IZEA Worldwide Inc (NASDAQ: IZEA) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has entered into a relationship with a top 50 United States retailer, provided updates with regard to renewals and updated guidance. Of course, the news excited investors who are sending the stock screaming for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from IZEA stock as a result; and
- what we’ll be watching for ahead.
IZEA Announces Agreement With Top 50 US Retailer
As mentioned above, IZEA Worldwide is having an incredibly strong start to the trading session this morning after signing a deal with a top 50 US retailer. In a press release issued early this mroning, the company said that it signed a brand-direct relationship with a large retailer in the United States. The deal followed the completion of a successful pilot program. In the release, the company said that the retailer is now licensing its technology to manage its influencer marketing initiatives.
In the release, IZEA said that on top of this new relationship, it has seen strong license renewals with several top marketplace spenders in both of its SaaS platforms. As a result, the company expects that bookings for all lines of business in Q3 will come in above $9.5 million. Also, based on preliminary unaudited data, net revenue is expected to come in between $5 and $5.25 million for Q3 and is expected to increase greatly in Q4 and Q1. In a statement, Ted Murphy, CEO at IZEA, had the following to offer:
We are very excited by the progress that our SaaS business development team is making. We continue to build our relationships with both brands and agencies which license IZEA technologies to discover, organize, and transact with social media influencers… With the recent acquisition of TapInfluence and signing of new IZEAx customers, both monthly SaaS license fees and marketplace spend have increased significantly. Gross marketplace billings generated from customers using our influencer marketing platforms in a self-serve capacity have increased from approximately $45k in all of Q2 2018, to $1.5 million in August alone.
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, the new deal will drive important revenue for the company. Not to mention, it is seeing strong retention rates and expecting to report impressive Q3 results. So, it comes as no surprise that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:27), IZEA is trading at $2.28 per share after a gain of $0.77 per share or 50.99% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will keep a close eye on IZEA. In particular, we’re interested in following the story surrounding the company’s continued growth as its platform seems to be experiencing a bit of a growth spurt at the moment. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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