Record Gross Profit, up 39% Year Over Year
ORLANDO, FL – IZEA, Inc. (OTCQB: IZEA), the leader in Social Sponsorship, today announced record results for its second quarter ending June 30, 2014.
Second Quarter 2014 Financial Highlights:
- Bookings reached a record $2.57 million in Q2 2014, up from $1.84 million in Q2 2013 — the highest amount in the history of the company.
- Revenue increased 14.8% to a record $1.97 million during Q2 2014 compared to Q2 2013.
- Gross profit margin for the quarter was 67%, up from 55% during the same period in 2013.
- Gross profit for the quarter grew 39% to $1.31 million, up from $0.94 in Q2 2013.
- New opportunity pipeline, a representation of new client proposals generated within the quarter, grew to $12.8 million, up from $8.9 million in Q2 2013, an increase of 44%.
Second Quarter Operational Highlights:
- 68 full time team members; added 8 net new staff in client services and 2 in engineering in Q2.
- 66,000 registered users in IZEAx — up from 50,000 in Q1 2014, an increase of 32%.
- IZEAx aggregate network reach grew from 392 million to 530 million during the quarter, an increase of 35%.
- Four new IZEAx partners, including one of the top 10 global media companies and Fullscreen.
“We had record bookings and gross profit in Q2, largely fueled by the tenured members of our sales team generating more repeat business and receiving larger campaign budgets from our managed clients,” said Ted Murphy, IZEA’s Chairman and Chief Executive Officer. “I am enthusiastic about our prospects for the second half of this year and beyond. We are actively onboarding and training our new IZEAx partners, growing our internal sales and development team and transitioning our business operations to the IZEAx technology platform.”
During the quarter, the Company initiated campaigns on behalf of brands such as Bacardi, Unilever, Walmart, ConAgra Foods, Bloomin’ Brands, adidas, Clorox, Hollister, Kimberly Clark and Scott’s, as well as the world’s leading agencies including Starcom MediaVest, Ketchum, MEC, Crispin Porter + Bogusky and Horizon Media. IZEA also gained preferred vendor status with one of the world’s top-five consumer package goods companies along with preferred partner status at one of the nation’s top media buying agencies.
“IZEA is growing our relationships with the world’s leading brands and the agencies that support them,” said Murphy. “We are pleased to see Social Sponsorship adoption and awareness increasing, with IZEA at the very center of the industry we created in 2006.”
Second Quarter 2014 Results
Revenue for the second quarter of 2014 was $1,969,235 compared to $1,715,273 for the first quarter of 2013, an increase of 14.8%. Gross profit for the quarter was $1,312,579, up from $944,372 during the same period in 2013, an increase of 39.0%. Operating expenses for the quarter ended June 30, 2014 were $2,519,797, compared to $1,479,659 in the same period in 2013, due to investments in sales, marketing and engineering.
Net income for the quarter was $2,029,135 compared to a net loss of $(893,470) during the same period last year, primarily due to a $3,239,610 gain on the change in the fair value of derivatives. Operating EBITDA was $(932,344) for the quarter compared to $(321,344) during the same period of last year, primarily due to investments in marketing and new hires.
Basic and diluted income per common share were $.04 and $.03 for the first quarter of 2014, respectively, compared to basic and diluted loss per common share of $(.12) for the second quarter of 2013.
Investor Conference Call
The Company will host a conference call today at 4:30pm ET, during which IZEA management will discuss the financial results and be available to answer any questions from the investment community.
Toll-Free (Domestic): (888) 364-3109
International (Toll): (719) 457-1512
Webcast Link: http://public.viavid.com/index.php?id=110559
Electronic replay of the conference call will be available through August 20, 2014 by dialing (877) 870-5176 and entering PIN number 9783185. IZEA will also post a downloadable file onto the Investor Relations area of http://corp.izea.com.
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