BZFD 8-K
BuzzFeed, Inc. (BZFD)
8-K
2025-03-13
For: 2025-03-13
View Original
Added on
April 07, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): March 13, 2025
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||||||
(Address of registrant’s principal executive offices, and zip code)
(646 ) 397-2039
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company x
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On March 13, 2025, BuzzFeed, Inc. (the “Company”), issued a press release (the “Press Release”) announcing its financial results for the fourth quarter and full year ended December 31, 2024. The Company also announced that it would be holding a conference call on March 13, 2025 to discuss its financial results. A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information included under Item 2.02 of this Current Report on Form 8-K and the exhibits hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it been deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01 Regulation FD Disclosure.
On March 13, 2025, the Company posted supplemental investor materials on the Investors Relations section of its website, available at investors.buzzfeed.com. The Company announces material information to the public through filings with the Securities and Exchange Commission, the investor relations page on the Company’s website, press releases, public conference calls and webcasts in order to achieve broad, non-exclusionary distribution of information to the public and for complying with its disclosure obligations under Regulation FD.
The information disclosed by the foregoing channels could be deemed to be material information. As such, the Company encourages investors, the media, and others to follow the channels listed above, and to review the information disclosed through such channels.
Any updates to the list of disclosure channels through which the Company announces information will be posted on the investor relations page on the Company’s website.
The following Exhibits are filed as part of this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit Number | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Date: | 3/13/2025 | ||||||||||
| BuzzFeed, Inc. | |||||||||||
| By: | /s/ Jonah Peretti | ||||||||||
| Name: Jonah Peretti | |||||||||||
| Title: Chief Executive Officer | |||||||||||
BUZZFEED, INC. COMPLETES STRATEGIC AND ORGANIZATIONAL CHANGES FOLLOWING A TRANSFORMATIVE 2024
Company Strengthens Balance Sheet, Grows High-Margin Revenue Streams, and Expands AI-Driven Innovation
NEW YORK – (March 13, 2025) – BuzzFeed, Inc.’s (“BuzzFeed” or the “Company”) (Nasdaq: BZFD) fourth quarter and full year (ended December 31, 2024) financial results were in line with its outlook shared in December, demonstrating progress in stabilizing operations and positioning the business for long-term growth. Following a strategic transformation in 2024, BuzzFeed is optimistic about the year ahead and is committed to bettering operational efficiency and improving monetization across the Company’s owned and operated sites and apps.
“BuzzFeed has always been at the forefront of digital media, evolving with industry shifts and embracing new technologies,” said Jonah Peretti, BuzzFeed Founder & CEO. “2024 was a transformational year as we strengthened our fundamentals, streamlined operations, and scaled our high-margin revenue streams. By leveraging AI to optimize our tech and advertising, enhance audience engagement, and explore R&D for BF Island, we have positioned BuzzFeed for long-term success in the AI era.”
As part of this strategy, BuzzFeed recently announced the development of BF Island, a new social platform designed to reimagine how people create, share, and engage with content. This ambitious long-term investment aligns with the Company’s vision of fostering creativity and fun while building a more direct relationship with audiences. The Company plans to begin private beta testing BF Island with users in Q2.
“We’ve significantly reduced our debt and strengthened our balance sheet, putting us in a much stronger financial position heading into 2025,” said Matt Omer, BuzzFeed CFO. “With a leaner, more focused operation, we’re prioritizing high-margin, tech-enabled revenue streams like programmatic advertising, affiliate commerce, and AI-driven innovation. These moves give us the flexibility to invest in long-term growth while driving sustainable profitability.”
2024 Full Year Financial and Operational Highlights for Continuing Operations1
●BuzzFeed delivered Full Year 2024 revenues of $189.9 million, declining 18% compared to 2023
○Advertising revenue declined 17% year-over-year to $94.4 million, reflecting an intentional shift away from lower-margin direct sold advertising.
●Programmatic advertising remained relatively flat year-over-year at $64.9 million.
○Content revenue declined 49% year-over-year to $33.9 million, primarily due to a decrease in direct-sold deals and fewer studio projects.
○Commerce and other revenues grew 23% year-over-year to $61.7 million, driven by strong affiliate commerce performance.
●Affiliate commerce increased 26% year-over-year to $59.6 million.
