The New York Times Company (NYT) 6 May 182018 Q1 Earnings call transcript

Good morning, everyone and welcome to The New York Times Company’s First Quarter 2018 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please also note, today’s event is being recorded. At this time, I’d like to turn the conference call over to Harlan Toplitzky, Executive Director of Investor Relations and Financial Planning and Analysis. ahead. go Please

welcome quarter and New Times York Thank earnings to conference first XXXX call. Company’s you, the

On the President call Chief today, Officer. Executive we have Mark Chief and Meredith Officer; Roland Financial Levien, Vice Operating President Executive Thompson, Kopit Executive Chief Vice and and Caputo, Officer; President and

Before could course that call, of will we and like differ forward-looking make our you I remind would results materially. this statements begin, actual to management during the

are that Some our included of business and impact in uncertainties XX-K. could the XXXX our risks

In have to presentation With earnings investors.nytco.com. on will Thompson. Mark measures most and addition, available include our at over our non-GAAP provided comparable that, measures, I financial press in the is website we release, will which reconciliations turn to our call GAAP the

Russian XXXX business. up, strong way. and presidential Service for more world. journalists and won our with Pulitzer a for in important the in take strong Editorial every everyone. XX very investment Day, been the marked and public more the for quarter Syrian It’s talent by Reporting, morning world Pulitzer the Section to harassment, subscription best company, notice. continued to sixth faced unfortunately, of Pulitzer profit spoke since Thanks last in And the Harlan, than Press reporting which Indeed meant digital overall We’ve good it for up, media around coverage our sexual ever the today time XXXX year, the Cartooning, strategy the was another The is cornerstone Opinion strikingly we U.S. our revenue May of Pulitzer National World in for of our people Freedom any it remind the a past Pulitzer more and service company. election. than our the this history, honored is to three pleasing And you. perils for about prizes refugees years. in has QX Xrd as in original other series for growth it’s creative the this interference see is illustrated in for journalistic in entire of the company The to Public

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Caputo, to minutes. of in business first for a back call, you’ll few new be a from we whom turning the CFO, time have Now the the Roland hearing

role and in internal accelerate operational appointed and of many interviewed him forward with looking judged Roland this working us for digital really we help because Now, imagination because and combination his to new key and him mastery, candidates able external this I’m to of role. best transition. our we strategic

digital X.X print very story. a our therefore, digital-only quarter, including total quarter, news Crosswords products. We the in the balance and with subscription of product, to a were core subscriptions net total our now now our Total XX,XXX XXX,XXX Cooking Let’s of ended news are digital million. beginning the with subscriptions, remains our digital Retention product We which turn grand of and of X,XXX,XXX subscriptions. a to to added of excess encouraging business. digital

subscription and at In digital-only were was well to $XX Revenue subscription marketing XX% are the a to print year than and same do of continue to cohorts, the their X%. we revenues been from there as subscriptions progress cohorts. up and at retain now subscriptions, over will continue is real quarter into single-copy compared well down further. are our Times post-election We business for a earlier, spend, whom makes as scope the some year least million, earlier while quarters, and as as we to accelerate so brand believe up long investment sense. a less direct both story success recent clearly The Digital nearly have ramping

to turn me Let advertising. digital

of than case often individual said partnerships calls, three in I’ve with and large years say partnerships more strategic ago, and and come individual stream. previous its results increasing model, campaigns, As character off commercial was the the our on reliance means as campaigns on advertising lumpy

highs compared advertising lower revenue to As audiences inauguration variability, first falling got start XXXX in with year-over-year. off this to quarter mean that subdued digital and the quarter the the QX post-election combined X% of with predicted, somewhat a XXXX, of

we expect second by Adjusted do more compared the costs Times same we experienced as rate this in and in a a quarter We’re however, view year-over-year expected rapidly however, digital hear, evolving new solid to as very decline another and continued while in a expect quarter. to be advertising to the confident $XX you’ll in for in quarter the quarter, our of We a pleased we growth earlier, declining desire first biggest we advertising performed products. the our to environment QX not offering, only pipeline, year marketplace, Print trend, the we’re ad operating third those The that quarter, than with revenue in than of success. year in down world’s the X% In will position to the return with as safety XXXX. journalism believe and some we growing invest million Times, our better the us the we like quarter themselves earlier. were digital and brands of differentiated associate digital higher

