BuzzFeed (BZFD) 15 Nov 222022 Q3 Earnings call transcript

Good afternoon, and welcome to the BuzzFeed Inc Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Amita Tomkoria, Senior Vice President of Investor Relations. Please go ahead.

Hi, everyone. Third Earnings Inc.'s Call. BuzzFeed to Quarter Conference XXXX Welcome

Jonah Founder Marcela Joining are CEO, Peretti; DellaFortuna. us today Felicia and President, CFO, Martin; and

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XXXX, the QX million. $XXX million For range $XXX to of in revenues expect we overall

and in in expenses expect range I million. evolving digital in to delivered the results million agility $XX.X proud landscape. the million We adjusted $X.X the EBITDA of million, compensation of further we third of to quarter, our stock-based to our the the team $XX.X media rapidly am adapting demonstrating $X.X range in expect

are ahead, base And engagement optimizing I'll cash Looking cost can operator to so focused now Thank we the the we further coming and growing turn our short-term on audience questions. you. over take call video, the your preserving over quarters. around

Kreyer with [Operator Instructions] Craig-Hallum. Our first question is from Jason

to Wondering can versus you're how rationalization trying preserve bit investments bottom talk the cost if growth you maybe a just managing little more bit a line. about little further and

actions sequential revenue the continuously from as of variable what such of you fixed of headwinds, in changes from component the throughout we cost macroeconomic general to new take well optimization which year is help the at year, a administrative And and tax the in and BuzzFeed EBITDA QX. say And we part in is mitigate versus QX as adjusted cost perspective, deceleration or cost a announced light had as also of have well. start we decline in in recall, as the to drove sales I this of revenue our continued QX looking So are to the expenses. could as at the fixed unification expenses the

in that the that of maybe we Felicia really way we're investments always the we've video for And in as and And some creators, shifted other the short-form and has before these shifts mentioned, have they actions market. in benefit also, the looked we can as seeing to of take that. areas Yes. were market vertical growing aren't cost area,

Jonah, add, for can investor add, our of -- Reels, if XXXX. see will they I sorry, can if I you I And letter, that, mean have example, views for than of and just grown versus QX you see will more at Shorts you the engagement look trends. if XX% some TikTok

So the entirety spent the what is it in not measured is engagement. terms reflecting while of time of being

we that quite the far are -- did We results that with in video. short-form that obtained so we have pleased in the investments

So to follow-up. that's I what the want ask for

So out spent can is the you Can an I the I help offsetting obviously, impacts that time but that you've got spent? parse -- short -- just short-form form down time And think factor, you believe. how XX%, dynamic?

of give is on and biggest but legacy window in for other that and the for -- long-term vertical and have seeing a to the we'll one measurement Yes. when video the mentioned that Facebook lag for clear take come they're consumer Marcela come earlier, for some a to was and as deemphasize is distributing both platforms. to does audience. example, their it it's video -- started which videos. and from monetization that the was opportunity our amount and instead how platforms consumption longer from video. declines legacy platform Facebook spent focus in start I have mid-roll of into to us on a serving replacing because that the have fair Facebook short-form business, to of those kind growth, we're time of video a us, time And that's those that to And video video, longer, both mean time monetization view has advertising longer in that

those out how YouTube to expand bit deals or So Comscore, to there's services Meta up. their those order with And time deals platforms. measurement waiting other to start of some strike Nielsen, of for to have catch on a or measurement deals ByteDance some lag of a in to with figure measure

and I owned YouTube add year-over-year. to would up also that be our continue operated and

an seeing revenues. approximately other advertising decline spent the what overall Facebook. of thinking is from So time total only when our important you're majority distributed the And note about that's you're is network, XX%

And year-over-year that and so total has improvement strong majority, that and operated, and quarter-over-quarter. shown at in is looking both owned the

next is John Cowen. question with The from Blackledge

James now which is the that about for Kopelman industry the perspective. This a you're seeing into on environment you maybe into follow-up. I spending in performing worse talk highlighted? Can quarter consumer And better where fourth ad an are advertising John. you or from then November, And verticals the resilience demand have

Sure.

