BuzzFeed (BZFD) Q3 Earnings call transcript Nov 12, 2024

Daily EarningsWednesday, Nov 13, 2024 4:26 am ET

1min read

In the latest earnings call, BuzzFeed, Inc. unveiled its robust performance for the third quarter of 2024, showcasing a commendable turnaround in the company's financial health. BuzzFeed's CEO, Jonah Peretti, and CFO, Matt Omer, led the call, providing insights into the company's operational and financial achievements. The company's primary focus on stabilizing the business and driving profitability has paid off, as indicated by the impressive results.

Impressive Financial Performance

BuzzFeed reported a 7% year-over-year revenue growth in Q3, reaching $64 million. This revenue growth was primarily driven by the company's strategic focus on its most scalable and high-margin business lines, Programmatic Advertising and Affiliate Commerce. The latter saw a remarkable 53% increase in revenues, with the biggest Prime Day ever in July outpacing even Amazon's overall Prime Day growth. Programmatic Advertising revenues also grew by 9% year-over-year, underscoring the success of the company's strategic shift.

Stabilizing the Business

BuzzFeed's efforts to stabilize the business, initiated with the sale of Complex in the first quarter, are bearing fruit. The company's audience time spent grew by 13% quarter-over-quarter and 2% year-over-year, reaching 80 million hours, according to comScore. This growth is a testament to the hard work and resilience of BuzzFeed's teams and their successful execution of plans to improve the business.

Strategic Priorities and Future Outlook

BuzzFeed's executives expressed confidence in the company's ability to establish a solid foundation for the business in the next era of digital media. With a focus on driving consistent top-line growth and expanded profitability in the future, BuzzFeed is well-positioned to evolve and thrive. The company aims to share updates on its debt, balance sheet, Q4 financial outlook, and the results of the strategic review process soon.

Investor Confidence and Stakeholder Engagement

The earnings call also provided valuable insights into the concerns and priorities of key shareholders and investors. Questions during the call touched upon topics such as the company's marketing strategy for its new product and competition in the market. These interactions offer a glimpse into the market's perception of BuzzFeed's strategies and challenges.

Conclusion

BuzzFeed's third-quarter results demonstrate the company's commitment to stabilizing its business and driving profitability. With a focus on its high-margin and scalable business lines, BuzzFeed is showing signs of a strong recovery. The company's strategic priorities and future outlook indicate a positive trajectory, instilling confidence among investors and stakeholders. As BuzzFeed continues to navigate the evolving digital media landscape, its ability to capitalize on growth opportunities and address challenges will be key to its long-term success.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.