BZFD - Earnings call transcript Q4 2023

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Operator

Thank you for standing by, and welcome to BuzzFeed, Inc.'s Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] I would now like to hand the call over to SVP, Investor Relations, Amita Tomkoria. Please, go ahead.

Amita Tomkoria

Thank you. Hi, everyone, welcome to BuzzFeed, Inc.'s Fourth Quarter 2023 Earnings Conference Call. Vice Investor Senior Tomkoria, Amita President Relations. of I'm CEO, and CFO, joining me Omer. Peretti; are today And Matt Jonah

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

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

Jonah Peretti

our as mission the the Internet everyone, creativity never afternoon, as we itself. as to for been content important been a formats truth, brands to way BuzzFeed, today. At the company most some Good joining the embracing always to focused we is Amita. with and and on content you thank as the have just us conventional medium mission new media and obsessed on pursue are ways we the spread We've the you, Thank joy We've life, new built By our output. bring create with iconic Internet. of to technologies, pioneering innovating new message. on

the brands, media the of New BuzzFeed, to according have iconic fandom of Tasty, and the core continue Comscore. we AI build and York combined Ones, of refocused HuffPost, Hot in defining Times front to shareability, teams we and been us in identity, and fandoms And -- based be identity of as norm connect to and wasn't but into inspiring much XX early firming purpose-built commonplace, people and it of establishing shareable, part years, foundational to media. started, past when passion. the as content maturing, emerging, for are we've coming ubiquitous medium groups responsible for Mr. tenets believe tremendous opportunity company Beast. By the for empowering content a capitalize these work era. To on relatable, the for social is It media outlets we I share be our our industry this Our QX the affinity which diverse our time opportunity, to now over lead shared business We aggressively this First on spent in around terms have Feast to same

would backdrop, monetization, where some our highest-margin, control this and Our advertising have most we business. important and and like programmatic updates over revenue a our tech-led I more affiliate as apps exciting share to websites owned on and operated commerce. With scalable, streams,

of announced $XXX XXXX media. deal revenue The an unprecedented for of the month, last brought operate to sale in the all-cash in that continue company. change Xx We period Complex digital we in approximately a million for for

the with coincided XXXX in market. Complex the downturn of advertising in acquisition Our

So business able around asset our opportunities. The our marks other tech-led close as revenue we streams. ended lower-margin content the up high-margin, portfolio against BuzzFeed, each an drive refocus bigger and an events. Complex Inc., sale from available video bundled of scalable, for instead that revenues was of each businesses, being brands competing predominantly custom-branded smaller inflection to deals, point for the

[ headwinds Following have the less quarters. Further, high-margin, selling our affiliate over of sale, the generated the and experienced have and tech and that last allowed sale better our interest our us proceeds both revenue reduce has where build advertising exposure leverage working can improved now debt obligations the us ops liquidity, and our is programmatic our amazing market monetization Complex commerce, existing capital-efficient, restructure we to experiences businesses optimize infrastructure majority our our and and also and that control secular we capital. through ], several sites for The own to around business scalable helping audience.

company nimble. our is most historically result, organized lines profitable now stable, and a As business been the that around the have

HuffPost, margin operations a for combined First We and BuzzFeed, gross approximately difference including to margin fact, was compared business, revenues a Tasty, Complex, XXX Ones as of from continuing gross points. XX% on across In Hot the XX% Feast basis

last continuing Turning in Complex, revenues month. XX% Fourth our down results $XX were financial operations, with revised to year-over-year, our quarter excluding outlook line million, our for provided

line EBITDA will in changes also shortly. We of performance, fourth quarter improvements satisfied made million, our discuss outlook. its our We adjusted aren't with which I to with in $XX revised performance, drive and delivered

were million, generated versus First approximately XX% also prior an Full $XXX loss revenues $XXX adjusted $X million also breakeven of million, year-over-year. EBITDA the were year revenues We down down. EBITDA in adjusted year. year

