Q4 2021 IZEA Worldwide Inc Earnings Call
Breathing bucket until a Z a worldwide incorporated fourthquarter, 20th 21 earnings call. At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero and your telephone.
He pads. Please note. This conference is being recorded I will now turn the conference over to Ryan scrap.
President and Chief operating officer. Thank you you may begin.
Good afternoon, and welcome to ice Tea is 242021 earnings call I'm, Ryan shrimp, President and Chief operating officer at Ikea and with me on the call. Today is is the Chief Financial Officer, Peter Biery, and I Z, a founder Chairman and Chief Executive Officer, Ted Murphy, Thanks for joining us.
Earlier. This afternoon the company issued a press release with details pertaining to our fourth quarter and full year performance for 2021.
If you'd like to review those details all of our Investor information can be found on a Z as industrial relations website at <unk> Dot Com I Z E. A dot com forward slash investors.
Before we begin please take note of the Safe Harbor paragraph included in today's press release, covering the company's financial results and be advised the during today's earnings call. Our management team will discuss as he is business outlook and made forward looking statements. These statements are predictions based on our team's expectations as a.
Today that are subject to inherent risks and uncertainties and should not be unduly relied upon.
Actual events results or trends to differ materially from our forecast due to a number of factors, including those mentioned in our most recently filed periodic reports with the S E C.
The company and our management team assume no obligations to update any forward looking statements made in today's call.
In addition, our update today will refer to a certain non-GAAP financial measure adjusted EBITDA and other key financial metrics, such as gross billings and bookings.
A detailed explanation of these measures is included in our earnings release and in our most recent Form 10-K .
With the appropriate disclosures taken care of I'd now like to turn the call over to my colleague and I Z as Chief Financial Officer, Peter <unk> Peter.
Thank you Ryan and good afternoon, everyone.
Four I review, our fourth quarter results I'd like to refer you to our Form 10-K for the year ended December 31 2021.
For detailed disclosures of adjustments made previously it should financial statements, which impacted certain liabilities costs and related revenues associated with our managed services business.
And the Form 10-K , we restated previously issued interim financial statements, which were included in our quarterly reports on form tend to for the periods ended March 31st June 30th at September 30th all in 2020.
Previously issued financial statements for the fourth quarter and.
In full year and December 31st 2020, and all interim periods for 2021 were not materially impacted and did not require restatement.
It is essential to note that these adjustments to dot affect the total cost of revenues to be recognized they only altered the timing.
The aggregate adjustments reduced gross revenues by 362000 or less than 2% of revenue for the year ended December 31st 2020, and the total impact of the adjustments on 2021 gross revenues was a positive 157000.
All comparisons and our earnings release for the fourth quarter of 2021 are made on it has adjusted basis.
Now I'll turn to our operating results for the quarter.
Total revenue for the quarter of 2021 was 10.3 million or 62% higher when compared to Q4 of 2020 with $9.9 million coming from our managed services business and 449000 coming from ourselves offerings.
<unk> services revenue increased by 4 million or 69%.
<unk> revenue declined by 89000 or 17% both.
Both compared to the prior year quarter.
As we previously announced managed services bookings that came metric measuring sales orders, we received less any cancellations or refunds given during a period.
Total $10.6 million for the fourth quarter of 2021, an increase of 164% compared to four of 2020.
The trend towards larger brands, increasing their marketing spread with Isaiah also continued during the fourth quarter, because we added several new fortune 500 customers alongside repeat business from three fortunate 10 partners. These.
These factors taken together with efforts put forth by our team to fulfill campaigns by the end of the year resulted in the increased managed services revenue.
We recognize revenue on most of our managers as contracts overtime based on the completion percentage and delivery timing can vary greatly.
We're winning larger contracts with new and repeat customers in these contracts take longer to complete.
This is lengthened the average period for revenue recognition from six to seven months a year ago to approximately nine months currently.
<unk> revenue, which consists of license fees self service marketplace spend fees and other fees for $89000 lower for the fourth quarter of 2021 compared to Q4 of 2020.
While overall licensee account continues to grow a recorder total license fees declined year over year due to the lower competitive pricing that we introduced in the summer of 2020.
