Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — Q4 2024 Earnings Presentation
30 slides from Usa Today's earnings presentation, Feb 20, 2025
Slide 1: Q4 2024 Earnings
Q4 2024 Earnings February 20, 2025 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 Q4 2024 Highlights
Key Operating Pillars Strong Focus on Maximizing Long-term Shareholder Value Q4 2024 Highlights (1) Expand reach and engagement + Achieved growth in Adjusted EBITDA over the prior 1 with our customer segments year period Foundation + Significant improvement in net income attributable to for ongoing
Slide 5: The Turning Point
The Turning Point We Believe Improvement in Key Financial Metrics Demonstrates Positive Momentum Total Digital Digital Revenues as a Net Income (Loss) Adjusted EBITDA(1) Revenues % of Total Revenues Attributable to Gannett Grew Increased Grew Grew 1.2% 370 bps $87.2M 5.5% $64.3M $78.2M $277.1M $280.
Slide 6: The Turning Point: 2022 to 2024
(1) The Turning Point We Believe Improvement in Key Financial Metrics from 2022 to 2024 Demonstrates Positive Momentum Digital Revenues as a % of Net Income (Loss) Attributable to Adjusted Net Income (Loss) Total Digital Revenues (2) Total Revenues Gannett Attributable to Gannett Grew Increased Impr
Slide 7: Diversified Digital Revenue
Diversified Digital Revenue Revenue Expected to Continue to be Increasingly Digital Full Year 2024 % Variance to Full Year 2024 Total Revenue Mix Full Year 2024 as a % of Total Prior Year Digital Advertising $346.4M 14% +4% YoY Digital Marketing Services $476.0M 19% (0.2)% YoY 44% 56% Digital-only S
Slide 8: Key Stats and Value Drivers
Key Stats and Value Drivers Executed on Growth Segments and Investment Strategy in Full Year 2024 Expand Reach and Strengthen Capital Diversify Digital Revenues Engagement Structure 193M $1.1B $73.5M (4) Average Monthly Unique Visitors (1) Total Digital Revenues Total Debt Paydown 3.2% growth YoY 5.
Slide 9: Q4 2024 Results and Non-GAAP Highlights
(1) Q4 2024 Results and Non-GAAP Highlights (1) Revenues Adjusted EBITDA ◦ $621.3M Total Revenues ◦ $78.2M Adjusted EBITDA(1) (1) (1) ◦ Same store revenues decreased 5.5% compared to the same ◦ Adjusted EBITDA up $4.1 million, or 5.5% compared to the period in the prior year. Total revenues were imp
Slide 10: Full Year 2024 Results and Non-GAAP Highlights
Full Year 2024 Results and Non-GAAP Highlights(1) (1) Revenues Adjusted EBITDA ◦ $2.5B Total Revenues (1) ◦ $273.2M Adjusted EBITDA ◦ Same store revenues decreased 5.1% compared to the same ◦ Adjusted EBITDA up $5.5 million, or 2.1%, compared to the period in the prior year. Total revenues were impa
Slide 11: Business Outlook
(1) Business Outlook Full Year 2024 Results Expected Full Year 2025 Business Outlook Total Digital (2) Grow approximately 7%-10% on a same store basis (2) +5.8% on a same store basis Revenues Make up 50% of total revenues during 2025 (2) Down in the low single digits on a same store basis Total Reve
Slide 12: Key Operating Pillars
Key Operating Pillars Fourth Quarter 2024 Update 12
Slide 13: Pillar One: Expand Reach and Engagement with our Customer Segments
Pillar One: Expand Reach and Engagement with our Customer Segments Q4 2024 Metrics Digital-only Monetization Growth 1.99M 2.02M 2.03M 2.06M 2.06M $8.16 $7.93 $7.62 Total Digital Audience $7.05 $7.22 200M Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 (2) (2) Digital-only Paid Subscriptions Digital-only ARPU Average
Slide 14: Pillar Two: Diversify Digital Revenue
Pillar Two: Diversify Digital Revenue Revenue Expected to Continue to be Increasingly Digital Total Digital Digital Marketing Digital-only Digital Advertising Digital Other Revenues Services Subscription $280.4M $92.7M $116.7M $49.0M $21.9M +1% YoY +2% YoY (3)% YoY +17% YoY (10)% YoY Grow Audience I
Slide 15: Pillar Three: Strengthen Capital Structure
Pillar Three: Strengthen Capital Structure 2024 Balance Sheet and Liquidity 2024 + Cash and cash equivalents of $106.3 million at the end of 2024 Significant Debt Repayment + Total debt principal outstanding at December 31, 2024 of $1,111.8 million (1) $1,759M ◦ Total net debt outstanding of $1,005.
