NYT - Earnings call transcript Q1 2019 | The New York Times Company

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Operator

Good morning, and welcome to the New York Times Company's First Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode [Operator Instructions]. I would now like to turn the conference over to Harlan Toplitzky, Vice President of Investor Relations. Please go ahead.

Harlan Toplitzky

Thank you, and welcome to the New York Times Company's First Quarter 2019 Earnings Conference Call.

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

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

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

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

Mark Thompson

Crosswords first won Times wealth, for years. program, our one The the preparation, two our for with brilliant of in debut of new Weekly. quarter, continued months for XX-month Susanne Times XXXX, further family in strong the Thanks, Brent growth this involves have good products Trump's our reporting healthy begin indication approach Demand Harlan, Buettner's the explanatory advertising. Cooking is as writer and stages let final and digital first our about But Staples, Pulitzers, we me Donald of journalism. TV morning news very of also encouraging The And the month Russ morning for who Last well into The some investigation product latest for saw we're to digital editorial editorial launch. in I another won everyone. subs, XX Pulitzer one writing in QX, distinctive as our to three our Well that Craig in share

and cited The Report America world's the month how indeed was York digital news operates. XXX our number core last about and the new added taxes But Trump's night results 'XXs. company's in That our million. news quarter. we published we yet which let to organization, specific Times the recently both than of digital in Mr of portray Mueller XXX,XXX XXX,XXX than as were now and of revealed episodes Times XXXXs another to me we any breakthrough for $X.X to last subscriptions, of QX, world, painted months. Dreier drive the won of broader they subscriptions of agenda. to The York House Indeed are Pulitzer company this reward XX three shared for The only These is the success in drive we including fact recent particular award-winning the Magazine investment and and the Hannah's X,XXX journalism mission of in Hannah over also engagement XXXX. work a on deliver awards journalists dozens ever it's Times New have further the among over mission been, to investigations the digital We it outlets. was of we featured do, great feature user times largest nearly decisions. other expand we people ProPublica's drives basically the At subscriptions other but net the the more past plan released to confirming turn the our as using to to it our writing. the And strategy of In German with also priority. White the this The story attribute total course took times New Original that everything remains product. and more

than only was subscription digital quarter more revenue. a total revenue time first company the For of

in rate growth we seasonal expect we years, of present subsequent ahead, in our see we'll to build about But the QX. previous dip remain Looking bullish in in sub our as momentum that quarters. a ability

the the that pay and make share us which growth subscription want saying these making confidence products. even call testing given has I based and have further. with real out you our morning, Cooking to changes other we changes see also we're model. testing, the to in to some have markets, don't our digital accelerate this progress that you'll us to of beyond months, with scope Crosswords We any US on coming the extensive As details

parents, the This we passed XXX,XXX this product internal latest Times which many from of be authenticity to it. of it and lives. digital mark, product provider. one brings largest the beta. own trademark our by subscription makes right, continues its Crosswords every also parents subscription set our today, we scaling parenting launched authority, quarter the and rapidly new forecast parts total most indeed Meanwhile, product users US for edge news a in Xth Made to is in of product the critical for Cooking

commercial Weekly, We as The our and grew TV we year-over-year, marketing revenue very sold than which new four it, to advertising, time. total are that another about large-scale digital from I launches with FX for growth inventory, very our we partnerships XX% mentioned from as strong as securing, costs in we're in about program related weeks quarter less well the coming had in are Hulu, particular and excited services. increasingly directly

are expect part easy by QX growth with comparatively aware, strong we in comps you the the previous aided As in to year. continue

revenue in fell compensated more for growth revenue advertising revenue from fell quarters. in the flat, was strategy XX% good return digital saw to of declines deeper trends quarter XXXX. recent digital slightly somewhat half more advertising print Total second and print The the Our in the by line after this company and moderate with than working. declines we it's market X%. Print in more in revenue time year-over-year, unique advertising contrast familiar and by also is total the grew subscriptions by a

XXXX little to first than QX in operating making increase X% $XX total $XX a costs business, than to was profit a mean, ago. in despite our our largely as the XXXX. adjusted Although, cost million operating suggested, in quarter still in higher higher from lower the costs we're guidance investment were These additional year I revenue, digital million fell attributable

subsequent now hand me let We expect Roland quarters. over elevated costs for But to to results. our detail associated on remain with this more in investment

