NYT - Earnings call transcript Q4 2024 | The New York Times Company

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Operator

Good morning, and welcome to The New York Times Company's Fourth Quarter and Full Year 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 to The New York Times Company's Fourth Quarter and Full Year 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 release, investors.nytco.com. our addition press results have earnings our to In we website at posted a also to on slide relating presentation

please posted investor to this copy prepared of And that we our a be the conclude. morning's will finally, remarks note call after website shortly from

the going Meredith. call With to to that, turn I'm over

Meredith Kopit Levien

strong subscriber strong milestone contributed licensing. and in further of which revenue, high digital total quarter the we X.X good and towards news essential Anthony, on our And portfolio, Thanks, curious over made subscription the further understand engage of largest subscribers, world. In for and added in the to growth, which us person our becoming the putting engagement with another morning, The we path XXXX, progress subscribers. advertising, to consistently the and every next digital delivered The fourth Times engine in to million we seeking million capped year across everyone. XX for Digital subscription increases increased Wirecutter XX%.

that margin disciplined adjusted results designed. These increased a expansion and working with approach to free is strategy paired flow. profit, higher growth, cash our as investing, operating revenue drove Healthy demonstrate

our information in Our market-leading fueled products high a the dynamic enhanced even engagement more lifestyle across premium more That ecosystem. portfolio, people proved which stream our news durability multi-revenue model in evident to was XXXX. in and valuable and

with revenue real another flow. XXXX confidence begin subscribers, we as we can gives of profitability us robust cash and that well momentum, So in which year as growth deliver healthy free

turn accelerated in I'll XXX,XXX We growth driven our subscribers net Digital to by revenue in quarter. fourth the subscribers in now XX%, added the and subscriber ARPU. increases new to both quarter. digital results

strategy Our part engine and bundle is was a continued well be majority the a to product subscriber subscriber its major our of base. of additions becoming portfolio, lifestyle to way propelled action. is news our which of also key in by of each growth and Bundled our on a element

portfolio which ad have advertising contributed our part we This and in The game where strategically digital of to revenue X.X%. Athletic QX, supply. was expanded also true Each was particularly up of

ad We Match. our such our news of portfolio results the also avoid Brand to from some the effectiveness targeting of diversified continue and demonstrate to benefited AI-powered to we products our our and topics. as and them as continued hard capabilities, even advertisers ad of our delivered products marketers, sophistication growing value enhancements These the

period sales meaningfully. advertising its engagement. Week areas, expansion deeper Revenue new format Wirecutter beyond and quarter, had great best driven ever, and including increased another Cyber by subscriptions coverage

Finally, areas product growth, for AOP even as grew and we our world-class invest journalism continued and margins in our namely experiences. to expanded strategic premium

growth reflections and some further close, on Before for priorities here. we from I I'll share finished year just our the

spent for in delivering per and its accomplished challenged of The and audience in in XXXX, in we'll The standout terms value first was Despite year, visitor. grew This build we year changing Times to XXXX destinations a our users. Times again news which ranked among once ecosystem, a on digital what time

relaunched award-winning every from We of new app AI our product Middle core East we our the the portfolio. app the And and a led coverage to the news biggest evolved expanded engagement. world-class We version and surface Ukraine. in discovery area games on for stories news much wars released to significantly to election in with Our our success.

made recipes to easier enriched love. short-form with the we you We continue And Athletic follow sports expand experience on to national the The and cooking teams and more it coverage also easy-to-make video.

for result, and a to play every and were to products more shop ever love, out than teams As essential our dinner our figure the before. they came The the millions of smarter. Times to world, follow more Tens of what games, journalism week relevant people make and understand

build us. seek for and to to XXXX scale so value deliver out habits even even is goal and us people with at greater Our that more daily directly be distinctive

