Izea Inc (NASDAQ: IZEA) is flying early on in the trading session this morning, and for good reason. The company announced a series of significant contract wins thus far in Q3. Of course, the news excited investors, sending the stock on a run for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from IZEA as a result; and
- what we’ll be watching for ahead.
IZEA Announces Significant Contract Wins
As mentioned above, Izea Inc is having an incredibly strong start to the trading session this morning as news breaks surrounding significant contract wins. In a press release issued early this morning, the company announced that it has won several large new contracts so far in the third quarter.
In the release, IZEA said that it recently secured a high six-figure influencer marketing service contract to support a product launch for a Fortune 200 customer. Also, the company has signed various six-figure contracts earlier in the quarter for a variety of clients, including a Fortune 10 retailer, a Fortune 100 healthcare company, and a Fortune 1000 softwware company. The company also announced that it has received new commitments from repeat clients, including a Fortune 50 automobile manufacturer and a Fortune 500 consumer packaged goods company. In a statement, Ted Murphy, Founder and CEO at IZEA, had the following to offer:
We believe our Q3 managed services bookings will show a meaningful improvement over the previous quarter… We are approximately halfway through Q3 and have already booked 90%+ of what we did in managed services bookings for the entirety of Q2. In addition to managed services, we also expect to see the benefit of SaaS and marketplace spend from our acquisition of TapInfluence in late July. From a sales perspective, July 2018 was our best July in the history of the company, with managed services bookings up 153% year over year.
We are beginning to see a rebound in bookings due to the heightened level of overall sales activity over the past three quarters…Our Q2 new opportunity pipeline, and our July new opportunity pipeline, were both up year over year. We have been working hard to build the top of the funnel, and that effort is beginning to pay off. On average, we see the efforts of new opportunity pipeline development impacting bookings on an eight to ten month trailing basis. We have observed three quarters of this trend, and we believe we are at the beginning of a reversal in our bookings pattern, so long as this momentum continues.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of IZEA, the news proved to be overwhelmingly positive. After all, these contract wins will likely drive tremendous growth in revenue. So, it comes as no surprise to see that excited investors are eating it up and sending the stock toward the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:20), IZEA is trading at $1.72 per share after a gain of $0.62 per share or 56.36% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on IZEA. In particular, we’re interested in following the company to see the revenue growth after these contract wins. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!