NEW YORK - BuzzFeed, Inc. (NASDAQ:BZFD) has announced a strategic shift towards high-margin revenue streams and owned and operated properties, following a challenging financial year in 2023. The digital media company reported a 26% decline in full-year revenues to $252.7 million compared to the previous year and a net loss from continuing operations of $60.3 million, an improvement over the $140.5 million loss in 2022.
The company's advertising and content revenues both fell by 31% year-over-year, while commerce and other revenues remained relatively stable. Despite the declines, BuzzFeed's CEO, Jonah Peretti, remains optimistic about the company's future, citing a focus on scalable, high-margin, and tech-led revenue streams.
BuzzFeed is leveraging AI tools to enhance user engagement on its platforms, aiming to build the defining media company for the AI era. The company's Q4 revenues of $75.7 million also declined by 26% compared to Q4 of 2022, with net income from continuing operations at $3.5 million, a significant improvement from the $60.7 million net loss in the same quarter of the previous year.
For the first quarter of 2024, BuzzFeed expects overall revenues to be 20% to 23% lower than the first quarter of 2023, with projected Adjusted EBITDA losses in the range of $10 to $12 million, which would be an improvement from the previous year.
The sale of Complex Networks, excluding the First We Feast brand, on February 21, 2024, is seen as an important milestone in BuzzFeed's strategy. This move is expected to significantly affect the company's operations and financial results. Time spent on BuzzFeed's content increased 3% year-over-year on owned and operated properties, while third-party platforms saw a 32% decline.
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