BuzzFeed(BZFD) - 2025 Q2 - Quarterly Results

Executive Summary Q2 2025 Overview and Strategic Progress BuzzFeed, Inc. reported strong revenue growth in Q2 2025, increasing 13% year-over-year to $46.4 million, advancing strategic priorities in direct audience growth, AI development, and platform independence - BuzzFeed, Inc. delivered strong revenue growth in Q2 2025, increasing 13% year-over-year[1][5] - The company is executing a strategy to reduce platform dependencies, expand scalable revenue streams, and invest in future-oriented initiatives[1] CEO and CFO Commentary CEO Jonah Peretti highlighted a return to growth driven by double-digit gains in commerce and programmatic advertising, a successful feature film, and the beta testing of BF Island, an AI-native social media app, while CFO Matt Omer emphasized strong performance in scalable revenue lines, an efficient cost structure, and growing direct audience engagement - CEO Jonah Peretti noted a return to growth, driven by double-digit gains in commerce and programmatic advertising[2] - The company has begun beta testing BF Island, an AI-native social media app[2] - CFO Matt Omer highlighted strong performance in programmatic advertising and affiliate commerce, combined with a more efficient cost structure and growing direct audience engagement[2] Q2 2025 Financial and Operational Highlights Revenue Performance by Segment Total revenue for Q2 2025 increased 13% year-over-year to $46.4 million, primarily driven by a 53% increase in Content revenue due to a feature film project and a 20% rise in Commerce and other revenue, particularly organic affiliate commerce, despite a slight 3% decline in overall Advertising revenue | Revenue Segment | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Year-over-Year Change | Key Drivers | | :---------------- | :--------------------- | :--------------------- | :-------------------- | :---------- | | Total Revenue | $46.4 | $41.1 | +13% | | | Advertising | $22.6 | $23.2 | -3% | Programmatic +11%, Direct-sold -31% | | Content | $10.7 | $7.0 | +53% | Feature film project | | Commerce and Other| $13.1 | $10.9 | +20% | Organic affiliate commerce +23% | Profitability and Adjusted EBITDA BuzzFeed reported a net loss from continuing operations of $10.6 million in Q2 2025, a significant increase from $5.4 million in Q2 2024, primarily due to a non-recurring charge on loss on extinguishment of convertible notes, while Adjusted EBITDA improved to $2.0 million, up from $0.8 million in Q2 2024, benefiting from a one-time $2.4 million reversal | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Year-over-Year Change | | :----- | :--------------------- | :--------------------- | :-------------------- | | Net Loss from Continuing Operations | $(10.6) | $(5.4) | -98% | | Adjusted EBITDA | $2.0 | $0.8 | +139% | - The increased net loss was primarily driven by a non-recurring charge on loss on extinguishment of convertible notes[5] - Adjusted EBITDA was positively impacted by a one-time $2.4 million reversal that will not recur[5] Audience Engagement (Time Spent) Total U.S. Time Spent across BuzzFeed's properties was 69.9 million hours in Q2 2025, a slight decrease year-over-year but a 3% increase relative to Q1 2025, making BuzzFeed the only company in its competitive set to grow Time Spent this period | Metric | Q2 2025 (Million Hours) | Q2 2024 (Million Hours) | Change YoY | Change QoQ | | :----- | :---------------------- | :---------------------- | :--------- | :--------- | | Total U.S. Time Spent | 69.9 | 71.0 | -1.5% | +3% | - BuzzFeed was the only company in its competitive set to grow Time Spent in Q2 2025 relative to Q1 2025[6] Business and Content Highlights Traffic Diversification and Audience Engagement BuzzFeed has successfully diversified its traffic, with 61% of owned and operated traffic now coming from direct visits, internal referrals, and app activity, reducing reliance on external platforms, while audience engagement is strong, with nearly half of BuzzFeed and HuffPost's daily users returning more than once a week, and logged-in users on BuzzFeed.com tripling over the past two years - 61% of BuzzFeed owned and operated traffic now originates from direct visits, internal referrals, and app activity, decreasing dependence on external algorithms[9] - HuffPost's homepage referrals increased 12% year-over-year, now accounting for three-quarters of its total pageviews[9] - Nearly half of BuzzFeed and HuffPost's daily users return more than once a week, and logged-in users on BuzzFeed.com have tripled in the last two years[9] High-Margin Revenue Stream Growth Both programmatic advertising and organic affiliate commerce have demonstrated consistent year-over-year growth for five consecutive quarters, highlighting the success of BuzzFeed's strategy to expand scalable and reliable revenue lines - Programmatic advertising and organic affiliate commerce have shown year-over-year growth for five consecutive quarters[9] Studio Business Momentum The studio business is gaining momentum with a renewed focus on IP development and long-form content, providing protection from algorithmic shifts, with a feature film topping Hulu charts, another highly anticipated film wrapped production, and three additional film projects scheduled for production in the second half of 2025 - Renewed focus on IP development and long-form content in the studio business offers protection from algorithmic shifts[9] - The