GCI - Earnings call transcript Q3 2024

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Operator

Greetings. Welcome to the Gannett Co., Inc.

Third Quarter 2024 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Matt Esposito, Head of Investor Relations.

You may begin.

Matthew Esposito

you. Thank and third joining quarter everyone, to call you Gannett's discuss XXXX thank morning, our for today Good financial results. call Doug Officer; today's Chief President of Officer; on will Solutions. Reed, Cho, Mike Presenting Marketing Chairman and Executive Chris Officer; Roberts, Horne, Kristin Financial Digital Chief Chief Content be, and

the website, will supplement our press release. find addition you in we have If to Gannett navigate that to earnings you posted an earlier

on provides referencing be the today quarter's you with it detail it will We call, additional on this performance. as

Before me call we you is remind being please begin, let that recorded. this

In or respect regarding federal with the addition, this we comparisons Commission. statements Except keep Gannett's by law, forward-looking obligation involve the Exchange update securities during publicly filings to correct and events in of certain read uncertainties as statements results encourage be otherwise and in the cause forward-looking actual those Securities including statements differ may made described to as cautionary earnings well as the factors you to in statement with risk made no the year-over-year made risks during and discussed as events, statements based future to this supplement mind call be These U.S. to laws, any and are may today. and all basis a are that forward-looking results on or unless are, undertake defined the call. Please under from upon required materially noted. those current We statements deemed expectations.

and adjusted be to revenues, including EBITDA, will attributable EBITDA financial call, margin, Gannett. same-store net income In during cash discussing information non-GAAP adjusted addition, flow, the adjusted free we

the the measures of reconciliations measures U.S. non-GAAP You GAAP supplement. can to most earnings comparable find our in

that, and that I an written webcast solicitation Lastly, I Gannett the offer turn would without in Reed, or call may like cast sell, our to to be to constitutes are Mike like over CEO. consent. With reproduced or an Gannett. not offer rebroadcasted purchase, copyrighted of and material The you duplicated, to audio to and interest nothing on any of prior call remind Chairman Gannett's this would

Michael Reed

thanks Thank third call. for joining you, morning Good earnings Matt. quarter and our

our continued in an QX, categories XX% further million We and out X% revenue totaled trend year-over-year. In all-time quarter and EBITDA adjusted total and result, across progress revenues solid of $XX high. priorities. surpassed X approximately year-over-year, grew the growth key digital total revenues, third saw to nearly make improvement representing as a Three strong of digital

completed flow, sports a XXX% audience leading closely a We to organization. revenue time audience additional especially reflects to at presence, have third We efforts. ability means strengthen -- the reflecting believe our a we provide this growth important our That quarter Olympics simplified made also XXX to stabilization our end, create compared executing of had our content generated stabilizing cash flow representing XXX step for refinancing to we expect visitors the our We leverage progress market we successfully BetMGM kickoff being content results quarter, includes prior and structure. Paris free adjusted of collective drivers the is compared margins. content share significant with which to monthly the increase our intentionally of us our in EBITDA the revenue, season. platform. Subsequent refinance of were our highlight extended the sustainable that for year. In free expected growing and enthusiasts and launched is to of essential, approximately ability events, debt with and runway, Gannett's maturity monetization against and and that stay QX, capital political our we couple football well preferences. potential content to adjusted and history, million and partnership enhance of for a to demonstrates the to which believe plans creation relevant and trends, network our of first the In our in $XX that and And trajectory an future our average expected improving both to is to our the visitors our further we our of aligned transactions flow million strength the surpassed long-term have average cash unique which is sports year our debt shareholders. over XXXX ability value EBITDA forefront free milestone prior to positions unique our audience's year. reduced monthly our our as million X% the believe of we significant lead growth, This cash strategy audience dilution, for

softer segments. While DMS we to expected, non-strategic across than trends unwind Newsquest our was lower the most resulting and digital total pleased revenue our and are of some see and improvement in categories, year-over-year sale businesses from

encouraged showed emerging However, store revenue consistent and September indicator believe is our month the that with positive a the throughout we for quarter, are improvement quarter. we trends that strongest same as fourth

