[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 ...

Financial Data and Key Metrics Changes - The company reported fourth quarter adjusted EBITDA of $15.1 million, consistent with previous outlooks [1] - Full year 2023 revenues were $253 million, down 26% year-over-year, with adjusted EBITDA losses of $5 million compared to breakeven in the prior year [64] - The gross margin on revenues from continuing operations was approximately 44%, an improvement from 40% when including Complex [2][63] Business Line Data and Key Metrics Changes - The company has shifted focus from branded video to programmatic advertising and affiliate commerce, which generated over $130 million in revenue in 2023 [8][67] - Advertising revenues declined 25% year-over-year to $31.9 million, primarily due to lower direct sold revenues [74] - Programmatic advertising revenues saw a more moderate decline of 11% year-over-year, driven by declines on third-party platforms [75] Market Data and Key Metrics Changes - US time spent on the company's content declined 12% year-over-year to 72 million hours, primarily due to reduced referral traffic from third-party platforms [76] - Commerce and other revenues decreased by 8% year-over-year to $16.7 million, mainly from commissions on transactions initiated from editorial shopping content [77] Company Strategy and Development Direction - The company is refocusing its business around scalable, high-margin, tech-led revenue streams following the sale of Complex [40][41] - The strategic restructuring program is expected to drive approximately $23 million in annualized compensation cost savings [29] - The company aims to leverage AI to enhance content engagement and operational efficiency, positioning itself for future growth [71][78] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the digital advertising market, including competition for audience time and reduced demand for custom-branded advertising campaigns [65][86] - The company expects Q1 2024 revenues to be in the range of $42 million to $44 million, representing a 20% to 23% decline year-over-year, but anticipates adjusted EBITDA losses to improve by approximately $7 million year-over-year [12][16] Other Important Information - The company eliminated its revolving credit facility by repaying it in full for $35.5 million, which includes outstanding balances and fees [4] - The sale of Complex has significantly improved the company's liquidity, allowing for debt reduction and optimization of working capital [3][42] Q&A Session Summary Question: Impact of AI on the business - Management discussed the potential of AI to enhance programmatic and affiliate revenue lines, emphasizing scalability and tech-enabled growth opportunities [15] Question: Profitability post-Complex sale - Management highlighted that the sale of Complex has improved underlying profitability, with a gross margin increase from 40% to 44% for continuing operations [17] Question: Shift away from branded video - Management clarified that the company is moving away from one-off branded videos to focus on scalable, high-margin video production that leverages strong IP and repeat viewership [18] Question: Opportunities in programmatic and affiliate commerce - Management expressed optimism about the scalability and high margins of programmatic and affiliate businesses, which are expected to benefit from tech investments and AI advancements [19][20] Question: Licensing deal in the UK - Management confirmed they are in the final stages of an agreement to license BuzzFeed UK and other brands, which would allow for resource allocation while retaining IP ownership [30] Question: TikTok's potential ban and its implications - Management noted that a TikTok ban could benefit other platforms like Facebook and Instagram, which may lead to better monetization opportunities for the company [22] Question: Addressing remaining debt - Management outlined plans to address remaining debt, including working with unsecured lenders and utilizing proceeds from the Complex sale to fund restructuring [23]

○ Advertising revenue declined 31% year-over-year to $115.6 million ○ Content revenue declined 31% year-over-year to $83.6 million ○ Commerce and other revenues were relatively flat year-over-year at $53.4 million ● Net loss from continuing operations was $60.3 million, compared to a net loss of $140.5 million in 2022 2 ● Adjusted EBITDA loss was $4.7 million, compared to Adjusted EBITDA of $0.3 million in 2022 ● In 2023, audience Time Spent with our content was 306 million hours. Time Spent on our owned an ...

It’s been a big day for Buzzfeed (NASDAQ:BZFD), and it’s just getting started. Shares of the popular digital media company are up more than 70% today after the company confirmed the sale of its Complex division to e-commerce giant NTWRK. This $108.6 million all-cash deal is definitely the catalyst that BZFD stock needs to finally start rising again after a difficult year. However, the sale isn’t the only headline that is impacting BZFD stock. The company has also announced plans to lay off 16% of its workfo ...

BuzzFeed (NASDAQ:BZFD) stock is heading higher on Thursday after the media company sold its Complex division to NTWRK.NTWRK is paying BuzzFeed $108.6 million in cash for Complex. BuzzFeed also received a $5.7 million payment covering the costs of using its New York offices, as well as for severance and other employee-related expenses.BuzzFeed said this business sale will allow it to focus more on its other businesses, including BuzzFeed and HuffPost. In addition to that, the company is planning for a restru ...

HuffPost parent company Buzzfeed said Wednesday that it is slashing 16% of its workforce — the latest in a wave of layoffs by financially-strapped media companies — and will sell music and culture-focused site ComplexThe digital media company — once an advertising revenue juggernaut — said the cuts are “designed to reduce centralized costs and to allow the company to become more agile, sustainable, and profitable.” Buzzfeed declined to comment on the total number of cuts. It has fewer than 1,000 employees. ...

BuzzFeed announced plans to lay off dozens of employees after offloading Complex Networks at a significant discount.The struggling digital media group, which also owns HuffPost, said it would reduce its remaining workforce by 16% as part of a strategic restructuring. This will save the firm about $23m a year, it said.It sold most of Complex, a publisher focused on streetwear and pop culture, to Ntwrk, an e-commerce group, for $108.6m – just over two years after buying the business in a $294m deal. BuzzFeed ...

BuzzFeed is selling Complex to NTWRK for $108.6 million in cash plus $5.7 million for use of NYC office space, severance and other employee costs. It also announced a strategic restructuring including laying off 16% of its workforce that it expects will save $23 million a year. It will discuss details on Feb. 28 The company sold itself in a SPAC deal in 2021 and went public. It shut its news division last year amid challenging economics. The company said the sale of Complex is expected to enhance its prof ...