Washington, D.C. 20549
For the quarterly period ended September 30, 2023
For the Transition Period from      to
Commission file number: 001-39877
BuzzFeed, Inc.
(Exact Name of Registrant as Specified in Its Charter)
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
229 West 43rd Street New York, New York
(Address of principal executive offices)(Zip Code)
(646) 397-2039
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per shareBZFDThe Nasdaq Stock Market LLC
Redeemable warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 per shareBZFDWThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated fileroAccelerated filerx
Non-accelerated fileroSmaller reporting companyx
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes o No x
As of November 1, 2023, there were 138,228,523 shares of the registrant’s Class A common stock outstanding, 6,675,517 shares of the registrant’s Class B common stock outstanding and no shares of the registrant’s Class C common stock outstanding.


Certain statements in this Quarterly Report on Form 10-Q may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which statements involve substantial risks and uncertainties. Our forward-looking statements include, but are not limited to, statements regarding our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “affect,” “anticipate,” “believe,” “can,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward looking statements include all matters that are not historical facts.
These risks and uncertainties include, but are not limited to:
anticipated trends, growth rates, and challenges in our business and in the markets in which we operate;
demand for our products and services or changes in traffic or engagement with our brands and content;
changes in the business and competitive environment in which we and our current and prospective partners and advertisers operate;
developments and projections relating to our competitors and the digital media industry, including the overall demand for advertising in the markets in which we operate;
the impact of national and local economic and other conditions and developments in technology, each of which could influence the levels (rate and volume) of our advertising, the growth of our business, and the implementation of our strategic initiatives;
our success in integrating and supporting the companies we acquire;
poor quality broadband infrastructure in certain markets;
technological developments, including artificial intelligence;
our success in retaining or recruiting, or changes required with respect to, officers, key employees or directors;
our business, operations, and financial performance, including expectations with respect to our financial and business performance and the benefits of our restructuring, including financial projections and business metrics, and any underlying assumptions thereunder, future business plans and initiatives, and growth opportunities;
our future capital requirements and sources and uses of cash, including, but not limited to, our ability to obtain additional capital in the future and the actions we may need to take in order to generate capital to fund our operations, any impacts of bank failures or issues in the broader United States (“U.S.”) or global financial systems, any restrictions imposed by our debt facilities, and any restrictions on our ability to access our cash and cash equivalents;
expectations regarding future acquisitions, partnerships, or other relationships with third parties;
developments in the law and government regulation, including, but not limited to, revised foreign content and ownership regulations, and the outcomes of legal proceedings, regulatory disputes and governmental investigations to which we are subject;
the anticipated impacts of current global supply chain disruptions; the war between Israel and Hamas or further escalation of tensions between Russia and Western countries and the related sanctions and geopolitical tensions, as well as further escalation of trade tensions between the U.S. and China; the inflationary environment; the tight

labor market; the continued impact of the COVID-19 pandemic and evolving strains of COVID-19; and other macroeconomic factors on our business and the actions we may take in the future in response thereto;

our ability to maintain the listing of our Class A common stock and warrants on The Nasdaq Stock Market LLC; and

other factors detailed under the section entitled “Risk Factors” herein, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and in our Annual Report on Form 10-K for the year ended December 31, 2022.
The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the section entitled “Risk Factors” herein, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and in our Annual Report on Form 10-K for the year ended December 31, 2022. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. There may be additional risks that we consider immaterial or which are unknown. It is not possible to predict or identify all such risks. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
This Quarterly Report on Form 10-Q contains estimates and information concerning our industry, our business, and the market for our products and services, including our general expectations of our market position, market growth forecasts, our market opportunity, and size of the markets in which we participate, that are based on industry publications, surveys, and reports that have been prepared by independent third parties. This information involves a number of assumptions and limitations, and you are cautioned not to give undue weight to these estimates. Although we have not independently verified the accuracy or completeness of the data contained in these industry publications, surveys, and reports, we believe the publications, surveys, and reports are generally reliable, although such information is inherently subject to uncertainties and imprecision. The industry in which we operate is subject to a high degree of uncertainty and risk due to a variety of factors, including, but not limited to, those described in the section entitled “Risk Factors” herein, in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, and in our Annual Report on Form 10-K for the year ended December 31, 2022. These and other factors could cause results to differ materially from those expressed in these publications and reports.
Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (https://investors.buzzfeed.com), U.S. Securities and Exchange Commission (“SEC”) filings, webcasts, press releases, and conference calls. We use these mediums to communicate with investors and the general public about our company, our products and services, and other issues. It is possible that the information that we make available may be deemed to be material information. We therefore encourage investors, the media, and others interested in our company to review the information that we post on our investor relations website.

