BuzzFeed, Inc. Makes Strategic & Organizational Changes to Improve Profitability After Challenging Q4 and Full Year 2023

Company Renews Focus on High-Margin Revenue Streams and Owned & Operated Properties and Strengthens Balance Sheet for 2024

Sale of Complex Marks an Important Milestone for BuzzFeed, Inc.

BuzzFeed, Inc.’s (“BuzzFeed” or the “Company”) (Nasdaq: BZFD) fourth quarter and full year (ended December 31, 2023) financial results were in line with its revised outlook shared in February, but fell short of its initial expectations. Looking ahead, following key strategic organizational changes, BuzzFeed is optimistic about 2024 with a commitment to high-margin revenue streams and a renewed focus on its owned and operated websites and apps.

“Three months into 2024, it’s clear BuzzFeed and digital media are at an inflection point,” said Jonah Peretti, BuzzFeed Founder & CEO. “We’ve restructured our business to focus on our scalable, high-margin, and tech-led revenue streams. We are leveraging AI tools to optimize our owned and operated platforms, accelerate innovation, and make our sites and apps more engaging, more personalized and more rewarding for all. Despite challenges over the past year, I’m optimistic about BuzzFeed's trajectory in 2024. I believe we have a tremendous opportunity in front of us to build the defining media company for the AI era.”

2023 Full Year Financial and Operational Highlights for Continuing Operations (excluding Complex)1

  • BuzzFeed delivered Full Year 2023 revenues of $252.7 million, declining 26% compared to 2022
    • Advertising revenue declined 31% year-over-year to $115.6 million
    • Content revenue declined 31% year-over-year to $83.6 million
    • Commerce and other revenues were relatively flat year-over-year at $53.4 million
  • Net loss from continuing operations was $60.3 million, compared to a net loss of $140.5 million in 2022
  • Adjusted EBITDA2 loss was $4.7 million, compared to Adjusted EBITDA of $0.3 million in 2022
  • In 2023, audience Time Spent3 with our content was 306 million hours. Time Spent on our owned and operated properties grew 3% year-over-year, while Time Spent with our content on third-party platforms declined 32% year-over-year
  • BuzzFeed ended the period with cash and cash equivalents of approximately $36 million
_________________________________

1The Company determined the assets of Complex Networks, excluding the First We Feast brand, met the classification for “held for sale.” Additionally, the Company concluded the disposal, which occurred on February 21, 2024, will represent a strategic shift that will have a major effect on our operations and financial results. As such, the historical financial results of Complex Networks have been reflected as discontinued operations in our consolidated financial statements. Amounts presented throughout this press release are on a continuing operations basis.

2Adjusted EBITDA is a non-GAAP financial measure. Please refer to “Non-GAAP Financial Measures” below for a description of how it is calculated and the tables at the back of this earnings release for a reconciliation of our GAAP and non-GAAP results.

3Excludes Complex Networks and Facebook; see definition of “Time Spent” below.

Fourth Quarter 2023 Financial and Operational Highlights for Continuing Operations (excluding Complex)1

  • BuzzFeed delivered Q4 revenues of $75.7 million, declining 26% compared to the fourth quarter of 2022, in line with the Company’s revised outlook shared in February
    • Advertising revenue declined 25% year-over-year to $31.9 million
    • Content revenue declined 34% year-over-year to $27.0 million
    • Commerce and other revenues declined 8% year-over-year to $16.7 million
  • Net income from continuing operations was $3.5 million, compared to a net loss of $60.7 million in the fourth quarter of 2022
  • Adjusted EBITDA2 was $15.1 million, compared to Adjusted EBITDA of $16.8 million in the fourth quarter of 2022, also in line with the Company’s February outlook,
  • Time Spent3 declined 12% year-over-year to 72 million hours, though we continue to outpace the competition
    • In Q4, audiences once again spent more time consuming our content than that of any other digital media company in our competitive set4

First Quarter 2024 Financial Outlook

  • We expect overall revenues in the range of $42 to $44 million, or 20% to 23% lower than first quarter 2023
  • We expect Adjusted EBITDA losses in the range of $10 to $12 million, an improvement of approximately $7 million year-over-year at the midpoint

These statements are forward-looking and actual results may differ materially as a result of many factors. Refer to “Forward-Looking Statements” below for information on factors that could cause our actual results to differ materially from these forward-looking statements.