●Net loss from continuing operations improved to $34.0 million, compared to a net loss from continuing operations of $55.7 million in 2023, a result of successful cost savings and operational efficiencies.
●Adjusted EBITDA2 improved by $17.1 million year-over-year, achieving positive Adjusted EBITDA of $5.5 million for the full year 2024.
1 The historical financial results of Complex Networks and First We Feast have been reflected as discontinued operations in our consolidated financial statements. Amounts presented throughout this press release are on a continuing operations basis.
2 As used throughout, Adjusted EBITDA is a non-GAAP financial measure. Refer to “Non-GAAP Financial Measures” below for a description of how it is calculated and the tables at the back of this earnings release for a reconciliation of our GAAP and non-GAAP results.
●In 2024, audience Time Spent3 with our content totaled 297.9 million hours, reflecting a 3% decline year-over-year, though we continue to outpace the competition.
●BuzzFeed ended the period with cash and cash equivalents of approximately $38.6 million, an increase of $3.0 million compared to 2023.
Fourth Quarter 2024 Financial and Operational Highlights for Continuing Operations
●BuzzFeed delivered Q4 revenues of $56.2 million, declining 20% compared to the fourth quarter of 2023, in line with the Company’s outlook shared in December
○Advertising revenue declined 19% year-over-year to $25.4 million, reflecting a deemphasis of direct sold advertising and into higher-margin programmatic advertising.
●Programmatic advertising remained relatively flat year-over-year at $18.0 million.
○Content revenue declined 59% year-over-year to $9.5 million, driven by a reduction in direct-sold content deals and studio revenue.
○Commerce and other revenues increased 39% year-over-year to $21.3 million, supported by strong affiliate performance.
●Affiliate commerce grew 39% year-over-year to $20.8 million.
●Net loss from continuing operations was $3.8 million, compared to net income from continuing operations of $4.4 million in the fourth quarter of 2023.
●Adjusted EBITDA for Q4 2024 was $10.9 million, compared to Adjusted EBITDA of $13.0 million in the fourth quarter of 2023.
●Time Spent improved approximately 10% year-over-year to 79.3 million hours, and BuzzFeed continues to outpace the competition.
Business and Content Highlights
●In Q4, audiences spent more time consuming BuzzFeed content — both overall and among its core demographic of Millennial and Gen Z — than that of any other digital media company in its competitive set,4 reinforcing the Company’s strong tech optimization and engagement strategies.
●The Company achieved significant year-over-year growth in affiliate commerce revenue from both July’s Amazon Prime Day and October’s Prime Big Deal Day, demonstrating strong momentum as we continue to expand high-margin affiliate commerce.
○Further, the Company drove more than $500 million in attributable transactions in 2024 for our commerce partners.
●In Q4 2024, the percentage of loyal users across BuzzFeed.com’s web and app (those who return more than once within a 7-day period) reached approximately 48% - the highest level in the last 2 years.
3 Refer to the definition of “Time Spent” below.
4 Source: Comscore Media Trend, A18+, December 2024; Comps include Condé Nast Digital, Vox Media, People, Bustle Digital Group, Dot Dash Meredith
Full Year 2025 Financial Outlook
The following financial outlook is on a continuing operations basis and includes our planned investment in BF Island for the year ahead.
●We expect overall revenues in the range of $195 million to $210 million, or 3-10% higher than 2024
●We expect Adjusted EBITDA in the range of $10 million to $20 million, an improvement of approximately $10 million year-over-year at the midpoint
These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to “Forward-Looking Statements” below for information on factors that could cause our actual results to differ materially from these forward-looking statements.
Refer to “Non-GAAP Financial Measures” below for a description of how Adjusted EBITDA is calculated. While Adjusted EBITDA is a non-GAAP financial measure, we have not provided guidance for the most directly comparable GAAP financial measure — net (loss) income from continuing operations — due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary to forecast such a measure. Accordingly, a reconciliation of non-GAAP guidance for Adjusted EBITDA to the corresponding GAAP measure is not available.
Quarterly Conference Call
BuzzFeed’s management team will hold a conference call to discuss our fourth quarter and full year 2024 results today, March 13, at 5PM ET. The call will be available via webcast at investors.buzzfeed.com under the heading News and Events, and parties interested in participating must register in advance at the same location. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. While it is not required, it is recommended you join 5 minutes prior to the event start time. A replay of the call will be made available at the same URL.
