BuzzFeed, Inc. Q1 FY2025 earnings call

• Publishing business benefits from strong brands (BuzzFeed, HuffPost, Tasty) with creative teams using AI tools to increase editorial output 17% and improve article performance by 25%. Lighthouse platform improved with AI-powered ad targeting. 62% of US traffic to BuzzFeed.com from direct visits, etc. • AI-native app BF Island in development, with users creating AI content spending 20+ times longer and sharing 7x more than other content types. • Focus on running leaner profitable core publishing business while investing in AI-powered new applications.

Total revenue for Q1 2025 was $36 million, compared to $37 million in Q1 2024. Advertising revenues grew slightly year-over-year to $21.4 million, with programmatic advertising increasing by $2.5 million year-over-year offsetting a $2.1 million decline in direct sold advertising. Content revenues totaled $4.4 million, down from $6.7 million in the prior year, driven by fewer direct sold content deals ($3.2 million year-over-year decline) but with a $900,000 increase in studio revenue. Commerce and other revenue rose to $10.2 million from $9.3 million a year ago, driven by a $1 million increase in organic affiliate commerce. Adjusted EBITDA came in at a $5.9 million loss, an improvement of $8.5 million year over year. Revenue contribution: Advertising ~59.4% ($21.4M/$36M), Content ~12.2% ($4.4M/$36M), Commerce & Other ~28.3% ($10.2M/$36M)

• Reaffirm full year 2025 guidance: Revenue in the range of $195 million to $210 million and adjusted EBITDA between $10 million and $20 million, in line with prior quarter's outlook.

• Macro economic uncertainty including potential tariff impacts; advertisers taking a wait-and-see approach. • Tariffs could pose risks to the commerce segment, though currently no meaningful impact seen as commerce is diversified across categories and partners.

Q: Can you touch on BuzzFeed's outlook for macro conditions and what you're hearing from advertisers regarding spend for the year?

A: Jonah Peretti said advertisers are taking a wait-and-see approach due to macro chaos, but generative AI's impact on the economy is a bigger trend.

Q: Do you expect to lean into more programmatic revenue in a more uncertain macro? What would be the implication?

A: Jonah Peretti said programmatic is efficient, scalable, and resilient in uncertain times, likely to be a higher percentage in a downturn as it's measurable and tech-enabled.

Q: Have you seen any changes from commerce partners as tariffs have been implemented? Do you see any risks to the commerce segment?

A: Matt Omer said no meaningful impact from tariffs so far, and commerce is diversified across categories and partners to reduce risk.

Q: What is your outlook for cash flow generation in 2025? How should we think about this conversion from EBITDA to FCF?

A: Matt Omer said positive cash flow from operations expected to be offset by modest CapEx and capitalized software, with physical CapEx low and tech team compensation capitalized.