Its 54% compared to 56% in the prior year quarter.
Expenses other than the cost of revenue totaled $5 5 million for the current quarter compared to $4 7 million for the prior year quarter.
<unk> and marketing costs were $2 $2 million during the quarter 328000, or 18% above the comparative quarter due primarily to sales compensation, which varies with higher bookings and increased marketing costs associated with driving customer growth.
General and administrative costs totaled $3 $2 million during the quarter 723000, or 30% above the prior year quarter, due primarily to higher compensation and contractor costs to support operations and it investments.
We generated 312000 net income for the fourth quarter of 2021, or <unk> <unk> per share compared to a net loss of $1 1 million in the prior year quarter or negative <unk> <unk> per share.
Adjusted EBITDA was positive 549000 for the fourth quarter compared to a negative 512000 for the prior year quarter, an improvement of approximately $1 1 million.
As of December 31, 2021, we had $75 4 million cash on hand up about $1 million from the end of quarter three.
Due to positive EBITDA during the quarter and cash advances from managed services customers ahead of payment to creators.
We do not have any debt on our balance sheet.
As previously announced in June 2021, the company entered into a new two year at the market sales agreement under which it may offer up to $100 million of its common stock from time to time.
That agreement provides us with financial flexibility moving forward.
The company has not sold any shares to date under that agreement.
With cash on hand, and continued strong growth in our core business and a financing vehicle in place should we require it we're in a solid position to execute on business growth and opportunities that may lay ahead.
With that I'll turn the call back over to Ryan.
Thanks, Peter 2021 was truly our breakout year as a company.
All in all we set new records in nearly every measurable facet and it served as a positive stepping stone towards ideas broader growth strategy shared in previous earnings calls.
From our best quarter of bookings ever to delivering an all time full year revenue record. It's clear that I see is investments of time capital and talent are providing demonstrable results for our shareholders.
I'd like to share some insight on how we continue to build positive momentum during fiscal year 2021, while also further establishing the foundation for the future of things to come.
First let's start with a Z as go to market strategy.
During the course of 2021, we saw a variety of sectors driving ideas growth some of which began investing in influencer marketing more notably due to factors created by the pandemic and have since carried forward as a force multiplier as the world begins to reopen the new.
<unk> of our business is fortune 10 to fortune 500 brands across five core segments consumer electronics Entertainment and media.
Packaged goods.
Retail and grocery and social media platforms.
We're very proud to be the partner of choice for household named companies, who entrust our managed service team and who license our software products to develop innovative campaigns across the trader economy.
When we win or expand business with these types of customers many of whom conduct extensive competitive reviews and vetting. We believe in not only emphasizes ideas value proposition, but it validates our distinct market strategy long term as we seek to consolidate market share.
To that end when you read press releases or heard commentary during this call regarding clients of our managed service practice or SaaS customers, who licensed <unk> unity suite, we intentionally refer to these wins by sector and rank instead of brand or corporation name due to industry.
Tendered confidentiality clauses, unless we have permission to disclose from those clients.
Don't get us wrong, we loved the shelf these names from the hilltop, but in our effort to provide visibility around momentum to our shareholders. We feel it's important to highlight particularly notable commitments and as detail of a manner as possible whilst protecting our client's confidentiality in a public setting.
As you likely read in our various press releases throughout the last year idea is actively expanding into new geographies, new sectors and entirely new types of clients. Thanks to the hard work of new and existing team members alike.
We are assertively, yet prudently investing in a combination of personnel performance marketing and technology research and development to drive our growth both near term and long.
Many of these initiatives will be 2023 M beyond story lines, but with a critical foundation, having been established during 2021 and throughout this year in 2022 well.
Well, we don't have time to recap everything today.
We'd like to take this opportunity to remind shareholders that all of our exciting news can be found on our Zia dotcom forward slash investors, including the opportunity to subscribe to automated email alerts whenever we make important announcements that you may be interested in.
That being said plan on hearing more from us on many of these exciting initiatives that are actively underway, whether as part of our emerging market strategy that has as you're entering the Chinese market for the first time to our new med <unk> offering that brings our 15 years of experience relationships and tech.
