BuzzFeed projection cut as 2015 target is missed
Company fails to hit $250m revenue projection after generating less than $170m
Buzzfeed has halved its internal revenue target for 2016 from $500 million to $250 million after it missed its 2015 revenue target. Photograph: Tomohiro Ohsumi/Bloomberg
BuzzFeed missed its revenue target for 2015 and has slashed its internal projections for 2016 by about half, raising questions about whether the online news and entertainment network can meet the sky-high valuations put on new media groups.
The company had projected about $250 million in revenue for 2015 but generated less than $170 million, according to three people with knowledge of the situation.
The company has halved its internal revenue target for 2016 from $500 million to $250 million, they said.
BuzzFeed disputed the figures but declined to give its own numbers.
People with knowledge of the company’s operations have expressed concern that its business model, which involves creating custom content for brands, is not scalable.
– Copyright The Financial Times Limited 2016