BuzzFeed: A Compelling Turnaround And Trading At Its Lowest Valuation In History

Summary

• BuzzFeed reported Q4 FY 2024 Adj. EBITDA of $10.9 million, 68% higher than initial guidance, and set promising FY 2025 revenue and EBITDA guidance.
• Despite a clear turnaround and improved balance sheet, BuzzFeed trades at its lowest valuation due to market conditions and lack of sell-side coverage.
• Major former media investors exited due to strategic shifts, causing high volatility and preventing a stable shareholder base, despite improving business fundamentals.
• Management successfully defused significant debt without diluting equity, and improving user engagement metrics suggests a strong business turnaround, yet the market remains unaware.