Allergy to the meta versus in order to embrace the full promise of web three to the continued expansion of our solution partner program and industry, leading coalition of technology and service providers that enhance the campaigns that we build for our clients.
It's a tremendously exciting time to be an idea, but it all starts and ends with our premise of involving cutting edge technologies and every aspect of our business.
I see it created the Influencer marketing industry in 2006 by launching the very first platform to pay Influencers and we haven't stopped innovating sense to.
To that end, we are actively building the next generation of our enterprise software, while simultaneously, bringing our marketplace efforts aligned to shake front and center in the coming months.
We also believe there might be entirely new ways to serve the creator economy. Given the continued large amounts of money flowing into the space globally, particularly given that there are simply more prospective customers who are creators on an absolute count basis than the brand marketing ecosystem itself.
Putting both universes under our proverbial roof creates limitless potential these.
These investments have multi business unit impact for idea and that they drive software and transactional revenue while also working to lower the cost basis of our managed service business unit by increasing operational leverage.
Lastly, I wanted to share some insight on our point of view regarding organic versus inorganic growth.
Zia has been acquisitive historically, the lion's share of our growth in recent years has been driven solely by organic means.
Therefore, our philosophy remains to be primarily focused on ourselves, while also being opportunistic to strategic inbound M&A given our unique status of being the only public company dedicated to Influencer marketing.
Ultimately, it's our belief that consolidation on a multi continent and or a global basis is inevitable and we feel that idea is well positioned to lead not follow that reality.
One of the key ingredients of our success in recent years has been our role in the war on talent.
Zia aspires to be the singular player in the trader economy, where our industry's best talent lives and thrives.
From client facing positions to those in our technology work groups. We have greatly benefited from the net gain of talented individuals seeking to showcase themselves on a bigger stage and abandon their previous roles at competing smaller startups there.
Their decision to join team idea is due in part to our financial stability, our access to resources. The company's continued positive performance and most importantly, our growth potential in the years ahead.
We're so glad to have them here and as active co owners of the company through our compelling team member equity program.
For some closing remarks on 2021 and a forward looking view of our business through his eyes I would now like to turn the call over to my colleague and as the as founder Chairman and CEO Ted Murphy Ted.
Thank you Ryan at the end of 2020, our team set forth a goal to deliver at least 30% annual revenue growth per year for each of the next three years or a 30% compound annual growth rate.
Revenues in 2020 were approximately $18 million.
Based on that rate of 30% growth per year. Our goal was to achieve revenues of approximately $23 8 million in 2021 and $31 million in 2022.
I shared this goal with our investors in Q1 of 2021 at a time when many were still wearing masks and COVID-19 vaccine distribution was limited.
There were a variety of macroeconomic unknowns at that time much like there are today, but we still put forth a bold target.
A target that would require our entire team to work together and execute on a level, we never had before.
Not only did we hit our 2021 goal, we significantly beat it with organic annual revenue growth of 67% compared to 2020.
We are nearly a full year ahead on the three year revenue growth plan I outlined this time last year and as a result, we were able to deliver a profitable Q4 and smaller loss for the full year.
During our all company meetings I, often talk about the concept of invisible lines in.
Invisible lines or the unseen barriers that seem difficult sometimes impossible to cross.
Keep us confined to a box down by what we know to be true or possible.
At one time $5 million in revenue with an invisible lines for ICF.
Then $10 million, then $25 million last year, we smash through the $25 million revenue line, then continued on to smash $30 million.
2021 set a new standard for ICF.
A new norm for what we know is possible along with creating the infrastructure and people to support that level of revenue.
Yes, we are well ahead of our three year plan, but we have zero intention of slowing down.
Quite the opposite.
We have begun to demonstrate what we can accomplish when meaningful investments are made and our intent is to get even more aggressive with further strategic spending as the year progresses.
That means expenses will grow in 2022, just as they did last year.
We will spend more in sales marketing and technology the areas that give us operational leverage.
We have $75 million in cash and we intend to put a portion of that to work in 2022.
New markets will take time to mature as well new products and we expect that we will be investing ahead of their contribution.
Despite the significantly tougher annual comparison and higher baseline revenue, we are still targeting 30% annual revenue growth in 2022, which translates to a $39 million target this year.
