BuzzFeed, Inc 10-Q for FY2022 Q3

BuzzFeed, Inc. (BZFD)

10-Q 2022-11-14 For: 2022-09-30

Added on April 07, 2026

About this 10-Q

BuzzFeed, Inc filed this 10-Q on November 14, 2022, covering the quarter ended September 30, 2022 (FY2022 Q3).

Headline figures

Quarter ended September 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $103.73M; up 15.1% from $90.1M a year earlier
Net loss: $26.86M; compared with a net loss of $3.79M a year earlier
Diluted EPS: -$0.19; compared with -$0.20 a year earlier

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Delaware		85-3022075
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
229 West 43rd Street New York, New York		10036
(Address of principal executive offices)		(Zip Code)

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share	BZFD	The Nasdaq Stock Market LLC
Redeemable warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 per share	BZFDW	The Nasdaq Stock Market LLC


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒


		Page
PART I	FINANCIAL INFORMATION	5
Item 1	Financial Statements (unaudited)	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Loss	7
	Condensed Consolidated Statements of Stockholders’ Equity (Deficit)	8
	Condensed Consolidated Statements of Cash Flows	10
	Notes to Condensed Consolidated Financial Statements	11
Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4	Controls and Procedures	45
PART II	OTHER INFORMATION	46
Item 1	Legal Proceedings	46
Item 1A	Risk Factors	47
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	51
Item 3	Defaults Upon Senior Securities	51
Item 4	Mine Safety Disclosures	51
Item 5	Other Information	51
Item 6	Exhibits	52

SIGNATURES		53


	September 30,
	2022		December 31,
	(Unaudited)		2021
Assets
Current assets
Cash and cash equivalents	$	59,136	$	79,733
Accounts receivable (net of allowance for doubtful accounts of $1,748 as at September 30, 2022 and $1,094 as at December 31, 2021)		90,057		142,909
Prepaid and other current assets		33,461		29,017
Total current assets		182,654		251,659
Property and equipment, net		19,446		23,052
Right-of-use assets		61,303		—
Capitalized software costs, net		19,294		16,554
Intangible assets, net		125,124		136,513
Goodwill		194,079		194,881
Prepaid and other assets		16,079		14,555
Total assets	$	617,979	$	637,214

Liabilities and Equity
Current liabilities
Accounts payable	$	22,901	$	16,025
Accrued expenses		27,401		31,386
Deferred rent		—		4,894
Deferred revenue		5,055		1,676
Accrued compensation		27,657		37,434
Current lease liabilities		25,562		—
Other current liabilities		1,749		2,731
Total current liabilities		110,325		94,146
Deferred rent		—		12,504
Noncurrent lease liabilities		52,490		—
Debt		150,740		141,878
Derivative liability		1,350		4,875
Warrant liabilities		1,974		4,938
Other liabilities		3,385		3,992
Total liabilities		320,264		262,333

Commitments and contingencies

Redeemable noncontrolling interest		—		2,294

Stockholders’ equity
Class A Common stock, $0.0001 par value; 700,000 shares authorized; 125,982 and 116,175 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		13		11
Class B Common stock, $0.0001 par value; 20,000 shares authorized; 6,678 and 12,397 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively		1		1
Class C Common stock, $0.0001 par value; 10,000 shares authorized; 6,478 issued and outstanding at September 30, 2022 and December 31, 2021		1		1
Additional paid-in capital		713,418		695,869
Accumulated deficit		(417,621)		(322,106)
Accumulated other comprehensive loss		(2,123)		(3,233)
Total BuzzFeed, Inc. stockholders’ equity		293,689		370,543
Noncontrolling interests		4,026		2,044
Total stockholders’ equity		297,715		372,587
Total liabilities and equity	$	617,979	$	637,214


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenue	$	103,733	$	90,096	$	302,051	$	251,848
Costs and Expenses
Cost of revenue, excluding depreciation and amortization		60,989		48,837		183,336		135,903
Sales and marketing		16,317		11,218		52,808		34,170
General and administrative		27,254		19,829		92,381		65,274
Research and development		5,900		5,686		23,345		19,285
Depreciation and amortization		9,198		5,407		26,292		15,033
Impairment expense		2,160		—		2,160		—
Total costs and expenses		121,818		90,977		380,322		269,665
Loss from operations		(18,085)		(881)		(78,271)		(17,817)
Other expense, net		(2,752)		(2,567)		(5,330)		(1,752)
Interest expense, net		(5,171)		(487)		(14,992)		(1,138)
Change in fair value of warrant liabilities		(395)		—		2,964		—
Change in fair value of derivative liability		300		—		3,525		—
Loss before income taxes		(26,103)		(3,935)		(92,104)		(20,707)
Income tax provision (benefit)		890		(353)		3,036		(5,011)
Net loss		(26,993)		(3,582)		(95,140)		(15,696)
Net income attributable to the redeemable noncontrolling interest		—		67		164		212
Net (loss) income attributable to noncontrolling interests		(137)		137		211		(173)
Net loss attributable to BuzzFeed, Inc.	$	(26,856)	$	(3,786)	$	(95,515)	$	(15,735)