despite reflects remained cost throughout XXXX. which we initiatives implemented relatively year, pressure, saving full the For significant QX both the stable year-over-year EBITDA and line top adjusted

current made as this it as our some outline revenue worthwhile of we've strategic in I dynamics think is the decisions environment. performance adapt well impacting the to to

be between First, time platforms. for largest by impacted competition intense continue digital to publishers the audience

on audience to which time based try revenues platforms has spent. sending are less impacted to drive these they to traffic ability users, advertising As our retain publishers,

go custom-branded has They opportunities. To target resulted of advertising, another This a longer offerings brands. with our Second, want collection are our ended you market in no against I'm one often to for forego with for address one environment, demand campaigns. experiential fewer changes brand, brands events. And deeper lower excited and for -- they these headwinds, In limited budgets, had this video looking one strategic for also products audience. competing with specific to have that to in tough from digital are custom-branded advertising with share today. up partners have organizational third, a we clients made

where dependence loyal, more highly-engaged are our and on monetization. control order in have audience our we on First, the new reduce owned we content over a platforms with prioritizing initiatives operated audience websites apps, traffic, to for major and

are formats human our we to for get harnessing are leaning more efficient. includes more teams AI-assisted as Specifically, make content leverage the audience, our our on well This engaging that AI and more into that as tools clients power tech AI of and creativity.

we Second, advertising moving away revenue Together, focus affiliate video million profitability step these margin the XXXX. of in Divesting video Complex margin businesses revenue, some This was drove on as our majority also revenue. commerce. in a to tech-led positioning $XXX Complex are line, lowest this drove improve than scalable, to direction specifically more since from us our result. of programmatic most highest was and branded revenue and a significant branded in

we competitive strategy costs to company and to by and infrastructure the according brands, content we identity. restructuring direct of Feast a BuzzFeed, media we in To other Third, enable this, centered established Comscore. a programmatic drive to We Tasty, continue Ones. terms leverage In resources with We each by strong brand. our And marketplace. Across tech Hot to our Feast I we confident and HuffPost, individual in is again our to time that than more centralized our any reduce shared This much digital for operating spent of network implemented QX, team more driven IP on revenue. audiences because includes across BuzzFeed, brands, of First brand industry team we lead sales Hot program it leadership last are consuming is time reorganizing and set our trusted once you spent. Tasty, month First our dedicated This the this our and the am existing differentiated the our as has HuffPost, in Ones. business right with leaner is direct advertising sales

is entertainment BuzzFeed, and For pop Internet. the culture, curating it the best of

AI-assisted website develop more As and huge we a more new around even users. formats with people experience, we our see innovate opportunity and deep young to and app-based continue personalized to reach engagement loyal

quarter-over-quarter grew spent time among page view XXXX. audience, per In our throughout we fact, app-based

up new X For breaking news brand in shopping HuffPost, of content to audience revenue. direct for of advertising front new also page its a both massive audience-centric reaching new expanded in and opened The coverage audience. have podcasts, which ways with is stories sources it's

XXX platforms. to and year-over-year integrations with momentum Tasty continues creators, For short than next into Xx for lead translated competitor, cross-platform million opportunities recipe to life. creators brand generation in impressive has followers, advertiser-sponsored creator of its billion form viewership in across Tasty, size with with connect of it's XX% the partner the video growth of experiences closest views sponsorships content, XXXX, building real Tasty creator-led food the In this X to content of food next more including up Tasty reach way. brands new us, creator and drove the lovers to series,

Dell the intersection Hot it build of food new with with demand universe Ones [ Ones [ building Heat serve Feast, to franchises pop of over The IP relevance household its billion names Hot culture. the Hot spin-off Ones For like Sprite, insatiable its the and continues Pockets. launches XX to ] and to ] continue Years like episode First minutes We and is premium like cultural series With at CPG and attract and expanding Hot date, watched sponsorships Snickers. on fans, more

want I wrap I reiterate the excitement Before up, future. to for my

stabilize our taken business. have to steps We

the building our build organized media have are innovating around to create future on by the have AI a stronger defining and opportunity to front company lines, this we business foundation excited media. More of to we era. tremendous us continue We specifically, most the in of for profitable