revenue will ahead trends, in trends inflection digital total we our we well as QX, drive point. us to to revenue closer revenue improvement our bringing as Looking believe expected

year about As finishing optimistic result, strong. a we are the

highlights like the I'd some of third review operational the of quarter. to Now

opportunity strategy tailor revenue X The QX habits. monetization from intended We line meaningful out in instrumental maximize outstanding audience our that trends based digital across top categories. and in individual X to and opportunity diversified that the of revenue customer have been a audience results are our to driving entire improving on committed to growth is

engaged leading forward. well opportunities improvement and revenue result, a poised are is as indicator our we a positioned Importantly, we we to future powerful further drive are the unlock, trend audience of believe to highly moving

ARPU we compared our this personalized our audience of quarter growth year. highlighting across the monetizing our significant and has able in area we We audience climbing pageview experiences surpassing on In $X. also the full our of digital-only subscription spectrum digital-only improved continued with revenue business. worth heightened with above prior digital-only achieve were QX, We through to highs, achieve QX. One engagement new driven as $XX double-digit wins to business is that digital to another believe focus million subscription

growth. Separately, is our turn previously pricing, believe growth paid to the we Kristin shared through initiatives Driving both provide we upside these of volume deeper saw digital-only of in Roberts. I Kristin would around engagement to quarter. Content as consecutive another Chief digital improvement significant we for year-over-year which subscription for sequential quarter and call category into this increased trends. that over third significant audience drove well QX revenue insights results have and audience have quarter results second growth in year-over-year expansion in digital in audience We marked subscriptions, our as the Officer, Gannett to the our Kristin? like the advertising quarter. fantastic

Kristin Roberts

transformation. Thank of gained studying desire. our platforms, you, Mike. at on audience clarity listening exceptional we've behavior the their Audience our and readers on By our growth to content heart has been our the

have believe harness Because with consecutive state we over TODAY As least we and a USA and our and at growth we our record make seeking both pageviews, industry billion well this middle in become in past majority, in race a result, year resonated of decision? we more X time. did Notably, only audience elections viewpoint months to political believe XX we content. Why leader the recommend the candidates the USA underserved NETWORK, engagement year. At generated committed TODAY have this decided the that resulting audience are X There this content roots is a facts-forward, local and the is TODAY, down-the-center USA breaking fully capturing America's in to are of news To as opportunity. has significantly our America. destination and nation. than decision we ago to intentionally audience, leading survey locally, a returned with a a our our potential, at digital future we have reflects becoming

or the have have key the across discretion but level. Many editors local endorse the to local state individual issues Our that impact state the community. and at rather, ballot on candidates, a endorse not endorse decided to local network

need provide That make trusted matter Our nation. public is to facts service the commitment decisions. the informed our is to and the information to with that they readers

coverage building also ONETEAM are the team is America We we strongest sports in Sports. what through believe

the our organization. the million where pageviews, TODAY our during was reporting an is coverage XXX evident over compared increase Olympics. of the of Olympics, ambition content nation's USA of become sports dominant power Tokyo to generated to The Paris Our XX%

promising also visit. the We experienced journeys digital success per have NFL, relevant in generated per expand continues We personalized present user and experiences, audience, to readership per increases notable develop our opportunity expected to with remarkable revenue to maximize and and and are approach and that audience, a believe sports has this create story. pageviews

unprecedented to natural to is remain Another we part key our serve, during essential the indispensable communities of especially and mission disasters.

with with newsrooms during TODAY from our and critical USA before, Network, and local Helene and after provided now hurricanes Our information Milton. the support readers

prioritized able distribution that life-saving information, water and their so sources such of food Our shelter, availability we service needs approach to centers. were to content as deliver

that web load WiFi pages. recognized also zones, not disaster in community We could the had and the no

and there might an addition recovery with updates, answer our they the time text rebuild questions efforts in have. be to weather content So both resources to and we and these take as heal. any service, English them. and readers regular communities recognize relief coverage, will connect SMS And that We launched team in Spanish, will provide with

to you, commitment to our Mike. on continue be mission. Back will We our in service delivering public unwavering

