IZEA Worldwide, Inc. (NASDAQ: IZEA), the premier provider of influencer marketing technology, data, and services for the world’s leading brands and agencies, today announced that its Managed Services team secured contract bookings totaling $7.3 million in the second quarter of 2023, as compared to $9.3 million in the second quarter of 2022. The year-over-year decline in bookings is solely attributed to the parting of ways with one large customer. Bookings from ongoing customers grew by $1.4 million when the large customer is excluded from the bookings comparison.
“We have previously announced that we are in the process of parting ways with one large customer that carried a low margin profile,” said Ted Murphy, IZEA’s Chairman and CEO. “That customer made up over 35% of bookings in Q2 of 2022, which created a large void to fill in Q2 of 2023. While total bookings are down from the same period last year, it is important to note that we saw a strong 25% year-over-year increase in bookings from our ongoing customer base in Q2. Additionally, our order volume from ongoing customers grew 25% this quarter, while our average order size, excluding the large client, is on par with this time last year.”
“The increase in bookings from ongoing customers is particularly satisfying after seeing a softness in customer budgets earlier this year compared to last year,” continued Murphy. “We are seeing some fruit from our efforts to establish new customer accounts and are also seeing some current customers begin to spend against budgets that have been in limbo in late 2022 and early 2023. We remain focused on building a wider base of Managed Services customers across new geographies and industries, and diversifying our account concentration risk, which should increase our gross margins as the year progresses.”
Bookings are a measure of all sales orders minus any known or expected cancellations or refunds with respect to such sales orders or refunds. Management uses bookings to inform expectations of total sales activity. Bookings are not always an indicator of revenue for the quarter and could be subject to future adjustments. Revenues from Managed Services bookings are typically recognized over a nine-month period on average.
To work with IZEA as either an influencer or a marketer, visit izea.com. For news and resources, follow IZEA on Twitter at https://twitter.com/izea.
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