New York Times Company (the) · NYSE:NYT
New York Times Company (the) — Q4 2023 Earnings Presentation
22 slides from New York Times Company (the)'s earnings presentation, Feb 7, 2024
Slide 1: Fourth Quarter and Full-Year 2023 Earnings Presentation
Fourth Quarter and Full-Year 2023 Earnings Presentation February 7, 2024
Slide 2: Safe Harbor
Safe Harbor Forward-Looking Statement Except for the historical information contained herein, the matters discussed in this presentation 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,
Slide 3: Q4 2023 business highlights
Q4 2023 business highlights High quality journalism and product Growth in digital subscription and other AOP and AOP margin continued to grow as portfolio drove subscriber growth revenue helped offset advertising headwinds we managed costs and grew revenue • The Company added approximately 300k net
Slide 4: Q4 guidance compared to actual results
Q4 guidance compared to actual results Q4 Guidance Q4 2023 Actuals (reported basis) Digital-only subscription revenues increase 6 - 9% +7.2% Total subscription revenues increase 2 - 5% +3.9% decrease low-single-digits to Digital advertising revenues (3.7)% increase mid-single-digits decrease mid-sin
Slide 5: Continued execution of our strategy is driving healthy financial results
Continued execution of our strategy is driving healthy financial results Adjusted diluted Total revenues Adjusted operating profit earnings per share +1.3% $+0.11 +8.5% $668M $676M $0.70 $154M $0.59 $142M Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Adjusted operating profit is a non-GAAP financi
Slide 6: In Q4 we added 300K digital-only net new subscribers, bringing total to 10.36 million
In Q4 we added 300K digital-only net new subscribers, bringing our total subscriber count to 10.36 million Digital-only net adds performance was largely driven by strong growth in bundle and multiproduct subscriber net adds Total subscribers Digital-only subscriber net adds Digital-only Print 10.08M
Slide 7: Bundle and multiproduct subscribers are becoming a larger portion of our subscriber base
Bundle and multiproduct subscribers are becoming a larger portion of our subscriber base Bundle and multiproduct subscribers Breakdown of total subscribers by type +430K Bundle and multiproduct News-only Other single product Print 4.22M 8% 7% 7% 7% 6% 3.79M 25% 25% 26% 26% 26% 3.30M 3.02M 2.50M 30%
Slide 8: Total digital-only ARPU grew year-over-year for the third consecutive quarter
Total digital-only ARPU grew year-over-year for the third consecutive quarter 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
Slide 9: Total subscription revenues grew 3.9% year-over-year
Total subscription revenues grew 3.9% year-over-year as growth from digital was partially offset by print declines Total subscription revenues Digital subscription revenues Print subscription revenues +3.9% +7.2% $430M $414M $289M (2.2)% $269M $145M $142M Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2
Slide 10: Over the last 5 years, we have scaled our digital-only subscriber base
Over the last 5 years, we have successfully scaled our digital-only subscriber base and grown digital subscription revenues Total digital-only subscribers Total digital-only subscription revenues $289M 9.70M $269M 8.83M $206M 6.78M 5.85M $167M $122M 3.89M Q4 2019 Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2
Slide 11: Total advertising revenues decreased 8.4% year-over-year
Total advertising revenues decreased 8.4% year-over-year, driven by declines in both digital and print advertising revenues Total advertising revenues Digital advertising revenues Print advertising revenues (8.4)% (3.7)% $179M $164M $112M $108M (16.2)% $67M $56M Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 20
Slide 12: Other revenues grew 10% year-over-year
Other revenues grew 10% year-over-year, driven by continued strength from licensing and Wirecutter affiliate referral revenues Other revenues +10.0% $82M $74M Q4 2022 Q4 2023
Slide 13: Adjusted operating costs decreased 0.7% year-over-year
Adjusted operating costs decreased 0.7% year-over-year largely as a result of lower cost of revenue Adjusted operating costs +8.4% (0.7)% $526M $522M $485M $76M $75M $66M $55M $58M $42M $62M $68M $97M $332M $321M $280M Q4 2021 Q4 2022 Q4 2023 Cost of revenue Sales and marketing Product development A
Slide 14: Adjusted operating profit grew 8.5% in the quarter and 12% in the year
Adjusted operating profit grew 8.5% in the quarter and 12% in the year Adjusted operating profit margin expanded 160 basis points in the quarter and 100 basis points in the year Adjusted operating profit and adjusted operating profit margin +8.5% +12.0% $390M $154M $348M $142M 22.8% 16.1% 15.1% 21.2
Slide 15: Healthy and growing free cash flow, returning a significant portion to shareholders
We are generating healthy and growing free cash flow, and returning a significant portion of it to shareholders over the medium term Our capital return priorities We aim to return at least 50% of free cash flow to shareholders over the medium term 1. Organically reinvest into our growth strategy in
Slide 16: The New York Times Company's Q1 2024 Guidance
The New York Times Company’s Q1 2024 Guidance Below is the Company’s guidance for revenues and adjusted operating costs for the first quarter of 2024 compared with the first quarter of 2023 Q1 2024 Guidance Digital-only subscription revenues increase 11 - 14% Total subscription revenues increase 7 -
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 Fourth Quarter % Change 202
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 Year-End December 31 % Change ($ in thousands) 2023 2022 2023 vs. 2022 Net cash provided by operating
Slide 22: Reconciliation of revenues excluding impact of five fewer days
Reconciliation of revenues excluding the estimated impact of the five fewer days in the fourth quarter of 2023 Fourth Quarter 2023 2022 Five Days (1) 2022 % Change ($ in thousands) As Reported Adjusted Digital subscription revenues $288,670 $269,196 $(13,696) $255,500 13.0% Print subscription revenu
New York Times Company (The) — Q4 2023 Earnings Presentation on 6ix