To that we'll here's where focus. end,

important to for. continue the deep to we'll impact the with climate, expert rapid First, evolution team reporting journalists administration changing the a new ambition the known stories, comprehensively to from world-class most the cover and is of from and a of The the Times independence economy,

half give people. ways journalism our via adding in more to of visitors with The over to Second, voice. was X keep In accessible video, Last and will more and to X people and go make multi-format video we'll and homepages more in AI-powered innovating to discover news our audio our and further Times. year, reporting automated report in listenable immersed XXXX, get watched

growing of more for pipeline Third, in a And a with and games meant have prospect of for our people finally, is engaged contents, of focus to products. making on to year robust store The features, we're each particular more drive valuable focused a larger products on new audience for the each of that engaged enhancements shows, XXXX. other our this and Times all

valuable in the more to expect to build We more formats people how profitable millions each us. And appeal increasingly strong believe inspire way experiences habit a larger larger to with direct company. and daily to product execution areas a that these are audiences those is journalism priorities, create more expert in of delivered we and

for on the I'll that, to quarter. Will over it details With turn further

William Bardeen

Thanks, good Meredith, and morning, everyone.

expansion and AOP free strong flow margin results, built generation. we growth, of strong revenue year XXXX, healthy In including another cash growth,

the adding digital to X.X year, our of helped increases. XX% the revenue course base subscribers, we approximately million revenue continue As multiple across power streams. while and Meredith subscription ARPU our increase digital along engagement subscriber delivering said, in an strong to of grow growth also This subscriber over with led

overall year full revenue in licensing advertising, affiliate as leverage. partially by coupled the with in digital by disciplined results, print. grew to subscription, and drove X% ongoing approximately was revenue healthy year, offset growth digital approach the We in These operating our cost throughout declines

continue by and products. and digital grew AOP aimed approximately margin We high-quality XXX in points expanded XXXX at these we XX% further prioritize million, strategic delivered journalism to to year-over-year $XXX investments as basis our AOP results to differentiating even by XX.X%. approximately

a period, converts AOP $XXX cash shareholders. XXXX. dividends. approximately free capital-efficient in $XX to We returned Due $XXX million model, majority cash approximately large share million that million same repurchases flow. and million to free our of This included Over approximately we in our of in flow to approximately generated $XX

capital of as our from today, a an allocation repurchase million. $XXX with new quarterly the share Consistent strategy, increase dividend $X.XX as authorization in announced we well $X.XX to

prior XXX,XXX subscribers Now our unless portfolio. start all the approximately products to quarter, total a results, We coming XXXX. bringing our comparisons of XX.X added of subscribers from million, followed discussion our to subscription with fourth quarter's across period specified. key new I'll that growth in net for discuss the number business. our digital with the I'll the multiple are by first note of financial year Please otherwise quarter outlook

step added make promotional our continued to our on end subscribers to as ARPU the multiproduct to the trajectory. up $X.XX and exceeding along and of XX% we've seeing encouraging digital-only products, gives our up to at tenured by the from XX% in subscribers, path Bundle confidence X.X% prices value the next pricing continued year. we approximately us with combined well of grew higher Total prices subscribers. now The to total results of ARPU step-up we're strength points, raised non-bundled subscribers

ARPU guidance subscribers in to with in of revenue million. guidance last both approximately digital-only end fourth range XX% subscription last provided the a approximately provided the X% subscription million, digital was quarter, the at Total As revenues $XXX came which growing higher the line we $XXX in quarter, grew result of quarter. digital-only to high we and

increase $XXX Wirecutter approximately turning Total revenues advertising. quarter, perform $XX quarter outperformed well. the revenues in to million, advertising for Now continued approximately and licensing revenues to to revenues XX% affiliate an of $XXX as million Other were Digital approximately increased X.X% to million. increasing advertising the X%. revenues

