The New York Times Company (NYT) 7 Aug 242024 Q2 Earnings call transcript

Good morning, everyone, and welcome to the New York Times Company's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please also note today's event is being recorded.

At this time, I'd like to turn the floor over to Anthony DiClemente, Senior Vice President, Investor Relations. Please go ahead.

Thank you, and welcome, everyone, to the New York Times Company's Second Quarter 2024 Earnings Conference Call.

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

will to begin, this of time. assumptions, statements our you would which we on These statements like based expectations Before that the I call. management current make are course may forward-looking during over remind and change

and the and differ SEC XX-K Our to risks are due could subsequent of materially uncertainties actual company's described in results number a that XXXX filings.

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

our And release, prepared over again our after addition press will we conclude. With results also finally, earnings the investor our to In I to Meredith. we at turn this shortly that from website be the please once call of posted posted a to copy our will a note investors.nytco.com. have call to morning's on remarks slide relating that, presentation website

second and strong It becoming progress world. the essential seeking person to good everyone. every the to which for for made curious was subscription morning, with on path one a and understand further engage the Anthony, we time, Thanks, in quarter the

Our QX continues our that to strategy work results demonstrate as designed.

Let me describe how.

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more Now to turn let me detail. Will for it over

Thanks, morning, good Meredith, and everyone.

of QX expansion market-leading financial As flow year track to and revenue also growth, Meredith working another us results QX of healthy our how and news to cash margin lifestyle economics. our is deliver growth demonstrated keep generation. portfolio drive on stated, AOP these products free

our with us Our engagement enabled increasing strengthen base streams. multiple growing to subscriber subscriber along revenue

to affiliate high-quality our in products. revenue by journalism base AOP is overall revenue advertising, differentiating As with AOP leverage to generation, further approximately XX.X%. Consistent repurchases XX% grew increasing our declines grew operating included in and capital investments share to as and year. as strategic of and expanded free X% flow $XX driven digital months basis we've quarter This scaled, the the in at allocation cash we aimed licensing continue approximately than digital have dividends. ongoing million more and subscription, digital returned and shareholders print. by approximately X our million even strength in approximately offset $XX We subscriber in of million year-over-year our the points we margin XXX first $XX by the strategy prioritize

XX% $X.XX multiproduct up year-over-year as subscribers of subscribers. with period our ARPU quarter the we the key subscribers discussion net XXX,XXX financial from X.X% subscription and grew exceeding note new start Please comparisons products outlook Now third year. subscribers on all up growth multiple our I'll across XX% the business. tenured otherwise year approximately Bundle prices the base of to quarter raised with from that along prior specified. digital-only by the discuss coming followed promotional end now digital of XXXX. We the by to step are second prices I'll and approximately to added in to Total to quarter's results, total portfolio. for unless path the make next continue of our higher nonbundled our

Meredith levels modest pricing the will we've us seeing ARPU QX our in engagement, portfolio confidence highlighted, to step-up our the continue subscriber combined results that engagement. in we're products for This gives the As of to the year. added led with strong across remainder higher subscriber we're points value expansion encouraging year-over-year of

quarter, with digital As both grew higher the and ARPU were last second provided total to we Both revenues digital-only subscription XX% quarter. a million. to approximately in of digital-only $XXX grew line approximately subscribers million, and subscription revenues X% result guidance in $XXX the

operating Both approximately Total X% turning were ranges quarter. we approximately last the for X.X%. revenues million, advertising. to and X%, within continued X% of advertising the guidance to an our quarter revenues X%. range came well increased advertising by as million. of increase approximately costs Now were to $XXX affiliate advertising Digital and increasing guidance in perform provided total guidance $XX X% in revenues within to Wirecutter million revenues digital $XX Other advertising exceeded revenues Adjusted approximately licensing our QX. increasing to

total in increased costs during I'll to at income. are of X% revenues revenues and XX% to to subscription are Adjusted X%. Adjusted returns. for strong seeing increased Digital advertising now subscription New digits. Other advertising to adjusted investment QX. compared $X.XX, into of the Company. EPS higher high to be the low revenues licensing approximately $X.XX lean to lines, expected X%, approximately G&A are ahead Digital-only each the approximately revenue digits marketing X.X%, are to are single primarily expected of to quarter X% to period to operating affiliate the in increased expect QX driven expected diluted QX cost York approximately and with product costs third which Times and of X%. costs increase to increase profit takes expected XX% decreased expected sales to look by revenues growth to increase interest higher even we're and and increased the Looking drivers development account consolidated as XXXX, XX% and increase XX% total X%, to marketing of flat we revenues opportunity are operating to stronger Wirecutter increase revenues be X% increase a costs quarter in into single expected

growth rates for we revenue remain sustaining cost AOP individual lines, fluctuate on this margin particularly growth management. cost healthy on expansion year beyond While growth, approach and through disciplined a to can quarter-to-quarter, and focused

previously digital our demonstrate continue value in that audience. close I'll to product We and midterm investing and happy create our expect portfolio working resources while subscription for strategy high-quality growth to the take that to and by reallocating results designed, our areas capital questions. most our journalism is the noting are we subscribers, achieve essential returns. With your we our on to for targets AOP remain that, as stated track

comes [Operator first Instructions] JPMorgan. question Karnovsky from today Our from David

for bundle digital for give on is the QX can looks the Will graduate growth takes acceleration that. there of acceleration you the quarter. third in lift puts seeing product other Just what guide. tiers? for seeing just at and on a that. you the the of the in subs subscription higher it the Maybe The just around QX, cohort healthy midpoint. detail then guide And or far? And much so promotional in some are revenue X the speak could of to maybe over you How you're Meredith, the