This a about see year, In revenue profit audio. a subscriptions, television. our like whole earlier. and million in us areas year will overall $XX you I’ve result AR driven by earnings that talked higher turn previous as in to significantly the calls, attention to compared for digital innovation adjusted in VR, $XX Given net growth the million operating of was company particular the

of First us up first our TV. the including independent works, the the projects of Showtime Trump is announced of is Times moving our own have in at the a Content The Anonymous subject. that will and year agreement into an we help end and where the recently coverage Times documentary, And, May accelerate with Administration newsroom film journalism

audio. TV so The Weinstein this first what based our coverage which arrangement film results for of and that the the now, CFO, we’re time first me QX, hand from detail quarter’s the The on journalism on developing over coming more to story. successfully in has The project television expect let soon. But the a Times Roland our guidance big project done to More Times’ news with new planned is for feature do for own is on we our Caputo. coming Daily, Harvey on offering, And, podcast,

you, morning, Thank and everyone. good Mark,

begin quarter excited everyone the thank profitability. like execute I’d its have long-term discussing and for I company the the on by of order the warm that enabling the in subscriber-first morning, over Before come revenue growth to this top-line accelerate my digital further way prospect am to week. I wishes past to strategy

excellence business my the improve operator, to also across to opportunity as Given to a background the look operational forward organization. I continue

in another adjusted one the this As prior $X.XX quarter Now the the earnings quarter, said, We represents reported Company. of operating let’s for in to with get Mark first revenue million strong year. quarter, the period XX% the million operating million. $XX in was diluted with growing with per in Adjusted profit quarter: compared approximately same $X.XX revenues compared subscription in first $XX adjusted profit XXXX. Total digital-only for an the subscription quarter, of quarter the $XX X% the to of increased share

subscription with were elevated to while due not news in ARPU in we as and XXXX on first daily digital-only These circulation On late comparisons the of offset but the cycle price both single the newspaper. Volume to circulation prior subscribers first copy the year, graduate full sequentially when promotions for price. in XXXX cover revenues who the to delivery Sunday XXXX our quarter increased mostly, print declined quarter the revenues. down and early X.X%. compared by products subscriptions were price. initiated daily home off side, subscriptions and reflect increases for of slightly entirely, demand continued Total the single quarter in X.X% post-election declines declines experienced declined difficult declines with copy

in to We continue. expect improving trend this ARPU

our were and luxury, the last February a growth XXXX the February XXXX, Moving to categories This advertising, offset In media, in declined revenues year, by to along in the quarter decline to recent we of compared which digital were noting of grew of well declines digital a boosted issue first similar comparable approximately period. revenue financial X% commercial in March of published benefits. craft million, advertising our the advocacy advertising, partly to review X% $XX as published entertainment X%, in culminates principally to all The Magazine quarter growth product our as while and XXXX growth driven declined completed of driver’s was Because first the affiliate more mostly as points, in in has display, X% that than collective revenue reported driven a trends in in relative was March. XXXX significant by was advertising major renegotiation smartphone both moderated direct-sold versus continued offset business. in than T we Print strength advertising. events as skewed from of offset It’s print and basis, percentage renegotiate the effort showed result while and and desktop referral recommendation resulted compared agreement, February website, multi-year X.X X% categories. declined was March our X% the worth This retail in as monthly that union slightly we the in the total of in considerably this, from the overall year, and January, results Other a these in to advertising was revenue the decrease by monthly while quarter, revenue in quarter depressed a grew lower declines On XXXX. the quarter X% contracts. by advertising this live Wirecutter, lower by which first printing in by were by bargaining business. two amount.

