IZEA Worldwide, Inc.
For the period ended Jun 30, 2025. Filed Aug 12, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 12, 2025
IZEA$2.22+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-13.
0001495231-25-000102
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001495231-25-000156
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 106 previous paragraphs and 105 current paragraphs.
69 unchanged; 15 reworded; 19 added; 22 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (19)
Current report
Revenue during the three months ended June 30, 2025 was essentially flat compared to the prior year’s quarter. The three months ended June 30, 2024 total included $0.8 million of revenue from Hoozu that was divested in December 2024. Excluding $0.8 million in revenue from Hoozu, revenue grew 10.5% during the quarter ended June 30, 2025. Revenue from ongoing customers increased quarter-over-quarter due to higher spend from several of our larger existing customers and the addition of new customers.
Current report
For the three months ended June 30, 2025, the cost of revenue declined by 0.8 million compared to the same period in the prior year, primarily due to the absence of costs related to Hoozu, which was included in the prior year period. Excluding Hoozu, the cost of revenue remained relatively consistent year-over-year.
Current report
Interest expense totaled $1,784 during the three months ended June 30, 2025, compared to $1,999 in the prior year period.
Current report
Net Income (Loss)
Current report
Results of Operations for the Six Months Ended June 30, 2025 and 2024
Current report
Revenue
Current report
For the six months ended June 30, 2025, the cost of revenue declined by $0.4 million compared to the same period in the prior year, primarily due to the absence of costs related to Hoozu, which was included in the prior year period. Excluding Hoozu, the cost of revenue increased by 1% year-over-year.
Current report
Sales and marketing expense for the six months ended June 30, 2025, decreased by $4.2 million, or approximately
Current report
Depreciation and amortization expense for the six months ended June 30, 2025, decreased by $120,340, or approximately 28%, compared to the same period in 2024. Depreciation expense on property and equipment was approximately $44,684 and $53,258 for the six months ended June 30, 2025, and 2024. Amortization expense was approximately $264,910 and $376,676 for the six months ended June 30, 2025 and 2024, respectively. Amortization expense related to internal-use software development costs was $264,910 and $252,686 for the six months ended June 30, 2025 and 2024, respectively. The Company did not have any amortization expense related to acquired intangible assets for the six months ended June 30, 2025. The Company recognized $123,990 amortization expense related to acquired intangible assets for the six months ended June 30, 2024.
Current report
Interest expense totaled $3,438 during the six months ended June 30, 2025, compared to $4,000 in the prior year period.
Current report
Other income, net totaled $1.0 million for the six months ended June 30, 2025, compared to $1.3 million in the prior year period, reflecting interest earned on portfolio investments.
Current report
Net Income (Loss) from Operations
Current report
Net income (loss) from operations for the six months ended June 30, 2025 was $1.1 million, a $6.5 million increase from the net loss of $5.5 million for the same period in 2024. The increase in net income was primarily the result of decreased operating costs in the current year period.
Current report
Revenue from ongoing customers grew 16.2% in the first six months of 2025 compared to the prior-year period. Contract backlog declined from $15.5 million at the start of the year to $11.6 million as of June 30, 2025, reflecting slower contract bookings during the period. Net bookings totaled $13.1 million for the six months ended June 30, 2025, down $5.4 million, or 29%, from the prior year. We believe several factors drove the decline in backlog:
Current report
•a strategic shift toward larger, more profitable recurring accounts and away from smaller, less economic projects;
Current report
•cautious marketing spend among some enterprise and agency clients due to broader economic uncertainty, including tariffs; and
Current report
•reduced internal resource allocation during our organizational transition.
Current report
We implemented significant cost savings beginning in December 2024 and continuing into early 2025 to better align operating expenses with anticipated revenue and accelerate our path to profitability. This is demonstrated in part by our profitability during the first half of 2025. We have a strong and growing pipeline that we believe will support profitable growth over the next twelve months. While we expect revenue to grow over time, such growth may not occur consistently each quarter. We anticipate that operating expenses will increase gradually to support this growth; however, we believe our current cost structure is better aligned to scale efficiently, limiting the recurrence of historical cash losses and reducing the strain on working capital as we expand our business.
Current report
We believe our cash and cash equivalents are sufficient to fund growth initiatives over the next twelve months. If additional capital is needed, we expect to obtain it primarily through equity, equity-linked, or debt financing unless and until our operations generate sufficient profitability to meet ongoing capital requirements.
