BuzzFeed, a leading digital media company, has disclosed that the “bulk” of its $56 million in cash is held at the bankrupt Silicon Valley Bank. This suggests that BuzzFeed’s financial position would have been very vulnerable if U.S. government agencies had not stepped in after the bankruptcy of Silicon Valley Bank.
BuzzFeed disclosed this situation in its fourth quarter 2022 earnings report. The earnings report showed that BuzzFeed’s advertising revenue for the quarter plunged 27% year-over-year to $50.5 million. Meanwhile, “content revenue” fell 9% year-over-year to $54.8 million. This revenue was primarily generated from customized content produced for marketers. Overall, BuzzFeed’s fourth-quarter revenue declined 8% to $134.6 million, while full-year 2022 revenue increased 10% year-over-year to $436.7 million, resulting in a net loss of $201.3 million.
BuzzFeed’s outlook for the first quarter of 2023 is similarly poor, with total revenue expected to be $61 million to $67 million, down by up to 33% from the same period in 2022. The negative factors that affected the company’s business in the fourth quarter, namely the weak macro economy that weighed on advertiser spending, will continue into the first quarter.
