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NEW YORK - BuzzFeed Inc. (NASDAQ:BZFD), currently valued at a market cap of $74.86 million, has reported its financial results for the fourth quarter and full year ending December 31, 2024, showing alignment with its previously shared outlook and marking progress in its strategic transformation aimed at long-term growth. Despite a year-over-year revenue decline of 18% to $189.9 million for 2024, the digital media company has seen improvements in its operational efficiency and monetization strategies. According to InvestingPro data, the company operates with a significant debt burden of $146.09 million and maintains a concerning current ratio of 0.67, indicating potential liquidity challenges.
Jonah Peretti, BuzzFeed Founder & CEO, highlighted that 2024 was pivotal for the company as it bolstered its fundamentals, streamlined operations, and expanded high-margin revenue streams. He emphasized BuzzFeed’s focus on AI to optimize technology and advertising, enhance audience engagement, and support research and development for their new social platform, BF Island.
The company’s financial position has strengthened, with a reduction in debt and an increase in cash reserves to $38.6 million. BuzzFeed’s net loss from continuing operations improved to $34.0 million in 2024 from a net loss of $55.7 million in 2023. Adjusted EBITDA turned positive at $5.5 million for the full year 2024, a significant improvement from the previous year. InvestingPro analysis reveals the company’s stock has shown high volatility with a beta of 3.75, while maintaining a concerning negative free cash flow yield. For detailed insights into BuzzFeed’s financial health and 10+ additional ProTips, consider exploring InvestingPro’s comprehensive research report.
Despite a 3% decline in audience time spent with BuzzFeed content, the company still outpaces its competitors. Commerce and other revenues grew by 23% to $61.7 million, largely driven by a 26% increase in affiliate commerce to $59.6 million.
For the fourth quarter of 2024, revenues were down 20% to $56.2 million compared to the same period in 2023, with advertising revenue declining 19% to $25.4 million. However, commerce and other revenues saw a 39% increase to $21.3 million, with affiliate commerce growing 39% to $20.8 million.
Looking ahead, BuzzFeed anticipates overall revenues for 2025 to range from $195 million to $210 million, representing a 3-10% increase over 2024. Adjusted EBITDA is expected to be between $10 million and $20 million, signaling further improvements at the midpoint. InvestingPro analysts anticipate sales growth in the current year but do not expect the company to achieve profitability, with an EPS forecast of -$0.78 for 2024. Discover more detailed financial analysis and expert insights through InvestingPro’s exclusive research reports, available for over 1,400 US stocks.
The company plans to begin private beta testing of BF Island in Q2, aligning with its vision to foster creativity and build direct relationships with audiences. This is part of BuzzFeed’s strategy to prioritize tech-enabled revenue streams and AI-driven innovation.
BuzzFeed’s management team will discuss the results in a conference call, which will be available via webcast. The information is based on a press release statement.
In other recent news, BuzzFeed, Inc. has announced the approval of cash and equity bonuses for its top executives, including CEO Jonah Peretti, as part of a strategy to align leadership interests with company performance. This decision, detailed in an SEC filing, involves significant bonuses for key executives, with Peretti receiving $50,076 in cash and 10,241 restricted stock units. Additionally, BuzzFeed has disclosed plans for a workforce reduction at HuffPost, aiming for a 5% cut in its current workforce to streamline operations. This move is expected to incur restructuring charges between $1.8 million and $2.0 million, with anticipated annual pre-tax savings of approximately $4.0 million starting from the second quarter of 2025.
Furthermore, BuzzFeed has extended the deadline for Option Repurchase Notices to March 31, 2025, through a payment of $0.9 million to Wilmington Savings Fund Society, FSB. This extension is part of the company’s ongoing financial strategy, as outlined in several amendments to its Indenture agreements. These developments reflect BuzzFeed’s efforts to manage its financial obligations and optimize operational efficiency amidst a competitive digital media landscape.
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