X.X% opportunistically costs we grew the of to X% was Adjusted the increased marketing quarter. as in expected slightly high our operating during ROI. above guidance range This period investment X%

income. interest marketing revenue $X.XX of and driven approximately of increased and development sales product to increased costs operating X%, and approximately Adjusted profit each by QX diluted primarily X% costs the EPS approximately higher X%. costs decreased in approximately increased adjusted XX%, lines, higher G&A at increased $X.XX, Looking cost

increase I'll are for and compared to XX%. expected York X% revenues now subscription Company. total Digital-only look to XXXX, ahead total are to consolidated of XX% to New are to low the the advertising increase with QX single-digit decrease revenues subscription to to from XX% expected mid-single Times first quarter expected increase. expected high are revenues increase Other digits. revenues single low Digital and a a digits, advertising to expected revenues to increase range are single-digit

X% while are X% approach to costs. and journalism add increase maintaining operating high-quality to for disciplined our we product to a to in Adjusted digital audience as our expected value continue portfolio costs to invest

for strategy the streams. engaged is multiple our working economic year revenue coming growing that a strong are more our aimed Meredith base powering subscriber demonstrate priorities audience time, as and summary, designed. all In results over at subscription strategic and larger in building our highlighted The our XXXX essential

as In flow to free XXXX, in for remain returns. margin AOP growth expansion generation. capital and AOP We we our continued healthy path strong the on targets subscribers, midterm and well expect as achieving growth revenues and cash

questions. your take to happy we're that, With

Operator

from [Operator Instructions] Deutsche Our today first question Soff Bank. comes from Benjamin

Benjamin Soff

you ago provided couple you Analyst an of mentioned, as had multiyear years Day where a guidance. So you

that window. XXXX, in entering we're Now

over few entire obviously lot landscape has the the a You've years, evolved. accomplished and past

changed hoping follow-up. have was and how about on how those reflect has I should I then And business could targets? thinking you be we bit long-term a a So the

Meredith Kopit Levien

question. paint lot will anything. strongly XXXX. feel that say, and, a confidence our of is you the essential to to Benjamin, both forward attempted results have to thanks I'm in I see working subscription. as first, have for think free start that, happy I to feel that and strategy the here in Will, in be and and a the we outlook We Will add picture that you for that of of should strategy I designed, the kind

dynamic idea strategy that of kind building, we people are are their for that's that I news the think room most in ecosystem. the evolving products delivering make existing so dynamic in and us I think even we are to resilient them on even that out a seek focused really And that on rapidly in thing and and sort first them for good that is ask ecosystem. them coverage in and lives making of

play that seeing engagement revenue strong digital You're in and and licensing. subscriptions our that and through across portfolio in advertising affiliate enables and consistently in that, the

So we to confident company. profitable feel are where very larger a where believe we're going we're more about and be going building to and continue and we

add Will, feel there. But to may free have anything I missed

William Bardeen

think growth the out. priorities that say is and the only so stated, midterm on on returns. previously the achieving to of based our we're as I strategy for thing Meredith the targets, question subscriber laid believe the and far to and We the given capital path our success confidence

Benjamin Soff

can bundled growth then Or ARPU a promos and grow big vary on Great. here? that depending product, sub running? the of the positive for ARPU Do it you anticipate the cadence quarter. growth you're It's will to from sustainably you milestone. this bundled saw inflect And

William Bardeen

the take of can Having to watch the with as a the I expect steadily that, about and is engaging that. bundled you that continue that asked be when of we're Yes, really that pleased I best really always driver you're they're digital-only how we service, That's And action the on has products, noted, multi-product really bundle are I that in are been going. the you total in more think -- case. ARPU. as one placing increase value I to those metric mean on higher the step-ups specific categories say strong and said ARPU particular, reflects seeing. strategy in been which and people the the the bundle, improve just we journalism and to primary

a And gives have trajectory time subs that transition confidence prices we our us ability over can higher going then to to that ARPU forward. and strong strengthens

the ARPU or lot there's call have would ARPU continue to other, in I of way So our the nothing trajectory we to confidence one say and of just strength out overall. the just a multiproduct

