IZEA - IZEA dips 4.4% even after double-digit Q4 revenue gain
IZEA Worldwide (IZEA) has dropped 4.3% postmarket following fourth-quarter earnings where revenue rose by double digits and topped expectations, and the company trimmed losses but faced challenges in software-as-a-service. Overall revenue grew 10% to $6.4M. But EPS of -$0.02 was in line with expectations. Revenue from Managed Services rose 17% to $5.9M, while SaaS revenues fell 34% mainly on lower gross billings, and margins were impacted there due to competitive pricing. “As we expected, revenue from our SaaS Services was challenged in the 4th quarter as we continued to transition through our new pricing model,” CEO Ted Murphy says. “The acquisition of new enterprise IZEAx customers in 2020 was slow through Q3, and many of our existing customers churned or reduced their marketplace spend as the pandemic hit." EBITDA improved to -$0.5M from a year-ago -$1.3M. The company ended the quarter with $33M in cash, and has subsequentlyo raised $34.3M
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IZEA dips 4.4% even after double-digit Q4 revenue gain