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IZEA Worldwide (IZEA)
NASDAQ:IZEA
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IZEA Worldwide
(NASDAQ:IZEA)
39Underperform
IZEA Worldwide (IZEA) vs. S&P 500 (SPY)
Market Cap
$35.69M
Dividend YieldN/A
Average Volume (3M)29.72K
Price to Earnings (P/E)―
Beta (1Y)1.21
Revenue Growth-6.51%
EPS Growth-117.84%
CountryUS
Employees152
SectorCommunication Services
Sector Strength76
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-1.12
Shares Outstanding16,914,522
10 Day Avg. Volume28,137
30 Day Avg. Volume29,721
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.09
Price to Cash Flow (P/CF)6.50
P/FCF Ratio8.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
IZEA Worldwide Business Overview & Revenue Model
Company DescriptionIZEA Worldwide, Inc., together with its subsidiaries, creates and operates online marketplaces that connect marketers and content creators. Its technology solutions enable the management of content workflow, creator search and targeting, bidding, analytics, and payment processing. The company uses its platform to manage influencer marketing campaigns on behalf of the company's marketers. It primarily sells influencer marketing and custom content campaigns through sales team and platforms, as well as IZEA Exchange BrandGraph, and Shake platforms. The company was formerly known as IZEA, Inc. and changed its name to IZEA Worldwide, Inc. in August 2018. IZEA Worldwide, Inc. was founded in 2006 and is headquartered in Orlando, Florida.
How the Company Makes MoneyIZEA generates revenue primarily through its online marketplace that connects brands with influencers and content creators. The company earns money by charging fees for its services, which include influencer marketing campaigns, sponsored content creation, and distribution services. IZEA typically takes a percentage of the transaction value between brands and influencers facilitated through its platform. Additionally, the company may generate revenue through subscription fees for access to its software-as-a-service (SaaS) solutions, which provide tools for campaign management, analytics, and workflow automation. Key partnerships with brands and agencies further contribute to IZEA's revenue by expanding its reach and client base.
IZEA Worldwide Financial Statement Overview
Summary
IZEA Worldwide faces significant challenges, with a declining revenue trend, consistent negative net income, and poor cash flow stability. The company does have a strong equity base and low leverage, but these positives are overshadowed by operational inefficiencies and cash flow issues.Income Statement
IZEA Worldwide's TTM revenue shows a decline of approximately 7% compared to the previous year. The company consistently reports negative net income, indicating challenges in achieving profitability. Gross profit margin for the TTM is around 41.8%, but EBIT and EBITDA margins are negative, reflecting high operational expenses relative to revenue.35
Negative
Balance Sheet
The company has a low debt-to-equity ratio, indicating minimal reliance on debt financing, which is a positive aspect. However, the return on equity is negative due to consistent net losses, which could be a concern. The equity ratio stands at 78.2% for the TTM, suggesting a strong equity base relative to assets.40
Negative
Cash Flow
IZEA Worldwide's free cash flow has deteriorated significantly over the TTM, showing a negative growth trend. The operating cash flow to net income ratio is negative, indicating cash flow challenges relative to net losses. The company needs to improve its cash generation capabilities to support long-term operations.28
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 33.77M | 36.21M | 41.10M | 30.02M | 18.33M | 18.96M | Gross Profit |
| 14.13M | 14.59M | 16.36M | 15.56M | 10.33M | 10.43M | EBIT |
| -18.49M | -9.73M | -5.63M | -5.36M | -5.93M | -7.17M | EBITDA |
| -15.09M | -6.63M | -3.64M | -2.03M | -8.79M | -5.31M | Net Income Common Stockholders |
| -15.76M | -7.35M | -3.31M | -5.41M | -10.36M | -7.64M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.97M | 54.57M | 40.71M | 75.43M | 33.05M | 5.88M | Total Assets |
| 22.92M | 79.45M | 85.67M | 90.80M | 44.75M | 23.94M | Total Debt |
| 1.53M | 122.81K | 105.03K | 42.07K | 1.98M | 129.48K | Net Debt |
| -442.12K | -37.32M | -24.50M | -75.39M | -31.06M | -5.76M | Total Liabilities |
| 15.70M | 14.14M | 15.41M | 15.97M | 12.97M | 10.23M | Stockholders Equity |
| 7.22M | 65.31M | 70.27M | 74.83M | 31.79M | 13.72M |
| Cash Flow | Free Cash Flow | ||||
| -8.11M | -4.96M | -4.61M | -2.85M | -2.48M | -3.58M | Operating Cash Flow |
| -7.81M | -4.83M | -3.06M | -2.57M | -2.10M | -2.91M | Investing Cash Flow |
| 19.06M | 18.82M | -47.70M | -26.17K | -354.41K | -687.98K | Financing Cash Flow |
| -509.95K | -1.14M | -76.32K | 44.98M | 29.61M | 7.51M |
IZEA Worldwide Technical Analysis
Negative
2.11
Price Trends
2.43
Negative
2.54
Negative
2.47
Negative
Market Momentum
-0.10
Positive
37.12
Neutral
21.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IZEA, the sentiment is Negative. The current price of 2.11 is below the 20-day moving average (MA) of 2.22, below the 50-day MA of 2.43, and below the 200-day MA of 2.47, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 37.12 is Neutral, neither overbought nor oversold. The STOCH value of 21.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IZEA.
