BuzzFeed's third quarter 2023 advertising revenue down 35% year-over-year

BuzzFeed, Inc. (NASDAQ: BZFD), a leading digital media company, this week reported financial results for the third quarter ended September 30, 2023. BuzzFeed's third quarter 2023 financial results were below expectations, with revenue down 29% year-over-year and advertising revenue down 35% year-over-year.

This decline is in line with the ongoing challenges facing the digital media industry, which is grappling with changes to consumer behavior, privacy regulations, and competition from the major tech platforms.

• Revenue: $73.3 million, down 29% year-over-year
• Advertising revenue: $32.6 million, down 35% year-over-year
• Content revenue: $26.2 million, down 32% year-over-year
• Commerce and other revenues: $14.5 million, down 3% year-over-year
• Net loss: $13.9 million, compared to a net loss of $27.0 million in the third quarter of 2022
• Adjusted EBITDA: $3.1 million, compared to an Adjusted EBITDA loss of $2.4 million in the third quarter of 2022
• Cash and cash equivalents: $42 million

“We’ve taken significant steps to combat the ongoing traffic and monetization challenges facing digital media companies,” said Jonah Peretti, BuzzFeed Founder and CEO. “We continue to be laser-focused on driving traffic directly to our owned and operated websites and apps in order to reduce our dependence on the major tech platforms for audience traffic, improve monetization and pivot our business to adjust to the new realities of an altered digital media landscape.”

“Across our portfolio of premium brands and IP, we reach millions of young people every day who visit us directly to enjoy our content,” Peretti continued. “And, with the strategic and organizational changes we executed earlier this year, we are well-positioned to drive a year-over-year improvement in Adjusted EBITDA1 in Q4 and for the full year. Additionally, we are continuing to protect our liquidity position as we work toward building a sustainable long-term model for content creation.”

BuzzFeed provided the following financial outlook for the fourth quarter of 2023:

• Revenue: $99 to $110 million
• Adjusted EBITDA: $20 to $30 million