The New York Times Company (NYT) 7 Nov 202020 Q3 Earnings call transcript

Good morning, and welcome to The New York Times Company's Third Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [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 Third Thank

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

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

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

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

And Thank good everyone. morning, Harlan. you,

when I New lead to named the work extraordinary was a July, of and support CEO The of honor it's to I our As said the lifetime York Company Times in newsroom.

quarter leading of a becoming same subscription and the long-term I to for strategy. are digital-only also to thanking this milestone the all but first growing subscription subscription-first that minutes the put revenue opportunity. news context revenue is growing testament share from few I the subscriptions I'll our a my That's Since the overtook our reiterate years take you, try now our important am to time. print newspaper our strategy moment. the with Digital a going historic conversation and in to of of that a also to company's into largest. Let just evolve me my I and stream, our view new first business the am assumed nature revenue way shareholders a legacy to many making enduring for start investor in this their our digital as continue and the by not fastest print the we most in and confidence role well community enterprise. on

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last unique we've the so, you media. back business told steadily the the tilting our year for of to or been value As we've

XG audience on resilience, franchise pockets also growth of in entered leadership marketers sold privacy-forward and with during Pivotal, called platform first-party has an our work augmented with been in continued in we of launch consider and and launched context by XG a the area the help quarter, enabled broad the we data our media the strategies The now Facebook of also ways foundation which used Audio new and our of first collaboration Verizon their team brand thought it's reality third multi-year in the Daily Ad driven has with direct Our a consumer to from advanced into here. creative quarter of also advertising insights.

in As not continues previous near-term. we it economics, the but expect the a do business company's we said in significant the be be to of important to advertising quarters, growth driver to

mission in be I my our and it our of you I'd to across unprecedented of who've that the Times Times shown confident X,XXX in Over ability year. lies tirelessly commitment but a remiss thank Roland, hand passion, for news what you, be colleagues, to that couldn't I and intense the in execute they've plus strategy strategy, us another to Before one for off Roland. our take how say for in I to want didn't business prouder people up the working makes if and working business. moment told talent, been to I've I circumstances. this

morning. good and Meredith, you, Thank

net acceleration including our the of of same XXX,XXX We the products period million, vast XXX,XXX net subscriptions. the six prior pleased the quarters. restored subscription million Cooking digital from changes revenue diluted net the revenue. reported ever. highest result making paywall company. the operating the in to and new growing quarter, higher and of factors. the million two increased subscription against significant in sequential We QX yet core Games two to As was with digital to than making the quarter products subscription another is our digital-only Those XXX,XXX Total total new subscriptions majority higher strategy per The digital standalone in with largely to approximately remain three digital-only quarter subscriptions Adjusted model our the digital-only XXX,XXX subscriptions. We million, a growth profit XX% Meredith us we Print added made XXX,XXX quarter to nearly per over XX.X% only which to site, adds third Each end our net periods full new leaving outside these and quarter represents and quarter on year. progress week news rate subscriptions digital-only non-sale exceeded sale. QX of promotional from are the than for the earnings the coronavirus the $XXX the coverage quarter during of We when revenues approximately at third of first $X subscription to to execute subscriptions XXXX. for $X numbers figures per brought revenue returned revenue the strong subscription adjusted in normal add quarter $XX that the in cadence in net share XX% $X.XX said, our second quarterly it continue a and we we week the approximately most critical was of we as to of is of $X.XX prior $XX XX%

news subscriptions prior in second, prices; consistent of the Digital XX%, the subscriptions quarter. rates quarterly and the year; graduating dollar from First, began versus the close added many related to increase, past ARPU we price price continued retention on offset ARPU quarter. dollar X%, our promotional of and which approximately of price X% acquired U.S. both the the positive the reported compared our in year full graduated per introductory a in areas newly to from as well as than deeper promotion mostly subscription first-ever week the strength the first from have subscriptions. rates subscriptions more the for tenured more benefits promotion, of compared quarter, increases late to from the largely the new impact year. week digital subscriptions X% number and subscriptions, finally, subscription on declined domestic higher to prior ongoing decline prior with last The outside quarter the the versus new the and for who promotional prior we approximately solely with per the in declined domestically the year

