Company Reports First Adjusted EBITDA Positive Month, Driven by Profit Margin Improvement
ORLANDO, FL (October 6, 2016) – IZEA, Inc. (NASDAQ: IZEA), operator of IZEAx, the premier online marketplace connecting brands and publishers with influential content creators, reported record bookings for the third quarter of 2016 of $7.7 million, up 14% from $6.7 million in the same year-ago quarter.
In addition to record bookings, IZEA has achieved its first positive adjusted EBITDA month during the quarter, a significant milestone for the company. Results were driven by strong year-over-year margin improvements in both Sponsored Social and Content, as well as aggressive management of operating expenses.
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“We believe it is important for us to always have a sightline to profitability given the macro economic climate,” said Ted Murphy, IZEA’s Chairman and CEO. “Over the past six months, we have shifted some of our focus to reducing burn, optimizing operations, and bringing parity to the custom content unit gross margin. The dramatic impact of those efforts gives us additional confidence in our baseline model and supports the ongoing investment in the technology and people that give us operational leverage. As we look forward, our intent is to place growth ahead of near-term profitability, while tapering our losses over time. This market is large and growing and IZEA is well positioned for continued expansion.”
IZEA’s trailing 12-month bookings from Q3 2016 was $29.1 million, up 48% from $19.7 million in the same trailing year-ago period. The company plans to provide full financial results for the third quarter of 2016 on November 14, 2016.
