BuzzFeed Ad Revenue is stable, but user engagement is declining
Total revenue reached $103.7 million for the quarter, representing a 15 percent year-over-year increase.
When compared to the prior year, BuzzFeed Inc.’s third-quarter ad revenue was steady but user engagement fell by 32%.
Users engaged with BuzzFeed content for 151 million hours overall across the company’s owned and controlled websites, YouTube, and Apple News. The total revenue for the quarter was $103.7 million, a modest quarterly fall but a 15% year-over-year growth, exceeding the company’s expectation of a 4 to 8% annual gain.
During Q3, advertising income, which has decreased throughout the industry dependent on digital advertising as marketers deal with lower ad expenditures, was $50.4 million.
To close out the year, BuzzFeed has set Q4 revenue expectations between $129 to $134 million while adjusted EBITDA is expected to land between $12.5 to $17.5 million.
“Looking ahead, we are on pace to deliver our strongest performance of the year in the fourth quarter. As we continue to navigate the dual dynamics of the rapid rise of short-form vertical video and an uncertain macroeconomic environment, we are focused on preserving cash and leveraging a deep understanding of our audience to direct resources toward the opportunities with the highest potential for monetization,” BuzzFeed CEO Jonah Peretti said in announcing the company’s Q3 earnings.
The media company most recently disclosed Q2 revenue of $106.8 million and highlighted that overall user time decreased by 19% from the prior year to 154 million hours. In addition, BuzzFeed reported that as of the end of June, it had incurred around $5.3 million in restructuring expenditures, largely as a result of layoffs at HuffPost and voluntary buyouts and departures at BuzzFeed News.
This weekend in Long Beach, BuzzFeed will host ComplexCon, a streetwear-focused festival, and marketplace.