NYT - Earnings call transcript Q1 2021 | The New York Times Company

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Operator

Hello and welcome to The New York Times Company's First Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, today's event is being recorded. I would now like to turn the conference over to Harlan Toplitzky, Vice President of Investor Relations. Mr. ahead. go please Toplitzky,

Harlan Toplitzky

welcome Earnings New Conference and First Times Quarter XXXX Call. to you York The Company's Thank

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

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

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

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

Meredith Kopit Levien

and with quarter and weekly our than over our people, unmatched Thanks, million an users, the The subscriptions market scale at more and that a and than morning. XXX print Harlan, finished of journalistic across our for can million million and readers. products, subscriptions of journalism, more XX breadth XXX conviction paid we registered substantially plus digital to Times first good million audience X.X paid grounds are least English-language time. expected who foundation, pay profitably average That

added new base. strategy subscriptions Our Games quarter XX% the an subscription strong increased Cooking, more improvement subscription in financial adjusted of net and of the the compared recorded digital we XXXX. and promise than of and the our our Digital News, Audm. first XX% results to quarter of and across quarter revenue XXX,XXX of first $XX in digital We the operating success large growing demonstrate million, profit

last to our real in over first and of brisk Our was both refining fluctuations declined results and historic and considerable In XXXX by demonstrates of I in our quarter. last advertising work driven also audiences net That growth our additions subscription the news QX quarter March, advertising and additions a that the Digital advantage improvement business. of the profile our their call, lead year, our February part to last and subscription net cycle market from strategy digital In earnings competitiveness from a offering the our to noted on margin variability we saw business. of quarter. improvement in the year advertising. highs reflect the our subscription-first digital in in can latter XXXX quarter fewer

last we've aspects year's of created accelerated for unprecedented news therefore, passing of the traditionally softest each moderated was same that passed presidential quarter, with our growth. With of We our additions. the which At model. racial total expect quarter, our reckoning through and be by in tumultuous the year. performance, demand subscription underlying cycles the now best is Times and time, last improved doubt to prior no elections, net of performance, XXXX we lower additions second forecasted the second net There growth range the quarter for the annual years to continue subscription X our COVID-XX many to year pandemic XXXX journalism, expect

demand, expertise position While us the in the last In was we that newsrooms, capture the size know whatever breadth of on few drive storylines we cycle, investment source. the of range do journalism its display. more needs don't next months, meeting its big know full reach news which of our our and will to our and that continued

to the mother multimedia their it part Primal journalists with tracker, of data be in The breakout feels ethos what parenting right continued update a world's one of a our the like newsroom Scream. to our case most captured feature, comprehensive While group COVID team of now

our journalism Times world understand long-time be that our for beyond The the is advice. central covering which cultural news, complex wasn't. the documentary, primary while won't million and only our people that audiences the led Britney now getting seeking the on coverage the the to and Premier grow. helps of and reporters Super paying Football But aired to broke will week customers. League draw be Our Outstanding is feature-length metro beat and the huge shopping Framing our news no FX will it a League understanding XX draw. impact. people a need recipes, rocking less reporter Albany, And only had of for continue Spears, and needs scandals world of the come multiple model, The to puzzles it to the Hulu, majority

should in Taken of even bigger our offerings role NYT in services Games our the these largest The and about to play subscription portfolio our expanding Audm ahead. work as plans our our product, a that can specifics news America, deeply-held business journalism-backed among for advantages I'll and belief more to scale. lives The individually, millions an and demand profitable and now we value people. NYT subscription turn subscription our the drivers differential reflect in tens through and Times of become some are the core and with of enable Wirecutter Cooking more larger we underlying Times Combined believe quarter the

XXXX. metrics before readers somewhat a are now last, have now We new these XXXX. on ways, so years registration-based new substantially of audience, those the the are base and read is registered lower significant higher our than larger many in users to result registered of subscriber made users every pandemic. growth. site, point are opportunities is registered that Many This Times than and news, this a with interacting our fact The engagement ago acquired who almost in that people of day, year we all the a than a in us While continued total strength base which for model, X shift to we

correlation positive user drove first in we've the breadth of in a experiencing subscribing. For that example, our of described between in the the past strong uptick meaningful engagement storylines quarter, we saw and report the given a range the development

coverage the a role significant ensuring XXXX, live experimenting Times engagement. million strength The newsletter to a been our steady grown readership. of audience regular significantly Our to of large XX since plays innovations. coverage third The has always Times weekly our Times which a X as had than trial, who The coverage, million with day users XX% their including number More with increase at with to top with than much read are funnel, began repeat a aggressively we've as we newsletter our live Chauvin's of that users came flagship well readers Times new of to on XX this of our Derek now late our experience every newsletter subscribers thanks a driving with that our registered start not readers, since of people newsletter, for and and engage basis, paying number a subscribers. has of rollout week, readers yet expected newsletter million Morning. register. asking More