newspaper. to allowed distribution costs has and New future to York the related us Times it production current the and First, of operating reduce

costs through of our to College the quarter, us this quarter. adjusted Point our of In costs. cost facility cases, operating offset distribution partially has one transition further higher our was space Newsday X% be to to related been work which products by the the complete excluded by from we for and transporting the This GAAP reconfiguration were the adjusted first to In College headquarters of recorded In related quarter, the Newsday production third make to $X charge and lower we enables the nearly and operating facilities began available in Point of results. monetize facilities item, which Both rental more income. quarter. from producing both will expense increased costs end printing. million represents increase building it production print commercial Additionally, the non-capitalizable expect our special family costs, compensation and

in floors of recording we leases have this We for expect the anticipate second remaining rental and We second the on floors begin half signed in to income X.X the income recording quarter. year. rental

included within adjusted us, operating to profit our will our this Beginning the rules presented of plans non-GAAP have quarter benefit change immaterial for components pension most adjusted now is operations I Previously, prior on of and have with losses service of prior items changed. as costs We this which, As titled: believe from postretirement credit, periodic gains mentioned our The we’ve quarter’s we other of a operations. service have profit on presented our out of of cost, benefit our results, credits, service pension outside costs. our measure. activity however, interest a net historically item outside adjusted respect to been these Other new results. related amortization fairly be noted, pension reporting benefit the of presented line call, or are fourth to operating with continue as and operating the

approximately been results change for first the of our comparability $X for year’s adjusted first year operating million of million have recast $X.X the The prior of and thereby quarter this XXXX, for for by approximately costs, lowering million $X.X full approximately quarter item Our XXXX, the XXXX. in profit adjusted increased purposes. operating

stock-based compared enacted as XXXX, effective quarter quarter for as the first with of rate a XX% compensation. Our year, the tax well in first from result approximately the late legislation a last benefit tax was as that XX% one-time of was

balance of securities approximately debt Total Moving were at balance cash and capital to lease sale-leaseback marketable principally million. our to during $XXX obligations, the our headquarters increased sheet, million. $XXX related the the building, quarter, ending and

in digits me it increase And open compared in with Total Operating approximately increase to in of to digits, solid to digital of costs for up quarter in third and with with expected XXXX. second outlook with digits, costs mid-single a to questions increase the invest expected Let in we’d Other adjusted XX%. quarter with expected increase in efforts the the we revenues drive to marketing quarter. Overall of conclude the to the happy growth. increase advertising expected in incremental quarter for growth the revenue the low-teens, digital-only advertising are second subscription be to our with subscription while compared second the the decrease XXXX, are to the second mid-single high-single revenues XX%. are expected is decrease as XXXX, with low-single to subscription to are compared return and to revenues are that, quarter expected operating approximately other expected of continue XXXX digits,

our comes ahead go Please Instructions] your And Janedis from with first Jefferies. question from [Operator John question. today

digital about weeks how and between the Mark, providers the news players. you they’re thinking content news a ago, few about talked relationship and

And us your company? this color on going how and to view what is evolve so the growth a creates opportunity little can you larger more for extent a this give to on

can and we of advantage the revenue we those wouldn’t that get Times we is The So, being being or kind when net most draw recent get on and it in the the of to that and marketing want sense, Times we a to think We consumption reduce can about I for we The said an to advertising of the platform, own we prominence in are of of subscription platforms, York about it’s readers and consumption clear deeper both to and to York brand. by work sources. Facebook. destination to from a Times. apps. of that with I advertising data direct we searching that engagement a that John asked think New questions -- made total how into ultimately example They greater about news that prominence Facebook, broadly The distributed overall we’re positive revenue widely say they by the conversation Times New when particular pretty worth New lead a in thinking a web Times context on major to Google, give saying believe wherever revenue. the Facebook starting they us trusted in somewhat York how Facebook because that digital also explicitly they news course, in New deeper a trusted with journalism think but prominence want York their have we, thesis within quite of often good think platforms, a how just We, into ultimately them at on about mobile to but can our them can about And

shift policy months recent need. like us the our we So around are the Subscribe on and Google click are and quality carefully in could dialog us. subscription. the about the of Google our as events boost of certainly I’d ways both And deep will to help of with quite Google to and say examples listening together think change And circle harm first engagement and particular in free we’re arrival Google differentiating well effectively working with news pieces high that

the relationship and say good other big development than months the our the revenue. for is of think this platforms rather Generally, I major less benefit publishers platforms would directly dependent than with I we’re on our recent are net-net, many So, to benefit.

