New York Times Company (the) · NYSE:NYT
New York Times Company (the) — Q1 2024 Earnings Presentation
21 slides from New York Times Company (the)'s earnings presentation, May 8, 2024
Slide 1: First Quarter 2024 Earnings Presentation
First Quarter 2024 Earnings Presentation May 8, 2024
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amende
Slide 3: First quarter 2024 business highlights
First quarter 2024 business highlights Bundle and multiproduct subscriber Saw growth across the Company’s AOP and AOP margin continued to grow as additions fueled subscriber growth multiple revenue streams the Company demonstrated cost discipline • The Company added approximately 210k net • Total di
Slide 4: First quarter 2024 actual results compared to guidance
First quarter 2024 actual results compared to guidance Q1 2024 Guidance Q1 2024 Actuals Digital-only subscription revenues increase 11 - 14% +13.2% Total subscription revenues increase 7 - 9% +7.9% Digital advertising revenues increase low-to-high-single-digits +2.9% Total advertising revenues decre
Slide 5: Continued execution of the Company's strategy is driving healthy financial results
Continued execution of the Company’s strategy is driving healthy financial results Total revenues Adjusted operating profit Adjusted diluted earnings per share +5.9% +40.9% $+0.12 $594M $76M $0.31 $561M $54M $0.19 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Adjusted operating profit is a non-GAA
Slide 6: The Company added 210K digital-only net new subscribers in the first quarter
The Company added 210K digital-only net new subscribers in the first quarter, bringing the total subscriber count to 10.55 million Digital-only net adds performance was largely driven by growth in bundle and multiproduct subscriber additions Total subscribers Digital-only subscriber net adds Digital
Slide 7: Bundle and multiproduct subscribers are becoming a larger portion of the subscriber base
Bundle and multiproduct subscribers are becoming a larger portion of the subscriber base Bundle and multiproduct subscribers Breakdown of total subscribers by type +330K Bundle and multiproduct News-only Other single product Print 4.55M 7% 7% 7% 6% 6% 4.22M 3.79M 25% 26% 26% 26% 27% 3.30M 3.02M 26%
Slide 8: Total digital-only ARPU grew 1.9% year-over-year
Total digital-only ARPU grew 1.9% year-over-year The year-over-year increase was driven primarily by subscribers graduating from promotional to higher prices and price increases on tenured non-bundled subscribers Total digital-only Bundle and multiproduct News-only Other single-product $14.33 $13.40
Slide 9: Total subscription revenues grew 7.9% year-over-year
Total subscription revenues grew 7.9% year-over-year as growth from digital was partially offset by print declines Total subscription revenues Digital subscription revenues Print subscription revenues +7.9% +13.2% $429M $398M $293M (2.0)% $259M $139M $136M Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1
Slide 10: The Company continued to scale its digital-only subscriber base and grow digital subscription revenues
The Company continued to scale its digital-only subscriber base and grow digital subscription revenues Total digital-only subscribers Total digital-only subscription revenues $293M 9.91M $259M 9.02M 8.23M $227M $180M 6.08M $130M 4.40M Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2020 Q1 2021 Q1 2022 Q
Slide 11: Total advertising revenues decreased 2.4% year-over-year
Total advertising revenues decreased 2.4% year-over-year Growth in digital advertising was more than offset by declines in print advertising Total advertising revenues Digital advertising revenues Print advertising revenues (2.4)% $106M $104M +2.9% (9.5)% $61M $63M $45M $41M Q1 2023 Q1 2024 Q1 2023
Slide 12: Other revenues grew 7.6% year-over-year
Other revenues grew 7.6% year-over-year Growth was driven by continued strength from licensing and Wirecutter affiliate referral revenues, partially offset by a decline in books, television and film Other revenues +7.6% $61M $57M Q1 2023 Q1 2024
Slide 13: Adjusted operating costs grew 2.2% year-over-year
Adjusted operating costs grew 2.2% year-over-year Growth in cost of revenue and product development was partially offset by lower general and administrative costs and sales and marketing costs Adjusted operating costs +6.3% +2.2% $507M $518M $477M $76M $73M $70M $57M $63M $47M $67M $65M $78M $281M $
Slide 14: Adjusted operating profit grew 40.9% year-over-year and margin expanded 320 basis points
Adjusted operating profit grew 40.9% year-over-year and adjusted operating profit margin expanded 320 basis points to 12.8% Adjusted operating profit and adjusted operating profit margin +40.9% $76M $54M 12.8% 9.6% Q1 2023 Q1 2024 AOP AOP Margin Adjusted operating profit and adjusted operating profi
Slide 15: Healthy and growing free cash flow; aims to return at least 50% to shareholders
The Company continues to generate healthy and growing free cash flow and aims to return at least 50% of free cash flow to shareholders over the mid-term Free Cash Flow $338M $340M $264M $226M $182M Mar 31, 2023 Jun 30, 2023 Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Last twelve months ended Last twelve
Slide 16: The New York Times Company's second quarter 2024 guidance
The New York Times Company’s second quarter 2024 guidance Below is the Company’s guidance for revenues and adjusted operating costs for the second quarter of 2024 compared with the second quarter of 2023 Q2 2024 Guidance Digital-only subscription revenues increase 11 - 14% Total subscription revenue
Slide 17: Appendix
Appendix @? The New York Times é& Company
Slide 18: Reconciliation of operating profit to adjusted operating profit and margin
Reconciliation of operating profit to adjusted operating profit and adjusted operating profit margin We define adjusted operating profit as operating profit, as reported, before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted operatin
Slide 19: Reconciliation of total operating costs to adjusted operating costs
Reconciliation of total operating costs to adjusted operating costs and general and administrative costs to adjusted general and administrative costs We define adjusted operating costs as operating costs, as reported, before depreciation and amortization, severance, multiemployer pension withdrawal
Slide 20: Reconciliation of diluted EPS to adjusted diluted EPS
Reconciliation of diluted earnings per share to adjusted diluted earnings per share We define adjusted diluted earnings per share as diluted EPS, as reported, excluding amortization of acquired intangible assets, severance, non-operating retirement costs and special items First Quarter % Change 2024
Slide 21: Reconciliation of operating cash flow to free cash flow
Reconciliation of net cash provided by/(used in) operating activities to free cash flow We define free cash flow as net cash provided by operating activities, as reported, less capital expenditures Last Twelve Months Ended ($ in thousands) Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31,
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