BuzzFeed shares soar 22% on improved Q2 earnings by Investing.com

NEW YORK – BuzzFeed, Inc. (NASDAQ:BZFD) reported a narrower second-quarter loss on Monday, sending its shares up 22% in after-hours trading. The digital media company’s improved performance was driven by growth in programmatic advertising and affiliate commerce revenue, despite an overall decline in revenue.

BuzzFeed reported a net loss from continuing operations of -$6.5 million, or -$0.18 per share, for the quarter ended June 30, 2024. This marks a significant improvement from the reported loss of -$22.5 million in the same period last year. Revenue fell 24% year over year to $46.9 million, in line with the company’s previous guidance.

Despite the overall revenue decline, BuzzFeed saw growth in two of its highest-margin revenue streams. Programmatic advertising revenue increased 3% year-over-year to $16.0 million, while affiliate commerce revenue increased 9% year-over-year to $10.4 million.

“Our strong performance in Q2 marks an inflection point that we’ve been working toward for the past two years,” said Jonah Peretti, founder and CEO of BuzzFeed. “We’re starting to see the benefits of our investment in a differentiated technology platform that allows us to accelerate AI product development, make our sites and apps more interactive and personalized, and increase the amount of content our team and audience can create using AI- power tools.”

The company’s focus on AI-powered engagement seems to be paying off. BuzzFeed was the only digital media company in its competitive set to increase time spent in audience in Q2 compared to Q1, according to Comscore data cited in the earnings release.

Looking ahead, BuzzFeed expects third-quarter revenue of $58 million to $63 million, representing a range of 3% lower to 5% higher than the third quarter of 2023. The company also anticipates a Adjusted EBITDA of $6 million to $11 million for Q3, roughly $8 million higher year-over-year at midpoint.

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