Net loss per Class A, Class B and Class C common share:
Basic	$	(0.19)	$	(0.20)	$	(0.69)	$	(0.90)
Diluted	$	(0.19)	$	(0.20)	$	(0.69)	$	(0.90)
Weighted average common shares outstanding:
Basic		138,939		18,618		137,591		17,464
Diluted		138,939		18,618		137,591		17,464


	Nine Months Ended September 30, 2022
														Accumulated		Total
	Common Stock –			Common Stock –			Common Stock –			Additional				other		BuzzFeed, Inc.				Total
	Class A			Class B			Class C			paid-in		Accumulated		comprehensive		stockholders’		Noncontrolling		stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		capital		deficit		loss		equity		interests		equity
Balance at January 1, 2022	116,175	$	11	12,397	$	1	6,478	$	1	$	695,869	$	(322,106)	$	(3,233)	$	370,543	$	2,044	$	372,587
Net (loss) income	—		—	—		—	—		—		—		(44,894)		—		(44,894)		164		(44,730)
Stock-based compensation	—		—	—		—	—		—		3,940		—		—		3,940		—		3,940
Issuance of common stock in connection with share-based plans	411		1	—		—	—		—		358		—		—		359		—		359
Other comprehensive loss	—		—	—		—	—		—		—		—		(103)		(103)		—		(103)
Conversion of Class B common stocks to Class A common stock	103		—	(103)		—	—		—		—		—		—		—		—		—
Balance at March 31, 2022	116,689	$	12	12,294	$	1	6,478	$	1	$	700,167	$	(367,000)	$	(3,336)	$	329,845	$	2,208	$	332,053
Net (loss) income	—		—	—		—	—		—		—		(23,765)		—		(23,765)		184		(23,581)
Stock-based compensation	—		—	—		—	—		—		11,284		—		—		11,284		—		11,284
Issuance of common stock in connection with share-based plans	3,561		—	—		—	—		—		2		—		—		2		—		2
Shares withheld for employee taxes	(434)		—	—		—	—		—		(1,635)		—		—		(1,635)		—		(1,635)
Other comprehensive income (loss)	—		—	—		—	—		—		—		—		958		958		(453)		505
Reclassification of noncontrolling interest (see Note 10)	—		—	—		—	—		—		—		—		—		—		2,458		2,458
Conversion of Class B common stock to Class A common stock	5,608		—	(5,608)		—	—		—		—		—		—		—		—		—
Balance at June 30, 2022	125,424	$	12	6,686	$	1	6,478	$	1	$	709,818	$	(390,765)	$	(2,378)	$	316,689	$	4,397	$	321,086
Net loss	—		—	—		—	—		—		—		(26,856)		—		(26,856)		(137)		(26,993)
Stock-based compensation	—		—	—		—	—		—		3,635		—		—		3,635		—		3,635
Issuance of common stock in connection with share-based plans	569		1	—		—	—		—		-		—		—		1		—		1
Shares withheld for employee taxes	(19)		—	—		—	—		—		(35)		—		—		(35)				(35)
Other comprehensive income (loss)	—		—	—		—	—		—		—		—		255		255		(234)		21
Conversion of Class B common stock to Class A common stock	8		—	(8)		—	—		—		—		—		—		—		—		—
Balance at September 30, 2022	125,982	$	13	6,678	$	1	6,478	$	1	$	713,418	$	(417,621)	$	(2,123)	$	293,689	$	4,026	$	297,715


