IZEA Worldwide, Inc. Q2 FY2025 earnings call

• Achieved profitability for the first time in IZEA's history. - Successfully reduced cost structure in Q4 2024 without sacrificing growth in H1 2025. - Won new business from clients like Jeep, Nestlé, Kellogg's. - Kicked off a new tech initiative to enhance campaign management product and integrate more AI. - Hired first VP Talent acquisition to attract talent and elevate brand among industry talent.

Revenue during the 3 months ended June 30, 2025, nearly all from Managed Services, totaled approximately $9.1 million, up 0.4% over prior year quarter. Excluding Hoozu, Managed Services revenue increased 12.9%. Managed Services bookings in Q2 2025 were $5.6 million, total first half 2025 bookings $13.1 million. Cost of revenue in Q2 2025 was $4.4 million (48% of revenue) vs $5.2 million (57%) in prior year. Expenses other than cost of revenue were $4 million in Q2 2025, down from $6.8 million. Net income in Q2 2025 was $1.2 million vs net loss of $2.2 million in prior year. Adjusted EBITDA was $1.3 million in Q2 2025 vs negative $2.2 million prior year.

• No specific revenue guidance provided. - Mentioned having a good pipeline, strengthening relationships, and adding large customers. - Emphasized managing costs to stay in a healthy relationship with revenue growth.

• Macroeconomic pressures, including tariff-related uncertainties affecting certain industries, led some customers to pause a meaningful portion of their marketing budgets.

Q: Could you elaborate on M&A activity?

A: We are actively talking to people, being strategic, ensuring integration readiness. We're both financially and operationally ready and actively engaging with folks.

Q: What about valuations in deals?

A: We'll be reasonable, not overpay, want to be fair, and use capital responsibly to work out accretive win-win deals.

Q: Talk about bookings for Q1/Q2 and down sequential bookings vs future revenue growth.

A: Decline due to timing issue on a significant client (which equalized is up), intentional shift away from unprofitable accounts, and macroeconomic environment; but have industries with double-digit or triple-digit growth in verticals.

Q: Operating expenses going forward, expected growth?

A: Costs are managed, with marketing costs paused for now, and efficiencies in place; costs will be judiciously managed to grow in parallel with revenue.

Q: Revenue guidance for remainder of the year?

A: Not giving specific guidance, but have good pipeline, strengthening relationships, adding large customers, and costs will be managed to stay healthy.

Q: About the VP of Talent Acquisition, is she full time for IZEA and mostly after marketing talent?

A: She's full time for IZEA, and not just after marketing talent, but all sorts of talent to position for future growth and establish relationships with talent as they grow.