Earnings call transcript Q1 2023

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, and welcome to the BuzzFeed, Inc.

First Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Amita Tomkoria, Senior Vice President, Investor Relations. Please go ahead.

Amita Tomkoria

everyone. Hi, Inc.'s Earnings BuzzFeed, Call. Quarter First to Conference XXXX Welcome Investor Vice I'm Senior of Relations. Amita Tomkoria, President

Joining us Founder and today are CFO, Marcela Peretti; Felicia Martin; President, DellaFortuna. and CEO, Jonah

annual this press to remarks today statements XXXX XX-K could call statements. today's include started, or forth future in like I materially Before make result may our Actual Factors obligation differ cause as on will report set and no remind update Form events. by this undertake assumptions to from in we our Form a our on to that those of forward-looking get contemplated take report these of materially that new are XX-Q. QX you we as opportunity today, release, are on results would results that information quarterly differ based on Any statements. these and to forward-looking forward-looking we these statements

we both our measures Relations because our adjusted A measures measures, in this margin managing release allows During financial website to management. included relevant to performance letter. for strength and are non-GAAP GAAP measure EBITDA EBITDA investors reconciliation to Investor refer release. us non-GAAP with We by is used useful to press and today's of information to business. they and adjusted financial non-GAAP to view adjusted investors press believe to similar allow our to method for including and our operational today's along in a Please the the develop present The these find earnings investor manner of establish business and of adjusted our goals operational call, margin. use performance EBITDA GAAP budgets and EBITDA

to And now I'll the over Jonah. call pass

Jonah Peretti

that massive audience from Last Thank you, are namely premium and these trends. for across With of a brands transformed and and the us everyone, to future afternoon, we you I direct IP digital today. thank media, benefit creation by Amita. creators content would AI. portfolio, my joining shared quarter, vision be for Good our poised

awareness of the level We built companies. trusted brands with have that is XXX-year-old

a millennials competitive competitive consuming our any our out to more U.S. content set Comscore. Gen in other vastly than have of according media digital helped company distribution. creator us biggest audiences, These Z and that ecosystem economy advantages carve time spend position of strategic in of recognizable platforms will advertisers, with creators. the AI be generative to shift and and incumbents scaled the and brands The the beneficiaries

creators, align years defined best teams partnering great community. in trends. these content On next our and with formats QX, made the will progress few credibility brands for to with In new be media the launching content creators by

large through is drive Tasty and us, more billion the give skills how model brands. transformation this creation conviction to video content views Xx extend of made has to and the Creator-led than views in one the Instagram For media gives the per to tools us to generated alone. more This is leading this creators distributed programs audiences. on and

new launched both its rapidly welcomed new Complex on on when creator amazing year, develop increase larger collaborate brainstorm creator recently Creators analytics to our the this for content class earlier we output. revenue and this and with And creators everyone Tasty expanding success, media Program from work residents, a inaugural are and class. of Inc. companies IP and To formats The together, results media together, network. frames build are jointly BuzzFeed,

intelligence. Audiences of static intelligence. our replace content. the speaking, progress with to will begin believe I expect generative Turning on interactive, Broadly all content majority dynamic be to begin will AI to that personalized, to artificial embedded

BuzzFeed stale and and has more and or increase and been before chatbot Xx to games. to Spent media game, In conventions in Influencer is begin be many the when past had seen of adapted developed revolution the an quizzes. were updated Under Infinity content like time why and than that the need we've formats launching of new Formats investing feel is to industry than first formats the AI chatbot outdated. and average AI-powered months, will on Time X the quizzes a higher time XX% spent quizzes. our compared spent quiz legacy by And AI-powered static This

new we Looking scale months. ahead, the including prototyping coming in that quizzes and format, we are rapidly generative will AI chatbots

and business Last Creators across this opportunities in the the work We company a have in help month, will us translate organizational completed and exciting strategic our of to into also growth. significant growth. the we changes strategic progress areas made and order for revenue that reprioritization AI position long-term accelerate reaccelerate to new

cost and of Specifically, entertainment we structure our growth, and news fixed platform-dependent resources closure believe monetization. significantly that we platforms, we our at biggest opportunities brand, future represent reduced formats drive growth focus the growing the long-term flagship propel our in and with BuzzFeed believe, HuffPost anchored go-forward our audience on and strategy aligned and a the to it our to on refocused will announced BuzzFeed significant News, areas our direct have

accelerate momentum growing audience These and changes, revenue in the close have around built us in growth. gap to position reach monetization engagement addition and formats, in we our to new and the platforms

mission and truth, to alongside on employees honored producers creativity to our unwavering the strong of continue I'm significant forward our for teams as lead cash we and era we shareholders am support our that to building expansion new journalists, talented Internet. to delivers as And of in over creators, work the and digital to joy grateful commitment business a flows media. industry our of time. this I to We spread committed an generates continue the all are margin our business in transform

look our off Day to highlights. seeing forward I'll to at our Thank call you, I operational now Investor to virtual performance and Thursday. upcoming hand and discuss business Marcela the you this

