BZFD - Earnings call transcript Q2 2024

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Operator

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

Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Amita Tomkoria, Senior Vice President of Investor Relations. ahead. go Please

Amita Tomkoria

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

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

annual I would that these statements. results Factors today's these differ XX-Q you today may Form report Before we the materially remarks get like take those to materially quarterly our XXXX statements. are XX-Q release, to with quarterly and Form this forward-looking be Form to include XXXX cause on in our on forward-looking from press XXXX that results to forth will QX differ could remind QX report opportunity Actual by XX-K, started, contemplated on SEC. filed our set report our

on new that these call events. or as no statements on assumptions we make of today, update obligation to forward-looking result based information we of a are and undertake future as this statements Any

and and goals this non-GAAP financial us During both operational operational including to establish of of business our budgets measure develop EBITDA strength measures business. to The adjusted adjusted to and non-GAAP allows our the managing call, use measures, financial performance margin. and for we present GAAP EBITDA

used press today's our to believe reconciliation method Please information non-GAAP find of by We relevant similar in our with release is performance view to earnings press along Investor release. A our these and they margin allow to to Relations the today's GAAP refer included and EBITDA Letter. Investor website measures management. for are EBITDA adjusted adjusted useful investors because manner investors in to a

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

Jonah Peretti

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

a the context. want to get bit specifics I quarter, about the into of I Before provide

despite is short-term to calls, we intact, As I've approach savings. and tough This of to those our our a take managing costs market provide we've shed competitors on product many kept world-class teams business. team a where our our tech why long-term mentioned past

We technology era continuously to experimenting and technology, of lived have with transform the are that next the and a technologies industry. of We've intersection innovating increasingly new up always us media content to in the beginning we're the and sets Internet. strong leaning into conviction that thrive at

These we drive I'm to and see metrics innovation. improvements experimentation to key that particular, share on interactive in formats, business personalization of profitability. are scalable generative most the improvements lines audience inventory, in beginning are and our pleased conversion improved content, more in and growth our fruits growth AI to business. starting better and of more our include user loyalty, targeting enhanced across In content our higher log-ins, advertising commerce our revenue

in also directly creators we that of content will By enable into participate more have more invited development, new fun our creation. AI-assisted consumer-facing product of forward. and to hard moving already We've accelerated us audience the content work new leaning done much to made efficient pace of do technologies, creative, and the our the work

audiences. in forms range of data personalize vector fine-tuning the for with AI copilots, capacities model content of AI our capabilities, of represent embedding remix, built and power internal our as building the tools, development well right generate AI-assisted new consumer-facing of content we in Since to content as and with leveraging now like that generators. techniques a stores foundational the our year, experiences start blocks have to the conjunction By media we've place our like help recommend,

on future track with all allowed have even be you to very monetization. calls, the Our built QX results deploying things and distribution share audience to complete our websites content of also changes tools excited And drive model engagement apps. we've you regard, the earnings on demonstrate were launch to platform-dependent the our We'll excited business progress our more with operated and owned focused from years. generally. so the many far able we'll and teams new so our QX, of and about teams we've can the in more away shift capabilities are made us stabilizing coming the more In about on along deeper and progress. These that our months in

media external our model with to we traffic set is in referral contrast compared sources. our And highly audience this with our in period, grow strength other peers and the As on QX, QX X% only competitive believe Comscore. highlights time as the according to differentiated spent grew content business over to of among whose dependent search digital this company

core our among by spent Z XX% Gen time versus grew QX. also demographic, Millennials And We

business, basis, improvement of And grew EBITDA, terms delivering profit Commerce. two and revenues margin in our we million In Programmatic revenue, we of highest Advertising million year-over-year. in lines May Affiliate our outlook, adjusted on QX $X exceeded for year-over-year and $X.X of QX a largest a

