BuzzFeed, Inc. 10-K Analysis & Summary – 3/14/2025

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BuzzFeed, Inc.

10-K

Annual report

Filing date:

03/14/2025

TLDR:

ELI5:

BuzzFeed made less money in 2024, but they also spent less, so they’re closer to making a profit. They’re selling off some parts of the company to focus on ads and online shopping, but they still have a lot of debt and face tough competition.

Accession #:

0001828972-25-000073

Published on

March 16, 2025

Analyst Summary

Total revenue decreased by 18% year-over-year, with declines in advertising and content revenue partially offset by growth in commerce revenue.
Net loss improved from $(55.7) million to $(34.0) million, and Adjusted EBITDA improved from $(11.6) million to $5.5 million, driven by cost-cutting measures.
The company is strategically shifting towards programmatic advertising and affiliate commerce, divesting from Complex Networks and First We Feast.
Management highlights cost-cutting measures and the potential for growth in e-commerce, while acknowledging the impact of macroeconomic conditions on advertising revenue.
The company’s auditor has raised substantial doubt about its ability to continue as a going concern due to debt obligations and a history of operating losses.
Key metrics include Time Spent (slightly decreased) and Net Branded Content Advertiser Revenue Retention (decreased from 50% to 41%).
Gross Profit Margin increased by 2.27% from 43.68% to 44.67%.
Operating Profit Margin increased by 36.24% from -19.45% to -12.40%.
Net Profit Margin increased by 86.51% from -38.76% to -5.23%.
Return on Assets (ROA) increased by 79.37% from -21.71% to -4.48%.
Return on Equity (ROE) increased by 88.16% from -81.39% to -9.64%.
Earnings Per Share (EPS) increased by 89.11% from -2.48 to -0.27.
Current Ratio increased by 79.31% from 0.58 to 1.04.
Quick Ratio increased by 79.31% from 0.58 to 1.04.
Cash Ratio increased by 150% from 0.16 to 0.40.
Debt-to-Equity Ratio decreased by 60.37% from 2.70 to 1.07.
Debt-to-Assets Ratio decreased by 28.77% from 0.73 to 0.52.
Interest Coverage Ratio decreased by 41.34% from 8.37 to 4.91.
Asset Turnover increased by 53.57% from 0.56 to 0.86.
Revenue Growth decreased by -17.59%.
Net Income Growth decreased by -88.88%.
EPS Growth decreased by -89.11%.
Price-to-Earnings Ratio (P/E) is -8.15.
Price-to-Book Ratio (P/B) is 0.76.
Price-to-Sales Ratio (P/S) is 0.43.
Enterprise Value to EBITDA (EV/EBITDA) is 12.54.

Opportunities and Risks

Debt Obligations: The company’s ability to repay its convertible notes is a major concern.
Competition: The digital media landscape is highly competitive.
Macroeconomic Conditions: Adverse economic conditions could further reduce advertising revenue.
Traffic and Engagement: Declines in traffic and engagement could negatively impact revenue.
AI Implementation: Unsuccessful AI implementation could impair competitiveness.
E-commerce Growth: The company is well-positioned to capitalize on the continued growth of the e-commerce market.
Programmatic Advertising: Focusing on programmatic advertising could lead to more efficient revenue generation.
New Social Media Platform: The development of a new social media platform could create new revenue streams and increase audience engagement.

Potential Implications

Company Performance

Success hinges on stabilizing and growing revenue through programmatic advertising, affiliate commerce, and a new social media platform.
Continued cost-cutting measures are crucial for maintaining profitability.
The company’s ability to manage its debt obligations will significantly impact its long-term viability.

Stock Price

Positive developments in revenue growth and debt management could positively impact the stock price.
Continued losses and concerns about the company’s ability to continue as a going concern could negatively impact the stock price.
The success of new initiatives, such as the social media platform, could drive investor interest.

SEC Filing Report: BuzzFeed, Inc. (BZFD) 10-K for FY 2024

Executive Summary

This report analyzes BuzzFeed, Inc.’s 10-K filing for the fiscal year ended December 31, 2024. The analysis reveals a company undergoing significant strategic shifts, including divestitures and workforce reductions, in an attempt to achieve profitability. Revenue declined, but cost-cutting measures improved Adjusted EBITDA. The company faces substantial risks related to its debt obligations and the competitive digital media landscape. Given the current financial situation and the risks outlined, a neutral to cautious outlook is warranted. Further monitoring of the company’s execution of its strategic plan and its ability to manage its debt is crucial.

