BuzzFeed Inc. (BZFD) Q1 2024 Earnings: It's An AI Show
BuzzFeed, Inc. (BZFD) has released its financial results for the first quarter of 2024, highlighting a 18% year-over-year decline in revenue to $44.8 million. The company is striving to utilize artificial intelligence (AI) to enhance audience engagement and improve the shopping experience. Even with the overall downturn, BuzzFeed has witnessed an increase in programmatic advertising revenues, which is its largest and highest-margin revenue stream. The company recently completed a restructuring program expected to save $23 million annually, and the cash balance rose to $62 million after selling Complex Networks.
For the second quarter, BuzzFeed expects a further revenue decline but adjusted EBITDA to remain roughly stable. The company is optimistic about its high-margin programmatic advertising and initiatives to ensure long-term profitability and cash generation.
Here are the key takeaways from the report:
BuzzFeed's Q1 2024 revenues fell by 18% year-over-year to $44.8 million, with advertising revenues down 22% to $21.4 million.
Programmatic advertising for BuzzFeed and HuffPost grew by 6% year-over-year, marking the third consecutive quarter of growth.
The company experienced a 3% quarter-over-quarter increase in direct traffic to its sites and apps.
AI-powered features have been introduced, driving high levels of engagement.
BuzzFeed completed a restructuring program, leading to $23 million in annualized savings.
The cash balance rose to $62 million due to the sale of Complex Networks.
Q2 outlook predicts an overall revenue decline between 21% and 30% year-over-year, with adjusted EBITDA expected to be flat year-over-year.
For the second quarter, revenues are projected to fall between $44 million and $49 million, a 21% to 30% decrease year-over-year.
Adjusted EBITDA for Q2 is forecasted to range from a loss of $4 million to a profit of $1 million, roughly unchanged from the previous year.
BuzzFeed plans to drive high-margin programmatic and affiliate revenues.