BuzzFeed (NASDAQ:BZFD) Posts Quarterly Earnings Results, Misses Estimates By $0.08 EPS

BuzzFeed (NASDAQ:BZFD) announced its quarterly earnings data on Tuesday. The company reported ($0.22) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.14) by ($0.08), Zacks reports. BuzzFeed had a negative net margin of 33.26% and a negative return on equity of 97.22%. The company had revenue of $36.29 million during the quarter, compared to analysts’ expectations of $43.11 million.

Here are the key takeaways from BuzzFeed’s conference call:

• Second-quarter results deteriorated: Revenue fell 21.8% year over year to $36.3 million, adjusted EBITDA declined to negative $1.7 million from positive $2 million, and net loss widened to $11.8 million.
• Audience engagement remained under pressure, with quarterly time spent down 11% year over year to 62.3 million hours, although it improved by 1.7 million hours from the first quarter.
• Management is pursuing significant cost reductions: A workforce reduction of approximately 35% is expected to generate about $30 million in annualized savings, alongside further savings from office, professional-fee, travel, and hiring reductions.
• BuzzFeed paid down $20 million of its term loan, reducing the balance to $25 million and net debt to approximately $5 million as of June 30; the move is expected to save more than $2 million in annual interest expense.
• The company is repositioning itself as an AI-supported content platform and expanding monetization through a sales representation agreement with Allen Media Group, while targeting future growth in streaming, commerce, podcasts, sports, news, and live events.

BuzzFeed Stock Up 3.4%

BuzzFeed stock opened at $1.22 on Wednesday. The stock has a market cap of $45.92 million, a PE ratio of -0.76 and a beta of 3.78. The company has a debt-to-equity ratio of 0.77, a current ratio of 0.78 and a quick ratio of 0.78. The stock’s fifty day moving average is $1.41 and its two-hundred day moving average is $1.06. BuzzFeed has a 1-year low of $0.54 and a 1-year high of $2.21.

Insider Activity

In other BuzzFeed news, Director Eric Gould acquired 33,000 shares of the company’s stock in a transaction dated Wednesday, June 17th. The shares were acquired at an average price of $1.44 per share, for a total transaction of $47,520.00. Following the acquisition, the director owned 33,000 shares in the company, valued at $47,520. The trade was a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Terence Hill acquired 20,833 shares of the company’s stock in a transaction dated Wednesday, June 17th. The stock was acquired at an average price of $1.44 per share, for a total transaction of $29,999.52. Following the acquisition, the director owned 20,833 shares in the company, valued at approximately $29,999.52. The trade was a ∞ increase in their position. The SEC filing for this purchase provides additional information. Over the last ninety days, insiders have bought 88,194 shares of company stock valued at $126,999. Insiders own 15.60% of the company’s stock.

Institutional Trading of BuzzFeed

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Blair William & Co. IL acquired a new position in shares of BuzzFeed in the 3rd quarter valued at $29,000. Raymond James Financial Inc. purchased a new stake in BuzzFeed in the second quarter valued at $33,000. XTX Topco Ltd purchased a new stake in BuzzFeed in the second quarter valued at $37,000. Bank of America Corp DE boosted its stake in BuzzFeed by 1,615.5% in the fourth quarter. Bank of America Corp DE now owns 14,136 shares of the company’s stock valued at $38,000 after acquiring an additional 13,312 shares in the last quarter. Finally, Squarepoint Ops LLC grew its holdings in shares of BuzzFeed by 259.0% during the third quarter. Squarepoint Ops LLC now owns 42,698 shares of the company’s stock worth $73,000 after purchasing an additional 30,803 shares during the last quarter. Institutional investors and hedge funds own 37.64% of the company’s stock.

Analysts Set New Price Targets

Several analysts recently weighed in on the stock. Weiss Ratings raised shares of BuzzFeed from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, May 20th. Wall Street Zen cut shares of BuzzFeed to a “strong sell” rating in a report on Saturday, May 30th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Reduce” and a consensus target price of $1.00.

BuzzFeed Company Profile

BuzzFeed, Inc operates as a digital media and technology company specializing in news, entertainment, and social content. The company produces articles, videos and quizzes that target diverse audiences across web, mobile and social platforms. In addition to editorial content, BuzzFeed offers a suite of advertising solutions, including native advertising, branded content and programmatic display, designed to blend seamlessly with its editorial offerings and engage consumers at scale.

Founded in 2006 by Jonah Peretti and John S.