Cooking runway as own a in users subscribe to right, counting, are nearly Early funnel, few with lot of sell time. represent our encourage to of ahead. and and At products million both lives. new users' and opportunity value more newsletters tests as subscription Times' how begun how to The registered bundle in plan our last is to X.X enhance in subscriptions substantial Games to multi-product introduce in and ability merchandise So, the In are ways. we we daily promising their overhaul we source particularly succeeding and encouraging subscription we've What's a a months, over to their promising, price a with value. experiment

to This and last services of comparing in expect that and, the period quarter In versus the advertising retention, advertising. increase encouragingly, we quarter XXXX. the a to market XXXX now in of the recorded the XX% digital and marketing year stronger. first the actual programmatic apps, over conversion, X% also removal turn advertising the advertising the is increase over quarter, first now from We even bundle we business monetization. I'll open improvement revenues is $XX revenue, million of from exited, our so same in a digital benefit we've last against long-term are

listeners last as in eliminated of to effective Our targeting portfolio. first have is And, driven fully direct-sold advertising. our trackers. period Demand driving advertising the in strong, registered the products the privacy digital quarter, in we expansion last audio from first-party readers also year, users by in quarter XX% which continue of year. our the products, same rapid growth addition marketers the of sales This grew affording third-party of are revenue our these with than compared for our on third-party American Life strong, and first for quarter, in the has XX% XX% proving total propelled Serial our as data data advertising to while be versus Audio less reliance

and with the that is of also year, Our and Kosten, latter structural. a the productions plus still our expect second business Based our of the and in advertising with Show Ezra the The advertisers. relatively Swisher, categories listeners we was performing are both some Klein half while in Daily, The Argument of to The the weak beyond Kara well Print and Sway quarter, including with material advertising now we do as losses this, on fact quarter expect business digital in quarter. ad some recover that regarded second the should in we than believe the pandemic print, larger all low be in acceleration comparables Jane

on focus talent, strategy across next I people being things we that but to attracts, our scaling top retains our this over To described for. our journalism in not culture. worth turn our of about develops our continued culture a and paying and in disciplines. Times' mention decade want just Before our I need newsroom of all The that, I've business as Roland, to do

create equitable we world's it. here thriving it's serve and news also mission launched ambitions. audience and multi-year of an the require In the that to last Success report, from Our that cases, and more reflects that global business will and are we our a steady both admired also supports helped culture culture, a diverse, evolve build influential progress. New enabled has we nurture the the we and inclusive and Times York innovative and plan quarter best digital making business. aspects In most

team-oriented, We preserving reflects of offer begun advance also finally, our increasing importance workplace With future while I'm turn creative the of I'll to this continued Roland. to that and the which growth. of years it to kind will all excellence tech And work. to define enables togetherness we've flexibility that our our strategy, over confident our underlying for of to engineering the more our to growth our of propel strategy much that, physical come.

Roland Caputo

morning, and everyone. million, higher $XX Adjusted product and our than $XXX,XXX $XXX,XXX reported $XX than higher a new in per added XXXX Thank adjusted $X.XX year. products, was in prior to subscriptions $XXX,XXX digital same our of diluted earnings the digital-only the net core to Meredith, approximately net quarter, news of for million. total We net you, by subscriptions $X.XX the We new profit good share new subscriptions. operating digital period standalone

of first the XXX,XXX dollar-per-week ongoing the XX% As subscriptions the subscriptions, began Total XX% increased XX% XX% quarter the more first, subscription digital and, at of new year-over-year of total and large second, quarter, the the XXXX we our growing a result price in now XXXX. than as to revenue news the XX% higher to Cooking XXXX, of finally, who late share positive in quarter revenue first subscription quarter the of X in acceleration added XXX,XXX of in the had fourth digital-only increase, number revenues have million. nearly from in past than the with graduated remained of have first prices; end retention international subscriptions. quarter. digital subscription subscription The rate quarter of XX% of promotional the more $XXX we in was end of and which to growth, continued Games quarter, from the factors: the impact nearly The year; subscriptions of of slightly in strength the by subscriptions

year. approximately from results. ARPU you'll the begin an full-price point of against the introductory As tenured year, for Digital or of in compared improvement declined to from primarily the approximately in This as well second to a XXXX full price news gave, prior the increased the subscriptions. was we approximately quarter news with related to graduating to we price percentage a note improvement the in growth and X result slow which prior quarter on subscriptions as both represents rate comp increases the subscription X% declined either versus ARPU beginning we expect benefit that significant to their continued increased prior our versus X prior percentage and quarter the as quarter, intermediate X% step-up solely the domestic compared to trends. quarter guidance subscriptions the strong price more points