Michael Reed

Congratulations relevancy source our and is continued to Thank readers scale you, the and team your our evidences and of our of to as you content mission the efforts viewers of the news in the Kristin. of for team The information. your producing. really service audience fulfilling trusted

it Now, Chris? and hand let's quarter. for for business, on our Chris to I'll an to the turn update that, DMS over

Chris Cho

was had interest QX, with expressed any Federal vertical the Services our contraction inherently larger cautious larger a nature rate cuts. benefits Mike. was coincided a which this the economic these typically of vertical. that more you, cohort uncertainty Through that from in it advertisers advertising interactions, customer We lower sensitive not as Thank Home rates. saw spend operate enacted yet rates that sentiment the to from in Reserve advertisers cyclical were evident this In the by

am to in I that spending preliminary However, rates report are improving that show pleased figures October.

growth present several residential forward. in wake to the rate We a renovation recent suggest moving opportunity will construction of believe to we in have also rebound data and which cuts seen return research and that an external

addition knowledge to a year, In actions implemented in bring catalysts, key positive extensive optimism verticalization have Earlier QX. we drive underway further reinforce we focus in that expertise trend where these improvement and to we this our verticals.

We are winning QX. by expect solid deals last This as successfully more to from and momentum development, trajectory is a this the effectively into year. we encouraged promising than this we program, are sustain

as productivity customers. DMS loyalty have incentive as made customer new business. record the sales resilience and progress we launched results that for improvements shown by in also strong third several programs important, quarter We exemplified already our the in of solid key our well retention. Equally The potential, across high highlight initial metrics

We high continued in EBITDA million. run business totaled of at levels profitability, our QX, to adjusted DMS $XX.X and

We are retention. also to client and pleased both improvements budget in see

While retain increase to fit This count in accounts is in an continued customer high average our ideal approximately core maintained we year-over-year. profile. record ARPU QX, that its evident representing customer of which X.X% contracted of our $X,XXX, platform

a functionality demand are feedback growth excited especially quarterly expected quarter. which experienced unmatched DASH. delivers the overwhelmingly considering confidence in to we and our are XXXX. Overall, our in its our with business displayed reinforces When my positive QX solution, our be new media LOCALiQ features third report DMS customers, We I platform with QX the and launch our from strong scaled offerings, paired also solutions X believe and its that marketing potential, we months of in am good Since deployed resilience by salesforce. to momentum in supported ago, AI-powered in with pleased have received

simultaneously plan forward QX. Our a we in our believe and opportunity core to expanding DMS on core have involves we you I which platform executing will and addressable total our revenue. We ahead look updating believe significant market increase while increase solutions strategic Mike? us DASH, of

Michael Reed

iGaming as are well to our the sports Chris. we It strong this actions confident is that margins improved new the business and top are to platform ARPU, core team you, about the nice gears, BetMGM, in betting continued Thank leading will a DMS return am partnership business. undertaking our excited I as with operator. line see your growth. Shifting

engagement. audience. preferred BetMGM to sports presents online is odds complement We to and Sports, betting existing and sports BetMGM TODAY a highly audience USA casino a for significant our and the partner As will engaged insights of our growth provide sportsbook partners portfolio to opportunity further strong drive and believe

value those relevant XXX vast and in we of brand Newsquest, AI, significant of essential AI fourth lies monetization of strategic flagship core partnership the content long-term to a U.S. our As with this USA optimistic unique source believe of operational us. TODAY, that By Further, brands we the a XXX and are a current to source factual increase enhance presents well local that new at component strategy monetization in content, additional news a which The Gannett value we we from for and announced current our believe information environment. are opportunity in expected quarter. Shifting our Gannett can gears result, as partnerships about and another be represents of historical, enhance collaboration both national expect our strengths leveraging the believe again, leveraging platform. is a we of forming we promising of opportunities of network anticipated AI platforms. Through archived properties, align and this content. AI, the that as represents efficiency