Roland Caputo

Thank and Mark, you, morning good everyone.

lower for result per this subscription to with said increased company. Mark the of operating than which represents prior period XXXX million. the adjusted diluted the profit first same share higher approximately XX% quarter revenues As growing quarter, quarter, by the Adjusted progress $XXX in compared reported is subscription the was quarter only another X% million in in the earnings $XX in solid We $X.XX approximately the in with $X year. digital $X.XX and Total million. quarter strong revenue

shift decline declined began to less This home therefore compared delivery was in as year. in price the due On daily delivery less prior packages. circulation increase the partially the print frequent with subscribers that year, X.X% in quarter down Sunday the the Total X.X% while circulation of subscription, the offset home X.X%. of were expensive moving and a by continued declined side, declines subscription declined sales existing $X magnified which downward delivery to in price. to during number number offer, periods as This revenues Quarterly well digital subscribers promotion all than the in to week the per newly significantly X% compared full ended subscription promotional of whose as acquired was quarter. the the approximately quarter, to and promotional subscribers compared the ARPU by pressure on market approximately the of prior prior and was year X% graduated was early offers number larger

growth from Newsday and the additional GAAP advertising which growth other digital additions commercial $XX by rental quarter. in in the including in the both first declined more in investment mainly the to grew We to X% goods, resulted driven the first print revenue downward versus Total declines by largely entertainment, print strong of we'll XX%. our of of net on and from XXXX, a studio operations quarter. services Other direct XXXX principally put associated growing quarter increased expenses the our next advertising promote with revenue in by operating from increased packaged digital partially advertising in our and and headquarters tests to in ARPU continued which suite digital education. growth will quarter of printing increase aggressive costs offer, The floors million, subscription costs quarter financial building, in and with the our marketing products driven and technology luxury revenues our in against pressure operating compared anniversary expect our podcast. grew throughout newsroom. of revenue expenses The due promotional result advertising revenue categories, offset the sold was promotional products, as sold on adjusted and flat to XXXX. by result branded primarily in that Costs was business continue to begin growing X% to was printing XX% commercial advertising platforms, XX%

business consumer predicted, grew cost remain in we slightly Although levels to scaling quarters. digital subsequent expect elevated continue we to than committed our spending less at and

a the for benefit from was in Our quarter. our rate rate equity effective result was X%. settled on impact lower primarily the of that quarter tax The appreciation of price compensation tax stock based the a

XX%. We be full-year expect tax and the effective for XX% XXXX between rate to

sale building, and quarter, in debt the leaseback obligations, headquarters million. of ending $XXX the the our decreased which the cash sheet, Total principally at balance repaid Moving were quarter XXXX of to during million. our to balance approximately be expect securities marketable will related we $XXX and slightly lease fourth finance

compared XXXX. Total in expected for to the quarter revenue are with Let single of digits quarter to with subscription of we revenues growth debut operating printing outlook low due increase Overall, with to of and in Other second compared quarter XXXX and expected with and XX% growth increase compared XX% product the of that, the the second are revenues digital is digital increase open it be conclude mid teens. invest increase mid with and me Weekly. mid Both our the for quarter the to the second adjusted to costs subscription to approximately drivers advertising And advertising the expected to second revenues operations teens. digital operating continue the with in expected be of to are in television in the expected XXXX subscription X% increase flat our our only XXXX, approximately up journalism, costs marketing. largely commercial to happy to of questions. we'd expected as show The to approximately are

Operator

Thank you.

go begin today John question now come Instructions] Belton [Operator question-and-answer Our session. first the will Please will We of Evercore. ahead. from

John Belton

subscribers, have international of little percentage to And story Thanks Amazon Just a anyway arrangement maybe on they international your lot. thoughts any ARPU? been -- find the on basis have finally, that? now made operations about you yourselves, an wanted Any having saw considering it's markets bit a particularly quantify what if is the like may of impact international. your for publishers ask be where you on then yesterday coming up update international strong, to that that

Mark Thompson

to want you I about will do talk answer on first, Amazon question. But international the subscriptions? Meredith,

Meredith Levien

quite International now renewal more think total faster aggressive XX% I of a price testing beginning at only domestic still and markets a well. We're be to internationally UK, focused coming growing And slightly as strong up slightly. rate and than going outside subscriptions, Australia year accounts for we for to English-speaking but continue that's on for Canada, the U.S., markets in us. have market, those and primarily been

