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IZEA Worldwide, Inc. (IZEA)
:IZEA
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IZEA Worldwide
(NASDAQ:IZEA)
Rating:52Neutral
Price Target:
$2.50
▼(-2.34%Downside)
IZEA Worldwide (IZEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.82M
Dividend YieldN/A
Average Volume (3M)44.24K
Price to Earnings (P/E)―
Beta (1Y)1.03
Revenue Growth7.16%
EPS Growth-90.90%
CountryUS
Employees110
SectorCommunication Services
Sector Strength90
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.01
Shares Outstanding16,926,102
10 Day Avg. Volume32,130
30 Day Avg. Volume44,236
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)0.48
Price to Sales (P/S)0.00
P/FCF Ratio-7.32
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit0.02
Enterprise Value/Ebitda>-0.01
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. is a marketing technology company that focuses on the creation and distribution of sponsored content across social media platforms. It operates within the influencer marketing sector, providing a platform that connects influencers and content creators with brands seeking to reach target audiences. The company offers end-to-end management services for influencer marketing campaigns, assisting brands in leveraging the power of social media to enhance their marketing efforts.
How the Company Makes MoneyIZEA Worldwide makes money primarily through its online platform that facilitates sponsored social media content and influencer marketing campaigns. The company earns revenue by charging fees for access to its platform, which allows brands to connect with influencers and manage campaigns. Additionally, IZEA generates income through managed services fees, where it provides comprehensive campaign management to clients. The company's revenue streams are bolstered by strategic partnerships with major brands and social media platforms, enabling them to expand their reach and influence within the digital marketing space.
IZEA Worldwide Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 11.79%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive trend towards profitability with significant revenue growth, cost reductions, and strategic refocusing efforts. The company showed improved financial metrics and maintained a strong cash position. However, challenges remain with declining SaaS revenue and managed services bookings.Q1-2025 Updates
Positive Updates
Significant Revenue Growth
Total revenue for Q1 2025 was approximately $8 million, a 14.6% increase over the prior year quarter. Managed services revenue grew by 18.1% over the prior year quarter.
Cost Reductions and Improved Financial Metrics
Expenses other than the cost of revenue declined by 40% from $7 million to $4.2 million year-over-year. Sales and marketing costs decreased by 63.3%, and general and administrative costs reduced by 22.3%.
Near Break-even and Positive Cash Flow
Net loss in Q1 2025 was $142,800, a significant improvement from the $3.3 million loss in Q1 2024. Adjusted EBITDA improved from negative $3.4 million to negative $76,850, and the company generated positive cash flow from operations.
Strategic Refocus and Operational Achievements
The company exited international markets to focus on the U.S., redesigned its organizational structure, and won business from prominent clients like Nestle and Jeep.
Strong Cash Position and No Debt
As of March 31, 2025, the company had $52.2 million in cash and investments, an increase of $1.1 million, with no debt on the balance sheet.
Negative Updates
Decline in SaaS Revenue
SaaS revenue decreased significantly to $60,953 in Q1 2025 from $256,341 in Q1 2024 due to reduced marketing support and a strategic shift.
Decrease in Managed Services Bookings
Managed services bookings declined to $7.5 million from $9.3 million in the prior year's first quarter, impacted by contract timing differences.
Company Guidance
During the IZEA Worldwide First Quarter 2025 earnings call, key metrics and financial guidance were discussed. The company reported a total revenue of approximately $8 million, reflecting a 14.6% increase from the prior year quarter. Managed services revenue grew by 18.1%, while managed services bookings declined to $7.5 million due to contract timing differences. SaaS revenue decreased significantly, reflecting a strategic shift in marketing support. The cost of revenue was $4.4 million, or 55.2% of revenue, indicating an improved margin compared to the prior year. Expenses excluding the cost of revenue dropped by 40% to $4.2 million, driven by targeted workforce reductions and lower marketing costs. IZEA reported a net loss of $142,800, a significant improvement from the $3.3 million loss in the previous year. Adjusted EBITDA was negative $76,850, compared to negative $3.4 million the prior year. The company ended the quarter with $52.2 million in cash and investments, and no debt, positioning it well for organic growth and potential acquisitions. Additionally, they announced a tender offer to repurchase $8.7 million of their stock as part of their $10 million buyback program, demonstrating confidence in their undervalued shares.IZEA Worldwide Financial Statement Overview
