IZEA - NASDAQ

Greetings, and welcome to the I

Good afternoon, everyone, and welcome to I

Thank you, Matt, and good afternoon, everyone. We recently released our fourth quarter and full year 2024 results and filed our annual report on Form 10-K with the SEC. Today, I'll discuss actions taken during the fourth quarter to shed unprofitable ventures and reduce future expenses, provide a high-level review of our full year performance, review the fourth quarter operating results in more detail and highlight key components of our December 31, 2024 balance sheet. Turning to our annual results, revenues totaled $35.9 million in 2024, declining slightly from $36.2 million or down 1% compared to 2023. Managed Services revenue for 2024 was $35.1 million, down about $683,000 or 2% from 2023. It's important to note that $8.1 million of 2023 revenue came from a non-recurring customer we parted ways with in late 2022. Excluding revenues from Hoozu, which we divested at the end of 2024 and this non-recurring customer from the year-over-year comparison, Managed Services revenue grew 16.3% in 2024. This demonstrates that underneath these two major changes, our core customer base continues to grow at a healthy rate. During the fourth quarter, we initiated changes that we expect will dramatically reduce our cash burn and shorten our path to profitability. In December 2024, we implemented targeted workforce reductions to align personnel costs with our operational needs. We eliminated 32 full-time positions across multiple departments, representing $3.9 million in annualized fully-loaded costs or 21% of total personnel expense. Additionally, we reduced contract labor, primarily within product engineering and offshore sales teams, resulting in $1.2 million in annualized savings. We also implemented further cost-cutting measures across marketing and administrative functions. We took action to end unprofitable international investments, divesting our Australian subsidiary, Hoozu, which while it accounted for $3.4 million in 2024 revenue, was unprofitable and would have required additional cash investment in 2025. We will continue to serve international customers in other regions from our North American hub and do not anticipate a significant disruption in 2025 revenue from these regions. For the 12 months ended December 31, 2024, we reported a net loss of $18.9 million compared to $7.4 million in 2023, an increase of $11.5 million. The year-over-year increase was primarily driven by strategic actions to eliminate unprofitable investments and implement cost reductions. These actions resulted in one-time charges of approximately $8 million, approximately $7 million of which did not require cash in the current period and included: a $4.1 million non-cash goodwill write-off in our third quarter related to older acquisitions, a $1.9 million Q4 non-cash loss from divesting Hoozu; $1.3 million in severance and contract cancellation charges, $1 million of which tied to a leadership change in our third quarter and $0.3 million for targeted workforce reductions enacted in our fourth quarter; and finally, $0.4 million fourth quarter write-down of abandoned capitalized software. Despite the current period's impact on our financial results, these strategic measures strengthen our balance sheet and position us for significantly lower cash burn and improved profitability moving forward. For a more detailed discussion of full year results, please refer to our Form 10-K. I'll turn now to results for the fourth quarter of 2024. Total revenue for the fourth quarter of 2024 was approximately $11 million or 23.7% above the prior year quarter. Revenue from Managed Services totaled $10.9 million in the current quarter, also growing 24% over the prior year quarter. Excluding revenues from Hoozu, which were $1.1 million in the recent quarter, and the non-recurring customer from the 2023 comparison, Managed Services revenue grew 21.9% in the fourth quarter over the prior year period. Managed Services bookings, a non-GAAP measure of demand for our services, grew about 45% to $11 million in the fourth quarter of 2024 compared to $7.6 million in the prior year's fourth quarter excluding Hoozu in both periods. As of December 31, 2024, our Managed Services backlog, representing unrecognized revenue from ongoing contracts and recent bookings not yet invoiced, totaled $14.2 million. It's important to note that I

Thank you, Peter, and good afternoon, everyone. As a reminder, last September, we made several important changes both to management and the Board. I stepped into the CEO role and we changed the composition and committee structure of the Board. We also increased our share buyback commitment from $5 million to $10 million as a demonstration of the Board's belief that I

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] We've reached the end of our question-and-answer session. I'd like to turn the floor back over for any further or closing comments. : :

Thanks so much, Kevin, and thank you everyone for joining us this afternoon. As a reminder, you can find I