IZEA Announces Content Solution Subscriptions for Small-to-Medium Businesses


 
 
10:02 11/26/2017

IZEA, Inc. IZEA , operator of IZEAx, a premier online marketplace connecting brands and publishers with influential content creators, has announced the creation of a new unit focused on sales to small and medium-sized businesses.

The group will offer subscription-based custom content development to organizations with annualized marketing budgets of $1,000,000 to $20,000,000, contrasting IZEA’s existing Managed Service organization that primarily targets Fortune 500 corporations.

“In the age of the ‘informed customer,’ successful companies must build brands by behaving more like publishers - regardless of size or sector,” said Ted Murphy, Founder and CEO of IZEA.

“Consumers expect to see a steady stream of social media updates and blog posts from reputable brands, but few organizations have the capability to produce high-quality content on a frequent basis. Scalable content production is even more difficult for smaller companies with limited creative resources and smaller budgets. IZEA’s SMB Solutions Group will cater to these organizations with a streamlined, subscription-based offering starting as low as $1,750 per month with an annual commitment,” Murphy continued.

“The ongoing production of quality assets is the cornerstone of any content marketing program and an absolute necessity for marketing automation platforms such as HubSpot, Marketo, Salesforce Pardot, and SharpSpring,” said Ryan Schram, Chief Operating Officer of IZEA.

“IZEA is already a trusted content partner for some of the world’s leading brands. Thanks to our marketplace approach, we believe we can bring that same quality, speed, and efficiency to serve marketers of all shapes and sizes,” Schram added.

IZEA  also reported record revenues for Q3 ended on September 30, 2017. Revenue in the third quarter of 2017 increased 9% to $8.2 million compared to $7.5 million in the same year-ago quarter. The increase in our Q3 2017 revenue is primarily due to organic growth in our Managed Services revenue.

Gross profit in the third quarter of 2017 increased 23% by approximately $826,000, as compared to the third quarter of 2016. The increase in gross profit was primarily attributable to a favorable shift to higher margin Managed Services revenue versus lower margin self-service Content Workflow revenue.

“This was a milestone quarter for the company. We crossed $8M in quarterly revenue for the first time, and posted our first EBITDA positive quarter since becoming a public company,” said Ted Murphy, IZEA’s Chairman and CEO.

Murphy added, “we have made meaningful progress towards our goal of reaching sustainable, profitable growth, and I am excited by what our team has accomplished to date. Our goal was to have our first EBITDA positive quarter in the second half of 2018 and we are full year ahead of schedule.”

IZEA  expects annual revenue in 2017 will be approximately $29-$30 million, compared to $27.3 million in 2016. The company has increased its gross margin guidance by 200 basis points. Gross margins are now expected to range between 50% to 51% compared to 48% in 2016. Guidance for adjusted EBITDA has improved by $1.0 million and adjusted EBITDA is expected to be approximately $(3.0-3.25) million compared to $(5.2) million in 2016.


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
Most Read