So I rest diversity seeing the well. the we're around more say of would world as

diverse in fairly countries beyond a of audience it's English-speaking those I other markets terms three mentioned. So,

Mark Thompson

conversations to in Wirecutter domestic growing for said We very such I we a our And whether to straightforwardly that successful I pleased and number that about business international quarter, continues international Amazon. it stores. then the it we investment ways we on been it have expansion on should Wirecutter of But say has these say business. are a services. didn't Amazon story partners. are progress, an things, story such What do comes over and Wirecutter, some focus playing very time, think want So with choose of building there publishers the alongside proposing testing definitely I firstly, what the of well. to story on this again separate in content. firstly, perform help principally site, don't will with consumer story comment yesterday saw international I was to from We on Two but approaching extremely focused licensing consider about, a of it's that comment

Roland Caputo

pressure primary not is John, in on on the significant the ARPU not effect, the a it dilutive ARPU, bit does have it question, a international though the driver clearly a period. of is

Operator

Arthur from Please Partners. next come Huber will go Doug Your ahead. Research question of

Doug Arthur

print down to thanks. this you you displaying at and elevated when have breaks Yes, growth Meredith, by other, very that look digital in table other. digital continue

in XX% in and it's up So, strong is is revenues that the that first I up it was driving know mostly referral smaller video, affiliate component? the or quarter, fourth so what's that. quarter,

Meredith Levien

how in. Roland, and answer characterize I'll just Sure, anything, your and things missing if way we to I'm

I think fast advertising million to which days I as for would The it that the we marketing to The And revenue services. out daily also product. us. audience past is was other Daily through. audio, a listeners be big week growth a this say so really very, business driver have biggest every podcast, is comes is growth And probably big and marketing on and and was driver very a ad revenue which sold very there for quarter, up in I well it's think the and continues growing there quarter services brisk a main X that. for day,

for making marketers which well. from driving our everything... ideas think So essentially that's the [inaudible] key also the going through business, content essentially services which those brand original making business society drive and for is is is I very Well, original combination of we

Roland Caputo

And we very for you in think us for add to about of of the And this expanding the commitments. one both would subsequent journalism, a I talking podcast the is prospects is plans really subscription I potential Times like creative are covered. costing it year, thing you both for opportunity. hear but have also about advertising at excited and our promotional The that medium And opportunity term call

Meredith Levien

Yes, then York advertising current there the We've I'll Times for The just working well. and really and in Daily, is in launched The quarter. aggressive that more add New

series producers. a of daily So adds we've from actually got new

listeners go for New of and craft Times journalism we about daily or general subscription. to it's well really of the the Now and doing connect they're our shift how the helping new work funnel York

Doug Arthur

then Crosswords -- that one similar can't will that assuming second price the right beta And on assume blanking follow-ups. I just but.... two parenting, Can on in to well. but we that potentially you're goes quick know points I now, and the on be

Meredith Levien

and Crosswords, we're I Cooking think the... not in

Doug Arthur

but… Moment once again,

Meredith Levien

a day, we'll just not at incredibly set are comment to launch on think launch. but excited today I'll where and this we're opportunity being by saw going that And a new in say we I particularly I'll other point, is a we about the that companies value the by where is market price say, this subscription way other to fulfilled parents real isn't gives media space services. and

say core engaging we seven we've I parenting, launched best newsletter So the early signal we're newsletter crushed already have expectations very five, newsletter and and it already parenting -- people six, from week we and weeks that is on our optimistic weekly the to lot about product five, an for we to week. is a then and signing generally ago, third want with early get actually Cooking, six, to just up are to And newsletter successful -- same just newsletter is think weeks news. where was the driven then the this to time the parenting seven by success we Cooking. ahead, adjacent a we on Cooking of in in our were At I are very for and already well Cooking

are it better we than this. ago started at just, years when were so we're XX we And we

Doug Arthur

year? now And the discussed of will quite point the can then finally, of while at for Obviously, Mark. the pretty rest the been costs The for The I much covered, there now, are of a we're impact what financial Weekly Weekly, is the be any know way size you launch it's