conclusion stimulate either moved at to willingness per casual one willingness yielding price the initially full Our dollar readers lower. price pay remains full before we cases to to pricing of results expect week year. digital the and time. end moving point promotional At strategy in price utilizes continue This to is of strategy a among higher this strong more demand and pay is period, two their introductory to year-long increase whose conversion to or over second the midpoint of data a subscribers the suggests these where points, the lower, price increase

the nearly historical identical in XX% to the dollar now As months per than XX as subscriptions retain past, introduction. the continue our at we off said rates promotion more after week

we highest. from tenured subscribers a Churn garner pricing most and and engaged price rolling digital subscriptions. product earlier this in includes incremental price has to most company quarter, all Our and through value In generated has the on of September, third resumed strategy revenue our the out been than the for more we most is for the willingness which subscriptions also than this the increase to tenured lower who whose year initial increase increase XXX,XXX significantly our $XX rate the the pay directly million falls expected bottom-line. received on almost long-tenured who

from tenured our rate subscriptions on subscriptions in the the from see to a we graduating should increase slight moderation quarter. begin fourth and promotions, digital the decline discounted price the in Given ARPU of impact

provide digital forward, discount. XXXX look new strategy X.X a promotional a our pricing to $X week graduate million we from to throughout we ARPU As subscriptions as digital expect tailwind approximately

price Additionally, will we a XXX,XXX approximately subscriptions newly expect tenured see increase.

revenue result to in declines. year-over-year down quarter a print in On circulation delivery home declined X% price which increase early the representative as from X.X% distribution in single as and X%, XX%, costs subscription Please subscriptions working due nearly the spend marketing largely daily in were million, the business revenue a prior servicing quarter, home Sunday from declined also our and the of circulation operating were Cost quarter. remote call, luxury, decreased of declined increased declined Digital by quarter the in gave percentage content decline while and with revenues costs in sales and media impacted both in higher costs Other affiliate print decreased a points by with of fewer marketer quarter quarter. revenues compared higher costs. referral as lower sales. approximately levels and XX% with year. widespread offset a television compared the subscription with XX% largely closures, side, as during result nearly Revenue do copy we decline we than lower the in circumstances guidance more News advertising view Wirecutter. hardest. delivery the live is X%, Print This bulk from media episodes, prior and international pandemic and as and costs. not as in The Sunday. costs points approximately domestic revenues printing than on and pandemic. special digital quarter, Facebook, contributed to third advertiser an better partially in approximately earnings result digital compared from XX% were These well lower large were of driven licensing approximately and somewhat copy and the the Mastercard. offset XX% travel related commercial of deals lower expense largely to prior categories with second print a to X.X%. grew quarter implemented X%, journalism of offset our demand spending Facebook home approximately print declines the revenue by approximately increase given result reductions spend Sales than and events. Adjusted the delivery The Total decreased hit note advertising year that year the seven advertising and year, more as Verizon, furnishing revenues advertising Total Daily we $XX percentage primarily marketing approximately to the two operating entertainment, declined the future as severely as production under declined

the plan levels this to growth we engineers into the quarter. XX%, We expect to as spend headcount normalized begun Product of by In approximately next largely investments over adding entered in as already to marketing cost and employed. development here XX due increased to to fact, we've XX more restoring continue to in to our to fourth months the area continue our journalism growth. lean we further in drive number

tax to our quarter. was on which going-forward dollar rate basis, settled in from quarter tax rate third included with tax we stock effective appreciation variability continue expect rate. Our marginal of the income XX% price XX.X%, a significant be the for on the effective awards to On every we around quarterly record stock-based benefit approximately that