Slide 16: Digital Marketing Solutions
Digital Marketing Solutions Fourth Quarter 2024 Update 16
Slide 17: Digital Marketing Solutions: Drive Digital Revenue Growth
Digital Marketing Solutions: Drive Digital Revenue Growth Digital Marketing Solutions – Dedicated to Helping Local Businesses Succeed Q4 2024 Results $116.2M (1) Core Platform Revenues $2,788 (1) Core Platform ARPU 13.9K (1) Core Platform Average Customer Count 1 Core platform ARPU, core platform av
Slide 18: 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) $119.4 $122.8 $119.2 $116.1 $116.2 14.9 14.7 14.3 14.3 13.9 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 (1) (2) ARPU Customer Budget Retention $2,
Slide 19: Appendix
Appendix 19
Slide 20: Gannett Diversified Revenues
Gannett Diversified Revenues(1) Full Year Full Year Full Year Q4 2024 Full Year ($ in millions) 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 % of Total 2024 2024 % of Total % of Total Digital advertising $333.6 12.5% $84.5 $84.5 $84.7 $92.7 14.9% $346.4 13.8% Digital marketing services $477.0 17.9% $11
Slide 21: Debt and Leverage Overview
Debt and Leverage Overview (1) (1) Pre Refinance Post Refinance Balance as of September Balance as of December ($ in millions) Rate ($ in millions) Rate 30, 2024 31, 2024 2027 Notes 6.0% $485.3 2027 Notes 6.0% $38.1 Senior Secured Term (3) (2) 10.36% $297.6 2029 Term Loan Facility 9.4% $850.0 Loan 2
Slide 22: 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 23: 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 24: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted EBITDA 3 months ended December 31, 2024 Domestic Digital Corporate Total (in thousands) Gannett Newsquest Marketing and other Consolidated Media Solutions Net income attributable to Gannett $30,188 $12,315 $1,574 $20,242 $64,319 Benefit for income taxes —
Slide 25: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted EBITDA Year ended December 31, 2024 Domestic Digital Corporate Total (in thousands) Gannett Newsquest Marketing and other Consolidated Media Solutions Net income (loss) attributable to Gannett $61,333 $55,196 $13,382 $(156,265) $(26,354) Benefit for incom
Slide 26: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted EBITDA 3 months ended December 31, 2023 Domestic Digital Corporate Total (in thousands) Gannett Newsquest Marketing and other Consolidated Media Solutions Net income (loss) attributable to Gannett $26,915 $11,107 $8,043 $(68,957) $(22,892) Provision for i
Slide 27: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted EBITDA Year ended December 31, 2023 Domestic Digital Corporate Total (in thousands) Gannett Newsquest Marketing and other Consolidated Media Solutions Net income (loss) attributable to Gannett $114,254 $49,257 $28,841 $(220,143) $(27,791) Provision for in
Slide 28: Gannett Non-GAAP Reconciliation
(1) Gannett Non-GAAP Reconciliation Adjusted net income attributable to Gannett and Free cash flow (in thousands) 3 months ended (in thousands) Year ended December 31, 2024 December 31, 2024 Net income attributable to Gannett $64,319 Net loss attributable to Gannett ($26,354) Gain on early extinguis
Slide 29: Gannett Same Store Non-GAAP Revenues Metrics and Reconciliations
(1) Gannett Same Store Non-GAAP Revenues Metrics and Reconciliations 2024 and 2023 Same Store Year-over-Year Total revenues FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Same Store Year-Over-Year Total revenues (8.6)% (5.1)% (4.6)% (5.3)% (5.5)% (5.1)% Year ended Year ended 3 months ended 3 months
Slide 30: Gannett Same Store Non-GAAP Revenues Metrics and Reconciliations
(1) Gannett Same Store Non-GAAP Revenues Metrics and Reconciliations 2024 and 2023 Same Store Year-over-Year Digital revenues FY 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 FY 2024 Same Store Year-Over-Year Digital revenues 1.4% 7.8% 6.2% 5.8% 3.4% 5.8% Year ended Year ended 3 months ended 3 months ended (