We throughout digital increase from subscriptions throughout digital power expect provides to discounted and the news impact promotions to the the price tailwind continue graduating XXXX year. demonstrating pricing as a tenured from subscriptions ARPU on

the year, down and single-copy in On largely due circulation declined while print nearly year-over-year domestic the home price revenues Revenue compared bulk declined circulation daily delivery quarter from a international Total X% increases offset home print as in sales. X.X% to declines. Sunday subscription subscription decline were in side, quarter grew a prior with more subscriptions than delivery XX% X%. the

advertising be advertisers digital we prior revenues worth the working pandemic-related grew return primarily traditional reductions of growth. declined the including impacted now the of we've market last marketing reduced revenues continued the seen and and the only quarter in the and that business of higher in exited, reminder, It's Digital the result is the in this advertising also was compared that quarter by year weak a noting XX% as affect despite approximately the sales. of advertising negatively pandemic, last removal severely Total outset the comparing in year, pandemic. As a approximately remote to impacted in closures, are with during against by services podcasts, the at display direct-sold apps. our digital partially programmatic that from first advertising, levels of travel quarter, as open X.X% XXXX revenues business to March of advertising's increased as by quarter compared advertising the spending print to newsstand

million Excluding advertising in $X would these digital nearly earned prior in growth versus last the revenues been from our the XX%. we year year areas rate have period,

entertainment, and by due offset printing the building hardest. fewer first to and to and than plan also rental costs continue and advertising It's largely into we referral was our lower partially by development declined costs administrative media better-than-expected production Our year growth costs. had television and gave drive of to quarter recorded increase than investments XX% approximately These in X.X%. with This expenses as higher of Cost events, and XX% revenues due to and print Wirecutter and higher of foreseeable quarter prior we as is revenue lower live advertisers first from headcount. approximately over partially approximately travel as Adjusted and products incentive in commercial revenue. the the with hit revenue. to worth of affiliate employed episodes largely and and XX% February. higher declines compensation costs result This ad in an declined future as luxury revenue operating by in as primarily expect in increased technology digital a our by standalone content in categories the were increased were headcount we in the driven quarter incentive sales employees; the accrual newsroom, million, adding digital connection the Meanwhile, higher result General higher media the X% content to Cooking $XX by in and advertising X%, reiterating we a as print with area compensation in development compared Games, versus targeted Other subscriber journalism of to of audio increased guidance approximately early episodes, and better revenues this and advertising television revenue fewer growth well continue growth. QX leaning to and accrual number was news compensation by as XXXX. in costs result well largely core product a expenses, Product distribution decreased XX% increased zero a from costs. audio. accrual incentive delivery engineers content; in servicing lower costs related number offset of audio XXXX; and Sales costs. lower costs in lower entertainment travel marketing that a

for stock-based than settled on the appreciation was tax was from Our to first rate that benefit rate, price awards the a XX.X%, quarter the which quarter. largely in effective lower stock tax due statutory

be our dollar of rate. we've rate significant previously, to variability effective said with on we we XX% record approximately As expect tax income around the every marginal quarterly

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

are are Both revenues and during resulted of and growth as of into continue in expected XX% of up of a XX%. operating to adjusted XXXX, costs XXXX expected are spending in actions of subscription XXXX. and second investing subscription to to increase of for impacted operating quarter revenues be Let quarter advertising to high-teens digital the the approximately compared increase the second revenues compared outlook increase expected compare quarter to costs increase to second open last happy with low was quarter digital-only approximately second the year by And that the the against we'd we revenues expected low-single-digits. to with the quarter me XX% Overall revenue subscription with second approximately the the mid- we drivers pandemic. conclude the with XX% of that early increase for our to the XX% Total XX% with are as that, the advertising digital compared to against taken to of expected increase from Other questions. mainly weeks quarter severely it approximately XXXX are comp expected pandemic. with

Operator

Thank you.

Janedis John is will first session. with comes And [Operator Wolfe question-and-answer begin the Instructions] morning's from Research. now question We this

John Janedis

talk XX how opportunity? talked this know cycle? around confidence given Hi. tone picture, you about moderated your over, that the the Does new seem longer-term. is or growth more million level still for I Good about tight big the year, your Meredith, you doable? subs subscribers slightly say, can morning. to And longer-term

Meredith Kopit Levien

both why short Good we question can't is absolutely questions. in opportunity. no in reason we change that's have degree My your no We the the remained long-term that X, asking base I of good morning, first confidence your role. opportunity. a our a plays John, which X, X On cycle that, today. have level answer to long-term subscriber you're me second about the news times question, to incredibly excited think We what see

again. I heard Just question sure ask second to right. the want it I've make

John Janedis

comments XQ, knowing based about late an And seasonal. lot impact Yeah, on talk a have been it's the XQ I and subs. mean, there's around a just of slowing obviously, to news-cycle

so, discussion I longer-term And slows, say, guess, the have more narrative there be, one here if should is acquisition? would news-cycle that we a of the around, subscriber

Meredith Kopit Levien

Yeah.