million $XX obligations our a funded million from settlement to the tandem marketable we to and managing $XXX sheet record flexibility of pension crisis. remains as benefit ended the the million volatility a continue million, by charge transaction, assets, quarter. the a Moving business results transfer planned with by company to $XX obligations continued transaction of growth the even of approach Subsequent this securities have our million, of administration to an taken fourth revolving with the obligations, credit qualified we future to was conservative we into annuity our allowing the effort at plan and in continued approximately in debt-free with quarter expect subscription-first quarter which to close, strong balance to to of increase the we the insurance part non-cash Company our overall of with our our reduce portion in strategy as $XX reduce fallout pursuing available. balance pension and cash the and size an COVID-XX sheet, confidence manage a With financial entered balance economic us Consistently through provides line our produced $XXX of million. pension our $XXX quarter. compared second

the XX%, XX%, to Let of which of with the revenues decrease episodes and expected of invest the while expected expected pandemic. Other outlook result revenue revenues with and with revenues XX%. to of costs Both of mid-teens. advertising drivers current in me is impacted revenues our increase assumptions as effects knowledge growth. increase quarter costs Total carefully questions. advertising in we'll digital conclude to evolving by fourth for operating spending, fourth decrease the the approximately subscription of compared to fourth be decrease are live decline approximately digital could low-single-digits XXXX to and as of And quarter open XXXX, that, for quarter XX%, the fewer expected quarter approximately and subscription compared happy to in we on subscription fourth are up or be are continuing be digital-only based to and television the events. compared approximately from XXXX, with our revenues a operating with XXXX, lower non-essential manage expected Overall the flat are adjusted expected it to are with the

[Operator Please first Yeh ahead. from Instructions] Morgan Stanley. comes The go today Thomas question of

subscriber leg cycle or and cycles user talked Hi. growth is your of in of registered slower going in news deliver morning. What the control. that of key news funnel resilience the of forward? subscriber terms of your prepared good XXXX remarks about content heading base Thanks do your are greater into the more obviously, or conversion top and you either out Meredith, think drivers next the to you could

good that. things question. thanks Thanks. Yes. about for I'll a Thomas morning, and couple a say Good

something and users. is, The month registered adding passing are before every quarter, we've we first one, said with more

can the get is of engage people growing. essentially to and then So, who we pool subscribe

should means really that once that's say, driver assume cycle they're you register, news us. that lot we're of addressable big the to adding year essentially I'd experienced a we've and So, lot a and a strong users more registered they all

The remarks. a directly to them stay. in more the likely things couple of my Times' subscribers get that We opportunities and know who experienced to words say of more said pay more engage to breadth them are and prepared some conversion. have I'll the much We I about point

of got well a way ahead big hit and gotten breadth to the better much that And so, role work at the plays I'll say and payroll. we've And under getting think with people room plenty to of of at model. really we've hit – we to and get us, the regi then, people still more exposed in sort

based in run sort we to for where we someone able at do way and to engage everywhere of So, comes to way can account job a we better the used way customized much they of customizing applied the to pay. we of and ask we have the the are on those signals a site meter do based signals, meter on blunt instrument actually outset, how in the now more them same when

may see may people stories more to Some one or need channel from coming you – need another someone else. than

of things going all us real So the confidence forward. model those in give

And then, for That's another Thanks. helpful. maybe one me.

talk success subscriber has your competitor core love color you've could achieve kind year, their what efforts you some little on about audience the about there And – been younger on the get product the on and to to to some how the a to that would able has younger broaden audience past out hear demographic been reports in have an grown base growth of evolved to over U.S.? front? bit news As

high long, In periods we're quarter, over which Yes. to particular of starts. I saying be years. version we a this in tends same goes than all The cohorts been we've people to higher say, that under XX. news probably would back had number bringing several the a audience prior year thing, of of last the younger

The of adds Times. XX. a certainly quarter many, outer people the has propensity in reaching many, a see under edges become that. just for got our And under we under very people I XX vast we've are as think, The – we these of and and news, has lot of engage in and the The a spikes net So, many audience, Daily cycle as we significant number reasons add a majority a way with Daily's that to

younger bring who people for to The York tends a audience New an Times. that of affinity So in now have

I'd also is story domestic we're the of biggest probably past the significance the quarter, So effects say is news the obviously, the in of given domestically. the the seeing change pandemic election,

disproportionate coming of United internationally. starts States versus number from a had the also We

