Latest news with #IZEA
Yahoo
27-05-2025
- Business
- Yahoo
Gen Z job warning as new trend set to destroy 80 per cent of industry
Artificial intelligence (AI) is advancing at such a rapid rate that it could wipe out as many as 80 per cent of paid influencers in just a few months. In years gone by, content creators could earn hundreds to tens of thousands of dollars for a few social media posts. But these AI platforms are now able to churn out images and videos in just a few minutes for free that could be indistinguishable from reality. Sabri Suby, founder of digital marketing agency King Kong, told Yahoo Finance AI is "changing the game" in the influencer space. "I would say that 30 to 40 per cent of the short-form form content that people are consuming now, they're not even aware that it is AI-generated," he said. Gen Z Aussies warned over 'concerning' AI prediction ATO warning ahead of $1,288 cost-of-living cash boost $3 million superannuation tax change sparks property warning "Five months ago, it was very easily detectable, specifically with the lip syncing technology. "But now a few companies can create these hyper-realistic AI influencers, and that's been the missing piece of the puzzle." A report published by IZEA last year revealed that 55 per cent of adults aged 18 to 60 were willing to leave their 9-5 jobs to become a full-time influencer or content creator. The study also revealed one-third of 18 to 29-year-olds aspired to become influencers in the future. But they might find it next to impossible to make a living if current trends the bottom tier, you have user-generated content (UGC) creators. These are everyday people who might have followers in the three-to-four-digit space. Brands fork out hundreds of dollars to UGC creators in exchange for shooting content with their products, which the businesses can then use for marketing on their own channels. Micro-influencing has been a win-win for these creators and brands because costs can be low, and people might trust a nobody flogging a product over a well-known influencer. Fitness coach Sumbul Ari made $13,000 in just six months doing UCG. In the middle tier, you've got your run-of-the-mill influencers. They could be in any sector imaginable, like fitness, fashion, health and wellness, or food. They could have tens or hundreds of thousands of followers and get invited to events and parties, and make a pretty penny through brand deals. One bikini brand owner was shocked when three influencers she reached out to to collaborate with quoted her between $1,000 to $82,000 for a variety social media posts. Grace Garrick, founder of PR company MVMNT, revealed that a creator tried to charge an "entire year's salary" for a set of Instagram stories. Then you have your mega influencers at the top tier. They've got millions of followers, a brand deal or 10, and potentially a podcast, a fashion collection, makeup line, or a swimwear collaboration. They're the ones who likely jumped on the influencer bandwagon early and have spent years documenting their lives for their supporters. AI influencers have already infiltrated social media, and are racking up hundreds of thousands of followers, likes, shares and comments. IZEA found 31 per cent of young people already follow AI-generated or virtual influencers, however this is much less pronounced for people over 30 at just 15 per cent. One of the most followed AI stars is Brazil's Lu do Magalu, who has nearly 8 million supporters on Instagram alone. However, it wouldn't take a genius to realise she isn't a real person. But AI has come a long way since Magalu's first appearance on social media back in 2009. Even just in the past week, Google's Veo 3 AI video generator was revealed, and some of the examples it showed made it incredibly difficult to work out what's real and what's fake. Suby told Yahoo Finance this is where AI will be able to wipe out a sizeable chunk of the paid influencer space. "If you have a look at the total spectrum of people that are out there and creating content, 80 per cent of those people are micro-influencers that have 10,000 followers or less and this is directly going after them," he said. Of course people will still be able to be influencers and content creators, however they might not be able to rely on it as a form of income in the future. Suby said while UGC has been a win for both parties in recent years, some brands have found it difficult to work with certain people. He said creators and influencers can be "problematic" and "unreliable" because they might push back on certain requests or forget to film the product for several days. "But if someone can literally go in and write one prompt and get a video in five minutes, then we know what's going to end up happening, right?" he told Yahoo Finance. Not only that, but AI adds scale to this sector. They can pump out a month's worth of content involving 10 different AI-generated people in just a few minutes, which might have normally cost thousands of dollars and taken weeks to film. But what's truly impressive is how much AI can create incredibly lifelike content. "There's always an argument that AI is going to be able to do everything," Suby said. "But there are certain human characteristics and flaws that make a human relatable and real. "However, AI is basically going to be able to look at all the past data of all real influencers, and it's going to be able to pick up those uncanny flaws. They're going to adopt them to even make them into a more, very realistic model." The digital marketing expert said there will definitely be some influencers who will keep their jobs. The ones in the top tier will certainly be safe because they are bankable stars that have a genuine influence over people and that can be incredibly attractive for brands. The ones in the middle tier who survive will be those who are creative and carve out an authentic niche with their audience. "I don't think AI means that if you're an influencer, you can't make a living doing it," Suby said. "You're just going to need to be a hell of a lot better than what you would have needed to be previously. "It's going to be forged on you being more vulnerable, forming deeper connections, and doing things that AI isn't yet able to do." He said one example of that is doing TikTok Lives or doing a Q&A on Instagram. However, it might not be too far off the horizon before AI influencers are able to claim those spaces as while retrieving data Sign in to access your portfolio Error while retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
IZEA Worldwide Inc (IZEA) Q1 2025 Earnings Call Highlights: Revenue Growth Amid Strategic Cost ...