ITEM 1: Financial Statements (unaudited)
(Dollars and shares in thousands, except per share amounts)
September 30, 2023
December 31,
Current assets
Cash and cash equivalents$42,470 $55,774 
Accounts receivable (net of allowance for doubtful accounts of $1,996 as at September 30, 2023 and $1,879 as at December 31, 2022)
60,817 116,460 
Prepaid expenses and other current assets24,320 26,373 
Total current assets127,607 198,607 
Property and equipment, net13,415 17,774 
Right-of-use assets51,162 66,581 
Capitalized software costs, net22,110 19,259 
Intangible assets, net109,941 121,329 
Goodwill91,632 91,632 
Prepaid expenses and other assets15,340 14,790 
Total assets$431,207 $529,972 
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable$41,610 $29,329 
Accrued expenses17,713 26,357 
Deferred revenue8,273 8,836 
Accrued compensation14,724 31,052 
Current lease liabilities21,312 23,398 
Other current liabilities4,171 3,900 
Total current liabilities107,803 122,872 
Noncurrent lease liabilities43,424 59,315 
Debt157,061 152,253 
Derivative liability30 180 
Warrant liabilities489 395 
Other liabilities445 403 
Total liabilities309,252 335,418 
Commitments and contingencies
Stockholders’ equity
Class A Common stock, $0.0001 par value; 700,000 shares authorized; 138,201 and 126,387 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively
14 13 
Class B Common stock, $0.0001 par value; 20,000 shares authorized; 6,676 and 6,678 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively
1 1 
Class C Common stock, $0.0001 par value; 10,000 shares authorized; 0 and 6,478 shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively
Additional paid-in capital721,980 716,233 
Accumulated deficit(600,748)(523,063)
Accumulated other comprehensive loss(1,776)(1,968)
Total BuzzFeed, Inc. stockholders’ equity119,471 191,217 
Noncontrolling interests2,484 3,337 
Total stockholders’ equity121,955 194,554 
Total liabilities and stockholders’ equity$431,207 $529,972 
The accompanying notes are an integral part of these condensed consolidated financial statements.

(Unaudited, dollars and shares in thousands, except per share amounts)
Three Months Ended September 30,Nine Months Ended September 30,
Revenue$73,299 $103,733 $218,353 $302,051 
Costs and Expenses
Cost of revenue, excluding depreciation and amortization39,836 60,989 137,687 183,336 
Sales and marketing10,300 16,317 39,736 52,808 
General and administrative19,080 27,254 62,438 92,381 
Research and development2,815 5,900 10,594 23,345 
Depreciation and amortization8,068 9,198 24,503 26,292 
Impairment expense 2,160  2,160 
Total costs and expenses80,099 121,818 274,958 380,322 
Loss from operations(6,800)(18,085)(56,605)(78,271)
Other expense, net(1,307)(2,752)(4,362)(5,330)
Interest expense, net(5,904)(5,171)(16,953)(14,992)
Change in fair value of warrant liabilities104 (395)(94)2,964 
Change in fair value of derivative liability30 300 150 3,525 
Loss before income taxes (13,877)(26,103)(77,864)(92,104)
Income tax provision55 890 165 3,036 
Net loss(13,932)(26,993)(78,029)(95,140)
Net income attributable to the redeemable noncontrolling interest   164 
Net (loss) income attributable to noncontrolling interests(210)(137)(470)211 
Net loss attributable to BuzzFeed, Inc.$(13,722)$(26,856)$(77,559)$(95,515)
Net loss per Class A, Class B and Class C common share:
Basic and diluted$(0.09)$(0.19)$(0.54)$(0.69)
Weighted average common shares outstanding:
Basic and diluted145,053138,939142,585137,591
The accompanying notes are an integral part of these condensed consolidated financial statements.

(Unaudited, in thousands)
Three Months Ended September 30,Nine Months Ended September 30,
Net loss$(13,932)$(26,993)$(78,029)$(95,140)
Other comprehensive income (loss)
Foreign currency translation adjustment511 21 (191)423 
Other comprehensive income (loss)511 21 (191)423 
Comprehensive loss(13,421)(26,972)(78,220)(94,717)
Comprehensive income attributable to the redeemable noncontrolling interest   164 
Comprehensive (loss) income attributable to noncontrolling interests(210)(137)(470)211 
Foreign currency translation adjustment attributable to noncontrolling interests(83)(234)(383)(687)
Comprehensive loss attributable to BuzzFeed, Inc.$(13,128)$(26,601)$(77,367)$(94,405)
The accompanying notes are an integral part of these condensed consolidated financial statements.