feature film "F*** Marry Kill" with Lionsgate was the 1 movie on Hulu in June[9] - Three more film projects are slated to enter production in the second half of 2025[9] AI Development: BF Island BuzzFeed has initiated beta testing for BF Island, its AI-native social media platform, with plans to expand access to select BuzzFeed community members by the end of Q3 - Beta testing has commenced for BF Island, an AI-native social media platform[9] - Expansion to select BuzzFeed community members is planned by the end of Q3[9] First Half 2025 Results and Full Year Outlook First Half 2025 Financial Performance For the first half of 2025, total revenue increased 5% to $82.4 million compared to the first half of 2024, with net loss from continuing operations improving by 29% to $23.1 million, and Adjusted EBITDA losses significantly improving by 71% to $3.9 million | Metric | H1 2025 (Millions USD) | H1 2024 (Millions USD) | Year-over-Year Change | | :----- | :--------------------- | :--------------------- | :-------------------- | | Total Revenue | $82.4 | $78.1 | +5% | | Net Loss from Continuing Operations | $(23.1) | $(32.3) | +29% | | Adjusted EBITDA | $(3.9) | $(13.5) | +71% | Full Year 2025 Financial Outlook BuzzFeed reaffirmed its full-year 2025 financial outlook, expecting revenue in the range of $195 million to $210 million and Adjusted EBITDA between $10 million and $20 million | Metric | Full Year 2025 Outlook (Millions USD) | | :----- | :------------------------------------ | | Revenue | $195 - $210 | | Adjusted EBITDA | $10 - $20 | - The company has not provided GAAP guidance for net income (loss) from continuing operations due to inherent forecasting difficulties[10] Company Information About BuzzFeed, Inc. BuzzFeed, Inc., founded in 2006, is a digital media company known for its entertainment, news, food, pop culture, and commerce brands, aiming to provide trusted, quality, brand-safe content, promote inclusivity, and inspire audiences - BuzzFeed, Inc. operates across entertainment, news, food, pop culture, and commerce, driving conversation and inspiring audience engagement[14] - The company is committed to providing trusted, quality, brand-safe news and entertainment, and making content more inclusive, empathetic, and creative[14] Key Definitions (Revenue Streams, Time Spent) BuzzFeed defines its primary revenue lines as Advertising, Content, and Commerce and other, with Advertising revenue from programmatic and direct-sold ads, Content revenue from custom assets, films, and content licensing, and Commerce and other revenues primarily from affiliate commissions and product licensing, while 'Time Spent' measures audience engagement across owned and operated sites, YouTube, and Apple News, as reported by Comscore - Advertising revenues are primarily generated from programmatic and direct-sold ads distributed across owned and operated sites and third-party platforms like YouTube and Apple News[16] - Content revenues are derived from custom assets, including long-form and short-form content, films, content licensing, and TV projects inspired by BuzzFeed IP[16] - Commerce and other revenues mainly comprise affiliate commissions from editorial shopping content and product licensing[16] - Time Spent measures audience engagement on owned and operated sites, YouTube, and Apple News, as measured by Comscore, excluding platforms with minimal advertising capabilities[16] Non-GAAP Financial Measures (Adjusted EBITDA) Adjusted EBITDA is a non-GAAP financial measure used by management and the board to assess operational strength and performance, defined as net (loss) income from continuing operations, excluding various non-cash and non-recurring items, which the company believes provides relevant information for investors despite its limitations and non-comparability with other companies' similarly titled measures - Adjusted EBITDA is a non-GAAP financial measure used by management to gauge operational strength, performance, and to set budgets and goals[17] - It excludes items like net (loss) income attributable to noncontrolling interests, income tax, interest expense, depreciation and amortization, stock-based compensation, change in fair value of warrant liabilities, restructuring costs, transaction-related costs, certain litigation costs, and other non-cash and non-recurring items[17] - Adjusted EBITDA should not be considered a substitute for GAAP measures, and its comparability with other companies' measures may be limited[18][19] Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, BuzzFeed's total assets were $210.4 million, a decrease from $221.4 million at December 31, 2024, while total liabilities increased to $126.5 million from $114.5 million, and total stockholders' equity decreased to $83.9 million from $106.9 million | Balance Sheet Item | June 30, 2025 (Thousands USD) | December 31, 2024 (Thousands USD) | | :----------------- | :------------------------------ | :-------------------------------- | | Total Assets | $210,354 | $221,398 | | Total Liabilities | $126,454 | $114,456 | | Total Stockholders' Equity | $83,900 | $106,942 | | Cash and Cash Equivalents | $29,706 | $38,648 | Condensed Consolidated Statements of Operations For Q2 2025, total revenue was $46.4 million, leading to a net loss from continuing operations of $10.6 million, and for the six months ended June 30, 2025, total revenue was $82.4 million, with a net loss from continuing operations of $23.1 