BuzzFeed (BZFD) 2 Nov 232023 Q3 Earnings call transcript

Good day, and thank you for standing by. Welcome to the BuzzFeed, Inc.

Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.I would now like to hand the conference over to your speaker, Amita Tomkoria, Senior Vice President of Investor Relations.

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

adjusted this differ today's Joining these this me us events.During update get these new today's non-GAAP is contemplated from XX-K, Investor allow operational and earnings Form similar Founder to remind press along forward-looking as call future the and The assumptions Factors in our like today EBITDA Please quarterly statements. budgets pass are letter.And establish these of statements. Form website on performance take filed operational for by margin we you CFO, to of results We Marcela Peretti; our release, to our useful GAAP to today's Jonah. forth and now could our call reconciliation develop our management. in margin. investor materially today, goals may on by no today relevant release EBITDA XXXX result investors press view that I'll of Felicia present on obligation these forward-looking and manner GAAP and to the to Martin; measures Relations XX-Q that President, measures refer adjusted Actual investors a we annual are measures, method information statements reports are to undertake our to our report are for the managing find with our forward-looking DellaFortuna.Before will in Form to Any over opportunity release. because results based press including our of performance set those we this business. or started, XX-Q, included information a report to that tomorrow. QX on and QX adjusted and quarterly non-GAAP they remarks adjusted and financial non-GAAP to business use would and as to I EBITDA both measure cause allows we be financial call, of to QX and strength EBITDA statements and CEO, to on believe include Jonah used materially in differ make A

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

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you, afternoon, everyone. Thank Jonah, and good

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Thank you, Marcela.

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been like via that to now would I the web. submitted the to questions answer call Certainly. back Amita have to turn

Right.

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

you. So with we'll right maybe go and starting Jonah, ahead jump in.

and of So from or trajectory platforms monetizing this content? to help how frame We've make can major seen just trickle that short-form short-form down in opportunity a Meta us in but you strides content content, terms revenue BuzzFeed? perspective, does YouTube like the

Yes.

Premier. has So audience with one the videos in where was we're relationships Facebook.We everyone monetize these longer to secure popular on that YouTube, and hit content are video the in was We've YouTube set around the ability. dynamic And vertical to this in with environment match to and have results harder form And major content share the short-form competitive like share YouTube own has platforms by adapt less monetize also that newer working and taken off monetization to shorter major that short-form. beginning to platforms. platforms we're publishers, formats. terms their of been them, of they've -- really monetization than the another the traditionally slow especially And with competitive and TikTok, marketplace. great TikTok which competition steps both this shift program are of Shorts share also monetization it AI Pulse the more in to been and but in willing to to because and encouraged part

participate is that we and our so our create areas and packaging we've to as products resources audiences, have for of one the directly. direct up continue to that's And strength platforms having selling with on of the to we of we're -- video and one Specifically, monetizing introduce formats marketers. can scale relationships the advertiser video.And with products fastest-growing these in kind also for so of realigned growth vertical we AI focus advertisers this

still much are seeing we're consumers sort see scrolling get the discussed, out of kind and of be third-party sort short-form the content and content of the sometimes on or platforms the video it's traffic of we we're content around that of like then And across strategy. But chatbot on have each also more see more content growth getting work initiatives to media offset companies having time for to digital drive of out spending do we bit of the spend websites to strong some time like the combat that vertical scale our the short-form we those viewership to a of it our traction much performance. ADHD we initiatives. take can algorithmically-promoted with interest And HuffPost impact of you're endless content operated and to they apps new and we reflected more where platforms. and can a to validation terms a BuzzFeed monetization pressures scrolling behavior from and these the directly content, are AI whether monetization kinds site -- piece our of other with games working new And real where these to traffic on experiencing they creator of apps, so ramp As owned and clients seeing and our marketplace in and like product unprecedented in financial for page engagement the of will BuzzFeed strength. lot deeper of shifts AI consumers.And the are growth with in scale are in offerings having up time to front challenges where and an AI-powered

A is And progressing? Great. on advertising. maybe partners materiality why Amazon of speak this couple BuzzFeed? just or Amazon of products, monetization? monetization. its sponsored its BuzzFeed I'm of potential partnership of perspective, the you curious announced for from specifically ad in And ago, one can How And to as your one just terms months sort third-party choose did more

Sure.

partner trusted a as advertising Amazon-sponsored selected product be initiative. to thrilled we're for off, first So

lot the in the reach. so GMV is content.And really us why our choose engaged, of Walmart as it parties. through shopping Just us very our content a and fully Target we it into just and and have to shopping relates for to real-world still model new discover selected for tap affiliate that to with announced And driving and commerce early highly consumer They track our motivated a from relationship have conversion. affiliate things speaks for to record to them high partner our drive business driving reap both our this this a it's meaningful retailers strength are of Amazon transactions. benefits of those long-standing and a And that audience to the to our with in editorial many Wayfair And audience August, engagement to transact. largest and for scale on audiences willingness also

