Slide 1: BuzzFeed Investor Presentation June 2021
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed Investor Presentation June 2021
Slide 2: Disclaimer
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed This presentation (together with oral statements made in connection herewith, the “ Presentation ” ) is for informational purposes only to assist interested parties in making their own evaluation of the proposed business combination (the “ Business Combinat
Slide 3: Forward-Looking Statements (Cont'd)
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed Forward - Looking Statements (Cont’d) New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. Fact ors that may cause actual results to differ materially from current expectations include, but
Slide 4: Table of Contents
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Table of Contents Introduction 5 About BuzzFeed 9 Foundations for Growth 17 Financial Highlights 27 Transaction Overview 31 Appendix 36
Slide 5: Introduction
STRICTLY PRIVATE AND CONFIDENTIAL STRICTLY PRIVATE AND CONFIDENTIAL Introduction 5
Slide 6: Transaction Overview
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Transaction Overview • BuzzFeed Inc., ( “ BuzzFeed ” ) and 890 5th Avenue Partners, Inc. ( “ 890 5th Avenue ” ) have executed a non - binding term sheet setting forth the potential terms of a business combination • Definiti
Slide 7: Why 890 5th Avenue is Excited to Partner with BuzzFeed
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Why 890 is Excited to Partner with BuzzFeed 890 5th Avenue’s investment thesis focuses on leveraging our collective operational expertise to add strategic value to a leading digital media company positioned to benefit from
Slide 8: Today's Presenters
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Today’s Presenters Adam Rothstein Executive Chairman x Co - founder and General Partner at Disruptive Technology Partners x Independent Director of Roth CH Acquisition Companies I,II, and III (NASDAQ: ROCH, ROCC, ROCR) x Ov
Slide 9: About BuzzFeed
STRICTLY PRIVATE AND CONFIDENTIAL STRICTLY PRIVATE AND CONFIDENTIAL About BuzzFeed 9
Slide 10: Brands that are Defining Culture
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Brands that are Defining Culture 10
Slide 11: Leading Platform for Digital Content and Commerce
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Leading Platform for Digital Content and Commerce Source: Management, company estimates. Financials are Pro Forma for Complex, excludes go90. (1) Comscore , October 2020 when compared to Core competitor set. Core competitor
Slide 12: Expansion and Diversification of Business Model
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Expansion and Diversification of Business Model Note: Adj. EBITDA excludes stock - based compensation and other net income/expense. Revenue CAGR and Adj. EBITDA include Complex, excludes go90. (1) Deal signed in March 2021
Slide 13: Highly Attractive Acquisition of Complex
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Highly Attractive Acquisition of Complex # 1 reach amongst males ages 18 - 24 • Expands further into new audiences and verticals • Deepens engagement with existing demographic • Cements opportunity as defining youth media p
Slide 14: Aligned with Massive Secular Trends
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Aligned with Massive Secular Trends Video & Social Video advertising contributes to traffic growth, increases average session time, attracts potential customers and increases sales 86% of users would like to see more video
Slide 15: Benefitting from Underlying Digital Tailwinds
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Benefitting from Underlying Digital Tailwinds Accelerating Shift to “ All Things Digital ” Massive acceleration in the shift to digital across content and commerce Evolving Privacy Landscape Privacy regulation increasingly
Slide 16: Key Investment Highlights
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Reached inflection point with accelerating, sustainable and profitable growth Key Investment Highlights Demonstrated platform for both organic and acquisition - led growth Innovative management team that has been at the for
Slide 17: Foundations For Growth
STRICTLY PRIVATE AND CONFIDENTIAL STRICTLY PRIVATE AND CONFIDENTIAL Foundations For Growth 17
Slide 18: Portfolio of Premium and Emerging Digital Content Brands
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Portfolio of Premium and Emerging Digital Content Brands 18 Source: Comscore , Feb 2020, Comscore , Oct 2020, Nielsen Digital Content Ratings, Monthly Data, Oct 2020, Complex materials and reports, BuzzFeed internal survey
Slide 19: Machine Learning Powers a Scaled Tech Stack
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Creating content requires data, technology and scale All are key competitive moats and differentiators of BuzzFeed’s relationship with audiences Machine Learning Powers a Scaled Tech Stack Source: BuzzFeed Client Event Trac
Slide 20: Growth Flywheel is Highly Scalable Across Platforms
