IZEA Worldwide, Inc. Q4 FY2024 earnings call

• In the fourth quarter, initiated actions to reduce cash burn and move to profitability, including targeted workforce reductions (eliminating 32 full-time positions, $3.9 million annualized fully-loaded costs), reducing contract labor ($1.2 million annualized savings), and divesting unprofitable Australian subsidiary Hoozu. - 2024 full year: Revenues $35.9 million (-1% from 2023). Managed Services revenue $35.1 million, with core customer base growth when excluding specific non-recurring elements. - Strategic direction reset in Q4: Focus on America-first, simplify product, shift go-to-market to high-growth segments, redesign organizational structure. - Q4 operational highlights: Won new business from clients like Nestlé, etc., released industry insight studies, advanced tech product with enhancements, hired Chief People Officer.

In 2024, total revenues were $35.9 million, down slightly from $36.2 million in 2023 (-1%). Managed Services revenue in 2024 was $35.1 million, down about $683,000 or 2% from 2023. Excluding a non-recurring customer and the divested Hoozu, Managed Services revenue grew 16.3% in 2024. For the fourth quarter of 2024, total revenue was approximately $11 million, 23.7% above the prior year quarter. Managed Services revenue was $10.9 million, growing 24% over the prior year quarter. Excluding Hoozu and the non-recurring customer, Managed Services revenue grew 21.9% in the fourth quarter. Managed Services bookings in the fourth quarter of 2024 were about 45% higher at $11 million compared to $7.6 million in the prior year's fourth quarter (excluding Hoozu in both periods). As of December 31, 2024, Managed Services backlog was $14.2 million. SaaS Services revenue in the fourth quarter of 2024 was $117,000 compared to $111,000 in the prior year quarter.

• During Q4, implemented measures expected to dramatically reduce cash burn and shorten path to profitability. - Expects no significant disruption in 2025 revenue from international regions other than North America. - Anticipates recognizing a significant portion of the $14.2 million Managed Services backlog in the first half of 2025.

• Geopolitical risks, tariff risks, and currency risks associated with international exposure. - Risks related to the impact of divesting unprofitable ventures like Hoozu and other unprofitable international investments.