Removed paragraphs (22)
Previous report
On IZEA.com, the Company offers a dynamic environment where creators can showcase their work to marketers, and marketers can directly engage and hire influencers, simplifying the collaboration process. This platform, alongside the innovative use of generative AI tools in FormAI, underscores IZEA's commitment to facilitating content creation and enhancing the efficiency of digital marketing strategies.
Previous report
Cost of Revenue
Previous report
Sales and Marketing
Previous report
General and Administrative
Previous report
Depreciation and Amortization
Previous report
Other Income (Expense)
Previous report
The following table illustrates our revenue by type, the percentage of total revenue by type, and the change between the periods:
Previous report
SaaS Services revenue is generated by the self-service use of our technology platforms by marketers to manage their own content workflow and influencer marketing campaigns. SaaS Service revenue decreased to $60,953 during the three months ended March 31, 2025, compared to $0.3 million in the same period of 2024. The decrease is due to our shift away from SaaS products, including reduced marketing efforts and limited availability for new sign-ups
Previous report
The cost of revenue for the three months ended March 31, 2025 increased by $0.4 million, or approximately 11%, compared to the same period in 2024. The increase is primarily driven by higher costs associated with increased revenues from our recurring customer base this quarter which has a higher mix of lower margin customers.
Previous report
Sales and Marketing
Previous report
General and Administrative
Previous report
Depreciation and Amortization
Previous report
Other Income (Expense)
Previous report
Interest expense totaled $1,654 during the three months ended March 31, 2025, compared to $2,001 in the prior year period.
Previous report
Net Loss
Previous report
Near-Term Liquidity
Previous report
We anticipate that our operating expenses will increase over time to support higher levels of revenue and required working capital financing as we continue to pursue the expansion of our business. We currently believe that we have adequate cash and long-term investments to fund our business growth for the next twelve months; however, should additional capital become necessary, we expect these funds would be financed predominately through proceeds from future equity, equity-based, or debt offerings, unless and until our operations are profitable and sustain our ongoing capital needs.
Previous report
The Company’s Balance Sheet is strong, including $52.2 million in cash and short-term investments and no outstanding debt.
Previous report
Managed Services revenue from ongoing operations increased 27.6% over the prior year quarter. Hoozu, which was divested in December 2024, contributed $0.5 million in revenue in the first quarter of 2024, and $3.4 million in the full year of 2024.
Previous report
Operating cash flows were $2.0 million positive in the current period, including $1.6 million from net working capital changes and $0.4 million in cash income. Cash income was positive, reflecting lower structural human capital and administrative expenses associated with our December 2024 targeted workforce reduction and other cost reduction measures.
Previous report
Our net loss for the first quarter improved $3.1 million compared to the first quarter of 2024, mainly due to cost savings from the reduction in workforce and other restructuring efforts previously disclosed in our Annual Report on Form 10-K. These included exiting unprofitable international operations and reorganizing our go-to-market teams to support driving North American operations.
Previous report
The Company has recorded operational losses to date. Alongside recent management and Board changes, we are conducting a comprehensive analysis of our business and exploring strategic alternatives. The Board of Directors established a Strategic and Capital Allocation Committee to, among other assignments, collaborate with management to review business strategies and formulate a plan to achieve sustainable and consistent profitability.
Reworded paragraphs (15)
Previous wording
•adverse economic or market conditions that may harm our business; including supply-chain issues, labor distribution, business closures, and inflationary pressures;
Current wording
•adverse economic or market conditions that may harm our business; including supply-chain issues, labor distribution, business closures, tariffs, and inflationary pressures;
Previous wording
•the other risks and uncertainties described in the Risk Factors section of this Annual Report.
Current wording
•the other risks and uncertainties described in the Risk Factors section of this Quarterly Report and the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 27, 2025.
Previous wording
We generate revenue primarily from our managed services, when a marketer (typically a brand, agency, or partner) pays us to provide custom content, influencer marketing, amplification, or other campaign management services (“Managed Services”). Additionally, we generate revenue from subscription fees charged to access our software platforms, license and transaction fees from self-service customers, and fees from such as inactivity fees, early cash-out fees, and other miscellaneous fees charged to users of our platforms (collectively, “SaaS Services Revenue”).
Current wording
We generate revenue primarily from our managed services, when a marketer (typically a brand, agency, or partner) pays us to provide custom content, influencer marketing, amplification, or other campaign management services (“Managed Services”).
Previous wording
Sales and marketing expense for the three months ended March 31, 2025 decreased by $1.9 million, or approximately 63%, compared to the same period in 2024. This decrease is primarily due to lower payroll and related costs, following our
Current wording
Sales and marketing expense for the three months ended June 30, 2025 decreased by $2.2 million, or approximately 70%, compared to the same period in 2024. This decrease is primarily due to lower payroll and related costs, following our December 2024 targeted workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.