Marcela Martin

want potential to have Jonah, made in you, start of QX our we results portfolio. recap refocusing our the that on of everyone. share some performance. monetization also early focus QX our to including I progress good are efforts and Thank with you AI. our combined we afternoon, through will first driving with But full our the sales I performance, the and unlock creators brand let's

first delivered outlined to our revenues range $XX guidance and results We EBITDA. ongoing line content, shift driven revenue challenges quarter both execution and QX in last the million, digital short-form, market the by advertising sales declined the continued for adjusted XX% softness with in towards quarter. creator-led I broader

trough improvement ahead, revenue more to EBITDA. deliver to QX, details year-over-year content QX relative level, of trends and high the in revenue we both at will core But expect advertising adjusted growth to in provide we Felicia a QX. Looking terms and expect be in a modest shortly.

as from In date, execute to our to that progress, line adjusted on us mitigate against the plan we reporting with impact have structure cost driving savings Time to a positioning of the are towards we our lower order QX and fixed measure metric retention. much year announced achieve bottom will And significantly new revenue we supplement full we revenues lower cost profitability. Spent EBITDA

bring our over made order few execution, As improve mentioned to market our I clients. team synergies to the for cross-brand portfolio have enable to last wider sales brand the and months, significant in structure we changes

service brands centralized a with to horizontally sales portfolio. up the enablement teams in working now are we all and set support First,

tech driving industry these Previously, that services organization knowledge across bring increased help traditional we organization. and sales more of structure with This financial new on verticals coverage strong such retail, fragmented sales our serve Second, are relationships. and entertainment, customers focus leaders CPG, the verticals will was as us efficiently.

BuzzFeed teams consolidating have businesses the industries. the coverage and breaking and by brands brands. And finally, and for across Complex Third, we the are accelerating transfer the new amplified down silos, we knowledge

to With these we half in further changes, in drive back year-over-year are improvements the the of positioned year. trends

creator continued series continued build like McCormick. progress audience TikTok, YouTube more and respectively. In momentum series each residents again, and Shorts, QX, continue launching we class attract its surpassed earned first and from has Ways. by XX QX of household Campbell's of Potatoes new X XXX Reels The grow. once initiatives X footprint to brands views our advertiser new And we Shorts. short-form demand our a QX across in of than to its to expanded These Instagram Instagram views platforms on also turning Creators TikTok across billion already Now content viewership called episodes. Reels YouTube welcoming like Tasty on million and and AI. a around creator-driven to platforms Tasty

AI, terms content In BuzzFeed's of formats driving deep new are already AI-powered engagement.

is As very still the to quizzes early, Audiences you higher hear it content. are our and content. love Spent of this from with chatbot Jonah, interactivity, meaningfully Time we audience this although and our the personalization And shareability momentum. by encouraged static is games relative

formats, as weeks into and we we in for our We this in for store translate around months. these to engagement opportunities new have build more innovative and our to audience And continue the much clients. expect products partnership momentum coming audiences

We extended I work I brand increasing on this Thursday including our long-term will the efficient wrap expand into Creators and teams our of makes creative output content BuzzFeed, more way Before are and model to our want on we up, By future substantially for reiterate a excitement building to Inc. creation leaning my that where fixed and our you exciting drive leadership at our expected AI, you hope costs. join team Sales from without Virtual growth us how leaders more of our our Head our and hear to will is Investor Day this profitability. further

and results you. take now outlook. through financial our Thank will Felicia you

Felicia DellaFortuna

expected, Marcela. sales delivered and a quarter digital softness revenues market creator-led our to adjusted year-over-year first shift We range overall Marcela towards referenced basis, declined XXXX advertising for and EBITDA. million, XX% guidance challenges short-form as you, earlier. Thank revenue the On the QX with line both ongoing in content, results execution the in $XX.X continued broader by driven for

