Buzzfeed runs out of buzz as losses swell and time spent on sites dwindle
Losses continue for media giant Buzzfeed as the firm struggles to gain momentum following its market debut last year.
While BuzzFeed’s revenues grew 26 per cent to $91.6m in the first quarter, the firm’s net losses swelled to $44.6m.
The owner of BuzzFeed, HuffPost and, most recently, Complex Networks also revealed this week that time spent on its sites declined four per cent year over year to 184 million hours across owned and operated properties as well as third-party platforms.
The results represent the first quarter as a fully combined company and present significant red flags for the firm moving forward, said Enders Analysis’ Abi Watson.
She told City PM that the declining users on Facebook are likely to have battered the click-through rates for Buzzfeed sites, as well as those all important ad eyeballs.
Watson added that although Buzzfeed posted hikes in both advertising and content revenue, she said this was likely attributed to the recent acquisition of Complex, which is a leader in engagement with 18-24 year old men. Watson said she was “uncertain” this could continue into next year once it becomes fully combined into the group.
The saving grace for the company is slowly but surely shifting to short-form videos, which have been a major win for TikTok capturing Gen Z.
Shares have been down over 37 per cent in the year to date, and the stock has plunged ten per cent today alone.