BuzzFeed CEO Jonah Peretti
Spencer Pratt/Getty Images
After shutting down BuzzFeed News and laying off 15% of its employees, BuzzFeed relies on creators and AI to keep the site moving forward.
In its first earnings call since the job cuts were announced, CEO Jonah Peretti outlined the job cuts and changes made to the company, including cuts to budgets, real estate, vacant roles and other expenses. ) has led the company on the right path.
“We have reached an inflection point in digital media. Over the past few months, we have made significant strategic and organizational changes to position our business for long-term growth. It’s in our DNA, and we believe that leveraging creators and AI will unlock new opportunities across our portfolio of trusted brands, including Tasty, First we Feast, Complex, HuffPost, and BuzzFeed.”
In January, Peretti said BuzzFeed would begin embracing more “AI-inspired content” and that it would become “part of our core business” from March. It said it chose to “overinvest”, but “no big platform will provide the distribution or financial support needed to support premium, free journalism dedicated to social media.”
The company’s financial performance for the three months ended March 31 also shows that the company has been coping. BuzzFeed’s first quarter revenue was $67.2 million, down 27% year-over-year, with ad revenue down 30% and content revenue down 33%. Commerce and other revenue increased 6% to $11.3 million.
The company reported a net loss of $36.3 million, less than its net loss of $44.6 million in the first quarter of 2022. However, his adjusted EBITDA loss was $20.2 million, compared to his adjusted EBITDA loss of $16.8 million a year ago.
Hours spent remained relatively flat, declining 3% in the quarter to 109 million hours.
BuzzFeed said it expects second-quarter revenue of $76 million to $81 million and adjusted EBITDA of $0 to $4 million.
More coming.
