BZFD - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by. Welcome to the BuzzFeed Inc.

First Quarter 2024 Earnings Conference Call. [Operator Instructions]. I would now like to hand the conference over to your speaker today, Amita Tomkoria, Head of Investor Relations.

Amita Tomkoria

to welcome and everyone, BuzzFeed Inc. Hello,

XXXX Vice President Quarter Earnings Conference Senior Tomkoria, Amita I'm of Call. First Investor Relations.

Joining Jonah me Peretti; and CFO, CEO, today Matt are Omer.

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

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

Jonah Peretti

afternoon, today. us Good thank you everyone, Amita. you, Thank and for joining

more vastly media Fair Vogue, other known leading and be like time digital player according widely in properties BuzzFeed and Vanity with flagship the ComScore. brand continues People, to legacy spent to Our digital than Bustle, Box,

in era. I As to outlined AI and defining for letter company extend the position BuzzFeed media annual build is my into last the to AI this month leaning leadership shareholders,

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that We starting impact are the to of shift. now see

directly properties. directly Our of XX% In grew properties starting to Even audience traffic. the time reliant QX, to and of that and our apps. loyal was a are massive Today, audience, levers Facebook, web were of and focused into our pulling deepening app most loyal of of on casual and with focusing third-party which X% owned we In Instead This turning versus success. our also casual QX. referrals A grow. who scaling means about to more BuzzFeed we engagement that think on page audience was direct us traffic business that visit users. across view spent from direct our spend referred likely our we how change on come our are right they to on users where and traffic content a when evolved have and now on largest from than actions source having page operated promising, and a view user to are single and take we several Facebook games casual for return. less a users more and social one X value user minutes, of QX, sites majority are article chatbots an our loyal operated they from the see interactive owned kinds shift from was more has to single traffic formats users platforms like audience

and our with making on resonates experience, discovering work AI on in these our audience focus personalized, signals. are, we differentiated platform we what As interactive, our turn, based

as we into early -- adopt new to benefit and months time, also image trends. per into design our to help increasing and which traffic design assistant everyone among most direct filters are loyal games work plushie, to expect able users AI lovable Your can Nepogotchi have the to buzzfeed.com, gift their also the of generators shoppers engagement a of audience poet's find utility months, loyal of resembles that on out Make turn we since to clear like accelerant, GenAI, all Under record pet, a are -- a to we've engaged seen plugged which toy song from and top potential have Because to web experiences invest technology's few only generator, rolled turning like is into features this engagement new past generators audience, This casual and more development. which as your act so Influencer, and an direct levels formats, where are to post Own so users AI grow driven the XX for we the our trending like bots growing plushie some turns Shopee, of Shrek-generator, the which we've celeb Chatbot the encouraging without their Not grow pet BuzzFeed like content favorite like the because we can a the Swift department be deeper ones, Taylor several number loyalty having in been with AI their list. Over Emoji, consecutive traffic of skyrocketed visitor and perfect X ogre. engagement. for most models December. existing your pages into

continue introduce expect experiences, teams As time spent update we and user. fun many we hard at and content and initiatives to are formats users. content our drive and rewarding, per loyalty more to the in for more our With new to make apps engagement, improvement pipeline, engaging in work sites and AI-powered

as began novel work we and homepage engage expect the we our in. unveil in of more In right And out fact, a content to weeks momentum build on months. our coming week, just design interact ways built to last new rolling BuzzFeed with and with we this

to positive tech year-over-year As we side. our lean on we continue third O&O, the apps also programmatic of websites seeing consecutive audience into QX, In and and advertising on revenue HuffPost across grew the quarter. are trends revenues the for the and existing power BuzzFeed infrastructure

pressure platforms, While sales we on encouraged revenue reflects highest performance channel are our direct our positive overall largest monetization by on and trend on ongoing our this margin third-party stream. and lower revenue

see transform from business of have Our experience. Commerce we which another And strong is GenAI tremendous for this to to the foundation potential shopping transformation. we the drive a application area where

