NYT - Earnings call transcript Q2 2024 | The New York Times Company

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Operator

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

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

Anthony DiClemente

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

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

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

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

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

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

Meredith Kopit Levien

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

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

Let me describe how.

so. in the Games, news First, do times audiences our Together, and spaces. pathways Cooking Sports, by in to advice, products combined come Shopping multiple our which large gave products and reasons to destination passionate giant world-class distinctive many these attracted and with to numerous people

our each a hit saw them. QX, the another were multiyear subscribers with that share relationships and sites delivering clear long-term of value we're sign In our That's unique Second, to building on week subscribers high. engaged. apps and users we deeply

and we track with well the million now free on to of live having Ukraine shifts an It and also In That turn presidential It and events starting to milestone prepared contributed revenue and entices is the XX the archives through last historic ways. Times monetization our deep the is X kind last notable portfolio an multiple our coverage increased another the fourth, becoming with platform app, strong people feet. It digital to experiments which supports on stand-alone where product reach and across the prospects licensing are only products new marking journalism to list into and that users people ranged our subscribers. game can with real-time also can stay. funnel of deliver the our of to product from what the in translations further an of quarter, X subscribers. subscriber coverage of meaningful and coverage another audience. engagement audio ability have market progress wars tens during business hard we And interest saw that also of create increasingly of That bundle of and reporting relationships, the QX Games subscribers some and to our a month's quarter latter offering had enhancements subscriber valuable over includes expanded more margin QX year their AOP as AI-assisted in landscape. advertising deeply in heart that higher XXXX, of generation. I'll valuable. report. and popular time. that increasingly and innovations also distinctive makes our culture client-backed engaged best an commentary into growth technological that as expertise attracted it our that added unfolding ranking our drove much our quarter more benefit use array the accessible further read the of for that evidence was total revenue and our portfolio. bigger Gaza in use high-quality the as demonstrate audiences game with continues news, expansion headwinds new subscribers people to by by Spanish. track for of our the our ARPU wherever new to to follow advertising, an growing experience key and revenue significant The that are digital-only biggest driven Wordle generated path streams ARPU, to that pay out XXst word digital subscribers. added enhanced We growth Halfway Strands profitability levers. And was example and ongoing Times features of example further weather of as mentioned diverse of to power intensifying listenable Game and the of brought had U.S. the we it coverage, XXX,XXX video work portfolio and book mobile the next story make we we're beyond century, products direct strong each day-to-day of and included year-on-year of in differentiated net millions our pricing time sum, the translate even the new millions months, the benefiting own diverse quarter I and can subscription. In conviction we well we feature another that flow cash of are for of into week multiple to the to An quarter. even increasing around as demonstrated audience prominent more more and moment beta keep read. We're games more affiliate subscribers, driving to change. Alongside news and we from We health details in brought it's growing Third, to nature investments valuable and them of starts in multiple across increasing format the mean sustainably driving goes. through and broad compelling sweeping election they from showing of that's includes continuously and reporters coverage millions news wellness of and ongoing where recent things the our

migration journey revenue. a also in domain connect strong which new in both in our quarter, a and us coverage weeks phase We technical we athletics launched to the the a franchise the Scoop first and Athletics to name And substantial the household Copa just quarter completed the the enables to growth the web fans among on euros Times multi-format with of NFL progress the ago, America products. palpable become sports made few the We of athletic audience and of City. rest the better to called

transition All transitioning high-performing This generational products can in year-on-year launched value earlier pickup what progress impact overall people all to we'll our subscriptions it marketers. value audiences strategy that continued gives the we spotlighting our driven buy, bundle in advice and time, increases of ad as for to quarter even was ongoing add guidance, of subscribers noted more top ARPU and higher by and Revenue confidence engage beyond that value year-on-year over track higher more certain see content products, a subscribers most an deals of build out topics. for hard opportunity demand time. they see Wirecutter helps ARPU which new our in and profitability year keep delivering was is function Last fans a and more underscores in get This and exceeded on growth. Advertising we and athletic over the more. for growth destination to continue at the to the prices. news next and line despite people Wirecutter growth their month, guidance, more quarter's providing to globally. The success and of steadily reflects our I us marketers journalism ability modest them strengthens drive across actions with continued we a prices advertisers reviews we strong to to sports avoiding to the revenue with quarter value our most for AI-powered categories, pair of to advertising and some a product sub-brands licensing. tool more by the its help BrandMatch And build that reflecting relevant, campaigns.