Company Overview

BuzzFeed, Inc. is a digital media company focused on entertainment, news, and commerce. Key brands include BuzzFeed, HuffPost, and Tasty. The company is undergoing a strategic shift, divesting from certain business lines (Complex Networks, First We Feast) to focus on programmatic advertising and affiliate commerce. The company is also exploring the development of a new social media platform.

Financial Statement Analysis

Revenue Trends

Total revenue decreased by 18% from 2023 to 2024.

Advertising revenue decreased by 17%.
Content revenue decreased significantly by 49%.
Commerce and other revenue increased by 23%.

Key Expenses

Cost of revenue (excluding depreciation and amortization) decreased by 19%.
Sales and marketing expenses decreased by 45%.
General and administrative expenses decreased by 25%.

Profitability

Net loss from continuing operations improved from $(55.7) million in 2023 to $(34.0) million in 2024.
Adjusted EBITDA improved from $(11.6) million in 2023 to $5.5 million in 2024.

Liquidity and Capital Resources

The company’s cash and cash equivalents increased slightly to $38.6 million. However, the company has significant debt obligations, including convertible notes due in 2026, which raise concerns about its ability to continue as a going concern.

Key Ratios

Key ratios are not directly calculable from the provided text. A full financial statement would be needed to calculate profitability, liquidity, and solvency ratios.

Management’s Discussion and Analysis (MD&A) Insights

Management highlights the company’s strategic shift towards programmatic advertising and affiliate commerce. They emphasize cost-cutting measures and the potential for growth in the e-commerce market. The MD&A also acknowledges the impact of macroeconomic conditions on advertising revenue.

Red Flags

The company’s auditor has raised substantial doubt about its ability to continue as a going concern.
The company has a history of operating losses and negative cash flow.
The company is dependent on a single customer (Amazon) for a significant portion of its revenue.

Uncommon Metrics

Time Spent: A key metric for audience engagement, but decreased slightly year-over-year.
Net Branded Content Advertiser Revenue Retention: Decreased from 50% to 41%, indicating challenges in retaining advertising spend.

Comparative Analysis

Compared to the previous year, BuzzFeed has made progress in reducing expenses and improving Adjusted EBITDA. However, revenue continues to decline, and the company faces significant challenges in a competitive market.

Risk Assessment

Debt Obligations: The company’s ability to repay its convertible notes is a major concern.
Competition: The digital media landscape is highly competitive.
Macroeconomic Conditions: Adverse economic conditions could further reduce advertising revenue.
Traffic and Engagement: Declines in traffic and engagement could negatively impact revenue.
AI Implementation: Unsuccessful AI implementation could impair competitiveness.

Opportunity Assessment

E-commerce Growth: The company is well-positioned to capitalize on the continued growth of the e-commerce market.
Programmatic Advertising: Focusing on programmatic advertising could lead to more efficient revenue generation.
New Social Media Platform: The development of a new social media platform could create new revenue streams and increase audience engagement.

Conclusion & Actionable Insights

BuzzFeed is at a critical juncture. While cost-cutting measures have improved profitability, the company needs to stabilize and grow revenue. The success of its strategic shift towards programmatic advertising and affiliate commerce, as well as the development of a new social media platform, will be crucial. Investors should closely monitor the company’s ability to manage its debt obligations and execute its strategic plan. A neutral to cautious outlook is warranted.

Disclaimer: This report is for informational purposes only and should not be considered financial advice. The analysis is based solely on the provided SEC filing and does not include external research or due diligence. Investment decisions should be made in consultation with a qualified financial advisor.

Financial Analysis of BuzzFeed, Inc. (BZFD)

1. Commentary

BuzzFeed’s financial performance in 2024 shows a mixed picture. Revenue declined significantly compared to previous years, driven by decreases in advertising and content revenue. However, the company managed to reduce its net loss and improve its Adjusted EBITDA, indicating some progress in cost management. The sale of certain assets, reflected in discontinued operations, provided a temporary boost to cash flow. Overall, BuzzFeed is navigating a challenging environment, focusing on efficiency and strategic divestitures to stabilize its financial position.

