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BuzzFeed (BuzzFeed) Gross Margin % : 86.37% (As of Dec. 2023)


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What is BuzzFeed Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. BuzzFeed's Gross Profit for the three months ended in Dec. 2023 was $29.6 Mil. BuzzFeed's Revenue for the three months ended in Dec. 2023 was $34.3 Mil. Therefore, BuzzFeed's Gross Margin % for the quarter that ended in Dec. 2023 was 86.37%.

Warning Sign:

BuzzFeed Inc gross margin has been in long-term decline. The average rate of decline per year is -2.5%.


The historical rank and industry rank for BuzzFeed's Gross Margin % or its related term are showing as below:

BZFD' s Gross Margin % Range Over the Past 10 Years
Min: 43.27   Med: 46.47   Max: 56.34
Current: 43.66


During the past 6 years, the highest Gross Margin % of BuzzFeed was 56.34%. The lowest was 43.27%. And the median was 46.47%.

BZFD's Gross Margin % is ranked worse than
67.12% of 520 companies
in the Interactive Media industry
Industry Median: 60.72 vs BZFD: 43.66

BuzzFeed had a gross margin of 86.37% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for BuzzFeed was -2.50% per year.


BuzzFeed Gross Margin % Historical Data

The historical data trend for BuzzFeed's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BuzzFeed Gross Margin % Chart

BuzzFeed Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial 52.71 56.34 48.15 43.27 43.66

BuzzFeed Quarterly Data
Dec18 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 72.81 29.50 35.17 45.65 86.37

Competitive Comparison of BuzzFeed's Gross Margin %

For the Internet Content & Information subindustry, BuzzFeed's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BuzzFeed's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, BuzzFeed's Gross Margin % distribution charts can be found below:

* The bar in red indicates where BuzzFeed's Gross Margin % falls into.



BuzzFeed Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

BuzzFeed's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=110.3 / 252.677
=(Revenue - Cost of Goods Sold) / Revenue
=(252.677 - 142.366) / 252.677
=43.66 %

BuzzFeed's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=29.6 / 34.324
=(Revenue - Cost of Goods Sold) / Revenue
=(34.324 - 4.679) / 34.324
=86.37 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


BuzzFeed  (NAS:BZFD) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

BuzzFeed had a gross margin of 86.37% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


BuzzFeed Gross Margin % Related Terms

Thank you for viewing the detailed overview of BuzzFeed's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


BuzzFeed (BuzzFeed) Business Description

Traded in Other Exchanges
Address
229 West 43rd Street, New York, NY, USA, 10036
BuzzFeed Inc is a tech-powered, diversified media company that reaches hundreds of millions globally through its cross-platform news and entertainment network. The company produces articles, lists, quizzes, videos, and original series; lifestyle content through brands including Tasty, the world's largest social food network; original reporting and investigative journalism through BuzzFeed News and HuffPost; an industry- leading affiliate business, strategic partnerships, licensing and product development through BuzzFeed Commerce; and original productions across broadcast, cable, SVOD, film and digital platforms for BuzzFeed Studios.
Executives
Johnson John S. Iii other: Member of 10% Group C/O CRM MANAGEMENT, PO BOX 778, NEW YORK NY 10013
Matthew Omer officer: CFO C/O BUZZFEED, INC., 229 W. 43RD ST., NEW YORK NY 10036
Comcast Corp 10 percent owner ONE COMCAST CENTER, PHILADELPHIA PA 19103-2838
Janet L Rolle director 75 WEST 125TH STREET, NEW YORK NY 10027
Joan Lordi Amble director AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
David Arroyo officer: Chief Legal Officer 229 W. 43RD ST., NEW YORK NY 10036
Daniel Weinstein officer: Chief Accounting Officer C/O BUZZFEED, INC., 229 W. 43RD ST., NEW YORK NY 10036
Marcela Martin officer: President C/O SQUARESPACE, INC., 225 VARICK STREET, 12TH FLOOR, NEW YORK NY 10014
Johnson Bf, Llc other: Member of 10% Group C/O CRM MANAGEMENT, PO BOX 778, NEW YORK NY 10013
Adam Rothstein director, officer: Executive Chairman 101 CROSS HWY, WESTPORT CA 92610
Gregory Coleman director C/O MEREDITH CORP., 1716 LOCUST STREET, DES MOINES IA 50309
Phuong Dao Nguyen officer: Publisher C/O BUZZFEED, INC., 111 EAST 18TH STREET, NEW YORK NY 10003
Christian Baesler officer: Chief Operating Officer 111 EAST 18TH STREET, NEW YORK NY 10003
Felicia Dellafortuna officer: Chief Financial Officer C/O BUZZFEED, INC., 111 EAST 18TH STREET, NEW YORK NY 10003
Rhonda Powell officer: Chief Legal Officer C/O BUZZFEED, INC., 111 EAST 18TH STREET, NEW YORK NY 10003