in even free we combined as costs quarter invest journalism to our cash areas execution continue That quarter reflected and of generation. discipline, and Our AOP that another the resulted growth in products. with differentiate ongoing strong the healthy flow discipline in

products combination destination positioned and out, our news plus them that and relationships so reminding make creation. working revenue in form means continued times by to multiple will we're wrap believe in day, name a resilient market-leading you spaces, fueling of seek I'll we Together, products have complementary media make ask for every journalism multiple changing do and lifestyle daily each streams. what these big and people the levers growth with we landscape of offerings for well habits. The by direct value world-class them valuable

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

William Bardeen

Thanks, morning, good Meredith, and everyone.

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

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

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

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

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

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

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

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

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

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

Operator

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

David Karnovsky

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

Meredith Kopit Levien

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

William Bardeen

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

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

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

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

Operator

Stanley. from comes Thomas question next Our Yeh from Morgan

Thomas Yeh

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

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

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

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

William Bardeen

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

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

prices subscribers us ARPU over the to that just steadily continue going leave So I'd bigger it to big -- reflects that see products, strategy we and with improve action transition year-over-year say gives forward. that kind the confidence place continues our higher to more that engage our our growth on people ARPU value increases and service to ability strengthen our journalism we'll of pictures higher those time and and as

Meredith Kopit Levien

little with both prepared as ability our getting go, to going and about I'm all products go to which we people just is to them is better gets why strength our X add talked are valuable engage we the remarks, as more which the get beat, engagement. in of we

William Bardeen

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

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

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

focused the that areas growth which about in important to to beyond. back, driver digital most margin we stepping investment fundamental we growth to and any strategy and And think of portfolio, mind expect expansion the are see on that's and for we of resources the AOP the That's that just we're enables I this time most costs product reallocating high-quality are long-term the year-over-year to really and just in value investing the thing, that create journals core keep us of is -- talking our focus. the audience. kind year

Operator

Citi. Our next question from comes from Jason Bazinet

Jason Bazinet

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

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

William Bardeen

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

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

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

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

Operator

Our from Cannonball from Karasyov question comes next Research. Vasily

Vasily Karasyov

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

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

Meredith Kopit Levien

I would we're say, us, for with that questions. broadly, good Wirecutter, happy point On business. Both step-back Yes. super

like is and variability when the shop and how the just the people of some in broad trends that think follows marketplace. I

of about for X, been owned track holiday the around a I You reflects we've think X activity to what And been to QX. that remains reviews. company for, tend And the that. time around got now deliberate -- what, very to And product buying. really harness see investing demand gift lot years. We we've we've of business school in high-quality back strong

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

our quarter, whole remarks, amount the the we we've and data seeing referred we're all now product We've sports that new modest addition would I'll dynamics the I did So a games a and which his to remarks, we've years I operate see. and say of are are on remain say but in first-party I broadly, pleasing would which basic and I of there. On way, really see There's say now. They U.S. some other demand to continued in strength that cooking in got in to or topics. is pickup a the second Wirecutter on sort But play in advertising, a confident big think products on the executing marketer is in are And said to what bigger was, the getting we of of few about confidence first-party products building specifically, been real in kind of see we as Will news to There's think you're here. work a in portfolio, the at even in those premium our marketers, we data strength side, to BrandMatch, places extending ad a I and that. course, that that's say, prepared powered I'd for for canvases then where have. of ad set X avoidance prepared with certain portfolio. lot AI sub-brands products things. lot my across at tool X targeting will of

And it -- a a So we be will even driver. give the target more and of across products help ways have across that, audiences. to marketers uses optimism lot gives to sort coverage, AI of across growth that

Operator

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

Douglas Arthur

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

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

Meredith Kopit Levien

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

are years really I are hear you X.X We it's the at path. well nice been that that think talk this ago, us about very past about acquisition feel good where we was point as about, we are, descriptive and a on quarter of -- And and great. a

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

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

Anthony DiClemente

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

Operator

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

now may disconnect your You lines.

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