Operator

comes Our Stanley. from Yeh Morgan next question Thomas

Thomas Yeh

whether a that or on how investments, types the approach of a different registered or top the more maybe focus verticals. users? content across does your tech pool translate mentioned you of Meredith, engaged growing different funnel Is that that's marketing? comment And into to on

quarter, sequential might that dovetailing and timing marketing Can philosophy you dig for around with expenses. ROI maybe then step-up a about expectations should your when I realize And you on ROI marketing the in paid on into the bit Will. the the of that? expense media we noticed think how nature the on the performance of

Meredith Kopit Levien

Thomas. a Thanks, That's question. Yes. great

XXXX. most stories. formats. for that us answer that on the to the What's I us deploy year audio, think touch really the we see on portfolio. In more more we us what big to terms that was but a and with intend in deploy use habit changing and and The is very the Last lot running continue is from into our to more how and them a get audience of do there's we and the and room self-evident, And feel in journalists continuing best in of have people it's biggest world's you way now news, every and important engaged in each New that relationship Times you'll York can portfolio a I more multi-day XXXX. direction part think ability of that's asking us. to real to to a I'll that if do in you're best in like about more in you year is it do And to can video with our expect and just grow of products, direct

of people. appealing question is journalism back that And where think funnel to about to sort your the I in Times that, more makes

the it and makes of engaged, top So middle funnel. them more the funnel, of

that So really news. we see

on already also great good games, robust both now development very in And future got every also building of are part and track pipeline have. funnel. we've record new games games, a of we for In the a the games

they're So people also they of new portfolio. Say, to habit-forming, in parts probably us, all running a they're bring lot very right? the but of self-evident,

Sports, we audience. market. The growth year with continue huge a We've pleased early. be It in all long to Athletic been is

great Times. A maybe to progress exists continue lot us The making to to come be say more far and is You in more funnel, to on can of to so focused the than come. very sure a expect there. products Athletic I'd other top there even know a good reason and people The very

and then what Wirecutter through just Cooking say, And ability sort I'll people shouldn't out count of get and listen to. and even they our podcast to

direction in getting top focused time, course, middle longer. people always in on question pay room running the So of engagement stay, specifically to And and every your over the very and we're stay of the of funnel, more at funnel. to the subscriber

William Bardeen

the take were We can investment the in I Thomas, And media question. quarter. pleased

of to and That's playing always has back start want be else that we continue step we've year-over-year in have product our and the increase organically. the subscribers of all the I targeted that that of in and I the played to the talk the journalism into development. remind majority you quarter it continue about the and investment the to made make role everyone model, investments been come given strategic to will core and believe significant to noted with You been and investment. overall. Pleased the played when

ROI-focused. media the our change Regarding We're investment no specifically, approach to there. there's very

see to seeing attractive of and when what what's happening take of in opportunities the as ROI. ROI of for really advantage in said, in always a you're so consider And variety leading is we've ROI. factors market a we given But change expectation higher the demands not we

And said, as reflected I QX. we're on we've in was will in expect, those given So can any you think quarter, fluctuate that's depending levels what what seeing.

pricing but And quarters. longevity with the model, having And it's money. of sort timing given step that, that we multiple up spending to the a not the of overall of terms confidence given of and of our realization, over quarter the over sort leading in on just ability of people plays to It say, to in itself out the power lot specifics needless in time. our we're product have value of experience the

lot a a real. us to model of give expected have sense We LTV ROI of our is confidence that in

it for I'll So there now. leave

Operator

Karnovsky JPMorgan. comes question next Our from from David

David Karnovsky

Digital the think you driver ahead? news. on of you would wanted just growth ads, I Should programmatic on Meredith, think rollout supply. expand say, if that could we what to and from to as then the And visible increasing see the those to athletic lifestyle games products on relative ads curious how largely come are, has see date, on

question. And a separate then just

securities and cash balance is billion. Your $X approaching

further change think would M&A, Is of kind Assuming be no here? the Any allocation, color great. about? optionality do for there we about instance, we that thinking how should capital in for be potential