declined as operated decelerating XX% both quarter with driven XX% Content advertising versus to is line and with performance primarily owned million the as on year-over-year trends million, follows: to revenue our line pricing as by branded declined fourth expected, and in demand revenues quarter $XX.X pressures content by $XX.X revenues fourth expected. Performance properties. year-over-year

clients. content minimum the content retained reflects for of as are a a $XXX,XXX the a our retention, revenue customers metric of in spent net spend branded XX-month prior clients complement content advertiser number introducing branded per content function trailing both is of revenues revenue This that to serve we a branded to As period. XX-month the period KPI of prior current represent and a we revenues, period trailing which percentage

materialized outlined the negatively challenges of last As QX. year. These impacted impacts we performance versus took created prior teams the lower steps revenue BuzzFeed in quarter, form our we retention sales combine and to Complex the operational revenue in that the

advertiser per consistent year-over-year. relatively remained spend average However,

lower affiliate $XX.X $XX.X of revenue loss year-on-year lower performance million revenue Commerce and the organic year-over-year, actions other XXXX. grew million taken million, the revenues the comps the easing adjusted by resulted in X% driven in throughout $X.X EBITDA cost mitigated QX by majority This business. to our with in of quarter,

also today's $XX did be We of charges Investor measures adjusted reconciliation impact cash Relations of million. found on to incurred cash with approximately and that release press We not can the in website. ended A our our GAAP quarter available non-GAAP equivalents full EBITDA.

Time Turning and to Spent. audience engagement

audience of conjunction This to Spent, across Time our operated Time to continue third-party according terms revenue metric viewed properties in is advertising and and intended In Comscore. we U.S. with owned our platforms performance. report Spent be to

have in has captured for from our Comscore. driven previous Time video by competition not is Facebook vertical decline Spent continued content quarters, audience we As platforms with newer currently by discussed creator-driven Spent on which increased Time to

are our Facebook result from of to declines, advertising advertising material longer As revenues these a no generate overall the revenues. we

of As X, have Time we measure Facebook of Spent. from reported removed our XXXX, January

will U.S. News. Apple which Comscore, to report operated owned reflects We according YouTube properties, to Spent and Time and continue our

our strategy, us the And align the earlier, enabled owned change this broader believe to methodology focus that increase namely the reprioritization to on the operated formats and opportunities across to properties. represent platforms monetization in aligns discussed strategic future with now growth. Jonah biggest reporting resources company As for and our we has go-forward

by QX, Spent U.S. Time million hours. reported In declined X% XXX Comscore as year-over-year to

Reels Instagram continuing of audience to vertical are formats, momentum TikTok. YouTube around and video, ahead build newer In terms monetization, scale we and of including platforms Shorts, creator-led

we billions views platforms focus long-term of to confidence further creator-led of that In business QX. right generating the are in strategic continued short-form us position we and content, to the monetization. for grow driving first growth quarter, our viewership This across the gives

to the let provide films, In financial BuzzFeed Studios me second content context. I contributed revenue. with delivered QX the some quarter, outlook quarter, two revenues. our share Before Starting first year XXXX ago feature which for

For scheduled delivery QX XXXX, the quarter. in no for film projects are

experiential XXXX. the Complex a will in ago Also ComplexLand. year QX in This as quarter, hosted not repeat event metaverse event known

compared as we QX. to QX revenues, improve to ago trends year these Excluding year-over-year expect modestly

In terms fixed resources of that platforms These structure our and Marcela to and we to the propel will line adjusted mitigate cost and growth. our executed lower of breakeven to steps steps, majority took previously EBITDA, cost as impact discussed, in formats align us April, our and future reduce Jonah the further QX. from revenues in have adjusted together EBITDA savings with positioned achieve the bottom

turn will I financial that, to With outlook. our

QX XXXX, the million revenues of XX% expect ago $XX year than the we quarter. or in million For lower XX% overall $XX to range to

$X We in expect of million. decline adjusted the fully the mid-April announced in this to in we EBITDA and year $X the high with revenue expect full million, conjunction to savings executed million in result EBITDA range to cost in deliver adjusted XXXX teens

sharing margin to improvement Investor we much to about see time. As the significant you opportunity at our leverage look EBITDA plans and long-term operating more We we creators lean and forward adjusted with over Virtual Day. drive further into AI,

Thank look Investor our taking your Thursday. you, forward Day to we at questions this and

BuzzFeed (BZFD) 9 May 232023 Q1 Earnings call transcript