IZEA Worldwide, Inc. reported significant financial developments in its 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a revenue increase of 12% for the third quarter, generating $8.8 million compared to $7.9 million in the same period of 2023. However, for the nine months ended September 30, 2024, total revenue decreased by 9% to $24.9 million from $27.3 million in the prior year. This decline was primarily attributed to a 10% drop in Managed Services revenue, which accounted for 97% of total revenue, reflecting the loss of a significant customer in 2023.
Total costs and expenses surged by 73% in Q3 2024, reaching $18.2 million, compared to $10.5 million in Q3 2023. This increase was driven by a substantial rise in general and administrative expenses, which nearly doubled to $5.8 million, and a $4 million impairment of goodwill related to prior acquisitions. The net loss for the third quarter ballooned to $8.8 million, a stark contrast to the $2.0 million loss reported in Q3 2023. For the nine-month period, the net loss escalated to $14.2 million from $5.8 million in the previous year.
Strategically, IZEA made notable acquisitions, including Hoozu Holdings, Ltd. and an asset acquisition from Zuberance, Inc. in December 2023. The acquisition of Hoozu, valued at approximately $2.5 million, aimed to enhance the company's capabilities in influencer marketing. Additionally, the company appointed Patrick J. Venetucci as CEO following the resignation of former executives in September 2024, and established a Cooperation Agreement with GP Cash Management, which included new board appointments.
As of September 30, 2024, IZEA's cash and cash equivalents stood at $46.0 million, up from $37.4 million at the end of 2023. The company reported a total stockholders' equity of $53.3 million, a decrease from $65.3 million at the end of the previous fiscal year. The company is currently conducting a comprehensive analysis of its operations and exploring strategic alternatives to address ongoing losses and management changes. A Strategic and Capital Allocation Committee has been formed to review business strategies and develop a plan for sustainable profitability.
About IZEA Worldwide, Inc.
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