IZEA Worldwide Risk Analysis
IZEA Worldwide disclosed 38 risk factors in its most recent earnings report. IZEA Worldwide reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IZEA Worldwide Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $1.79B | 8.62 | 45.08% | ― | 11.64% | 363.49% | |
66 Neutral | $27.71B | 71.56 | 15.37% | ― | 25.63% | 118.49% | |
63 Neutral | $873.67M | 51.63 | 5.08% | ― | 8.33% | 436.49% | |
61 Neutral | $781.68M | ― | -18.61% | ― | 4.11% | -935.85% | |
59 Neutral | $27.96B | 0.79 | -25.77% | 4.12% | 2.19% | -45.44% | |
53 Neutral | $131.41M | ― | -24.55% | ― | ― | ― | |
39 Underperform | $35.69M | ― | -33.05% | ― | -6.51% | -117.84% |
* Communication Services Sector Average
Performance Comparison
IZEA
IZEA Worldwide
2.11
-0.07
-3.21%
CMCM
Cheetah Mobile
4.38
1.43
48.47%
TTD
Trade Desk
55.85
-31.46
-36.03%
YEXT
Yext
6.18
0.24
4.04%
UPWK
Upwork
13.21
1.00
8.19%
FVRR
Fiverr International
24.33
3.52
16.91%
IZEA Worldwide Earnings Call Summary
Earnings Call Date: Mar 27, 2025 | % Change Since: 1.44% | Next Earnings Date: May 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant growth in Managed Services and successful cost reduction measures, indicating positive operational adjustments and strategic focus. However, overall revenue declined slightly year-over-year, and net losses increased, driven by one-time charges and strategic restructuring. Despite these challenges, the company has positioned itself for improved profitability moving forward.Highlights
Managed Services Revenue Growth
Excluding revenues from divested Hoozu and a non-recurring customer, Managed Services revenue grew 16.3% in 2024 and 21.9% in Q4 2024 over the prior year period.
Successful Cost Reduction Measures
Implemented workforce reductions and cost-cutting measures resulted in $3.9 million in annualized personnel cost savings and $1.2 million in contract labor savings.
Strong Q4 Revenue Growth
Total Q4 2024 revenue was approximately $11 million, a 23.7% increase over the prior year quarter.
Increased Managed Services Bookings
Managed Services bookings grew 45% to $11 million in Q4 2024 compared to the prior year's fourth quarter, excluding Hoozu in both periods.
Strategic Business Focus and Leadership Changes
New strategic direction focusing on America-first, simplifying product experience, and reorganized leadership with new CEO and increased share buyback commitment to $10 million.
Lowlights
Overall Revenue Decline
Revenues for 2024 totaled $35.9 million, declining slightly by 1% from $36.2 million in 2023.
Increased Net Loss
Net loss for 2024 was $18.9 million, compared to $7.4 million in 2023, influenced by one-time charges and strategic actions.
Higher Expenses in Q4
Expenses other than the cost of revenue totaled $7.3 million in Q4 2024, up 15.3% from the prior year quarter, including one-time adjustments.
Negative Adjusted EBITDA
Adjusted EBITDA was negative $1.5 million in Q4 2024, compared to negative $1.1 million for the prior year quarter.
Company Guidance
During the IZEA Worldwide, Inc. fourth quarter 2024 earnings call, significant emphasis was placed on strategic measures to enhance financial performance and streamline operations. The company reported a modest decline in annual revenues to $35.9 million, down 1% from 2023, primarily due to divesting non-profitable ventures like Hoozu and parting ways with a non-recurring customer. Despite these changes, Managed Services revenue grew by 16.3% when adjusted for these factors. Cost-cutting initiatives, including a 21% reduction in total personnel expenses and a decrease in contract labor, are expected to reduce cash burn and improve profitability. The fourth quarter saw a 23.7% increase in total revenue to approximately $11 million, driven by a 24% growth in Managed Services revenue. IZEA ended the year with $51.1 million in cash and investments, while implementing a $10 million share buyback program as a testament to their confidence in future growth. The company also reported a net loss of $18.9 million for the year due to strategic restructuring, but highlighted a positive outlook for 2025 with plans to focus on high-growth markets, simplify product offerings, and enhance customer experience.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.