say about that. So, couple let of me things a

stories year-over-year, The first subscription had the versus has the at game of a that driving One, which one really are and years, where the better last from to role a happening with standpoint in played X are building and many underlying is, we underlying model, standpoint would news-cycle quarter-over-quarter, an prepared really plays engine, today various really at the are remarks, as the better feel significant. ways. of say we getting are the is engagement things habit XXXX. we in I The the the said mechanics, getting and habit. other And my role that X pleased course, but accelerant last stories been an year, I

also confident always in tide And one I'll set say, less feel world stories expect, of another X that the set. very getting think I as I in from complex. on don't news. say out any it's is even that we So, more interesting. don't still think back interest fully there the it goes comes things. I'll any is getting we less wide

we high won't news. So worried not there that demand be are for

talked our and in change, storylines about that investments we prepared my the newsroom. we've enormous of And the as are in meet prepared some Even remarks I investment. made to

and bit Times The that's we've meet also We really happening, I'd I'll investment story to before mentioned new wherever real-time. did didn't big news, prepared people way. into I different the quite come real-time of demand, needs a are before, a goes. meeting something say, in to in a that's news ways. live I'd coverage, It's unfolding first need, say where say, XXXX that in

cable we that on much to but today. need getting or might are room have still gone do and much You better, of meeting Twitter, turned lots better, to news getting

the the your with We morning in newsletters much beyond newsletter habit showing a up need daily that. for are getting meeting better at inbox and of

And So, of need I'm sell real engine going the that. add we're we whole really that news. the model bundle. for we to creator confident do how will And us a to keep to going news be meeting and the that that continue innovate central and the understanding are of demand helps the

John Janedis

to or it, any forward? media Got you And maybe, drive on give about talk color can growth? you subscriber to Do can more up thanks. start expenses And churn? reaccelerate going they pick significantly

Meredith Kopit Levien

have add question, subs I'll that. to our to vast point little just Sure. the I means, one, actually color bit the second first a remind made answer majority goes the may of come the and in Roland that to before. organic that you through media, I'll On

product is news self-propelling of demand. huge kind sub a Our engine of

overall that but in with points. want still Roland, broadly of good. very came up engine I'd and So, But of know I monthly cohort, you last if return our well news also world-class happy what to lower say content-based not broadly year, newest media the retaining cohort, we with because paid less on we churn cycle are troubling last the churn. to that a versus I'd isn't churn. we're But, we in those media, the a retention we're a year, subs, media. getting slightly are and organic on digital less When timing. new means. ourselves last in overarching happy periods the past, rate newest as buying say add than are at say, either other I'd of huge is churn in year more much, the And on less - In surge end don't compare subs And are through churn, or to seeing we not our subs those much very level to we think reliant companies, way. our

Roland Caputo

think all No, you points, that one. the to hit add I really major nothing on actually

John Janedis

a lot. Thanks

Meredith Kopit Levien

Thank you.

Operator

Thank comes you. J.P. from from Morgan. Alexia question next And Quadrani the

Alexia Quadrani

much. very you Thank

Just a questions. of couple

in elaborate you new that a for little bit digital if it's secondly, on the First, of of different subscribers the off of if you the as any U.S., year like than QX, could color? throughout have in curious, of Meredith, on maybe the then, model has I the is? sort or outlook the think the mentioned if remainder and what curious - you and maybe can I'm you look view evolved past, see know changed the digital has being it's demos mix your international, outlook sort changed year. all And very in advertising world that, us has has how the how healthy changed of advertising digital I'm bit. advertising at update a outlook for long-term on I you very, for the there

Meredith Kopit Levien

people we're bit younger where getting that and bit both and audience On geographically, a general, Sure. to domestically I I'm demos, internationally. a high varied and of little periods, in more talk in, a those. answer every - about general, this for in bringing holds to think happy up the news version Alexia. quarter in very little lot both of of Thanks, a give be I tends

varied younger under that it nothing that happened in also I of that to changed penetrated. So, sort of of parts Times don't from that We there say, more of continuing trajectory. quarter we the hugely country is do the But more said world, In news not we've And a in quarters, tracking steadily been more and tends bring I'd beginning. demographically news think past, where of very subscribers. the toward coming XX, sort than in more questions it's from in to less subscribers and first we've more our and high demand, the the where time The ton ask is new kind - of way. over go of subscribers broadly, subscribers places. other I've And of the is there been and the