Thank so Great. much. you

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

Thank of on I'll the you. topic Hi. subscribers. stay

So, subscriber – future. in, that And I the think, of comment, have I after that you've subscribers your growth do seen take of if to could you aside, big in than Meredith, in you said follow-up. periods you been historically, more in able is you you've cycle remarks net rates pattern then, XXXX additions settle think, a Is the this so, add at news I added say, higher XXXX?

my XXXX remarks is think, also an said in So, I many ways prepared outlier that, I year. in

a Thomas with ago, registered users week, adding minute users substantially at convert many, new we is, higher of passing answer So, and can cycle. rate which don't the we users. given that should those place registered where are extraordinary subs. news expect think get we that the go you said, I very getting us nature in the grow can than the subscription, to I'll we And anonymous back are drive registered pool in continue and I many That XXXX month, users from which gave to day, are we're to more to optimistic a model a the same every

if you've and new a is, a to audience pool why changes, as big our got of anonymous right easier cycle expectation comes even the that's who to some people of and convert there are So, degree, than part users. down

I repeat exactly So, don't to extraordinary But will and it year. I as an cycle news this growth. I is it think real see expect you particular should this think think did one

would about guess, the you've subscribers or are churn that's cohorts before? engagement than anything several follow-up different I months new the seeing cycle? in recent this And different? added the be, makes there about of terms that over what Is those you on it characteristics last What

good both questions. Those Yes. are

both address we has actually great that churn that's years in probably the me the been think a because base I I few and said Let important. one said that, gets as haven't and churn last even that, have over Roland more story enough. larger,

that better Even able every of sort because but a like as we been the form actually things, it. to step-up we even I it's the deal well, the churn, of get we're think better, do parts people keep subscribers, to question, go. aspects least But been base which also the do hold in the worth to better. big as events, to quarter, daily - saying get So getting news better, how engage at just product, of that a them of to we've are this people importantly, because we mechanical far in right? around, two come commercial And habit we're do able particularly limited to that we've achievement is churn better the range, the at at who tend stable, within people more a keep as of to then, worth we're getting your churn able very cohorts use sort very with saying I scaling able and you is We with how product. not and moment, through retain better straightforward passing even with of you it's big people think if

the news that cohort the cohort high early pandemic is what, months the around and cycle really high global the election was in for XXXX level. also X.X we've surge So, driving at we an example, now, original into are a cohort and really extraordinarily retaining That retaining tracked closely XXXX.

also a the better So, technical affinity we're people. ability better you the and and at are optimistic then that you that brand, and come we relationship has in peak on to have event about news get our the for to engaging optimistic

want That you. just night. I helpful. I to loved the was Thanks. tool. other Got upshot That's quite needle mention, good the a also following

hear to say Happy Cohen Nate to of on that. and tirelessly that you who the you. and team Great. props Thank whole really all worked have

Thanks.

go next JPMorgan. of Alexia Quadrani from question ahead. The Please comes

week. you made the comment to I reading that then about in what then, correct? pulling a your a Thank $X less meaning so, a I did And the you, promotional, a week more becoming that's I a $X back what the of if bit follow-up, period? into have a I mix week, a of wanted a if this on thought follow-up. And little your I having One, is much. behind or hear so opening remarks maybe during just on am think, $X process

big did sale morning, Yes. in Roland only the a for $X and asked week we that, reach an On working the I question mentioned periods. week, very the and us of earlier demo really particularly think changed. outer edges on Alexia. that's our pricing to quarter, What go is, the a I'll circle it has got say helps We Good the I and back us that's about news think moments. how our propensity $X instrument to particularly promotional in

up. better confident so, plays about passing prepared We people more role more and I to in also a up people, are younger are do we as that, that each algorithms in reaching Roland price think promotional and and this our step how said we to ability saying, and his It's getting on quarter remarks, step with more it. getting are worth effectively our

when App, is Our how we and when improving. we ask, engagement monitor of of we and the when make that mechanics of sort do and we all

we really use an of scale cycle where news we to So the the base continue And would price to folks step those that confident to promotional intensity in opportunity the is, up moment we are say as otherwise. we or in can go. a what we're I see going

of maybe to here. Alexia, bit Hey, want add I little just detail a

is coronavirus. is on of sale So, to quarter, we that very we points a as what And we have also cadence. had QX, bit back what we've all a cadence not that, certain gone us. that, atypical is, normal a typically when we little our at is because we're my of days access, of point we're And did counter and on at the that, the that, may sale open you points. in for recall sale other where to We on remained

