Press Release: BuzzFeed, Inc. Reports Q1 2025 Results and Continues to Advance High-Margin Revenue Lines and Strategy for Long-Term Growth

Dow Jones
07 May

BuzzFeed, Inc. Reports Q1 2025 Results and Continues to Advance High-Margin Revenue Lines and Strategy for Long-Term Growth

Company Taps AI to Amplify Human Creativity, Audience Engagement, and Efficiency Tools Across Publishing Business

NEW YORK--(BUSINESS WIRE)--May 07, 2025-- 

BuzzFeed, Inc. ("BuzzFeed" or the "Company") (Nasdaq: BZFD) today announced its financial results for the quarter ended March 31, 2025. The Company continued to execute on its strategy to improve profitability, expand scalable, high-margin revenue streams, and invest in future-oriented innovation.

"This quarter reflects the strength of our core publishing business and the momentum we're building with AI-assisted tools," said Jonah Peretti, BuzzFeed Founder and CEO. "Editorial output increased this quarter, and a new AI tool we're piloting improved pageviews per article by an average of 25%. We're also seeing new user behaviors emerge as audiences engage with AI-powered creation formats on BuzzFeed, and we're excited to build on that with the development of BF Island."

"We started 2025 with strong execution and continued margin improvement, " said Matt Omer, BuzzFeed CFO. "Affiliate commerce and programmatic advertising remain our most efficient revenue streams, both growing again this quarter. Importantly, both net loss from continuing operations and Adjusted EBITDA(1) improved relative to the year-ago period, above and beyond the cost savings from the Q1 2024 restructuring. We're confident in our roadmap for disciplined investment in innovation, while strengthening our foundation for long-term, sustainable growth."

First Quarter 2025 Financial and Operational Highlights for Continuing Operations(2)

   -- Total revenue was $36.0 million, compared to $37.0 million in Q1 2024, 
      which includes the expected decline in our lower-margin, direct-sold 
      business. 
 
          -- Advertising revenue grew to $21.4 million, compared to $20.9 
             million in Q1 2024. 
 
                 -- This was driven by a $2.5 million increase in programmatic 
                    revenue, which offset a $2.1 million decline in direct-sold 
                    ads. 
 
          -- Content revenue declined to $4.4 million, from $6.7 million in Q1 
             2024. 
 
                 -- This was driven by a $3.2 million decline in direct-sold 
                    content deals, partially offset by a $0.9 million increase 
                    in studio (reflecting variability based on project timing). 
 
          -- Commerce and other revenue increased to $10.2 million, compared to 
             $9.3 million in Q1 2024. 
 
                 -- This was supported by a $1.0 million increase in organic 
                    affiliate commerce. 
 
   -- Net loss from continuing operations improved to $12.5 million, from $27.0 
      million in Q1 2024, largely reflecting benefits from the Company's 2024 
      restructuring. 
 
   -- Adjusted EBITDA loss improved to $5.9 million, from $14.4 million in Q1 
      2024, a year-over-year improvement of $8.5 million. 
 
   -- Time Spent3 across BuzzFeed's properties modestly increased to 67.9 
      million hours, compared to 67.3 million hours in Q1 2024, demonstrating 
      consistent audience engagement. 
 
          -- BuzzFeed.com ranks as the #1 individual media brand in the US for 
             time spent -- surpassing every individual competitor from any 
             major digital or legacy media group. This holds true for both 
             total Time Spent as well as Time Spent by Gen Z and Millennial 
             audiences. 
 
          -- BuzzFeed.com reached 32.9 million hours in Q1 2025, a 7% 
             year-over-year increase. 

Business and Content Highlights

   -- Both programmatic advertising and affiliate commerce delivered 
      year-over-year growth for the fourth consecutive quarter. 
 
   -- Organic affiliate commerce continues to be a growth engine, powered by 
      strong product discovery experiences and contextual integration across 
      BuzzFeed's owned and operated properties. 
 
   -- BuzzFeed continues to shift toward direct audience relationships: the 
      majority (62%) of US BuzzFeed.com traffic now comes from direct visits, 
      internal referrals, and app activity -- reducing reliance on social 
      platforms and increasing resilience to algorithm changes. 

Confirming Full Year 2025 Financial Outlook

   -- Revenue expected in the range of $195 million to $210 million, 
      representing 3--10% growth year-over-year. 
 
   -- Adjusted EBITDA expected in the range of $10 million to $20 million, an 
      improvement of approximately $10 million year-over-year at the midpoint. 