Total Revenue: $8 million, a 14.6% increase over the prior year quarter. Managed Services Revenue: $7.9 million, up 18.1% year-over-year. Managed Services Bookings: $7.5 million, down from $9.3 million in the prior year quarter. SaaS Revenue: $60,953, compared to $256,341 in the prior year quarter. Total Cost of Revenue: $4.4 million, representing 55.2% of revenue. Expenses Other Than Cost of Revenue: $4.2 million, a 40% decline from the prior year. Sales and Marketing Costs: $1.1 million, a 63.3% decrease year-over-year. General and Administrative Costs: $2.9 million, a 22.3% decline from the prior year. Net Loss: $142,800 or negative $0.01 per share. Adjusted EBITDA: Negative $76,850, compared to negative $3.4 million in the prior year quarter. Cash and Investments: $52.2 million as of March 31, 2025. Interest Income: $0.5 million earned on investments during the quarter. Stock Buyback: $1.2 million invested in repurchasing 469,211 shares since September 2024. Warning! GuruFocus has detected 4 Warning Signs with IZEA. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue for the first quarter of 2025 increased by 14.6% compared to the prior year quarter. Managed services revenue grew by 18.1% over the prior year quarter, with a 27.6% increase when excluding Hoozu revenue. The company significantly reduced expenses, with a 40% decline in costs other than the cost of revenue compared to the prior year's quarter. Net loss decreased significantly to $142,800 from $3.3 million in the prior year quarter, showing improved financial performance. The company has a strong cash position with $52.2 million in cash and investments, and no debt on the balance sheet. Managed services bookings declined to $7.5 million from $9.3 million in the prior year's first quarter. SaaS revenue saw a significant decline, dropping to $60,953 from $256,341 in the same quarter of the prior year. The company experienced a net loss of $142,800, indicating it is still not profitable. Adjusted EBITDA was negative $76,850, although improved from the prior year, it still reflects a loss. The company had to implement targeted workforce reductions and pause advertising spend to manage costs. Q: Peter, could you elaborate on where you think gross margins might be for the remainder of the year? A: Peter Biere, Chief Financial Officer, responded that while they are not providing guidance, margins are expected to remain stable within a range. They have cleared out some low-margin items, which should help maintain stability. Q: Are the cost-cutting measures essentially over, and is this a good level for going forward? A: Peter Biere explained that some cost reductions are structural, particularly in headcount, which is their largest expense. They aim to grow revenue faster than costs and may add staff in the summer and fall, but the current cost structure is expected to be stable for the year. Q: Are you seeing any evidence that clients are pulling back on advertising dollars due to economic uncertainty? A: Patrick Venetucci, Chief Executive Officer, noted that while there is global uncertainty, their pipeline is growing with higher-quality clients and larger deal sizes. Some clients see their services as a flexible marketing option that can be adjusted more readily than other media investments. Q: Can you elaborate on your M&A opportunities and whether valuations are within your comfort zone? A: Patrick Venetucci stated that they are preparing organizationally for potential M&A and have received unsolicited inquiries. They are building relationships with investment bankers and will pursue opportunities that align with their strategic goals without overpaying. Q: What is the rationale behind the share buyback program? A: Patrick Venetucci explained that they believe their shares are undervalued, which is why they are continuing with the $10 million share repurchase program. They plan to initiate a tender offer to complete the buyback, reflecting confidence in the company's future value creation opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
IZEA Worldwide Inc (IZEA) Q1 2025 Earnings Call Highlights: Revenue Growth Amid Strategic Cost ...
