The New York Times Company (NYT) 5 Aug 202020 Q2 Earnings call transcript

Good morning, and welcome to The New York Times Company's Second Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Harlan Toplitzky, Vice President, Investor Relations. Please go ahead.

to conference York call. welcome quarter Company's and earnings XXXX you The Times New second Thank

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

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

are business in uncertainties quarterly that could XX-K of updated our Some risks as our XXXX the and reports impact on included in subsequent Form XX-Q.

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

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cash The at quarter $XX our securities sheet, million with a remains balance first $XXX ended the of and revolving of the debt quarter. an to free line credit $XXX Moving compared million marketable the balance available. company with million, increase

approach As as the through managing to us I financial in strong we said with growth has economic fallout flexibility in continued continue we subscription-first results of our by balance confidence last conservative quarter, produced business and taken crisis. tandem the sheet even COVID-XX our provided manage the consistently a pursuing our strategy, have the

the closed As week $XX Serial payment last closing. million Meredith included at an announced noted, and which we approximately acquisition cash of Productions

third subscription of the expected digital advertising revenues with approximately approximately advertising decrease XX% decrease with third me with increase our of approximately with to the and of assumptions compared to outlook XX%. are between third to expected for XX%. to of revenue quarter our Let which the knowledge subscription current increase impacted evolving the revenues by to pandemic. expected quarter on compared XX% is quarter XXXX the Total XXXX, expected and XX% conclude based be could are XXXX are effects and digital-only Overall revenues

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question comes J.P. from [Operator Morgan. go Alexia ahead. Quadrani Please Instructions] First of

Thank you we and much. And will you your accent. Mark, very miss

Thanks, Alexia. Thank you.

luck of ahead. best So,

of heightened can sense others. the news guess, in point, the all in you it is the how I saw growth just bit trended, and I any us pretty you the it if it the couple know people a a but engaged And questions, sort certain months any was straightforward, same given or where quarter? usually in versus of terms I in Just guess out? curious guess, of at just color can sub broadened more on it you really comment with give news provide on whether I quarter that very don’t month-to-month, volatility all digital color progress, COVID engagements

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obviously what mean, has said right. I Mark is Yes.

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And resume may a then you tenured that during the on when I know here? the any you crisis thoughts pause price put increases?

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a the the into And terms audio, returns then investments versus the audio, the I side are there and more well other? like TV lastly, video what podcasting, given one in your the really on sense an dollar maybe big sort of TV quick comments versus in just is of the to in put question any in of mean, the as incremental a

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much. Thank very you

The from Kannan Please Barclays. comes of next question go Venkateshwar ahead.

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why timing begs question guess of from it perspective? So a I the now

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best. all lot strategic obviously the a Meredith are are still areas there and in opportunities. of your terms Thank And, you, there perspective, priorities, growth from Mark, of

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answer? organic own more model a much add to So, Roland, in important. becomes to regi But say, the would I channels our anything you want that

inside did have question I Kannan, a that you address retention can if you question? like. that

Yes.

So…

look you cohorts, churn if was, people for changed. behavior different question as promos, the at that has rolled The have off across

you think. if could help So, us

XX $X So, offerings we are a months week. into of the first the now

little curve, at folks identical. slope prior you a almost that of a that the for up almost but cohorts, if intermediate folks a better to then, at that a up price, full each an years. feel if months they the more step to price. two bit COVID $X on stepped curve look retained cetera recent the identical at we fits little we than look And could curve it’s on alone a and of how fit nearly XX cohort, who top you the could and That we it So you for retain in that number it have in they are massive et and while people of almost right QX, at point and also. back early, still so, subscribing retention curious other it’s week, fit are curve on retention When you back further, we of we offers top folks the

we’ve split as tenths matter time or happy we And either two seeing quarters. makes a that are many been retention we has our the numbers growing many, growing overall many, us a these one and and So, way entire base, churn how for cohorts. of percent no been the quite growing within

quarter. base story increase So, it’s who good for folks cohort good tenured the is who the also retention on last price price very came folks your From – a and mean stepped in for it’s discount, got good. it get increase very I very a a up

great. That’s so you Thank much.

from comes ahead. go Vasily of Cannonball next The Research. Karasyov Please question