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to "Forward-Looking Statements" below for information on factors that could cause our actual results to differ materially from these forward-looking statements.

Refer to "Non-GAAP Financial Measures" below for a description of how Adjusted EBITDA is calculated. While Adjusted EBITDA is a non-GAAP financial measure, we have not provided guidance for the most directly comparable GAAP financial measure -- net income (loss) from continuing operations -- due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary to forecast such a measure. Accordingly, a reconciliation of non-GAAP guidance for Adjusted EBITDA to the corresponding GAAP measure is not available.

Quarterly Conference Call

BuzzFeed's management team will hold a conference call to discuss our first quarter 2025 results today, May 7, at 2:00 PM ET. The call will be available via webcast at investors.buzzfeed.com under the heading News and Events, and parties interested in participating must register at the same location. While it is not required, it is recommended you join 5 minutes prior to the event start time. A replay of the call will be made available at the same URL.

We have used, and intend to continue to use, the Investor Relations section of our website at investors.buzzfeed.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

Definitions

BuzzFeed reports revenues across three primary business lines: Advertising, Content, and Commerce and other. The definition of "Time Spent" is also set forth below.

   -- Advertising revenues are primarily generated from advertisers, both 
      programmatically and directly, for ads distributed against our editorial 
      and news content, including display, pre-roll, and mid-roll video 
      products. We distribute these ad products across our owned and operated 
      sites as well as third-party platforms, primarily YouTube and Apple News. 
 
   -- Content revenues are primarily generated from clients for custom assets, 
      including both long-form and short-form content, from branded quizzes to 
      Instagram takeovers to sponsored content. Studio generally includes 
      revenue from films, content licensing, TV projects, and other projects 
      inspired by BuzzFeed IP. 
 
   -- Commerce and other revenues consist primarily of affiliate commissions 
      earned on transactions initiated from our editorial shopping content. 
      Revenues from our product licensing businesses are also included here. 
 
   -- Time Spent captures the time audiences spend engaging with our content 
      across our owned and operated sites, as well as YouTube and Apple News, 
      as measured by Comscore. This metric excludes time spent with our content 
      on platforms for which we have minimal advertising capabilities that 
      contribute to our advertising revenues, including Instagram, TikTok, 
      Facebook, Snapchat, and X (formerly Twitter). There are inherent 
      challenges in measuring the total actual number of hours spent with our 
      content across all platforms; however, we consider the data reported by 
      Comscore to represent industry-standard estimates of the time actually 
      spent on our largest distribution platforms with our most significant 
      monetization opportunities. 

About BuzzFeed, Inc.

BuzzFeed, Inc. is home to the best of the internet. Across entertainment, news, food, pop culture, and commerce, our brands drive conversation and inspire what audiences watch, read, and buy now--and into the future. Born on the internet in 2006, BuzzFeed is committed to making it better: providing trusted, quality, brand-safe news and entertainment to hundreds of millions of people; making content on the Internet more inclusive, empathetic, and creative; and inspiring our audience to live better lives.

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures and represent key metrics used by management and our board of directors to measure the operational strength and performance of our business, to establish budgets, and to develop operational goals for managing our business. We define Adjusted EBITDA as net loss from continuing operations, excluding the impact of net income (loss) attributable to noncontrolling interests, income tax provision, interest expense, net, other (income) expense, net, depreciation and amortization, stock-based compensation, change in fair value of warrant liabilities, restructuring costs, and other non-cash and non-recurring items that management believes are not indicative of ongoing operations. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the same period.

We believe Adjusted EBITDA and Adjusted EBITDA margin are relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by our management. There are limitations to the use of Adjusted EBITDA and Adjusted EBITDA margin, and our Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

Adjusted EBITDA and Adjusted EBITDA margin should not be considered a substitute for measures prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data.

