BuzzFeed Inc - Ordinary Shares (BZFD) Q2 Earnings call transcript Aug 12, 2024
AInvestTuesday, Aug 13, 2024 5:53 pm ET
2min read
BZFD --

BuzzFeed, Inc. held its Second Quarter 2024 Earnings Conference Call, highlighting key achievements and strategic moves that demonstrate the company's resilience and innovative approach in the face of industry challenges. The call, led by Senior Vice President of Investor Relations, Amita Tomkoria, featured CEO Jonah Peretti and CFO Matt Omer, who provided a comprehensive overview of BuzzFeed's financial performance and strategic initiatives.

Innovation and AI-Powered Content

One of the most significant topics discussed during the call was BuzzFeed's investment in artificial intelligence (AI) technology. Jonah Peretti emphasized the company's long-term approach to managing its business and its commitment to continuously experimenting and innovating with technology. The implementation of AI has led to improvements in key metrics across the business, including audience loyalty, user log-ins, conversion on commerce content, and growth in advertising inventory. This investment in AI has also accelerated the pace of new product development, making content creators more efficient and creative, and inviting the audience to participate directly in AI-assisted content creation.

Revenue Growth and Financial Stability

Financially, BuzzFeed reported a 3% growth in programmatic advertising year-over-year, marking the first quarter of year-over-year growth since Q1 2022. This growth is a testament to the strategic and organizational changes the company has implemented to stabilize its business. The focus on high-margin revenue lines, such as Programmatic Advertising and Affiliate Commerce, is driving improvements in adjusted EBITDA and margin expansion. The company exceeded its May outlook for adjusted EBITDA, generating $2.7 million in Q2 profits, a $5 million improvement year-over-year. This momentum has continued into Q3, with BuzzFeed experiencing its biggest Prime Day ever, surpassing even Amazon's overall Prime Day growth.

Engagement and Personalization

BuzzFeed's audience engagement has been a notable highlight, with a 5% increase in audience time spent on the company's content according to Comscore. This growth, which outpaced other digital media companies, underscores the strength of BuzzFeed's differentiated business model. The company has seen a significant increase in loyalty among its audience, with loyal users growing since Q4 2023 and page views per unique visitor growing quarter-over-quarter for three consecutive quarters. This loyalty is particularly strong across BuzzFeed's suite of games, with the vast majority of Q2 game users on the app returning within a week.

Looking Ahead

Looking ahead, BuzzFeed is focused on building on these engagement and monetization trends. The company plans to launch new landing pages, social leaderboard features, and a newly designed app that will blend content and interactive features, creating a hybrid between a content publisher and a social media destination. This vision for the future is driven by a strategic shift away from platform-dependent models of content distribution and monetization. BuzzFeed's focus on its owned and operated websites and apps positions the company well to control its own destiny in terms of enhancing personalization and driving long-term monetization.

Conclusion

BuzzFeed's Second Quarter 2024 Earnings Call underscored the company's commitment to innovation, revenue growth, and financial stability. The strategic focus on AI-powered content, audience engagement, and high-margin revenue lines is driving improvements in key metrics and positioning BuzzFeed for long-term success. With a strong financial performance, a clear vision for the future, and a dedication to unlocking the full potential of the BuzzFeed brand, the company is well on its way to redefining the digital media landscape for the AI era.

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