Meredith Kopit Levien

I'll question I'll wants the reason Will On to the do little year the advertising, on. in we've Yes. and excited we about for digital bit question, do if second new in add are advertising. first pressing digital a And year entered on good anything. the you're part see

to continue supply lifestyle for demand out. a to I And real say, it's ahead more not would products. supply feel We there's story, our there's like roll just

like marketers The think I with working Times.

data for the canvases broadly effective news very audience we've got And across great beautiful ad out. now products got these product the in experience this a in have great we're Brand portfolio products. we and we have AI that our and news of years still have new targeting. lifestyle in that enterprise first-party Match, We've and and We rolling big

I'll we and opportunity just still question, supply ahead, my of experiences. The Thomas' Athletic I'll I to see have go, very say a answer more say people get product big with audience build to in and us to grows where The have of would I with all. come And to growth there's think sports, more just on games, As we as you'll Athletic, lot places that. where on and ahead kind far as sort as still app and in What of well with result there continue linear, perfectly but are to love awareness advertising can that, audience the imagine at a you not we as what's engage a it's

to we is programmatic, regard question method I a precise for buying. like should be it your expect programmatic would of On more

The direct are marketers and with kind work the a way in in both improvement say But to opportunity of execute We programmatic. in the lot growth programmatically. creative seeing portfolio is absolutely opportunity and of gives we sold I'd us multiproduct ways.

of portfolio sort the the the product opportunity directions, and So breadth strength lots of of both of and that us gives programmatic. in optionality direct

So that's my advertising. answer on

ecosystem. Just lot thinking about use We're balance in of answer do the a a broadly it question, think, said in this I you, optionality. the in I gives the very of sheet -- dynamic kind us Yes, word to we're I and very think a existing Ben's opportunity.

I is come still think in of lots there to that change ecosystem.

in that very have positioned, sheet clear very context. We're strategy. gives balance We like we us well but a the in the optionality

you that. I don't say if to want about know Will, So more

William Bardeen

add all just is which laid I this that -- all out, is just we've our here. be part recalling very is here philosophy to just a approach disciplined might worth allocation, which things, few a capital might of

authorization the really to $XXX shareholders our XX% cash is least grow $X.XX central always sure million-ish to authorization forward. approximately the investment our announcement as intend quarterly in prior of addition $XXX into of to of the we're just at is as the least the us Our strategy. return delivering to flow noting optionality increase on XX% top our to after the to at priority that make of the into going is free we in And new that to today that, organic then Part dividend continue left enabling strategy that well on repurchase opportunity. midterm, subscription strategic [indiscernible] million, to

on dynamic reiterate a then high Wirecutter, point Meredith and that want that whether we In to attractive always it's the or Athletic, having this have the capital. accelerate us bar made, And very consider. to with strategy really provide have the is with invested the past, a to we time align you've of M&A opportunities optionality that. at brands something I for seen Wordle changed. return risk-adjusted The

Operator

Next question comes from ISI. Kutgun Maral Evercore from

Kutgun Maral

you was the dynamics times perhaps could could this seeing, to you adds front, to wanted year up in the expand shapes bundle into like monetization? but you an can it out engagement see trends perennially follow you you're the seems on we're particularly value of presumably to and I on called maybe earlier, products, and unprecedented think about this hoping lean help how you the your unpack post-election. more and strength I to the perhaps efforts opportunities continue current your pushing us the and with It