Forward-Looking Statements

Certain statements in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Our forward-looking statements include, but are not limited to, statements regarding our management team's expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts (including our outlook for 2025), or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "affect," "anticipate," "believe," "can," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intend," "may," "might," "plan," "possible," "potential," "predict," "project," "seek," "should," "target," "will," "would," and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: (1) macroeconomic factors including: adverse economic conditions in the United States and globally, including the potential onset of recession; potential government shutdowns or failure to raise the U.S. federal debt ceiling; current global supply chain disruptions; the ongoing conflicts between Russia and Ukraine and between Israel and Hamas and any related sanctions and geopolitical tensions, and further escalation of trade tensions between the U.S. and its trading partners; tariffs; the inflationary environment; and the competitive labor market; (2) developments relating to our competitors and the digital media industry, including overall demand of advertising in the markets in which we operate; (3) demand for our products and services or changes in traffic or engagement with our brands and content; (4) changes in the business and competitive environment in which we and our current and prospective partners and advertisers operate; (5) our future capital requirements, including, but not limited to, our ability to obtain additional capital in the future, to repurchase our $29.7 million aggregate principal amount of unsecured convertible notes due 2026 (i.e., the "Notes") upon a fundamental change such as the delisting of our Class A common stock, at their maturity, or upon the holders of the Notes requiring repayment of their Notes on or after May 31, 2025, any restrictions imposed by, or commitments under, the indenture governing the Notes or agreements governing any future indebtedness, and any restrictions on our ability to access our cash and cash equivalents; (6) developments in the law and government regulation, including, but not limited to, revised foreign content and ownership regulations, and the outcomes of legal proceedings, regulatory disputes, or governmental investigations to which we are subject; (7) the benefits of our restructuring; (8) our success divesting of companies, assets, or brands we sell, or in integrating and supporting the companies we acquire; (9) our success in launching new products or platforms, including any new social media platform; (10) technological developments including artificial intelligence; (11) our success in retaining or recruiting, or changes required in, officers, other key employees or directors; (12) use of content creators and on-camera talent and relationships with third parties managing certain of our branded operations outside of the United States; (13) the security of our information technology systems or data; (14) disruption in our service, or by our failure to timely and effectively scale and adapt our existing technology and infrastructure; (15) our ability to maintain the listing of our Class A common stock and warrants on The Nasdaq Stock Market LLC; and (16) those factors described under the sections entitled "Risk Factors" in the Company's annual and quarterly filings with the Securities and Exchange Commission.

Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. There may be additional risks that we consider immaterial or which are unknown. It is not possible to predict or identify all such risks. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

 
________________________________ 
(1) As used throughout, Adjusted EBITDA is a non-GAAP financial measure. Refer 
to "Non-GAAP Financial Measures" above for a description of how it is 
calculated and the tables at the back of this earnings release for a 
reconciliation of our GAAP and non-GAAP financial results. 
(2) The historical financial results of Complex Networks and First We Feast 
have been reflected as discontinued operations in our condensed consolidated 
financial statements. Amounts presented throughout this earnings release are 
on a continuing operations basis. 
(3) Refer to the definition of "Time Spent" above. 
 
 
                             BUZZFEED, INC. 
                          Financial Highlights 
                   (Unaudited, dollars in thousands) 
 
                             Three Months Ended March 31, 
                         ------------------------------------ 
                                2025               2024         %Change 
                         -------------------  ---------------  --------- 
Advertising              $        21,387      $       20,944       2% 
Content                            4,424               6,735     (34)% 
Commerce and other                10,210               9,330       9% 
                             -----------          ----------   ----- 
Total revenue            $        36,021      $       37,009      (3)% 
Loss from continuing 
 operations              $       (13,742)     $      (23,466)     41% 
Net loss from 
 continuing operations   $       (12,461)     $      (26,950)     54% 
Adjusted EBITDA          $        (5,894)     $      (14,367)     59% 
 
 
                              BUZZFEED, INC. 
                  Condensed Consolidated Balance Sheets 
  (Unaudited, dollars and shares in thousands, except per share amounts) 
 
