Q1 2024 BuzzFeed Inc Earnings Call Transcript
Key Points
- BuzzFeed Inc (BZFD) is leveraging AI to enhance user engagement and loyalty, with new features like AI image filters and chatbot games increasing direct audience interaction.
- The company has seen a 3% growth in direct traffic to BuzzFeed web and app properties from Q4, indicating a successful shift from reliance on third-party platforms to driving traffic to owned and operated sites.
- Programmatic advertising revenues across BuzzFeed and HuffPost websites and apps grew year-over-year for the third consecutive quarter, showcasing strength in BuzzFeed Inc (BZFD)'s largest and highest margin revenue streams.
- BuzzFeed Inc (BZFD) has established strong retail partnerships with major retailers like Amazon, Walmart, and Target, driving significant revenue through these relationships.
- The company has successfully implemented a cost savings plan, which is expected to yield approximately $23 million in annualized compensation cost savings, enhancing financial stability.
- Despite the growth in certain areas, overall revenue for Q1 2024 declined by 18% year-over-year, with advertising revenues down 22% due to ongoing pressure on direct sales channels and lower monetization on third-party platforms.
- US time spent on BuzzFeed Inc (BZFD)'s content as reported by Comscore declined 16% year-over-year, primarily due to ongoing declines in referral traffic from third-party platforms.
- Commerce and other revenues declined by 9% year-over-year, affected by less promotional spend by retailers and lower audience traffic compared to the previous year.
- The company reported adjusted EBITDA losses of $11.3 million for Q1, indicating ongoing financial challenges despite cost-saving measures.
- BuzzFeed Inc (BZFD) faces continued pressure on its direct sales channel and lower third-party platform monetization, which may impact future revenue growth.
Good day, and thank you for standing by. Welcome to the BuzzFeed Inc's first quarter 2024 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 today, Amita Tomkoria, Head of Investor Relations.
Hi, everyone, welcome to BuzzFeed Inc's first quarter 2024 earnings conference call. I'm Amita Tomkoria, Senior Vice President of Investor Relations. Joining me today, our CEO, Jonah Peretti and CFO, Matt Omer.
Before we get started, I would like to take this opportunity to remind you that our remarks today will include forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements.
Factors that could cause these results to differ materially are set forth in today's press release are 2023 annual report on Form 10-K and our Q1 2024 and quarterly report on Form 10-Q to be filed with the SEC. Any forward-looking statements that we make
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