Please see “Non-GAAP Financial Measures” below for a description of how Adjusted EBITDA is calculated. While Adjusted EBITDA is a non-GAAP financial measure, we have not provided guidance for the most directly comparable GAAP financial measure — net income (loss) from continuing operations — due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary to forecast such a measure. Accordingly, a reconciliation of non-GAAP guidance for Adjusted EBITDA to the corresponding GAAP measure is not available.

________________________________

4Source: Comscore Media Trend, A18+, December 2023; Comps include Condé Nast Digital, Vox Media, People, Bustle Digital Group, Dot Dash Meredith

Quarterly Conference Call

BuzzFeed’s management team will hold a conference call to discuss our fourth quarter and full year 2023 results today, March 25, at 5PM ET. The call will be available via webcast at investors.buzzfeed.com under the heading News and Events, and parties interested in participating must register in advance at the same location. Upon registration, all telephone participants will receive a confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. While it is not required, it is recommended you join 10 minutes prior to the event start time. A replay of the call will be made available at the same URL.

We have used, and intend to continue to use, the Investor Relations section of our website at investors.buzzfeed.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD.

Definitions

BuzzFeed reports revenues across three primary business lines: Advertising, Content and Commerce and other. The definition of “Time Spent” is also set forth below.

  • Advertising revenues are primarily generated from advertisers for ads distributed against our editorial and news content, including display, pre-roll and mid-roll video products sold directly to brands and also programmatically. We distribute these ad products across our owned and operated sites as well as third-party platforms, primarily YouTube and Apple News.



  • Content revenues are primarily generated from clients for custom assets, including both long-form and short-form content, from branded quizzes to Instagram takeovers to sponsored content and content licensing. Revenues for film and TV projects are also included here.



  • Commerce and other revenues consist primarily of affiliate commissions earned on transactions initiated from our editorial shopping content. Revenues from our product licensing businesses are also included here.



  • Time Spent captures the time audiences spend engaging with our content across our owned and operated sites, as well as YouTube and Apple News, as measured by Comscore. This metric excludes time spent with our content on platforms for which we have minimal advertising capabilities that contribute to our Advertising revenues, including Instagram, TikTok, Facebook, Snapchat and Twitter. There are inherent challenges in measuring the total actual number of hours spent with our content across all platforms; however, we consider the data reported by Comscore to represent industry-standard estimates of the time actually spent on our largest distribution platforms with our most significant monetization opportunities. Effective January 1, 2023, we exclude time spent on Facebook from our measure of Time Spent as our monetization strategy is increasingly focused on advertising on our owned and operated properties, and Facebook now contributes an immaterial amount of advertising revenue. Time Spent on Facebook, as reported by Facebook, was approximately 58 and 184 million hours for the years ended December 31, 2023 and 2022, respectively. Additionally, Time Spent presented above excludes time spent on Complex Networks, as Complex Networks is presented as a discontinued operation within our consolidated financial statements. Time Spent on Complex Networks, as reported by Comscore, was approximately 76 million and 126 million hours for the years ended December 31, 2023 and 2022, respectively. Time Spent on Complex Networks, as reported by Comscore, previously included Time Spent on First We Feast, as First We Feast was historically under the Complex Networks’ measurement portfolio of Comscore. However, the historical Time Spent on First We Feast cannot be reasonably bifurcated from Time Spent on Complex Networks. Accordingly, for comparability of Time Spent, we have excluded Time Spent on First We Feast from our measure of Time Spent for all periods presented above and for future reporting of Time Spent.

