BuzzFeed (BZFD) 8 Aug 232023 Q2 Earnings call transcript

Good day, ladies and gentlemen. Thank you for standing by. Welcome to BuzzFeed's Second Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. that may note recorded. Please Instructions] today's be conference [Operator

to the host, of I hand over Investor your President will now Vice conference speaker Senior Amita Relations. Tomkoria,

go Please ahead.

conference BuzzFeed of President Relations. quarter Hi, Senior Investor Inc.'s Welcome Amita Tomkoria, to XXXX everyone. earnings call. I'm Vice second

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

will we you that remind get opportunity this to started, Before remarks I include today take statements. would like to forward-looking our

tomorrow. are statements. press forward-looking that we from are on on those a XXXX quarterly information undertake contemplated these statements and Any Form events. QX forward-looking results to QX could annual result on report on based our no Actual these differ results new XX-Q, these cause quarterly today, in may report materially statements set by this forth obligation make release, filed Form report and Factors call as differ as of be materially XX-Q our on XX-K, of assumptions update we future in to that Form today's our or to

During adjusted this use establish margin. both call, operational the non-GAAP financial business. and performance to and our strength budgets of develop us measures measure EBITDA financial allows The for to our EBITDA managing adjusted and we measures, including to goals non-GAAP of present and GAAP business operational

and they today's EBITDA Please Relations margin release. measures letter. of our with in useful the in are these earnings included website press by refer EBITDA adjusted to press our along our reconciliation adjusted to allow to manner investor investors to management. because non-GAAP Investor release is A believe GAAP view for to used We method find relevant today's similar investors a and information performance

And pass to the call now Jonah. I'll over

afternoon, everyone, for today. Good joining Amita. you thank us and you, Thank

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Jonah, you, Thank everyone. and afternoon, good

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hand and outlook. everyone, the Thank financial here call for you, our being I to today. discuss to now will Felicia results

as trends and competition both as demand is pressure. time as to expected, quarter with $XX.X audience line in to revenues ongoing for XXXX line and ad Advertising contributed and results to quarter adjusted you, lower Marcela. dollars declined as line EBITDA. our first We year-over-year revenues expected have QX XX% Thank and with XX% with declined by Overall follows: in for year-over-year for revenue line range QX guidance second pricing Performance revenue in million, increased delivered trends. both million $XX.X

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We April. of approximately that and Relations ended did cash non-GAAP available in A on also $XX cash related equivalents website. our million EBITDA. reconciliation million, announced quarter our we today's of found approximately actions the Investor payments lower in the can incurred including impact cost charges release press to We full quarter-over-quarter, in with $X not to GAAP be adjusted measures $X

payments we flow. operating on before Further, a basis, restructuring achieved cash year-to-date breakeven

engagement Time Turning and to Spent. audience

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I me with our quarter, context. financial Before share Starting let the some outlook for revenues. provide third first

remain both from QX to Content Commerce year-over-year consistent revenues and to the expect QX. We underlying in trends

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to in For XX% QX ago expect XXXX, or overall to the year lower quarter. XX% million we $XX $XX revenues million range the than of

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And reiterate to finally, and I regarding cash just liquidity. remarks want Marcela's

laser We focused preserving on continue cash. be to

realize we restructuring on QX, expect we to ongoing of cash exit As the benefits basis. full an our

over hand now take to your it the I'll operator you. so can questions. Thank we

now I'll over Tomkoria or Instructions] questions. [Operator it any Amita to for hand web

Great. Thank you.

I've have gathered several We received here. questions which already,

going data, leverage So this Jonah go the cookies pose you XXXX first-party to ahead looking advantage topic as of today? deprecated. to we're data for and the about are in jump first how in could what is with BuzzFeed right And talk first-party Jonah, on question can

Thanks for the question. Yes.

partners served impressions. So partners our in really solution when our targeting. XXXX, known than -- and XXXX we as meaningful X has results when use drives first-party billion use when data our And Lighthouse, -- more over first-party Lighthouse delivered Lighthouse it average, -- advertisers on XXX data in

encouraging the long the advertising all To for and to pages nice and impact matter with of are opportunities seeing brand that on power understand contextual higher having to us our better haul. they over We're the that of use new campaigns, their better AI Xx Lighthouse signs across improved most. generate into that also flow tailwind metrics Xx models site media to is business targeting enabling the and create a that content

ability for new will to a technology with cookies away. types AI is for really something ad of biggest that do overall, brandless us alignment of be the and strong to tech allow It contextual the think and great for I sort will going apply really our targeting And strong companies. advertisers. having brands the job challenge of nameless But

first-party applied So we're can excited the our about business. way that be to data

you. Thank Great.