This target is aligned with our goal to continue gaining share in the influencer marketing industry, which E. Marketer predicts will grow by 11% in the U S. In 2022.
While there are unprecedented global financial and political factors, we must continue to monitor and adapt to.
We believe ICF is well positioned to deliver on our revenue growth goals. This year, given the strong bookings throughout last year and a record breaking Q1 bookings to start 2022.
The best is yet to come.
We believe that we are nowhere near our full revenue potential.
We are in a growing industry that will expand as new platforms in the next generation of creators is born.
We forget that over 40% of the global population still isn't on social media.
Each progressive generation of children will drive further adoption of social media platforms of all types and each platform brings a new crop of Influencers, who are coveted by brands.
IV award out of the gate in Q1.
It is not only the best Q1 managed services bookings in company history.
It is the best quarterly bookings ever.
In a quarter that is historically been our lowest bookings quarter of the year.
Last week, we announced that managed services bookings for the quarter have surpassed $11.5 million compared to $6 $4 million in 2021.
An increase of over 80% year over year.
We will release the final managed services bookings number next week.
While 2022 bookings are off to a tremendous start we have yet to fully recognize the efforts from last year's contracts.
<unk> revenue at year end was $11 $3 million up 71% from $6 $6 million at the end of 2020.
The unearned revenue from 2021 should be recognized over the coming quarters in 2022, and the fast start and current pipeline gives us confidence in our ability to grow revenue in 2022 last.
Last year, our goal was to stabilize SaaS licensing revenue after making sweeping changes in Q3 of 2020 and lowering our pricing plans across the board we've.
We were able to do that by the back half of 2021 and in the process. We increased the number of SaaS customers that we are serving to record heights.
We believe that the addressable market for Influencer marketing software and services is broad and our intent is to diversify our customer base as much as possible.
We intend to do so at both ends of the spectrum.
Enterprise Fortune 500 clients with entire teams focused on Influencer marketing to small startups, who just need an easy way to get their first campaign up and running.
This year is going to be a big one Fraser on the technology front.
And that starts this week with the release of a completely redesigned checkout experience and shake.
We have made it easier than ever to find and hire an influencer on the platform and we are continually refining the offering.
And a few more weeks, we will deliver a massive improvement to shape up which will further guide people through the entire order process.
These changes are in advance of much larger fundamental shifts to the shape platform, including the introduction of a subscription model for both creators and marketers as well as an iOS app in the back half of this year.
Eylea X is also getting some upgrades later this quarter, we will unveil a new discovery experience and <unk> X that takes advantage of the growing capabilities of Brian grass.
And later this year, we will release, an entirely new enterprise Influencer marketing platform.
We are building a revolutionary application. So the next generation of Influencer Activations.
Platform with flexibility to accommodate all of that went three O will come with a focus on social commerce and measuring influencer all why.
It is a radical departure from bolt ICF X and shake and something our entire team is incredibly excited about.
As transformational as 2021 was 2022 is shaping up to be an even more monumental year for our company.
Our leadership team remains committed to growth innovation and expansion of our geographic footprint.
This mindset has served us well over the past year, and we will continue making investments in building our future.
We are thankful for your support in 2021 and look forward to reaching new heights in 2022 and beyond.
Thank you all for joining us today I'll now open up the call for Q&A.
Thank you as he would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
You May press Star two if you would like to remove your question from the queue.
And for participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys, one moment, while we poll for questions.
Our first question is from Jon Hickman with Ladenburg Thalmann. Please proceed.
Hi.
Okay.
Hey, Thanks for taking my question.
Ted or I don't know who wants to take this but could you elaborate a little bit on your expectations for operating.
For Radian expense growth.
Last year was up like I don't know 10% to 15%.
Cause that.
What you expect I mean can you give us.
A little more.
Cadence there.
Yeah.
Yeah.
We're not providing any formal guidance on expense growth but.
If you look at the trailing four quarters and how that has progressed over time I would expect that it's going to continue along a similar path.
We're not expecting any.
Massive increases but more of it.
Steady progression as we continue to build out our team and invest.
And marketing.
Can you tell us how many sales guys have now.
Sales personnel.
I'm going to toss it over to Ryan.