platforms Additionally, of with Microsoft's technology provide to our launch AI a the syndication fully Briefing for Gannett's AI Daily summarization. to we cutting-edge use our Copilot believe partnership be business. In AI and content third computing quarter, develop leverages power that announced maximize we useful accelerate for ability will and

are While to and companies products. value We and revenue of modest, monetary to provides continued pleased their expanding their AI enhancement partner in the capabilities our the these we as continue stream this are we increase immense journeys. value actively believe expect leading product to AI with organizations offerings content evolve that is to

our the us are with engaging Additionally, help partnerships companies several objectives, closely AI values forming and that, and our of long-term with additional that anticipate align the strategic actively core we preserve call value content. With and Doug? full to provide to guidance. I'd financials, updated as our details around the well our third additional over detail to XXXX now turn as Doug year like on quarter color

Douglas E. Horne

everyone. morning, good and Mike, you, Thank

we financial As quarter of another produced Mike strong highlighted, results.

of QX, total were operating For X.X%. revenues a $XXX.X decrease million,

portfolio, of our impacted with and to performance. revenue negatively long-term quarter certain However, our this divestiture important EBITDA some these were or such actions but note of intentional impact our line it's not as our the did adjusted that strategic in in decisions strategy closure businesses

QX the this relatively in advertising, a revenues other in XXX that of with result, revenue trend. While and declined year, was points category. year's within strong growth same overall subscription, store improvement X.X%, line digital last significant Also, we and our half digital-only of first the basis digital performance our over experienced in

our the not combined expected, While trends the results in DMS line result out improve taken trend that DMS the trends, we the being mentioned, year. to digital actions and experience with subscription did the top believe in we improvement for in reasons that will close improvements advertising, the digital-only to Chris are growth

EBITDA into and Expense adjusted X Adjusted reinforcing programmatic our the revenue growth compared accounting advertising management was revenues. to we digital fact X.X% prior head EBITDA QX. Adjusted pageviews In controls. decreased XXX for representing total of digital QX perspective of X.X%, by its our strategic in of prior year million, solid to revenue digital performance Additionally, over supported EBITDA year-over-year. in QX, the and was an quarter. business, critical up in we Notably, driven QX, this basis $XX.X believe in revenue. a in improved the by out by $X.X X the improved sustained third marked The digital operating month that in and September X.X% X.X% quarter, XX.X% totaled that $XXX.X of categories priority, best the of year-over-year further is revenues reached or quarter, optimism and the cost performing remains points million trends year. Total increase compared as in million. growth costs an XX.X% the margin continued QX fueled increase in our

a performance, Our $X.XX, also year the Digital-only compared all with prior digital-only approximately of new high saw XX% a also Digital-only key revenue growth growing business subscription ARPU recorded period. $XX.X quarterly reached to subscription high XX%. strongest its across new of robust metrics. increasing million,

Importantly, well these sequentially as digital-only as achieved paid while year-over-year. growing we results also subscriptions

Revenue adjusted segment. by prior margins basis in points year-over-year, the Adjusted QX, Media up XXX over to period. the was segment $XX.X expanded businesses EBITDA fully to EBITDA In as however, million, increasing is X.X%. the declined basis at and impact QX reported Domestic year XX.X% shut Looking compared we Reviewed.com. QX, sold in including Gannett by trends of down attributable the a this on to or Imagn, Printing, Action

EBITDA impact the do the these meaningful reminder, a segment. adjusted actions of As on a not results have

Newsquest. to Turning

temporary For QX, a reflective local result trends our of in the muted print was top economy. line growth as of the slowdown

strong as our Solutions versus prior DMS profitability $XX in up lower million. XX the the a Marketing year the reached increased uncertainty continued core $XX.X year. quarter to the In of with broader in the X% representing platform XX.X%. In adjusted success totaled ARPU over a platform in margins revenue for sector prior QX, approximately home slightly of pleased which million, and We the EBITDA core EBITDA spending $X,XXX, the are customers, within added year, EBITDA the revenue our driving adjusted had core platform accounts up totaled XX,XXX impact X.X% is improvement total approximately churn nearly million, we business, prior environment. Adjusted of margin from over Digital result continued basis to However, segment. due declined with points reaching segment while X.X%. the $XXX.X economic