We have used, and intend to continue to use, the Investor Relations section of our website at investors.buzzfeed.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.
Definitions
BuzzFeed reports revenues across three primary business lines: Advertising, Content and Commerce and other. The definition of “Time Spent” is also set forth below.
●Advertising revenues are primarily generated from advertisers, both programmatically and directly, for ads distributed against our editorial and news content, including display, pre-roll and mid-roll video products. We distribute these ad products across our owned and operated sites as well as third-party platforms, primarily YouTube and Apple News.
●Content revenues are primarily generated from clients for custom assets, including both long-form and short-form content, from branded quizzes to Instagram takeovers to sponsored content. Studio generally includes revenue from films, content licensing, TV projects, and other projects inspired by BuzzFeed IP.
●Commerce and other revenues consist primarily of affiliate commissions earned on transactions initiated from our editorial shopping content. Revenues from our product licensing businesses are also included here.
●Time Spent captures the time audiences spend engaging with our content across our owned and operated sites, as well as YouTube and Apple News, as measured by Comscore. This metric excludes time spent with our content on platforms for which we have minimal advertising capabilities that contribute to our Advertising revenues, including Instagram, TikTok, Facebook, Snapchat, and X (formerly Twitter). There
are inherent challenges in measuring the total actual number of hours spent with our content across all platforms; however, we consider the data reported by Comscore to represent industry-standard estimates of the time actually spent on our largest distribution platforms with our most significant monetization opportunities. Time Spent presented above excludes time spent on Complex Networks, as Complex Networks is presented as a discontinued operation herein. Time Spent on Complex Networks, as reported by Comscore, was approximately 10.0 million hours through the date of the Complex Disposition, February 21, 2024, and 76 million and 126 million hours for the years ended December 31, 2023 and 2022, respectively. Time Spent on Complex Networks, as reported by Comscore, historically included Time Spent on First We Feast, as First We Feast was historically under the Complex Networks’ measurement portfolio of Comscore. It was previously determined that Time Spent on First We Feast cannot be reasonably bifurcated from Time Spent on Complex Networks. As such, we have excluded Time Spent on First We Feast from our measure of Time Spent disclosed above.
About BuzzFeed, Inc.
BuzzFeed, Inc. is home to the best of the Internet. Across pop culture, entertainment, shopping, food and news, our brands drive conversation and inspire what audiences watch, read, and buy now — and into the future. Born on the Internet in 2006, BuzzFeed is committed to making it better: providing trusted, quality, brand-safe news and entertainment to hundreds of millions of people; making content on the Internet more inclusive, empathetic, and creative; and inspiring our audience to live better lives.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures and represent key metrics used by management and our board of directors to measure the operational strength and performance of our business, to establish budgets, and to develop operational goals for managing our business. We define Adjusted EBITDA as net (loss) income from continuing operations, excluding the impact of net income (loss) attributable to noncontrolling interests, income tax (benefit) provision, interest expense, net, other expense (income), net, depreciation and amortization, stock-based compensation, change in fair value of warrant liabilities, change in fair value of derivative liability, restructuring costs, impairment expense, transaction-related costs, certain litigation costs, public company readiness costs, and other non-cash and non-recurring items that management believes are not indicative of ongoing operations. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the same period.
We believe Adjusted EBITDA and Adjusted EBITDA margin are relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by our management. There are limitations to the use of Adjusted EBITDA and Adjusted EBITDA margin, and our Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.
Adjusted EBITDA and Adjusted EBITDA margin should not be considered a substitute for measures prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data.