Our question with on thoughts Maybe next with in and starting monetization second you, into Can impacting that is you the is how some revenues. around content yet half traction the gaining business? short-form Marcela, share again, XXXX. advertising

also the some through in short-form ad of adoption And current walk owned-and-operated trends. trends you versus then could advertising

Sure. Thank you, question. Amita, for the

So in to we information I'm we And in maybe, going short-form. start Felicia, about about little and giving what can see regards to bit a advertising revenues to some talk you then jump that see. the trends

in the monetization short-form, platforms partners. So of the terms taken we to excited step publishing already major have are that first with share

monetization discussed we for TikTok were as And participate last Pulse first as we to the video of quarter, publishers publishers. Premiere selected vertical in one program

this from content platform. it revenue the of time a on passive published will to participate. one first organically -- premium able select but is group publishers publishers that be the is to So invited earn And of

selling a monetizing that. So vertical product. been video creator-less already are have by content we advertisers to And quite happy about short-form directly branded we via

have earlier continue on also As scale to will we for the clients. our you heard call, which

the yet QX. to say we well time on X content And short-form quarterly last, would surpassed I to monetize quarterly We like views in first video again vertical TikTok are Tasty's I X format. views to mean, positioned and billion that short-form continue billion surpassed for

So Felicia, second to the you the on do question? part of go want

Marcela. you, Thank

to by the ended terms and trends QX still in audience is year-over-year the across being QX and lower revenues So in both terms ongoing contributed our huffpost.com of time competition properties for with increased both of by and which driven ad pressure. dollars, price line in decline with buzfeed.com, demand advertising owned-and-operated advertising the driven of revenue overall rest. our majority revenues, vast

momentum and have in to across output In And engagement. YouTube second However, year-over-year vertical we of advertising new a revenues record. as quarter, Marcela the TikTok audience of reach generate discussed. content on begun for short-form doubled quarterly video, our are and views the we pleased short-form with terms platforms to

a we anticipate on sizable to However, forward. scale go for revenue time contributions taking do generating it

Felicia. Thanks, Marcela. Thanks,

on can the feedback question some is Jonah, AI. topic of next discuss usage. the Our of from you AI early

the the work -- You pacing. mentioned some of of some how is

also what terms consumer benefits specifically, of well. seeing are cost But on anything you engagement in and as

Sure. Thanks.

back, think clear the these take major where there's lot technology a think it's any think step try five and Publishing going to generative to impact a the year, we I when we trend AI of industry with three AI, be years, two headed years, on So over is to new years. Digital about next like technologies, Content. And

so building business And positive something is that future very towards with our we're and that aligning on. trend focused that

sense think good to where good way And And for. think for a start done are work. see to so really a we what to think our project far, strong seeing it's so you progress we're AI starting I early we've the is we understand at some look work how get things of and headed, we're can to this technology and

are lot and things kind customization more of into A I personalization, where interactivity. headed. peak So

with But So infinitely BuzzFeed interactive. AI, interactive. Quizzes were already now they're

first of interacting with our games Xx game time with Xx, we create expanded spend conversational was chatbot more and interfaces new And to static chatbot really than of so found love that would the where Xx, kinds you product piece Then could we we launched. a a that content. audience

allows to participate the AI us on then big the I Barbie call. imagery like assisted in And Dreamhouse a cultural that mentioned moments example earlier

make are and just worked can audience. we of products do products to really well our that our enhance new more those so more with vibrant, And our have things examples personal

where can making you a have the in of On bot food conversations to what Tasty, might see app for form cheer for particular cook bot up ingredient app your friend app, or tips you Botatouille Botatouille can three suggestions our have this the with we or your things our better. added what can kind fridge to kind -- you about with of or food you

for content would a a new of gotten And more Serta that engaging this like mentioned before, of experiences of some codevelop tool, like interactive you on and distribute traditional this types bought how to launched compared more and still to this kind I interactive and bakery find cakes, can sort advertisers a Complex the seen who site. us content network. And excited interacting paid pretty make other of good kinds album it's have Sprite but dream launch figured and have of that out just about across this interactivity widely like food and them. way we've other brands make distributed build them with we've interpreting to creation search and our out with partners I scale feel It's have that we still to early.

