Core Insights - BuzzFeed is developing a new social media platform aimed at countering negativity on the internet, focusing on interactive storytelling and new content formats [1][4] - The platform will incorporate AI tools to promote self-expression and connection, while being human-curated [2][5] - A launch date and official name have not been announced, but users can join a waitlist for testing [3] Company Strategy - The new platform is part of BuzzFeed's manifesto for a better internet, which criticizes existing social media giants for prioritizing addictive algorithms over user well-being [4][5] - BuzzFeed aims to provide a refuge from misinformation and doom-scrolling, offering a humorous take on current events and trends [5] - The company has previously struggled with monetizing its content, as seen with the shutdown of BuzzFeed News in 2023 [6] Industry Context - BuzzFeed is not alone in addressing the negative aspects of social media; other apps like Communia and Daylyy are also emerging with similar goals [6] - The challenge of transforming social media to reduce negativity requires collective efforts across platforms [7]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The company delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Core Insights - BuzzFeed, Inc. has experienced a significant stock price increase of over 300% in 2024 following a challenging SPAC merger in 2021 [1] - The company's strategic pivot towards integrating AI tools into its operations for generating quizzes, articles, and other digital content has been a key factor in this resurgence [1]

Market Overview - The conclusion of the 2024 U.S. presidential election has significantly boosted market sentiment, referred to as "animal spirits," leading to a surge in stock prices [1] - Factors contributing to this rally include a declining inflation rate, increased spending in AI and data centers, and a dovish stance from the Federal Reserve [1] Cryptocurrency and Small Caps - Bitcoin and related assets, such as MicroStrategy, have experienced substantial price increases, with Bitcoin surpassing silver in market capitalization [2] - Tesla has achieved its largest five-day rally in four years, while the ARK Innovation ETF rose by 16% in a week, indicating a strong risk-on environment [2] - Small-cap stocks have also rebounded to all-time highs after a prolonged period of underperformance [2] BuzzFeed (BZFD) - BuzzFeed is a media organization known for its engaging and viral content, targeting a younger audience through a mix of pop culture and journalism [3] - The company has faced significant challenges since 2021, with its stock price plummeting from nearly $60 to below $1 [4] - Vivek Ramaswamy has acquired approximately a 9% stake in BuzzFeed, expressing belief in the company's potential for recovery and the need for a strategic shift [4] - Ramaswamy's involvement may bring a new direction to BuzzFeed, especially as traditional media faces declining viewership [4] GameStop (GME) - GameStop is recognized as a leading video game retailer, but it is also known as the "king of meme stocks" on Wall Street [7][8] - The company has experienced significant short squeezes, including a notable 1600% gain in early 2021, despite skepticism regarding its fundamentals [8] - GameStop's management has effectively capitalized on its meme status by selling shares during price spikes, resulting in a substantial cash reserve [9] - This cash position provides GameStop with the flexibility to invest in its business, explore new ventures, or distribute special dividends [11] Conclusion - The recent U.S. election has catalyzed a bullish sentiment in the market, particularly benefiting meme stocks like GameStop and BuzzFeed, which present potential investment opportunities [12]

Financial Data and Key Metrics Changes - In Q3 2024, the company reported revenues of $64 million, a 7% increase year-over-year [10][16] - Adjusted EBITDA reached approximately $11 million, a nearly fourfold increase compared to Q2 and a $10 million improvement from the previous year [11][18] - Cash balance grew by $8 million from Q2 to $54 million [11][19] Business Line Data and Key Metrics Changes - Programmatic Advertising revenues grew 9% year-over-year to $17.3 million, accelerating from a 3% growth in Q2 [10][16] - Affiliate Commerce revenues surged by 53%, driven by a record Prime Day performance [10][16] - Overall advertising revenues declined by 3% year-over-year to $26.1 million, while content revenue decreased by 7% year-over-year to $17.4 million [17] Market Data and Key Metrics Changes - Audience time spent increased by 13% quarter-over-quarter and 2% year-over-year to 80 million hours, marking the first year-over-year growth since Q1 2023 [9][14] - The BuzzFeed brand led its competitive set in audience engagement, particularly among Millennials and Gen Z [9] Company Strategy and Development Direction - The company is focused on stabilizing its business and has reorganized around high-margin business lines, specifically Programmatic Advertising and Affiliate Commerce [8][10] - Future plans include updates on debt management and strategic reviews initiated with financial advisors [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in establishing a solid foundation for future growth despite ongoing challenges [11][12] - The company aims to drive consistent top-line growth and expanded profitability in 2025 and beyond [15] Other Important Information - The company has implemented a cost savings plan that contributed to improved profitability [18] Q&A Session Summary - The Q&A session was not included in the provided content, thus no questions or answers can be summarized.

