Usa Today Co., Inc. · NYSE:TDAY
Usa Today — Gannett — 17th Annual Needham Technology & Media Conference 2022
18 slides from Usa Today's conference presentation, May 19, 2022
Slide 1: 17th Annual Needham Technology & Media Conference
17 Annual Needham th Technology & Media Conference May 19, 2022 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 operates a scalable, data-driven digital media platform
Gannett operates a scalable, data-driven digital media platform that is fully aligned with consumer and digital marketing trends. We are a subscription-led and digitally-focused media and marketing solutions company that is committed to empowering communities to thrive. Our strategy is focused on dr
Slide 4: Key Operating Pillars
Key Operating Pillars Strong Opportunity for Creating Stakeholder Value Drive digital Optimize Prioritize Accelerate digital Build on inclusive & marketing services traditional investments in subscriber growth diverse culture (DMS) growth business growth businesses 2025 outlook of 6 Significant digi
Slide 5: Topline Stats: Growth Drivers
Topline Stats: Growth Drivers Local and National reach across U.S. and U.K. in Q1 2022 Accelerate digital-only Drive digital marketing Optimize traditional business subscriber growth solutions (DMS) growth 1.75M $107.3M 1.8M Quarter End Digital-Only Subscribers DMS Core Platform Revenues(1) Total U.
Slide 6: Capital Allocation Strategy
Capital Allocation Strategy Focused on maximizing long-term shareholder value Operating Performance and Capital allocation strategy is focused on Growth maximizing long-term shareholder value Net Operating through: Cash Flow Strong balance sheet Debt paydown – eliminating leverage overhang and reduc
Slide 7: Digital Marketing Solutions
Digital Marketing Solutions 7
Slide 8: Pillar Two: Driving Digital Marketing Solutions Growth
Pillar Two: Driving Digital Marketing Solutions Growth Gannett’s DMS platform is used by local businesses to find, convert and keep customers. It’s an all-in-one marketing platform that optimizes any marketing budget to deliver more relevant messages to local consumers with a suite of marketing auto
Slide 9: DMS Addressable U.S. TAM $282B
DMS Addressable U.S. TAM $282B Engagement & Offering Digital Presence Digital Media Analytics Small SMB $84B $10B $8B Available TAM Premium SMB $84B $66B $30B Available TAM Cumulative TAM $168B $76B $38B $282B growing ~9% 9 Source: Borrell. TAM focuses on lead generation industry verticals (e.g. hom
Slide 10: Digital Marketing Solutions – Complementary Growth Models
Digital Marketing Solutions – Complementary Growth Models Current Growth Model New Growth Model Customer Segment MULTI-LOCATION BUSINESSES PREMIUM SMBs MID-TO-LARGE NATIONAL OR SMALL SMBs PREMIUM SMBs $12K-239K / year in LOCAL COMPANIES REGIONAL <12K / year in digital $12K-239K / year in digital mar
Slide 11: Gannett's DMS Unique Difference
Gannett’s DMS Unique Difference Patent- pending, bidding engines with goal-based, omni-channel advertising optimization Gannett’s DMS business is a sophisticated, cloud-based Simple setup How are we Marketing that works automation & platform of products, without different? management configuration t
Slide 12: We Believe Our DMS Business has Significant Value
We Believe Our DMS Business has Significant Value 1 2 Revenue growth Adjusted EBITDA margin 3 4 Healthy cohort/unit Customer Count Growth economics 12
Slide 13: Digital Marketing Solutions - Core Platform
Digital Marketing Solutions - Core Platform(1) Revenue (M) Customer Count (K)(2) 15.3 15.4 15.2 15.4 $104.7 $112.7 $110.1 $107.3 13.6 $93.9 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 2022 - 14% growth YOY Q1 2022 - 13% growth YOY ARPU(3) Customer Budget Retention(4) $2,309 $2,284
Slide 14: DMS Adjusted EBITDA Margins
DMS Adjusted EBITDA Margins(1) Four consecutive quarters of double-digit Adjusted EBITDA Margins Adjusted EBITDA Margins 12.9% 12.6% 11.4% 10.2% 9.0% Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 2022 – Increased 120 basis points Year-over-Year 1. Adjusted EBITDA margin is a non-GAAP measure. See Appendix for de
Slide 15: Appendix
Appendix 15
Slide 16: 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. GAAP basis. These non-GAAP financial measures, which may not be comparable to similarly titled measures reported by other companies, should not b
Slide 17: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) Adjusted EBITDA and Adjusted EBITDA Margin Total Company Digital Marketing Solutions Segment 3 months ended 3 months ended (in thousands) (in thousands) March 31, 2022 March 31, 2022 Net loss attributable to Gannett ($2,967) Net income attributable to Gannett $5,25
Slide 18: Gannett Non-GAAP Reconciliation
Gannett Non-GAAP Reconciliation(1) DMS Historical Adjusted EBITDA Margin 3 months ended 3 months ended (in thousands) December 31, (in thousands) September 30, 2021 2021 Net income attributable to Gannett $7,452 Net income attributable to Gannett $5,005 Depreciation and amortization 6,396 Depreciati
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