So I'll grow they're varied But say advertising, our a data and we things. isn't there's generally as few base. here. - more generally On great the

confirm services model, Our including is is thesis, still through margin demand the business. really marketing very we data in ad bunch But work. first-party creative a stronger marketing endeavor. that lower-margin gosh, we ago, team work and higher-margin a of last that our I'll business. good the Demand exited for for stronger now our products, in X, getting new business. difficult business. be And our X a highest we profile specific And faster-than-expected products, on. creative did fundamentally which registration-based of really year did can do we're We've making progress - profitable that. that previously fairly that what cumbersome the fact, we've learned years is We market and really about work ad a services And our additive very, be had ad less in

like And now at that so, dependent able to in we're we way deal And work that is therefore, nearly the a better. always media. margin to do level,

time. not business, a profile X better we real the businesses. use the gotten we we've have in privacy main I digital it's the the main mean than users, it ad endeavor. a in we more way pulled So those direct-to-consumer like high-octane not logged-in that's of here can idea still registered we some year we those all subscription think data say, business think better driver. it businesses saying, is secondary that I on ways, The in question, which no of now idea, X business, entirely like a remains off business. same the gas, And the is the digital overall, do ad main scaling long-winded our would growth thing have running we like lot. whose and does is last And I still the

Alexia Quadrani

the more, if huge And in circling squeeze given up revisit it's or that given curious number subscribers at I if churn, necessarily? last just year. guess, of in of in do hikes just off I'm the came that rates, promotional back earlier comments changes one about you algorithm tweak to on the all understandable, tweaking price the your not it just churn how terms coming I could slightly? just of just or

Meredith Kopit Levien

exactly, I'll years. been I'll the say is. accomplishments Yeah, We're single new in in churn but model retention X is less one is reduced a very, comfortable with slightly and the Roland here. very see is slightly very And add dramatically a slightly. I'll only year. - with right? comfortable and that good just let that it over again people so we're where we surge increased more broadly the it's cohort last story. very bringing X newest things X, qualifying, of churn. the sticky, They of should and biggest still less And And giant churn where see say everything are You're We color in

better. getting a are algorithms Our lot the That's point.

get You may train it smarter. the models and

also remarks, price is so, who our we're if anymore like to and very, And to seeing. pricing well. know prepared doesn't strategy goes in determine I that. Roland our And very who full add to to don't what algorithms this want his touched color we on working to and Roland, use ability you

Roland Caputo

Alexia. Hi, Sure.

we're modeling. going still the with are and comfortable pricing really strategy the with about We way it our

comfortable number somewhere of bit more folks. folks matter we of been try hasn't sits using between testing with the haven't demand or The price, model a to even take to actually which decreased intermediate problems price, there. decreased sending increased is it a of the step-up no model, to intermediate of curve. we've advantage that a As or so still full full-price fact, second the number increased the are But the and we little price

Alexia Quadrani

Thank much. very you

Meredith Kopit Levien

Thanks, Alexia.

Operator

Kannan question next Venkateshwar with from the And you. Barclays. Thank comes

Kannan Venkateshwar

price Thank made see in already a over price difference the any year, for is the a you. increase year, of the a Roland, you to the up last the or till years. XXXX when of the price, be that on kind price, intermediate over the that time previous to is is already subscription will think either there I kind a there of the came price in follow during course has, this is comment And their on second increase guess, bridge I step course about some raised, increases has phase, X the which broadly, promotional just you you in full-price? would which then, people cohort the just seen which up guess, or people of intermediate it get price

So, sorry, churn and I'll of could talk about how of And with and you side particular follow retaining? - cohort, that the lastly, on that's after advertising that. the advertising behaving up

Roland Caputo

Okay.

someone across is And there differentiated not What to not pricing really questions. price good this not experience on trying push apt we're accept for to much the So, else to a trying as experience would, is actually, do increase price going who subs range. someone someone there in subscription But someone so the as the that we're going difference versus price in the to way. full all receives. divide price a is no midpoint way population that is to

second Your that second increase. about price second of question that sort was moment,

elasticity another of So of with test our with that we're It person's that experience to very demand. that. date is comfortable is

with because lean into there, pushing level So of price, of the comfortable monetization point. a we're keep interested we to drop-off more course, we see than but and bit do trying will we're seeing a the perfectly save take brand in than action bit scaling little we're the person to still at there. And, with that this them the

Kannan Venkateshwar

it. Got

Meredith Kopit Levien

thing add Hey, that take at retaining keeps but steadily we sort getting is that Kannan, the say, only through only proposition would a get better. of better conversion we get of steadily also, to the that Roland, I think product this, We we I'd and well as I - and thing better. engagement is

We newsroom. in are investing

investing over time experience digital a has We positive. product the that in are

Kannan Venkateshwar

correlation Is see way more the volatility. linear subscriber right on going structural. comments lot forward, then should it that between be I a you've be your we should of made, some it. sounds the therefore, bit front, comments improvements these could Meredith, to mean, advertising and advertising Got that like and and growth that of And advertising less forward? the are And going a on more there read

Meredith Kopit Levien

is couple think I caveats. with that a strategically of correct

today we registered XXX at So, have large say, this we having also million I'd a - very said users. time,

these the I user the the whom registered that audience, business very say, team, business not same is all That's extremely direct fact are engagement, would on just It's I are it's subs large now positive. to addressable people So, when have and that. update base That important. say with, on the we mean the subscriber fully relationship is we us yeah. and kayak the what ad base, I