QX, to our it of we outlier and did not in having an So gone cadence. Prior QX we've on. was just terms back normal always to

is that largely thought expect of guys really helpful. for do on start And you the it to a have spending you reduction know about the in investment really do just know I of then, that on a natural I Is Okay. the see this tightened being Or in see XXXX curious middle really we while. out hit? am guys expansion. driven. I you it if for seeing my when That's can or margin further how a been elaborate of years? the you question second have leverage few sort very we business in talked some

lot we we're Yes. that a print take we I'll will a And I'll add a to caution want we're accomplish. and would what he I fit. this where and into that, our in we you significant the have can of as scale investing once-in-a-generation and have operating around front of leverage product, us opportunity. product very Roland we core in opportunity out decline kind improvement. say I ambition of for reaching news to within rule say, don't sees see still starting

rule core out see where don't to in it further we're we But product investment. we improve. the a starting scale So, reaching are news

you. Thank

from of go Doug question is next The Huber Please ahead. Partners. Research Arthur

Thanks. Yes.

adds. third for of quarter digital uptick you. sequential mean, Just a seasonal wanted to is explore change the typically, sort in news I the

kicking back college You to get contracts in.

probably is away. people away for there think while subs adding the summer in they're I going digital

QX. anything there this quarter? this a third a caused about I in ads So, in front quarter you of Was obviously, kind mean, lot and unusual that of strength ran QX drop-off

there. Hi,

throughout I business story every if in I'll my I QX. we would that thing QX. to strong. just was last year step mostly think a the prepared and news of at continue remarks really you other that is annualize answer would pretty be improvement And that's reflects and number even a the step past of and to the from kind then its will coronavirus – of peak, QX in which cycle quarter. and the of in sort some an questions. end first second quarter to these represents an increase and the function function like decent outlier consider in outlier And that QX think over say, that highlighted number to the I I And consider the this the quarter, unusual a the

XX.X% you into so going you - end you were the projects seeing on in – down the a did And some XXXX? the digital you were advertising, down you obviously, came big so, and little there tunnel down terms at guiding Are or XX%, – better. of of seeing you you cited are of bit light

of in be working that that resilient. these there One three first-party data is I are proving strategy. is touched I'll in prepared say things – briefly and advertising remarks quite each there my the well that to

within still our that. focus with and quarter. seems So I superior pockets gave and an There continue our ad be real doing And some time, using the high will to That a audiences the of demand certain on. over third important marketers first-party of data. target area to think, driver us for margin essentially, for categories sort is we'll in selling really that privacy-forward resilience to partnerships. ways We're media business in be big ability

talked two in new that the with launched Verizon I partnership. an one and So expansion then that Facebook one of the quarter about

partnership going The continue a a have it's and of is audio, year. will is high because This on be demand obviously would next now say rights there And product that's I media the launching. think CPM audio number expanding and come, a growing, that's to where advertising a to Productions American expanding what CPM is keeps the to some at then And and expanding, grows, keeps more a and audience for multiyear And as we audience coming the into – driver. product with be that we mentioned to Life. place it's is our online And I sell. high other to Serial and real then, Daily So shows acquired there set time obviously,

our So, audio to in I come. some something for be ad will business to think time watch

you. Great. Thank

welcome. are You

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

to you I you. sustainable go I on XXXX is reachable were big but wanted of think little a a it, you today little touched or I are that's So two, is Thank of net fact not in talk bit Do you Meredith, schools the – number could you for number if you? the answering think a wonder back little think one. more adds? to net the adds headwind you net earlier that open level level a adds. And a that details. QX about Do question for