net million. totaled the third by quarter, increase $XXX.X an shift At cash of million. Let's activities the resulting provided now the at million, $XX.X operating balance stood of million, debt $XXX.X in Cash $XX.X sheet. our to balance end of

meaningful flow up ended million QX first cash $X.XX free to debt. $XX.X growth, during bringing high the net paydown repaid prior cash QX, $XX.X debt, remains a approximately real our to period. $XX.X is year-to-date We priority, leverage of total continued combined bringing completed also of with we EBITDA from and which the Debt total year-to-date which we X million. period. We lien with estate In X.XXx. In asset generated billion totaling make progress adjusted million our to sales $XX.X million, QX, $XX.X and $XX.X reduced million to free our of year flow, our we million,

remains a out continue some possible shift may fluid. number in the as sales to deals it of pipeline, have timing that We is asset of transactions potential these the XXXX, however, of of

business lien and a revenue been we our Subsequent we completed capital the for debt to dilutive on Furthermore, notes an third to of approximately that maturity As share has first stabilize refinancing also which the quarter, we maturities potential we balanced of successfully our extended structure. more also the reduced convertible to impact the the we continue XXXX. XXXX. XXXX we the price, have created build the believe notes of XX% all growth, remaining by sustainable effectively our extended XX%, of debt to convertible of virtually foundation a end comprehensive the of overhang

a an capital Debt debt step in are first allocation lien significantly in to to targeting repayment is believe an to successfully plan. lien outstanding outweighs the our profile result our ability benefit net convertible long-term increase our the our Xx. see future to As leverage We shifting the strategic lien and we first change to due the eliminating priority Overall, first our first and below lien. still our refinance important transaction, notes portion we of maturity leverage leverage. a dilution net extend #X of remains opportunity to expect net of our we believe

guidance. Turning now to

outlook unchanged. remains full XXXX Our year relatively

digital our to revenue current reflect expectation to We trends growth our are total for to X% updating in business. DMS X%

of our our XXXX updating reflect also debt free flow are cash impact to QX refinancing. We the

metrics, project sustainable although we for the believe revenue point and stabilizing key later growth anticipated believe financial we growth of progress in XXXX, is serve total our 'XX, are to business. the well-positioned a which third in inflection revenue our strategy made strength we we to in come our expected, than have is Beyond and consistent all continue quarter the guidance. We testament with the our mid-term as in to previous results

to operator we have the close environments, strong. shareholders. I out resilience for various believe for With and we across some and result, strong value can are our significant We it will confident we growth sustainable operating execution, to Mike will back closing we then as create now for questions, thoughts. that will our the hand shown go continued and a year we back

Operator

question Giuliano first is Point. Your with from Instructions] today Bologna [Operator Compass for

Giuliano Anderes-Bologna

see the progress moving the to continued Great milestones towards all you've the forward evolving out. platform, laid

question, milestone your active your you've curious big for in million seen good you're that the opportunities. a first how XXX business seems monthly and visitors. I'm users, As surpassing unique like platform. growth now forward That impact very and pretty a some you think will monthly

Michael Reed

and of the the the scale our represents scale beyond addressable it you, have, quarter. $XXX great total very our more more in pleased opportunity. of the is actually really enhanced fantastic drives million that's audience. indicator report the exceeded that hear and important are Obviously, us number monetization and becomes see is. But opportunity to what because from market just Giuliano, quarter on bigger which quarter. question. do for an expectations the That we And because because for that even a important our thanks the our engagement, scale we for was our to audience. And important we're the The reflects uniques, third every

more agreements. premium scale to it recently ads is ads, our drives our whether Wine from an our one enhanced through drives with local pageview offers, digital-only so through tailored even opportunity or subscription monetization, affiliate a Club experience our obviously, -- deliver So as monetization. Each partner programmatic represents teams, our engagement but e-commerce launched monetization

