After failing to become President of the United States, Vivek Ramaswamy has decided to turn his attention to a new venture. Indeed, the former Republican candidate has acquired an activist stake in BuzzFeed (NASDAQ:BZFD) and BZFD stock. Originally an entertainment company that published online quizzes and humorous articles, BuzzFeed also demonstrated its prowess as a news reporting venue when former President Donald Trump rose to political prominence. Now Ramasway — a far-right politician who has displayed ...

Core Insights - A significant investment by Vivek Ramaswamy has led to a dramatic increase in BuzzFeed's stock price, which rose by approximately 30% after being stagnant for a year [1] - Ramaswamy's investment interest began in March when BuzzFeed shares were priced around $1.50, and he now owns 7.7% of the company [2][3] - The market capitalization of BuzzFeed has fluctuated between $30 million and $60 million in 2024, which Ramaswamy considers undervalued [2] Investment Activity - Ramaswamy has consistently purchased BuzzFeed shares since March, indicating a strong belief in the company's potential [3] - The investor base had previously lost interest in BuzzFeed, but Ramaswamy's involvement has revitalized investor sentiment [3] Strategic Intent - Ramaswamy aims to engage with BuzzFeed's management to explore operational and strategic opportunities to enhance shareholder value, suggesting a proactive approach rather than a passive investment [5] - BuzzFeed has experienced a significant decline of 93% from its all-time high, highlighting the need for new strategies and ideas [5] Ideological Considerations - There may be potential ideological conflicts at BuzzFeed, as the company is perceived to lean left politically, while Ramaswamy has a Republican background [4]

Former Republican presidential candidate and biotech entrepreneur Vivek Ramaswamy has purchased a minority stake in Buzzfeed, the digital publishing company that shut down its media outlet last year. Shares of Buzzfeed Inc., based in New York City, skyrocketed about 20% to $2.99 on Wednesday. Ramaswamy acquired a 7.7% stake in Buzzfeed, according to a filing with the Securities and Exchange Commission late Tuesday. Ramaswamy said in the filing that he believes Buzzfeed's stock is undervalued. He is looking ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical wri ...

Shares surged roughly 50% on the news. The stock closed Tuesday at $2.50. Former U.S. President and Republican presidential candidate Donald Trump looks on as former Republican presidential candidate Vivek Ramaswamy speaks at a rally by Trump, in advance of the New Hampshire primary election in Laconia, New Hampshire, U.S. January 22, 2024. Former GOP presidential hopeful Vivek Ramaswamy has an 8% stake in BuzzFeed and is seeking to effect a "shift" in the media firm's strategy, the investor said Tuesday in ...