(Unaudited, in thousands)
For the Three and Nine Months Ended September 30, 2023
Common Stock –
Class A
Common Stock –
Class B
Common Stock –
Class C
Additional paid-in
BuzzFeed, Inc.
Balance at January 1, 2023126,387 $13 6,678 $1 6,478 $1 $716,233 $(523,063)$(1,968)$191,217 $3,337 $194,554 
Cumulative effect of accounting change (see Note 2)— — — — — — — (126)— (126)— (126)
Net loss— — — — — — — (36,001)— (36,001)(260)(36,261)
Stock-based compensation— — — — — — 1,122 — — 1,122 — 1,122 
Issuance of common stock in connection with share-based plans512 — — — — — 29 — — 29 — 29 
Shares withheld for employee taxes(121)— — — — — (193)— — (193)— (193)
Other comprehensive loss— — — — — — — — (701)(701)(58)(759)
Conversion of Class B common stock to Class A common stock2 — (2)— — — — — — — — — 
Conversion of Class C common stock to Class A common stock6,478 1 — — (6,478)(1)— — — — — — 
Balance at March 31, 2023133,258 $14 6,676 $1  $ $717,191 $(559,190)$(2,669)$155,347 $3,019 $158,366 
Net loss— — — — — — — (27,836)— (27,836)— (27,836)
Stock-based compensation— — — — — — 2,257 — — 2,257 — 2,257 
Issuance of common stock in connection with share-based plans1,692 — — — — — — — — — — — 
Shares withheld for employee taxes(51)— — — — — (27)— — (27)— (27)
Issuance of common stock in connection with at-the-market offering, net of issuance costs1,716 — — — — — 810 — — 810 — 810 
Other comprehensive income (loss)— — — — — — — — 299 299 (242)57 
Balance at June 30, 2023136,615 $14 6,676 $1  $ $720,231 $(587,026)$(2,370)$130,850 $2,777 $133,627 
Net loss— $— — $— — $— $— $(13,722)$— $(13,722)$(210)$(13,932)
Stock-based compensation— $— — $— — $— $1,799 $— $— $1,799 $— $1,799 
Issuance of common stock in connection with share-based plans1,590 $— — $— — $— $— $— $— $— $— $— 
Shares withheld for employee taxes(359)$— — $— — $— $(187)$— $— $(187)$(187)
Issuance of common stock in connection with at-the-market offering, net of issuance costs355 $— — $— — $— 137 $— $— $137 $— $137 
Other comprehensive income (loss)— $— — $— — $— $— $— $594 $594 $(83)$511 
Balance at September 30, 2023138,201 $14 6,676 $1  $ $721,980 $(600,748)$(1,776)$119,471 $2,484 $121,955 

For the Three and Nine Months Ended September 30, 2022
Common Stock –
Class A
Common Stock –
Class B
Common Stock –
Class C
BuzzFeed, Inc.
Balance at January 1, 2022116,175$11 12,397$1 6,478$1 $695,869 $(322,106)$(3,233)$370,543 $2,044 $372,587 
Net (loss) income(44,894)(44,894)164(44,730)
Stock-based compensation3,9403,9403,940
Issuance of common stock upon exercise of stock options4111358359359
Other comprehensive loss(103)(103)(103)
Conversion of Class B common stock to Class A common stock103(103)
Balance at March 31, 2022116,689$12 12,294$1 6,478$1 $700,167 $(367,000)$(3,336)$329,845 $2,208 $332,053 
Net loss(23,765)(23,765)184(23,581)
Stock-based compensation11,28411,28411,284
Issuance of common stock upon exercise of stock options3,561222
Shares withheld for employee taxes(434)(1,635)(1,635)(1,635)
Other comprehensive income (loss)958958(453)505
Reclassification of noncontrolling interest (see Note 12)2,4582,458
Conversion of Class B common stock to Class A common stock5,608(5,608)
Balance at June 30, 2022125,424$12 6,686$1 6,478$1 $709,818 $(390,765)$(2,378)$316,689 $4,397 $321,086 
Net loss$— $— $— $— $(26,856)$— $(26,856)$(137)$(26,993)
Stock-based compensation$— $— $— $3,635 $— $— $3,635 $— $3,635 
Issuance of common stock in connection with share-based plans569$1 $— $— $— $— $— $1 $— $1 
Shares withheld for employee taxes(19)$— $— $— $(35)$— $— $(35)$(35)
Other comprehensive income (loss)$— $— $— $— $— $255 $255 $(234)$21 
Conversion of Class B common stock to Class A common stock8$— (8)$— $— $— $— $— $— $— $— 
Balance at September 30, 2022125,982$13 6,678$1 6,478$1 $713,418 $(417,621)$(2,123)$293,689 $4,026 $297,715 
The accompanying notes are an integral part of these condensed consolidated financial statements.