About BuzzFeed, Inc.

BuzzFeed, Inc. is home to the best of the Internet. Across pop culture, entertainment, shopping, food and news, our brands drive conversation and inspire what audiences watch, read, and buy now—and into the future. Born on the Internet in 2006, BuzzFeed is committed to making it better: providing trusted, quality, brand-safe news and entertainment to hundreds of millions of people; making content on the Internet more inclusive, empathetic, and creative; and inspiring our audience to live better lives.

Non-GAAP Financial Measures

Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures and represent key metrics used by management and our board of directors to measure the operational strength and performance of our business, to establish budgets, and to develop operational goals for managing our business. We define Adjusted EBITDA as net income (loss) from continuing operations, excluding the impact of net (loss) income attributable to noncontrolling interests, income tax provision (benefit), interest expense, net, other (income) expense, net, depreciation and amortization, stock-based compensation, change in fair value of warrant liabilities, change in fair value of derivative liability, restructuring costs, impairment expense, transaction-related costs, certain litigation costs, public company readiness costs, and other non-cash and non-recurring items that management believes are not indicative of ongoing operations. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the same period.

We believe Adjusted EBITDA and Adjusted EBITDA margin are relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by our management. There are limitations to the use of Adjusted EBITDA and Adjusted EBITDA margin and our Adjusted EBITDA and Adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.

Adjusted EBITDA and Adjusted EBITDA margin should not be considered a substitute for measures prepared in accordance with GAAP. Reconciliations of non-GAAP financial measures to the most directly comparable financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data.

Forward-Looking Statements

Certain statements in this press release may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Our forward-looking statements include, but are not limited to, statements regarding our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts (including our outlook for Q1 2024) or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “affect,” “anticipate,” “believe,” “can,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: (1) macroeconomic factors including: adverse economic conditions in the United States and globally, including the potential onset of recession; potential government shutdowns or failure to raise the U.S. federal debt ceiling; current global supply chain disruptions; the ongoing conflicts between Russia and Ukraine and between Israel and Hamas and any related sanctions and geopolitical tensions, and further escalation of trade tensions between the U.S. and China; the inflationary environment; and the competitive labor market; (2) developments relating to our competitors and the digital media industry, including overall demand of advertising in the markets in which we operate; (3) demand for our products and services or changes in traffic or engagement with our brands and content; (4) changes in the business and competitive environment in which we and our current and prospective partners and advertisers operate; (5) our future capital requirements, including, but not limited to, our ability to obtain additional capital in the future, to settle conversions of our outstanding convertible notes, repurchase the notes upon a fundamental change or repay the notes in cash at their maturity any restrictions imposed by, or commitments under, the indenture governing our unsecured notes or the facility governing any future indebtedness, and any restrictions on our ability to access our cash and cash equivalents; (6) developments in the law and government regulation, including, but not limited to, revised foreign content and ownership regulations, and the outcomes of legal proceedings, regulatory disputes or governmental investigations to which we are subject; (7) the benefits of our restructuring; (8) our success divesting of companies, assets or brands we sell or in integrating and supporting the companies we acquire; (9) technological developments including artificial intelligence; (10) our success in retaining or recruiting, or changes required in, officers, other key employees or directors; (11) use of content creators and on-camera talent and relationships with third parties managing certain of our branded operations outside of the United States; (12) the security of our information technology systems or data; (13) disruption in our service, or by our failure to timely and effectively scale and adapt our existing technology and infrastructure; (14) our ability to maintain the listing of our Class A common stock and warrants on The Nasdaq Stock Market LLC ; and (15) those factors described under the sections entitled “Risk Factors” in the Company’s annual and quarterly filings with the Securities and Exchange Commission.

Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. There may be additional risks that we consider immaterial or which are unknown. It is not possible to predict or identify all such risks. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

BUZZFEED, INC.