Inc. see live have emerge BuzzFeed, at new flourish. place AI the will and believe way as AI The a an is way way few the interact. in Creativity We of entirely be only vastly different I a we power we forefront And change. that of will the medium. and the Internet we transforming years. the to work, begun will

while it evolves, AI We are adapt new our hand technology from businesses is creative we tool and continue opportunities already more be I entirely foresee a own businesses, more to of existing our emerging primarily capabilities and revenue learn now the our work new to annual to to harnessing as experimentation partners efficient. And performance today, employees, and forward and next I vision, this excited and the realize our to to letter over creators, AI. to in call to with to outlook. discuss financial alongside shareholders shareholders I'm month. I'll our look more you, and sharing Matt

Matt Omer

of remarks you, Thank Jonah. strength to want Jonah's regarding I business. our go-forward echo the

us the more sale less believe video our a to exposure of program We we executed, behind With and lower-margin nearly stronger, Complex restructuring profitable now declining have we business. more stable and are revenues. fully branded

reduced positioned we go-forward have large, also count cost profitably. do down And meaningfully a sustainably cash peers work significantly while the headwinds revenue publishers forward navigate and to paying business have and at obligations. And of a better head significant are our reduced traffic to believe to and we of our structure. I interest and our facing debt, We result cash address have portion we go-forward the still way as digital our than our

our to quarter on results. Moving fourth

outlook As month. direct here on line $XX.X year-over-year year-over-year Complex. Overall Advertising are XX% $XX.X lower revenues. and last which driven year-over-year million, revenues by a was with QX revenues provided comparables million, XX% continuing declined as operations excludes Performance to reminder, to we all in basis, declined predominantly by revised line revenue XXXX a presented the financials sold for follows:

portfolio uncertainty many direct channel advertising respect current time and clients with their been of budgets impacted to trends has our more in challenging in acutely brands market. face into spending. by sales a which Bundling our proved the Our own single a during

driven referral our according as content across platforms driven offset advertising, advertising revenues, properties declined to programmatic advertising large of decline with our year-over-year In moderate programmatic with majority to our growth advertising QX, entirely owned a makes on by U.S. spent Comscore in spent conjunction are XX% Now continue in more and hours, of the third-party on by significant spent time revenues, driven declines traffic and Comscore. In saw platforms. contrast, revenues across revenues audience properties. The declines ongoing operated QX. This in reported our up we which report to million operated which part by primarily by trends by platforms. year-over-year from U.S. our platforms, owned and in was in time XX XX% time third-party third-party

and However, primarily XX% in the once companies continued have products, ad initiated driven declined content generated decline $XX market, of of of to net declined $X.X we again with to X% brand per we from revenues media other year-over-year, by digital on operations. revenues allocated spend digital was any we year-over-year Amid expenses a in lower advertisers. competitive our by on to in which also branded outpaced important editorial delivered have million content. We content content adjusted note commerce our commissions peer the set. Content number of revenue fourth a It our experience for the are million, retention million to driving revenues year-over-year. driven are top February our discontinued of shopping quarter ad that described. Commerce overall QX million, Nearly branded of GAAP, outlook. lower focused $XX.X trends is I $XX.X just at earned not The aimed transactions custom-branded typically from U.S. or demand tighter all our funnel, EBITDA shared line awareness.

shared and fourth a of Complex's includes year are corporate quarter EBITDA adjusted our full XXXX As expenses, significant. result, which portion

