Gross Profit Margin Increases to a Record 57%
Orlando, Fla. (April 1, 2013) – IZEA, Inc. (IZEA:OTCQB), the pioneer of Social Media Sponsorship, today announced results for both the fourth quarter and fiscal year of 2012. Revenues for the fiscal year ended December 31, 2012, were $4,954,239, an increase of $607,004, or 14% compared to the same period in 2011.
Gross profit for 2012 increased by $408,196, or 17%, compared to the same period in 2011. The Company’s gross profit margin increased to 57% in 2012, up from 55% for the same period in 2011. This increase was attributable to improved internal campaign management of the Company’s advertiser accounts, which generate a higher profit than accounts managed directly by advertisers.
“The Company continues to grow its top line while remaining focused on the bottom line,” said Ted Murphy, IZEA’s founder and chief executive officer. “Throughout 2012, we retooled our sales organization, reduced operational expenses and refocused our efforts on our core technology platforms. While we achieved record revenues and gross profit margin in 2012, many of the improvements and operational efficiencies we put in place are just starting to be realized in 2013.”
IZEA’s operating expenses for the fiscal year ended December 31, 2012 increased by $586,864, or 8.8%, to $7,269,316, resulting in a net loss of $4,672,638 for the year. The increase was primarily attributable to increased payroll expenses, professional fees, costs of being a public company and increases in sales and marketing expenses, primarily promotional marketing expenses, offset by a decrease in investor relations fees.
“We continue to see growth in demand for Social Media Sponsorship through increased rates of recurring business and larger sales opportunities,” said Mr. Murphy. “Our robust suite of technology platforms, combined with our cost-saving initiatives, have positioned IZEA for significant shareholder value improvement and another record year in 2013.”
The Company will hold a conference call on Tuesday, April 2, 2013 at 2:00 p.m. Eastern time (11:00 a.m. Pacific). Ted Murphy, Chief Executive Officer, Ryan Schram, Chief Operating Officer, and Donna Mackenzie, Chief Financial Officer, will be participating in the call and will be available during the question-and-answer session.
To participate in the call, please dial (877) 941-1427, or (480) 629-9664 for international calls, approximately 10 minutes prior to the scheduled start time. The conference ID for the call is 4609035.
A replay of the call will be available for two weeks from 5:00 p.m. ET on April 2, 2013, until 11:59 p.m. ET on April 16, 2013. The number for the replay is (877) 870-5176, or (858) 384-5517 for international calls; the passcode for the replay is 4609035.
