BuzzFeed, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance amid ongoing strategic adjustments. For the third quarter, total revenue reached $64.3 million, a 7% increase from $60.0 million in the same period of 2023. However, for the nine months ended September 30, 2024, revenue declined to $156.0 million, down 12% from $177.0 million in the prior year.
The company's advertising revenue for the third quarter was $26.1 million, a slight decrease from $26.9 million in 2023, while commerce and other revenue surged by 45% to $20.9 million, up from $14.4 million. For the nine-month period, advertising revenue fell by 15% to $70.3 million, while commerce and other revenue increased by 17% to $42.9 million.
BuzzFeed's total costs and expenses for the third quarter decreased to $60.7 million from $66.7 million in the previous year, contributing to a net income from continuing operations of $2.0 million, a significant improvement from a loss of $12.0 million in Q3 2023. For the nine months, the net loss from continuing operations narrowed to $31.1 million from $63.9 million in the prior year.
The company has been actively restructuring, announcing a 16% workforce reduction in February 2024, which resulted in approximately $2.9 million in restructuring costs for the nine months ended September 30, 2024. This follows a previous 15% workforce reduction in April 2023, which incurred $6.8 million in restructuring costs.
BuzzFeed's financial position showed a cash increase, with cash and cash equivalents rising to $53.7 million as of September 30, 2024, compared to $35.6 million at the end of 2023. However, the company reported an accumulated deficit of $652.9 million and outstanding unsecured convertible notes totaling $118.8 million, raising concerns about its ability to meet upcoming repayment obligations.
Strategically, BuzzFeed disposed of its Complex Networks assets for $108.6 million in February 2024, a move deemed a significant shift in its operations. The company is exploring options to restructure its outstanding debt and optimize its balance sheet, although it has not secured additional outside capital as of the reporting date.
Overall, while BuzzFeed has made strides in reducing losses and increasing certain revenue streams, it continues to face challenges related to debt management and market conditions, which may impact its future performance.
About BuzzFeed, Inc.
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