free widen any I separately. still you us Thanks the service, as month maybe from you approach on a Mark to new from do X.X articles and reason months up to you give your lowering I see and news an in, guess And seeing million, are to hoping seeing wrap are can you X it meaning, was net, education? from you demand wall X the XX? good what corporate update

of But encouraged hand didn’t you think one I really say, are But helping don’t cycle is thing that. the details and to combination I extent the the a and marketing numbers in on Australia I to we the really I Canada, other over Meredith, are give the on jump question? mention, just story story you and by U.S. the which new like acceleration the would markets of from new say one. is In to I Meredith the journalism. mean our with subscribers key the new encouraging to coming very international and striking new indeed to why outside of U.K. tactics

a are get Sure. miss in there that starts very were in because to three starts quarter, for the John That I in we may good so quarters had order to we I quarter future. in say, made I think may perfect think part two, us if the of well change -- I because few bode want do. and one first not the accounts. is there, major and That best I in Broadly, me stop questions one or

would did see. be with line broadly testing and amount So from I our meter from to to to the as say we in we would are fair taking of what what results results X XX expected the

convert get to more better. the generally and people gateway you So

can improve you on a there, and are just a mobile room that get see to us is lot to would beginning of quite I we conversion better bit there. say there at work doing running so of continue We’re and specifically

corporate, -- we have places we running business The the of over optimistic both greater being in both over Times stories bit I’ll a on coverage. are them business more general, coverage hired, asked a more corporate very start course education made in York see and week have by reporters day and you of New say investment you more I hard side, can an the the week big in day, think say. quite in about breadth, at We’ve year and of hitting last on more I those room will

what So do of you’ll corporate us I means subscriptions. as think terms more we explore in see that, that

international, focused see then and I asked as back I to think be you good remember but good a the the ability quarter can in and and Europe quarter, launch us internationally consumer to the to international positive off which we’ve that’s pair to and sophisticated half in some of in I’ll very this say this direct price was you play also expect for our with some going around gotten well have we in edu, we do nicely. subscriptions if can’t for which efforts about U.K. experimentation more year.

Doug from from comes Research. Huber next Our question Arthur

talked Roland, same questions. revenues Three I when subscription about and quarter. subs were you mean amount roughly in digital digital year-over-year the ARPU, the up

about about talk question about talking ARPU, you or in just improvement one? you increases are you when talking that’s stabilization, So

we of in albeit If -- at we’ve ‘XX, absolute QX QX versus ARPU. look an sequentially increase absolute Actually increase, got an an but modest, increase

So, sequential on basis. a

impact sounds year as going these the from roll improve think like promos the that’s somewhat ago, continue course of over year? just so to And to you it off a

to new are in is on on ones old folks promotion. The compared percentage biggest of price coming look the that factor the to at

gap the So quarters, now in ARPU, actual seen that see increasing. monthly we’ve ARPU closed. year-over-year we’ve And for the being gap, a seen we number of

if that the like where this world -- guidance, continue think So if the level think experienced we’ve again about at is just what of recently. about purpose a but your -- same acquisition world we you you isn’t

month close month see gap will ARPU and You last to year’s and you’ll the increase eventually between and ARPU see up exceed. catch continue over

Two other quickly. questions

Holy circulation, mean are volume? consider to Given it decrease pretty know the crazy these but at crazy declines think in thunderous to print is that’s volume price point Grail, declines I you print? might too the in I some a

after immediate say to of point it’s a a quite aftermath want was XXXX inauguration do and that election, because the XXXX was think the rather time, I Mark. I it is disproportion. in QX This rollout the unique

the news. in on You the almost views can in obsessive absolutely period the this see intense the Times page focus digital for and same

a but the a the best so We’re still too read today, I It’s strong But it maybe. point And decade, one-off effect. peak. its wouldn’t was quarter strong that had into of much and not in very -- year-over-year one for as comparison. as print