Revenue Performance - Revenue for Q3 2024 was $64.32 million, up from $59.98 million in Q3 2023, representing an increase of 5.6%[15] - Total revenue for Q3 2024 was $64,320,000, a 7% increase from $59,978,000 in Q3 2023, while total revenue for the nine months ended September 30, 2024, was $156,007,000, a 12% decrease from $177,014,000 in the same period of 2023[188][191] - Revenue from the United States for the three months ended September 30, 2024, was $61.67 million, up from $53.66 million in 2023, an increase of 15.0%[52] - International revenue decreased to $2.65 million for the three months ended September 30, 2024, from $6.32 million in 2023, a decrease of 58.1%[52] - Advertising revenue for the three months ended September 30, 2024, was $26.07 million, down from $26.92 million in 2023, a decrease of 3.1%[51] - Content revenue for the three months ended September 30, 2024, was $17.36 million, a decrease of 6.8% from $18.62 million in 2023[51] - Commerce and other revenue increased significantly to $20.90 million for the three months ended September 30, 2024, compared to $14.45 million in 2023, an increase of 44.8%[51] Income and Loss - Income from continuing operations for Q3 2024 was $3.58 million, compared to a loss of $6.73 million in Q3 2023[15] - Net income attributable to BuzzFeed, Inc. for Q3 2024 was $2.09 million, recovering from a loss of $13.72 million in Q3 2023[15] - Basic net income per share from continuing operations was $0.05 in Q3 2024, compared to a loss of $0.33 in Q3 2023[15] - The company reported a net loss of $35,729,000 for the nine months ended September 30, 2024, compared to a net loss of $78,029,000 for the same period in 2023[16] - The company reported a loss from continuing operations of $21,448,000 for the nine months ended September 30, 2024, compared to a loss of $47,631,000 for the same period in 2023[171] - The net income (loss) per common share, basic, attributable to BuzzFeed, Inc. for the three months ended September 30, 2024, was $0.06, compared to a loss of $(0.38) for the same period in 2023[94] Expenses and Cost Management - Total costs and expenses decreased to $60.74 million in Q3 2024 from $66.71 million in Q3 2023, a reduction of 9.0%[15] - The company reported a significant reduction in sales and marketing expenses, which fell to $4.75 million from $8.25 million year-over-year, a decrease of 42.5%[15] - General and administrative expenses decreased to $14.70 million in Q3 2024 from $18.75 million in Q3 2023, a decline of 21.5%[15] - Sales and marketing expenses decreased by $3.5 million, or 42%, for Q3 2024, and by $11.9 million, or 39%, for the nine months ended September 30, 2024, reflecting cost-saving measures[199] - General and administrative expenses decreased by $4.0 million, or 22%, for the three months ended September 30, 2024, with a decrease in rent expense of $1.6 million[201] - General and administrative expenses decreased by $15.9 million, or 26%, for the nine months ended September 30, 2024, driven by a $4.9 million decrease in rent expense[202] Strategic Initiatives and Future Outlook - The company is focusing on cost-saving measures and strategic adjustments to improve financial performance amid market uncertainties[6] - Future outlook includes addressing macroeconomic challenges and enhancing product offerings to drive engagement and revenue growth[7] - The company continues to evaluate strategic changes, including asset divestitures and restructuring, to improve its financial condition[31] - The company plans to implement a 16% reduction in its workforce to enhance agility and profitability[101] - The company expects macroeconomic factors, including elevated interest rates and economic uncertainty, to continue adversely affecting advertising and content revenue in 2024[169] Stockholder Equity and Debt - The total stockholders' equity for BuzzFeed, Inc. as of September 30, 2024, was $71,680,000, reflecting an increase from $67,179,000 at June 30, 2024[18] - The accumulated deficit for BuzzFeed, Inc. stood at $652,895,000 as of September 30, 2024, compared to $654,984,000 at June 30, 2024[18] - The company had approximately $118.8 million aggregate principal amount of convertible notes outstanding as of September 30, 2024, with an effective interest rate of 16%[82] - The company repaid approximately $30.9 million of unsecured convertible notes on March 7, 2024, and $0.3 million on June 21, 2024, leaving approximately $118.8 million outstanding as of September 30, 2024[27] - The company expects holders of the notes to deliver a Put Notice on November 22, 2024, which would require repayment of $118.8 million in principal and approximately $4.7 million in accrued interest[28] Legal Matters - The Company has ongoing legal matters related to the Video Privacy Protection Act, with claims seeking $2,500 for each alleged violation[118] - The Company settled a lawsuit related to the California Invasion of Privacy Act on July 9, 2024[128] Other Financial Metrics - The company generated cash used in operating activities of $16,124,000 from continuing operations for the nine months ended September 30, 2023, compared to cash used of $2,363,000 in the same period of the previous year[21] - The Company recognized total other income of $2.226 million for the three months ended September 30, 2024, compared to an expense of $(1.307) million for the same period in 2023[140] - Cash paid for interest was $6.75 million for the nine months ended September 30, 2024, compared to $9.6 million for the same period in 2023[138]

