IZEA Worldwide Q3 revenue falls 23% on SMB decline
IZEA•IZEA Worldwide's third-quarter revenue fell 23% year over year to $6.2 million, with a net loss of $443,940 and adjusted EBITDA of negative $213,017. The company expects fourth-quarter revenue of $7.5 million to $8.1 million.
1. Third-quarter results
IZEA Worldwide reported third-quarter revenue of $6.2 million, down 23% year over year, and a net loss of $443,940. Adjusted EBITDA was negative $213,017, compared with a profit a year earlier.
2. Revenue drivers
The decline was mainly due to the continued run-off of non-core small and medium-sized business customers, which contributed $1.2 million in the prior-year period. Revenue from the top three enterprise customers grew 21%, but lower revenue from other established enterprise accounts outweighed that increase. Managed services bookings rose 94% year over year.
3. Fourth-quarter outlook
IZEA expects fourth-quarter revenue of $7.5 million to $8.1 million, reflecting contracted bookings and expected campaign timing. The company said it does not plan to provide regular financial guidance or update this outlook. Total costs and expenses fell 16% year over year, driven by reduced headcount and lower incentive compensation.
