NEW YORK - BuzzFeed, Inc. (NASDAQ: BZFD) has reported a profitable third quarter with significant year-over-year growth in affiliate commerce and programmatic advertising revenues. The company's net income from continuing operations reached $2 million, and its Adjusted EBITDA hit $11 million, near the upper end of its previous guidance.
The media company's affiliate commerce revenues soared by 53% compared to the same period last year, which included its most successful Prime Day in July. Programmatic advertising revenues also experienced a healthy increase, rising by 9% year-over-year.
Overall, BuzzFeed's third-quarter revenues grew by 7% to $64.3 million, with commerce and other revenues up by 45% at $20.9 million. Despite a 3% decline in advertising revenue, which came in at $26.1 million, the company's focus on scalable, tech-driven revenue streams appears to be paying off.
The company's audience engagement also saw an uptick, with time spent growing to 80 million hours, a 2% increase from the previous year. This growth in engagement positions BuzzFeed as a leader in time spent among its competitive set, particularly with Millennial and Gen Z demographics.
BuzzFeed's CEO, Jonah Peretti, highlighted the company's strategic efforts to stabilize the business, which have led to growth in key revenue lines and positioned the company for consistent top-line growth and expanded profitability going forward.
The financial and operational improvements come after a year-over-year improvement of approximately $14 million in net income from continuing operations and around $10 million in Adjusted EBITDA.
As BuzzFeed continues to execute its strategy, the company looks forward to sharing updates on its debt, balance sheet, and Q4 financial outlook in the coming weeks. The information in this article is based on a press release statement.
In other recent news, BuzzFeed Inc. has reported its Q2 2024 earnings, revealing a strategic shift towards generative AI and interactive content to enhance user engagement and monetization. Despite a 24% year-over-year revenue decline, the company has noted key performance improvements and a strong performance during Prime Day. BuzzFeed's CEO and CFO have detailed the company's progress in reducing debt, enhancing its cash position, and returning two major revenue streams to growth. The company reported $2.7 million in profits and anticipates continued growth into Q3.
In addition to earnings, BuzzFeed has modified the terms of its outstanding 8.50% Convertible Senior Notes due 2026. The changes mainly relate to the optional repurchase of notes by holders, allowing them to compel BuzzFeed to buy back the notes for cash under specific conditions. Beneficial holders of the notes can request repurchase by providing BuzzFeed with an Optional Repurchase Notice and evidence of their beneficial ownership.
These developments underscore BuzzFeed's ongoing efforts to navigate a challenging business environment while maintaining a focus on strategic growth areas.
InvestingPro Insights
BuzzFeed's recent financial performance, as reported in its third-quarter results, aligns with some of the trends identified by InvestingPro. The company's return to profitability in Q3 is particularly noteworthy, given that one InvestingPro Tip indicates BuzzFeed was "Not profitable over the last twelve months." This recent turnaround suggests a potential shift in the company's financial trajectory.
The significant growth in affiliate commerce revenues, highlighted in the article, is reflected in the InvestingPro data showing a strong return over various time periods. For instance, BuzzFeed has seen a 34.75% price total return over the past month and an impressive 218% year-to-date return as of the latest data.
However, it's important to note that despite these positive indicators, BuzzFeed still faces challenges. An InvestingPro Tip points out that the company "Operates with a significant debt burden," which may be why management plans to provide updates on its debt and balance sheet in the coming weeks.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for BuzzFeed, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable as BuzzFeed continues to navigate its growth strategy and address its financial challenges.
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