PART I: FINANCIAL INFORMATION [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents BuzzFeed's unaudited condensed consolidated financial statements for Q1 2024, highlighting the Complex Networks sale and substantial doubt about the company's ability to continue as a going concern Condensed Consolidated Statements of Operations (Q1 2024 vs Q1 2023) | Financial Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Revenue** | **$44,755** | **$54,907** | | Total costs and expenses | $65,568 | $79,387 | | Loss from continuing operations | $(20,813) | $(24,480) | | Net loss from continuing operations | $(26,569) | $(29,392) | | Net loss from discontinued operations | $(9,213) | $(6,869) | | **Net loss attributable to BuzzFeed, Inc.** | **$(35,729)** | **$(36,001)** | Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $44,457 | $35,637 | | Total Assets | $299,037 | $411,476 | | Total Liabilities | $223,197 | $300,293 | | **Total Stockholders' Equity** | **$75,840** | **$111,183** | Condensed Consolidated Statements of Cash Flows | Cash Flow Activity | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(13,299) | $(179) | | Net cash provided by (used in) investing activities | $105,157 | $(4,201) | | Net cash used in financing activities | $(65,828) | $(1,481) | - The company has expressed **substantial doubt** about its ability to continue as a going concern due to **recurring losses**, **negative cash flows** from operations, and **significant debt obligations**, including convertible notes that may be repurchased by holders starting in December 2024[454](index=454&type=chunk)[24](index=24&type=chunk) - On February 21, 2024, the company completed the sale of its Complex Networks business (excluding the First We Feast brand) for approximately **$108.6 million** in cash, with results now presented as **discontinued operations**[179](index=179&type=chunk)[63](index=63&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=45&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial performance, noting an **18% revenue decrease**, a **16% workforce reduction**, the Complex Networks sale, and reiterates substantial doubt about the company's ability to continue as a going concern due to liquidity issues and Nasdaq delisting risks Revenue by Category (Q1 2024 vs Q1 2023) | Revenue Category | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | Advertising | $21,423 | $27,393 | (22)% | | Content | $13,107 | $16,251 | (19)% | | Commerce and other | $10,225 | $11,263 | (9)% | | **Total revenue** | **$44,755** | **$54,907** | **(18)%** | - In February 2024, the company implemented a restructuring plan that included an approximately **16% reduction** in its workforce, incurring **$2.9 million** in related costs during the quarter[245](index=245&type=chunk)[127](index=127&type=chunk) - Management states that due to potential holder repurchase rights on its convertible notes starting December 2024 and potential delisting from Nasdaq, there is **substantial doubt** about the company's ability to continue as a going concern as it currently lacks **sufficient cash** to fund these obligations[308](index=308&type=chunk)[284](index=284&type=chunk)[311](index=311&type=chunk) Reconciliation of Net Loss from Continuing Operations to Adjusted EBITDA (Non-GAAP) | Metric | Three Months Ended March 31, 2024 (in thousands) | Three Months Ended March 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net loss from continuing operations | $(26,569) | $(29,392) | | Adjustments (Tax, Interest, D&A, etc.) | $12,393 | $11,303 | | Restructuring | $2,916 | $0 | | **Adjusted EBITDA** | **$(11,264)** | **$(18,089)** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines BuzzFeed's primary market risk exposures, including foreign currency exchange risk, interest rate fluctuation risk from its credit facility, and equity investment risk - The company is exposed to **foreign currency exchange rate fluctuations**, primarily from the British pound, Japanese yen, and Canadian dollar, which can negatively affect reported revenue and results[326](index=326&type=chunk) - **Interest rate risk** is primarily related to the variable interest component on the remaining **$15.5 million** in letters of credit from its former Revolving Credit Facility[355](index=355&type=chunk) - The company holds an **equity investment** in a privately-held company with a carrying value of **$0.8 million** as of March 31, 2024[381](index=381&type=chunk)[93](index=93&type=chunk) [Item 4. Controls and Procedures](index=67&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were **not effective** as of March 31, 2024, due to two unremediated material weaknesses in internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were **not effective**[361](index=361&type=chunk) - The ineffectiveness is due to **two identified material weaknesses**: (i) deficiencies in the financial statement close process, including segregation of duties, and (ii) a lack of formalized IT general controls over financial information systems[357](index=357&type=chunk)[359](index=359&type=chunk)[360](index=360&type=chunk) - Management is continuing to implement **remediation plans** to address these control deficiencies, but the material weaknesses will not be considered remediated until the new controls operate effectively for a sufficient period[387](index=387&type=chunk)[385](index=385&type=chunk) PART II: OTHER INFORMATION [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) This section details significant legal matters, including provisional settlements for VPPA mass arbitrations, ongoing mass arbitrations by former employees, and a new CIPA class action lawsuit - The company **provisionally settled** multiple mass arbitration demands in January 2024 related to alleged violations of the **Video Privacy Protection Act (VPPA)** concerning the use of tracking pixels on its websites[392](index=392&type=chunk)[365](index=365&type=chunk)[139](index=139&type=chunk) - BuzzFeed is defending against mass arbitrations initiated by **91 former employees** who claim they were unable to convert and sell their shares on the first day of trading after the company's business combination in December 2021[394](index=394&type=chunk)[140](index=140&type=chunk) - In April 2024, a new lawsuit was filed against the company alleging violations of the **California Invasion of Privacy Act (CIPA)** related to the use of third-party trackers on its websites[398](index=398&type=chunk)[169](index=169&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) This section updates the company's risk factors, primarily focusing on non-compliance with Nasdaq listing requirements, including audit committee composition, and the potential for delisting to trigger convertible note repurchase obligations - The company is **not in compliance** with Nasdaq Listing Rule 5605(c)(2)(A) because its audit committee consists of only **two members**, below the required minimum of three[399](index=399&type=chunk)[436](index=436&type=chunk) - The company has until its **2025 annual meeting** or **April 25, 2025**, to regain compliance with the audit committee requirement to avoid delisting[372](index=372&type=chunk)[171](index=171&type=chunk) - A delisting of the company's Class A common stock would constitute a "**fundamental change**" under the indenture governing its convertible notes, giving holders the right to require the company to repurchase their notes for cash at **101%** of the principal amount[373](index=373&type=chunk)[57](index=57&type=chunk) [Other Information (Items 2, 3, 4, 5, 6)](index=72&type=section&id=Other%20Information%20%28Items%202%2C%203%2C%204%2C%205%2C%206%29) This section covers remaining disclosure items, reporting no unregistered sales of equity securities, no defaults on senior securities, no mine safety disclosures, and lists the exhibits filed with the Form 10-Q - The company reported **no information** for Item 2 (Unregistered Sales of Equity Securities), Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information)[374](index=374&type=chunk)[401](index=401&type=chunk)[411](index=411&type=chunk)[410](index=410&type=chunk) - Item 6 lists the **exhibits** filed with the quarterly report, including merger agreements, debt indentures, certifications, and XBRL data files[402](index=402&type=chunk)[476](index=476&type=chunk)