	Nine Months Ended September 30, 2021
														Accumulated		Total
	Common Stock –			Common Stock –			Common Stock –			Additional				other		BuzzFeed, Inc.				Total
	Class A			Class B			Class C			paid-in		Accumulated		comprehensive		stockholders’		Noncontrolling		stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		capital		deficit		loss		(deficit) equity		interests		(deficit) equity
Balance at January 1, 2021	1,540	$	—	10,439	$	1	—	$	—	$	36,373	$	(346,818)	$	(3,359)	$	(313,803)	$	—	$	(313,803)
Net loss	—		—	—		—	—		—		—		(11,367)		—		(11,367)		(18)		(11,385)
Issuance of common stock	—		—	—		—	3,839		1		34,999		—		—		35,000		—		35,000
HuffPost Acquisition	—		—	—		—	2,639		—		24,064		—		—		24,064		2,122		26,186
Stock-based compensation	—		—	—		—	—		—		138		—		—		138		—		138
Issuance of common stock upon exercise of stock options	6		—	49		—	—		—		142		—		—		142		—		142
Other comprehensive loss	—		—	—		—	—		—		—		—		(329)		(329)		—		(329)
Balance at March 31, 2021	1,546	$	—	10,488	$	1	6,478	$	1	$	95,716	$	(358,185)	$	(3,688)	$	(266,155)	$	2,104	$	(264,051)
Net loss	—		—	—		—	—		—		—		(582)		—		(582)		(292)		(874)
Stock-based compensation	—		—	—		—	—		—		209		—		—		209		—		209
Issuance of common stock upon exercise of stock options	9		—	55		—	—		—		145		—		—		145		—		145
Merger of BuzzFeed Japan and HuffPost Japan	—		—	—		—	—		—		—		—		—		—		(510)		(510)
Other comprehensive income	—		—	—		—	—		—		—		—		105		105		—		105
Balance at June 30, 2021	1,555	$	—	10,543	$	1	6,478	$	1	$	96,070	$	(358,767)	$	(3,583)	$	(266,278)	$	1,302	$	(264,976)
Net (loss) income	—		—	—		—	—		—		—		(3,786)		—		(3,786)		137		(3,649)
Stock-based compensation	—		—	—		—	—		—		503		—		—		503		—		503
Issuance of common stock in connection with share-based plans	13		—	112		—	—		—		294		—		—		294		—		294
Disposition of subsidiary	—		—	—		—	—		—		—		—		—		—		258		258
Other comprehensive income	—		—	—		—	—		—		—		—		485		485		—		485
Conversion of Class B common stock to Class A common stock	2,350		—	(2,350)		—	—		—		—		—		—		—		—		—
Balance at September 30, 2021	3,918	$	—	8,305	$	1	6,478	$	1	$	96,867	$	(362,553)	$	(3,098)	$	(268,782)	$	1,697	$	(267,085)


Cash consideration⁽¹⁾	$	197,966
Share consideration⁽²⁾		96,200
Total consideration	$	294,166


			Measurement
			Period
	Preliminary		Adjustments	Updated Preliminary
Cash	$	2,881	—	$	2,881
Accounts receivable		22,581	11		22,592
Prepaid and other current assets		17,827	281		18,108
Property and equipment		332	(15)		317
Intangible assets		119,100	—		119,100
Goodwill		189,391	(802)		188,589
Accounts payable		(2,661)	—		(2,661)
Accrued expenses		(12,319)	(910)		(13,229)
Accrued compensation		(12,867)	349		(12,518)
Deferred revenue		(5,855)	(48)		(5,903)
Deferred tax liabilities		(22,776)	1,134		(21,642)
Other liabilities		(1,468)	—		(1,468)
Total consideration for Complex Networks	$	294,166	—	$	294,166


		Weighted Average
	Asset Fair Value	Useful Life (Years)
Trademarks & tradenames	97,000	15
Customer relationships	17,000	4
Developed technology	5,100	3


Fair value of common stock issued⁽¹⁾	$	24,064
Working capital adjustments		(490)
Total consideration	$	23,574


	September 30, 2022
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	—	$	—	$	—	$	—
Total	$	—	$	—	$	—	$	—
Liabilities:
Derivative liability	$	—	$	—	$	1,350	$	1,350
Other non-current liabilities:
Public Warrants		1,920		—		—		1,920
Private Warrants		—		54		—		54
Total	$	1,920	$	54	$	1,350	$	3,324


	December 31, 2021
	Level 1		Level 2		Level 3		Total
Assets:
Cash equivalents:
Money market funds	$	1	$	—	$	—	$	1
Total	$	1	$	—	$	—	$	1
Liabilities:
Derivative liability	$	—	$	—	$	4,875	$	4,875
Other non-current liabilities:
Public Warrants		4,792		—		—		4,792
Private Warrants		—		146		—		146
Total	$	4,792	$	146	$	4,875	$	9,813


	Derivative
	Liability
Balance as of December 31, 2021	$	4,875
Change in fair value of derivative liability		(3,525)
Balance as of September 30, 2022	$	1,350


	September 30, 2022		December 31, 2021
Leasehold improvements	$	50,534	$	47,573
Furniture and fixtures		6,389		6,029
Computer equipment		5,762		5,134
Video equipment		783		648
Total		63,468		59,384
Less: Accumulated depreciation		(44,022)		(36,332)
Net Carrying Value	$	19,446	$	23,052


	September 30, 2022		December 31, 2021
Website and internal-use software	$	91,653	$	81,908
Less: Accumulated amortization		(72,359)		(65,354)
Net Carrying Value	$	19,294	$	16,554