Total Revenue: $8 million, a 14.6% increase over the prior year quarter. Managed Services Revenue: $7.9 million, up 18.1% year-over-year. Managed Services Bookings: $7.5 million, down from $9.3 million in the prior year quarter. SaaS Revenue: $60,953, compared to $256,341 in the prior year quarter. Total Cost of Revenue: $4.4 million, representing 55.2% of revenue. Expenses Other Than Cost of Revenue: $4.2 million, a 40% decline from the prior year. Sales and Marketing Costs: $1.1 million, a 63.3% decrease year-over-year. General and Administrative Costs: $2.9 million, a 22.3% decline from the prior year. Net Loss: $142,800 or negative $0.01 per share. Adjusted EBITDA: Negative $76,850, compared to negative $3.4 million in the prior year quarter. Cash and Investments: $52.2 million as of March 31, 2025. Interest Income: $0.5 million earned on investments during the quarter. Stock Buyback: $1.2 million invested in repurchasing 469,211 shares since September 2024. Warning! GuruFocus has detected 4 Warning Signs with IZEA. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue for the first quarter of 2025 increased by 14.6% compared to the prior year quarter. Managed services revenue grew by 18.1% over the prior year quarter, with a 27.6% increase when excluding Hoozu revenue. The company significantly reduced expenses, with a 40% decline in costs other than the cost of revenue compared to the prior year's quarter. Net loss decreased significantly to $142,800 from $3.3 million in the prior year quarter, showing improved financial performance. The company has a strong cash position with $52.2 million in cash and investments, and no debt on the balance sheet. Managed services bookings declined to $7.5 million from $9.3 million in the prior year's first quarter. SaaS revenue saw a significant decline, dropping to $60,953 from $256,341 in the same quarter of the prior year. The company experienced a net loss of $142,800, indicating it is still not profitable. Adjusted EBITDA was negative $76,850, although improved from the prior year, it still reflects a loss. The company had to implement targeted workforce reductions and pause advertising spend to manage costs. Q: Peter, could you elaborate on where you think gross margins might be for the remainder of the year? A: Peter Biere, Chief Financial Officer, responded that while they are not providing guidance, margins are expected to remain stable within a range. They have cleared out some low-margin items, which should help maintain stability. Q: Are the cost-cutting measures essentially over, and is this a good level for going forward? A: Peter Biere explained that some cost reductions are structural, particularly in headcount, which is their largest expense. They aim to grow revenue faster than costs and may add staff in the summer and fall, but the current cost structure is expected to be stable for the year. Q: Are you seeing any evidence that clients are pulling back on advertising dollars due to economic uncertainty? A: Patrick Venetucci, Chief Executive Officer, noted that while there is global uncertainty, their pipeline is growing with higher-quality clients and larger deal sizes. Some clients see their services as a flexible marketing option that can be adjusted more readily than other media investments. Q: Can you elaborate on your M&A opportunities and whether valuations are within your comfort zone? A: Patrick Venetucci stated that they are preparing organizationally for potential M&A and have received unsolicited inquiries. They are building relationships with investment bankers and will pursue opportunities that align with their strategic goals without overpaying. Q: What is the rationale behind the share buyback program? A: Patrick Venetucci explained that they believe their shares are undervalued, which is why they are continuing with the $10 million share repurchase program. They plan to initiate a tender offer to complete the buyback, reflecting confidence in the company's future value creation opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
14-05-2025
- Business
- Business Insider
Izea to commence modified Dutch auction tender for up to $8.7M in common stock
IZEA (IZEA) Worldwide announced that it intends to commence a modified 'Dutch auction' tender offer to repurchase up to $8,700,000 of its common stock. Under the terms of the proposed Offer, IZEA will offer to purchase shares of its common stock at a price not less than $2.30 and not more than $2.80 per share, which maximum price equals approximately 120% of our 90-day volume-weighted average purchase price of $2.29 per share through May 12, 2025. The Offer will commence on May 16, 2025 and expire at 5:00 p.m., Eastern Time, on June 16, 2025, unless extended or terminated. Protect Your Portfolio Against Market Uncertainty
