BuzzFeed Inc (NASDAQ:BZFD) shares are trading lower Tuesday morning after the company during Monday's after-hours session issued weak first-quarter guidance.
What Happened: BuzzFeed reported quarterly sales of $134.60 million which beat the analyst consensus estimate of $131.25 million by 2.6%. This sales figure is however a 7.6% decrease over sales of $145.72 million in the same period last year.
The company reported adjusted quarterly losses of 2 cents per share, which beat the analyst consensus estimate of a loss of 3 cents.
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BuzzFeed meanwhile sees first-quarter 2023 revenue as low as $61 million or as high as $67 million, which is lower than the analyst consensus estimate of $83.59 million. The company also sees adjusted EBITDA as low as $18 million or as high as $25 million.
"There's no denying that 2022 was a tough year for digital media. The challenges we faced in Q4 are also impacting us in Q1 2023, and it is clear we have more work to do to realize the full potential of our combined brand portfolio," said Jonah Peretti, BuzzFeed Founder & CEO.
"As we work to address these challenges, our value proposition continues to resonate strongly in the marketplace. With iconic brands, a massive audience and a differentiated technology platform, we occupy a unique position in the ecosystem of audiences, creators, platforms and advertisers. And, our work in the exciting new areas of creators and artificial intelligence are continuing to lead the way in defining the future of media," Peretti stated.
What Else: BuzzFeed Monday announced that a majority of cash and cash equivalents balance were hold at SVB Financial Group (NASDAQ:SIVB). The company says it is accessing funds and doesn't currently anticipate any disruption to ongoing operations.
According to data from Benzinga Pro, BZFD is trading lower by 7.03% to $1.19. BZFD has a 52-week high of $5.71 and a 52-week low of $0.64.