On November 12, 2024, BuzzFeed Inc (BZFD, Financial) released its 8-K filing for the third quarter of 2024, showcasing a notable improvement in profitability and revenue growth. BuzzFeed Inc, a tech-powered, diversified media company, continues to engage a global audience through its extensive network of news and entertainment content.
Performance and Challenges
BuzzFeed Inc reported a net income from continuing operations of $2 million, a significant turnaround from a net loss of $12 million in the same quarter last year. The company's revenue grew by 7% year-over-year to $64.3 million, driven by strong performances in its Affiliate Commerce and Programmatic Advertising segments. However, advertising revenue saw a slight decline of 3% year-over-year, highlighting ongoing challenges in the advertising market.
Financial Achievements
The company's Affiliate Commerce revenues surged by 53% year-over-year, marking BuzzFeed's most successful Prime Day ever in July. Programmatic Advertising revenues also grew by 9% year-over-year. These achievements underscore BuzzFeed's strategic focus on scalable, tech-driven revenue streams, positioning the company for consistent topline growth and expanded profitability.
Key Financial Metrics
BuzzFeed Inc's Adjusted EBITDA reached $10.5 million, a substantial increase from $0.3 million in the third quarter of 2023. This improvement reflects the company's effective cost management and revenue growth strategies. The company's time spent metric, which measures audience engagement, increased by 2% year-over-year to 80 million hours, further indicating strong audience retention and engagement.
| Financial Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenue | $64.3 million | $60 million | 7% |
| Net Income from Continuing Operations | $2 million | $(12) million | 116% |
| Adjusted EBITDA | $10.5 million | $0.3 million | NM |
Analysis and Insights
BuzzFeed Inc's Q3 results highlight the company's successful execution of its strategy to stabilize and grow its business. The focus on high-margin revenue streams such as Affiliate Commerce and Programmatic Advertising has proven effective, driving significant improvements in profitability and revenue growth. However, the decline in advertising revenue suggests that the company must continue to navigate challenges in the broader advertising market.
“In Q3, we delivered significant improvements in each of our key operating and financial measures - time spent, revenue, and Adjusted EBITDA - growing each year-over-year and quarter-over-quarter,” said Jonah Peretti, BuzzFeed Founder & CEO.
BuzzFeed Inc's strategic refocus on scalable revenue lines positions it well for future growth, with expectations of consistent topline growth and expanded profitability in 2025 and beyond. The company's ability to engage its audience and drive revenue through innovative content and commerce strategies remains a key strength in the competitive interactive media industry.
Explore the complete 8-K earnings release (here) from BuzzFeed Inc for further details.