Jonah and profitability XX% million. million interest of has credit of balance convertible HuffPost, sales operations, revolving the repaying approximately of gross Complex, of used the includes the $XX.X it XX% Feast result XXXX, continuing a deal as approximately $XXX which were $X.X by combined the fourth facility for We outstanding all-cash ended an meaningfully. We across company's par million. We to eliminated of considerations. the the $XX.X a However, cash as sale we our the underlying proceeds at cash redeem note million plus accrued value revenues will full operations and in company's million, million, plus and accrued million, the on closed so from to In equivalents the sale month, we working announced program margin interest of additional retained already the optimization ongoing And Tasty discussed with last $XXX BuzzFeed, million and First the general improved including we of for of earlier, in when for gross approximately in $X certain to business cash The $X.X corporate margin Complex. We compared including $XX for Complex the as in quarter February, range ]. finance capital restructuring [ remaining estimated proceeds will be seeds in purposes. strategic cash

balance see, towards And we our made in and already As into liquidity. streams, you to have as can cash-profitable meaningful revenue make strides business. more highest becoming expect margin ahead, we overall strengthening lean even progress our looking improving sheet we a

some our financial with share quarter, I before context. Starting revenues. me outlook the provide for So first let

which to in the have I had against with prolonged time a As delay backdrop in earlier, that discussed brands, pullback a portfolio market advertising our of reflects of market performance brands portfolio or of environment. our macroeconomic with challenges spending going of revenue uncertainty the the is, a bundled the bundled during a partners

made As and shifts revenue organizational Jonah outlined in some we earlier, strategic business drive to environment. this improvement have adapt and our

Specifically, we've distributed business and revenue time relative and owned performed where refocused to our operated better in trends apps, the spent around the and websites network. have both

we drove which adopted And revenues. Each in better content streams, affiliate year-over-year significantly team most our of our in differentiated revenue to We of tech direct drive position channel a leadership for with highest leverage QX and a have and resonate direct to proposition a commerce, fared among more brands with core marketplace, our revenue advertising our sales and to existing in branded and the we a advertising programmatic value revenue This leaner much approach. XXXX brand-first programmatic trends million audience $XXX have go-to-market terms continue as its margin infrastructure prioritized includes sales operating advertisers. and business. relative scalable than in and

an time opportunity see this, affiliate advertising programmatic and drive trends on revenue building improved So we commerce. in to over

websites our individually, on partners. we continue our As much deepen where and apps engagement to with control over and to operated relationships our AI-assisted more market monetization formats and audience owned our retail brands we bring introduce have to drive

outlook In terms our of benefit program. a reflects of recently adjusted EBITDA, announced our partial QX restructuring

the is $XX compensation As approximately reminder, drive in cost to expected program annualized a million savings.

executed the the program fully We to end be by expect April. of

in perspective, And that cost adjusted be so pressure. improvement looking we drive ahead, significant of expect we operating will our more a from despite expenses to representative year-over-year top the QX ongoing much And EBITDA structure. QX our expect line

figures basis. on our operations that, with continuing financial to are presented comparables and turn outlook. All a So I'd

in to of expect revenues million to million, year lower million QX adjusted at XX% quarter. we than or approximately of million And million, overall improvement ago expect $XX $XX For an the $X to XX% range the $XX in losses EBITDA the XXXX, range of $XX the we year-over-year midpoint.

sheet have to and up, want structure wrap cash that cost stronger you. I a programmatic cash meaningful businesses have build positive I significantly affiliate our changes Before the I'll hand positioned to the questions. made, balance much steps reducing to prioritize high-margin a highlight XXXX, can and our Amita we take specifically we us becoming so to and call business. Thank back in take to

Amita Tomkoria

Great. Thanks, Matt.

received I've during and of the which the questions have call gathered a bunch call, We ahead here. of

first go when like you about we bit impact Can ahead we'll and some this around talk So and the is see up of of the might for into numbers? we showing more in little question a get right how it. Jonah, impact AI. might the you,

