Orlando, Florida (July 7, 2021) – IZEA Worldwide, Inc. (NASDAQ: IZEA), the premier provider of influencer marketing technology, data, and services for the world’s leading brands, announced today that it has set a Managed Services bookings record for the best quarter in company history. Managed Services bookings in Q2 of 2021 increased 187% to $11.1 million as compared to Q2 of 2020, which were $3.9 million. IZEA added a variety of new influencer marketing customers within the quarter, including multiple Fortune 500 brands. IZEA also saw strong repeat business from existing customers, including three Fortune 10 companies. The announcement comes just one quarter after IZEA set a record for its best Q1 Managed Services bookings ever, which were $6.4 million.
“Team IZEA has been laser focused on customer growth and we are seeing the direct results of investments made throughout the organization,” said Ted Murphy, IZEA’s Chairman and CEO. “Our commitment to providing the best technology and customer experience is being rewarded with repeat business from existing customers as well as material wins from major brands we have long sought after.”
“Our total active software customer base reached record numbers in Q2 and have more than doubled since June of last year,” continued Murphy. “We added multiple leading brands as software customers including the world’s largest CPG company, and many challenger brands and agencies as well. Software customer counts were largely driven by IZEAx Discovery, our powerful and affordable influencer discovery tool. We are still in the middle of our SaaS pricing transition with openly published lower fees for all our customers to offer industry-leading cost-to-value. Our aggressive pricing changes for Unity Suite went into effect at the end of Q3 of 2020 and we are nearly through all of those adjustments for existing customers.”
Bookings are a measure of all sales orders minus any known cancellations or refunds in the same time period with respect to such sales orders or refunds. Management uses bookings to inform expectations of total sales activity. Bookings are not always an indicator of revenue for the quarter and could be subject to future adjustment. Revenue from Managed Services bookings are typically recognized over a 9-month period on average, though larger contracts may be recognized over longer periods of time. IZEA recognizes Managed Services revenue based on a percentage of completion.
IZEA’s net income and cash flow results will be announced along with the rest of the company’s financial performance when it announces Q2 earnings, which is tentatively scheduled for August 12, 2021. IZEA’s Managed Services bookings represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors – including the amount of revenue recognized within the quarter, the cost of sales, and other operating expenses.