Forward-Looking Statements
Certain statements in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Our forward-looking statements include, but are not limited to, statements regarding our management team’s expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts (including our outlook for 2025), or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “affect,” “anticipate,” “believe,” “can,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,”
“seek,” “should,” “target,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: (1) macroeconomic factors including: adverse economic conditions in the United States and globally, including the potential onset of recession; potential government shutdowns or failure to raise the U.S. federal debt ceiling; current global supply chain disruptions; the ongoing conflicts between Russia and Ukraine and between Israel and Hamas and any related sanctions and geopolitical tensions, and further escalation of trade tensions between the U.S. and its trading partners; tariffs; the inflationary environment; and the competitive labor market; (2) developments relating to our competitors and the digital media industry, including overall demand of advertising in the markets in which we operate; (3) demand for our products and services or changes in traffic or engagement with our brands and content; (4) changes in the business and competitive environment in which we and our current and prospective partners and advertisers operate; (5) our future capital requirements, including, but not limited to, our ability to obtain additional capital in the future, to repurchase our $30.0 million aggregate principal amount of unsecured convertible notes due 2026 (i.e., the “Notes”) upon a fundamental change such as the delisting of our Class A common stock, at their maturity, or upon the holders of the Notes requiring repayment of their Notes on or after March 31, 2025 (or, if we pay a specified fee, May 31, 2025), any restrictions imposed by, or commitments under, the indenture governing the Notes or agreements governing any future indebtedness, and any restrictions on our ability to access our cash and cash equivalents; (6) developments in the law and government regulation, including, but not limited to, revised foreign content and ownership regulations, and the outcomes of legal proceedings, regulatory disputes or governmental investigations to which we are subject; (7) the benefits of our restructuring; (8) our success divesting of companies, assets or brands we sell or in integrating and supporting the companies we acquire; (9) our success in launching new products or platforms, including any new social media platform; (10) technological developments including artificial intelligence; (11) our success in retaining or recruiting, or changes required in, officers, other key employees or directors; (12) use of content creators and on-camera talent and relationships with third parties managing certain of our branded operations outside of the United States; (13) the security of our information technology systems or data; (14) disruption in our service, or by our failure to timely and effectively scale and adapt our existing technology and infrastructure; (15) our ability to maintain the listing of our Class A common stock and warrants on The Nasdaq Stock Market LLC; and (16) those factors described under the sections entitled “Risk Factors” in the Company’s annual and quarterly filings with the Securities and Exchange Commission.
Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. There may be additional risks that we consider immaterial or which are unknown. It is not possible to predict or identify all such risks. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
###
Contacts
Media Contact: [email protected]
Investor Relations Contact: [email protected]
BUZZFEED, INC.
Financial Highlights
(Unaudited, dollars in thousands)
| Three Months Ended December 31, | % Change | Year Ended December 31, | % Change | ||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||||||||||
| Advertising | $ | 25,427 | $ | 31,581 | (19) | % | $ | 94,362 | $ | 113,642 | (17) | % | |||||||||||||||||||||||
| Content | 9,449 | 23,206 | (59) | % | 33,875 | 66,748 | (49) | % | |||||||||||||||||||||||||||
| Commerce and other | 21,319 | 15,284 | 39 | % | 61,650 | 50,051 | 23 | % | |||||||||||||||||||||||||||
| Total revenue | $ | 56,195 | $ | 70,071 | (20) | % | $ | 189,887 | $ | 230,441 | (18) | % | |||||||||||||||||||||||
| Income (loss) from continuing operations | $ | 3,949 | $ | 6,092 | (35) | % | $ | (23,535) | $ | (44,821) | 47 | % | |||||||||||||||||||||||
| Net (loss) income from continuing operations | $ | (3,768) | $ | 4,374 | NM | $ | (33,956) | $ | (55,712) | 39 | % | ||||||||||||||||||||||||
| Adjusted EBITDA | $ | 10,931 | $ | 13,030 | (16) | % | $ | 5,451 | $ | (11,645) | NM | ||||||||||||||||||||||||
NM: Not Meaningful
BUZZFEED, INC.