to a those out broadly I make play which number mean able product coming to and part might very detail broad adds asking he's question. the of the bundle higher just Will, second model is in from well. being subscribers prices, you're the kind as of seeing the designed, comment, the I with of of net single think places, I'll in transition add bundle trajectory you going a

you have components some David, as create For know, that which line in other other revenue can quarter-to-quarter. variability income. Yes, it, several different natural

be good certain remarks, in I investing more and returns. seasonally can stronger value periods, QX, in Meredith think particular, her in we're as said revenue there, prepared been to seeing there, affiliate Wirecutter and create we've in

can In timing revenue be addition, the of lumpy. somewhat our licensing

the growth expect seeing stepping think to QX I in XXXX, important we we've and you're affiliate as said in in our license that thing, deliver both back, guide. the remarks, and

Stanley. from comes Thomas question next Our Yeh from Morgan

for I Yes, color the of all the Great. the on year. appreciate remainder ARPU the expansion really

a Going by new bundle phasing dictated can noticed on you the us promotional But going rates gone. off what just Dave I of sequential forward. subscribers has of somewhat promotional was asking starts I bundle how uptick. that's the inflows of in an multiproduct give graduating update the on ARPU of saw kind know

for still cohort just that the I of a think as in mentioned to terms then through you alluded marketing follow-up Is the year. that building eligibility efforts. into Will, case? And the leaning you

kind that was terms just if leaned cycle, periods of the during from in you elevated off. historically, spend. you've dynamic marketing any of change wondering in there's actually there ROI new think I see of I

take of Thomas. both Sure, those. I'll

are we've X multiproduct seeing. Having multiproduct ARPU said growth in want just bundle focused in we the and bucket, So is highlighted said sequential one, really of want digital-only year-over-year everyone step metric really say, first that in how back total before, on said I cohorts, the going as overly ARPU. the on important growth and focused the with to on and we're we we're focused that, that, I growth the sequential subscriber not as ARPU, we're you've the driver that on any bundle Meredith that's increase in and bundle that for and are the step-ups primary pleased, both and

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last fluctuate on Yes. And sort the is the on quarter-to-quarter seen is over I'd often in several then marketing we're what say quarters really growth ROI rates ROI we've focused what can said marketing practice, we've spend. that. And the of in as

we whether starts as appears back, the coming when strong to just prepared the bit I organically, returns. always in we case our my vast are majority be in quarter a lean while particularly remarks, in to consider step far So noted in while QX. so that every see to of And

well quarters may those we this So be one of lean in.

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Citi. Our next question from comes from Jason Bazinet

But of the growing it in did back balance the appreciate the quarter your acquisition the you I seems cash dividends. first the of capital buybacks athletic gradually like Yes. the since returns, and been has 'XX.

end cash? up will what happening my question do so think with you And is, that

-- question our in capital strong cash generation flow confidence allocation as only reinforcing can imagine, seeing, our reinforcing the and the you we're unchanged. I pleased, really strategy, and we're that remains it's with it's Yes, appreciate since

top of grow me in investment that essential we're in. huge spaces let just We return a that to is So those to I sure make organic see is everyone our strategy. remind continue priority our of high room running lot first subscription

really cash noted, our sheet. you're value free is allocation think you in midterm strong which I XX% strategy, to sheet leg and as the see balance a the dividends. and balance And of Second, on at also here hitting of third buybacks capital flow returning what of least the our shareholders having we stock the is between

benefit really sustaining a that's is important provides have advantage we dynamism sheet with handful think for see the strategic We subscription important. on is a path of real optionality. see balance lot that services, among We really a a us high during But where in a period we M&A. digital what bar of scaled a an market small global flexibility to and that ourselves really, becoming of

Our from Cannonball from Karasyov question comes next Research. Vasily

question, to underwriting news. still working what certain that on you guiding of on Wanted if to the better Wirecutter that. ask revenue help and understand you acceleration the from avoiding drives are provide color advertisers variability your us into Meredith, products. digital And in quarter-to-quarter more of possible maybe you too. categories And other are it, you that said And another then touched that will

your stronger like because out last -- quarter. to understand correct be call is do to would the this this around that not revenue advertising situation any quarter. in figured way you out does So it a weakness work release And it press seems we that

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would trends go So and kind just is in the kind of people think shop. working of just out And it broader when on every I dimension. quarter-on-quarter reflecting about

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Our comes Partners. Arthur from Huber Doug next Research from question

numbers the threw nice it. Meredith, It tone better sub the line quickly the based least product or expected the is at seems just And breakeven expected. on the bottom bundle take out Athletic. comment like you than than on moving rate to to a quick a

the bottom if wondering the of Athletic talk expectations. just you or year sort the for over I'm So about could line next so,

really early for it's a long to important broadest And household as well. a test very thing fans name be is profitability. to to Athletics going. as still We're the that's far very happy It's to gone question. us. among path Yes. with game the in relatively mean how sports Great say say build playing I for awareness audience the big we're I'd

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in of saw the dimension. that You some of and revenue audience in we sort reflected grew as every quarter

happy we a on and with broadly something So to how be the track build Times and our to leading big it's the fans. terms for going New to and global well looking really destination kind of of in initially ability at out what put world sports in York

Great. everyone, joining quarter quarter. second our see for call. We'll earnings you next Well, thanks,

has presentation. the you concluded. conference call and now attending thank today's Ladies We gentlemen, for

now may disconnect your You lines.