Previous wording
General and administrative expense for the three months ended March 31, 2025 decreased by $0.8 million, or approximately 22%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 selective workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.
Current wording
General and administrative expense for the three months ended June 30, 2025 decreased by $0.5 million, or approximately 14%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 targeted workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.
Previous wording
Depreciation and amortization expense for the three months ended March 31, 2025 decreased by $43,834, or approximately 21%, compared to the same period in 2024. Depreciation expense on property and equipment was $22,955 and $26,557 for the three months ended March 31, 2025 and 2024, respectively. Amortization expense was $0.1 million and $0.2 million for the three months ended March 31, 2025 and 2024, respectively. Amortization expense related to internal use software developments costs was $0.1 million and $0.1 million for the three months ended March 31, 2025, and 2024, respectively. Depreciation and amortization expense decreased compared to the prior-year quarter primarily due to lower depreciation on computer equipment that became fully depreciated during the first quarter of 2025. Additionally, amortization expense declined due to the absence of expense related to legacy platforms that were sunset in 2024, for which amortization was accelerated in the fourth quarter of 2024.
Current wording
Depreciation and amortization expense for the three months ended June 30, 2025 decreased by $76,506, or approximately 34%, compared to the same period in 2024. Depreciation expense on property and equipment was $21,729 and $26,701 for the three months ended June 30, 2025 and 2024, respectively. Amortization expense was $127,513 and $177,629 for the three months ended June 30, 2025 and 2024, respectively. Depreciation and amortization expense decreased compared to the prior-year quarter primarily due to lower amortization expense due to the absence of expense related to legacy platforms that were sunset in 2024.
Previous wording
Other income, net, totaled $0.5 million during the three months ended March 31, 2025, a decrease of $0.2 million compared to the same period in 2024, primarily from investment portfolio interest income.
Current wording
Other income, net, totaled $0.5 million during the three months ended June 30, 2025, a decrease of $0.2 million compared to the same period in 2024, primarily from lower investment portfolio interest income.
Previous wording
Net loss for the three months ended March 31, 2025 was $0.1 million, compared to the net loss of $3.3 million for the same period in 2024.
Current wording
Net income for the three months ended June 30, 2025 was $1.2 million, compared to the net loss of $2.2 million for the same period in 2024.
Previous wording
Managed Services revenue during the three months ended March 31, 2025 increased by $1.2 million, or 18% from the same period in 2024. Managed Services revenue for the three months ended March 31, 2024 included $0.5 million from Hoozu, which was divested in December 2024. Excluding revenue attributable to Hoozu of $0.5 million in the first quarter of 2024, Managed Services revenue increased to $7.9 million, or 28%, during the quarter ended March 31, 2025. Revenue from on-going customers increased year-over-year due to the addition of new customers in the current quarter and increased spend from one of our larger existing customers.
Current wording
Revenue during the during the six months ended June 30, 2025, increased by $1.1 million, or 7%, from the same period in 2024, which included $1.3 million from Hoozu, which was divested in December 2024. Excluding Hoozu, revenue increased $2.7 million, or 19%, during the six months ended June 30, 2025. Revenue from ongoing customers increased year-over-year due to higher spend from several of our larger existing customers and the addition of new customers.
Previous wording
December 2024 selective workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.
Current wording
67%, compared to the same period in 2024. Advertising expenses decreased due to lower payroll and related costs, following our December 2024 targeted workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.
Previous wording
Managed Services Bookings is a measure of all sales orders received during a time period, less any cancellations received, or refunds given during the same time period. Sales order contracts vary in complexity with each customer and range from custom content delivery to integrated marketing services; our contracts generally run from several months for smaller contracts up to twelve months for larger contracts. We recognize revenue from our Managed Services contracts on a percentage of completion basis as we deliver the content or services over time, which can vary greatly. Historically, bookings have converted to revenues over a 6-month period on average. However, since late 2020, we have received increasingly larger and more complex sales orders, which, in turn, has lengthened the average revenue period to approximately 9-months, with the largest contracts taking longer to complete. During the latter half of 2023, the time between bookings and revenue improved to an average of 7.5 months. For this reason, Managed Services Bookings, while an overall indicator of the health of our business, may not be used to predict quarterly revenues and could be subject to future adjustments. Managed Services Bookings is useful information as it reflects the number of orders received in one period, even though revenue from those orders may be reflected over varying amounts of time. We use the Managed Services Bookings metric to plan operational staffing, to identify key customer group trends to enlighten go-to-market activities, and to inform its product development efforts. Managed Services Bookings for the three months ended March 31, 2025 and 2024 was $7.5 million and $9.3 million, respectively.
