BuzzFeed's Q3 2025: Contradictions Emerge on Direct Traffic Strategy, Advertising Revenue, Macroeconomic Impact, and Affiliate Bonuses

Date of Call: None provided

Financials Results

• Revenue: $46.3M, down 17% YOY from $55.6M in Q3 2024

Guidance:

• Revised full-year 2025 revenue guidance to $185M–$195M (reduced by approximately $10M).
• Now expect adjusted EBITDA of breakeven to $10M for the full year; management still expects full-year adjusted EBITDA profitability with a Q4 step-up driven by seasonal commerce and advertising.
• Focused on executing seasonal affiliate commerce opportunities (Black Friday/Cyber Monday) and managing lumpiness in studio project timing.

Business Commentary:

• Challenges in Q3 and Revenue Performance:
• BuzzFeed's total revenue in Q3 2025 was $46.3 million, a 17% decline from Q3 2024's $55.6 million.

• The decline was driven by softer advertising demand, a decrease in affiliate partner bonuses, and tougher comparisons against the 2024 presidential election cycle.

• Audience Engagement and Traffic Shifts:

• BuzzFeed's flagship brand generated 37.2 million hours of U.S. Time Spent in Q3, showing a 4% year-over-year growth.
• Direct traffic accounted for 63% of buzzfeed.com traffic, up from 61% in Q2, indicating reduced platform dependency.

• Adjusted EBITDA and Profitability:
• Despite revenue challenges, BuzzFeed maintained an adjusted EBITDA of $753,000 in Q3 2025, compared to $8.1 million in Q3 2024.

• This is attributed to the company's focus on cost discipline and operational efficiency, enabling adjusted EBITDA positivity amidst revenue declines.

• Affiliate Commerce and Advertising Performance:

• Organic affiliate commerce revenue declined by $2.8 million to $16.8 million, primarily due to a decline in supplemental bonuses from affiliate partners.
• Advertising revenues totaled $22.2 million, a 11% decline from Q3 2024's $24.8 million, impacted by market softness in direct-sold advertising.

Sentiment Analysis:

Overall Tone: Neutral

• 'Q3 was a challenging quarter' with revenue declining 17% YOY to $46.3M, and adjusted EBITDA down to $0.75M, but management said 'we still expect to deliver positive adjusted EBITDA for the full year' while reducing guidance to $185M–$195M.

Contradiction Point 1

Direct Traffic and Platform Reliability

It highlights a shift in BuzzFeed's strategic focus regarding platform dependency and the importance of direct traffic, which could impact their audience engagement and monetization strategies.

None - None (Introduction of the speaker)

20251107-2025 Q3: Over 60% of our traffic to owned and operated properties comes from direct sources. Our transformation over the past few years has focused on strengthening direct audience relationships. - Jonah Peretti(CEO)

How are you planning to diversify beyond traditional referral sources like Facebook and Google? - Juliana Clifton(VP of Communications, BuzzFeed)

2025Q2: Platforms have not been reliable partners, and we've shifted towards direct traffic, homepage traffic, and app usage to build a strong digital media business. - Jonah Peretti(CEO)

Contradiction Point 2

Advertising Demand and Revenue

It involves differing perspectives on the state of advertising demand and its impact on revenue, which are critical for assessing BuzzFeed's financial performance and growth projections.

- None (Introduction of the speaker)

20251107-2025 Q3: Revenue declined driven by softer advertising demand, a decrease in affiliate partner bonuses and tougher comparisons against last year's presidential election cycle. - Jonah Peretti(CEO)

What's your outlook for platforms? How do you assess current platform dependency? - Juliana Clifton(VP of Communications, BuzzFeed)

2025Q2: Our overall revenue was up 17%. We were able to grow in an environment where demand for linear television advertising was down. - Jonah Peretti(CEO)

Contradiction Point 3

Macro Economic Conditions and Advertising Spend

It involves differing perspectives on macroeconomic conditions and their impact on advertising spend, which directly affects the company's revenue expectations.

None - Juliana Clifton(BuzzFeed)

20251107-2025 Q3: The overall economy seems fairly strong, but uncertainty does cause some advertisers to pause. - Jonah Peretti(CEO)

What is BuzzFeed's outlook for macro conditions and advertisers' spending this year? - Juliana Clifton(BuzzFeed)

2025Q1: We talk to a lot of advertisers, and it's clear that everyone is taking an approach where they're trying to see what's going to happen in the next few weeks and months. - Jonah Peretti(CEO)

Contradiction Point 4

Revenue Trends and Market Conditions

It reflects differing perspectives on the company's revenue trajectory and the underlying market conditions, which are crucial for investor expectations and strategic planning.

None - None (Introduction of the speaker)

20251107-2025 Q3: Despite the revenue decline, we still expect to deliver positive adjusted EBITDA for the full year with a step-up in Q4 driven by seasonal strength in commerce and advertising. - Jonah Peretti(CEO)

None - None (Introduction of the speaker)

2024Q4: We are seeing a decline in consumer spending which is impacting our ad business, particularly in our Tinyknot and BuzzFeed News businesses. - Jonah Peretti(CEO)

Contradiction Point 5

Affiliate Bonus Revenue

It involves changes in the company's affiliate bonus revenue, which is a significant component of the overall revenue, impacting financial forecasts and investor expectations.

None - None (Introduction of the speaker)

20251107-2025 Q3: This decline was driven by continued softness in direct sold advertising and content, a decline in affiliate bonuses from our commerce partners. - Matt Omer(CFO)

无输入内容 - None (Introduction of the speaker)

2024Q4: Our affiliate platform delivered another record quarter with affiliate bonuses up 29% driven by strong click through rates and higher yields. - Matt Omer(CFO)