of monthly one will relevant So grows, for every offerings, those uniques. customize can a as engagement we further these journey which create single

the But fourth really revenue. what enhanced is That as The on indicated, in becomes start We favorable news third cycles based quarter. unique example, well I'm little to in we our bounce mentioning million and third will drive as here, quarter, elections for more some as did, will the sets the that well. have a visitors, news cycles. engagement. around quarter audience up the XXX Our bit important, with

the audience So with and are quarters and really driving. and thing we're improved on to other is I seeing audience mention revenue engagement that we've important, Giuliano, that the indicators leading that's go that engaging want been on based both as

encouraged be for numbers and those we've QX, And improved indicators digital will trends we're QX, XXXX. and leading so revenue in audience seen QX in by in the category in expect the

So being quarter overall, very performance post with the unique and a million number. pleased able monthly to third $XXX

Giuliano Anderes-Bologna

That's gears little great. shifting And then bit. a maybe

asset will things and and going some You addition businesses year I'm that And are if I'm that businesses timing a stand that, where to this how sold assets forward? related trend other as and EBITDA there's the sales. from non-strategic. the of revenue asset closed curious were and other that how you contribution the about think of maybe on kind those potential slight curious to sold sales

Douglas E. Horne

Yes, I take can that.

do kind all it's these a had strategy terms fit that So actually different well made we've to our that in kind expectation taken did or the shutter line Google with terms not commercial the in an would on, changes that really expectations we EBITDA. And very outlined about about our would minimal into look the $XX give the have of sell just and which to have non-digital core basis. of have reinforce number year, I of you one And important broken year, action were couple that at there. terms printing we revenue. businesses digital, our XX% annualized And long-term reasons. of during happened about businesses coming and And had a aggregate for quarter, not of of think the down would strategy. examples, various million of at everything that core on have dependent throughout type we've of operations XX% decisions one was business, say That to connection something that a was really in the would the to been of and with was that a when made again, top upon algorithms I no

allows selling forward. the that we parts feel were those these cash we focus strategy kind where us proceeds, to and on debt, So pay going us allowed and generate growth of especially able of it to down to expect we

smaller the bit asset completed that I deals some on of quarter. And that obviously, of to be we've bit some terms The have little things the we ones sales, in ones the did tend more In smaller sales, this larger. of close. pipeline. pipeline, side, a of more asset little would say a we larger the are $XX variable. terms includes, of And year-to-date, about a terms predictable some to a in and million are are timing of in bit number

would And although so that's timing why I came the bit. may towards achieve or kind into exceed asset year we the million level, a $XX say, is timing we shift XXXX. But objective that did to about $XX still working the could of flex fact talk little expecting, a million in into bit certainly, sale proceeds. our that And and the we're objective to

Giuliano Anderes-Bologna

very it. to maybe Then helpful. Got DMS. pivoting That's

quarter. more DMS You trends that this sector guys color specific us highlighted those are Can how comments on impact those a and evolving? give few trends you

Michael Reed

as on heightened in category the spend quarter. home softer one. the I'll to -- third quarter. We renovation And environment positive Giuliano, and really do in category a was sales see home of forward. the DMS going temporary, enacted We There for degradation caused our a sector. rate are as that really reasons in that the actually Fed a cut about couple a number the that muted that contributors were interest home and lagging believe the We improvement of the the big and catalyst in did jump rate business optimistic see Yes, the that recent we actually points bit environment revenue. we're of continued that

which and actions further to larger touch few specific. From We're momentum to our first Some increased of business. perspective, are encouraging help approach rate several company closely, we on the potential there's in of turning each cuts. Separately, to more have catalysts, rate A success to underway These clients. our results of the campaigns internal a for then more believe more point that should in as QX. macro we different a the a of success -- spending incentivize will a customers, internal vertical. already That's align for from we really current sales macro couple retention, measuring compensation client starting regard cut, And improve taking to And win some little that we're we're customers and see expect more customer the services kind quickly. ensuring we're seeing some examples. further we home accelerate based teams are create our base. the

internal So compensation certainly actions, along our environment better that of will touching to for out as think success. future. growth these macro improving We our trying look into QX all with the the again trends, folks clients lead with but we to tie clients' the