(Unaudited, in thousands)
Nine Months Ended September 30,
Operating activities:
Net loss$(78,029)$(95,140)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization24,503 26,292 
Unrealized loss on foreign currency30 4,906 
Stock based compensation5,178 18,859 
Change in fair value of warrants94 (2,964)
Change in fair value of derivative liability(150)(3,525)
Amortization of debt discount and deferred issuance costs4,475 3,863 
Deferred income tax404 1,957 
Provision for doubtful accounts(10)654 
Loss (gain) on investment3,500 (1,260)
Gain on disposition of assets (175)(500)
Non-cash lease expense15,460 14,962 
Impairment expense 2,160 
Changes in operating assets and liabilities:
Accounts receivable54,823 50,761 
Prepaid expenses and other current assets and prepaid expenses and other assets(1,540)(6,469)
Accounts payable14,421 4,133 
Accrued compensation(16,299)(9,048)
Accrued expenses, other current liabilities and other liabilities (10,451)(3,177)
Lease liabilities(18,028)(17,728)
Deferred revenue(569)3,367 
Cash used in operating activities(2,363)(7,897)
Investing activities:
Capital expenditures(761)(4,528)
Capitalization of internal-use software(10,920)(9,746)
Proceeds from sale of asset175 500 
Cash used in investing activities(11,506)(13,774)
Financing activities:
Proceeds from exercise of stock options29 360 
Payment for shares withheld for employee taxes (407)(1,670)
Borrowings on Revolving Credit Facility2,128 5,000 
Payments on Revolving Credit Facility(1,796) 
Proceeds from the issuance of common stock in connection with at-the-market offering, net of issuance costs902  
Deferred reverse recapitalization costs (585)
Cash provided by financing activities856 3,105 
Effect of currency translation on cash and cash equivalents(291)(2,031)
Net decrease in cash and cash equivalents(13,304)(20,597)
Cash and cash equivalents at beginning of period55,774 79,733 
Cash and cash equivalents at end of period$42,470 $59,136 
The accompanying notes are an integral part of these condensed consolidated financial statements.

(Unaudited, tabular amounts and shares in thousands, except per share amounts)
1. Description of the Business
BuzzFeed, Inc. (referred to herein, collectively with its subsidiaries, as “BuzzFeed” or the “Company”) is a premier digital media company for the most diverse, most online, and most socially connected generations the world has ever seen. Across food, news, pop culture and commerce, our brands drive conversation and inspire what audiences watch, read, and buy now — and into the future. The Company’s portfolio of iconic, globally-loved brands includes BuzzFeed, HuffPost, Tasty, Complex Networks, and First We Feast. BuzzFeed derives its revenue primarily from advertising, content, and commerce and other sold to leading brands. The Company has one reportable segment.
On December 3, 2021, we consummated a business combination (the “Business Combination”) with 890 5th Avenue Partners, Inc. (“890”), certain wholly-owned subsidiaries of 890, and BuzzFeed, Inc., a Delaware corporation (“Legacy BuzzFeed”). In connection with the Business Combination, we acquired 100% of the membership interests of CM Partners, LLC. CM Partners, LLC, together with Complex Media, Inc., is referred to herein as “Complex Networks.” Following the closing of the Business Combination, 890 was renamed “BuzzFeed, Inc.”
Additionally, pursuant to subscription agreements entered into in connection with the entry into the merger agreement pursuant to which the Business Combination was consummated, the Company issued, and certain investors purchased, $150.0 million aggregate principal amount of unsecured convertible notes due 2026 concurrently with the closing of the Business Combination (the “Notes”).
As a digital media company, the Company is subject to certain inherent risks and uncertainties associated with the development of its business. To date, substantially all of the Company’s efforts have been devoted to the growth of its owned and operated properties and portfolio of brands. This includes the Company’s proprietary technology infrastructure, advertising solutions, content creation tools, and more. The Company has invested in the recruitment of key management and technical staff and has acquired certain businesses. These investments have historically been funded by raising outside capital, and as a result of these efforts, the Company has generally incurred significant losses and used net cash outflows from operations since inception — and it may continue to incur such losses and use net cash outflows for the foreseeable future until such time it reaches scale of profitability without needing to rely on funding from outside capital to sustain its operations.
In order to execute its growth strategy, the Company has historically relied on outside capital through the issuance of equity, debt, and borrowings under financing arrangements (collectively “outside capital”). The Company may continue to rely on outside capital for the foreseeable future. While the Company believes it will eventually reach a scale of profitability to sustain its operations, there can be no assurance it will be able to achieve such profitability or generate consistent positive cash flows from operations, or do so in a manner that does not necessitate its continued reliance on outside capital.
As of the date the condensed consolidated financial statements were issued (the “issuance date”), the presence of the following risks and uncertainties associated with the Company’s financial condition may adversely affect our ability to sustain its operations over the next 12 months beyond the issuance date.
Since its inception, the Company has generally incurred significant losses and used net cash flows from operations to grow its owned and operated properties and portfolio of brands. During the nine months ended September 30, 2023, the Company incurred a net loss of $78.0 million and used net cash flows from its operations of $2.4 million. Additionally, as of September 30, 2023, the Company had unrestricted cash and cash equivalents of $42.5 million to fund its operations, $0.7 million available under the Company’s $50.0 million revolving loan and standby letter of credit facility agreement (the “Revolving Credit Facility”) (refer to Note 9 herein for additional details), and an accumulated deficit of $600.7 million.
The Company expects to continue to be impacted by the challenging U.S. and global macroeconomic environment, which could adversely impact its ability to grow revenue over the next 12 months beyond