Yeah, I mean the.
We don't really disclose the exact number but just say around 30 right now John .
Okay.
And that's up.
10, or so from last year.
We've had a different change outs, but yes by and large directionally that the staff is slightly larger than it was this time last year.
The biggest difference could be entirely candid is that we're seeing a lot of top performers join us to carry a larger sized quotas than we've had historically before and so therefore, we can also look to achieve more on a per person basis going forward.
Okay.
Thanks, that's it for me.
John .
Our next question is from Elliot Elliot.
Elliot.
Please proceed.
Just to elaborate on that Ryan question for you per person revenue do you guys have a goal that you've set.
Her safe.
Sales associate on the 30 <unk>.
You wanted me.
Elliot nice to meet higher yeah, we actually.
Have a very unique system at ICR that allows sales professionals to join us and have quotas that are directly tied to a transparent compensation system. So on average there is no set number per se per person it allows us to do.
People are a variety of points in their careers and therefore also adjust our cost and risk structure proportionately to that owned individuals. So we have some people that will contribute millions or low tens of millions and we have individuals that will contribute less but our cause.
Structures.
Our Thai proportionally to that contribution.
How's us to have.
A much more diverse risk pool than you'd normally see in a traditional organization.
Okay. One more question on that do you guys have any kind of.
In house like you'd call them Super Influencers.
[laughter].
Murphy, having won so many awards last year is quite the influence there.
Great.
Oh, yes, one of the things that we are seeing that you may have noticed if you are searching for different terms about I V.
Our influencer or content marketing on Google or Bing is that the amount of thought leadership content and research that we're creating each and every single day is really starting to dominate.
The organic search landscape for us so our thought process. There is that you didn't you can shape influenced in a variety of ways not the least of which is top of mind awareness, but also on keywords that are deeper for what our customers are our brands and our agency club.
They're looking for and be able to be first on the line to be able to serve that need for them and be a potential partner.
Okay excellent excellent speaker and back to one more question. When you had your initial opening speech.
Mentioned meta mod and meta versus yes.
Yes, our those trademark names that you're looking at are viewed trademark those through idea.
So I wish we didn't own the meta versus we do own mouth guard.
And I and you actually can go to meta Mod dot com and specifically the offering that we're putting out there. The idea really is is an extension of the IZEA brand. We look out kind of perspective of that we've done. This now literally 4 million times in terms of collaborations so we can.
Bring all of that expertise and look at it from a strategic and execution in our measurement perspective for that next generation of Influencer activation that Ted was talking about.
Okay, now I want to ask Mr or via a couple of questions. Thank you Ryan.
Youre welcome.
Okay, and just to clarify on meta model.
That application is in progress and under review.
Okay, and then <unk>.
Congratulations on an excellent quarter in the one coming up.
Thank you I appreciate that yes, and congratulations on the.
Your initial remarks, when you spoke here a few minutes ago on the all company meeting. He said then visible lines you guys are more aggressive now how often do you have those team meetings.
We typically have those about every six weeks.
Okay.
And.
Here's getting in tomorrow, there that made it a whole company.
You've announced probably.
I'm going from memory six months ago that you had an ATM shelf offering is there any plans to pull that shelf offering are lower the share count that.
But you are.
Initially.
Made public.
That makes that makes general shareholders' nervous.
Myself.
That is there is no current plans or announcements regarding.
The shelf itself, although as Peter mentioned in his remarks, we have not yet touched that shelf at all so that's out there to provide some flexibility for us we have now sold a single share off of that shelf.
And.
We currently intend for that to remain out there and have that provide some flexibility for us if we should need it in the future but.
We are being judicious in the way that we.
We are looking at potentially accessing that capital.
Okay, and our last call that I had with you turn it over to the CFO what is the share count as of today.
This is a perfect question for the CFO .
Yes, Peter are you there yes.
60 to one.
176 million, okay, Okay pretty.
Pretty much consistent with the last quarter.
Okay. One more question for you Mr. Murphy.
Do you remember the old Goodyear blimp.
I do.
Are you guys still there.
I'm here, Yes, do you remember the old Goodyear blimp.
I said, yes, I do Oh, Okay, I didn't hear that I'm kind of in a concrete structure here.
