BuzzFeed, Inc. (BZFD) shares experienced a significant surge on Monday after the company released its third-quarter financial results, exceeding analysts’ expectations. While the media company reported a loss of 18 cents per share, this represented a substantial improvement compared to the 63 cents per share loss reported in the same period last year.
Despite the positive earnings beat, BuzzFeed’s overall revenue declined by 24.51% year-over-year, reaching $46.9 million. This downturn was largely attributed to a 19% decrease in advertising revenue, which fell to $23.8 million, and a 48% drop in content revenue, settling at $11.4 million.
However, a bright spot emerged in the form of commerce and other revenues, which witnessed a 7% year-over-year increase, reaching $11.7 million. This growth was primarily driven by affiliate commerce revenues, which experienced a 9% year-over-year expansion, reaching $10.4 million.
Jonah Peretti, BuzzFeed’s CEO, highlighted the company’s progress in recent years, stating, “Our strong performance in Q2 marks a turning point we’ve been working toward for the past two years. We are beginning to see the benefits of our investment in a differentiated technology platform that allows us to accelerate AI product development, make our sites and apps more interactive and personalized, and increase the amount of content our team and audience can create using AI-powered tools.”
Looking ahead, BuzzFeed anticipates total revenues between $58 million and $68 million for the fourth quarter, with adjusted EBITDA projected to range from $6 million to $11 million.
Following the release of these financial results, BZFD shares soared nearly 30%, reaching $2.90 at the time of publication on Monday. The positive market reaction reflects investors’ optimism surrounding the company’s improved financial performance and its focus on leveraging AI technology for growth.