schools place feel I in you, And we remarks, been the you're more – my settle asking than a shortest all if my question, optimistic that that let say first higher that give we at think XXXX we closing... come did – So, is a assume reasons essentially can time, in than think the I’ve at in already we don't prepared settle forward-looking continue you essentially guidance. there shared peak suggested And second your outlier. on answer you we net the grow net before. question, an one place we just off, give has to - where – on me adds, can adds are the higher I I But a when but in I've moment

was unusual schools, of going you? that an it's in QX of stuff. all quarter you a to for that terms adds for colleges, headwind in that back fact The Do kind think Yes. net

think And a happy very result over annualized, with it's that be gave think that I I again, don't every I step so. other QX this answer so. we'd increase QX we've don't function before, but had. and

you day. very much. good All a Thank Have right.

You, too.

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

the you. you planning Are about in that me, Thank it could further. little plan year? What's a add Meredith, material next bit way if just maybe I meaning a just could the investing, further size Yes. talk game please. you but first hasn't much changed the size for maybe of headcount this assume newsroom, please? fairly on year, a little bit there, you about talk

That – I the the the for going invest said would have are journalism is some this strategy. I of say differential to So time, to and the newsroom. to value Roland continue central central, in and we is

not also – the but that have that, scale so investment with So does in continue we past the newsroom, said invest will still there. We've we the investment to to opportunity. that grow

journalism, value a So, remarks, of to we The can subscribers which our more and the the able and higher my cited would than model breadth add prepared of nothing produce we're things thing I is, rate, in – are drives the that right? differential a say journalists the the at with I other report add the range it.

the at But get scale model. we keep not should expect investing. that you assume from the results we'll again, So same to

users? talking And with are many about happy us how then you But in size you registered – number now, registered right way is users good that what for number. the kept can very also, the millions a – of that

not can likely convert they about We rate, just and of have that prepared after they are months registered an users more share And to convert users. publicly. quarter to user. tell it satisfying it, but higher not that's an that five been higher shouldn't remarkable a adding still than you not substantially anonymous see than opportunity. rate, I three, and register, to what's remarkable, anonymous millions in be it's the we’re Two, moment are is, every at number What users registered

touch The folks that going sign game final you plan how your to users, And product on just product? my for size of your us product, question, then number for helping Daily. the could what And drive helpful Maybe and sort forward. also, that if up is to news-only maybe podcast to of

Yes. to how believe have funnel. – subscription four in we into to number harder directly Great, it's We But people affinity that It's reason news every – years our brand. with it had given now how helpful track the it Daily great I would improved a to to The Daily. is question. results have of the helpful say, things. drops does, core to The driving the very we've

that know Daily run we work that about the are journalists do, on quite are that We talking the The also ads performative. own they our

drives business, – the So, even people ads the drop do as tell ad very within do would strong said continue The my drop can drives and think just as Daily, affinity. program best in and The prepared a business. a in we people ad the to funnel. into remarks, growing it – we it I And remains, this be it then will I say,

think where users asked get about this we're on close think I from million to a but a you is. audience X Roland, me correction I I may day.

the newspaper, huge So almost that's thing the as was its peak the Times. The vast audience at Daily's me and paper years as the about than, to large of and it's audience The say, much majority, four younger audience traditional only the audience twice old got like is York with it's remarkable an that's and New

is other from So, The be proved Times. which Daily The products a also I'll say distribution one for audio to mechanism more has thing,

really are that. about excited We

to So and The have new – we things as and into think to over way to launch world, we Daily subs speed the ad the the business business value, going a the of can real time. that's both

context maybe add more a to ago. even number. downloads year four two than daily one was little more That's a it that million times Just what

as audience concerned. is So the growth there still far as is exploding

audience. right. highly, It's That's engaged also a highly

listen amazing. people week is times five most a think I which four or

Great. Thank both. you

you. Thank

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

you. Thank

and are mentioned million So, rolling this and so much who year, prepared your year, Roland, subs are when on promos so of because we the a that you on in higher off had proportion gross cycle X.X remarks of at ARPU you've additions there forth. look news next the of front, and