I think to well plays advertising And just partnerships. and so to that really but commerce, it advertising not when also new comes

on Marcela, maybe moving to you.

looking between XXXX, relationship next of we of and the should In and sort relationship into just revenue think growth growth? between into year terms cost growth, growth how the about cost revenue

you, for question. the Amita, Thank

So challenges, as I the we ongoing explained XXXX. of dynamics an revenue, operating are repeat media in as it's terms fact going for digital unfold unprecedented are with has that want macro how and in environment really predict to to the Jonah to well, in hard

and format websites site. improving we driving we scaling AI on and what our and can so it operated And control directly on execution very product are that focused and is audience traffic to apps, owned our

previous of actions. cost And days. as environment to to XXXX a these digital significantly reflects So these us leaner a guidance that And monetization declines that previous demand cost XXXX challenges year weaker operating XXXX the years steps enter traffic have full reflects many meet and several with in so, and our the the facing those our in and QX and have of monetization of marketers.And initiatives perspective, we are that from and we expense to are cost structure. we we taken sources a in in spend calls, earnings cash working open doing in new reduce we up structure year-over-year our with peers benefits are and took much this positioning and talked

you the discussed maybe in terms has of to some that you Marcela a back as back, So landscape you, step view, discussed can that on synergies from capture thoughts on call combined revenue your just of dynamics business portfolio still to latest the revenue platform that? of to sort positioned earlier, Jonah, the take the well share the as or of is in kind brand your

brand. market scale new overall.And and that with would of will that that I to I building sense consumers and and a brand types hey, of brand. say, the I and I think certainly and And now. like say are broad from now right differentiated really media assets in different like know know in opportunities, that brands will felt the advertisers. a demographics, that that lot love what the the to heard to we have I of ecosystem by most a Each there's resonates we're right awareness that open widely, is from it's love companies to people get know depending range range brand being grow and resonate has build I of And the options industry. and plug us really separates in platform challenges in voice that distinct we've always mean, allows HuffPost changes marketplace And IP. both traffic. And audiences we build have and wide that that already make love that across is Yes. a have I strong and a many with challenging what digital to the them really I've makes business for brand. that to that hard built do brand. us on of a profitable thing and brands our this, that that very consumers

and brands in feel fortunate value to company we as very as revenue even opportunities a strategic lot our that these we market. drive so tough part from a brands of as have there's that And well those of

of trends of can position discussed sort you sales share you the and the would liquidity, So access liquidity there for and liquidity is anything -- given on other the But asset to the of is can to it that cash maybe this. each company, company you that or considering on elaborate the how sort current to of options of the more revenue just there? say or you sort call, fair additional Marcela, pivot X to is

Yes, sure. the Thank you again. for question

let So liquidity. address first me

to the cycle And and this to used on from continue us, year-to-date million we us regards Los our cash, one-time our payment.And we realize have a we continue we million X that a traffic restructuring sales that these and long. talked in started And in our approximately a laser-focused from are centers So reduce on basis, trying at actually already full payments clients, bit payments QX, But the program position.And the in of million now look expect this and estate and to and some well behind in operating is direct to little million. it's cost well, about we cash restructuring revenues, in basis. of approximately restructuring the further earlier [ we of sales we with cash liquidity the on further last with of equivalents we AI quarter-over-quarter I structure to $X said challenges inclusive have ways real operating quarter have optimize creator we monetization in the attracting have that to $X organization the million, the as in consolidation additionally, cash improving the will reduction approximately -- strategy. mentioned of end quarter-over-quarter And are looking as $X.X with drive of expenses. discussed benefit of $XX of and as ended our ad be the are in ongoing quarter, pretty for an we restructuring quarter And realignment as higher in QX go-to-market interest liquidity we the our to combating to see footprint and completed help further Angeles cash that dollars taking so Jonah one-time overall is ] the about and that restructuring despite think earlier. always And months, products days. which $XX shoots enacted that last green terms we

All right.

your for have touch one bottom-line slightly expectations? Felicia, shared guidance May. the Day we based guidance, with the back last question. time on it Investor below to think adjusted profit to like on maybe had has What full expecting changed guidance, you're you QX now in I EBITDA year looks since respect

audience further platforms major have declined continue own a impact across competition our they this amid So brands. from their portfolio as audience all monetize Jonah has direct as on content had discussed, of share. ability to the the intense referrals to traffic of our And for formats prioritize

as in advertising the normalized And return vertical we've seasonality to through video, back we've easing headwinds consumption comps. impacted a the audience more across as macro year, integration these although continued our as despite face efforts. we the Additionally, as market, back seemed trends well to initially to moved half, half result, have had

benefit our this despite this and assumes QX However, actions of pressure year. And deliver ago on improvements expense guidance announce versus we top-line were year we the operating quarter. to able QX cost revenues, the full the earlier bottom-line did entering to the versus QX, in

ago So the QX EBITDA we do year deliver adjusted and expect year levels. full to above

you concludes today's call. And for this participating. conference Thank

now disconnect. may You