million, resulting in basic and diluted net loss per share from continuing operations of $(0.28) for Q2 2025 and $(0.61) for the first half of 2025 | Metric | Three Months Ended June 30, 2025 (Thousands USD) | Three Months Ended June 30, 2024 (Thousands USD) | Six Months Ended June 30, 2025 (Thousands USD) | Six Months Ended June 30, 2024 (Thousands USD) | | :----- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Revenue | $46,394 | $41,115 | $82,415 | $78,124 | | Net Loss from Continuing Operations | $(10,627) | $(5,374) | $(23,088) | $(32,324) | | Basic and Diluted Net Loss per Share | $(0.28) | $(0.15) | $(0.61) | $(0.88) | Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was $8.8 million, an improvement from $25.7 million used in the prior year period, with net cash used in investing activities at $7.1 million, and net cash provided by financing activities at $6.4 million, primarily due to borrowings from Term Loan and 2X Blind Loan Commitment, partially offset by payment on Convertible Notes and common stock repurchase | Cash Flow Activity | Six Months Ended June 30, 2025 (Thousands USD) | Six Months Ended June 30, 2024 (Thousands USD) | | :----------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Cash Used in Operating Activities | $(8,755) | $(25,703) | | Net Cash Used in Investing Activities | $(7,116) | $(6,273) | | Net Cash Provided by (Used in) Financing Activities | $6,445 | $(66,396) | | Cash and Cash Equivalents at End of Period | $29,706 | $45,461 | - Financing activities in H1 2025 included $39.2 million from Term Loan borrowings and $2.4 million from 2X Blind Loan Commitment, offset by a $30.0 million payment on Convertible Notes and $3.3 million for common stock repurchase[31] Reconciliation of GAAP to Non-GAAP Measures Adjusted EBITDA Reconciliation (Q2 & H1 2025) The reconciliation shows how Net loss from continuing operations is adjusted to arrive at Adjusted EBITDA, which for Q2 2025 was $2.0 million (4.3% margin), improving from $0.8 million (2.0% margin) in Q2 2024, and for the first half of 2025, was $(3.9) million (-4.7% margin), a significant improvement from $(13.5) million (-17.3% margin) in the prior year period | Metric | Three Months Ended June 30, 2025 (Thousands USD) | Three Months Ended June 30, 2024 (Thousands USD) | Six Months Ended June 30, 2025 (Thousands USD) | Six Months Ended June 30, 2024 (Thousands USD) | | :----- | :----------------------------------------------- | :----------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | Net Loss from Continuing Operations | $(10,627) | $(5,374) | $(23,088) | $(32,324) | | Adjustments (e.g., Interest, Depreciation, Stock-based Comp) | $12,611 | $6,205 | $19,178 | $18,788 | | Adjusted EBITDA | $1,984 | $831 | $(3,910) | $(13,536) | | Adjusted EBITDA Margin | 4.3% | 2.0% | (4.7)% | (17.3)% | - Restructuring expenses are excluded from non-GAAP measures as they are not indicative of core operating performance[33] Supplemental 2024 Quarterly Adjusted EBITDA Reconciliation This section provides a quarterly breakdown of Adjusted EBITDA for fiscal year 2024, which was $5.45 million (2.9% margin), with positive Adjusted EBITDA in Q2, Q3, and Q4 2024, following a loss in Q1 2024 | Metric | Q1 2024 (Thousands USD) | Q2 2024 (Thousands USD) | Q3 2024 (Thousands USD) | Q4 2024 (Thousands USD) | FY 2024 (Thousands USD) | | :----- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | :---------------------- | | Net (Loss) Income from Continuing Operations | $(26,950) | $(5,374) | $2,512 | $(4,144) | $(33,956) | | Adjusted EBITDA | $(14,367) | $831 | $8,056 | $10,931 | $5,451 | | Adjusted EBITDA Margin | (38.8)% | 2.0% | 14.5% | 19.5% | 2.9% | - Transaction-related costs and certain litigation costs are excluded from non-GAAP measures as they are not representative of underlying operations or are singular in nature[40][41] Additional Disclosures Quarterly Conference Call Information BuzzFeed's management team held a conference call on August 7, 2025, at 5:00 PM ET to discuss Q2 2025 results, with the webcast and replay available on the investor relations section of their website - A conference call to discuss Q2 2025 results was held on August 7, 2025, at 5:00 PM ET[11] - The webcast and replay are accessible via investors.buzzfeed.com under 'News and Events'[11] Forward-Looking Statements The press release contains forward-looking statements regarding future expectations, forecasts, and events, which are subject to substantial risks and uncertainties including macroeconomic factors, industry competition, demand for products, regulatory changes, capital requirements, and technological developments like AI, and actual results may differ materially from these statements, with no obligation to update them except as required by law - Statements regarding future expectations, forecasts, and the 2025 outlook are forward-looking and involve substantial risks and uncertainties[20] - Key risks include macroeconomic conditions, competition in the digital media industry, demand for products, regulatory changes, capital requirements, and technological developments such as artificial intelligence[20][21] - The company does not undertake any obligation to update or revise forward-looking statements, except as required by applicable securities laws[22] Contacts Contact information for media and investor relations is provided - Media Contact: juliana.clifton@buzzfeed.com[23] - Investor Relations: investors@buzzfeed.com[23]