I the the you. strong you order anything – base would several very or to forward to sometime you like put is hear, magnitude, if would morning. sub interested that goal XX how Thank you’ve it for of growing, to subscriber comment timeline say? what maybe given and Good have million was wondering the be ago the on

months XX milestone million quarter of to run. in people I’ll with Meredith a to few go XXXX, was QX February by that XXXX, think, announced two-thirds address the on Well, goal with first, executives crazy so That’s close call – later, the that other XXXX. should the more it early slightly was XX a why a I high five it. that the in I clearly company already again totally years quite than I for think number. way

a always think terminal I continues strategy milestone. a not now, and would plateau. also it’s when is immense probably plateau looks gains. is it kind the like of do say assuming of looks like It a when target we ecosystem, strong the opportunity away model falling my to competition, deliver the that both audience in about So, great of know to million the a We a view the a an has the don’t a product of journalism got but I the in circle virtual attractiveness of or company that lot underestimate. was the It want going going was given and XX to just engagement. prediction like of terms kind

months as what think I So, like the company. as milestone answer is, felt recently the a for ago, we stretching XX really

eminently talk Now to the you I should little you call achievable about that on should well. are – several but this, within pass timetable subscribers baton But Meredith, pretty you million obviously a because well as get, got set. more to our we as you’ve was the much, we gross, there feel this in

add. Yes. a to I whole lot know I have don’t

market. you and subscription We us we and have others in market see is for I’ll large. journalism to think – got the just of most least think, opportunity XXX for I Mark. think we be participate that the at to big it, say, it’s million

right. All Thank you.

of comes Belton go next question ahead. The from Please Evercore. John

Thank you.

to going am And miss I Mark, Good to Meredith. luck. you. congrats First,

pricing. couple on a have I So,

you stepping are versus the all So full a have all made anniversary. cohorts, a strategy about price these different number intermediate terms first, of $X price retention up across the you subscriber the comments just the week in customers, of at changed you Roland, year for one given

I to ARPU any continue a on basis in for imply international does international then, expect on Thanks. on a said in think the that And strategy. note, you sequentially that forward? moving in X.X% we just quarter. update prepared Should what remarks the improve related pricing Now, year-over-year the And that quarter?

questions. for Sorry all the

can I of if see all retain I’ll them. Okay.

the as full stepping terms in step-up step-up to a on are a to pricing the to we the which move meaning percent are low price. up pricing of we So, that strategy means asking pricing, presumably

But, We are point, that XX-XX. model approximately making have is, AI still we progress at the on this XX-XX on Where – the off is come we don’t targeting picking. that amount the that. percentage should that we evidence

we reveal one the for the price So still pretty countries. discounting versus think first place. the that’s I lot in the ARPU fact in pricing right intentionally expose strategy of are to did that’s in heavily obviously, that Right, We the time domestic change international, all It’s not internationally. a countries.

markets. goods to low, So, we to countries those want a sell with where similar lower basket price priced of is in GDP or

key the $X bringing to the on that up. it’s week very we’ve is, and cycles. in promotion subscribers the On We’ve successful but use been the yes, last new domestic X.X%, here in on are we able a also John, prices the going on is to how continue and to down depending we many ARPU bring side, both subs news so, few step and the been proved

bringing quite So, subscribers, very ARPU are on yet. large expect I don’t new long we to as as these stabilize amounts of

thanks. soon. And to All talk Got right, it. you

The Partners. Research next question comes go Please from Craig Huber of Huber ahead.

did want a I years. Mark, to heck of last Thanks. Good morning. job a Yes. you say

and are the congratulations position. on miss to you new We going Meredith

Craig. Thank you. Thanks,

you. Thank

Mark, years And where about guys could want continue to is, if go of things? the right is basis, it forward a now? area journalists? in on on speak that where number started company was content maybe I Meredith maybe question invest ago, the you just The first you side number of the have, assume you My when

Yes. Sure.

Craig. course, Of

slightly more the at front in on of probably changed that so got haven’t I X,XXX say new or want XXX me, by joining that’s So, at the X,XXX the in than or that the XXX time. moment to time across exact than at and we number are I premium, the more about went but end of

and some we had been which new which organizational sense shifts able had and some had that and wanted the nothing at we in – about to strength build strategy. is time couple buyouts leadership make their years, But, been to to is when pleased that So, this been encouraging to themselves of pivot new layoffs our first we’ve it’s able that we and change be about. to we’ve a obviously,

going about So from about well, Meredith help have – on. But to happen being now unused tell depleted. what’s when will you you rooms you obviously

journalists, the one I’ll the company but in able that Yes. in business the last of its the important the subscription putting driver to particularly eight, years do these first and the the places. its expansion few investment in in been more most journalists evidence and been more room is, things, in single more say and more to and of has strategy what say nine reporters, has continued strategy format a

