BuzzFeed (NASDAQ:BZFD) Announces Quarterly Earnings Results

BuzzFeed (NASDAQ:BZFD) announced its quarterly earnings data on Tuesday. The company reported ($0.22) EPS for the quarter, missing the consensus estimate of ($0.14) by ($0.08), Zacks reports. BuzzFeed had a negative net margin of 35.83% and a negative return on equity of 112.22%. The business had revenue of $36.29 million for the quarter, compared to analyst estimates of $43.11 million.

Here are the key takeaways from BuzzFeed’s conference call:

• Second-quarter results deteriorated: Revenue fell 21.8% year over year to $36.3 million, adjusted EBITDA declined to negative $1.7 million from positive $2 million, and net loss widened to $11.8 million.
• Audience engagement remained under pressure, with quarterly time spent down 11% year over year to 62.3 million hours, although it improved by 1.7 million hours from the first quarter.
• Management is pursuing significant cost reductions: A workforce reduction of approximately 35% is expected to generate about $30 million in annualized savings, alongside further savings from office, professional-fee, travel, and hiring reductions.
• BuzzFeed paid down $20 million of its term loan, reducing the balance to $25 million and net debt to approximately $5 million as of June 30; the move is expected to save more than $2 million in annual interest expense.
• The company is repositioning itself as an AI-supported content platform and expanding monetization through a sales representation agreement with Allen Media Group, while targeting future growth in streaming, commerce, podcasts, sports, news, and live events.

BuzzFeed Price Performance

Shares of BZFD traded up $0.01 during mid-day trading on Thursday, reaching $1.12. 184,247 shares of the company’s stock were exchanged, compared to its average volume of 1,715,939. The company has a quick ratio of 0.78, a current ratio of 0.78 and a debt-to-equity ratio of 0.77. BuzzFeed has a 52-week low of $0.54 and a 52-week high of $2.21. The company has a market cap of $42.31 million, a price-to-earnings ratio of -0.72 and a beta of 3.78. The company has a 50-day simple moving average of $1.39 and a two-hundred day simple moving average of $1.06.

Insider Buying and Selling

In related news, Director Eric Gould purchased 33,000 shares of the stock in a transaction that occurred on Wednesday, June 17th. The stock was purchased at an average cost of $1.44 per share, for a total transaction of $47,520.00. Following the acquisition, the director owned 33,000 shares in the company, valued at approximately $47,520. This trade represents a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Terence Hill bought 20,833 shares of the firm’s stock in a transaction dated Wednesday, June 17th. The stock was purchased at an average price of $1.44 per share, with a total value of $29,999.52. Following the completion of the purchase, the director directly owned 20,833 shares of the company’s stock, valued at approximately $29,999.52. This trade represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have purchased 88,194 shares of company stock valued at $126,999. Corporate insiders own 15.60% of the company’s stock.

Institutional Investors Weigh In On BuzzFeed

Several institutional investors and hedge funds have recently made changes to their positions in BZFD. Panagora Asset Management Inc. increased its position in BuzzFeed by 60.8% in the fourth quarter. Panagora Asset Management Inc. now owns 107,460 shares of the company’s stock worth $100,000 after buying an additional 40,617 shares during the period. Shay Capital LLC grew its position in BuzzFeed by 115.1% in the 3rd quarter. Shay Capital LLC now owns 179,207 shares of the company’s stock worth $305,000 after purchasing an additional 95,879 shares during the last quarter. Vanguard Group Inc. raised its holdings in shares of BuzzFeed by 8.8% during the third quarter. Vanguard Group Inc. now owns 976,888 shares of the company’s stock valued at $1,661,000 after buying an additional 79,263 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of BuzzFeed by 35.8% during the second quarter. Geode Capital Management LLC now owns 253,768 shares of the company’s stock worth $508,000 after buying an additional 66,895 shares during the period. Finally, State Street Corp boosted its position in shares of BuzzFeed by 18.9% during the fourth quarter. State Street Corp now owns 96,328 shares of the company’s stock worth $90,000 after buying an additional 15,300 shares during the period. 37.64% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

BZFD has been the subject of several recent analyst reports. Wall Street Zen cut shares of BuzzFeed to a “strong sell” rating in a research report on Saturday, May 30th. Weiss Ratings raised BuzzFeed from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, May 20th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $1.00.

BuzzFeed Company Profile

BuzzFeed, Inc operates as a digital media and technology company specializing in news, entertainment, and social content. The company produces articles, videos and quizzes that target diverse audiences across web, mobile and social platforms. In addition to editorial content, BuzzFeed offers a suite of advertising solutions, including native advertising, branded content and programmatic display, designed to blend seamlessly with its editorial offerings and engage consumers at scale.

Founded in 2006 by Jonah Peretti and John S.