	September 30, 2022								December 31, 2021
	Weighted-								Weighted-
	Average								Average
	Remaining		Gross						Remaining
	Useful Lives		Carrying		Accumulated		Net Carrying		Useful Lives	Gross Carrying		Accumulated
	(in years)		Value		Amortization		Value		(in years)	Value		Amortization		Net Carrying Value
Acquired Technology		2	$	10,600	$	4,396	$	6,204	3	$	10,600	$	1,745	$	8,855
Trademarks and Trade Names		14		111,000		6,906		104,094	15		111,000		1,356		109,644
Trademarks and Trade Names		Indefinite		1,368		—		1,368	Indefinite		1,368		—		1,368
Customer Relationships		3		17,000		3,542		13,458	4		17,000		354		16,646
Total			$	139,968	$	14,844	$	125,124		$	139,968	$	3,455	$	136,513


Remainder of 2022	$	3,796
2023		15,183
2024		13,438
2025		11,296
2026		7,400
Thereafter		72,643
Total	$	123,756


	September 30, 2022		December 31, 2021
Principal outstanding	$	150,000	$	150,000
Unamortized debt discount and issuance costs		(32,764)		(36,627)
Net carrying value	$	117,236	$	113,373


	2022		2021
Balance as of January 1,	$	2,294	$	848
Allocation of net (income) loss		164		60
Balance as of March 31,	$	2,458	$	908
Merger of BuzzFeed Japan and HuffPost Japan		—		510
Allocation of net (income) loss		—		85
Reclassification to permanent equity		(2,458)		—
Balance as of June 30,	$	—	$	1,503
Allocation of net (income) loss		—		67
Balance as of September 30,	$	—	$	1,570


		Weighted		Weighted
		Average		Average	Aggregate
	Number of	Exercise		Remaining	Intrinsic
	Shares	Price		Term	Value
Balance as of December 31, 2021	4,560	$	6.29	3.07	$	2,670
Granted	714		3.88
Exercised	(308)		1.02
Forfeited	(250)		6.33
Expired	(512)		7.48
Balance as of September 30, 2022	4,204		6.12	3.58		178
Expected to vest at September 30, 2022	4,204		6.12	3.56		178
Exercisable at September 30, 2022	3,315		6.23	2.09		178


		Weighted Average Grant-
	Shares	Date Fair Value
Outstanding as of December 31, 2021	5,235	$	8.88
Granted	8,104		3.12
Vested	(4,179)		8.32
Forfeited	(904)		6.24
Outstanding as of September 30, 2022	8,256	$	3.81


	Three Months Ended		Nine Months Ended
	September 30, 2022		September 30, 2022
Operating lease cost	$	7,653	$	22,820
Sublease income		(2,680)		(6,350)
Total lease cost	$	4,973	$	16,470


	Nine Months Ended
	September 30, 2022
Supplemental cash flow information:
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating lease liabilities		25,434


	September 30, 2022
Weighted average remaining lease term (years)	3.31
Weighted average discount rate	13.02	%


Year	Operating Leases
Remainder of 2022	$	8,599
2023		32,031
2024		23,716
2025		20,979
2026		8,272
Thereafter		2,193
Total lease payments		95,790
Less: imputed interest		(17,738)
Total	$	78,052


Year	Amount
2022	$	33,817
2023		31,910
2024		23,885
2025		21,148
2026		8,441
Thereafter		2,642
Total	$	121,843


	September 30, 2022		December 31, 2021
Individual Monetization:
Feature films in production	$	4,058	$	3,690
Total	$	4,058	$	3,690


Exhibit Number		Description
31.1		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and 15d-14(a) under the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1#		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2#		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS		XBRL Instance Document.
101.SCHXBRL		Taxonomy Extension Schema Document.
101.CAL XBRL		Taxonomy Extension Calculation Linkbase Document.
101.DEF XBRL		Taxonomy Extension Definition Linkbase Document.
101.LAB XBRL		Taxonomy Extension Label Linkbase Document.
101.PRE XBRL		Taxonomy Extension Presentation Linkbase Document.
104		Cover Page Interactive Data File (formatted as Inline XBRL and included in Exhibit 101).


		BuzzFeed, Inc.

		By:	/s/ Felicia DellaFortuna
			Chief Financial Officer
			(Principal Financial Officer and Duly Authorized Officer)
Date:	November 14, 2022


By:	/s/ Jonah Peretti
	Jonah Peretti
	Chief Executive Officer
	(Principal Executive Officer)

By:	/s/ Felicia DellaFortuna
	Felicia DellaFortuna
	Chief Financial Officer
	(Principal Financial Officer)