IZEA Announces $5 Million Share Repurchase Program
Rhea-AI Summary
IZEA Worldwide announced a $5 million share repurchase program, authorized by its Board of Directors. This initiative enables the company to buy back its common stock, subject to market conditions and insider trading windows. A special committee of independent Board members will authorize each buyback. The decision follows notable year-over-year growth in bookings and an increase in the sales pipeline, which are not yet reflected in the stock price. CEO Ted Murphy emphasized that the market undervalues IZEA’s business and assets. The repurchases may occur through various transactions, depending on factors like price, trading volume, and market conditions. The program is flexible, allowing adjustments or discontinuation at any time.
Positive
- IZEA has authorized a $5 million share repurchase program, indicating confidence in its financial health.
- Significant year-over-year growth in bookings suggests robust business performance.
- Increased sales pipeline points to potential future revenue growth.
Negative
- The share repurchase program indicates that the company believes its stock is currently undervalued, which might reflect underlying market concerns.
News Market Reaction 1 Alert
On the day this news was published, IZEA gained 8.29%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
ORLANDO, Fla., June 28, 2024 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (NASDAQ: IZEA), the premier provider of technology, data, and services for the Creator Economy, today announced that its Board of Directors has authorized a share repurchase program under which the company may repurchase up to
"We are encouraged by the year-over-year growth in bookings and substantial increases in our pipeline, which have not yet been reflected in our stock price. IZEA’s Board of Directors and management team firmly believe that the market currently undervalues our core business, technology assets, and cash reserves. This share repurchase program grants us the flexibility to buy back stock over time, provided market conditions remain favorable," stated Ted Murphy, Chairman and CEO of IZEA.
Under the share repurchase program, the company may periodically repurchase its common stock through open market transactions, privately negotiated transactions, block trades or any combination thereof in compliance with applicable securities laws and the company’s insider trading policy. The number of shares repurchased and the timing of repurchases will depend on several factors, including, but not limited to, price, trading volume, and general market conditions, along with IZEA’s working capital requirements and general business conditions. The share repurchase program does not obligate the company to acquire any specific number of shares in any period and may be expanded, extended, modified, or discontinued at any time.
About IZEA Worldwide, Inc.
IZEA Worldwide, Inc. (“IZEA”) is a marketing technology company providing software and professional services that enable brands to collaborate and transact with the full spectrum of today’s top social influencers and content creators. The company serves as a champion for the growing Creator Economy, enabling individuals to monetize their content, creativity, and influence. IZEA launched the industry’s first-ever influencer marketing platform in 2006 and has since facilitated nearly 4 million transactions between online buyers and sellers. Leading brands and agencies partner with IZEA to increase digital engagement, diversify brand voice, scale content production, and drive a measurable return on investment.
Safe Harbor Statement
Statements in this press release that are not based on historical fact are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “goal,” “estimate,” “anticipate” or other comparable terms. Examples of forward-looking statements include, among others, statements we make regarding expectations concerning the share repurchase program and market valuations of IZEA’s business and assets.
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; inability to finance growth initiatives in a timely manner; 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.
FAQ
What is the value of IZEA's share repurchase program?
When was IZEA's share repurchase program announced?
How will IZEA execute its share repurchase program?
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What are the factors affecting the timing and number of shares repurchased by IZEA?
