BuzzFeed (BZFD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 24% year-over-year to $46.9 million, but net loss from continuing operations improved to $6.5 million from $22.5 million, and Adjusted EBITDA reached $2.7 million, up from a $(2.2) million loss, reflecting cost reductions and operational efficiencies.

• Programmatic advertising and affiliate commerce revenues grew 3% and 9% year-over-year, respectively, while content revenue fell 48%.

• Audience engagement and loyalty increased, with 11% growth among Millennials and Gen Z, and 90% of audience time now on owned and operated properties.

• The company completed the sale of Complex Networks for $108.6 million in February 2024, classifying its results as discontinued operations and using proceeds to repay debt.

• Workforce was reduced by 16% in early 2024 to streamline operations and improve profitability.

Financial highlights

• Q2 2024 revenue was $46.9 million, down 24% year-over-year; six-month revenue was $91.7 million, down 22%.

• Net loss from continuing operations improved to $6.5 million in Q2 2024 from $22.5 million in Q2 2023; Adjusted EBITDA was $2.7 million, up from $(2.2) million.

• Programmatic advertising revenue grew 3% year-over-year to $16.0 million; affiliate commerce revenue increased 9% to $10.4 million; commerce and other revenues totaled $11.7 million, up 7%.

• Cash and cash equivalents at June 30, 2024 were $45.5 million, up from $35.6 million at year-end 2023.

• Cost of revenue, sales and marketing, and G&A expenses all declined significantly year-over-year due to restructuring and cost-saving measures.

Outlook and guidance

• Q3 2024 revenue expected between $58 million and $63 million, or 3% lower to 5% higher year-over-year.

• Adjusted EBITDA guidance for Q3 is $6 million to $11 million, about $8 million higher year-over-year at midpoint.

• Management expects continued revenue pressure in 2024 due to macroeconomic uncertainty and a strategic focus on programmatic and affiliate revenue.

• Content revenue is expected to decline further as the company shifts away from direct sold content.

• No material lift from political ad sales expected in Q3; most election-related spend anticipated in Q4.