And this inspires product, proven our fill an units, advertisers media and and narrowly retail inventory. nearly budgets. published that million our our for the also affiliate ad Target. of But of in shopping destination advertising our shopping networks tapping behalf retail generated XX% campaigns. heard consumers content network other representing Amazon, inventory with trusted partnerships fill that revenue. with to commerce addressable a by affiliate business beyond retail million of specific partnerships we partners wide growing focus transactions $XX into with destination Walmart, of Retailers retailers in encompassing our and XXXX, that products, buys with new retailer million resonates grows, I approximately for ad on world, ad In record products content track previously BuzzFeed because and in retailers revenues than a largest a XXXX meaningful a audience and models are affiliate XXXX, create and introduces on strategic content look as our and driving relationships simply, total extends and drove media business we to $XX retailers have on we for in natural to a for retailers approach, Very behalf have model, With a branded as love retailer relationships, than revenue already range are to compared organic brought partner we $XXX off-site BuzzFeed are of We Increasingly, the recommendations for We retailers including more growing is and we retailers. far established GMV discovery-based. us. of as looking transactions. are to revenue including because programmatic in our partner. is more this

infuse ahead, us believe with curation as next personalized our shopping to take initiatives can other to and recommended help product like Looking audience, experience and dynamic models our expand launch our we develop AI the we approach of AI, retailers. insertion commerce us products a with introduce level for help more relationship

the Before I this build reiterate pass only AI the journey start to the media want to the call that defining era. of for to we company are Matt, at I

and on doing I revenue into our we to our bringing more you the as continue bring experiences of forward, web so, some with and what apps our possible for we ways is this with in help industry. websites to of And on work shared trends of reimagining BuzzFeed the new expect Moving positive boundaries the Stay in push of are app and and build audience to life tuned audience. in focused AI. we together

financial Now the to I'll our off Matt to and performance call outlook. hand discuss

Matt Omer

some momentum quarter you, already We in closed Jonah of the with our which Thank Jonah. business, on. touched first great

recap a financial discuss from and We business. revenue detail, revenue. our outlook, QX in year-over-year improvement million QX despite me adjusted EBITDA million $XX let year-over-year line performance our March across adjusted decline $X I delivered with highlights some EBITDA more in a generating in the Before in

and in in beginning Facebook-dependent from buzzfeed.com traffic was one the obligations we Last by QX, business to cash. the of program $XX revenues restricted to to and drives transition in positive announced property, month, savings. signal and complete resulting cost modest operated we a advertising the interest quarter. our annualized of increased driven approximately February, This down cash We balance Complex, including is expense closed which the a across traffic we $XX that to February. consecutive as completed year-over-year sale significant websites million, by our stabilize HuffPost platforms. own grew compensation to third the outstanding Programmatic million that expected are from apps flagship proceeds restructuring growth and paid being up approximately quarter-over-quarter $XX direct million X% lower we yield traffic, versus a go-forward Our from which in saw trends directly BuzzFeed in debt, portion our

we result, a navigate digital to and As publishers profitably. ongoing at are the headwinds well large facing positioned sustainably media and

our on results. Moving first to quarter

our revenues and pressure Advertising presented properties Overall, operated by a by million, on quarter, with traffic As follows: modestly year-over-year basis, monetization line By BuzzFeed audience in a U.S. here primarily by sales comparables million and our third-party $XX.X to direct advertising by XX% revenues programmatic revenues declined reminder, was spent part our consecutive revenues, on third the are report ongoing and financials Complex. continue by as XX reported across increasing spent declined Advertising driven platforms. platforms. outlook. owned all ComScore. content declined XXXX as for properties, year-over-year. according grew hours, with revenue year-over-year X% In HuffPost, with across U.S. in owned $XX.X lower ongoing QX, QX conjunction we declines excludes advertising to In large and to continuing time line which referral XX% comScore the our on contrast, third-party XX% driven operations driven to Performance across our are March platforms million, year-over-year largest to operated third-party time time and from revenues spent platforms. for and in channel