With our control our be the long-term are monetization. was owned personalization and of apps. personalizing in enhancing -- audience In largest our own with our audience and of vast on spent QX, And, source direct majority traffic, experience of positioned properties, well far including to audience and third-party XX% audience referrals destiny driving own websites traffic time from on Facebook. surpassing content of platforms, the engagement continues to and we happening terms our enhancing operated

properties, QX and BuzzFeed operated Direct to HuffPost. across stability X traffic our in largest continued owned and show

saw loyalty More of better evidence risk importantly, depreciation. cookie potential our deepening QX, among versus audience. Log-in users to us of strong mitigate we positioning grew

grown a XXXX. we number more interactive number double-digit us week a the seen or users content, have As the of we introduce has since than visit that loyal users QX that by of also percentage more once

consecutive our of the our visitor strong Loyalty grew Page the also momentum on for game and a quarter. quarter-over-quarter the of to repeat in terms week. users views visits we be app third site. per returning suite are Games particularly vast continues BuzzFeed QX seeing unique majority on of within And across

and AI in deeper. the of audience hands Generator, Your Favorite audience Your participation creativity AI-powered have Turn One engagement when Celeb Into Make generators or other content is engagement relative Own is Emoji Sims of biggest it's to formats. in learnings that demonstrated Shrek, our our QX our our was higher Whether

We've the in June, on easier to for engagement to audience audience to more also opportunities themselves new and make homepage for launched quizzes the the about widgets polls other. it learn offering from page, that directly BuzzFeed each more

new revenue Although we view. have and in it double-digit engagement following is per more a actions visit and still early, home seen site the increases increase page launch, audience programmatic per percentage in monetization measurable with

hybrid to BuzzFeed features on app a the leaderboard future learnings social builds ahead, trends newly monetization future on of and app landing with new and a be see building a these our media. a between the platform that of homepage. our interactive from where with designed We mix BuzzFeed we Looking all social that excited a provides content Games, content expect a engagement destination. features, and publisher aligns to build excited I'm page creating web build that games a a of media a and -- feature to trusted I'm digital

properties. our revenues revenue growth our stabilize And by we and XXXX, also X% changes to programmatic impact that QX that on our on importantly, we declines our organizational operated offset strategic performance. the to are us have and year-over-year first share and focus helping made overall is in pleased to these business I'm year-over-year. since the QX our third-party of Turning of a beginning pay grew owned changes validating signal to are This off. quarter programmatic advertising platforms

programmatic in overall which seeing progress overall to represents are pressured our sales are headwinds we be revenue. optimistic side, continues Although the channel, the on performance revenue by X/X the we our approximately of direct about advertising

transformation, continue further most and year-over-year into lines company-wide strength of to improvements high-margin adjusted scalable this our we our as high-margin in part to continue in our drives larger we revenue expect prioritize lines, revenue EBITDA. As momentum QX,

business year-over-year. a revenues also strong QX, commerce affiliate by growing Our had X%

With As in of retail I our an of calls, our retailers transactions largest drive like of product the editorial on shopping past partnerships part in beyond we millions extend in world. roundups, business. hundreds are content. partnerships behalf of coverage editorially-driven important But dollars the far commerce retail discussed our

example great we our relationship how of to results. diverse put actionable Our product is drive to catalog Target with work a

brand business, takeovers, its through our gifting leverages They that content to their gift revenue for more for sponsored Target like BuzzFeed. ads And on-site supplier-funded estate AI or recently, season to holiday the shopping moments readers season. the Target big their media list. AI-powered we advertising branded with to promote us Roundel, spotlight shopping find like on homepage general Target drives this secure purchased introduced and Shoppy, high-quality on as Circle which retail also perfect real helped our everyone Week partnered campaigns past holiday our tentpole assistant

biggest we're its on team expertise of the by back in value serving overall Prime even results Off Prime revenues retail double-digit Prime company. of for Amazon's Day surpassing add am world's growing and the yet, able the continue QX. ever, strong the expertise the Day the also to and in X-day growth contributed behalf proud to percentage BuzzFeed had dedication Our shine Amazon's largest year-over-year Day period deliver a retailers. such over whose impressive so partners largest I to of demonstrating of

more quarter, Programmatic As investor revenue available you performance. make lines, our a will to I revenue website on shortly. our QX in introducing also and more growing look revenue for we flip Affiliate we letter this our reporting. progress share into through this Matt transparency on our continue IR to encourage closer at are