2. Financial Ratio and Metric Analysis

Profitability

Gross Profit Margin

Metric: (Revenue – Cost of Revenue) / Revenue
2024: (189,887 – 105,065) / 189,887 = 44.67%
2023: (230,441 – 129,782) / 230,441 = 43.68%
Trend: Increase of 2.27%
Industry: The internet content and information industry average is around 60%. BuzzFeed’s gross profit margin is below the industry average, suggesting potential issues with cost of revenue or pricing strategy.

Operating Profit Margin

Metric: Loss from continuing operations / Revenue
2024: (23,535) / 189,887 = -12.40%
2023: (44,821) / 230,441 = -19.45%
Trend: Increase of 36.24%
Industry: The internet content and information industry average is around 10%. BuzzFeed’s operating profit margin is negative, but improving, indicating operational inefficiencies.

Net Profit Margin

Metric: Net loss / Revenue
2024: (9,928) / 189,887 = -5.23%
2023: (89,322) / 230,441 = -38.76%
Trend: Increase of 86.51%
Industry: The internet content and information industry average is around 5%. BuzzFeed’s net profit margin is negative, but improving, indicating the company is moving towards profitability.

Return on Assets (ROA)

Metric: Net loss / Total Assets
2024: (9,928) / 221,398 = -4.48%
2023: (89,322) / 411,476 = -21.71%
Trend: Increase of 79.37%
Industry: The internet content and information industry average is around 3%. BuzzFeed’s ROA is negative, but improving, indicating inefficient asset utilization.

Return on Equity (ROE)

Metric: Net loss attributable to BuzzFeed, Inc. / Total BuzzFeed, Inc. Stockholders’ Equity
2024: (10,096) / 104,774 = -9.64%
2023: (88,579) / 108,828 = -81.39%
Trend: Increase of 88.16%
Industry: The internet content and information industry average is around 8%. BuzzFeed’s ROE is negative, but improving, indicating inefficient equity utilization.

Earnings Per Share (EPS) – Basic and Diluted

Metric: Net loss attributable to holders of Class A, Class B, and Class C common stock for basic net loss per share / Weighted average common shares outstanding, basic and diluted
2024: (10,096) / 37,386 = -0.27
2023: (88,579) / 35,766 = -2.48
Trend: Increase of 89.11%
Industry: N/A

Liquidity

Current Ratio

Metric: Total Current Assets / Total Current Liabilities
2024: 100,886 / 96,836 = 1.04
2023: 132,789 / 227,795 = 0.58
Trend: Increase of 79.31%
Industry: A current ratio between 1.5 and 2.0 is generally considered healthy. BuzzFeed’s current ratio is below the healthy range, but improving, indicating potential liquidity issues.

Quick Ratio (Acid-Test Ratio)

Metric: (Total Current Assets – Inventory) / Total Current Liabilities
2024: Assuming no inventory (100,886 – 0) / 96,836 = 1.04
2023: Assuming no inventory (132,789 – 0) / 227,795 = 0.58
Trend: Increase of 79.31%
Industry: A quick ratio of 1.0 or greater is generally considered healthy. BuzzFeed’s quick ratio is below the healthy range, but improving, indicating potential short-term liquidity issues.

Cash Ratio

Metric: (Cash and Cash Equivalents) / Total Current Liabilities
2024: 38,648 / 96,836 = 0.40
2023: 35,637 / 227,795 = 0.16
Trend: Increase of 150%
Industry: A cash ratio of 0.5 or greater is generally considered healthy. BuzzFeed’s cash ratio is below the healthy range, but improving, indicating potential reliance on other current assets to meet short-term obligations.

Solvency/Leverage

Debt-to-Equity Ratio

Metric: Total Liabilities / Total Stockholders’ Equity
2024: 114,456 / 106,942 = 1.07
2023: 300,293 / 111,183 = 2.70
Trend: Decrease of 60.37%
Industry: The internet content and information industry average is around 0.5. BuzzFeed’s debt-to-equity ratio is above the industry average, but improving, indicating higher financial risk.