to revenues we compared X% This ago to Deposit year-over-year. operations. X% grew we promotional lower ago note of or driven Commerce million -- year share revenues to $XX.X see quarter. content year-over-year to quarter discontinued to important as line positive adjusted also as $X audience discussed, and It declined of comparable trends less primarily GAAP, EBITDA $XX.X campaigns other was traffic, that the retailers by XX% have any nonrecurring $XX.X year $X.X custom with or U.S. However, the per the year-over-year losses due and million, first generated Jonah sorry, quarter. with declined traffic million direct current by spend continue million our revenue was outlook. expenses not is in which that no the March quarter quarter-over-quarter. in We primarily allocated in of delivered to million, in

of result, cash and paying working recent funding restricted EBITDA were of capital. the our down cash, a a of corporate quarter As was Complex, increase significant. approximately a includes our $XX after the ended and $XX adjusted our We debt first quarter sale versus in fourth significant partially as February. improving with shared of Complex expenses, million portion the proceeds This driven cash by approximately the quarter of from first including portion million, equivalents, restructuring which which net closed again a

revenues, on programmatic QX closure return in second as programmatic let expect lap News, the in advertising we me QX. Before little instant outlook modest articles, year-over-year the Starting growth traffic Building of with deprecation context. we direct a overall to provide I our and revenues. Facebook momentum revenue BuzzFeed the of share quarter, to financial for

However, the direct impact platform pressure we monetization ongoing year-over-year to third-party do sales growth expect in and revenues. continue overall on channel to lower

are expected financial I be that outlook. anticipating on year-over-year comparables pressures we a to fully are QX cost-savings reminder, and $XX a our basis. all in QX. compensation cost-savings. to reflects restructuring the program from presented is figures And savings outlook fully that, to In With program expected These adjusted EBITDA, are as operations of approximately will Again, annualized revenue announced terms continuing offset turn our executed drive in million February. our for

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

are We stronger driving adjusted and profits, on $X positive growth. back towards focus owned midpoint. the call million so in continuing across hand million programmatic to we sheet meaningful approximately Thank Amita, to year-over-year questions. revenues make business you. operated in I'll at a EBITDA affiliate to our we balance and a base, expect the of range in the losses and leaner flat properties, With returning $X strides profitable cash to take can high-margin renewed cost the

Amita Tomkoria

during gathered that received bunch I've we've here questions of call. a the Thanks. offline

of spoke with Jonah, starting you So, into to commerce little a retail the about as right affiliate we'll some Retail it. bit the and get maybe Networks it you relates on Media your business, business leverage Media Retail for you opportunity partnerships growth. that to the to that some you first-party engaged continuing the and dollars? data show of with attract have audience strong have Networks What's BuzzFeed to these

Jonah Peretti

a networks Thanks, Amita. We space. a are of opportunity lot Yes, big see the us. in retail media opportunity that for

Just things, to a focus for a We on People our lot commerce earlier, as of BuzzFeed model come than back, useful bit to different and all really peers. a for discovery. take is step of entertainment, mentioned our kinds information. I product

They're And discovery, buy. being on there a to more for particular start fun. might It's sometimes buy they you come know product shopping shop but doing not the and they while they're to want they might much there, they content want Other because something about finding discovering want something new. to inspired existed, shop, buy times, they to things. research

interesting people driving in writers process, so, as have in finding that common new didn't finding something needed. that. amazing a suggested emotional that yourself, buying are of products, problem have solves that you that products responses something And bunch solve have have you for the Finding life, your a know you known problem the and to

shopping is our and All transactions what of that drives our business.

we people first-party a data see as to. able responding what capture lot rich of a so, we're to really are And result, because

categories. shoppers that For looking example, for on we particular are have data

they there major product off are very we partnerships retailers are transact reading? credit new people these already shoppers or and on other to -- of is the cards be file. places are and content. Target, because one that Z, people Gen retailers something We already kinds they amazing shopping what discovery Amazon, find And Are easy they the in of is these Are that are on more or millennials? others, in that have accustomed in where world, Are can places they have logged you on have where about when then parents? generational, data Walmart, largest with

that's through why revenue. approaching revenue million of $XX we in X/X XXXX, so, retail And generate and relationships to that's our were in able