I’ll hand Roland. it So, to

go the look back ‘XX, Now, I you would at and year-over-year. of specifically it Sunday, same make point, was would just if flat QX in I

long have we up like been against a quite time. this comp not in So,

that then on of going sort rental that year finally what range is update like you And in on go and a to other ballpark think you the revenues or income, into us look can so? could

the question part yes. floors first of we’re seven That and these, working roll the house or still of anybody to signed the bought revenues. knows done. to is a on and other got for into to these answer done Well, rented is, additional ever four others We’ve going aren’t who’s an leases apartment the

So, that assumption to but would today. on double number generating than I have make have don’t ultimately we the what necessarily floors income be, of want rental we’ll rent an

a thought slightly is we floors better would doing went out. Which broad well, even I check we maybe say of than what to to is the mean, Doug as we in that I guide. you we’re could want terms give

pleased space. the the with far, rest confident the filling results We’re about very so of

rental So already we’ve much to according to the it’s at going be will income very rough look A reckoner got. plan.

next Huber Research our Partners. comes from And from Craig question Huber

your few Yes. I Hi. start for one, for if for rate tax just this in I’ll you the one-time could. housekeeping expecting are year, items a What company, questions. please? A with

XX%, up between you being could rate as down. our XX% have, be in of if or look think terms Any vary can XX%. I XX% to base individual somewhat at will assumption. rate that, the from But quarter and use You tax a that’s effective good

first obviously in you it? the are the well you or three quarters? below saying the quarter But You year are for for said full that remaining

will don’t three the next which in, way come in quarters. adjustments I know Right.

is So XX%, say number year, base that’s safe I’d for our XX%, the rate. entire

benchmark Yes, as variation we that’s the there -- so on actually you are saying although benchmark a that of purposes. think was for it remodeling like would is often

then over to your you if And could digital switch subs.

international -- was say XX%, Just that we like that can piece XX% the the XX%, of roughly total?

Yes.

but but that did overall higher the for XX%. little better, A about this average in the base quarter, than we entire is bit

Okay. think And then the as digital kind the addressable you of Mark market out for here, subs.

your just to terms little global you to help years? you how are large people get dream to? five budget on NewYorkTimes.com a millions a Let’s subs. now on I’m think trying from I of if out also number for X do get digital bit how years in Where out could many access standpoint? do What of possibly you thinking think thinking paid this the site just people, from a think guess basis on of [indiscernible] and you

to We us. month, the know XX are that depending million, XX people on coming outside U.S. from the million XX million,

subscribers aspiration The overall addressable much that relative of in publicly grow think group the larger the continues base. command And strongly. market subscribers in to of English, deeply if very of or reach. XX we world are talked kind So we need hundreds college more domestic would of an and that of wouldn’t with category, international of acceleration, you to of straightforward a in these say, a penetrate of market, that an let’s cohort subscribers there where that’s and had is say rough is indicators percentage of with but about much, current the The you many subscribers. are people subscribers. evidence Times of I past surely around degrees, The some of people know the simple, incoming digital I’ve domestic to international good to And millions for slowly, subscriber million potential and that, there a increasing, also

should opinion journalism, other kind around I now that small steps forward of got that about print writers, the scale in I market, journalists we new of events relatively in progress that of around and more making that order successful international believe and precise how large given can we’re now number and how market, some got to enormous in pricing, we than and given the want addressable our the of market and taking we magnitude, And around continue more you profile, to grow a tactics a of modest think I new I these we’ve encourages very we both in believe tactics million to the and the investments markets, apply, often to think up today. target. the But -- than as digital X.X I mean, say, grossed subscribers substantially. said increase rather

increase So when XX time, the Xx subscription. we more I’ve Xx seeing over increase, in recognizing Executive, about already that think about than million, talking Chief we’re been we’ve

