BuzzFeed Inc Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-13
BuzzFeed, Inc. Reports Second Quarter 2024 Financial Results
BuzzFeed, Inc. (NASDAQ: BZFD) has announced its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates (Q2 2024) |
|---|---|---|---|---|
| Total Revenue | $46.9M | $61.7M | -24% | $75.66M |
| Net Loss from Continuing Ops | $(6.5)M | $(22.5)M | Improved | N/A |
| Adjusted EBITDA | $2.7M | $(2.2)M | Improved by $5M | N/A |
Interpretation: BuzzFeed’s total revenue declined by 24% year-over-year (YoY) to $46.9 million, missing the consensus estimate of $75.66 million. However, the company showed a significant improvement in net loss from continuing operations, reducing the loss from $(22.5) million in Q2 2023 to $(6.5) million in Q2 2024. Adjusted EBITDA also turned positive to $2.7 million, indicating better operational efficiencies.
Revenue Performance by Segment
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change |
|---|---|---|---|
| Advertising | $23.8M | $29.4M | -19% |
| Programmatic Advertising | $16.0M | $15.5M | +3% |
| Content | $11.4M | $22.0M | -48% |
| Commerce and Other Revenues | $11.7M | $10.9M | +7% |
| Affiliate Commerce | $10.4M | $9.5M | +9% |
Interpretation: While the Advertising segment saw a decline of 19%, Programmatic Advertising experienced a modest growth of 3%. The Content segment faced a significant drop of 48%, possibly due to shifting consumer preferences or strategic changes within the company. The Commerce and Other Revenues and Affiliate Commerce segments showed positive growth, increasing by 7% and 9%, respectively.
Executive Commentary
Jonah Peretti, BuzzFeed’s Founder & CEO, noted: "Our strong performance in Q2 marks a turning point we've been working toward for the past two years. We're beginning to see the benefits of our investment in a differentiated technology platform that allows us to accelerate AI product development and drive deeper audience engagement."
Dividend or Share Repurchase Program
The report does not mention any announced dividends or share repurchase program.
Forward Guidance
For the third quarter of 2024, BuzzFeed expects: - Overall revenues to be in the range of $58 million to $63 million. - Adjusted EBITDA to be between $6 million and $11 million.
Stock Price Movement
After the earnings release, BuzzFeed’s stock price saw a decrease of approximately 3.03%.
Summary: BuzzFeed's Q2 2024 financial results showcased a significant reduction in net loss and positive Adjusted EBITDA despite a 24% decline in total revenue. The company attributed improvements to investments in AI and a differentiated technology platform, driving deeper audience engagement. Forward guidance suggests a cautious but optimistic outlook for Q3 2024. The market reacted with a slight downturn of 3.03% in stock price post-announcement.