And our things BuzzFeed partner on we us from their this that already expand that also, because so, they first-party and from have that great We well things grow to -- know about relationships data. can know the are positions continuing do I a these really they they know feeds. think us, desire We discovering retailers. extend And and shopping know these to customers like and retailers a for RMMs, with when have that their through lot both shoppers. advertising finding

our particularly and And differentiated so, they're their people the get really by able and with something through things -- are to where clicking networks across retail retail media extending help, new transacting. discovering inventory, and incrementality,

so, of going more partners very to opportunity, and those engaged we're in and big first-party deeper our integrating a deeply make retail with a on focus deeply is big that. And it's area data and connections

Amita Tomkoria

you. time? to you seeing you of over Thank talk maybe traffic the the Matt, to us seeing a with next that about might O&O, potential you're respect you ComScore return and also that driving O&O trends turning of some spent any you're to and that point can specifically what growth content shoots green initiatives toward time on because discussed are period

Matt Omer

Thanks question. for Yes. the Yes.

BuzzFeed to think, spent be referral I pressured lower time continues the by unfortunately, overall traffic.

shoots However, to direct we seeing our audience. respect green are with

a the Example, us BuzzFeed, X% also web of app engagement web this audience grown seeing number has deeper help just traffic loyalty build audience. spent. pipeline months in content We're since loyal really quarter-over-quarter. consecutive the our visitor example, grew focus with and our for in per drive most time direct on QX looking on And So, among new to and momentum X paid for December. to

Amita Tomkoria

Jonah. to And maybe back you,

sale Complex, brand additional about of both role this you stage? and guys, how asset as brand today? and now the maybe of you think thinking do can portfolio Are the stands it in You of the sort sales? referenced about just portfolio the Matt about you talk that's each behind that you Or at

Jonah Peretti

Sure.

order each in we built have interest we brands. and our exciting to with reputation amazing audiences to benefit our to put advertisers. position work of assets, business excited our the strongest brands So, continue in of inbound and be in strong around in in about. that see content opportunistic doing both it's we'll next It speaks really the to continue the marketplace, interactive we've and the we're are generation And more very that we to from this AI

and of affiliate lines, HuffPost grow bit has programmatic strength BuzzFeed on I those think an when have see at revenue you brands which have affiliate look we lot HuffPost core, audiences a really audience dynamics and that's drive HuffPost. and affiliate business more newer programmatic revenues. -- really audience, both We're programmatic to as helped large to and the although are really a great properties. both seeing commerce, and of And affluent, in that is across the the engaged and

drive think and the revenue we and are really helping really so, BuzzFeed affiliate that. And lines, HuffPost core programming

to poised in We brands from also think our are work AI. these benefit

excited we're to see so, leverage And those businesses. additional to added

power of for back the allow each very potential. provide of the just GMs which able each to company operate evaluate to to is achieve to in services a try And way. is their having the and then work then cost-effective hands our value -- previously, to brand very can sure a the foster from advisers entrepreneurially way that to thing more but really talked lightweight sheet drive balance our that very and destiny smartest assets, bringing that brands part way, that is about to employees putting of own full deliberate in deals make and to in control support to managers with and our Another it's centralized think make I We their and and to collaboration I important, forward. that optimize be office moving brand continue and

Amita Tomkoria

EBITDA And lean you've translate revenue some into seen you that an maybe longer-term? the then And guys just perspective monetization, overall programmatic, terms how in to as expect you and far? you of the speak to cash perspective benefits that an of materialize can over so from