Jonah Peretti

question. Thanks Yes. the for

affiliate margin, to lot and and those that businesses our scalable, impact business, leverage lines for are business revenue be is revenue our get can exciting tech-enabled high lines. a of additional technology and particular. What's highly in applying you affiliate will on both is AI So lines, of which programmatic the programmatic first about core so they're

for at machine in recent that's huge look actually you of enhanced. It person have contextually LLM, and with recently AI, with to ads a programmatic been someone wouldn't all alignment difference. a ability content -- now the If shopping, of that understand articles means the browsing with things to understand things and very maybe article. content everyone to that in and it, understand advertising knows actually to read greatly buying kind are like have is contextual all opportunities you. the that make ability That's we had AI perfect same the personalized of pick But our all it's future. that transactions possible. advertising the and you're able can alignment the particularly to have developments personal that for to the a possible our read of you've The our bought with something possible of previously, their until content feel the will to contextual align able -- And be who knows additional have in recommendations drive who articles, and if shopper of own interested can and

AI starts have where those new wasn't be will as is AI So we where And our to existing -- there apply lines invented yet, we're think big I I a new been two opportunity possible business. to to going great businesses invent business are But that at new -- think possible that medium. just seeing before. are BuzzFeed areas be help the haven't medium that new to power a content

programming to play was with we're of lot that is all okay, look faces, can because for tend at and out or show first quick made use or period. some when historical things a close this companies TV they a smart content plays to companies they is during a sort isn't television there distribute people to medium, cut, they that make put look say, invented media to medium, today, on was familiar out They seeing that at something the older when the mistake a a an that is change and new did where of TV from we radio changes, radio thing on use how so shows medium way all up we quickly, people's new. that the that media analogy, TV, the about the a prerecorded best television And watching it. Turns know were television, of figured the

very content intelligence similar with feels are driver see we of is companies that what the emerge, think a that is that that digital a thing for embedded experience can to that where happen And think that of particularly things beginning it, of I were teams different right new with the starting start never previously. and can in that to AI-powered future content new personalize to possible to going for is all growth of our be interact content medium more now content create like people, that I media the starting as the alive, huge has people. to benefit as BuzzFeed, medium companies, just and starts is

Amita Tomkoria

for you, of topic Matt, Great. is on profitability. the next the question

So just guidance, you Can business the profitable us just we of and QX mentioned your losses? in step transaction forecasting that? your remarks, is on BuzzFeed becoming about through Complex of side that kind you EBITDA to a relative other adjusted think which how the more should

Matt Omer

I mean, full our by so immediate year you just Yes. looking the profitability results. at see XXXX impact can

Complex. margin consolidated So XX% was to operations include as business XX% when for you continuing gross the compared for

guidance, of in of cost million a year-over-year. drop fully of to restructuring. Again, expected impact program QX is which difference recent approximately recent and to annualized the executed expected be most our savings, XXX to but compensation end better partial the lower terms cost expect only a restructuring basis by is of that the the a reminder, despite impact million is in we April. saving as $XX points. And adjusted cumulative at This initiatives, reflects be year-over-year So last revenues, EBITDA $X year's midpoint, of

cost ahead, And will QX be our operating structure. much that ongoing representative of expenses we expect our looking so more

Amita Tomkoria

maybe Jonah, you. back it. Got to

what no about of can these Or source -- of video mean elaborate types on bit from shift talked products branded more? you does just that that to so video, mean? that as clients? In away branded Does you longer like a terms you'll mean of revenue. offer moving that Does

Jonah Peretti

Yes.

