Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Q3 2024 Earnings Presentation
27 slides from Usa Today's earnings presentation, Oct 31, 2024
Slide 1: Q3 2024 Earnings
Q3 2024 Earnings October 31, 2024 1
Slide 2: Disclaimer and Notes
Disclaimer and Notes In General. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the “Presentation.” Gannett Co., Inc. is referred to in this Pres
Slide 3: Gannett is a diversified media company with expansive reach
Gannett is a diversified media company with expansive reach at the national and local level dedicated to empowering and enriching communities. We seek to inspire, inform, and connect audiences as a sustainable, growth- focused media and digital marketing solutions company. Our strategy prioritizes m
Slide 4: Key Operating Pillars and Q3 2024 Highlights
Key Operating Pillars Strong focus on maximizing long-term shareholder value Q3 2024 Highlights (1) + Achieved Adjusted EBITDA year-over-year growth 1 + Generated significant free cash flow (1) growth compared to the prior year period 2 (2) + Surpassed 200 million average monthly unique visitors + R
Slide 5: The Turning Point
The Turning Point We Believe Improvement in Key Financial Metrics Demonstrates Positive Momentum Total Digital Digital Revenues as a Cash Provided by Free Cash Flow(1) Revenues % of Total Revenues Operating Activities Grew Increased Grew Grew 5.2% 490 bps 63.6% 168.1% $277.4M 45.3% $33.7M $19.8M $26
Slide 6: Diversified Digital Revenue
Diversified Digital Revenue Revenue Expected to Continue to be Increasingly Digital Q3 2024 % Variance to Q3 2024 Total Revenue Mix Q3 2024 % of Total Prior Year Digital Advertising $84.7M 14% +5% YoY Digital Marketing Services $119.6M 20% (2)% YoY 45% 55% Digital-only Subscription $50.1M 8% +25% Yo
Slide 7: Revenue Trend Improvement
Revenue Trend Improvement Continued Progress and Expect to Reach Inflection Point in 2025 Same-Store Total Revenues(1) Total Digital Revenues as % of Total Revenues Year-over-Year (4)% 46% (5)% 44% (6)% 42% (7)% 40% (8)% 38% (9)% (10)% 36% Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q1 23 Q2 23 Q3 23
Slide 8: Key Stats and Value Drivers
Key Stats and Value Drivers Executed on Growth Segments and Investment Strategy in Q3 2024 Diversified Digital Expanded Reach Balanced Capital Structure Revenues 203M $277.4M $28.5M Average Monthly Unique Visitors (1) Total Digital Revenues Total Debt Paydown 7.4% growth YoY 5.2% growth YoY 2.06M 45
Slide 9: Q3 2024 Results and Non-GAAP Highlights
(1) Q3 2024 Results and Non-GAAP Highlights (1) Revenues Adjusted EBITDA ◦ $612.4M Total Revenues ◦ $62.9M Adjusted EBITDA(1) (1) (1) ◦ Same store revenues down 5.3% compared to the same ◦ Adjusted EBITDA up $3.4 million, or 5.6% compared to the period in the prior year. Total revenues were impacted
Slide 10: Business Outlook
(1) Business Outlook Following Q3 2024 Results, the Company Updated its Full Year 2024 Outlook Full Year 2024 2025-2026 Expected to accelerate with growth exceeding 10% year- Total Digital (2) over-year Expected growth of 6-7% on a same store basis Revenues Expected to make up 50% of total revenues
Slide 11: Key Operating Pillars: Third Quarter 2024 Update
Key Operating Pillars Third Quarter 2024 Update 11
Slide 12: Pillar One: Expanded Reach with our Customer Segments
Pillar One: Expanded Reach with our Customer Segments Q3 2024 Audience Metrics Digital-only Monetization Growth 1.96M 1.99M 2.02M 2.03M 2.06M $8.16 $7.62 Total Digital Audience $7.05 $7.22 $6.82 203M Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 (2) (2) Digital-only Paid Subscriptions Digital-only ARPU Average Mont
Slide 13: Pillar Two: Diversified Digital Revenue
Pillar Two: Diversified Digital Revenue Revenue Expected to Continue to be Increasingly Digital Total Digital Digital Marketing Digital-only Digital Advertising Digital Other Revenues Services Subscription $277.4M $84.7M $119.6M $50.1M $23.0M +5% YoY +5% YoY (2)% YoY +25% YoY +10% YoY Grow Audience
Slide 14: Pillar Three: Balanced Capital Structure
Pillar Three: Balanced Capital Structure Q3 2024 Balance Sheet and Liquidity Q3 2024 + Cash and cash equivalents of $101.8 million at the end of Q3 2024 Significant Debt Repayment + Total debt principal outstanding at September 30, 2024 of $1,061.4 million (1) ◦ Total net debt outstanding of $959.6