So, I particular business that now still for probably ad our these we is also got a run versus any unmatched. and competitive with bodes world Amazon you're that product scale a ad company, to we the a and yes, is highly yes. question giant other Facebook, in asking, well platforms and in common the grown Having will publishers a the To are business, say, you've a you've Google, I traditional think and price that competitive. do advertising. have up where offering and at highly and media But increasingly, that, got

win very we're share. our say, ability I'd So, about to confident

We business won; would say that I other finicky right proposition. a there and that are we got is dynamics. got that's dominate be of companies But just brisk a to a in kind market, very thing, market now confident well, the is if the you've lot very of ad going the

we about market. It's excitement a so, more than with market, size-driven demand-driven a it our mind. tamper in that And

market. anybody have probably We it's than demand-driven supply, awesome else is, better but a

Kannan Venkateshwar

it. Got much, guys. so you Thank

Operator

comes Thank Huber Partners. question you. Huber Craig the next with Research And from

Craig Huber

I amount how think we They mean, dollar you To for Great. should and the marketing number your much marketing your by new down of how Thank were could, going million. spend, costs. you. about to of adds for What Few year-over-year correlation forward ask, I there do questions, want of the for that first expect $XX your start, if up is to XX% I you digital there? if ended costs in that hurting could. a decrease quarter? subscriptions design think in I much marketing

Meredith Kopit Levien

we the news because And cycle a actually have is much, us you short question, which spending by said, the that's organic. think And biggest see is John's give when And a that answered long marketing efficient. the slows little becomes engine short less a less I answer will more when design. The I bit, don't you give efficient. that's what much it's when money I is - answer. I'll answer. Roland engine

up, an give you As see spending us can pick answer. more you'll Roland, colorful things even money. more

Roland Caputo

that's generally the last we cut back early and see look the think don't spend adds the mean, you you go really if the through back our I half. I back in comps, did year net at right. pull dramatically marketing in hurt we No, all. if go at But,

reintroducing us as the second gauge how it's on quarter. marketing get going in think spend we think, we you'll see I we So, to probably some into based it, again, But, well market. perform

Craig Huber

think of with digital potential us price you're guys, the the I our for bear sense sense just on you question, front a many of remainder you phasing of How the give want purposes. course over people in that increases increase? next My can get price to year, how higher for that a just the expecting a can for about year? modeling

Roland Caputo

Yeah.

For talking increase. modeling assuming the range, that about XXX,XXX per seeing in quarter price I'm purposes, you're you folks tenured about - think would be

Craig Huber

year. number. Yes. seems for Yes. a not roughly But, big obviously, the It it's very XXX,XXX

Roland Caputo

for Yeah, XXX,XXX the year. and change

Craig Huber

trying to That obviously scare here, that - anybody means not to that's you're you're volume away. you're trying telling me

So that model…

Roland Caputo

we see XXX,XXX we when the Well, our that, little what of of a quarter year. for at price determine look trigger outlook tenured bit we current the is I think set And increase. it's a pull whole a the we'll attributes that is rest on the mean, over

Meredith Kopit Levien

me just that for let add, subs. is tenured Roland,

Roland Caputo

Yes.

Meredith Kopit Levien

enormous up an described. number price, had just stepping which have people Roland also in of We

Roland Caputo

The that's X.X right. you full an price. last the to big X.X terms stepping imagine, folks in large. of very their people off number of estimating will had year, see up is promotional from year million going That's year subscribers, or can be of new increase the we We're for million

Craig Huber

you've also the on this obviously costs up. for thought would said, cost be upcoming But front, quarter you

said, I told we digits, X.X%. up delta to first when you of be you spend to think would about thought there, I much not than them? you mid-single want In the originally to mid- up the the as said did bottom quarter, on Why high-teens. get please? this. it it's What's you it

Roland Caputo

ramp. hiring a really came and down the it bit of So, media, media to spend

Craig Huber

Meredith. Okay. I last guess, question, my

daily you mentioned your of If now have website, now or visitors on monthly? about the XXX on What's you main users now What average is app, right guys or registered are million. main that data? to the number the

Meredith Kopit Levien

we point we've that. disclosed we've not say every at question, had any good I'll York answer more a have our we use That's that people New But history. don't one. is, who than what now in Times But day

Craig Huber

Okay. Thank you.