-- So consumers the uncertain part holiday season. first, the will that this bit is is still a behave how

will know kids holidays. don't we yet whether So the or of that be for buy people presents there in Christmas if impact will less kind their

have, we reach millennial Z ability brands to offer, less we we're So of unprecedented imagine the not scale see. see CPG, multiple little and and market tech is What signal. are like talking that and services little the tech really and you offer, strength to wait conversations have the in very softness of they're -- we'll in and is and that that which talking by in differentiators. the that for we're advertisers. We're example, sector, generations at our that to that's travel, we all a the is verticals would macro some encouraged shifts Gen a financial a and the to our lines -- real bullishness on retail. I But in seeing seeing iconic less Overall, safety toys positive the sales feel unexpected that in brand our the because spending feel the so facing. way the emerging we product advertisers team with we're seeing all

just we're have can are talking to, us of once in clarity areas more ones mentioned, they out how in with trying all to so I even impacted they market, us. engaged the the engage and those with figure very partner partners And on

And revenue. Buzzfeed Advertising is currently a then Great. of quick around follow-up. half

look commerce goal how advertising content the about eventually from think your scale to term, and source? of X/X, as each business If longer thinking is X/X we this the And and you from to about relative time? business at over get are should percent around how you generally you the X/X

taken to to the Yes. build to lines want be that able the more changes. The approach us things we've is react little a market market to but bit diversified portfolio and gives resiliency can market, as adapt change. of a predict and We as do we trying to revenue the flexibility the

so are what pandemic us or for retail being lockdowns strong see for point. or line commerce, branded closed the a And you and during partners retail physical driver was example, content advertisers was a at huge real for. looking because content other was And periods, then

to We're idealized to our So in we're not trying that can kind the multiple of so set have market to react lines areas we a ratio. throws trying way. business whatever strong really

are Yes. XXXX. speak to we more we once in it sorry, Day planning to will our Investor goals planning our James, about in join sometime that happen announced And we James are --

of Bank from is Brent America. with next Navon The question

mean and Jonah I in conversations advertisers. the of anything you you I you be of -- sort a in guess surprising. about sort with I then any in that that rate just XQ sort provided we guidance 'XX on Or could curious, 'XX? worse? talk through in our of is helpful. terms of can not obviously, mean should advertising, team, the that's terms And just as cautiousness potential run I'm there that fairly color things is would XQ take get of

consumer as say is and seen by know Yes. unpredictable seen part technology now, right we've the as lot driven would lot, the market platform that pandemic very I quarterly that shifts shifts well as well as is of a macroeconomic a We've other been as shifts environment we've guidance of anyone. reason behavior or factors. the or providing you

and future, of They're really can anecdotally there's the of are but engaged, our they a uncertainty our so very that And in towards the -- partners. biggest we sort and to advertisers we share looking biggest talking lot market. they're feeling

economy, I next would the of say get for to we year out, want how is lot see going I from we message on And this that a partners our the of what's sense a so that all to is stuff want hear to spend a continue with holiday. there does the and in and is the shopping come in force market, forward do over how and shake going consumers to does inflation Or the roll go shifts season like out this? holiday this lot

predictions really partners engaged the they talking So they But there's in for about we'd to what's economy and partnerships our wait market be it are a of and clarity hard rather do as to understand can it feels of those cards a and QX. fall that things very -- lot going they kinds have like questions is kind any about are definitely where that as feels able ideas headed. soon of about more that few to on macro the making before

As still are a relates we showing comment, guide QX strong and just a larger advertisers have perspective historical our our it noticed from retention Jonah's rate. to that

are we looking still So our XX%. at renewing advertisers with at around larger us

verticals However, retail and been their has major sales year-over-year have telco from that tech declines being impacted shown perspective. most with the overall a spend CPG

and outlook seeing for that XXXX. while we've seen us seasonal X to factor historically, what our we're is muted be important versus And from that is lift so a QX

That's can platforms. brand trying is How an industry the there's just I'm changes, level of be one just could cyclical I anything know that I opportunity well. potentially would that up things incremental is and very position be at on curious, maybe a just helpful color. Got how about several opportunity to as it. potentially all share, guys and an both now lot of name to follow-up, your Buzzfeed as being this perspective, think and you helpful safety. a themselves? just obviously, talked -- you And digital of there's an pick big from advertising, -- just you for

has natural I realizations getting content, the dollars much content, more to users, takes and those in business on platforms that how the and your issues. from your platform with content content, they gems all to challenge. the for while apply time one you have are And polarizing but from And your the is moderate all those that of this more looking Meta billions and spend money and if these money big their And safe hyperpolitical think depends required it and that free to how it content, -- high-quality, acceptable struggle spent of more much filtering recently harassing content, takes effort partners. want and of misinformation, model advertising content, out this content to big just kinds advertisers of model. more of good on work technology and contradiction

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platform. any will not on particular depend It

We are platform analytic.

Brent that good on is baby. that, think very, And the I a BuzzFeed. for congratulations, strength very

to the closing turn over like conference question-and-answer our to remarks. concludes Peretti back This would Jonah I for session. any

with the today. for many Thanks We joining. forward for of speaking all you joining you look weeks. us Thank coming over to

now attending today's for you has conference The presentation. concluded. Thank

now disconnect. may You