Financial Highlights

(Unaudited, dollars in thousands)

 
Three Months Ended December 31, Year Ended December 31,

 

2023

 

2022

 

% Change

 

2023

 

 

2022

 

% Change

Advertising

$

31,900

$

42,643

 

(25

)%

$

115,620

 

$

166,934

 

(31

)%

Content

 

27,036

 

40,910

 

(34

)%

 

83,642

 

 

121,541

 

(31

)%

Commerce and other

 

16,727

 

18,098

 

(8

)%

 

53,415

 

 

54,079

 

(1

)%

Total revenue

$

75,663

$

101,651

 

(26

)%

$

252,677

 

$

342,554

 

(26

)%

Income (loss) from continuing operations

$

7,750

$

(61,298

)

113

%

$

(39,824

)

$

(128,351

)

69

%

Net income (loss) from continuing operations

$

3,531

$

(60,685

)

106

%

$

(60,332

)

$

(140,483

)

57

%

Adjusted EBITDA

$

15,149

$

16,758

 

(10

)%

$

(4,743

)

$

318

 

NM

 

NM: Not Meaningful

BUZZFEED, INC.

Consolidated Balance Sheets

(Unaudited, dollars and shares in thousands, except per share amounts)

 
December 31,

2023
December 31,

2022
Assets
Current assets
Cash and cash equivalents

$

35,637

 

$

55,774

 

Accounts receivable (net of allowance for doubtful accounts of $1,424, and $1,879 as at December 31, 2023 and 2022)

 

75,692

 

 

116,460

 

Prepaid expenses and other current assets

 

21,460

 

 

26,373

 

Current assets of discontinued operations

 

-

 

 

-

 

Total current assets

 

132,789

 

 

198,607

 

Property and equipment, net

 

11,856

 

 

17,774

 

Right-of-use assets

 

46,715

 

 

66,581

 

Capitalized software costs, net

 

22,292

 

 

19,259

 

Intangible assets, net

 

26,665

 

 

31,038

 

Goodwill

 

57,562

 

 

57,562

 

Prepaid expenses and other assets

 

9,508

 

 

14,790

 

Noncurrent assets of discontinued operations

 

104,089

 

 

124,361

 

Total assets

$

411,476

 

$

529,972

 

 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable

$

46,378

 

$

29,329

 

Accrued expenses

 

15,515

 

 

26,357

 

Deferred revenue

 

1,895

 

 

8,836

 

Accrued compensation

 

12,970

 

 

31,052

 

Current lease liabilities

 

21,659

 

 

23,398

 

Current debt

 

124,977

 

 

-

 

Other current liabilities

 

4,401

 

 

3,900

 

Current liabilities of discontinued operations

 

-

 

 

-

 

Total current liabilities

 

227,795

 

 

122,872

 

Noncurrent lease liabilities

 

37,820

 

 

59,315

 

Debt

 

33,837

 

 

152,253

 

Derivative liability

 

-

 

 

180

 

Warrant liabilities

 

406

 

 

395

 

Other liabilities

 

435

 

 

403

 

Noncurrent liabilities of discontinued operations

 

-

 

 

-

 

Total liabilities

 

300,293

 

 

335,418

 

 
Commitments and contingencies
 
Stockholders’ equity
Class A Common stock, $0.0001 par value; 700,000 shares authorized; 140,138 and 126,387 shares issued and outstanding at December 31, 2023 and 2022, respectively

 

14

 

 

13

 

Class B Common stock, $0.0001 par value; 20,000 shares authorized; 5,474 and 6,678 shares issued and outstanding at December 31, 2023 and 2022, respectively

 

1

 

 

1

 

Class C Common stock, $0.0001 par value; 10,000 shares authorized; 0 and 6,478 shares issued and outstanding at December 31, 2023 and 2022, respectively

 

-

 

 

1

 

Additional paid-in capital

 

723,081

 

 

716,233

 

Accumulated deficit

 

(611,768

)

 

(523,063

)

Accumulated other comprehensive loss

 

(2,500

)

 

(1,968

)

Total BuzzFeed, Inc. stockholders’ equity

 

108,828

 

 

191,217

 

Noncontrolling interests

 

2,355

 

 

3,337

 

Total stockholders’ equity

 

111,183

 

 

194,554

 

Total liabilities and stockholders' equity

$

411,476

 

$

529,972

 

BUZZFEED, INC.