Consolidated Balance Sheets
(Unaudited, dollars and shares in thousands, except per share amounts)
| December 31, 2024 | December 31, 2023 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 38,648 | $ | 35,637 | |||||||
| Accounts receivable (net of allowance for doubtful accounts of $1,039, and $1,424 as at December 31, 2024 and 2023, respectively) | 48,944 | 70,969 | |||||||||
| Prepaid expenses and other current assets | 13,294 | 20,710 | |||||||||
Current assets of discontinued operations | — | 5,473 | |||||||||
| Total current assets | 100,886 | 132,789 | |||||||||
| Property and equipment, net | 6,195 | 11,856 | |||||||||
| Right-of-use assets | 28,562 | 46,715 | |||||||||
| Capitalized software costs, net | 22,653 | 22,292 | |||||||||
| Intangible assets, net | 11,751 | 12,914 | |||||||||
| Goodwill | 43,304 | 43,304 | |||||||||
| Prepaid expenses and other assets | 8,047 | 9,508 | |||||||||
Noncurrent assets of discontinued operations | — | 132,098 | |||||||||
| Total assets | $ | 221,398 | $ | 411,476 | |||||||
Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 14,251 | $ | 45,709 | |||||||
| Accrued expenses | 18,881 | 15,515 | |||||||||
| Deferred revenue | 555 | 1,739 | |||||||||
| Accrued compensation | 11,668 | 12,225 | |||||||||
| Current lease liabilities | 22,084 | 21,659 | |||||||||
| Current debt | 25,518 | 124,977 | |||||||||
| Other current liabilities | 3,879 | 4,401 | |||||||||
Current liabilities of discontinued operations | — | 1,570 | |||||||||
| Total current liabilities | 96,836 | 227,795 | |||||||||
| Noncurrent lease liabilities | 15,138 | 37,820 | |||||||||
| Debt | — | 33,837 | |||||||||
| Warrant liabilities | 1,778 | 406 | |||||||||
| Other liabilities | 704 | 435 | |||||||||
| Noncurrent liabilities of discontinued operations | — | — | |||||||||
| Total liabilities | 114,456 | 300,293 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders’ equity | |||||||||||
| Class A Common stock, $0.0001 par value; 700,000 shares authorized; 37,025 and 35,035 shares issued and outstanding at December 31, 2024 and 2023, respectively | 3 | 3 | |||||||||
| Class B Common stock, $0.0001 par value; 20,000 shares authorized; 1,343 and 1,368 shares issued and outstanding at December 31, 2024 and 2023, respectively | 1 | 1 | |||||||||
| Additional paid-in capital | 730,369 | 723,092 | |||||||||
| Accumulated deficit | (621,864) | (611,768) | |||||||||
| Accumulated other comprehensive loss | (3,735) | (2,500) | |||||||||
Total BuzzFeed, Inc. stockholders’ equity | 104,774 | 108,828 | |||||||||
| Noncontrolling interests | 2,168 | 2,355 | |||||||||
Total stockholders’ equity | 106,942 | 111,183 | |||||||||
Total liabilities and stockholders’ equity | $ | 221,398 | $ | 411,476 | |||||||
BUZZFEED, INC.
Consolidated Statements of Operations
(Unaudited, dollars and shares in thousands, except per share amounts)
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Revenue | $ | 56,195 | $ | 70,071 | $ | 189,887 | $ | 230,441 | |||||||||||||||
| Costs and Expenses | |||||||||||||||||||||||
| Cost of revenue, excluding depreciation and amortization | 27,915 | 31,493 | 105,065 | 129,782 | |||||||||||||||||||
| Sales and marketing | 3,783 | 7,970 | 19,729 | 35,942 | |||||||||||||||||||
| General and administrative | 13,628 | 17,109 | 58,627 | 78,026 | |||||||||||||||||||
| Research and development | 2,323 | 2,264 | 10,855 | 11,179 | |||||||||||||||||||
| Depreciation and amortization | 4,597 | 5,143 | 19,146 | 20,333 | |||||||||||||||||||
| Total costs and expenses | 52,246 | 63,979 | 213,422 | 275,262 | |||||||||||||||||||
Income (loss) from continuing operations | 3,949 | 6,092 | (23,535) | (44,821) | |||||||||||||||||||
Other (expense) income, net | (5,443) | 1,372 | (1,605) | (2,990) | |||||||||||||||||||
Interest expense, net | (1,595) | (1,766) | (6,782) | (6,468) | |||||||||||||||||||
| Change in fair value of warrant liabilities | (790) | 83 | (1,372) | (11) | |||||||||||||||||||
| Change in fair value of derivative liability | — | 30 | — | 180 | |||||||||||||||||||
(Loss) income from continuing operations before income taxes | (3,879) | 5,811 | (33,294) | (54,110) | |||||||||||||||||||