the issuance date. For example, the Company has experienced negative impacts on both traffic consumption and client demands.
The Company continues to be affected by its ongoing efforts to integrate its combined brand portfolio and sales execution against the combined brand portfolio, which may result in the incurrence of unexpected expenses or the inability to realize anticipated benefits and synergies over the next 12 months beyond the issuance date.
The Company is required to remain in compliance with certain covenants required by the Revolving Credit Facility, which, among others, require it to maintain a minimum of $25.0 million of unrestricted cash at all times and limit, under prescribed circumstances, its ability to incur additional indebtedness, pay dividends, hold unpermitted investments or make material changes to the business. While the Company was in compliance with the financial covenants under the Revolving Credit Facility as of September 30, 2023, and it expects to remain in compliance throughout 12 months beyond the issuance date, the Company may be unable to remain in compliance with one or more of these covenants if it is unable to generate net cash inflows from operations or, if necessary, secure additional outside capital (including through our at-the-market-offering; refer to Note 11 herein for additional details). In the event the Company is unable to remain in compliance with one or more of the aforementioned covenants, and it is unable to secure a waiver or forbearance, the lender may, at its discretion, exercise any and all of its existing rights and remedies, which may include, among others, accelerating repayment of the outstanding borrowings and/or asserting its rights in the assets securing the loan.
Due to the risks and uncertainties described above, the Company continues to carefully evaluate its liquidity position. The Company recognizes the significant challenge of maintaining sufficient liquidity to sustain its operations or remain in compliance with one or more of the covenants required by the Revolving Credit Facility for the next 12 months beyond the issuance date. However, notwithstanding its liquidity position as of the issuance date, and while it is difficult to predict its future liquidity requirements with certainty, the Company currently expects it will be able to generate sufficient liquidity to fund its operations over the next 12 months beyond the issuance date.
In response to the risks and uncertainties described above, the Company may plan to secure additional outside capital over the next 12 months beyond the issuance date. While the Company has historically been successful in its ability to secure outside capital, as of the issuance date, the Company had no firm commitments of additional outside capital other than the Company’s at-the-market-offering, which is subject to the conditions contained in the At-The-Market Offering agreement dated June 20, 2023 with Craig-Hallum Capital Group LLC (refer to Note 11 herein for additional details). The Company can provide no assurance it will be able to continue to secure outside capital in the future or do so on terms that are acceptable to it, which could be due to future market conditions which are outside of its control. Furthermore, the Company also plans to continue to closely monitor its cash flow forecast and, if necessary, it will implement certain incremental cost savings to preserve its liquidity beyond those that were implemented through the restructuring activities that occurred during fiscal year 2022 and 2023 (refer to Note 14 herein for additional details) or through the reduction of its real estate footprint. While the Company currently expects it will be able to generate sufficient liquidity to fund its operations for the next 12 months beyond the issuance date, it can provide no assurance it will successfully generate such liquidity, or if necessary, secure additional outside capital (including through our at-the-market-offering; refer to Note 11 herein for additional details) or implement incremental cost savings.
In March 2020, the World Health Organization declared the viral strain of COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. The spread of COVID-19 and the resulting economic contraction resulted in increased business uncertainty and significantly impacted the Company’s business and results of operations. While the extent of the impact has generally decreased, the Company continues to monitor the status, and respond to the effects of, the COVID-19 pandemic and its impact on the Company’s business. Future developments regarding COVID-19 continue to be uncertain and difficult to predict. There can be no assurances that future impacts related to COVID-19, including new variants, or other global pandemics will not adversely impact our business, results of operations, financial condition and cash flows in future periods.

2. Summary of Significant Accounting Policies
Basis of Financial Statements and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. As such, the accompanying condensed consolidated financial statements and these related notes should be read in conjunction with the Company’s consolidated financial statements and related notes as of and for the year ended December 31, 2022, as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
The condensed consolidated financial statements include all normal recurring adjustments that, in the opinion of management, are necessary to present fairly the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year ended December 31, 2023.
The condensed consolidated financial statements include the accounts of BuzzFeed, Inc., and its wholly-owned and majority-owned subsidiaries, and any variable interest entities for which the Company is the primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported results of operations during the reporting period. Due to the use of estimates inherent in the financial reporting process actual results could differ from those estimates.
Key estimates and assumptions relate primarily to revenue recognition, fair values of intangible assets acquired in business combinations, valuation allowances for deferred income tax assets, allowance for doubtful accounts, fair value of the derivative liability, fair values used for stock-based compensation in periods prior to the Business Combination, useful lives of fixed assets, and capitalized software costs.
Recently Adopted Accounting Pronouncements
The Company, an emerging growth company (“EGC”), has elected to take advantage of the benefits of the extended transition period provided for in Section 7(a)(2)(B) of the Securities Act, as amended, for complying with new or revised accounting standards which allows the Company to defer adoption of certain accounting standards until those standards would otherwise apply to private companies.
In June 2016, the Financial Accounting Standards Board issued Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326), which changes the impairment model for most financial assets, including accounts receivable, and replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The guidance is effective for the Company for interim and annual periods beginning after December 15, 2022, with early adoption permitted. Effective January 1, 2023, the Company adopted this standard using a modified retrospective transition approach, which required a cumulative effect adjustment to the balance sheet as of January 1, 2023. The adoption of this standard did not have a material impact to our condensed consolidated financial statements.
Accounting Pronouncements Not Yet Adopted

