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BuzzFeed Inc. saw user engagement drop by 32 percent during the third quarter as ad revenue remained flat compared to the previous year.
In total, users spent 151 million hours with BuzzFeed’s content across the company’s owned and operated sites, YouTube and Apple News. Total revenue for the quarter hit $103.7 million, representing a 15 percent year-over-year increase — beating company forecasts of a 4 to 8 percent yearly increase — but a slight quarterly decline.
Ad revenue, which has taken a hit across the digital advertising–reliant industry as marketers contend with smaller ad budgets, amounted to $50.4 million during Q3.
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 last reported Q2 revenue at $106.8 million and noted that total time spent by users dropped by 19 percent, compared to the previous year, down to 154 million hours. BuzzFeed also said it had spent roughly $5.3 million in restructuring costs as of the end of June, in large part due to layoffs at HuffPost and voluntary buyouts and departures at BuzzFeed News.
BuzzFeed is set to host ComplexCon, a streetwear-focused festival and marketplace, in Long Beach this weekend.
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