New York Times Company (the) · NYSE:NYT
New York Times Company (the) — Q3 2024 Earnings Presentation
21 slides from New York Times Company (the)'s earnings presentation, Nov 4, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
Third Quarter 2024 Earnings Presentation November 4, 2024
Slide 2: Forward-Looking Statements; 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: Third quarter 2024 business highlights
Third quarter 2024 business highlights Subscriber growth was fueled by multiple Saw growth across the Company’s AOP and AOP margin continued to grow as products across the Company’s portfolio multiple revenue streams the Company demonstrated cost discipline • The Company added approximately 260k net
Slide 4: Third quarter 2024 actual results compared to guidance
Third quarter 2024 actual results compared to guidance Q3 2024 Guidance Q3 2024 Actuals Digital-only subscription revenues increase 12 - 15% +14.2% Total subscription revenues increase 7 - 9% +8.3% Digital advertising revenues increase high-single-digits +8.8% Total advertising revenues flat to incr
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 +7.0% +16.1% $+0.08 $640M $598M $104M $0.45 $90M $0.37 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Adjusted operating profit is a non-GA
Slide 6: The Company added 260K digital-only net new subscribers in the third quarter
The Company added 260K digital-only net new subscribers in the third quarter, bringing the total subscriber count to 11.09 million Digital-only net additions were largely driven by bundle and multiproduct subscriber additions as well as other single product subscriber additions Total subscribers Dig
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 +300K Bundle and multiproduct News-only Other single product Print 5.12M 7% 6% 6% 6% 6% 4.83M 4.55M 4.22M 26% 26% 27% 29% 29% 3.79M 26%
Slide 8: Total digital-only ARPU grew 1.8% year-over-year
Total digital-only ARPU grew 1.8% year-over-year The year-over-year increase was driven primarily by subscribers transitioning from promotional to higher prices and price increases on tenured non-bundled subscribers Total digital-only Bundle and multiproduct News-only Other single-product $12.81 +1.
Slide 9: Total subscription revenues grew 8.3% year-over-year
Total subscription revenues grew 8.3% year-over-year as growth from digital was partially offset by print declines Total subscription revenues Digital subscription revenues Print subscription revenues +8.3% +14.2% $453M $419M $322M $282M (3.8)% $136M $131M Q3 2023 Q3 2024 Q3 2023 Q3 2024 Q3 2023 Q3
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 $322M 10.47M $282M 9.41M $244M 8.59M $199M 6.55M $155M 5.31M Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2020 Q3 2021 Q3 2022
Slide 11: Total advertising revenues increased 1.1% year-over-year
Total advertising revenues increased 1.1% year-over-year Growth in digital advertising was partially offset by declines in print advertising Total advertising revenues Digital advertising revenues Print advertising revenues +1.1% $117M $118M +8.8% $82M $75M (12.6)% $42M $37M Q3 2023 Q3 2024 Q3 2023
Slide 12: Other revenues grew 9.3% year-over-year
Other revenues grew 9.3% year-over-year Growth was driven by continued strength from Wirecutter affiliate referral and licensing revenues Other revenues +9.3% $68M $63M Q3 2023 Q3 2024
Slide 13: Adjusted operating costs grew 5.4% year-over-year
Adjusted operating costs grew 5.4% year-over-year Growth was driven largely by higher cost of revenue, sales and marketing and product development expenses, partially offset by lower general and administrative expenses Adjusted operating costs +6.2% +5.4% $536M $509M $479M $74M $77M $69M $61M $50M $
Slide 14: Adjusted operating profit grew 16.1% and margin expanded 130 basis points to 16.3%
Adjusted operating profit grew 16.1% year-over-year and adjusted operating profit margin expanded 130 basis points to 16.3% Adjusted operating profit and adjusted operating profit margin +16.1% $104M $90M 16.3% 15.0% Q3 2023 Q3 2024 AOP AOP Margin Adjusted operating profit and adjusted operating pro
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 $369M $338M $340M $348M $264M Sep 30, 2023 Dec 31, 2023 Mar 31, 2024 Jun 30, 2024 Sep 30, 2024 Last twelve months ended Last twelve
Slide 16: The New York Times Company's fourth quarter 2024 guidance
The New York Times Company’s fourth quarter 2024 guidance Below is the Company’s guidance for revenues and adjusted operating costs for the fourth quarter of 2024 compared with the fourth quarter of 2023 Q4 2024 Guidance Digital-only subscription revenues increase 14 - 17% Total subscription revenue
Slide 17: Appendix
Appendix @? The New York Times é& Company
Slide 18: Reconciliation of operating profit to adjusted operating profit and margin
Reconciliation of operating profit to adjusted operating profit and adjusted operating profit margin We define adjusted operating profit as operating profit, as reported, before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted operatin
Slide 19: Reconciliation of total operating costs to adjusted operating costs
Reconciliation of total operating costs to adjusted operating costs and general and administrative costs to adjusted general and administrative costs We define adjusted operating costs as operating costs, as reported, before depreciation and amortization, severance, multiemployer pension withdrawal
Slide 20: Reconciliation of diluted EPS to adjusted diluted EPS
Reconciliation of diluted earnings per share to adjusted diluted earnings per share We define adjusted diluted earnings per share as diluted EPS, as reported, excluding amortization of acquired intangible assets, severance, non-operating retirement costs and special items Third Quarter % Change 2024
Slide 21: Reconciliation of operating cash flow to free cash flow
Reconciliation of net cash provided by/(used in) operating activities to free cash flow We define free cash flow as net cash provided by operating activities, as reported, less capital expenditures Last Twelve Months Ended ($ in thousands) Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30,
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