Current wording
Managed Services Bookings is a measure of all sales orders received during a time period, less any cancellations received, or refunds given during the same time period. Sales order contracts vary in complexity with each customer and range from custom content delivery to integrated marketing services; our contracts generally run from several months for smaller contracts up to twelve months for larger contracts. We recognize revenue from our Managed Services contracts on a percentage of completion basis as we deliver the content or services over time, which can vary greatly. Historically, bookings have converted to revenues over a 6-month period on average. However, since late 2020, we have received increasingly larger and more complex sales orders, which, in turn, has lengthened the average revenue period to approximately 9-months, with the largest contracts taking longer to complete. During the latter half of 2023, the time between bookings and revenue improved to an average of 7.5 months. For this reason, Managed Services Bookings, while an overall indicator of the health of our business, may not be used to predict quarterly revenues and could be subject to future adjustments. Managed Services Bookings is useful information as it reflects the number of orders received in one period, even though revenue from those orders may be reflected over varying amounts of time. We use the Managed Services Bookings metric to plan operational staffing, to identify key customer group trends to enlighten go-to-market activities, and to inform its product development efforts. Managed Services Bookings for the three months ended June 30, 2025 and 2024 was $5.6 million and $10.3 million, respectively. Managed Services Bookings for the six months ended June 30, 2025, and 2024, was $13.1 million and $19.6 million respectively.
Previous wording
The following table sets forth a reconciliation from the GAAP measurement of net loss to our non-GAAP financial measure of Adjusted EBITDA for the three months ended March 31, 2025, and 2024:
Current wording
The following table sets forth a reconciliation from the GAAP measurement of net income (loss) to our non-GAAP financial measure of Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024:
Previous wording
The Company’s primary cash needs have historically been funding the development and integration of our technology platforms used in its business, marketing expenses, and G&A expenses including salaries, bonuses, and commissions. The Company has incurred losses and negative cash flow from operations for most periods since inception, primarily the result of costs associated with third-party creators, salaries, bonuses and stock-based compensation, and other G&A expenses, including technology and development costs, which has resulted in a total accumulated deficit of $104.4 million as of March 31, 2025. While we have not achieved profitability, we believe we have sufficient resources to fund operations and planned investments for at least the next twelve months.
Current wording
The Company’s cash requirements have historically included funding the development and integration of our technology platforms, marketing initiatives, and general and administrative expenses, such as salaries, bonuses, and commissions. The Company has incurred losses and negative cash flow from operations for most periods since inception, primarily the result of costs associated with third-party creators, salaries, bonuses and stock-based compensation, and other G&A expenses, including technology and development costs, which exceeded revenue, has resulted in a total accumulated deficit of $103.2 million as of June 30, 2025. These deficits have been funded through public equity.
Previous wording
We had cash and cash equivalents of $50.6 million as of March 31, 2025, as compared to $44.6 million as of December 31, 2024. This increase of $6.0 million is the result of the maturing of certain investments, supplemented by cash provided by operating activities.
Current wording
We had cash and cash equivalents of $50.6 million as of June 30, 2025, as compared to $44.6 million as of December 31, 2024. This $6.0 million increase is the result of the maturation of certain investments, supplemented by cash generated from operating activities.
Previous wording
Net cash provided by operating activities was $2.0 million during the three months ended March 31, 2025, primarily due to a decrease in accounts receivable. Net cash provided by investing activities was $4.7 million during the three months ended March 31, 2025, primarily due to the maturity of marketable securities. Net cash used for financing activities during the three months ended March 31, 2025 was $618,804, primarily due to payments for shares withheld for taxes and the repurchase of treasury stock.
Current wording
Net cash provided by operating activities was $1.2 million during the six months ended June 30, 2025, which is consistent with our net income. Net cash provided by investing activities was $6.0 million during the six months ended June 30, 2025, primarily due to the maturity of marketable securities. Net cash used for financing activities during the six months ended June 30, 2025 was $1.1 million, primarily due to payments for shares withheld for taxes and the repurchase of treasury stock.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
The following table sets forth a summary of our consolidated statements of operations and the change between the periods:
Current report — wording carried from elsewhere
General and administrative expense for the six months ended June 30, 2025, decreased by $1.3 million, or approximately 18%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 targeted workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.