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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.
The business is unprofitable at the operating level (-25.85% margin). The thesis depends entirely on whether and when it reaches sustainable profitability.
Revenue declined 2.4% YoY. Margins deteriorated 13.5pp alongside, both lines moving the wrong way.
ROIC dropped from -7.52% to -25.00%, capital efficiency is deteriorating. Negative free cash flow of -$21M. The business is consuming cash, not generating it.
Profitability & Returns
Revenue (TTM)
$181M
▼ -2.4% YoY
Net Income (TTM)
-$60M
▼ -471.8% YoY
Op. Margin
-26.34%
▼ -13.5pp YoY
ROIC
-26.21%
▼ -17.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
-$19M
▲ +3.1% YoY
Op. Cash Flow (TTM)
-$17M
▲ +9.3% YoY
Net Debt
$74M
Cash & Equiv.
$7M
5Y CAGR: -10.4%
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