Orlando, FL (April 6, 2017) – IZEA, Inc. (NASDAQ: IZEA), operator of IZEAx, the premier online marketplace connecting brands and publishers with influential content creators, reported bookings of $7.8 million for the first quarter of 2017, up 5% from $7.4 million in the same year-ago quarter.
Bookings is a measure of sales orders minus any cancellations or refunds in a given period. Management uses bookings as a leading indicator of future revenue recognition as revenue is typically recognized within 90-120 days of booking. However, larger contracts, such as some of those booked in Q1, may be recognized over twelve months from the original booking date.
“We continue to see a pattern of increasing average deal size with our clients, particularly when dealing brand direct,” said Ted Murphy, IZEA’s Chairman and CEO. “In Q1, our managed services average deal size was 11% greater than our annual average in 2016. This ongoing march towards brand direct relationships and larger commitments is positive, but does impact the length of time it takes to get through contracting. We were effected by some contracting delays in Q1, but these bookings should be realized in early Q2 and our outlook for 2017 remains strong and intact.”
The company expects revenue in 2017 to increase to $32-$33 million compared to $27.3 million in 2016. Gross margins are expected to range between 47% to 48% compared to 48% in 2016.
The company plans to provide financial results for the first quarter on May 10, 2017.