Meredith Kopit Levien

Higher, answer. the higher is

Operator

Morgan Okay. And from with Thank Stanley. question the you. Thomas comes Yeh next

Thomas Yeh

ago article with on making? any of on Hi, cadence should the your some XQ you're for for back of the bit encouraging the any those question. of we around good on of we accelerate content, And profit the in operating implemented about expect some And following that XXX that are building taking for talk modest to half? undertaking mechanisms the can those I beyond XQ some to funnel? user the and guidance convert you're through prior growth, a you. registered that you're my think guidance strategies update base, up investments some then, investments Thanks about users morning. Thank more mean, strength were sign-ups million-plus Yeah, users? the you years of engaging and limit financials? the given How should in what

Meredith Kopit Levien

Sure.

question just a much know of I'm got in the you is good Give me a answer question. isn't said this users of we what, me week. first your me. you changed if a bring to the in wouldn't phone, nothing the a On the and second asking my guys just cool, last travel, said new business say, and an a in call's I'll team, building I and first headsets time. of we in you every million in now. tell direction larger travel the just sure, making pick remarks. I and things guidance that users that of direction said about. can prepared in so registered question, has still hold places take our couple what zone terms On of registered my of underlying now. can't as and I'm in you as assumptions We regard profitable holding to take one prepared first, second do phone number off few hear more XXX a - I I on. up a propel remarks, That's going over what model the strategy going I business and me which as should Let your you're my to and say other my am from question, note are

I'd less the an registrations, of is scale that. change there activity last still opportunity that's now cycle to really enormous driving for thing new a and year's focus; presented happening audience that's on us to say, So is more going

mentioned Morning on reading XX a - I'm use basis. those We users my We've Times, focused not opening, people in return. million sorry, The Daily, Daily prepared of in every X very million sort a - people who getting ton e-mail. opportunity. registered very e-mail got the on now huge And week. I on number zones to are The of incredibly of using remarks The a regular - of opportunity

funnel And more from you're get us intentional subscription. so, to have just driver to And a opportunity see to it more in be registration and going more, focused that. intentional is on there in much really big e-mail the a

app. to direct Another place a have begin and see with very, much use app download to users where engagement more we our in And able get you'll the registration, people we're to registered activity app. we is, the once high very

people It's more And so and remarks, a more of think mentioned drive. know in correlates probably see activity different staying. the paying more of some calls I So, and topics, breadth that experiencing you'll every we for with I report, in there. then, time, I that something our storylines behavior the said these prepared one

that, to you are so, stimulate and got they now we've that users we're us. And imagine to working registered can that addressable

regis, users driving anywhere we're suggest to want more generally, so, don't I we're you although, shifting And see to the higher return. I'd just not And top, at users, there. the a maybe the obviously say, registered this to convert is, why rate will near bit getting a than that's so registered users implied, significantly focus but there is and anonymous last from

Thomas Yeh

big events Australia Yeah, one news last might a you that can evolution kind of makes you on Meredith, opine sense. in, platforms And you. maybe, of if have regulatory broader tech on in read-throughs around there? Thank any and squeeze can I on opportunity the

Meredith Kopit Levien

said state of - opine, to really registered the try I'll on a I said we've keep training things. prior in we've remarks, should our Roland not or And user that give version base I the algorithms. more the the And, opportunity I the gives us you this I calls, before, X is registration I but thing touched got a things X although, Sure. think, other to last of question. prepared this dynamic say - in of will on now. big meter

that. at So, when getting we got are we've do ask to able we to machine customize learning we that's subscribe how user and actually better registered a

before So, I that should well. as have said

with real On Facebook has in with commercial the watch regulatory being I the continue shift for for seeking there. they're make a the last rule in years arrangements certainly obviously broadly with and have of of those to news of I'd now the tab say say, and don't form agreements environment. everything there platforms, direction we that's happening willing legislative interest would X platform their now licensing publishers. and the been to more We we couple in of arrangements out being

So, we're watching that with interest.

And best lot also best work it, that, platforms the a believe lot their of work value the get from experience from we news in of through a it, get original and publishers, the that where the that direct our destination, we business they strategy do subscriptions. clear we we and of our journalism we And users to scaling digital with to really think that want have need a on direct-to-consumer people relationships systems. courses our context. of of get our We that, in value are experience

And so, right. has we think to be the compensation

and whether to to but with platform. And work think I the say, those don't more about there, nothing we report. come So when rule I out, I'd have consider things all to we how

Thomas Yeh

helpful. so Great. you Thank much. Very

Meredith Kopit Levien

welcome. You're

Operator

Research question Thank Arthur Partners. from you. Huber comes next with And Doug the

Douglas Arthur

questions. X thanks. Yeah,

On I that? newsroom a now there? more and mean, the investment the comment sustained - are Meredith, you resources adding have you engine. the a comment X,XXX? is Can in in sizable on the you press journalistic release over about

Meredith Kopit Levien

the this of good and would past. over morning. have doesn't the say few - I've and I'd making people Wirecutters' product we well include a we people that Sure times said recipes, and many in reviews. now have I X,XXX the puzzles, newsroom producing the number is winning

particularly as content, assume So, newsroom? call You itself. said depending investing invest we in the the we've what about, far standalone we are in that continuing and newsroom even area the the that before in think to as products - that we on can do

core news the So, our work report. of

our time starting thoughtfully, to and investment, continued a audio, of area say, meeting our way, news and We we in journalism. coverage, standpoint. a we to engine the I then in investment, although as much that well product to that's advertising adding an ensuring engineering an tends digital made We've as live biggest investment listener it stories named cover there, continue to from really budding standpoint also journalists. thoughtfully, invest, more and to more that I'd described investment of go have also I'd a and from for some real-time invest leading needs. podcasts do will about been I say, are that's can coverage, about is of big and the