BuzzFeed, Inc. (NASDAQ:BZFD) Q1 2024 Earnings Conference Call May 13, 2024 5:00 PM ET Company Participants Amita Tomkoria - Head, Investor Relations Jonah Peretti - Chief Executive Officer Matt Omer - Chief Financial Officer Operator Good day, and thank you for standing by. Welcome to the BuzzFeed, Inc. First 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 ove ...

[Financial & Operational Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20and%20Operational%20Highlights) BuzzFeed's Q1 2024 saw revenue decline 18% to $44.8 million, but improved net loss and Adjusted EBITDA, with 90% audience time on O&O properties Key Financial Metrics (in millions USD) | Financial Metric | Q1 2024 | Q1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $44.8 | $54.9 | -18% | | Net Loss from Continuing Operations | $(26.6) | $(29.4) | +10% | | Adjusted EBITDA Loss | $(11.3) | $(18.1) | +38% | Revenue by Stream (in millions USD) | Revenue Stream | Q1 2024 Revenue | YoY Change | | :--- | :--- | :--- | | Advertising | $21.4 | -22% | | Content | $13.1 | -19% | | Commerce and other | $10.2 | -9% | - The company has completed its transformation to an Owned & Operated (O&O)-led platform, with **90% of audience time** spent on its own properties[1](index=1&type=chunk) - Time Spent on content **declined 16% year-over-year** to **67 million hours** (excluding Complex Networks and First We Feast)[1](index=1&type=chunk) [Business & Content Highlights](index=1&type=section&id=First%20Quarter%202024%20Business%20and%20Content%20Highlights) BuzzFeed's Q1 2024 showed positive audience engagement on owned properties, with programmatic ad revenue growth, increased direct traffic, and a successful AI Content Generator - Programmatic advertising revenues **grew year-over-year** across BuzzFeed and HuffPost websites and apps for the **third consecutive quarter**[1](index=1&type=chunk) - Direct traffic across BuzzFeed's web and app properties **increased 3%** in Q1 2024 compared to Q4 2023[2](index=2&type=chunk)[10](index=10&type=chunk) - The new AI Content Generator, 'Make Your Own Emoji,' skyrocketed to the **top 10 most engaged BuzzFeed posts of all time**[2](index=2&type=chunk) - Engagement with the most loyal audience deepened, with pageviews per site visitor **growing for four consecutive months** since December 2023[2](index=2&type=chunk) [Q2 2024 Financial Outlook](index=2&type=section&id=Second%20Quarter%202024%20Financial%20Outlook) BuzzFeed projects Q2 2024 revenues between $44 million and $49 million, a 21-30% YoY decline, with Adjusted EBITDA expected to be near flat year-over-year Q2 2024 Financial Outlook (in millions USD) | Q2 2024 Outlook | Range | | :--- | :--- | | Overall Revenues | $44 - $49 | | Adjusted EBITDA | $(4) - $1 | [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents BuzzFeed's unaudited consolidated financial statements for Q1 2024, including Statements of Operations, Balance Sheets, and Cash Flows, with Complex Networks reported as discontinued operations [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) BuzzFeed's Q1 2024 Consolidated Statements of Operations show total revenues of $44.8 million, a decrease from Q1 2023, with improved net loss from continuing operations to $(26.6) million Consolidated Statements of Operations (USD in thousands, except per share) | (USD in thousands, except per share) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Revenue | $44,755 | $54,907 | | Cost of revenue | $31,063 | $37,237 | | Loss from continuing operations | $(20,813) | $(24,480) | | Net loss from continuing operations | $(26,569) | $(29,392) | | Net loss per share (Basic & Diluted) | $(0.72) | $(0.83) | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2024, BuzzFeed's balance sheet shows $44.5 million in cash, with total assets decreasing to $299.0 million and liabilities to $223.2 million, largely due to the Complex Networks disposition Consolidated Balance Sheets (USD in thousands) | (USD in thousands) | March 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $44,457 | $35,637 | | Total current assets | $132,913 | $132,789 | | Total assets | $299,037 | $411,476 | | Total current liabilities | $189,737 | $227,795 | | Total liabilities | $223,197 | $300,293 | | Total stockholders' equity | $75,840 | $111,183 