IZEA Worldwide Inc (NASDAQ:IZEA) posts groundbreaking fourth quarter bookings of $11.2 million. Total bookings ballooned 115% year over year going past the 10 million marks for the first time in the company’s history.
Total bookings usually give the management a glimpse of the total sales to expect within a specified fiscal period. It represents the total sales orders, self-service clients’ expenditure on the platform less all expected cancellations and reimbursements concerning the tallied sales orders.
However, bookings only give estimated figures and not the accurate numbers as it is subject to future adjustments.
Speaking about the landmark, IZEA’s Chairman and Chief Executive Officer, Ted Murphy stated that “This is a milestone quarter for us and underscores the transition we have been making towards a more balanced mix of software and services sales. During the fourth quarter, approximately 61% of our bookings came from a combination of software licensing, and marketplace spend.”
Murphy revealed that the encouraging numbers were driven by significant marketplace expenditure, particularly during the festive season. Additionally, the company witnessed significant license renewals from notable software clients together with yearly commitments from long term customers.
The CEO reiterated his commitment to enhance bookings further and drive meaningful results from the recent transitions the company has undertaken. Murphy expressed encouraging optimism about the future revealing that they will soon be unveiling IZEAx 3.0.
The news on the doubled Q4 2018 bookings has not pushed IZEA’s stock through the roof yet. On the contrary, the stock slammed 4.05% to close at a devastating $1.42 during the Wednesday 9 market day.
The closing price is a far cry from the company’s 52-week high of $7.60, but on the brighter side, it has surpassed its 52-week low of $0.80.
During Wednesday’s trading session the shares shifted to a high of $1.55 and a low of $1.31 before settling at the mentioned closing price.
As of now, IZEA has a market capitalization of $15.87 million.
IZEA has scheduled the release of its Q4 2018 earnings on March 28, 2019. The impressive bookings will sure raise investors expectations. Q3 earnings were not quite appealing as revenue slammed 17% year over year to $5.8 million compared to 2017’s $7.1 million.
Net bookings for Q3 surged 20% as opposed to the reported Q4 bookings increase of 115%. Bookings for Q3 2018 was $9.5 million.
Among the notable events that took place during the Q3 include the acquisition of TapInfluence for a sum of $7.08 million payable in part cash and stock. IZEA signed a definitive agreement to purchase the top online marketplace firm in mid-2018.
During the Q3 period, IZEA completed a public offering which raised about $5 million. The company negotiated a strategic partnership with Pinterest under which IZEA will become Pinterests’ marketing partner for content marketing.
Through the Pinterest platform, IZEA can help other companies expand their reach on Pinterest. Also during the third quarter IZEA made it to the Orlando Sentinel Top 100 Company, third-year consecutively.
IZEA wins lucrative contracts in December
Another thing that raises expectations on the Q4 earnings is IZEA’s recent announcement that it had won multiple high-figures contracts in December.
According to the announcement, IZEA secured a lucrative influencer and content marketing services contract for an affiliate of a Fortune 10 company.
Further, the company signed a couple of contracts with a giant grocery chain, an international restaurant chain, as well as renowned electronics and apparel manufacturers.
The company’s CEO confirmed that December was indeed a momentous sales month stating that the IZEA witnessed some renewals from esteemed long-time clients as well as new contracts by fresh clients.