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

BuzzFeed (NASDAQ:BZFD) issued its quarterly earnings data on Tuesday. The company reported ($0.22) earnings per share for the quarter, missing the consensus estimate of ($0.14) by ($0.08), Zacks reports. BuzzFeed had a negative return on equity of 97.22% and a negative net margin of 33.26%.

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 Trading Up 3.4%

Shares of NASDAQ BZFD traded up $0.04 during trading on Tuesday, reaching $1.22. The stock had a trading volume of 891,912 shares, compared to its average volume of 1,734,508. The company has a debt-to-equity ratio of 0.77, a quick ratio of 0.78 and a current ratio of 0.78. The company has a market cap of $45.92 million, a P/E ratio of -0.76 and a beta of 3.78. BuzzFeed has a fifty-two week low of $0.54 and a fifty-two week high of $2.21. The business’s 50-day moving average price is $1.42 and its 200-day moving average price is $1.06.

Insider Activity

In other news, Director Terence Hill bought 20,833 shares of the company’s stock in a transaction on Wednesday, June 17th. The stock was bought at an average cost of $1.44 per share, with a total value of $29,999.52. Following the transaction, the director directly owned 20,833 shares in the company, valued at $29,999.52. The trade was a ? increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Eric Gould purchased 33,000 shares of the business’s stock in a transaction on 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 completion of the purchase, the director directly owned 33,000 shares of the company’s stock, valued at approximately $47,520. This trade represents a ? increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have purchased 88,194 shares of company stock worth $126,999. 15.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Blair William & Co. IL acquired a new stake in BuzzFeed during the 3rd quarter worth approximately $29,000. Raymond James Financial Inc. acquired a new position in shares of BuzzFeed in the second quarter worth $33,000. XTX Topco Ltd acquired a new position in shares of BuzzFeed in the second quarter worth $37,000. Bank of America Corp DE grew its stake in shares of BuzzFeed by 1,615.5% in the fourth quarter. Bank of America Corp DE now owns 14,136 shares of the company’s stock worth $38,000 after acquiring an additional 13,312 shares in the last quarter. Finally, Squarepoint Ops LLC increased its position 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 acquiring an additional 30,803 shares during the period. Institutional investors and hedge funds own 37.64% of the company’s stock.

Wall Street Analysts Forecast Growth

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

About BuzzFeed

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.