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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