with way one-off previously was its on a video is video, video, succeed challenge form biggest the video needs YouTube to on is platform posted own. had think branded production, not is every with scalable, very and I video or would durable say platform a that of social we operated video I single the a where that like the

the on it's of a branded come someone idea with branded And a side, natural it. for or necessarily up watch lot single to that home integration every for doesn't reason to have unique work some

it's so from clients. Really, So video a form IP. how is and standpoint or lot thought I because unique don't for costs think differentiated with feature we've great dollars of be margin it's of to smarter standpoint, from but to great put this and video, partnerships video a to streamers we certainly, one have make, into a and about time we make millions films done is of that that making really make

to into I audiences bunch to format look brands. it's extend them familiar business a different that very expecting hot of whole a sponsorships natural we IP Hot strong product that think repeats, lines, integration ways can to when none and that one-off at has that from also and sauce, of are videos. we love It's integrate Ones, something are like selling but

that. So IP on, that to you great area and where viewership a think repeat like have I is focus strong

engage us with brands the just well. and partner really food with Tasty, Tasty and seen excited creators to is creators plus and incredibly we've about powerful, creators to be brand For as so it's

itself way video is on a better how sustainable is that really profitable we one-off can make So branded the that higher looking margin do to at in than videos. we're scale and revenue and that lends something focused

the not feast, done context fit like away focused integration terms with that's divestiture series custom-branded work us kind high-cost, and with coming some we the move that that culture all cases of more really scalable, well be and think Ones, more A of type pop lower-margin, that Tasty of have wanted with much that I branded in building of Complex type BuzzFeed. Buzzfeed, transacted unique novo audiences, a that. where for something. First where integration lot concepts content. Hot in of for I in some culture one-off pop of helps different pretty is they're starting reach which can Complex limited videos and are brand And great Tasty, totally of think and huge of way the agency you'd We from from you're X that also brands from be some up things doing sort or de brands Feast

So I we're being overall, picking think, We're spots. our smarter.

lift entertainment and are make doesn't us clients. working we're this way video strategically less of of get decisions viewership clients value the and made who with in for us our business to and us heavy We helps creating formats the platform. on is as really work align great much the other [indiscernible] and also with IP video that and really is And great a that type that dependent with require deliver clients, can clients in retail and a that also beneficial partners our to

focusing to that high-cost -- IP maximize to ways area scalability our a of And of of a the So It it. the we're videos the bit our middle creators area is that's to studio about stay of more integrate on how and that to business trying our way kind is thinking seamless. all that's are we're brands business one-off and the more in opportunity that out in nuanced.

Amita Tomkoria

or discuss about X getting Maybe you guys opportunities areas? And from rollout of and you in cookie impact front those around might maybe you of Can Google's and to of those streams. deprecation of maybe the advertising business made are of each business sort continuing sort affiliate references where on see programmatic of that, your you, a are guys related how in also you and how that specific on how note, you that? that thinking refocusing commerce and your then some revenue both several

Jonah Peretti

affiliates very Yes. a our businesses. At abstract our action businesses And think level, audience I to those to and I they AI from get are able tech of mean, that's read earlier, to transact. scalable, us and which investment. and very programmatic we to from with is generates love businesses transactions, understand I inspire active, being And means because to driving as I said leverage lot add taking content, revenue high-margin to very going that just audience action. are our able from a people allow affiliate

look And taking $X.X first, in million or of that taking us. business the results the affiliate for in we partners. so behalf you commerce programmatic drive And transactions in -- retail billion than if more about our on $XX revenues just

for us. is business it GMV So you driving tech benefit and see does And something can great our It's that will from for significant it's partners. our benefit investments. also a

things be a little of the job like being really great the that, and more and editorial nuts guides tech like Some able and products featuring and and things and bolts, work. gift our to a collections great formats post do those and might prices

learning, And starting the machine content bonus that ability that to and feature and for a of remix be that someone, things might could recommendations and imagine it some and far we're is product that. other extend personalized a deeper beyond with for just now Gen to selection AI, them,

to the is If leverage or programmatic similar. trends allow margin in like audience's tech now And in affiliate businesses X Classically, that So technology transactions, drive tech-enabled, And more is investment from our to from attention. spent that highest advertising is benefit and more year about attention. -- will that benefit also now, have those most we time we the way selling businesses paid AI, really years from a like and are selling is programmatic of to anyone is from competitive set. months get more most be about even new now. Programmatic from about scalable, attention. X our than getting transactions