Consolidated Statements of Operations

(Unaudited, dollars and shares in thousands, except per share amounts)

 
For the Three Months Ended December 31, For the Year Ended December 31,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

$

75,663

 

$

101,651

 

$

252,677

 

$

342,554

 

Costs and Expenses
Cost of revenue, excluding depreciation and amortization

 

34,295

 

 

49,404

 

 

142,366

 

 

194,348

 

Sales and marketing

 

8,700

 

 

13,141

 

 

38,989

 

 

47,293

 

General and administrative

 

17,109

 

 

23,840

 

 

78,026

 

 

111,437

 

Research and development

 

2,264

 

 

6,181

 

 

11,179

 

 

27,100

 

Depreciation and amortization

 

5,545

 

 

6,079

 

 

21,941

 

 

24,263

 

Impairment expense

 

-

 

 

64,304

 

 

-

 

 

66,464

 

Total costs and expenses

 

67,913

 

 

162,949

 

 

292,501

 

 

470,905

 

Income (loss) from continuing operations

 

7,750

 

 

(61,298

)

 

(39,824

)

 

(128,351

)

Other income (expense), net

 

1,372

 

 

2,254

 

 

(2,990

)

 

(3,076

)

Interest expense, net

 

(4,267

)

 

(4,558

)

 

(16,085

)

 

(15,591

)

Change in fair value of warrant liabilities

 

83

 

 

1,579

 

 

(11

)

 

4,543

 

Change in fair value of derivative liability

 

30

 

 

1,170

 

 

180

 

 

4,695

 

Income (loss) from continuing operations before income taxes

 

4,968

 

 

(60,853

)

 

(58,730

)

 

(137,780

)

Income tax provision (benefit)

 

1,437

 

 

(168

)

 

1,602

 

 

2,703

 

Net income (loss) from continuing operations

 

3,531

 

 

(60,685

)

 

(60,332

)

 

(140,483

)

Net loss from discontinued operations, net of tax

 

(14,824

)

 

(45,501

)

 

(28,990

)

 

(60,843

)

Net loss

 

(11,293

)

 

(106,186

)

 

(89,322

)

 

(201,326

)

Less: net income attributable to the redeemable noncontrolling interest

 

-

 

 

-

 

 

-

 

 

164

 

Less: net loss attributable to the noncontrolling interests

 

(273

)

 

(744

)

 

(743

)

 

(533

)

Net loss attributable to BuzzFeed, Inc.

 

(11,020

)

 

(105,442

)

 

(88,579

)

 

(200,957

)

Net income (loss) from continuing operations attributable to holders of Class A, Class B and Class C common stock:
Basic

$

3,804

 

$

(59,941

)

$

(59,589

)

$

(140,114

)

Diluted

$

3,804

 

$

(59,941

)

$

(59,589

)

$

(140,114

)

Net income (loss) from continuing operations per Class A, Class B and Class C common share:
Basic

$

0.03

 

$

(0.43

)

$

(0.42

)

$

(1.01

)

Diluted

$

0.03

 

$

(0.43

)

$

(0.42

)

$

(1.01

)

Weighted average common shares outstanding:
Basic

145,428

 

 

139,685

 

 

143,062

 

 

138,148

 

Diluted

145,813

 

 

139,685

 

 

143,062

 

 

138,148

 

BUZZFEED, INC.

