Company Sees First New Contracts Awarded Since COVID-19 Outbreak Began
Orlando, Florida (June 9, 2020) – 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 received renewed commitments from two global retailers on Monday. One retailer is a Fortune 500 company, the other a Fortune 10 company. Both commitments mark the first time IZEA has seen spending from these customers since COVID-19 began to disrupt the economy and global supply chain.
“IZEA has enjoyed long-term relationships with these retail customers, providing both custom content for their e-commerce sites and influencer marketing services,” said Ted Murphy, IZEA’s Chairman and CEO. “We saw new contractual commitments from both parties in every quarter last year, but IZEA did not receive contracts for new initiatives in Q1 2020 from either customer. We are excited to see both organizations reactivate their marketing efforts and sign new contracts with IZEA to begin spending again.”
IZEA previously announced that it had been awarded two contracts from different customers, totaling $1 million, which were both signed on Monday, May 18th. The company subsequently indicated that it believes that bookings for its managed services business in Q2 2020 will grow year over year despite the challenges created by COVID-19.
“As the global economy begins to open up, we are seeing new commitments from customers come in meaningful waves,” continued Murphy. “Different sectors have been impacted by, and reacted to, COVID-19 in a variety of ways, with some pausing spending and some getting more aggressive in their advertising efforts. We take it as a positive sign that both of these retailers entered into new campaign agreements on the same day, and we believe that there is likely some correlation with how their businesses have been impacted by the pandemic, as well as their macroeconomic outlook. Given the size of these retail organizations, we view a return to spending as a leading positive indicator for the trickle-down effects on those companies who manufacture and sell products through these organizations.”