Meredith Kopit Levien

that the I question. and the about question subscribers different engagements gas of that to opportunity prospects portfolio. and say, fuels engagement previous of of would feel engagement -- very a I model. the parts And to and to for generally, the -- in been good we among consistently sort been that the sort gave opportunity Thanks we lots Yes. build has part whole answer high-octane is strong, of the of an lots in It's of have every have still portfolio. consistently the tank strong

that I things makes one think of that's The Times unique. very the

do administration make us now, all that in are the and including for to I on say continued is to confident moment demand that. big format beyond a the meet right story journalistically are Washington, we've new feel enabling journalistically. in there that very in bullish investments but the I'd really coverage what well engine we persistent lines we innovation our

standout months coverage The we wildfires, had lots there. think L.A. Times week. I The had AI coverage last of story, DeepSeek of The about

aggressive that get ways, be to around well and different innovation, as lots very to really to format to said and goes. particularly earlier, video of cover We wherever are new and audio. in we're big the And our in it going people coverage I story to prepared continue

harness demand just designed say I'll wherever then And from. really it come broader portfolio to the is and might model

in ton sports and we've and of even roster running biggest and got less we've the this stories So the sports passionate for a for just fan of in Wirecutter. same incredible in passionate habit-forming games, interested cooking the got fan room and

have we engage about So to ability consistently market. in even that a a do optimism lot and ways new find changing people our to of

Operator

next comes Cannonball from Our Research. Vasily Karasyov question from

Vasily Karasyov

Meredith, any lot audience you video, main comments have us about step up I revenue and opportunities for engaged the a that of display for would example, ask follow opportunities are would And calls of to be think Do of what other wanted up as like impressions you allow sale. for that advertising you Obviously, if advertising, formats you you revenue with to growth. growth could charge your advertising driver revenue probably high great. see on this. and press you're release out line? on, the CPM, what that you digital and And in working share

Meredith Kopit Levien

for Thanks see a Yes. lot we advertising. Vasily. that I everywhere question, in the of say opportunity would

but You direct a we've call the strong. detail business consistently set, out majority there, CPM. We In product on we business. ad general, give and we've where got and don't sold a direct sold got high-value have a into side, particularly are been CPMs

We a long business have around this for time. in been very and

been high able have maintain to We CPM.

just on steadily would of just there's making campuses sort still And sure ways target a the valuable. ability I those standpoint. strong. our display better, I'd to say And to broader for performing we data make room products from and are in are that a those sort helps So there display say lot even and will of CPM better with gets marketers keep continue CPM running improving of strong canvases

asked You about video.

we But cases, I audio taking very important different bit think with those you quite ad podcast advertising. -- display to innovation still think canvases the audio video. in And I proposition there's And at be some come experimenting us part The format has continued a still advertising. more then there, of and I include in we're formats that, a Times. there's see -- would say aggressively obviously, of to

last I'll where So that of space imagine, And Times different experimenting really thing this advertising, as you any The with. digital say come it can is product and you the of portfolio we've to things. unique playing regard format, do sort virtually, can complementary people got

being to that game, with say a the as varied or story, those activities. different a very can a listening user result. reading recipe go watching news So a would And support story things playing a or made, ads those sports be I pretty are

Operator

Doug our Arthur from And final question from Research Partners. Huber comes

Douglas Arthur

answer when mean, like just -- mean the the and did item, the there? and see you surge talk about gas? egg you sort I chicken site on expense a line Will, leaning on so your media the I you in sudden of this opportunity, what's stepped into to traffic the

William Bardeen

any subscription overall. The why dynamics on in that going as I you're dynamics a appreciate asking the which in question. market in of given the And quarter that the we're lot doing there we're are playing are certainly, impact business pay-option the well.

speculate on So we kind specific don't really of dynamics. to like

a key at week the team every we're say we day, on our ROI on really really to focused looking is have every how the thing think performing I investment.

just see looking think attractive And in willing when the quick that. to so And returns out we we're at to We're really investment put we pull constantly see more we're same, of I that we if that developing. happening. in and we see in opposite was QX have we investment real what that. a to wanted view there, opportunity reflected And the take some advantage

Anthony DiClemente

We us quarter. talk next for this call, everyone you our we'll again to to thank morning for and earnings want joining

Operator

And conference gentlemen, we'll We and do with joining. call presentation. that, ladies and thank for you conclude today's

You may your lines. disconnect now

The New York Times Company (NYT) 5 Feb 252024 Q4 Earnings call transcript