to things be to mobile all these make be of a itself be already about the people them. for to business travel lot So say by you talk alternatives journalism they environment, it And successfully I hardly that’s that more continue we and can effective I engine still digital of will the of it. and free about most I people mean a for they so distance quality the stuff we to that, going primary to the second, to find invest ability more environment, a say, assume think a I relevant two get that going a so produce as in mean, that, the on also to we to particularly experience lot the different the in to Also that are get our help really at that in of I journalism pay surfacing the people more and from have in ability broadly. would of

we’ll the TV. film I to we’ve at I that’s part great scale to us for make to we subscriptions effectively. of this at have better really investment think But that saying of very second prior is version and there there make the important assume expand the talked in lot it’s for there room hardly at as invest is, journalism some Times we’ve should room journalism that brings from Times particular new going But always in that better on everyone continue us degree So, particular gone match an point, think to be have to And I to and is ability of that in the said audience of third in interest. that surfacing to said, work in lot we this more extensively see. think Journalism can who because formats so doesn’t which lot in of very, of and driving we our to about call people’s and and in I with get we kinds is stories, subscriptions, already a call, lies corpus thing continue a worth get the still a my audio journalism, me to to the stuff already a of still to we of surfacing do large the

Appreciate you but but the perhaps raise well help charge very the digital only only and obviously also in the how And on road about transition whether road. number I to another it then you include down is roughly for us that I a also with want to question, product want sort the that that, marketplace. you on the if update versus a I you drive Meredith. included just now you it to gives daily for you Thanks. the maybe charge basis of prices think you Do given, I much an year this And product there of received - news maybe if annual make the just starting guess, daily road Maybe in signups starting strategic product, for podcast. say, in of also daily. would, you here, term week its podcast, each news subscriber longer months think have ask digital give the out you can ask thought a XX was me if the curious, you you on that down about listeners if the could the being ago? down reason product next

is peak. of on at who audience can’t daily. the me daily just never but paper, start – the I help the its vastly the larger listeners Yes. read audience say, Well, My to most people even now audience let probably are the newspaper. for daily or I the And think the for than Sunday the

job for audience really that’s it’s widening an brand. incredible new done So, of the to the Times bringing people the

somewhere ago. which daily is are above year I twice think daily, were now X.X listenership we where for million almost we average a the

the of is even resilience that’s remarkable been in to at orders. of quarantine, the listenership drive period that’s One sure am not this the the during home audio use case in during time. I general, for particularly particularly people things daily because stay been

the been see part then, And that. other question. just to very, of we’ve turning So, very pleased to your

is it’s really been has daily to resilient say ways as Times. business the very to strong company. a audio of a number powerful the ad and I to think have I in very, generally particularly

that role about funnel. a in believe to into bringing subscription we calls, But be we’ve some that plays continue people daily said optimistic that. evidence And we in our as the we real so, prior have

One it relieves so substantially story the often particular more on is, wanting other that it’s single people about stories. things or a great of story every day

daily going to be it’s you so, know listen get then they people to that brand. Times to more the our And for who when feel come and to the

I’ll that itself but funnel the direct asking daily. distribution powerful. is those If audio really meaning work And as talking about another ads we you ad to essentially often really to said that envelope free has of very say direct And in to alternatives very relationship work, And and one think they is of we are like a us. then us as we and have use we the can the of ads We’ve as the with been to to served answering subscription backdrop top would it also a of to quite or podcasts strategy other I by brand world I an important launch people listen, if we directly and using and the then, a that users subscribe first many, the a in subscription space. that other strategy are many spend Times. daily how that’s the do daily question, its having the all useful important been new in do result the commercial broadly other daily to that journalism, number to we and daily really, used mechanism we the very, well that the where and you’ll hear of into And can I it able of sort got as a against effective. and/middle shows a of

even in to a say, but be if have history, we question, of part business. and our hard directly daily hugely direct a doesn’t to and layer our version you free could important. ability look into what while. imagine would out don’t nine the is I the wide pay always I if is, the into our scenario which capacity in so, play had for at hugely and we model Vasily’s the But some subscription in of relationships And future my some content, for where at it move point to will now, it’s very a said look important I that it today a to the say our driving make business the role years have at you answer

you of to Mark luck and Thank going you, Great. then best forward.

much. so Thanks

question turn Toplitzky our session. over back answer concludes to would closing conference This like to remarks. for Harlan I and the any

this look morning. joining again to you quarter. We talking us Thank you forward next for to

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