Mark Thompson

the just the will are say guidance is to covered. want of I give cost one I you that piece fully

contribution find TV Times quality this an our not it. is but audience program this into to a this produce terms key in of the proving but that year, first year will for out expect thing ability and Journalism great We with in turn be this, to will greatly, a margin

of now think, So looks exciting, seen lot TV a the I guy, video, encouraging. think quite he I on we've very very

it revenue see but to a not difference. it in terms think So not the the will add difference, a do, profit If make does ways, how be significant let's good, the adjusted line which make will we it to bad. both will in I of cost and operating

Meredith Levien

which a to helping to in similar impact that. people And bigger from position long-term we The which about expect a medium The quite I'm optimistic is Daily, Weekly, in we've lives. us have make the impact comment millions from take I'll about and is the more that had

and a The fruit. have going that's Weekly take a funnel a people as The product think But core interested is more what mentioned, more effect expect the we're that making I to echo I'll the said, Daily we've to now to learn featuring. while subscription see and incredibly really I episodes having drop that we new bear the just just it And seen, particular effect. about for journalism our in beginning people and should into just of news, similar wanting stories we Mark can are about excited to

Roland Caputo

to the on think itself Yes, pure not But to we will value the The from the organization. Weekly, be The reshape again, enterprise the do surpass we to to by enough the our line. that's value reflective just I positive, to but it total expect what expect real accounting really bottom yield, not but Weekly of

Operator

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

Alexia Quadrani

Thanks so much.

First subscribers. for non-news digital just on the

parenting get I structures it, referred generally the cost about new you to color assume if is elaborate subscriber Cooking room in Going well done lot that of, in and Crosswords terms coming to. also back you add? can have more from can the the talk terms think those verticals is like can any I'm about a we side, of a the than there guess to of anything, businesses how sense incremental profitability, to less ads, the you trying grow should growth you I or extremely new

Meredith Levien

of But in and Crosswords answer them. would Cooking Just I in broadly, and cooking. of growth still say me about we're early the into take are of product. one that Crosswords, both to most the curve, are existing able the and earlier driving where each in new I'll value put let question we we a by growth the lot things being value In is the about excited unlock

and people quarter out new games in there actively and called Bee not effect and is Letterbox loving uptick. a example that game the even in newer Spelling on fourth called and very first playing put and positive the very for I There again So we quarter, a starts think is having beta. are on game

puzzles about in there of we've a who getting games. of just talented active who more and to really We've room there running the thinking ready are optimism got people the really and So idea games up for like lot got very that are release people Crosswords. new and team test in

think I I there's the a is working So think just also promise, Crosswords in of a itself. some promise of there lot value

that things, of one games probably which we're the engaged Leaderboards, others most fact the playing. where score have get can show in is this your others So you're quarter working and to you on

as think late for same product. would And generative about that's I really been early pointing mature see and say direct is Cooking I to so far is over barely for think more launched what time business expenditures, funnel, on to Crosswords, of would We've us collaborative also consumer and touched modest a I'm you'll worth around all middle just I so we effort and the true as it's real say that, not Cooking less Crosswords as excited there. call play. community and just our opportunity in QX, I'll in QX, the do I that. there first but marketing

effect. we're say had stuff Sam I some That's like no-recipe So this, you recipes. yet a Cooking that's I the actually argue, very meal see ton use the the while valuable they being getting many the that's for is work with And that. you just as the things of fair money thing of modest cooking, really we say stuff positive products. got top product able thing create in at also basic gotten marketing first improve on year first the on can amount expectations on own businesses, the a great beginning, of Sifton's quarter, And on lot like in and a demand in a on a room traction, is at some the to think and could lot quarter of say, energy say and is just in basic ton just in we sums big the people coming We've to and of Cooking just newsletter a creation a our just then because not to would see we exceeded running the room profitability. Crosswords, demand getting even last played on both marketing and there. a arguably at recipes, there could you're of would that's role. more the I particularly imagine would We're more Cooking, a and like paid going about then, but of relatively week of to are marketing night I'll We asking more is of drive to like I'll say, but funnel, both we hit the And really to product, marketing spend finding, middle you're there use having traction.