3. Acquisitions and Dispositions
Complex Networks Acquisition
On December 3, 2021, in conjunction with the Business Combination, the Company completed the acquisition of 100% of the members’ interests of Complex Networks, a publisher of online media content targeting Millennial and Gen Z consumers (the “Complex Networks Acquisition”).
The following table summarizes the fair value of consideration exchanged as a result of the Complex Networks Acquisition:
Cash consideration(1)
Share consideration(2)
Total consideration$294,166
(1)Includes the cash purchase price of $200.0 million adjusted for certain closing specified liabilities as specified in the Complex Networks Acquisition purchase agreement.
(2)Represents 10,000,000 shares of our Class A common stock at a price of $9.62 per share, which is based on the closing stock price of our Class A common stock on the date on which the Business Combination was consummated.
The following table summarizes the determination of the fair value of identifiable assets acquired and liabilities assumed in connection with the Complex Networks Acquisition. During the year ended December 31, 2022, the Company finalized the fair value of assets acquired and liabilities assumed. Measurement period adjustments were reflected during the year ended December 31, 2022, which is the period in which the adjustments occurred. The adjustments resulted from new information obtained about facts and circumstances that existed as of the acquisition date.
Cash$2,881  $2,881 
Accounts receivable22,581 11 22,592 
Prepaid and other current assets17,827 281 18,108 
Property and equipment332 (15)317 
Intangible assets119,100  119,100 
Goodwill189,391 (909)188,482 
Accounts payable(2,661) (2,661)
Accrued expenses(12,319)(803)(13,122)
Accrued compensation(12,867)349 (12,518)
Deferred revenue(5,855)(48)(5,903)
Deferred tax liabilities(22,776)1,134 (21,642)
Other liabilities(1,468) (1,468)
Total consideration for Complex Networks$294,166 $ $294,166 
The table below indicates the estimated fair value of each of the identifiable intangible assets:
Asset Fair ValueWeighted Average
Useful Life (Years)
Trademarks & tradenames97,000 15
Customer relationships17,000 4
Developed technology5,100 3

The fair values of the intangible assets were estimated using Level 3 inputs. The fair value of trademarks and trade names was determined using the relief from royalty method, the fair value of customer relationships was determined using the multi-period excess earnings approach, and the fair value of acquired technology was determined using the replacement cost approach. The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired resulted in $188.5 million of goodwill, which is primarily attributed to workforce and synergies, and is not deductible for tax purposes.
Goodwill Impairment
The Company reviews goodwill for impairment annually as of October 1 and more frequently if events or changes in circumstances indicate an impairment may exist (a “triggering event”). As of September 30, 2023, the Company had $91.6 million of goodwill recorded on its condensed consolidated balance sheet. During the year ended December 31, 2022, the Company recorded a $102.3 million non-cash goodwill impairment charge driven by a sustained decline in share price that pushed our market capitalization below the carrying value of our stockholders’ equity.
During the three months ended September 30, 2023, the Company identified a further sustained decline in share price whereby the Company’s market capitalization was below the carrying value of its stockholders’ equity. The Company concluded the sustained decline in share price was a triggering event and proceeded with a quantitative goodwill impairment assessment. The quantitative impairment assessment was performed as of September 30, 2023, utilizing an equal weighting of the income and market approaches. The analysis required the comparison of the Company’s carrying value with its fair value, with an impairment recorded for any excess of carrying value over the fair value. The discounted cash flow method was used to determine the fair value of the Company’s single reporting unit under the income approach. The adjusted market capitalization method was used to determine the fair value of the reporting unit under the market approach. The adjusted market capitalization method is calculated by multiplying the average share price of the Company’s common stock for the average between (i) the singular day of September 30, (ii) seven days prior to the measurement date, and (iii) 30 days prior to the measurement date, by the number of outstanding shares of common stock and adding a control premium that reflects the premium a hypothetical buyer might pay. The control premium was estimated using historical transactions over three years. The results of the quantitative analysis performed indicated the fair value of the reporting unit exceeded the carrying value by more than 10%. As a result, the Company concluded there was no goodwill impairment as of September 30, 2023. The Company believes our procedures for determining fair value are reasonable and consistent with current market conditions as of September 30, 2023.
4. Revenue Recognition
Disaggregated Revenue
The table below presents the Company’s revenue disaggregated based on the nature of its arrangements. Management uses these categories of revenue to evaluate the performance of its businesses and to assess its financial results and forecasts.
Three Months Ended September 30,Nine Months Ended September 30,
Advertising$32,589 $50,404 $102,234 $152,296 
Content26,250 38,416 79,347 110,979 
Commerce and other14,460 14,913 36,772 38,776 
Total$73,299 $103,733 $218,353 $302,051 
The following table presents the Company’s revenue disaggregated by geography:
Three Months Ended September 30,Nine Months Ended September 30,
United States$66,877 $94,582 $202,770 $272,869 
International6,422 9,151 15,583 29,182 
Total$73,299 $103,733 $218,353 $302,051 