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Growth Flywheel is Highly Scalable Across Platforms 1 3 4 2 20 Web Video Mobile Social Data - Driven Platform is Highly Repeatable Cross - Platform Distribution
Slide 21: Massive, Deeply Engaged Audience in Key Demographics
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Massive, Deeply Engaged Audience in Key Demographics 21 Unique Visitors Time Spent (Minutes) Time Spent per Unique Visitor Unrivaled scale, reach and ability to successfully engage younger audiences with compelling content
Slide 22: High Growth Commerce Opportunity
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Enabled by unique approach to content Further monetization of high value audiences Inspiration driven Rapid growth with high margins High Growth Commerce Opportunity Note: Historical financials are based on unaudited statem
Slide 23: Powering Organic Growth of Brands: Tasty
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL In five years, BuzzFeed has built Tasty into a scaled, cross - platform brand with multiple revenue streams Powering Organic Growth of Brands Source : Tubular Intelligence, Oct 2020, BuzzFeed Looker Data, NiemanLab, Jan 201
Slide 24: Proven Consolidation Platform
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Proven Consolidation Platform Source: Comscore , Feb 2020, Comscore , Oct. 2020, Complex materials and reports. Monthly Unique Visitors, Monthly Minutes and Minutes Spent by Average Unique Visi tor represent Gen Z + Millenn
Slide 25: Consolidation Strategy Driving Accretive Results
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Consolidation Strategy Driving Accretive Results Target Criteria Engaging Content Creation Additive Audience Dynamics Influential, Iconic Brands &UHDWHGE\-XDQ3DEOR%UDYR IURPWKH1RXQ3URMHFW Monetization Opportunities Value Cr
Slide 26: Our Scaled Model has Powered Network Effects
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Our Scaled Model has Powered Network Effects Creating Competitive Barriers and Driving Growth Leading Audience and Brands Data - Driven Tech Platform Scaled Cross - Platform Distribution Diversified Revenue Model (4) Growth
Slide 27: Financial Highlights
STRICTLY PRIVATE AND CONFIDENTIAL STRICTLY PRIVATE AND CONFIDENTIAL Financial Highlights 27
Slide 28: Key Financial Themes
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Key Financial Themes 28 Note: Dollars in millions. Unless noted, figures are Pro Forma for Complex. (1) Not Pro Forma for Complex. (2) Top 5 Clients (of 2020, with comparison to 2019 spend) include a Leading Insurer, two Le
Slide 29: Accelerating Growth Profile with Continued Diversification
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL $176 $198 $261 $316 $387 $463 $202 $166 $165 $187 $221 $270 $47 $57 $95 $150 $225 $330 $425 $421 $521 $654 $833 $1,063 2019A 2020A 2021E 2022E 2023E 2024E Note: FY2021E and beyond includes HuffPost. Pro Forma includes Compl
Slide 30: Combined Company Financial Summary
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Combined Company Financial Summary Revenue ($) Revenue Growth (%) Complex Pro Forma BuzzFeed Adj. EBITDA (1) ($) Adj. EBITDA Margin (1) (%) Note: BuzzFeed FY2021E and beyond includes HuffPost. Complex numbers excludes go90.
Slide 31: Transaction Overview
STRICTLY PRIVATE AND CONFIDENTIAL STRICTLY PRIVATE AND CONFIDENTIAL Transaction Overview 31
Slide 32: Sources & Uses / Pro Forma Valuation
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Sources & Uses / Pro Forma Valuation $ and share data (except share price) in millions 32 Estimated Sources & Uses Illustrative Pro Forma Valuation Illustrative Pro Forma Ownership SPAC Sponsor Shares SPAC Public Shareholde
Slide 33: Comparable Company Benchmarking Analysis
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL 24.6% 26.3% 25.9% 16.7% 13.0% 10.5% 51.8% 42.8% 26.5% 26.1% 0 ZNGA ETSY IACA IAC NYT SNAP PINS FB TWTR 18.0% 29.2% 27.7% 25.2% 17.0% 7.2% 52.6% 29.9% 28.7% 20.4% 2022E Pro Forma Adj. EBITDA Margin (%) 2020A – 2022E Pro Form
Slide 34: Enterprise Value / Pro Forma Revenue
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Enterprise Value / Pro Forma Revenue Assumed EV of ~$1.5B Comparable Company Benchmarking Analysis (Cont’d) Digital Media, Content & Commerce Social Platforms Source: Capital IQ as of June 18, 2021. Note: BuzzFeed metrics p
Slide 35: Historical BuzzFeed Management Projections
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL Historical BuzzFeed Management Projections '20A - '24E 2019A 2020A 2021E 2022E 2023E 2024E CAGR Revenue Advertising $176 $198 $261 $316 $387 $463 24% % Growth 13% 13% 32% 21% 22% 20% Content 202 166 165 187 221 270 13% % Gr
Slide 36: STRICTLY PRIVATE AND CONFIDENTIAL
STRICTLY PRIVATE AND CONFIDENTIAL
Slide 37: Appendix
STRICTLY PRIVATE AND CONFIDENTIAL STRICTLY PRIVATE AND CONFIDENTIAL Appendix 37
Slide 38: GAAP / Non-GAAP Reconciliation (Adj. EBITDA)
STRICTLY PRIVATE AND CONFIDENTIAL BuzzFeed STRICTLY PRIVATE AND CONFIDENTIAL GAAP / Non - GAAP Reconciliation (Adj. EBITDA) 38 ($ in millions) 2019A 2020A Net Income (1) ($29) $4 go90 profit (29) (14) Income tax provision (benefit) 3 (2) Interest expense 0 1 Interest income (2) (0) Depreciation and