Consolidated Statements of Cash Flows

(Unaudited, USD in thousands)
 
For the Year Ended December 31,

 

2023

 

 

2022

 

 

2021

 

Operating activities:
Net (loss) income

$

(89,322

)

$

(201,326

)

$

25,876

 

Less: net loss (income) from continuing operations

 

28,990

 

 

60,843

 

 

(22,006

)

Net (loss) income from continuing operations

 

(60,332

)

 

(140,483

)

 

3,870

 

Adjustments to reconcile net (loss) income from continuing operations to net cash (used in) provided by operating activities:
Depreciation and amortization

 

21,941

 

 

24,263

 

 

22,093

 

Unrealized (gain) loss on foreign currency

 

(1,088

)

 

5,389

 

 

1,824

 

Stock based compensation

 

5,579

 

 

19,169

 

 

23,565

 

Change in fair value of warrants

 

11

 

 

(4,543

)

 

(4,740

)

Change in fair value of derivative liability

 

(180

)

 

(4,695

)

 

(26,745

)

Issuance costs allocated to derivative liability

 

-

 

 

-

 

 

1,424

 

Amortization of debt discount and deferred issuance costs

 

4,945

 

 

4,268

 

 

259

 

Deferred income tax

 

3,236

 

 

(1,594

)

 

(28,087

)

Loss on disposition of subsidiaries

 

-

 

 

-

 

 

1,234

 

(Gain) loss on disposition of assets

 

(175

)

 

(500

)

 

220

 

Loss (gain) on investment

 

3,500

 

 

(1,260

)

 

-

 

Provision for doubtful accounts

 

(581

)

 

785

 

 

(161

)

Impairment expense

 

-

 

 

66,464

 

 

-

 

Noncash lease expense

 

20,017

 

 

19,870

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

40,737

 

 

23,941

 

 

(12,951

)

Prepaid expenses and other current assets and prepaid expenses and other assets

 

4,795

 

 

2,540

 

 

2,361

 

Accounts payable

 

19,258

 

 

11,582

 

 

3,546

 

Deferred rent

 

-

 

 

-

 

 

(4,456

)

Accrued compensation

 

(18,088

)

 

(5,663

)

 

2,307

 

Accrued expenses, other current liabilities and other liabilities

 

(12,619

)

 

(2,841

)

 

(1,847

)

Lease liabilities

 

(23,421

)

 

(23,249

)

 

-

 

Deferred revenue

 

(6,946

)

 

7,154

 

 

(5,759

)

Cash provided by (used in) operating activities from continuing operations

 

589

 

 

597

 

 

(22,043

)

Net cash (used in) provided by operating activities from discontinued operations

 

(6,692

)

 

(8,454

)

 

22,840

 

Net cash flow (used in) provided by operating activities

 

(6,103

)

 

(7,857

)

 

797

 

 
Investing activities:
Business acquisitions, net of cash acquired

 

-

 

 

-

 

 

(189,885

)

Capital expenditures

 

(964

)

 

(5,424

)

 

(4,983

)

Capitalization of internal-use software

 

(13,934

)

 

(12,361

)

 

(11,039

)

Proceeds from sale of asset

 

175

 

 

500

 

 

-

 

Cash of disposed subsidiaries, less proceeds on disposition

 

-

 

 

-

 

 

(2,121

)

Cash used in investing activities from continuing operations

 

(14,723

)

 

(17,285

)

 

(208,028

)

Cash (used in) provided by investing activities from discontinued operations

 

-

 

 

-

 

 

-

 

Cash used in investing activities

 

(14,723

)

 

(17,285

)

 

(208,028

)

 
Financing activities:
Proceeds from reverse recapitalization, net of costs

 

-

 

 

-

 

 

(11,652

)

Proceeds from issuance of common stock

 

-

 

 

-

 

 

35,000

 

Payment for shares withheld for employee taxes

 

(451

)

 

(1,698

)

 

-

 

Deferred reverse recapitalization costs

 

-

 

 

(585

)

 

-

 

Proceeds from issuance of convertible notes, net of issuance costs

 

-

 

 

-

 

 