Although the we of this period the we want legacy progress better in next digital the media in and face business to industry challenges, a a future redefining are charting stabilizing technology. I time. relatively for to short path to continues made of a have emphasize era

leading growth; of to Since our content; largest experience; year, lines launch to new new reduced we driven AI-powered from of our debt; structure; our profitability. improvements the margin the and cost in improved start highest content built AI-powered and year-over-year of revenue tons reduced the have the homepage our formats position; two returned for to have: cash accelerated of games platform

next I'm continue grateful to build as the alongside showcase and team dedicated media BuzzFeed era. for AI to to work excited what's for the a talented and company defining we such

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

Matt Omer

SPXXXXXXXXX Thank Jonah. you,

As with Jonah on, momentum. great just quarter the touched second closed we

I across discuss Before in from the some our I'll performance more business. financial highlights recap detail, QX

versus we quarter-over-quarter, of spent, digital time X% the QX set time were competitive grow according to Comscore. our spent up to company terms only in audience In media

time Gen And spent grew and QX. importantly, Z our core demographic, versus among by XX% we Millennials

and Prime in our two with outlook EBITDA Commerce. delivered largest We May our outlook Advertising lines of our in Affiliate has generating double-digit ever, exceeded year-over-year year-over-year. Day of in Day biggest May and overall $X.X We growth. growth revenues generating profits, continued QX in audience and with Prime into highest QX Programmatic a margin million revenue overall commerce year-over-year line QX outpacing million traffic improvement for adjusted business, This $X revenue with and growth Amazon's our momentum both

to work areas we and to of Programmatic in business this As more available the Investor Investor of quarter's we revenue our revenue on Commerce. our Advertising year-over-year return growth, are you the find Letter, Relations will website, on performance. introducing details focus, Affiliate overall In performance our transparency

on With me share financial that, let more our results. second quarter some

This all operations reminder, revenues ongoing and a pressure lines. $XX.X offset basis, third-party to follows: direct and a QX year-over-year Programmatic a revenue high-margin Complex. which here excludes Advertising Advertising million, and our $XX.X XXXX continuing channel on properties in driven financials as As across platforms. by comparables our our XX% sales was line May our scalable, for most our outlook. by both strategy and to to growth declined presented million, with are prioritize our Performance operated owned declined in revenues revenue shift in year-over-year business, XX% line on Overall

Comscore, with QX. platforms referral the industry from Comscore. in report to time in to growing traffic by and spent, the X% advertising in by spent driven time On we spent reflect and time led ongoing conjunction mentioned in And I continue reported third-party part properties In U.S. QX trends year-over-year with audience to large time million hours. across Advertising overall we platforms. operated our across as third-party as earlier, QX are to our spent XX audience platforms. revenues content revenues, owned a time declined of spend terms year-over-year declines continue versus basis, according

we $XX.X made revenue our million, of ongoing to Content the in declined is campaigns of sales year-over-year branded doubled down XX% channel. lower-margin Advertising as scalable The on majority by margin, higher Affiliate lines content pressure revenue And direct driven up branded Commerce, like we clients. content vast less more business. on again, content emphasis revenues Programmatic for put our and have this

which performance partners. of across grew multiple by better other drove our Commerce and X% retail metrics, our of revenues higher affiliate year-over-year, shopping $XX.X from content driven million commissions

ahead $X delivered cost we quarter. more approximately adjusted $XX headwinds revenue our second of better ago cash And EBITDA reflects outlook cash which impact February, This the the We million, cumulative May equivalents year offset savings million, announced a of second than the our quarter. million and than $XX and of plan with $X.X increase of roughly quarter in of the million in the year-to-date. net ended quarter

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

As we QX. prioritize revenue line, growth expect Advertising continue Commerce Affiliate revenues scalable to more in again we our Programmatic in once year-over-year and

the the terms this seen to the typically U.S. of noting in an year-over-year versus a see quarter. In QX. revenues, we in in sold It's although Presidential of revenue also what in worth lift direct expect fourth we of majority occurs the improvement content do spend revenues we historically, have Election, that ahead trends saw

does political sales. lift any our such, QX As from guidance material not assume

From the into strong discussed, Prime And particularly we a with in adjusted EBITDA QX expect drive see back of terms off to momentum business have in year-over-year and Day. to adjusted to Affiliate and adjusted EBITDA, the EBITDA improvement from I perspective, continued as savings reflected commerce operating QX, trends improvement we in expected and leverage an our margin. cost cumulative to quarter-over-quarter revenue QX of

and turn operations I'll all comparables financial Again, figures to on continuing that, a With basis. outlook. our presented