Giuliano Anderes-Bologna

And what very expectations give you out, about there look helpful. us growth. inflection revenue thoughts XXXX milestones the in are And can the given is some your I'm curious, commentary That's then could 'XX? and that on the laid like points

Michael Reed

reiterate XXXX. and happy does call able very our how full are we mid-term point. Yes, really we absolutely. fourth morning quarter to were growth year reaffirm to and close And based on over or we're revenue confident current the XXXX so which 'XX, this that which for 'XX the for inflection We're that guidance, trends started

So we're we journey really in sometime confident inflection hitting and are the first half where our in point of in XXXX. that

platform, to and driving answer call then lot experiencing improvement, really digital syndication the about Kristin new momentum positive audience reinforcing 'XX confidence that on inflection monetization advertising really across talks which all point give is metrics engagement us on in digital and the on that digital on Each is million a further will uniques. the business. We this the XXX subscription our of digital talked previous Some we're my growth. our opportunities growth driving flywheel accelerate adding improvement, digital steady that partnerships quarter, It's other are and revenue, about. our

base and Our to up digital XX% be digital subscriber is effective. continues pricing growing. growing, strategy is ARPU our year-over-year,

'XX we in So further in in lot that a of have growth confidence category.

And Giuliano, that's we really inflection year of as very annual revenue not show and in of monetization will next point most growth year-over-year. XXXX, for important post year. that's real And into so go is to improving forecast month to revenue, is is inflection an a have monumental platform full can XXXX with grow our point growth, over for DMS returning as the thing this we year. And our as XXXX important X to growth company which revenue full the our ability are we confident if revenue we

about So we we're excited are what excited standpoint. next and where about for year an see from execution we

Giuliano Anderes-Bologna

final Very [indiscernible] I'm there's potential the update helpful. one, Google a and your then or case. And if implications any the to read-throughs curious against as around

Douglas E. Horne

Obviously, their we one. we followed DOJ's case, in interesting in overall, that first DOJ's Google. behavior. would an Sure. the I I one who can I Google's they was, as and And is fact, job witness DOJ for our presented of closely tech Tim to compelling case. Senior case outstanding own argument President its the say, given to And our believe of putting in think monopolistic against that fact, believe a Revenue on strong ad And did Vice take it's the very case. note Gannett we Wolfe, employees, Operations

how of phase arguments brought the kind the importantly, to for on on by and Texas year are is Thanksgiving, ad Google obviously, And been dramatically all that, sell that ad controls March things enjoying sell before that states year profits. that slots scheduled of it I of to issue hopes begin And ad to there's that space of next ad post exorbitant terms all Monday that year. Overall, she action, end. scheduled of shares Google forces along publishers to business. follow their tech think liability the these judge Google has through to decision XX to light case is increasing a remedies closing publishers bring In other Google's a tech for And end. also monopoly would the rivals by XX being of the of revenue as publishers and indicated result, prices. And less depressed at and

competition progress restore will an that DOJ, flourish. to about So allow to journalism seeking overall, ultimately and overall State Gannett AG the we to all feel date. good basis, on the And the were

Operator

Your today Citizens with question Matt is from for Condon next JMP.

Matthew Condon

content Microsoft see AI your on quarter. your you wanted different your one didn't was past? with that the find first in the the hurdle conversations conversations of far about recognizing to that with announced My out companies is got the as Microsoft I you guys deal the that what value as other you in in just maybe just over