in a see which this grow and indeed fanciful, for grow same model way, potentially me, So, scope for will not costs rate. at without being I think is to growing the there a the great direct of deal to

attractive costs well. real with even at about So the margin, with an -- the -- contribution of when associated as the we business potential for think growth marketing profile a level growth,

questions may. And if also two I more

the if talk looked guys? for extra works about digital of the just roughly $X.XX ARPU in is could first you the to like week subs quarter, it you how that you quarter. the the versus It up math roughly fourth was your If adjust number fourth us the quarter,

don’t want a I We Craig, we disclose we revenues. disclose number disclose. to -- say, Well the numbers for subscribers, not obviously

out I So, say. would calculated, get the

not can people just there, extra confusion that. just week, so want hearing, that your thoughts I pat out us, a just on And to hear Yes, my question... last

must there be I’m address there. we Do is looking frowning issue the at weeks? want Can you Roland, the address -- to

this at no a like Sounds point.

Are Mark. you talking to sorry, me, I am

high is Yes. broadly got question what I’m asking. fundamentals is on people improvement a reason you’re an of -- proportion sure you and a understand the a being price. more in very price. I to we into you. full coat higher successfully on that big about the the that, very want being -- the the proportion say answer had offers in I And the are for what point earlier full I of are we mean, ARPU, heard not file because you we those converting around of that which

this are So improvement the of ARPU. continue extent file thing in and although in about digital look the undoubtedly, clearly our we in the interested price. first to when a to the as important we coming think can would model, add in see to That positive more say The story. an aspect we seeing paying again, I XXXX, well, are going if I business. is grow total ARPU what this story naturally let’s year, ARPU in is ahead to think half accelerating be revenue, rest only which we to their when we to we of I’m and we on people so mostly strongly the have the successful is,

pressure a side, believe very digital know of our where of certainly point business numbers digital as and that we downward grow on We print as to grow print as subscribers, our to ARPU, strong on whole. in pricing from We that business revenues So have the amount has as a total we’re power. happy, where strongly. well. continue to I’m long very the the trying

price done and when to encourages churn. implementing -- do we’ve excessive testing we will to move without ARPU are as and believe such by you able we us decide, We as that want to rises be

in managements with ARPU. feel very of So, the would I situation overall company, the of just say, and in I comfortable terms

we’re -- quarter full price mentioned as just XX being weeks a smooth see about in percentage on XX weeks the I of the imagine real signing is XXXX, main the weeks. how were XX our plane smooth to before, to weeks and question Whether affect versus promotion paying is for What of -- XX this. the kind XX a of you talking promotion, being on of subscribers driver, folks folks cumulatively driver really which is really XX fourth up offer basic on still offer together I thinking someone’s the ARPU. relative and about the percentage get Craig, for XX to there weeks if weeks, XX don’t of mixing weeks.

the trend to imagine trending have as kind change price, going more snake, mentioned people that’s that. going And not before. So, ARPU full if of to going I on be as you continue we that the to is mouse upwards, do to the

Thank that. you for

if second the you I more the extra marketing the look outlook a on could at mid If we took guess, costs on cost one cost please just up if me the is Let for single-digits. I quarter, of your because adjust -- of cost. that chunk similar,

If mean driving more them? marketing to? What’s backed cost I year-over-year? it am get is I like to you trying costs, guess, flat out

costs. things. Yes. couple just It’s It’s a not the marketing of

-- places investing been products. cost due of portion and in has -- growth in supporting in and for also a were decent the additional couple to hires digital new is initiatives journalism that a growth those We our and