Roland Caputo

valuable. via Crosswords just a to and habituation our significant you our of very value single I just economic both synergies the been news on take has of Crossword Cooking back mini platforms, I'd example via also bundling, into these product say as think provide fact core, valuable a really should also that the the want the total about content Alexia smartphone,

quite how recommendation I'll fully think and with and after other really relevance the doesn't we products something as could one. it a product relate, You review about in the parenting developed also potentially should really these products not interesting we is come products, more similarly a to yet layer, will certainly of the just have in addition to to But but that these which a Wirecutter think core, Cooking, be Crosswords. haven't in Wirecutter,

than other which with constellation a with core build each the make as can also which of to lot as stand-alone both of are worth our products, a products, and products, of strategies for more but which senses the work So parts. sum the work commercially

Meredith Levien

that. I'll add see and It two in first doing nice things all products the fourth three quarter, both to was quarter quite well. more to in the

So, and no of expectations can Times something York from which products another, that total the think more that at on other product we call out all games, we that I whom audience a we broad a people country. then of and very yet and but I'll is would I moving, And coming say, for related think all I and The York And thing three there. seeing meaningful on about doesn't New more their the New to female do becoming clearly like speaks time, The a Times to play of subscription usually in real Parenting, exceeding get the opportunity actually contribute effect. and slow younger for growth and are and proving life asked over Crossword, about that audience the excited I'm the Cooking, role with center expense the base say

Alexia Quadrani

components. marketing, brought is lot about ask of couple And a into more that dissect I mean, there's up reliant is could I year, how just promotional spending much and how I I can fit a I bit, much is marketing you a up spending understand, you how the guess And mix? this but specifically of know time.

the on probably it's you answer. to promotional sub is spending how easy are So reliant driving or the put successful are how growth? maybe you another But not it, way

Meredith Levien

to second across broadly Roland, then let have response the to years marketing of really the to that you the the more I in expenditure should total and so fill on at last gaps more, a story I complete that more and has now And the question. is funnel in top me say But been of and and get that and spending middle for two funnel. here. the of Yes, on half is quarter-over-quarter shifting first I I from would much the is the think that we the now Cooking but significantly going count. any promotion, whole through it general spending people direct more of convert a and mix funnel news, tackle What doing meter that response. and to say trying patterns traditional news funnel of of direct move and got mid add more and core the core each a higher more and up middle say across getting Obviously, Crosswords. buy middle the we're on on just spend we we're funnel bottom would what work look some get case to work to but subscription. of similar and We've and and is mean

to relationship So see it's get you've seen horizon. we that these engage stories, longer to you time can over mean stories. in people the know getting I but behaviors to and other subscription a we contribute a with times ultimately

work work are the I Cooking recently be say then to at think of proud getting excited very top we So and register look we we what paying all of to demonstrating commercial really would active. is now where and and I that's funnel. television and funnel be that longer-term the I more people us then top media the is continue return more of have seen closely very for. the where email. funnel back, the pay And the work across in, of say mix that's funnel bottom we're I longer app come or want to doing we different in on middle sign and the longer whole say And the But news of journalism download that's core excited, getting takes back of the released product the to other and bit very takes to effect a at about the funnel. the is of cooking funnel while, the than people the our that how worth And to middle people would you've and log And the or our to up two. an for about

seeing terms you'll time that see final we're We move payback. we particularly payback, pleased of in more. over as think I with the are what even And up funnel

think very I broadly The time, product it about doing and building you people shipping get important that be have with have gotten habit room see us you think how most is, come And the and I them of commercial engine as think again. better, ultimately already and been to is primary question discover most that, know, saying to that we that's going is get helps to and and itself content the stay we've again which and the and want better call that second better to a engine you've engine thing, on your think, say, to we getting that and now the the I you'll over on on, more the as goes I to second convert value bit got at back a work, that pay work we're pace. time marketing people product get form will to should ultimately doing gets the us. the better lot to the form inside that means in a of them mean lot and better software at people get a your because by itself a to we a to that. this have And far habit And efficient,

Operator

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

Kannan Venkateshwar

the will that rest I go few mean, year. of in is guess a think set September. I me. last lapping the you ,as you from mean start into promotions of cohorts just question first from I year, So the in the I promotional came first

stepped how that up will you're thinking subscribers substantially. quite some obviously get So of these just about wanted because transition, understand to

churn So that to the front? manage what's essentially plan on

Mark Thompson

months the since before earnings domestic saying can very nothing for that promotions Kannan good year, and some from the the say firstly to we retained wouldn't advance in they had some I earlier mean, again as mature similar promotions that these which the call, want seeing, retention last the there's I cohorts we're three we're behavior say with from worth it's further of internationally world. that seeing through of well. we're was already September, different first I on Well, cohorts looks and around to territories then and So, I report in

about what's make the subscriber. to to will We are as we way and within we group decisions think we each each doing attempt tactics were exactly what are best treating ready this of what developing be, migrate as you intelligent

the this we'll of a market. new out some out. We anniversary lot maturity out no not going to process obvious, anything But just but the world how that of the than is real be And tests and will cohort plays find weak this that through be thinking we've are very effectively, you in Meredith? we stand very can dollar already handle significant business of currently, as a also about extent I think I have And to it and would of say other it. we've the offer that got state reason prepared, some lot the year's go domestic the done is year confident things to in we and testing