Summary
IZEA Worldwide faces significant challenges in profitability and cash generation. Despite strong equity and low leverage, operational inefficiencies and stagnant revenue growth weigh heavily on its financial health. Improvements in cash flow are positive, but sustained profitability and revenue growth are crucial for a healthier financial outlook.Income Statement
IZEA Worldwide's income statement reveals a challenging financial situation with declining profitability. The TTM Gross Profit Margin stands at 41.36%, indicating a reasonable cost management. However, the company struggles with negative EBIT and EBITDA margins, highlighting operational inefficiencies. Net Profit Margin is also negative at -42.63%, due to persisting losses. Revenue growth is minimal at 2.83% from the previous year, suggesting a stagnant growth trajectory.35
Negative
Balance Sheet
The balance sheet shows a solid equity base with an Equity Ratio of 81.32%, indicating strong financial stability. The Debt-to-Equity Ratio is low at 0.001, suggesting minimal leverage and a conservative approach to debt. However, the Return on Equity is negative due to persistent losses, which is a significant weakness.55
Neutral
Cash Flow
Cash flow analysis reveals a negative Free Cash Flow, though there's noticeable improvement with Free Cash Flow growth of 42.89% in the TTM. Operating Cash Flow remains negative, which is concerning, but the Free Cash Flow to Net Income Ratio is 0.45, indicating some level of efficiency in cash conversion.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 36.90M | 35.88M | 36.21M | 41.10M | 30.02M | 18.33M |
| Gross Profit | 15.26M | 14.68M | 14.59M | 16.36M | 15.56M | 10.33M |
| EBITDA | -14.98M | -18.08M | -6.63M | -3.64M | -2.03M | -8.79M |
| Net Income | -15.73M | -18.85M | -7.35M | -3.31M | -5.41M | -10.36M |
Balance Sheet | ||||||
| Total Assets | 59.34M | 62.22M | 79.45M | 85.67M | 90.80M | 44.75M |
| Cash, Cash Equivalents and Short-Term Investments | 52.18M | 51.07M | 54.57M | 40.71M | 75.43M | 33.05M |
| Total Debt | 48.57K | 63.42K | 122.81K | 105.03K | 42.07K | 1.98M |
| Total Liabilities | 11.07M | 13.44M | 14.14M | 15.41M | 15.97M | 12.97M |
| Stockholders Equity | 48.27M | 48.78M | 65.31M | 70.27M | 74.83M | 31.79M |
Cash Flow | ||||||
| Free Cash Flow | -7.04M | -12.32M | -4.96M | -4.61M | -2.85M | -2.48M |
| Operating Cash Flow | -6.11M | -11.46M | -4.83M | -3.06M | -2.57M | -2.10M |
| Investing Cash Flow | 19.52M | 19.78M | 18.82M | -47.70M | -26.17K | -354.41K |
| Financing Cash Flow | -1.68M | -1.10M | -1.14M | -76.32K | 44.98M | 29.61M |
IZEA Worldwide Technical Analysis
Positive
2.56
Price Trends
2.53
Positive
2.37
Positive
2.50
Positive
Market Momentum
-0.03
Positive
43.58
Neutral
13.41
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IZEA, the sentiment is Positive. The current price of 2.56 is below the 20-day moving average (MA) of 2.72, above the 50-day MA of 2.53, and above the 200-day MA of 2.50, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.58 is Neutral, neither overbought nor oversold. The STOCH value of 13.41 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $53.44M | ― | -6.29% | ― | 1.27% | 78.96% | |
57 Neutral | kr14.36B | 3.31 | 16.68% | 6.49% | -7.67% | 47.50% | |
56 Neutral | $37.76M | ― | -48.12% | ― | 345.36% | -650.95% | |
52 Neutral | $42.82M | ― | -28.40% | ― | 7.16% | -90.90% | |
48 Neutral | $25.08M | ― | -29.17% | ― | -3.17% | 13.15% | |
42 Neutral | $28.79M | ― | -130.56% | ― | -26.11% | 57.68% |
* Communication Services Sector Average
Performance Comparison
IZEA
IZEA Worldwide
2.56
0.34
15.32%
SCOR
comScore
5.22
-7.46
-58.83%
ZDGE
Zedge
4.02
0.90
28.85%
MNY
MoneyHero Limited
1.03
-0.81
-44.02%
BODI
Beachbody Company
4.26
-3.95
-48.11%
IZEA Worldwide Corporate Events
Stock Buyback
IZEA Worldwide Announces New Share Repurchase Agreement
Positive
Jun 18, 2025
On June 16, 2025, IZEA Worldwide, Inc. entered into an agreement with Ladenburg Thalmann & Co. Inc. to authorize the purchase of up to $8.6 million of its common stock as part of its ongoing share repurchase program. This initiative, set to commence on July 16, 2025, aims to enhance shareholder value and is conducted under the safe harbor provisions of the Securities Exchange Act, with purchases dependent on market conditions and executed through open market or privately negotiated transactions.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.