IZEA’s (IZEA) Q2 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Ted Murphy – Chairman & CEO

An acquisition to boost the march towards custom content

“The acquisition of ZenContent has allowed us to expand and change our overall content offering. We’ll be moving away from the term virtual newsroom in favor of the larger service umbrella called custom content. Under custom content, we now offer a larger variety of content types at different price points, from metadata and copy block to feature stories and videos. We believe that ZenContent’s focus on e-commerce and publishing will be synergistic to other areas of our business as we look to the future.”

A stronger focus on brands as opposed to newspapers given the later´s poor margins

“we’re not really focusing any sales efforts right now in terms of the newspaper side of the business. That is something that we look at as we’re maintaining that the best we can, but the world of newspaper publishers is very challenged right now and frankly that business due to its margin profile doesn’t make sense for us to put a lot of sales resources towards. So as our team goes out, they are really focused on selling content to brands, rather than newspapers.”

Increase in size and length of deals

“Well there is really two things happening, the overall pipeline is growing, all overall size of those deals are growing, we have more sales people creating more opportunities. But at the same time we are also making bigger asks than we have in the past. So instead of asking for a small campaign that may run over a month or two or three months we are asking for annual commitments, because a lot of these clients are coming back their second or third time. So that may actually impact the raw count of opportunities but we believe those are higher quality opportunities and ultimately for a larger dollar amounts.”

Higher quality images get shared more

“overall in terms of engagement on Target versus eBay, we have seen a much higher engagement on Target than we did on, eBay when we released that…I think the part of that actually has to do with imagery, if you do a search on eBay, some of the images that are returned back are, they are consumer generated they are not necessarily high quality. Whereas as the things that are returned back from Target tend to be more uniformed and of higher quality and higher larger images. And so when people are making a decision on what they want to share and those images are showing up in their social feeds, I think that they just make you more comfortable with those higher quality images.”