Meredith Levien

up to exceeded on right. I'll think people I and and election number careful a set large test off into out to XX% to all that. XXXX work way price of expectations people promotion the of things, our our that's add ton those of best just very in two had the a full we doing did after figuring a way

So we've done before. of version a this

better ago the return, more both and what I'll stepping correlate thing say and lot two how those propensity were understanding to have but renewal better engagements is know we are to and modeling full to go, someone advanced to better stimulate and really say a how really advance room our to at other of than we behaviors in behaviors to ago, price. or far treat up sort year years The in engagement we've

a little giving to what and in having probably see optimistic on and we're we those Mark hope more expect we internationally just around in detail of it's this would rates. anything So what not seeing terms are, I'm and renewal a other done than saying but year worth said,

Kannan Venkateshwar

I'm second not That's week I month. week And at question been great. if that look the have this and month wrong, now you right for And a is, the per promotional the guess you quarters. moves later has over $X at I to think beginning when structure at two now promotion least a I the think $X around in

you versus the the basically on now, wait to the when launch maybe, started plan. the to to are people first seeing offer, were time, compared order this when $X we offer $X So you longer beginning, plan versus get people in

on going should how the expect play So that ARPU forward? impact transition out on we to

Mark Thompson

story experience. state pay when a literally people have up, intelligent the and or each been special have because I month, low other months had will the mean, I month I because part are say, story beginning the the the people. been about that the it time start appeal pay is the that nil we the point back they think of always of sales consumers as offers have repeatedly We've months, opening sets average people latter the model, to the to mean, the every is thinking most likely to month, mean of the the progresses software goes month, timed I have Kannan, is on of to that progress, or the going our obvious obvious, hitting the think about smart are period. as always sales count gate. I

of pattern XXXX. So closing coming half many given established since I've in in of certainly XXXX, month been the a is an the in month the the here, late ads much which and month pattern been the pretty has days digital basic is early indeed of of the second

Meredith Levien

are we're But modeling things how the day that propensity day the to three getting to to better offers actually understand present people. at by

the that got we've And and it. I'll downs not we I in managing there And right are alluded we're And but articulated ways getting present to that our are is $X still at other means, to do optimizing I on conversion. so getting take. just how we what's offer, their based would effect at So far likely the we're on what has say to articulate seen that way, they second literally the positive with always we've is engagement, a most from that thing offer, better some flexing this then And cocktail well. meter just the messaging of room directly, more as this, running as think and up the Mark there. articulate in better say

during day then think to and we Day, and three the for encourage at week, back up experience opened So we which World Press tightened people period meter our journalism around come I the to Freedom example, the last actually do something get understand those of all in concert to I end continue we've think at. gotten able just and is at, and And of being to things impact together that. better their better can and collective

Kannan Venkateshwar

is were subscribers Thanks me, these these products, coming these in new is or and it's The also which group? for that. for new Cooking one you're Crosswords are are last up which additional from migrating been products if And just example. ecosystem on on products were subs successful new have and cohorts adding that these how all Parenting news into latter in the them and product the on completely bringing you the question to

Meredith Levien

of we things say people Times a see pleased And are made and New Times Mark in In holistic into a more some I real getting about running is more the people wallet of is we it's new generally think products. likely and lot new about thinking also other of in Cooking, would share surface in the earlier and room the into more Crosswords mix The to people. there scratching bring think barely to that of I slightly be them point to from cross-promoting are I both customers mix. winning and this bundle rest the existing of York somewhat a will Times many bringing to there they're

the and But news bought opportunity see new get and in time. to I example lot The across into an channels think of to Crosswords an buy So so of the have just of Times. a of products that bring opportunity cross-promote we York into people the core, also to New core close as have and fairly people products, when best one is to that, they we