Contract Balances
The timing of revenue recognition, billings and cash collections can result in billed accounts receivable, unbilled receivables (contract assets), and deferred revenues (contract liabilities). The payment terms and conditions within the Company’s contracts vary by type, but the substantial majority require that customers pay for their services on a monthly or quarterly basis, as the services are being provided. When the timing of revenue recognition differs from the timing of payments made by customers, the Company recognizes either unbilled revenue (performance precedes the billing date) or deferred revenue (customer payment is received in advance of performance). The Company has determined its contracts generally do not include a significant financing component.
The Company’s contract assets are presented in Prepaid and other current assets on the accompanying condensed consolidated balance sheets and totaled $10.0 million and $12.1 million as of September 30, 2023 and December 31, 2022, respectively. These amounts relate to revenue recognized during the respective period that is expected to be invoiced and collected in future periods.
The Company’s contract liabilities, which are recorded in Deferred revenue on the accompanying condensed consolidated balance sheets, are expected to be recognized as revenues during the succeeding 12-month period. Deferred revenue totaled $8.3 million and $8.8 million as of September 30, 2023 and December 31, 2022, respectively.
The amount of revenue recognized during the nine months ended September 30, 2023 that was included in the deferred revenue balance as of December 31, 2022 was $6.3 million.
Transaction Price Allocated to Remaining Performance Obligations
The Company has certain licensing contracts with minimum guarantees and terms extending beyond one year. Revenue to be recognized related to the remaining performance obligations was $2.4 million as of September 30, 2023 and is generally expected to be recognized over the next one to four years. This amount does not include: (i) contracts with an original expected duration of one year or less, such as advertising contracts; (ii) variable consideration in the form of sales-based royalties; or (iii) variable consideration allocated entirely to wholly unperformed performance obligations.
For each contract, the Company estimates whether it will be subject to variable consideration under the terms of the contract and includes its estimate of variable consideration, subject to constraint, in the transaction price based on the expected value method when it is deemed probable of being realized based on historical experience and trends. The Company updates its estimate of the transaction price each reporting period and the effect of variable consideration on the transaction price is recognized as an adjustment to revenue on a cumulative catch-up basis.
5. Fair Value Measurements
The Company’s financial assets and liabilities that are measured at fair value on a recurring basis are summarized below:
September 30, 2023
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$25,205 $ $ $25,205 
Total$25,205 $ $ $25,205 
Derivative liability$ $ $30 $30 
Other non-current liabilities:
Public Warrants484   484 
Private Warrants 5  5 
Total$484 $5 $30 $519 

December 31, 2022
Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$1,154 $ $ $1,154 
Total$1,154 $ $ $1,154 
Derivative liability$ $ $180 $180 
Other non-current liabilities:
Public Warrants384384
Private Warrants1111
Total$384 $11 $180 $575 
The Company’s investments in money market funds are measured at amortized cost, which approximates fair value.
The Company’s warrant liability as of September 30, 2023 and December 31, 2022 includes public and private warrants that were originally issued by 890, but which were assumed by the Company as part of the closing of the Business Combination (the “Public Warrants” and “Private Warrants,” respectively), which are recorded on the balance sheet at fair value. The carrying amount is subject to remeasurement at each balance sheet date. With each remeasurement, the carrying amount is adjusted to fair value, with the change in fair value recognized in the Company’s condensed consolidated statements of operations and comprehensive loss.
The Public Warrants are publicly traded under the symbol “BZFDW”, and the fair value of the Public Warrants at a specific date is determined by the closing price of the Public Warrants as of that date. As such, the Public Warrants are classified within Level 1 of the fair value hierarchy. The closing price of the Public Warrants was $0.05 and $0.04 as of September 30, 2023 and December 31, 2022, respectively.
As of September 30, 2023 and December 31, 2022, Level 3 instruments consisted of the Company’s derivative liability related to the Notes. Fair value measurements categorized within Level 3 are sensitive to changes in the assumptions or methodologies used to determine fair value, and such changes could result in a significant increase or decrease in the fair value. To measure the fair value of the derivative liability, the Company compared the calculated value of the Notes with the indicated value of the host instrument, defined as the straight-debt component of the Notes. The difference between the value of the straight-debt host instrument and the fair value of the Notes resulted in the value of the derivative liability. The value of the straight-debt host instrument was estimated based on a binomial lattice model, excluding the conversion option and the make-whole payment upon conversion.
The following table provides quantitative information regarding the significant unobservable inputs used by the Company related to the derivative liability:
September 30, 2023December 31, 2022
Term (in years)3.23.9
Risk-free rate4.78 %4.11 %
Volatility97.1 %76.6 %
The following table represents the activity of the Level 3 instruments:
Derivative Liability
Balance as of December 31, 2022$180 
Change in fair value of derivative liability(150)
Balance as of September 30, 2023$30 