Matt Omer

or O&O Yes, of revenue thing quarter noted take third HuffPost. this properties, consecutive our I our can that. was largest One growth that noticed across programmatic BuzzFeed I and

articles lap So, of it's note important closure as BuzzFeed the News. incident to Facebook and we the deprecation of

this programmatic overall highest advertising highest return We QX. stream. remind it's our to mean, revenue -- largest and and to the advertising year-over-year is I good expect modest revenues growth that programmatic in largest margin

we you're scale trends approaching the to that of the this revenue savings, restructure well. seeing And in guide the so, to business despite do pressures some growth, the we're the revenue, QX we EBITDA drive breakeven pressure seeing. as other return QX to continue expect business. revenue the fully parts that And in improved of are offsetting as from again,

Amita Tomkoria

can And or just about the of of restructuring, talk you're of cash how of kind looking expansion thinking course you're like you on drive speaking to the and balance the over from follow to the how year? that, generation about margin maybe

Matt Omer

that's cash our compensation-related to programmatic savings, expenses we as result a important as strategy in for the which cash generation more creation going we a higher be I greater margin editorial fixed approximately our higher-margin the to and our nature. our related annualized revenues. program, continue will on percentage to experience affiliate is seasonal our and in our I to of our lift of revenues, expansion a content, to reduction in are costs $XX are with This driven on consideration Yes. as cost million earlier, meaningful focus touched -- And a another mean, restructuring reminder, as structure.

Amita Tomkoria

the cookies of kind and that that? Has topic, this, the with by changed conversations Google from any And just question you might perspective on of line your advertisers, the deprecation final pressure Can now give the around time industry shifting as otherwise loss risk having time pressure guys the our Does on delay prepare. reduce Jonah, you that. the are signal more us your perspective, maybe has CPM? that to obviously and

Jonah Peretti

Sure. other their have rolled the ready and short-term changes of then out period more It's impact everyone for update strategies, biggest time, And with quickly that's with that change felt we've to The nice adjustment. for achieve bit like seen seeing change will and be we using once for although this, approaches a it's to takes previously. this par change. it you other you can on what were where revenue the

I think we feel very good about our be the way on to we really focus ad have able to -- particularly owned provide with this excellent first-party data properties operated targeting. and

the or of have partner travel who target are One brands people like certain passions or who they brand-safe that things, demographics, share that environment to do They to better we is ability a key reliably that, a reasons also interests, so a they trusted could for within buy parents content. shopping, we who pulse. access we of have they audience are people BuzzFeed has and And people the or with or have content, all that comment, word, of lack audience engage. an

take And share products. product audiences a really theirs their might having so, action, or of talk someone really I for valuable and is interested that be buy anyone product a having who think, in or proactive about are

downside the plays weeds, cookie bit depreciation. first-party any all our risk to used of strength. a do So, more little potential many help initiatives And from that mitigate to that in we data have really our be

log-in users sales the see XX% seen CPMs testing, Desk a has user they're LiveRamp with UID is of Trade increase in has when Universal contextual efforts around authenticated. ID partners that we've our X% a logged-in Sales So positioning. outreach user partnered with to increase authenticated. and

side. on other We have sales things some the

contextual using Our road to understand map audiences ad even product and LLMs product LLMs, better. contextual and enhancements includes positioning,

sense. think these read able increasingly pretty with to able or suggest -- new. and be most to AI, all an do of contextual that advances our in and that's to multimodal the to particularly content, I then be all ad possible actually make placements placements when ad would for And what it's AI

you who the so could of done era to back kind are people you to for hiking, running, magazines into just contextual up If environments and of people these work to was and think that in all early people all magazines of create of are sort spin launching who the advertising. where were niche that that to in advertise publications the fishing, are

do can that dynamic AI-powered you automated in a Now way.

lot the offset of of advancements the going think the I so, space cookie in are more impacts that depreciation. or offset to than a And some of

Amita Tomkoria

Great. Thank you. you. That for to Matt. hand Thanks, Q&A you Operator, over it wraps Thanks, us our thank Jonah. today. And joining session call for today. the all on I'll live

Operator

participation. concludes for This the you. you Thank conference. Thank your

You may now disconnect.

BuzzFeed (BZFD) 13 May 242024 Q1 Earnings call transcript