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

have are see demonstrated refocus QX we results the driving to this continuing into Our that efforts and our business QX. financial real momentum results,

we business and returned return line the lean growth, two a drive revenue to we we an quarters. with As growth and stabilize and continue the strong most further and our And the top over additional opportunity margin structure cash to overall of sheet to see execute lines expansion scalable cost highest margin management. balance upcoming to

I'll call -- questions. call we take back I'll can you. hand Amita, Thank the so to

Amita Tomkoria

in in Great. bunch Thanks, Matt. call a We've questions gathered have that and advance. the of the of over course Hi, everyone. come

you, is So more you we'll get of launches with on into right upcoming Can a and bit the about topic it. how that share Jonah, the of mentioned. starting AI some AI you cost a helping And about? some launches AI these utilizes content to the out benefit content move talked way rolling some of forward? new of that of capabilities there's if you quantify the that

Jonah Peretti

Yes.

that saying and able last So there's upfront I'll that more done we've the platform accelerate a start in to work fair more just AI to products to by us to work enable years, our over of to and be content. a X.X really amount build launch

and very Celeb Dress So Generator about content. making It if example the thinking you an Bridgerton [ post. take the represents or Shrek really a like way ] of different

And come of and then or Someone pieces that a generator. content on content. generator will pieces to of article or single of audience a our use of create team will hundreds making create our thousands post of instead will

content model you piece to and your And basically a content a them machine generates audience output I with are of the the where ways editors writers that's increases allows making so shift and and audience creation. and that that one your consumed from mean, just lots participate that audience it in interactivity. is your of that one and content team making to the example the of the content the

AI operations. turn stories our trends and our ideas We're personalization writers surface and business We're our to more then detect also building site. We're tools into post. using driving can to that on streamline

all spent to fact we do. enabled But the of there's range a that investing really in things huge it a time is by have that the we're So of able wide building platform.

format, now, is additional is many generative more more things in of weeks interactive other content content. of can and as it launch more so personalized, instead taking the and easily to of And new past, the launch as but a interactive we quickly forms content

audience really a feel to it pointing between collaboration think AI, a for our it's future. that of starts is lot I and really the something to and team, But opportunities like exciting the our

Amita Tomkoria

election you, . to both maybe impact also And the revenue advertising the Thank approaches, as just and expectations on and touch the Matt, you. for just business? on, quickly for are what maybe traffic for then the Jonah,

Jonah Peretti

just quickly I mean to traffic. start with

to social many as find going we there's and across best the developments, I interest and an And HuffPost fragmented way BuzzFeed think more lot going culture. the related real, platforms, what's misinformation especially what's the is the And we're election, memes and to HuffPost an see already entertainment is tremendous really with in on seeing election great have a both of in are audience is HuffPost. there's but the on election. in stories place BuzzFeed place so strength is know this election latest of to the more of and go what's out what property, gotten social that on, HuffPost entertainment page platforms the for more and media spreading a front what's not. driving

terms run-up things. I spend, usually ad to in other rapidly that of the and think drive turnout, we the campaigns election spend registration ad in as come cycle see spend the to in really later

Matt Omer

to sold We would QX. expect that. direct the just . QX come I really in revenue echo as Yes. to opposed

Amita Tomkoria

shared The you what's significant that's QX. about Matt, pretty So a into maybe lift? step the a QX bit versus good guidance up segue a Can QX that you revenue driving that shows guide. in share

Matt Omer

Affiliate in on operated positive Programmatic down we Yes, and owned sure. double and I as trends properties. continue to both mean we the expect

are which And homepage we our I driving ever, revamped launches improvements new in certainly on. touched had heard engagement, you As Day Prime just translating into as audience the revenue. best is from the Jonah, Programmatic content plus deeper

it line began also seeing improvement the -- We're significant top soil sold in stabilization year-over-year in in and in a QX expect a for momentum versus QX double-digit what growth, So QX. saw in significant [indiscernible] in direct direct we in drives QX. content trend

that's of So step the part up.