Financial Performance - BuzzFeed reported Q3 2024 revenues of $64.3 million, a 7% increase year-over-year[2]. - Adjusted EBITDA reached $10.5 million, a nearly four-fold increase compared to Q2 2024 and a $10 million improvement year-over-year[3]. - Net income from continuing operations was $2 million, a $14 million improvement from a net loss of $12 million in Q3 2023[2]. - Total revenue for Q3 2024 was $64,320, a 7% increase from $59,978 in Q3 2023[17]. - Net income from continuing operations improved to $1,968, a 116% increase from a loss of $12,049 in Q3 2023[20]. - Adjusted EBITDA for Q3 2024 was $10,540, compared to $341 in Q3 2023, marking a significant improvement[17]. - The company reported a 15% decline in total revenue for the nine months ended September 30, 2024, compared to the same period in 2023[17]. - Net loss from continuing operations for the nine months ended September 30, 2024, was $31,084 thousand, a significant improvement from a loss of $63,920 thousand in the same period of 2023, representing a 51% reduction[21]. - Adjusted EBITDA for the three months ended September 30, 2024, was $10,540 thousand, with an adjusted EBITDA margin of 16.4%, compared to 0.6% in the same period of 2023[22]. - The net income (loss) from continuing operations as a percentage of revenue for the nine months ended September 30, 2024, was (19.9)%, an improvement from (36.1)% in the same period of 2023[22]. Revenue Breakdown - Affiliate commerce revenues grew 53% year-over-year to $19.6 million, driven by the most successful Prime Day in July[2]. - Programmatic advertising revenues increased by 9% year-over-year to $17.3 million[2]. - Advertising revenue declined by 3% year-over-year to $26.1 million, while content revenue fell by 7% to $17.4 million[2]. - Commerce and other revenue increased by 45% to $20,897, up from $14,447 in Q3 2023[17]. Cash and Assets - Total current assets decreased to $120,920 from $132,789 at the end of 2023[19]. - Total liabilities decreased to $202,473 from $300,293 at the end of 2023[19]. - Cash and cash equivalents increased to $53,723 from $35,637 at the end of 2023[19]. - Cash used in operating activities from continuing operations was $7,372 thousand for the nine months ended September 30, 2024, compared to cash provided of $2,052 thousand in the same period of 2023[21]. - The company reported a net increase in cash and cash equivalents of $18,086 thousand for the nine months ended September 30, 2024, compared to a decrease of $13,304 thousand in the same period of 2023[21]. Strategic Outlook - The company aims to deliver consistent topline growth and expanded profitability in 2025 and beyond[2]. - BuzzFeed's strategy focuses on scalable, tech-driven revenue lines to stabilize the business[2]. - The company plans to share updates on its debt, balance sheet, and Q4 financial outlook in the coming weeks[4]. Other Financial Metrics - Stock-based compensation for the nine months ended September 30, 2024, was $4,238 thousand, slightly down from $4,524 thousand in the same period of 2023[22]. - The company experienced a significant change in fair value of warrants, reporting a gain of $582 thousand for the nine months ended September 30, 2024, compared to a gain of $94 thousand in the same period of 2023[22]. - Cash provided by investing activities from discontinued operations was $108,575 thousand for the nine months ended September 30, 2024, with no comparable figure for the same period of 2023[21]. - The company incurred capital expenditures of $500 thousand for the nine months ended September 30, 2024, down from $761 thousand in the same period of 2023[21]. - The company reported a loss on investment of $3,500 thousand in the nine months ended September 30, 2023, with no comparable figure for the same period of 2024[21].

John M Lund Photography Inc/DigitalVision via Getty Images On Seeking Alpha's free site, I've written two pieces on BuzzFeed, Inc. (NASDAQ:BZFD). Picking back up on the research trail, lo and behold, just as I forecasted, within the July 29, 2024 piece, BuzzFeed provided its best Q3 guidance ever, when they reported Q2 FY 2024 results (August 12, 2024). Third Quarter 2024 Financial Outlook . We expect overall revenues in the range of $58 million to $63 million, or approximately 3% lower to 5% higher than th ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________________________________ FORM 10-Q ______________________________________________________________ x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission file number: ...

BuzzFeed, Inc. (NASDAQ:BZFD) Q2 2024 Earnings Call Transcript August 12, 2024 5:00 PM ET Company Participants Amita Tomkoria - SVP of IR Jonah Peretti - CEO Matt Omer - CFO Operator Good day, and thank you for standing by, and welcome to BuzzFeed, Inc. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Amita Tomkoria, Senior Vic ...