Influencer marketing firm IZEA's Q3 revenue falls

IZEA Worldwide Inc reported a decline in Q3 revenue to $8.1 million from $8.8 million year-over-year, with a net income of $0.1 million compared to an $8.8 million loss last year. The company reduced costs by 54% and improved adjusted EBITDA to $0.4 million. IZEA is focusing on high-growth enterprise accounts and investing in AI features to enhance campaign performance. The stock has a "strong buy" rating, with a 12-month price target of $10.00, reflecting a potential 47% increase from its recent price of $5.30.

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Overview

IZEA Worldwide Inc Q3 revenue declined to $8.1 mln vs $8.8 mln year ago
Net income for Q3 was $0.1 mln, compared to a $8.8 mln loss last year
Adjusted EBITDA improved to $0.4 mln
Company reduced costs by 54%, focusing on profitable, recurring accounts

Outlook

Company focuses on recurring, high-growth enterprise accounts for sustainable growth
IZEA invests in AI-powered features to enhance client campaign performance
Company sees double- and triple-digit growth among enterprise accounts

Result Drivers

MANAGED SERVICES REVENUE - Managed Services revenue increased 5% due to focus on larger, recurring accounts
COST REDUCTIONS - Total costs and expenses declined 54%, contributing to profitability
NEW BUSINESS WINS - Secured new business from Amazon, General Motors, and others, supporting growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $8.1 mln $10 mln

Revenue (1

Analyst)

Q3 EPS $0.01

Q3 Net $100,000 $1.72

Income mln (1

Analyst)

Q3 $400,000 $1.70

Adjusted mln (1

EBITDA Analyst)

Q3 Cash $51.4

& mln

Investme

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Analyst Coverage

The one available analyst rating on the shares is “strong buy”
The average consensus recommendation for the online services peer group is “buy.”
Wall Street’s median 12-month price target for IZEA Worldwide Inc is $10.00, about 47% above its November 11 closing price of $5.30
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)