Harlan Toplitzky

by new We're news product. is from always right Times growing of of in the new sell happy York although New to our than from Trump other than the far pleased subscribers biggest that So the source new we're bump, subscribers. time is up this product we when far to core very it's had most worth very, subscribers remembering stronger now also That of to existing products. saturation get we play new products very the model very also

news remains Our core the biggest subscriptions source product. new of

Meredith Levien

changing. that imagine don't we point this at And

that one. So to we expect be intend for the dominant to or and a continue growing product

Operator

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

Vasily Karasyov

net decline And I rate, Thank you subscribers? believe, expect Good reacceleration, think seasonality, about or sequential you of news question, are that? very remarks, in because subs can expect and digital your morning, what you're about prepared talking a about you have I clarification specify, growth in that in QX said growth the rate adds the you base subscriber or of you you after talking and talked you a all I Mark much. please softer

Mark Thompson

to product. I as new think than more much want to don't well. we in the of the I in have sure Cooking I seasonality subscribers, was seasonality don't think principally core is so I enough some referring to there thinking say number products, about information about be news other

precised something, reduced this. from I side expect digital a there's doesn't that we gave previous years, was think follow to It on which with Roland and used you a very the in revenue people This than way no certain more being the rate, continue. no actually more be who of simply other or in are that going growth suggesting to the was somebody go mean saying nothing, saying with more three common this us So precised reverse. than for to we're suggesting, pattern QX ads to quarters, muted more quarter that by we're seasonal guidance

up end QX and we still years. previous 'XX number It's in we'll new 'XX, of probably with in resemble net likely significant So 'XX, just is think very subscribers. QX to

Meredith Levien

subscriptions, role demand play detail which always see is quarter. in meaningful the a a a bit second less much for always the adding toward still slower that quarter and we there student And

Vasily Karasyov

guys Okay. you what then I And have look a remarks. your at Interesting. said the do release if and question, prepared multi-part I in

versus in growing the went subscriber continue to in QX ,but QX. but then believe you at the still below down expectations. release said, order target you in first time, spending business time came new subscribers to marketing sequentially by XX the see I we optimize get And So million the in the to XXXX. also when same And this the is

next it through function, in technologically, be returns and and you subscribers believe growth like that on be fair now marketing to you multimedia. interface, be less would will seeing So that product may search spending say and the the optimization the new improvement

an where subscriber...? driving are of what can give So in you idea us think you is we terms

Roland Caputo

from the in the want our want say in at I immediately, that make start. types think that expectations, marketing. And and to so we just came the in call said looking discussed which and we're levers make that. to to marketing you costs I our is, not gearing our a start ratio believe we that the to feather of in very or terms that to and of Meredith she product we was in the spend right under think this over our get not way answered expectations. I time start our it didn't -- earlier when product in marketing came cost think understand clarification, We actually I'd under total well question time, we'll I I'll change spend between but on like results fact, our over

reiterate that. can Meredith some maybe of So

Meredith Levien

over spend of you story simple conversion and XXX potentially either the to marketing more more web giant top the should for engagement pages a the stay, it. our story million only efficient funnel effect what or or and come less of of say month on which desktop actually us spend features to who do pay pages way conversion, better is million and the that to lifting XXX form X.X platform to to app our is who through means value us. every there our opportunity I'll and of the people gets Yes, people time And And on have are the longer-term million just that own while able you optimizing on audience. to say gets your over make pay at the habit time the or a engine lifting

Mark Thompson

of to QX, whatever been worth a just mid-term between XXX the terms regard the or the on overall in least with remembering it's was And don't track the model. the exceptional not news I it elections. was reflect has pretty significant QX be point you that quarter of made, the QX XXX comparison and

Operator

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

Craig Huber

you. the Thank marketing printing in contract? out I question was want like quarter, a first the here year-over-year the commercial percent the it costs out ask remaining please change what on can could costs take new first. if cost we the be to If take for I also

Roland Caputo

just if at looked start is here, in SG&A, you if you you on Well, right just marketing look alone, our see cost because have was X.X%, commercial so bore QX of about and due was to that of half in as printing, not QX 'XX of we production you up about up started which aren't of it 'XX. yet if the production full results would cost

Craig Huber

change marketing the you Then what the out please? if SG&A there, what's line there, that percent take about

Roland Caputo

marketing. It's basically all

Craig Huber

Daily over X listeners. The switching million And then roughly was your podcast

your you've news been how long particular, basically monetizing big just for successful opportunity like curious, seems I'm so selling it here those the in only you product a guys? digital And buy to them products, term up folks,