143,806

 

Proceeds from exercise of stock options

 

29

 

 

459

 

 

6,975

 

Proceeds from the issuance of common stock in connection with at-the-market offering, net of issuance costs

 

902

 

 

-

 

 

-

 

Borrowings on Revolving Credit Facility

 

2,128

 

 

5,000

 

 

9,000

 

Payments on Revolving Credit Facility

 

(1,796

)

 

-

 

 

(1,306

)

Cash provided by financing activities

 

812

 

 

3,176

 

 

181,823

 

Effect of currency translation on cash and cash equivalents

 

(123

)

 

(1,993

)

 

(985

)

Net decrease in cash and cash equivalents

 

(20,137

)

 

(23,959

)

 

(26,393

)

Cash, cash and cash equivalents and restricted cash at beginning of year

 

55,774

 

 

79,733

 

 

106,126

 

Cash, cash and cash equivalents and restricted cash at end of year

$

35,637

 

$

55,774

 

$

79,733

 

BUZZFEED, INC.

Reconciliation of GAAP to Non-GAAP

(Unaudited, USD in thousands)

 
Three Months Ended December 31, Year Ended December 31,

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Net income (loss) from continuing operations

$

3,531

 

$

(60,685

)

$

(60,332

)

$

(140,483

)

Income tax provision (benefit)

 

1,437

 

 

(168

)

 

1,602

 

 

2,703

 

Interest expense, net

 

4,267

 

 

4,558

 

 

16,085

 

 

15,591

 

Other (income) expense, net

 

(1,372

)

 

(2,254

)

 

2,990

 

 

3,076

 

Depreciation and amortization

 

5,545

 

 

6,079

 

 

21,941

 

 

24,263

 

Stock-based compensation

 

1,054

 

 

2,301

 

 

5,579

 

 

19,169

 

Change in fair value of warrant liabilities

 

(83

)

 

(1,579

)

 

11

 

 

(4,543

)

Change in fair value of derivative liability

 

(30

)

 

(1,170

)

 

(180

)

 

(4,695

)

Restructuring1

 

 

 

5,372

 

 

6,761

 

 

10,199

 

Impairment expense2

 

 

 

64,304

 

 

 

 

66,464

 

Transaction-related costs3

 

800

 

 

 

 

800

 

 

5,132

 

Litigation costs4

 

 

 

 

 

 

 

1,920

 

Public company readiness costs5

 

 

 

 

 

 

 

1,522

 

Adjusted EBITDA

$

15,149

 

$

16,758

 

$

(4,743

)

$

318

 

Adjusted EBITDA margin6

 

20.0

%

 

16.5

%

 

(1.9

)%

 

0.1

%

Net income (loss) as a percentage of revenue

 

4.7

%

 

(59.7

)%

 

(23.9

)%

 

(41.0

)%

(1) We exclude restructuring expenses from our non-GAAP measures because we believe they do not reflect expected future operating expenses, they are not indicative of our core operating performance, and they are not meaningful in comparison to our past operating performance.

(2) Reflects aggregate non-cash impairment expenses recorded during the year ended December 31, 2022 associated with goodwill impairment of $64.3 million and $2.2 million related to certain long-lived assets of our former corporate headquarters, which was fully subleased during the third quarter of 2022.

(3) Reflects transaction-related costs and other items which are either not representative of our underlying operations or are incremental costs that result from an actual or contemplated transaction and include professional fees, integration expenses, and certain costs related to integrating and converging IT systems.

(4) Reflects costs related to litigation that are outside the ordinary course of our business. We believe it is useful to exclude such charges because we do not consider such amounts to be part of the ongoing operations of our business and because of the singular nature of the claims underlying the matter.

(5) Reflects one-time initial set-up costs associated with the establishment of our public company structure and processes.

(6) Net income (loss) as a percentage of revenue is included as the most comparable GAAP measure to Adjusted EBITDA margin, which is a Non-GAAP measure.

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