                                         March 31, 2025     December 31, 
                                           (Unaudited)          2024 
                                        ----------------  ---------------- 
Assets 
Current assets 
    Cash and cash equivalents           $        34,326   $      38,648 
    Accounts receivable (net of 
     allowance for doubtful accounts 
     of $910 as at March 31, 2025 and 
     $1,039 as at December 31, 2024)             36,455          48,944 
    Prepaid expenses and other current 
     assets                                      17,248          13,294 
                                            -----------       --------- 
Total current assets                             88,029         100,886 
    Property and equipment, net                   5,023           6,195 
    Right-of-use assets                          23,914          28,562 
    Capitalized software costs, net              22,950          22,653 
    Intangible assets, net                       12,387          11,751 
    Goodwill                                     43,304          43,304 
    Prepaid expenses and other assets             7,642           8,047 
                                            -----------       --------- 
Total assets                            $       203,249   $     221,398 
                                            ===========       ========= 
Liabilities and Stockholders' Equity 
Current liabilities 
    Accounts payable                    $         7,314   $      14,251 
    Accrued expenses                             22,212          18,881 
    Deferred revenue                              2,729             555 
    Accrued compensation                         13,546          11,668 
    Current lease liabilities                    21,423          22,084 
    Current debt                                 23,690          25,518 
    Other current liabilities                     5,182           3,879 
                                            -----------       --------- 
Total current liabilities                        96,096          96,836 
    Noncurrent lease liabilities                  9,929          15,138 
    Warrant liabilities                             543           1,778 
    Other liabilities                               389             704 
                                            -----------       --------- 
Total liabilities                               106,957         114,456 
Commitments and contingencies 
Stockholders' equity 
    Class A common stock, $0.0001 par 
     value; 700,000 shares authorized; 
     37,182 and 37,025 shares issued 
     and outstanding at March 31, 2025 
     and December 31, 2024, 
     respectively                                     3               3 
    Class B common stock, $0.0001 par 
     value; 20,000 shares authorized; 
     1,343 and 1,343 shares issued and 
     outstanding at March 31, 2025 and 
     December 31, 2024, respectively                  1               1 
    Additional paid-in capital                  731,734         730,369 
    Accumulated deficit                        (634,535)       (621,864) 
    Accumulated other comprehensive 
     loss                                        (3,407)         (3,735) 
                                            -----------       --------- 
Total BuzzFeed, Inc. stockholders' 
 equity                                          93,796         104,774 
                                            -----------       --------- 
    Noncontrolling interests                      2,496           2,168 
                                            -----------       --------- 
Total stockholders' equity                       96,292         106,942 
                                            -----------       --------- 
Total liabilities and stockholders' 
 equity                                 $       203,249   $     221,398 
                                            ===========       ========= 
 
 
                               BUZZFEED, INC. 
              Condensed Consolidated Statements of Operations 
   (Unaudited, dollars and shares in thousands, except per share amounts) 
 
                                           Three Months Ended March 31, 
                                      -------------------------------------- 
                                             2025                2024 
                                      -------------------  ----------------- 
Revenue                               $        36,021      $       37,009 
Costs and expenses 
    Cost of revenue, excluding 
     depreciation and amortization             23,492              27,139 
    Sales and marketing                         4,258               8,378 
    General and administrative                 14,362              16,249 
    Research and development                    3,066               3,230 
    Depreciation and amortization               4,585               5,479 
                                          -----------          ---------- 
Total costs and expenses                       49,763              60,475 
                                          -----------          ---------- 
Loss from continuing operations               (13,742)            (23,466) 
    Other income (expense), net                 1,298                (556) 
    Interest expense, net                      (1,171)             (2,209) 
    Change in fair value of warrant 
     liabilities                                1,234                 (37) 
                                          -----------          ---------- 
Loss from continuing operations 
 before income taxes                          (12,381)            (26,268) 
    Income tax provision                           80                 682 
                                          -----------          ---------- 
Net loss from continuing operations           (12,461)            (26,950) 
    Net loss from discontinued 
     operations, net of tax                         -              (8,832) 
                                          -----------          ---------- 
Net loss                                      (12,461)            (35,782) 
    Less: net income (loss) 
     attributable to noncontrolling 
     interests                                    210                 (53) 
                                          -----------          ---------- 
Net loss attributable to BuzzFeed, 
 Inc.                                 $       (12,671)     $      (35,729) 
                                          ===========          ========== 
Net loss from continuing operations 
 attributable to holders of Class A 
 and Class B common stock: 
    Basic and diluted                 $       (12,671)     $      (26,897) 
Net loss from continuing operations 
 per Class A and Class B common 
 share: 
    Basic and diluted                 $         (0.33)     $        (0.74) 
Weighted average common shares 
 outstanding: 
    Basic and diluted                          38,683              36,578 
 
 
                               BUZZFEED, INC. 
              Condensed Consolidated Statements of Cash Flows 
                       (Unaudited, USD in thousands) 
 