on that attention lot earlier alignment but enhanced a have we and placed programmatic -- I expect, advancement time more continue we will through and content our than drive for the more can contextual more more be site forms be content like advertisements, by understand we and scale, kind more us that and spent particularly people more interactive. opportunity we more hand site, advertising spending. our monetization actually we've audience programmatic also conversions there where more because things as other to think, around drives when and be select how help site. so can massive spending even that to will that. Overall, have with programmatic. And of I how in that live, we do time on a it's can contextual will of people And AI AI to at we that are machines should that push envelope more and almost on content monetize mentioned get attention alignment time So AI that's data, of that of personalized, can something data that to spend work, maximize seen And time the monetize the

advertising to cookies so of And in build the there, Apple been stage as the form seen, and very on technologies has and targeting commerce alignment the get stage that some business although sort next excitement cookies targeting very lot older earlier retargeting stage kind and there's to of an retailer of of scalable to have go. And lot more Internet and that using interesting, of -- has as differently really how of start stage, the already I effective that ad the of more evolve sophisticated the as, on based forms going retargeting you about to the that harder targeting of for with And you're to basic next as and was be that. kind a the a harder is based visit ability for start -- you are dumb, replace the think within on the represent and focusing changed And of But new Internet. contextual Internet cookies follows going where of apps, a are site AI, do think -- adapt I then the able strong, been of than technologies. that everywhere already companies that that web the of perform product around can sort targeting a pre-AI to you have well seeing for depreciated.

Amita Tomkoria

reports about sort to it BuzzFeed deal know deal the nature bit, and of of it? licensing seen the us? we material? that a around Just switch a should just little maybe what you for potential discuss that Is Matt, So of some press recap in U.K. gears for we've the Could

Matt Omer

yet. hasn't deal closed sure. yes, Yes, The

to final briefly, and between of we're we'll, go-forward essentially [ an the move Seasoned the soon generation and of ] U.K., share we're own U.K. agreement employees revenue the Digital, as the a IP, course, independent announced would independent and continue Tasty with brands. This So our Morgan but BuzzFeed support do HuffPost stages so. in BuzzFeed revenues. in to business more to as able would to U.K., to the U.K. the But license earn similar the so very is last over share Australia which our partnership strategic of that we June Val we

across behind independent and the and products license, editorial the put wider of bundling. a sales under would and brands, So resources offer its our mix media proposed

again, share expected materiality, of impact on as our more can it terms we yet, In to hasn't business. as the so soon we'll closed

Amita Tomkoria

TikTok, the then, bus with for it. back role the and platforms, does obviously, topic that And owned you future? mean feed? moving? in And view Jonah, you Like TikTok your of Got social BuzzFeed's with focus platforms like just ban the on to of do potential broadly, renewed just the how maybe what on operated more a

Jonah Peretti

Yes.

in other been audience much massive don't have time like much. among So TikTok of not is get ] worst to terms monetization. of the send but traffic We they much occasionally, spent. type terms stuff, TikTok, And properties. They bio from Lincoln obviously, some in out [ don't

on that build tremendous platform our to achieved but scale and So types monetization on own doesn't by TikTok, depend of doing we've revenue TikTok. from branded had we've other monetization content

be, TikTok banned, these the preference or Instagram, on I would of platforms. is And other TikTok look spent would -- time if will at probably would a platforms. our our that to when Snap, the say market, to benefit Facebook, So other move I start lot

that to -- we those they ability, will will better with hope I our in is monetized partners. think get actually And begin so to continues, parity to continue the maturation social us. of closer I to a platforms for their banned, of ad be then platforms partnership terms could isn't revenue products they and that other other some and think, And and are if TikTok benefit of

