Gawker Gets a Look at BuzzFeed’s Financials

The J.K. Trotter-Tommy Craggs diagnosis: 'Good.'

The latest Gawker item of note is about BuzzFeed, which is also a website.

Someone tipped J.K. Trotter to BuzzFeed’s full financials for 2012, 2013 and the first half (unaudited) of 2014. Among the many intriguing line items is the bell curve of editorial expenses:

In fiscal year 2011, BuzzFeed’s editorial budget was $858,780
In 2012, it was $4,724,608
In 2013, it was $11,739,790
In the first 6 months of 2014, it was $10,449,422

And, for the same period, the “cost of revenue.” Trotter concludes that these figures primarily encompass the purchase of referred Web traffic:

In 2011, BuzzFeed’s cost of revenue was $662,436
In 2012, it was $3,627,594
In 2013, it was $9,907,232
In the first 6 months of 2014, it was $5,818,808

For expert analysis, Trotter and item co-writer Tommy Craggs turned to Jean-Louis Gassée, a one-time Apple executive, as well as CB Insights’ Michael Dempsey. Read their thoughts here. A solid piece of journalism from revamped Gawker, picked up immediately and simultaneously by both Romenesko and Mediagazer.