I'd of with pace. expertise breadth keep asking our no, regard I of scale our To does subscriber adding that investment scaling we're same really We the scaling? but say, terms newsroom. it, level that at the not the about, the like expectations to So, where would base. you're and not the into extent to we that's of how subs certainly are in Newsroom going me the are in at we same

Douglas Arthur

just of of... great. for revenues advertising that timing in comp What's a recollection X couple digital of is sort of And the down in-house on the last Okay, advertising operations year-over-year and the follow-up. the year. impact My in you from quick shut impact XXXX

Meredith Kopit Levien

the business, the took up and in more if against of we've digital said would marketing quarter. we from we programmatic think in a XX% closure of the the somewhere precise my that give remarks not of what answer Roland advertising the Yeah. like fact I here. been might also comping slightly last comp, well out services was the But open neighborhood our I our prepared in apps as comp have first of big been is market that the

Douglas Arthur

Okay. Great. Thank you.

Meredith Kopit Levien

You're welcome.

Operator

you. Research. Thank comes from Vasily from next question Cannonball Karasyov And the

Meredith Kopit Levien

Hi, Vasily.

Vasily Karasyov

you. Thank outlook question morning. Good I additions this the have year. about subscriber for a

what adjust changed XXXX, have tell model model what between So XXXX from and to and with can was your wrong you you and of your me, or subs, XXXX years February where about number did were you please, when adding and now? XXXX talking

Meredith Kopit Levien

happy Yes, about. talk Yes. to

Vasily Karasyov

and that will fluid - that or that two, like factor in is? change And how is? what possible that then, a it is quarter factor So

Meredith Kopit Levien

gone could let the that compounding say of and January. We've of change So, with combined prevalence of second which first, strong of with the part the that faster say, And this the we really the comparison as answer quarter big could I'll drivers said from underlying possible model the is And say, all I considerable do earlier don't of audience funnel for we seen activities once. on came before, strong quarter And news thing, again. a strong, of sort quarter, stability have one a the regard of it of got There to And quarantine, I in all at following particular And reason to continue period in roadmaps few the just, people than me the plenty it we've the we always be as storyline it on is I the or room and say, periods, sort registration the variability little a it in but to year this quarter of I'll slower of second I'll quarter with bit changes. tide better of traditionally just up mean, and in the probably things vaccines happened combined more is, model. sort we question it optimize tends out said our engagement. that we've course the comes ahead say, effects obviously, into past think once. suggested of very storylines opening to to sort But, those we is the said, an be optimize role back. But saw to plays and were it's the because whole there the and that and where now. then, because news I'd an expecting, underlying little of said news-cycle, the I the combined second has answer in XXXX. was weather, cycle the model. because I'd what hard at And think, I first could in question,

our to hard the it's I in time think this things And so, on X a piece those it's regard just as don't not But underlying hard work of the mechanics right - now. moment it, to apart.

Vasily Karasyov

you question. with the a about follow-up, talked the you. level, follow don't of And - want registrations, disclose you it Thank I you needed like million? in this think up, XXX level not before, of Why you've did number quick precision. a feel, quick to this

large data that you base. very I you think, a had saying were

Meredith Kopit Levien

Yeah.

Vasily Karasyov

So an give idea? us can you

Meredith Kopit Levien

really sharing. has number, big to were great get those that's registration to done, number that ultimately Listen, to for get sizable clear, return Yeah, them itself whom we XXX don't registrations. a new earlier, we population just we're more and can XXX to a around to And habit, waiting a us And getting and the people we're we at pay question. our a improved I ability draw But honestly, of that stimulate just We fact said users really model it form stay. in that be the we enough believe million. and still think think the worthy way. million the be that and - as intervene gives at

important because which we optimization. And want other a on the it's of lots point So, it's working. it's part we're disclosed of the make to we model, really based that it, really building

now factor underlying grow and it's confidence it's do model really us about; we things. that very excited really point. and how here. we to the ask more in to to about smarter two, to and So, use we're all one, the it And it, from us pay. important getting our download those because than people model other mentioned helps I it algorithms we important at today the newsletters get people exposed gives app. I registration mentioned our when mentioned a the about a is And how news having size lot think I of any

Vasily Karasyov

you much. Thank very

Meredith Kopit Levien

welcome. You're

Operator

And you. this closing Thank remarks. question-and-answer conference would like to turn concludes our Toplitzky back session. any I to Harlan for the over

Harlan Toplitzky

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

Operator

concluded. Thank The for you has Thank today's you. conference now attending presentation.

your You may disconnect now lines.

The New York Times Company (NYT) 6 May 212021 Q1 Earnings call transcript