BuzzFeed Reducing Costs, Reports Wider 2Q Loss

Dow Jones08-05

BuzzFeed said it was taking steps to significantly reduce costs, as it reported a wider loss and a drop in revenue in its second quarter.

The digital media and entertainment company posted a loss of $11.8 million, or 22 cents a share, compared with a loss of $10.6 million, or 28 cents a share, a year earlier.

Revenue fell nearly 22% to $36.3 million. Commerce and other revenue declined 31% year-over year, advertising revenue declined 23% and content revenue declined 6.5%.

Chief Executive Byron Allen said the company has taken steps to reduce costs.

Allen Media Group took a majority stake in BuzzFeed in May and Allen took over chief executive and chair while BuzzFeed founder Jonah Peretti transitioned to a newly created role as president of BuzzFeed AI.

Peretti said that BuzzFeed was shifting from a traditional publishing model to a platform where creators and partners fuel its content ecosystem. He added the new model gives BuzzFeed a more flexible operating system in editorial and new AI-supported tools.

BuzzFeed issued a going concern warning in March, saying it lacked the resources to fund its cash obligations.

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