There were no transfers between fair value measurement levels during the three and nine months ended September 30, 2023.
Equity Investment
For equity investments in entities that the Company does not exercise significant influence over, if the fair value of the investment is not readily determinable, the investment is accounted for at cost, and adjusted for subsequent observable price changes. If the fair value of the investment is readily determinable, the investment is accounted for at fair value. The Company reviews equity investments without readily determinable fair values at each period end to determine whether they have been impaired.
As of September 30, 2023 and December 31, 2022, the Company had an investment in equity securities of a privately-held company without a readily determinable fair value. During the second quarter of 2023, the aforementioned private company underwent a recapitalization, and the Company received approximately 6,000 shares of common stock in a non-monetary transaction, valued at $nil. Prior to the recapitalization, the carrying value of the investment was $3.6 million, so the difference between the carrying value and fair value was recorded as loss on investment within Other expense, net within our condensed consolidated statement of operations. During the third quarter of 2023, the Company exchanged a receivable for a $0.8 million investment in the new capital structure of the aforementioned private company (the Company received approximately 500,000 shares of preferred stock). The total carrying value of the investment, included in Prepaid and other assets on the condensed consolidated balance sheets, was $0.8 million and $3.6 million as of September 30, 2023 and December 31, 2022, respectively.
6. Property and Equipment, net
Property and equipment, net consisted of the following:
September 30, 2023December 31, 2022
Leasehold improvements$50,726 $50,688 
Furniture and fixtures6,351 6,069 
Computer equipment3,108 5,629 
Video equipment808 792 
Total60,993 63,178 
Less: Accumulated depreciation(47,578)(45,404)
Net Carrying Value$13,415 $17,774 
Depreciation totaled $1.6 million and $2.9 million for the three months ended September 30, 2023 and 2022, respectively, and $5.0 million and $7.9 million for the nine months ended September 30, 2023 and 2022, respectively, included in Depreciation and amortization expense.
Refer to Note 21 herein for information regarding an impairment charge the Company recorded during the three months ended September 30, 2022 with respect to leasehold improvements associated with the lease of the Company’s former corporate headquarters that was fully subleased during the third quarter of 2022.
7. Capitalized Software Costs, net
Capitalized software costs, net consisted of the following:
September 30, 2023December 31, 2022
Website and internal-use software$86,791 $75,871 
Less: Accumulated amortization(64,681)(56,612)
Net Carrying Value$22,110 $19,259 

The Company capitalized $3.2 million and $3.1 million for the three months ended September 30, 2023 and 2022, respectively, and $10.9 million and $9.7 million for the nine months ended September 30, 2023 and 2022, respectively, included in Capitalized software costs. The Company amortized $2.7 million and $2.5 million for the three months ended September 30, 2023 and 2022, respectively, and $8.1 million and $7.0 million for the nine months ended September 30, 2023 and 2022, respectively, included in Depreciation and amortization expense.
8. Intangible Assets, net
The following table presents the detail of intangible assets for the periods presented and the weighted average remaining useful lives:
September 30, 2023December 31, 2022
Useful Lives
(in years)
Net Carrying
Useful Lives
(in years)
Gross Carrying
Net Carrying Value
Acquired Technology1$10,600 $7,929 $2,671 2$10,600 $5,279 $5,321 
Trademarks and Trade Names13111,000 14,306 96,694 14111,000 8,756 102,244 
Trademarks and Trade NamesIndefinite1,368 — 1,368 Indefinite1,368 — 1,368 
Customer Relationships217,000 7,792 9,208 317,000 4,604 12,396 
Total$139,968 $30,027 $109,941 $139,968 $18,639 $121,329 
With respect to intangible assets, the Company amortized $3.8 million for the three months ended September 30, 2023 and 2022, and $11.4 million and for the nine months ended September 30, 2023 and 2022, included in Depreciation and amortization expense.
Estimated future amortization expense as of September 30, 2023 is as follows (in thousands):
Remainder of 2023$3,796 
9. Debt
Revolving Credit Facility