Michael Reed

Yes. Matt, good with today. thanks us to being for hear from and you,

of of one think that content content I getting value of what that to the it kind the of the things Microsoft able for were what understand is deal slice were about was and we very that. the was a we use narrow

value across indicator is portion it we of looking a compensated with modest go licenses, broader expect content, into organization to have AI. partnerships hackathons and relationship But from a tools example we do we're content. we generate narrowly can ideate significant to more about use where in the so our our Microsoft a of more we we revenue content. deals ways the deploying copilot of of And forward, and type fairly for for across the deal much fair employees. can we're great we strike. Look, our as is deeper prototype our stuff with perspective, go dice participated much Microsoft, of of partnership Microsoft to to it's how a Microsoft good the also, slice And slice while a with in example, And long-standing we've business. We're for

back value include and AI long-standing with the to relationship which of deepen content, I work source this use them content. our their our partner links our original to to as copilot our It's content So briefings, content we of with agreement a licensing narrow have maintain our said, summarized a allows importantly. allows but currently, us feed to

partnerships bring given the build rich, and year and AI past is So of over we're and and of additional to confident content nature archives in-house. what a our our readiness our we products diverse in our very believe to our unique ability also because activity

and go AI to a expect wide deals announce as to So been continue range we with do and of we we have small, partners, large working forward.

So excited about this, and it's just the beginning.

Matthew Condon

what my That's monthly is just the you obviously, election the your come ask, one guys next retain we of tools is in to you next disposal very to then cycle. do and uniques. those know as the they in helpful. have do that XXX users how And because of just on coming passed year, I And much cycle? million then think at through wanted election just about

Michael Reed

Kristin, are you on? Do you want to take that?

Kristin Roberts

so of our like our we in large right? And growth vast political segments readership then what not election what I'd boost had a base in to that and news to we've big steady over have where these additive there. grow consider seeing X.X the and politics. in over the also will uniques the actually course uniques jumps of both be of average or last see to the other of year the year doing been Olympics. take opportunities entire over disaster natural huge to be happy our finding But pageviews, viewership years, we've The is also a majority We've events foundation, our related readership course our in course but been of become large that. we monthly what or monthly to so you last is moments the

additive. on the simply results XXXX dependent it's fact, And the not year, political been so are, from in

That's all we're understand data that on we're so of we're continue the studying not And on steady, our repeatable news our the just that persistent, are seeing on one-off predictable, using behavior daily to events. to the the to need we what growth tactics understand basis see users built and a contributing that what's platform to they want these from audience, in us.

Operator

remarks. reached the call question-and-answer end I over to and turn closing for Mike We the of will session, have now the Reed

Michael Reed

you. Thank

I all into with -- as key mentioning priorities we our So we're did We QX. optimistic and head strong thanks close joining. a just had most third quarter. for of we're again, everybody, we would have really solid execution across

earlier remarks my across metrics financial I in trends in As fourth broad-based that in quarter. pretty we the our do expect mentioned improvement

our you that Some over It year trend optimism Doug, generated EBITDA forward. cash prior as we we and we on from final cash QX as up the is look free percentage significant heard flow year. thoughts Number adjusted give free was again of that significantly flow. year-over-year generated growth growth. And us one, our highest

$X.X the in loss over year net quarter. that adjusted the quarter prior was million third third $XX.X Our improved and million

We there expect trend quarter. in the improvement again fourth

with We revenue sustained quarter digital have trend categories the there. showing growth year-over-year X of about excited what We're X holds fourth improvement. our out revenue digital

in million bit, for history we in company's surpassed the As average the just the XXX we monthly in discussed quite in a time -- first uniques the quarter.

debt delever reducing and net to further EBITDA adjusted continued lien leverage. growth We repayment, through both first

of in cash with We the quarter. million continue maintain to good over end liquidity $XXX at the

of debt extended and know, the comprehensive debt our convertible successfully complete being dilution most you maturities refinancing significantly to third as quarter notes. of a did addition, future In our subsequent from the that we reduced impact completed,

these So and were really head of to 'XX. as quarter pleased we into as really confidence we we that get head our done. Each reinforces the items into

just to excited time well you drive value we forward and about everyone. close the fourth and again is the vast and updating and for we're to growth on today, we stand for we out we your here how goes we Thanks shareholders today, what As year. long-term for future look Thanks, positioned quarter the opportunity are our holds. believe the how

Operator

time. and this conference, your at today's your concludes lines you disconnect This participation. for may you Thank

Gannett (GCI) 31 Oct 242024 Q3 Earnings call transcript