BuzzFeed(BZFD) - 2024 Q1 - Quarterly Results

Financial & Operational Highlights 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] - Time Spent on content declined 16% year-over-year to 67 million hours (excluding Complex Networks and First We Feast)[1] Business & Content Highlights 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] - Direct traffic across BuzzFeed's web and app properties increased 3% in Q1 2024 compared to Q4 2023[2][10] - The new AI Content Generator, 'Make Your Own Emoji,' skyrocketed to the top 10 most engaged BuzzFeed posts of all time[2] - Engagement with the most loyal audience deepened, with pageviews per site visitor growing for four consecutive months since December 2023[2] Q2 2024 Financial Outlook 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 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 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 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 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 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] Other Information 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 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] - Content revenues are generated from creating custom assets for clients, ranging from branded quizzes to film and TV projects[5] - Commerce and other revenues consist primarily of affiliate commissions from shopping content and product licensing[23] - 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] Forward-Looking Statements 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]