SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 9, 2012
(Exact Name of Registrant as Specified in Charter)
|(State or other jurisdiction of incorporation)||(Commission File Number)||(IRS Employer Identification No.)|
|150 N. Orange Avenue, Suite 412|
|(Address of principal executive offices)||(Zip Code)|
Registrant's telephone number, including area code: (407) 674-6911
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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CURRENT REPORT ON FORM 8-K
May 9, 2012
Item 8.01. Other Events
On May 9, 2012, IZEA, Inc. issued a press release providing financial guidance for 2012. A copy of the press release issued on May 9, 2012 is attached as Exhibit 99.1 to this current report on Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits. The exhibit listed in the following Exhibit Index is filed as part of this current report.
|99.1||Press Release issued by IZEA, Inc. on May 9, 2012.|
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|Date: May 9, 2012||By:||/s/ Edward H. (Ted) Murphy|
|Edward H. (Ted) Murphy|
|President and Chief Executive Officer|
Jennifer P. Brown
IZEA Provides Guidance for 2012, Annual Revenue Projected to Double
Annual profit margin expected to increase to 56-60% by year-end
Orlando, Fla. (May 9, 2012) - IZEA, Inc. (IZEA:OTCQB), the world leader in Social Media Sponsorship, today provided high-level guidance for its 2012 fiscal year. Revenue for the company is expected to double over fiscal year 2011 to $8.6 million, fueled by its May 2012 sales pipeline of $9.1 million that has increased by 50% since January 2012 and doubled since May last year.
“Our client base is expanding across multiple industry verticals,” said Ted Murphy, Founder and Chief Executive Officer of IZEA. “Our pipeline is growing at an average of eight percent month-over-month and we continue to see an increase in our conversion rate from pipeline to signed client. In the first quarter of this year we conducted campaigns for national and international brands such as S.C. Johnson & Son, Kraft, Walmart, Kia, Lenovo, Revlon and The Scotts MiracleGro Company.”
Factors fueling IZEA’s outlook include the success of its localized client development strategy through the addition of team members in New York City, Seattle and Dallas. Revenue from IZEA’s display advertising solution, IZEA Media, doubled from December 2011 to March 2012 and today has over 70 million monthly impressions. Further, IZEA continues to expand its celebrity network, with stars from the big screen to athletes on the field.
The company’s annual gross profit margin is expected to increase to 56-60%, up from 55% in 2011 and 52% in 2010. The company attributes the margin growth over the past three years to the unique value it provides to clients, optimization of existing platforms and increased demand for managed services.
“As an industry, social marketing continues to grow exponentially. With recent valuations assigned to high-profile acquisitions and upcoming IPOs, there is significant up-side still emerging,” said Ryan Schram, Chief Marketing Officer, IZEA. “This indicates marketers will continue to raise budgets for social and digital media in search of ways to create richer connections with their consumers. IZEA is at the center of this, connecting brands with top influencers who engage those target audiences.”
In the coming week, IZEA will formally unveil a new product designed to monetize sponsored photo and video posts to Twitter and Facebook. For the remainder of the 2012 fiscal year, IZEA will continue investing heavily in sales and marketing, with expected net losses ahead of investment through the year. The company expects to reach profitability in early 2013. IZEA plans to report Q1 2012 financial results on May 15.
Prospective investors who would like to learn more about IZEA can visit http://izea.com/investors/.
IZEA, Inc. is the world leader in social media sponsorship, operating multiple marketplaces including, WeReward, Sponsored Tweets and SocialSpark. IZEA connects advertisers with social media influencers, helping them monetize their social media presence. The company has completed over three million social media sponsorships for customers ranging from small local businesses to Fortune 50 organizations. For more information about IZEA, visit www.izea.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are based largely on IZEA's expectations and are subject to a number of risks and uncertainties, certain of which are beyond IZEA's control. Actual results could differ materially from these forward-looking statements as a result of, among other factors, competitive conditions in the social media sponsorship segment in which IZEA operates, failure to popularize one or more of the marketplace platforms of IZEA and general economic conditions that are less favorable than expected. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this respect will in fact occur. Please read the full statement and disclosures here: http://izea.com/safe-harbor-statement
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