So, important is there’s going although marketing, a marketing an part. few things just it’s not on,

from And Alexia our next question comes Morgan. Quadrani JP from

I will rest that. go like look positive numbers own numbers a -- we helpful you give kind Just anymore, you you look of know the but that of stay the some after quarter sub same commentary negative, digital on in on on conclusion it’s for the don’t the patterns data more follow-up what one missing year. a growth and full give are of make either going sub I subject, for appreciate. be like commentary anything number campaigns, sort gave like saw sub the marketing have of the us whether better but data the of points I’d guide a I ahead that give might -- you sort of encouraging, that very might just sort ahead. Yes, or And points which year? lot Of more of positive us to then to our

part think midterm that, are subs robust Sure. -- new say in vigorous year impact we we we few XXXX aftermath. did of on the the in will an immediate a as One, very have it that with going the to election digital present presidential cycle the is and back think to and the things. we be see I’ll so audience take and expect

also market, we virtuous more more better to getting versus you’re would of driving of what to in we’re see Alexia, about I So sort ability think media behavior. get play messaging that. the so think mix getting And meaningful our effective right much the marketing that hard right cocktail versus how going I are call thinking at subscriptions. I role we brand drive ad think as middle more we’re and direct about I we sophisticated that funnel

of So more that logging closer or up things to know signing like getting gateway the and the registering them people form one make newsletters in engagement deeply subscribe, we also getting for engage story in them where Times. to with have and they to more doing read

all more see So unleash to you’re us around going of that. effort

like then just per this worse guide. gets bit causing anything gets your side, the more on deltas a one it quarter it coming sort guess takes really should both the little bit a advertising And worse those in where we mean of better? gets in of and QX bit better what’s before a it current of the looks it before particularly on I know bad digital

Sure.

year, get the calls I’ve large time partnership said have about half think the are media more QX, partnership amount driven election. because lumpier, optimistic first depression some and of -- we’ve why solid return I I year. takes inherently I first do business in seen back that on half also seen of We’ve into guide year. year, think explains comping of saw of market. pipeline against a is getting think the the the story in partnerships it a Mark that’s the sort has half in previous and said to the full first it for In by just half of back We the quite the page the business and so views this the pipeline to sort commercial is our to quarter in more fair of in the that we into visibility growth the of the and we

continues. say We the feel from see of than desktop CPMs we than that category. I others There -- shift pressure in I year, we there the first parts and and lower then half shift generally half to I would market. of the of faster in But and year year that of say easier the would would exposure is categories direct mobile a structural say and real the many full comps expected. in have different pattern every assumed are decline the some those also we would in in be happening the to we continuing small estate. meaningfully or those categories will to think in in And higher mobile call have get and I declines are the the back and number year. We’re of we in mobile audience than that declines, play virtually like first classified just shift what category the half

than of going I am single the say the potential about number remain us. thesis, to many, for partnership. of of confident a we of I of be There that sort XX Marketing bucks dollars, - about worth of and so campaign I with Chief we we so as digital the many can more large-scale conversations partnerships to up signing where millions is positive the had really a world, campaigns are very some about to But individual many, area call our million Officer advertising like was and time, us a

and them. there We seeing are are definitely we

bigger New now. just a right. on things are all selling. safety, marketers those York That’s fewer in would ad or frankly seeking things pages and are to that Brand them of that And more point. Mark’s beautiful The deep engagement all is canvases Times I right

back I’ll first-party couple that the I haul. why data call, mentioned that’s and may the promising this have a introduced the very of and for for on and optimism just say, in the grounded also last long the are products half new So, of we data. year our

beginning The and formal half on this front very having market and first the on context the in we’re to to of those where of we and the those our Media pressure the a our impact can what new feel based we week the know of year, the we’re business mobile. specifically, the in So we what introduction get shift about Times optimistic because at people engagement of

question next our Venkateshwar Kannan from comes Capital. from And Barclays

a Just couple.

that a of of in to later for line the temporarily that seen initiatives? trend as segment. and educational trend growth the on the pricing quarter. into XXX,XXX deeper a second a you campaigns the sequential in accelerate seen these it the that lines you during should that reverse the say mentioned Does could First follow-up. Would internationally bigger you on sub fair year, growth then push three ramp I and improvement I means marketing perspective, some And derivative have from ARPUs couple the focus Meredith, up a have think as the last on the we that quarters be we’ve odd for of that

take Let first, said in and prior this pricing me I calls.

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your lines. You may disconnect now