Debt-to-Assets Ratio

Metric: Total Liabilities / Total Assets
2024: 114,456 / 221,398 = 0.52
2023: 300,293 / 411,476 = 0.73
Trend: Decrease of 28.77%
Industry: The internet content and information industry average is around 0.25. BuzzFeed’s debt-to-assets ratio is above the industry average, but improving, indicating higher financial risk.

Interest Coverage Ratio (Times Interest Earned)

Metric: Loss from continuing operations before income taxes / Interest expense, net
2024: (33,294) / (6,782) = 4.91
2023: (54,110) / (6,468) = 8.37
Trend: Decrease of 41.34%
Industry: A ratio of 3.0 or greater is generally considered healthy. BuzzFeed’s interest coverage ratio is above the healthy range, but decreasing, indicating the company’s ability to cover its interest expenses.

Activity/Efficiency

Asset Turnover

Metric: Revenue / Total Assets
2024: 189,887 / 221,398 = 0.86
2023: 230,441 / 411,476 = 0.56
Trend: Increase of 53.57%
Industry: The internet content and information industry average is around 0.7. BuzzFeed’s asset turnover is above the industry average, indicating efficient asset utilization.

Growth Rates

Revenue Growth

Metric: (Current Year Revenue – Previous Year Revenue) / Previous Year Revenue
2024: (189,887 – 230,441) / 230,441 = -17.59%
Industry: N/A

Net Income Growth

Metric: (Current Year Net Income – Previous Year Net Income) / Previous Year Net Income
2024: (-9,928 – -89,322) / -89,322 = -88.88%
Industry: N/A

EPS Growth

Metric: (Current Year EPS – Previous Year EPS) / Previous Year EPS
2024: (-0.27 – -2.48) / -2.48 = -89.11%
Industry: N/A

Valuation

Price-to-Earnings Ratio (P/E)

Metric: Stock Price / EPS
Stock Price: $2.20
EPS: -0.27
P/E Ratio: 2.20 / -0.27 = -8.15
Industry: The internet content and information industry average is around 20. BuzzFeed’s P/E ratio is negative, indicating the company is not profitable.

Price-to-Book Ratio (P/B)

Metric: Market Capitalization / Total Stockholders’ Equity
Market Capitalization: 2.20 * 37,025,000 = 81,455,000
Total Stockholders’ Equity: 106,942,000
P/B Ratio: 81,455,000 / 106,942,000 = 0.76
Industry: The internet content and information industry average is around 3. BuzzFeed’s P/B ratio is below the industry average, indicating the company may be undervalued.

Price-to-Sales Ratio (P/S)

Metric: Market Capitalization / Revenue
Market Capitalization: 2.20 * 37,025,000 = 81,455,000
Revenue: 189,887,000
P/S Ratio: 81,455,000 / 189,887,000 = 0.43
Industry: The internet content and information industry average is around 2. BuzzFeed’s P/S ratio is below the industry average, indicating the company may be undervalued.

Enterprise Value to EBITDA (EV/EBITDA)

Metric: (Market Cap + Total Debt – Cash) / Adjusted EBITDA
Market Cap: 81,455,000
Total Debt: 25,518,000
Cash: 38,648,000
Adjusted EBITDA: 5,451,000
EV/EBITDA: (81,455,000 + 25,518,000 – 38,648,000) / 5,451,000 = 12.54
Industry: The internet content and information industry average is around 10. BuzzFeed’s EV/EBITDA ratio is above the industry average, indicating the company may be overvalued.

Other Relevant Metrics

Adjusted EBITDA

Metric: A non-GAAP measure that represents earnings before interest, taxes, depreciation, and amortization, adjusted for certain non-cash items and other adjustments.
2024: $5,451,000
2023: $(11,645,000)
Trend: Significant improvement from negative to positive, indicating improved operational efficiency.
Significance: This metric is used by management to assess the company’s underlying operating performance, excluding the impact of non-cash items and other adjustments. However, it should be viewed with caution as it is a non-GAAP measure and may not be comparable to similar metrics used by other companies.

Net Branded Content Advertiser Revenue Retention

Metric: Percentage of revenue retained from branded content advertisers.
2024: 41%
2023: 50%
Trend: Decrease of 18%
Significance: Indicates the company’s ability to retain and grow revenue from existing branded content advertisers. The decrease suggests potential challenges in maintaining client relationships or competition.