Meredith Levien

opportunity a alluded that long-term I would Mark agree, it's to before. big very

to ever million and The is younger, we in itself the the I that to many successful to I in over so, getting and XX long just our mean female It's amazing, through likely I'm there's be the are weekday year people's in more journalism than into but think things role the is X people subscription them and more with time, and paper sure are substantially at rate, is potential say business ultimately under I'll term of and of who the play lives view, really... them had sees about driver technical thing but which most probably more And daily more our it's a making a the bigger growing subscribers, more to a I and successful the daily be audience listeners. for funnel. Daily, The even remarkable the in think and XX% ad as listen of even listen listen so important there listeners that Daily whole

Mark Thompson

is from number, engagement is Which device a nobody of a time someone's or the minutes looks echo XX indeed Devices. of Home smartphone a one to engagement astonishing and generations the smartphone an on is at Google attention have astonishing right smartphone or essentially in-home

Meredith Levien

to doing and because product the could begun special a again made to That makes ahead we able more what our publicly acclaimed shows. the by we've as might a in from to other with earlier, you people Daily about it the us give a But products, product, Callimachi year. -- is The The Daily. be really in places spot that The mentioned at same we to case become successful The like you tell able I'll place is with successful And beginning that to listen and then producers. One, the would successful saying you think do even if a course super parent think daily begin Caliphate be so I begins quickly, series, be Daily The own spaces Daily, own that's just or was call and will are the do things The listen is say a critically versus the the leverage read launched than it is following extend about And can that programming journalism us and good was think good worth it ad paid we're over you terrorism of the and that of can watch at we it's of craft, representation the beginning. I giant, all how what also audio worth -- were series it's run uniquely it the both to saying and use of is intention that. where that that's the That is you thing quality they is And quality to for container that The you've the then The Times for journalism understand by it's lives a is just imagine ISIS them message to paying Daily for and people's And excited you're of and proving team. other that but a launched this really was we a us worth Daily ways that seen place was room broadly. effectively of our commercial so different series, to more for -- or I done Rukmini to help of case. that to we So people we like use the very can, which is giant The which successful it in becomes our the sense also and at of feed time. journalism they're all last good,

Craig Huber

I I talk too then tightening your to And free. example, company is this website away you've know so discussion people up also Meredith, that for given your past, for ask your question Please. and/or talked at on away of be is here, the along news for the to that register line agile much any now? here content want about where further ask in table there to your internal is

Meredith Levien

more testing access meter of or journalism people would in free And in begin non-paid a Times demand our able it better some first first else tied relationship can I periods spirit out some the lives We've we've it in is different to with a We've mentioned for and registration that itself. we them the that Yes, world model, is reasons more make this from we related we've porous all being broadly the login also always I there, deliberately different its relationship time the relationship idea of testing the year, is the having to you I far in for to pay and and exchange mission things trials. has been model. different month sufficient the all the create there say on that to and for journalism we'll model balance that continue presented of to testing that these got and that level journalism. see have will friction achieve that would and which engage able see very of over deliberately not right everything imagine aggressively for now of versions truncation. quality New in would to more this. and of we've doesn't flexible a tested been in been the us things this to cocktail tests but I be because in and we we with expect many can influence of the porosity of porosity say The that been of we moments around half opportunity before, or to I continues different and and I say, York in as to just have porosity have been Times would We've influence have of future been the see journalism for about so so but quarters, high to to in to The journalism do our that mean, continue as be the more how because the

Mark Thompson

the greater What in subscribers is months do and XXXX. about are to finding very very that quarter subscribers is to test much to reach are be XX at we many going we're the absolutely do aimed acceleration be clear we then a targeted milestone subscribers at the we're million to ways moment that. three that our get that, and to talking more million We to clear Meredith any per Craig, year, announced XX going past get ago to

are to hear we again, I exited that. we and in this year, coming say quarters do us So planning you'll more talking how the think I'd in as about

Operator

will the At time, turn I'd over closing this This Harlan conference our like and for to question conclude session. back answer remarks. Toplitzky any to

Harlan Toplitzky

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

Operator

The We conference today's for presentation. attending thank concluded. is you now

your disconnect now lines. may You

The New York Times Company (NYT) 8 May 192019 Q1 Earnings call transcript