Yahoo
13-05-2025
- Business
- Yahoo
IZEA Announces Intention to Commence a Modified Dutch Auction Tender Offer to Repurchase up to $8.7M of its Common Stock
ORLANDO, Fla., May 13, 2025 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (NASDAQ: IZEA), a leading influencer marketing company that makes Creator Economy solutions for marketers, announced today that it intends to commence a modified 'Dutch auction' tender offer (the 'Offer') to repurchase up to $8,700,000 of its common stock. Under the terms of the proposed Offer, IZEA will offer to purchase shares of its common stock at a price not less than $2.30 and not more than $2.80 per share, which maximum price equals approximately 120% of our 90-day volume-weighted average purchase price of $2.29 per share through May 12, 2025. The Offer will commence on May 16, 2025 and expire at 5:00 p.m., Eastern Time, on June 16, 2025, unless extended or terminated. Stockholders may tender some or all of their shares at a price within the specified range. Based on the number of shares tendered and the prices specified by tendering stockholders, IZEA will determine the lowest single per-share price that will allow it to purchase up to the maximum dollar amount of shares properly tendered. All shares accepted in the Offer will be purchased at the same price, regardless of the price at which they were tendered. The Offer will be made pursuant to an Offer to Purchase and related materials, which will be filed with the Securities and Exchange Commission ('SEC') and distributed to stockholders. Important Information The Offer described in this press release has not yet commenced and will not be made to any person in any jurisdiction in which either the Offer, or solicitation or sale thereof, is unlawful. This announcement is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell any securities of IZEA. On commencement, the Offer will only be made pursuant to the Offer to Purchase, letter of transmittal, and related materials filed with the SEC as part of a Schedule TO. Stockholders are strongly encouraged to read the tender offer statement on Schedule TO, the Offer to Purchase, and other related documents when they become available, as they will contain important information and an explanation of the terms and conditions for participation. Once the Offer has commenced, stockholders will be able to obtain a free copy of the tender offer statement on Schedule TO, the offer to purchase, letter of transmittal and other documents that the Company will be filing with the SEC at the SEC's website at or from the information agent for the Offer, which will be named in the Offer materials. About IZEA Worldwide, Worldwide, Inc. ('IZEA'), is an influencer marketing company with a mission to make creator economy solutions for marketers. We do this by lighting up the Creator Economy with IZEAs—our strategies, campaigns, and solutions that build brands and drive demand. Since launching the industry's first-ever influencer marketing platform in 2006, IZEA has facilitated nearly 4 million collaborations between brands and creators. Safe Harbor StatementAll statements in this release that are not based on historical fact are 'forward-looking statements' intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as 'may,' 'will,' 'would,' 'could,' 'should,' 'expect,' 'anticipate,' 'hope,' 'estimate,' 'believe,' 'intend,' 'optimistic,' "confident," 'likely,' 'projects,' 'plans,' 'pursue,' 'strategy' or 'future,' or the negative of these words or other words or expressions of similar meaning. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including, among others, the following: competitive conditions in the content and social sponsorship segment in which IZEA operates; failure to popularize one or more of the marketplace platforms of IZEA; changing economic conditions that are less favorable than expected; and other risks and uncertainties described in IZEA's periodic reports filed with the Securities and Exchange Commission. The forward-looking statements made in this release speak only as of the date of this release, and IZEA assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law. Press ContactMatt Gray IZEA Worldwide, Inc. Phone: 407-674-6911 Email: ir@ in to access your portfolio
