IZEA, Inc. (NASDAQ:IZEA) Q1 2020 Earnings Conference Call - Final Transcript

May 14, 2020 • 05:00 pm ET

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IZEA, Inc. (NASDAQ:IZEA) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the IZEA, Inc. First Quarter 2020 Earnings Conference Call. [Operator Instructions]

I would now like to turn the conference over to Ryan Schram. Please go ahead.

Executive
Ryan S. Schram

Good afternoon and welcome to IZEA's Q1 2020 earnings call.

I'm Ryan Schram, Chief Operating Officer at IZEA. And joining me today is IZEA Interim Chief Financial Officer, LeAnn Hitchcock; and IZEA Chairman and Chief Executive Officer, Ted Murphy. Thanks for being with us this afternoon.

Earlier today, the Company issued a press release with details pertaining to our first quarter performance for 2020. If you'd like to review those details, all of our investor information can be found on our Investor Relations website at izea.com/investors.

Before we begin, please take note of the safe harbor paragraph that appears at the end of the press release covering the Company's financial results. And be advised that during the course of today's earnings call, our management team will discuss IZEA's business outlook and make forward-looking statements. These statements are predictions based on our team's expectations as of today that are subject to inherent risks and uncertainties and should not be unduly relied upon. Actual events, results or trends could differ materially from our forecast due to a number of factors, including those mentioned in our most recently filed periodic reports with the SEC. The Company and our management team assume no obligations to update any forward-looking statements made in today's call.

In addition, our update today will refer to certain non-GAAP financial measures, specifically gross billings and adjusted EBITDA. A reconciliation of these measures to the most directly comparable GAAP measure is presented in our earnings release with additional discussion of both of these measures available in our most recent Form 10-K and 10-Q, available under SEC filings in the Investors section of izea.com.

With the appropriate disclosures out of the way, I'm pleased to introduce my colleague and IZEA's interim Chief Financial Officer, LeAnn Hitchcock. LeAnn?

Executive
LeAnn C. Hitchcock

Thank you, Ryan, and good afternoon, everyone.

On March 11, 2020, the World Health Organization declared the outbreak of the novel coronavirus, also known as COVID-19, as a global pandemic and recommended containment and mitigation measures worldwide. On Friday, March 13, we directed all of our staff to work from home effective the next business day, on Monday, March 16, and they are continuing to do so for the foreseeable future.

All of our business operations and the ability to support our customers are fully functional while our employees are working from remote locations. However, we have begun to see impacts on our operations due to changes in advertising decisions, timing and spending priorities from our customers, which may result in a negative impact to our bookings and revenue in current and future quarters. While the disruption is currently expected to be temporary, there is uncertainty around the duration and total economic impact.

Total revenue in our first quarter of 2020 was flat year-over-year at $4.8 million, with $4.1 million coming from our Managed Service