BuzzFeed, Inc. (NASDAQ:BZFD) announced today, an expansion of its At-The-Market (ATM) offering program. The digital media company has increased the maximum aggregate offering price of its Class A common stock to $150 million. This move follows a previous limitation of approximately $9 million based on the closing price of the Class A common stock of $2.71 on the same day. The company has sold 517,385 shares under the ATM agreement so far, yielding roughly $1.1 million in gross proceeds.
Alongside the expansion of the ATM program, BuzzFeed provided an outlook for the second quarter of 2024. The company reconfirmed guidance initially shared on May 13, 2024, projecting overall revenues to be between $44 to $49 million, which would mark a decrease of 21% to 30% from the same period in the previous year. Adjusted EBITDA is expected to range from a loss of $4 million to a profit of $1 million, approximately flat year-over-year at the midpoint.
The provided financial estimates are preliminary and subject to change upon finalization of the company's accounting records. BuzzFeed notes that no independent registered public accounting firm has audited, reviewed, or compiled these estimates. Furthermore, the company cautions that the forward-looking statements in the report involve risks and uncertainties, and actual results may differ materially.
The announcement comes amidst a challenging economic landscape, with BuzzFeed highlighting potential risks including adverse economic conditions, global supply chain disruptions, and geopolitical tensions. The company also acknowledges the competitive digital media industry and the demand for advertising, which may impact its financial performance.
In other recent news, BuzzFeed Inc. has returned to compliance with Nasdaq's audit committee requirements, resolving a potential delisting issue. The company achieved compliance by appointing Gregory Coleman to its audit committee, thereby meeting Nasdaq's requirement of having a minimum of three members on the committee. In addition, BuzzFeed has reported a decline in its Q1 2024 revenue by 18% year-over-year to $44.8 million and anticipates further decrease in the second quarter.
BuzzFeed has also adopted a stock-based compensation model for its top executives, including CEO Jonah Peretti, aligning their interests with those of the shareholders. This initiative is part of the company's larger effort to adapt to the changing internet landscape and create value. Furthermore, BuzzFeed is focusing on artificial intelligence (AI) to enhance audience engagement and shopping experiences, signaling its commitment to progress within the digital media industry.
InvestingPro Insights
In light of BuzzFeed's latest strategic moves, insights from InvestingPro shed additional light on the company's financial health and market performance. With a market capitalization of approximately $99.39 million, BuzzFeed operates with a notable debt burden and analysts do not expect the company to be profitable this year. The company's stock has demonstrated significant volatility, as evidenced by a substantial 154.22% price increase over the last six months, yet it has taken a 14.78% hit just in the past week.
InvestingPro Tips highlight that while BuzzFeed is quickly burning through cash, with short-term obligations exceeding its liquid assets, there is an anticipation of sales growth in the current year. These factors are crucial for investors considering BuzzFeed's expanded ATM offering program. Additionally, the stock's performance has been quite volatile, which could be of interest to investors looking for short-term opportunities.
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