are say how and result, where state current the not the would social So be as fierce platforms. kind battle I outcomes the these ongoing between best partners those either ecosystem. okay. a to much of this affairs as larger to of they've on there's focusing between And good is just of stopped

audience that's many the an not right of strength platforms. And of of much continued the I companies. our role clicking the able of as platform time achieves and personal big where on valuable And on recent guess broadly feels possible making away that the time. more as make are to a history being content aggregate decisions than So the app, that is from, and kind platforms, in in who us, it seen and possible, front. position with publishers all clicking creators tech and strong very to be But in on and is them us. strength has been of any an that of decline interest we're we content spending platforms see a in traffic as main to types to don't for favorable, strong outbound been they're a to the kinds and ecosystem with not money different great then the a The friendly enough really audience article spend of to any is and that they're position different the even operated for and content and for love. And place partner BuzzFeed, me, security spending Facebook as their just terms have and sure say, that we've want as people creators as the has lot we with that thing. And content that to have people much direct dependent there's of owned sort more seen in in that

an get couldn't business And and operated or gives were explosion and top to leverage in technology tech will and possible as owned build and we truth then business so and our much else's the that benefit someone to AI operated so importantly, owned we to [ amazing revolutions new time evolve continually in content, more change core way us our with audience us riding and delight just ] creativity probably on and if and we have like that us really can spends ability spread an develop as products owned most and technology allow of from platform. improve have at to we also the ability Gen having create a having the of joy operated want the that we that as and content them. And

Amita Tomkoria

balance a a questions How of Matt, for the you talked we address sheet? Great. use time about balance debt what's about the amount on debt pivoting the Complex. to of a to remaining plans We've and significant couple got still sort here. of more proceeds should company's just it following the piece sheet, of think

Matt Omer

really Complex Yes. sale debt enables said, earlier. touched to our of interest obligations. and on already The you outstanding Like I us reduce meaningfully

million note. paid convertible So facility, $XX of also approximately the about and was credit again, down eliminated revolving our we that XX%

the So outstanding. $XXX roughly of million $XX million that was

have the to option relates do in call balance lenders the December the debt an unsecured of the it year. convertible this As note, to

to be with However, we them work the of that expect of date option. the advance in we'll able call

towards proceeds the and obviously build -- stronger to debt the have said, optimize proceeds, restructuring [ look cash could as they changes fund you of which or direct occur, they of from we structure so future claim roughly sales cost when at transaction the sheet further ] from million becoming high-margin to a agreement, to to we so and capital. That fact, million But In of steps broadly, much any discuss underlying agreed business they asset and take reduce the affiliate the our in more asset the sales, have XX% paydown balance the proceeds the Complex better to significantly meaningful businesses working us the programmatic a such more load. $XX reduce positioned $XX would positive. to do prioritize that and part to -- if cash have made XXXX

Amita Tomkoria

team. for question the final a just of in you terms Jonah, And executive

kind months, how have including departures of about some Over thinking have executive and do team? are rehire the President, you you been the to past plans few or there your

Jonah Peretti

Yes. the for Thanks question.

to Probus, our that to knowledge, elevating of experience really thrilled I'm our Ken go-forward confident across perspective Inc. our are a for role So in and new all I'm ], team, Officer with joins we Matt Blum CFO, he our Jeff new Business share and leader leadership the tremendous Omer and Chief BuzzFeed, publisher also and brands, [

are all leaned we a and company. for team, the very in So great we stage got of next this building

Amita Tomkoria

you, we for us. our Q&A the hand you, much. so can back joining to wraps I will over Thank everyone, Jonah. you today. call operator for wrap session Matt. our That so Thank Fantastic. Thank Thanks, up.

Operator

Ladies and Thank concludes call. participating. conference this gentlemen, you you. today's Thank for

disconnect. You may now

BuzzFeed (BZFD) 25 Mar 242023 Q4 Earnings call transcript