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) BuzzFeed's Q1 2024 cash flow saw $(5.3) million used in operations, $105.2 million generated from investing (Complex Networks sale), and $(65.8) million used in financing, resulting in a $25.9 million net cash increase Consolidated Statements of Cash Flows (USD in thousands) | (USD in thousands) | Q1 2024 | | :--- | :--- | | Cash used in operating activities (continuing) | $(5,258) | | Cash provided by investing activities (discontinued) | $108,575 | | Cash used in financing activities | $(65,828) | | **Net increase in cash and cash equivalents** | **$25,870** | [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP) BuzzFeed reconciles its Q1 2024 GAAP net loss of $(26.6) million to an Adjusted EBITDA loss of $(11.3) million, a significant improvement from Q1 2023, by adjusting for non-cash and non-recurring items Reconciliation of GAAP to Non-GAAP Measures (USD in thousands) | Reconciliation (USD in thousands) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Net loss from continuing operations | $(26,569) | $(29,392) | | (+) Depreciation & amortization | $5,881 | $5,704 | | (+) Interest expense, net | $4,481 | $3,787 | | (+) Restructuring | $2,916 | $0 | | (+) Other adjustments | $1,027 | $1,805 | | **Adjusted EBITDA** | **$(11,264)** | **$(18,089)** | - Management uses **Adjusted EBITDA** to measure operational strength and performance, as it excludes non-cash and non-recurring items not indicative of ongoing operations[25](index=25&type=chunk) [Other Information](index=2&type=section&id=Other%20Information) This section defines BuzzFeed's revenue streams and key metrics like 'Time Spent', alongside a standard 'Forward-Looking Statements' disclaimer outlining potential risks and uncertainties [Definitions](index=2&type=section&id=Definitions) This section defines BuzzFeed's three primary revenue streams—Advertising, Content, and Commerce—and clarifies 'Time Spent' as Comscore-measured U.S. audience engagement on owned sites and select third-party platforms - **Advertising revenues** are generated from ads distributed against editorial and news content on owned sites and third-party platforms like YouTube and Apple News[5](index=5&type=chunk) - **Content revenues** are generated from creating custom assets for clients, ranging from branded quizzes to film and TV projects[5](index=5&type=chunk) - **Commerce and other revenues** consist primarily of affiliate commissions from shopping content and product licensing[23](index=23&type=chunk) - **Time Spent** is a **Comscore-measured metric** of U.S. audience engagement on owned sites, YouTube, and Apple News It excludes platforms like Instagram, TikTok, and Facebook[23](index=23&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This standard legal notice warns that forward-looking statements, including the Q2 2024 outlook, are subject to risks such as competition, advertising demand, macroeconomic conditions, and technological developments - The company warns that forward-looking statements, including its Q2 2024 outlook, are subject to **substantial risks and uncertainties** that could cause actual results to differ materially These include industry competition, ad demand, macroeconomic factors, and technological changes[8](index=8&type=chunk)

William_Potter Listen here or on the go via Apple Podcasts and Spotify Courage & Conviction Investing shares why the market doesn't understand Vroom and Carvana (0:45). BuzzFeed dumpster diving (6:05). Betting against the shorts with Encore Wire (14:00). This is an abridged conversation from a recent Investing Experts episode. Subscribe to Courage & Conviction Investing's Second Wind Capital Transcript Rena Sherbill: Courage & Conviction Investing, you run Second Wind Capital on Seeking Alpha. That's ...

• make certain investments and acquisitions in certain circumstances; • merge or consolidate with another company in certain circumstances; and 33 The Notes may impact our financial results, result in the dilution of our stockholders, create downward pressure on the price of our Class A common stock, and restrict our ability to raise additional capital or take advantage of future opportunities. Our ability to use our net operating loss carryforwards and certain other tax attributes may be limited. in our ow ...