BuzzFeed (NASDAQ:BZFD) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

BuzzFeed (NASDAQ:BZFD) issued its quarterly earnings results on Tuesday. The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.14) by ($0.08), Zacks reports. BuzzFeed had a negative return on equity of 97.22% and a negative net margin of 33.26%.

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

BZFD traded up $0.04 during midday trading on Tuesday, reaching $1.22. 891,912 shares of the company’s stock were exchanged, compared to its average volume of 1,734,508. BuzzFeed has a 1-year low of $0.54 and a 1-year high of $2.21. The stock has a market capitalization of $45.92 million, a PE ratio of -0.76 and a beta of 3.78. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.78 and a quick ratio of 0.78. The business’s 50-day moving average price is $1.42 and its 200 day moving average price is $1.06.

Wall Street Analyst Weigh In

Several analysts have recently commented on BZFD shares. Weiss Ratings raised BuzzFeed from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, May 20th. Wall Street Zen downgraded BuzzFeed to a “strong sell” rating in a report on Saturday, May 30th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Reduce” and a consensus price target of $1.00.

Insider Buying and Selling

In related news, Director Terence Hill purchased 20,833 shares of the business’s stock in a transaction dated Wednesday, June 17th. The stock was bought at an average cost of $1.44 per share, with a total value of $29,999.52. Following the completion of the acquisition, the director directly owned 20,833 shares in the company, valued at $29,999.52. The trade was a ∞ increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Eric Gould acquired 33,000 shares of BuzzFeed stock in a transaction dated Wednesday, June 17th. The stock was bought at an average price of $1.44 per share, for a total transaction of $47,520.00. Following the completion of the transaction, the director directly owned 33,000 shares of the company’s stock, valued at approximately $47,520. This represents a ∞ increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last ninety days, insiders purchased 88,194 shares of company stock worth $126,999. 15.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Shay Capital LLC raised its position in shares of BuzzFeed by 115.1% in the third quarter. Shay Capital LLC now owns 179,207 shares of the company’s stock valued at $305,000 after buying an additional 95,879 shares during the last quarter. Vanguard Group Inc. grew its stake in BuzzFeed by 8.8% in the 3rd quarter. Vanguard Group Inc. now owns 976,888 shares of the company’s stock worth $1,661,000 after acquiring an additional 79,263 shares during the period. Geode Capital Management LLC raised its holdings in BuzzFeed by 35.8% in the 2nd quarter. Geode Capital Management LLC now owns 253,768 shares of the company’s stock valued at $508,000 after acquiring an additional 66,895 shares during the last quarter. Panagora Asset Management Inc. lifted its stake in shares of BuzzFeed by 60.8% during the 4th quarter. Panagora Asset Management Inc. now owns 107,460 shares of the company’s stock worth $100,000 after purchasing an additional 40,617 shares during the period. Finally, Squarepoint Ops LLC boosted its holdings in shares of BuzzFeed by 259.0% during the third quarter. Squarepoint Ops LLC now owns 42,698 shares of the company’s stock worth $73,000 after purchasing an additional 30,803 shares during the last quarter. Institutional investors and hedge funds own 37.64% of the company’s stock.

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.