cost about benefits. you asked And also

seeing So areas in terms is of cost workflow. in benefits, One we're the of big

are more using copilot an in-house to just turn to recently has efficient coding. RFPs, that a around sales to take developed match we use in tools set them allows a and started tool response them to that our and to their product our client. So team programmers be business The

case, what we a of brainstorm better want to XX and products around would with it's of recently, is creative would what of were in this have, which won it it good quality add the have turn even been one couple the the in then turned the lots it and matching and of of when is technology able day. not AI-assisted might we to and the we a we we that element weeks is dozens had to a response had for meetings teams than in And out hours process. around using the have work bring teams together client ordinarily, lots for, RFP required process sure and a example, all work, of bringing of In human make deal having this that of maybe for and

I And both more able create our than headed content road, just models it media. better them. it's tools where much and give we scalable in be long we're serve build a a are this that a think more curation success, more, building the you more are our is products early seeing where these efficient better more more we're creators, tools to a serve to at delight copilots us and those this lot more lot we media with of a feel and audience the and so because And people of we're amount the time have when AI also our and look can assisting having helping model is be traditional a that ways And output that and horizon of that to for other to there's examples. AI and few do of and our to that because longer find strongly more, is building make that superpowers by and enhance labor clients same efficiencies users but can

improvements the maybe go-to-market guys strategy, last that's changes guys following of across how Can provide business? trends? update sales you On. other moving And discussed in you are some reorganization the and or the quarter. cross-sell going an Any then that to impacts of you so the on Marcela, productivity terms on seeing

Thanks, Yes, Amita. sure.

or finalized organized a or may in that we this the restructuring that you the they was sales restructuring decided of way in at it announced recall, also April. As the in And time, reorganize to reorganization sales completed And were we team May. team.

meant and restructuring sales verticals. hundreds with And products clients two roadshows, a what team in teams organization representatives. mega and after with verticals, and five the engaged for reduction the services, of that, underlying right meeting the layers ad around of this sales team was nationwide So in that

well pipeline for far, -- half And to seeing as months. so momentum been and QX the audience positive clients the as the six has relative related five sales positive the response cycle, for in as And content. to it about we from are activity branded a back reminder takes increased

we as expect the still we future, of managing it example that So an while in earlier, reduced time use Jonah this through be are line. the with potentially AI gave will

impact in the probably reorganization QX. effects And the of and we latest seeing to start expect

that? financial you, for you time expectations have Great. for year shared outlook we Marcela. guys for you on one profitability question the final Felicia. adjusted have Thank guys in Do May, outlook, an had full Day, Investor EBITDA -- year. for at high the update on the And teens and Back you had full

how speak not your changed you then? or expectations can have Or to since

Sure.

last challenged very going saw in back with which revenue and we typical revenue lift a through would in that So QX, half compression specifically, year, being broadly into the line speaking, QX perspective. from had top seasonal we muted the year expect a

from terms return lift the into are in seasonality to QX compared normalized the today, seasonal lift expecting As to QX of it quarter-over-quarter relates of we as to revenue. we a muted when saw as XXXX

line a As other this drive through million at and to estate $X it will back guide expect non-headcount year. the midpoint for initiatives relates of in half of the to bottom savings OpEx we we improvement QX, EBITDA. And year-over-year on real drive adjusted continue cost additional to

you. Thank

everyone, you look many and speaking to of That's you, Thanks. Thank us the we with our today, right. joining for forward coming weeks. call. over All

for today's program. you today. thank gentlemen, participation your and This Ladies concludes

You disconnect. now may