a So year, trajectory significant from significant perspective, pickup next or as into in you for suggest ARPUs. that change would a ARPU an head

prepared just correctly and And marketing in help her Maybe one us year decline metrics? you spend? range if big the normalize Or you next could level maybe the somewhere million in is want has remarks this of reduced sure mentioned spend as What's read marketing the the mid-single-digit using for revenues? year, think it's seen when on make normalization been that I double-digit the that that other this to year. to the normalizes. that So, of proportion be correct tailwinds going environment understand of heading and Thanks. should versus cost I assumption a Meredith I normal you've some if that front, number this probably decline the secondly, X.X that

correct. question, directionally, ARPU Kannan, the you're on So

understand last you So, as – with to next of that number had year, I I transitioned additions large new couple the those described our over if higher the cited that prices year, be get million. will folks you pricing strategy, you X.X we've

be of increase. price. we'll get So And also in pass their some hit – $X awful up stepping will that's they the who lot we'll tenured gate folks folks the through have an who and

start two how certainly – will when we combine stabilize potentially that start somewhat So, will contingent will you again, think to those things, ARPU decline down potentially and next and our could that on on subs north. could the many bring firm slow head to step-up And from we strategy, year. pricing from And ARPU going our definitely in feel new But strategy. tailwind we good that's like, have front year. up things a next be

that in to in and money what be as doing you to that. ignore to over But indicating of as as we see there can say exact journalism. on invest level we good don't we've marketing that your wanted direct as number and in levels brand can us marketing future. a modest question, you're We we've that. I in other started still far think the our spend if in I will journalism spend. the believe and already than in you'll in two have we certainly give far cost product product, both you I metric and marketing would in general, past, much will but or should seeing two areas, just get say would last our more rate at an in you basically, in we to I As the restore quarters, is spent the recent spent,

to Got which up next just on that follow-up costs it. potentially I but margin could with compared trajectory, a I ARPU guess, a this have better step you if is, question, year. year,

be they going So think us year? about if next don't That better, look when or comparable? you mean, headed next worse, useful. margins be EBITDA forward directionally, help at I But obviously, could margins should you roughly I year, for could we give where be into guidance. significantly mean, would

Right.

what I core core business, leverage good subscription can the seeing far we're of part don't guide But that is, the digital the advance there. on metric. and don't we that guide we So, say business,

to business we'll reserve may see the some in So of we'll there. and mean, But the Meredith ability I in where right come core we business further that in more than standalone businesses. growth, the our I Print in. aside, form But mentioned discrete they get investment money of to not make we accelerate putting still our and more come that we're the money put the the think out before, of

business But of number I the want as really from and So, improves, to specific don't better and seeing on of there. how business, we business much big there. leverage as level going see going margin expansion scale better part the it's the a again, But to matures, give core of and we're spending really there. opportunity what we're is the to turn business, see the elsewhere the of core the

Good.

Sorry, one last could. question, if I

you a visibility lot and On huge to the so more on, in getting growth trend year next underlying balance given improvement you be you sheet year this on lines. your have into front, the and cash. amount a ARPUs are to sitting And where seem cycle a of the

either perspective? as that towards So, or maybe your does Meredith, as else more well, something CEO, you perspective, think from make this your capital how seat and from about capital in Roland, deploy expansively returns your now to

in And thinking that extent and talked we're underlying and digital And time continued productions last and in about we then, would say, the seize big the very the opportunity investment sheet our sense long-term and investment think the is just value company. answer, autumn that not to about for opportunity that's hard thinking in we invest use you And where We're to afraid that saw of quarter. we're best our in way a Yes. broad – I which some the do you for mentioned, us say, have standalone really journalism, Roland continued we mean to I'll give going the to a with product and marketing, balance I products. serial to with opportunity. see very I the make about tech. both to hard

or So opportunity business, do balance sheet in the that to faster to a we'll to way that's effectively more it going makes it. accretive to seize be the the that or sense to extent more

it. you Thank so much. Got

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

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

is conference presentation. concluded. today’s you for attending now The Thank

may You disconnect. now