Results
Revenue for the first quarter of 2014 was $1,957,040 compared to $1,385,275 for the first quarter of 2013, an increase of 41%. Gross profit for the quarter was $1,307,507, up from $809,173 during the same period in 2013, an increase of 62%. Operating expenses for the quarter ended March 31, 2014 were $2.00 million, compared to $1.67 million in the same period in 2013, an increase of 20% due to investments in sales, marketing and investor relations, and an increase in non-cash stock compensation expense..

Net loss for the quarter was $(1,714,488) compared to $(883,830) during the same period last year, primarily due to a $1,009,576 loss on the change in the fair value of derivatives. Adjusted EBITDA was $(504,330) for the quarter compared to $(756,184) during the same period of last year, an improvement of 33%, primarily due to the higher revenue and improved margins.

Basic and diluted earnings per share were $(.05) for the first quarter of 2014, compared to basic and diluted earnings per share of $(.13) for the first quarter of 2013.

Download Consolidated Financials

Investor Conference Call
The Company will host a conference call today at 5:00pm ET, during which IZEA management will discuss the financial results and be available to answer any questions from the investment community.

Toll-Free (Domestic): (877) 941-4775
International (Toll): (480) 629-9761
Webcast Link: http://public.viavid.com/index.php?id=109193

Electronic replay of the conference call will be available through April 1, 2014 by dialing (877) 870-5176 and entering PIN number 4682954. IZEA will also post a downloadable file onto the Investor Relations area of http://corp.izea.com.

Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based largely on IZEA’s 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 Sponsored Social segment in which IZEA operates, failure to popularize one or more of the marketplace platforms of IZEA, inability to obtain additional capital, 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 release will in fact occur. Please read the full statement and disclosures here: http://corp.izea.com/safe-harbor-statement