costs of touched the actions that we following more in then our are cost-saving nature. last And quarter, fixed on just

in so revenue amplified we And stabilization, lift and our see highest going our of when the our we to improvement margin two lines improvement And reminder, we the of the million million business an as seasonal we're $X leverage, that's expect improvements midpoint of of certainly $X guidance, on into see we EBITDA to return particularly QX. of growth. a to and some operating and as adjusted based in showed in see QX

extremely down we're we and have that excited management focus our to momentum, we're head and focus a on team, some So as continue to to . going execution. continue keep

Amita Tomkoria

maybe over sheet. And jump balance the to then just to

becomes obviously have in Can still You around available the that? outstanding. about to guys the debt amount how thinking thinking share guys option you of particularly, that latest And impending your a believe. you are fair December, I lenders

Matt Omer

gave we see last some just starting pretty material improvements I one, on collaborative And in is that have and we I to they have coming Jonah we're our noteholders and demonstrated the laid we off transaction. previous this Yes. with in believe guess what by And complex have and -- out to executing the a strategy call us our we're earnings consent financials. as focused on when we question. provided fundamentals in the relationship the really --

capital say, XX-Q, the business. divestitures, the We strategic used any all company I of always we're our of health pay restructuring to discontinuing existing business of which down operations, proceeds ensure in or evaluating structures, the discussed As debt to the -- lines discontinuance, -- the of will we and our unprofitable should be long-term debt. of refinancing consider including our to is previously changes

the noting of been larger increase to we our It's that size also float, public able worth have ATM program million. $XXX the to

year, ground at executing the this overall, on we disposal focused plans head have forward. liquidity to on operating market for out the earlier laid and should So our to that we're support and as and it. keeping But move we'll additional the well our continue . circumstances again,

Amita Tomkoria

very That's helpful.

light headlines great. be remiss the around turning terms curious So BuzzFeed's share you, stock. some new if shareholders up ask in with shed . you that to there's can point And them not on back about engage you that of Jonah, really activist or I'd whether to of maybe, would that with this can any entering anything to the be us I'm

Jonah Peretti

Sure.

really So obviously, BuzzFeed brand very many that that is of unlock And lot working future means for a a potential. there's that I to to potential hard people. agree a BuzzFeed well-known lot and we're

on we of ahead a we activists, more always to future. much open about. In unlock shareholders to we're value at think age ways over the ideas, and able hearing new our getting the possibilities shareholders I media lot value with to to for the unlock the designing to creating us, engaging that next even working long-term might from can be But very hearing company there and something tremendous and to excited how ideas terms hearing very do our of for that as I'm beyond shareholders, possibly strategy are in AI few we're very as voices And of years is hard best possible. the

Amita Tomkoria

got of minutes We've couple a left.

out million cash company topic in of burned it forward? cash rate from I'd looks look the QX, burn like with that about expected going close Matt, like indicative So If you $XX QX your quarter-to-quarter. of cash. just to . on to the Is I

Matt Omer

that mean not a which, I QX of most expected the expected absolutely QX the to not We expenditures indicative material compensation go-forward of expenses Complex is are and QX, onetime we charges few cash from the announced in the severance in to in savings related the cost transaction burn and had February. run repeat actions rate. for the

in some to optimizing was that And None interest used due QX. had June. in going biannual are a working in we capital. we those noted, repeated the had complex lastly, proceeds our towards sale of previously we be as Secondly, payment

dramatically been if so would And cash remove we expenditures reduced. those have then burn the

as balance we're much about business. the pretty behind excited . our we cash forward. And charges us, expect in a going so at with where do stability large I'm more onetime

Amita Tomkoria

our Thank Q&A Jonah. concludes you. for That thanks, and today. session Thanks, Matt,

our I'll it to So to out operator hand close back the call.

Operator

conference Thank for you participating. concludes call. This today's

You may now disconnect.

BuzzFeed (BZFD) 12 Aug 242024 Q2 Earnings call transcript