I was wondering if we could like have some cause it's awful expensive copy.
Copies.
You said it was fiber or something they had a super bowl out here not last year, but the year before maybe do a goodyear babies do a blend with the IV a streamer.
Or some small planes, but some idea streamers to get our name out there.
We.
I appreciate.
Yeah.
Okay.
Driving new guys Crazy today [laughter].
We.
In all seriousness that is a big part of our strategy moving forward is just getting much more aggressive on the marketing front. So.
We about building out our marketing team.
We are not necessarily looking at at Bloom says the most.
Cost effective marketing vehicles for us, we're really focused more on performance marketing and drove our cost per active customer acquisition down.
But we are going to be investing more heavily in and paid media and to Ryan's point, we're investing significantly more in content production we have.
Been building out an entire content marketing team those guys are creating some fantastic content every single day.
And we're going to continue to invest money there because we've seen that that is driving results for us.
Okay, So I'm going to leave it on this one more a little deal for you guys. When you have your next six week gene meeting.
Maybe we can get an artist onboard.
Where do you like.
You know one of the Argos one of them one of the song writers and get an IV a theme song going.
All right.
I'm really thrilled I'm throwing it out there for you guys.
We hired a creator from shape to do the backing music track to our discovery launch last year Elliot. So okay. We do that stuff all the time, we love to feature our creators wherever we can.
Okay, I'm, not a social media Guy and I never will be but you guys are doing a beautiful job and.
It's been a great conference. Thank you very much for taking my questions and put me at ease a little bit.
Thank you Leo.
Yeah.
Discounted blimp, let us know.
Okay.
[laughter] alright. Thanks, Thank you very much for the time today.
Yes.
Our next question is from Sean give me with Alliance. Please proceed.
Hum.
We have lost Sean cilia women led to the next question and that is from Pablo Neruda private Investor. Please proceed.
Alright, Thank you for taking my question and good quarter.
I'm trying to better appreciate your business I was wondering.
What is the average spend by brands on your typical campaign are we talking about 10, $20000 or maybe it's 100 or more.
We have certainly moved up over time.
I believe that we are currently.
Those are two the $100000 Mark and then the $20000 Mark.
But that changes from quarter to quarter, depending on the size deals that come in from.
From any given customer on on our platforms like shape. The spend is much smaller you're typically talking hundreds or low thousands of dollars in terms of the spend there but for our managed services customers.
They are committing hundreds of thousands to millions of dollars with us typically on a campaign.
Got it got it and as far as that typical campaign.
How many what is your typical number of Influencer theyre involved is that more like a couple or is it like a dozen or more.
It is certainly more than a dozen some campaigns or are much larger where they're using smaller influencers to produce more content and others are more focused on celebs or web celebs, but even then it's typically not just like one or two people that they are engaging their they are engaging many.
People in that campaign.
That's helpful. Thank you and I know I know in prior quarters, you you've provided this kind of mix, but the what is your revenue mix in terms of new versus repeat business. In fact, I think at the start you mentioned that that that's been the case. So I'm just kind of curious what that mixed level is.
Yeah that also kind of changes.
Quarter to quarter I believe right now it hovers about 60 40, Ryan do you want to chime in on this.
No that's spot on Ted and I, what I would say is that from quarter to quarter. The effect is really a variance of 20 points either way with some quarters being more emphasized on our new and others emphasized on our existing Pablo and what I will say is that we're really happy on the absolute count basis that we've seen.
Really nice influx of net new customers overall across all of our lines of business. During 2021 that would be inclusive of our managed service unit as well as our various software offerings.
Got it and that for example that 60% is that reference to new or to repeat.
That would be it does reference to do.
Okay. Thank you.
Okay, very good and I know I know that with shape, you've mentioned you mentioned earlier that it.
It sounds like quite a bit of investment that's going on in there related to to the interface. The iOS later this year, but I also know from your prior quarters, you've mentioned that you've had some inventory challenges. So I'm curious is there a sense of.
What the plan is with that as far as profitability because I assume.
But that's not profitable yet correct.