Slide 15: Digital Marketing Solutions: Third Quarter 2024 Update
Digital Marketing Solutions Third Quarter 2024 Update 15
Slide 16: Digital Marketing Solutions: Drive Digital Revenue Growth
Digital Marketing Solutions: Drive Digital Revenue Growth Digital Marketing Solutions – Dedicated to Helping Local Businesses Succeed Q3 2024 Results $119.2M (1) Core Platform Revenues $2,777 (1) Core Platform ARPU 14.3K (1) Core Platform Average Customer Count 1 Core platform ARPU, core platform av
Slide 17: Digital Marketing Solutions: Drive DMS Growth
Digital Marketing Solutions: Drive DMS Growth Digital Marketing Solutions - Core Platform (1) (1) Revenues (M) Average Customer Count (K) $120.8 $119.4 $122.8 $119.2 $116.1 15.3 14.9 14.7 14.3 14.3 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 (1) (2) ARPU Customer Budget Retention $2,
Slide 18: Appendix
Appendix 18
Slide 19: Gannett Diversified Revenues
Gannett Diversified Revenues(1) Full Year Full Year Q3 2024 ($ in millions) Q3 2023 Q4 2023 2023 2023 Q1 2024 Q2 2024 Q3 2024 % of Total % of Total Digital advertising $80.8 $91.1 $333.6 12.5% $84.5 $84.5 $84.7 13.8% Digital marketing services $121.9 $119.8 $477.0 17.9% $116.4 $123.3 $119.6 19.5% Di
Slide 20: Debt and Leverage Overview
Debt and Leverage Overview ($ in millions) Rate Balance as of September 30, 2024 2027 Notes 6.0% $485.3 (1) (2) Senior Secured Term Loan (due 2026) 10.36% $297.6 2026 Senior Notes 6.0% $278.5 Total Debt Outstanding 7.22% Blended Rate $1,061.4 (3) Q3 2024 LTM Adjusted EBITDA $269.1 Cash and cash equi
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation The Company uses non-GAAP financial performance and liquidity measures to supplement the financial information presented on a U.S. generally accepted accounting principles ("U.S. GAAP") basis. These non-GAAP financial performance and liquidity measures, which may not be compa
Slide 22: Key Performance Indicators
Key Performance Indicators A key performance indicator ("KPI") is generally defined as a quantifiable measurement or metric used to gauge performance, specifically to help determine strategic, financial, and operational achievements, especially compared to those of similar businesses. We define Digi
Slide 23: Gannett Non-GAAP Reconciliation: Adjusted EBITDA Q3 2024
(1) Gannett Non-GAAP Reconciliation Adjusted EBITDA 3 months ended September 30, 2024 Domestic Digital Corporate Total (in thousands) Gannett Newsquest Marketing and other Consolidated Media Solutions Net income (loss) attributable to Gannett $9,639 $14,279 $5,685 $(49,256) $(19,653) Benefit for inc
Slide 24: Gannett Non-GAAP Reconciliation: Adjusted EBITDA Q3 2023
(1) Gannett Non-GAAP Reconciliation Adjusted EBITDA 3 months ended September 30, 2023 Domestic Digital Corporate Total (in thousands) Gannett Newsquest Marketing and other Consolidated Media Solutions Net income (loss) attributable to Gannett $41,544 $12,993 $5,902 $(63,005) $(2,566) Provision for i
Slide 25: Adjusted Net Income and Free Cash Flow Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted Net Income attributable to Gannett and Free Cash Flow 3 months ended 3 months ended (in thousands) (in thousands) September 30, 2024 September 30, 2024 Net loss attributable to Gannett $(19,653) Cash flow from operating activities (GAAP basis) $33,745 Los
Slide 26: Same Store Non-GAAP Total Revenues Reconciliations
(1) Gannett Same Store Non-GAAP Revenues Metrics and Reconciliations 2024 and 2023 Same Store Year-over-Year Total revenues Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Same Store Year-Over-Year Total revenues (8.4)% (8.0)% (8.6)% (5.1)% (4.6)% (5.3)% 3 months ended 3 months ended 3 months ended
Slide 27: Same Store Non-GAAP Digital Revenues Reconciliations
(1) Gannett Same Store Non-GAAP Revenues Metrics and Reconciliations 2024 and 2023 Same Store Year-over-Year Digital revenues Q3 2023 Q4 2023 FY 2023 Q1 2024 Q2 2024 Q3 2024 Same Store Year-Over-Year Digital revenues 2.7% 2.7% 1.4% 7.8% 6.2% 5.8% 3 months ended 3 months ended 3 months ended 3 months