Income tax (benefit) provision | (111) | 1,437 | 662 | 1,602 | |||||||||||||||||||
Net (loss) income from continuing operations | (3,768) | 4,374 | (33,956) | (55,712) | |||||||||||||||||||
| Net income (loss) from discontinued operations, net of tax | 34,851 | (15,667) | 24,028 | (33,610) | |||||||||||||||||||
| Net income (loss) | 31,083 | (11,293) | (9,928) | (89,322) | |||||||||||||||||||
| Less: net income (loss) attributable to the noncontrolling interests | 49 | (273) | 168 | (743) | |||||||||||||||||||
| Net income (loss) attributable to BuzzFeed, Inc. | $ | 31,034 | $ | (11,020) | $ | (10,096) | $ | (88,579) | |||||||||||||||
Net (loss) income from continuing operations attributable to holders of Class A, Class B and Class C common stock: | |||||||||||||||||||||||
Basic | $ | (3,817) | $ | 4,647 | $ | (34,124) | $ | (54,969) | |||||||||||||||
| Diluted | $ | (3,817) | $ | 4,647 | $ | (34,124) | $ | (54,969) | |||||||||||||||
| Net (loss) income from continuing operations per Class A, Class B and Class C common share: | |||||||||||||||||||||||
| Basic | $ | (0.10) | $ | 0.13 | $ | (0.91) | $ | (1.54) | |||||||||||||||
| Diluted | $ | (0.10) | $ | 0.13 | $ | (0.91) | $ | (1.54) | |||||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||
| Basic | 38,200 | 36,357 | 37,386 | 35,766 | |||||||||||||||||||
| Diluted | 38,200 | 36,453 | 37,386 | 35,766 | |||||||||||||||||||
BUZZFEED, INC.
Consolidated Statements of Cash Flows
(Unaudited, USD in thousands)
| For the Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Operating activities: | |||||||||||||||||
| Net loss | $ | (9,928) | $ | (89,322) | $ | (201,326) | |||||||||||
| Less: net (income) loss from discontinued operations, net of tax | (24,028) | 33,610 | 83,767 | ||||||||||||||
| Net loss from continuing operations | (33,956) | (55,712) | (117,559) | ||||||||||||||
| Adjustments to reconcile net loss from continuing operations to net cash used in operating activities: | |||||||||||||||||
| Depreciation and amortization | 19,146 | 20,333 | 22,655 | ||||||||||||||
Unrealized (gain) loss on foreign currency | (872) | (1,088) | 5,389 | ||||||||||||||
| Stock based compensation | 5,531 | 5,282 | 18,580 | ||||||||||||||
| Change in fair value of warrants | 1,372 | 11 | (4,543) | ||||||||||||||
| Change in fair value of derivative liability | — | (180) | (4,695) | ||||||||||||||
| Amortization of debt discount and deferred issuance costs | 6,086 | 1,766 | 1,535 | ||||||||||||||
| Deferred income tax | (304) | 3,236 | (1,594) | ||||||||||||||
Gain on disposition of assets | (1,250) | (175) | (500) | ||||||||||||||
Loss (gain) on investment | — | 3,500 | (1,260) | ||||||||||||||
| Provision for doubtful accounts | (385) | (581) | 785 | ||||||||||||||
Impairment expense | — | — | 50,546 | ||||||||||||||
Noncash lease expense | 18,123 | 20,017 | 19,870 | ||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||
| Accounts receivable | 25,816 | 40,568 | 27,462 | ||||||||||||||
| Prepaid expenses and other current assets and prepaid expenses and other assets | 6,124 | 4,577 | 3,508 | ||||||||||||||
| Accounts payable | (30,464) | 19,149 | 11,179 | ||||||||||||||
| Accrued compensation | (474) | (18,257) | (5,440) | ||||||||||||||
| Accrued expenses, other current liabilities and other liabilities | 3,288 | (12,619) | (2,841) | ||||||||||||||
Lease liabilities | (22,222) | (23,421) | (23,249) | ||||||||||||||
| Deferred revenue | (1,245) | (7,098) | 7,154 | ||||||||||||||
| Cash (used in) provided by operating activities from continuing operations | (5,686) | (692) | 6,982 | ||||||||||||||
| Net cash used in operating activities from discontinued operations | (14,993) | (5,411) | (14,839) | ||||||||||||||
| Net cash flow used in operating activities | (20,679) | (6,103) | (7,857) | ||||||||||||||
| Investing activities: | |||||||||||||||||
| Capital expenditures | (691) | (964) | (5,424) | ||||||||||||||
| Capitalization of internal-use software | (12,078) | (13,934) | (12,361) | ||||||||||||||
Proceeds from sale of asset | 350 | 175 | 500 | ||||||||||||||