Yes that is correct I mean, right now shape does not have much of a material impact on revenue and we're continuing to have some work to do there I think thats much of that comes down to the friction between buyers and sellers at various stages of the purchasing process. So.
The new checkout that we just launched today should help to reduce some of that friction as well as the updates to shake bot that we're going to be releasing next week.
As we look to the back half of this year shake is going to play a bigger role in our future and we're going to bring it into more of a spotlight in terms of the.
A way that we market ourselves and what people see when they come to Isaiah dotcom.
Got it got it last question and and hats off to the team for a positive EBITDA this quarter, but I know that just looking back at the numbers that if the negative EBITDA for some time now and and it's been unprofitable on a annual basis as well so I'm curious what the plan is.
He is going forward and the timeline for profitability on an annual basis.
Yeah, So unprofitability.
We delivered profitability clearly in Q4, but that was not a guiding light the focus of the team was really on growth and expansion of the customer base and profitability was a byproduct of the team over delivering on.
On that growth.
We made investments last year, we're going to continue to make more aggressive investments this year to capture more share and that includes expanding our presence in China.
And Canada, launching in China, and expanding to other geographies.
As well as the launch of a new platform and major upgrades to our existing platforms like shape. So.
Possible growth is going to continue to be the priority, but I would say that to the extent that we continue to outperform and it will lessen our losses or <unk>.
Lead to profitability quicker.
Got it got it and one more.
Ted and I apologize.
In the prior.
Response to the other gentlemen, you mentioned, how you'll be focusing on content production can you give us a sense of what the kind of what the returns are in that new revenue line and when and what how that differs versus your other businesses.
I think that well I was actually referencing content production for ICF. So we produce content every day as part of our organic search strategy.
And that is really to combat what we see as ongoing increases in cost per click for paid search marketing.
Accurate cookie, referring to okay very good. Thank you for the for the response I appreciate it.
My pleasure.
Our next question is from George <unk> with who is a private investor. Please proceed.
Hey, guys long time, congratulations on a great quarter.
Oh, My gosh blast from the past Hello, George.
Yeah great.
Great job to the team and gave the cause.
Gratulation to everybody.
Good accomplishment.
If I could.
About the revenue and the bookings how do you see the distribution of revenues.
By quarter this year I mean, it's been.
Schiffli 'twenty to 'twenty four 'twenty, 628%.
Range, how do you see coming out of this year.
A lot of that really comes down to the timing of individual contracts and when that work is.
As scheduled and done.
I don't know if you saw the press release that we.
Provided today, we also provided a chart there that shows the relationship between bookings and revenue and there's a pretty wide gap still between the revenue line and the bookings line.
We expect that to begin to catch up a bit.
But we're also continuing to grow bookings so that's going to have an impact on that lag moving forward.
So.
How should we think about the breakdown by quarter is it just.
What kind of ranges do you guys think about it.
In terms of the.
We're not providing any sort of guidance on on a quarter by quarter basis.
We're more looking at this on an annual basis and part of that is is because of that lag time and unpredictability of.
Of certain campaigns.
Right.
Let me ask you mentioned in your prepared remarks.
The revenue goal for 2022.
The revenue bookings go you mentioned as Youll go.
The $39 million number.
Yes.
That is it that as a revenue goal.
Okay.
And I just want to validate one more thing in your opening comments. You said Q1 is the best managed services number bookings in the history.
Across the board numbers in history.
Paul This is Kevin.
Our best Best Best Q1 ever and best quarter ever.
Okay did I lose either.
Well if you allow me should poetic license.
On that run rate, you're going to cross 39 million all day long.
Yeah.
Recognize.
Yes, there is a there is a lag to those bookings but.
Yes.
We continue that rate.
Sure.
You would.
Yeah.
We would likely cross that number yes.
Alright, congratulations say, hi to everybody, especially to the family and do that.
Joe.
Thank you I appreciate it.
We have reached the end of our question and answer session I would like to turn the conference back over to Ryan for closing comments.
Thank you Sherry and thank you everyone for joining us. This afternoon for your continued support of ICR.
And I'd like to take the opportunity to remind everyone that you're welcome to subscribe to our email newsletter for investors. That's available for you and I see a dot com forward slash investors.
<unk> time.
Well I will talk to you soon.
Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.
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