Orlando, FL (July 10, 2017) – IZEA, Inc. (NASDAQ: IZEA), operator of IZEAx, the premier online marketplace connecting brands and publishers with influential content creators, reported bookings of $6.6 million for the second quarter of 2017, down 3% from $6.8 million in the same year-ago quarter. The bookings number accounts for a previously announced $1 million client budget reduction against a 2016 booking.
Bookings is a measure of gross 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 Q2, may be recognized over twelve months from the original booking date.
“While we absorbed a large cancellation from a 2016 booking this quarter, we saw continued strength in our managed services sales in Q2, with a strong surge in custom content demand in particular,” said Ted Murphy, IZEA’s Chairman and CEO. “Exclusive of the $1 million reduction due to the client’s budget cuts, gross bookings for managed services increased 24% year over year. In addition to strong sales, we have seen a meaningful improvement in operational efficiency and expect to report an improved EBIDTA vs. Q2 last year.”
The company reiterates its 2017 revenue guidance of $29-$30 million, with gross margins expected to range between 47% to 48%.
The company plans to provide financial results for the second quarter on August 10, 2017.