                                           Three Months Ended March 31, 
                                      -------------------------------------- 
                                             2025                2024 
                                      -------------------  ----------------- 
Operating activities: 
Net loss                              $       (12,461)     $      (35,782) 
Less: net loss from discontinued 
 operations, net of tax                             -               8,832 
                                          -----------          ---------- 
Net loss from continuing operations           (12,461)            (26,950) 
                                          -----------          ---------- 
Adjustments to reconcile net loss to 
 net cash provided by (used in) 
 operating activities: 
    Depreciation and amortization               4,585               5,479 
    Unrealized gain foreign currency             (501)                (46) 
    Stock based compensation                    1,377                 704 
    Change in fair value of warrants           (1,234)                 37 
    Amortization of debt discount 
     and deferred issuance costs                  546                 489 
    Deferred income tax                             3                 493 
    Provision for doubtful accounts              (129)                (74) 
    Non-cash lease expense                      4,716               4,261 
    Changes in operating assets and 
     liabilities: 
        Accounts receivable                    13,131              28,912 
        Prepaid expenses and other 
         current assets                        (3,163)              1,085 
        Accounts payable                       (6,886)            (23,184) 
        Accrued compensation                    1,372               6,253 
        Accrued expenses, other 
         current liabilities, and 
         other liabilities                      4,277               3,315 
        Lease liabilities                      (5,952)             (5,115) 
        Deferred revenue                        1,663                 488 
                                          -----------          ---------- 
Cash provided by (used in) operating 
 activities from continuing 
 operations                                     1,344              (3,853) 
Cash used in operating activities 
 from discontinued operations                       -              (9,446) 
                                          -----------          ---------- 
Cash provided by (used in) operating 
 activities from continuing 
 operations                                     1,344             (13,299) 
                                          -----------          ---------- 
Investing activities: 
Capital expenditures                             (388)                (88) 
Capitalization of internal-use 
 software                                      (3,128)             (3,330) 
Business combination, net of cash 
 acquired                                        (233)                  - 
Proceeds from sale of asset                       300                   - 
                                          -----------          ---------- 
Cash used in investing activities 
 from continuing operations                    (3,449)             (3,418) 
Cash provided by investing 
 activities from discontinued 
 operations                                         -             108,575 
                                          -----------          ---------- 
Cash (used in) provided by investing 
 activities                                    (3,449)            105,157 
                                          -----------          ---------- 
Financing activities: 
Payment for shares withheld for 
 employee taxes                                   (25)                  - 
Borrowings on Revolving Credit 
 Facility                                           -             (33,837) 
Payment of consent solicitation fees           (2,089)                  - 
Payment on Convertible Notes                     (285)            (30,900) 
Proceeds from the issuance of common 
 stock in connection with the 
 at-the-market offering, net of 
 issuance costs                                   (55)                  - 
Payment of early termination fee for 
 Revolving Credit Facility                          -                $(500.SI)$ 
Payment of deferred issuance costs                  -                (591) 
                                          -----------          ---------- 
Cash used in financing activities              (2,454)            (65,828) 
                                          -----------          ---------- 
Effect of currency translation on 
 cash and cash equivalents                        237                (160) 
                                          -----------          ---------- 
Net (decrease) increase in cash and 
 cash equivalents                              (4,322)             25,870 
Cash and cash equivalents at 
 beginning of period                           38,648              35,637 
                                          -----------          ---------- 
Cash and cash equivalents and 
 restricted cash at end of period     $        34,326      $       61,507 
                                          ===========          ========== 
 
 
                               BUZZFEED, INC. 
                     Reconciliation of GAAP to Non-GAAP 
                       (Unaudited, USD in thousands) 
 
                                           Three Months Ended March 31, 
                                      -------------------------------------- 
                                             2025                2024 
                                      -------------------  ----------------- 
Net loss from continuing operations   $      (12,461)      $     (26,950) 
Income tax provision                              80                 682 
Interest expense, net                          1,171               2,209 
Other (income) expense, net                   (1,298)                556 
Depreciation and amortization                  4,585               5,479 
Stock-based compensation                       1,377                 704 
Change in fair value of warrant 
 liabilities                                  (1,234)                 37 
Restructuring(1)                               1,886               2,916 
                                          ----------  ---      --------- 
Adjusted EBITDA                       $       (5,894)      $     (14,367) 
                                          ==========           ========= 
Adjusted EBITDA margin                         (16.4)%             (38.8)% 
Net loss from continuing operations 
 as a percentage of revenue(2)                 (34.6)%             (72.8)% 
 
________________________________ (1) We exclude restructuring expenses from 
our non-GAAP measures because we believe they do not reflect expected future 
operating expenses, they are not indicative of our core operating 
performance, and they are not meaningful in comparison to our past operating 
performance. (2) Net loss from continuing operations as a percentage of 
revenue is included as the most comparable GAAP measure to Adjusted EBITDA 
margin, which is a Non-GAAP measure 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250506032401/en/

 
    CONTACT:    Media Contact: juliana.clifton@buzzfeed.com 

Investor Relations: investors@buzzfeed.com

 
 

(END) Dow Jones Newswires

May 07, 2025 09:00 ET (13:00 GMT)

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