| Cash used in investing activities from continuing operations | (12,419) | (14,723) | (17,285) | ||||||||||||||
| Cash provided by investing activities from discontinued operations | 191,075 | — | — | ||||||||||||||
| Cash provided by (used in) investing activities | 178,656 | (14,723) | (17,285) | ||||||||||||||
| For the Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Financing activities: | |||||||||||||||||
Payment for shares withheld for employee taxes | (394) | (451) | (1,698) | ||||||||||||||
Deferred reverse recapitalization costs | — | — | (585) | ||||||||||||||
| Proceeds from exercise of stock options | 1 | 29 | 459 | ||||||||||||||
| Proceeds from the issuance of common stock in connection with at-the-market offering, net of issuance costs | 1,030 | 902 | — | ||||||||||||||
Borrowings on Revolving Credit Facility | — | 2,128 | 5,000 | ||||||||||||||
Payments on Revolving Credit Facility | (33,837) | (1,796) | — | ||||||||||||||
| Payment on Convertible Notes | (120,000) | — | — | ||||||||||||||
| Payment of early termination fee for Revolving Credit Facility | (500) | — | — | ||||||||||||||
| Payment of consent solicitation fee for Convertible Notes | (900) | — | — | ||||||||||||||
| Cash (used in) provided by financing activities | (154,600) | 812 | 3,176 | ||||||||||||||
| Effect of currency translation on cash and cash equivalents | (366) | (123) | (1,993) | ||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 3,011 | (20,137) | (23,959) | ||||||||||||||
| Cash and cash equivalents at beginning of year | 35,637 | 55,774 | 79,733 | ||||||||||||||
| Cash and cash equivalents at end of year | $ | 38,648 | $ | 35,637 | $ | 55,774 | |||||||||||
BUZZFEED, INC.
Reconciliation of GAAP to Non-GAAP
(Unaudited, USD in thousands)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||
| Net (loss) income from continuing operations | $ | (3,768) | $ | 4,374 | $ | (33,956) | $ | (55,712) | |||||||||||||||
| Income tax (benefit) provision | (111) | 1,437 | 662 | 1,602 | |||||||||||||||||||
| Interest expense, net | 1,595 | 1,766 | 6,782 | 6,468 | |||||||||||||||||||
| Other expense (income), net | 5,443 | (1,372) | 1,605 | 2,990 | |||||||||||||||||||
| Depreciation and amortization | 4,597 | 5,143 | 19,146 | 20,333 | |||||||||||||||||||
| Stock-based compensation | 1,438 | 995 | 5,531 | 5,282 | |||||||||||||||||||
| Change in fair value of warrant liabilities | 790 | (83) | 1,372 | 11 | |||||||||||||||||||
| Change in fair value of derivative liability | — | (30) | — | (180) | |||||||||||||||||||
Restructuring1 | — | — | 3,179 | 6,761 | |||||||||||||||||||
Transaction-related costs2 | 497 | 800 | 680 | 800 | |||||||||||||||||||
Litigation costs3 | 450 | — | 450 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 10,931 | $ | 13,030 | $ | 5,451 | $ | (11,645) | |||||||||||||||
Adjusted EBITDA margin4 | 19.5 | % | 18.6 | % | 2.9 | % | (5.1) | % | |||||||||||||||
| Net (loss) income from continuing operations as a percentage of revenue | (6.7) | % | 6.2 | % | (17.9) | % | (24.2) | % | |||||||||||||||
(1) We exclude restructuring expenses from our non-GAAP measures because we believe they do not reflect expected future operating expenses, they are not indicative of our core operating performance, and they are not meaningful in comparison to our past operating performance.
(2) Reflects transaction-related costs and other items which are either not representative of our underlying operations or are incremental costs that result from an actual or contemplated transaction and include professional fees, integration expenses, and certain costs related to integrating and converging IT systems.
(3) Reflects costs related to litigation that are outside the ordinary course of our business. We believe it is useful to exclude such charges because we do not consider such amounts to be part of the ongoing operations of our business and because of the singular nature of the claims underlying the matter.
(4) Net (loss) income from continuing operations as a percentage of revenue is included as the most comparable GAAP measure to Adjusted EBITDA margin, which is a Non-GAAP measure.