Core Insights - Wall Street analysts expect New York Times Co. (NYT) to report quarterly earnings of $0.35 per share, reflecting a year-over-year increase of 12.9% [1] - Revenue projections stand at $635.14 million, indicating a 6.9% increase from the previous year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1][2] Revenue Projections - Digital-only subscription revenues are forecasted to reach $338.94 million, a year-over-year increase of 15.7% [4] - Total digital advertising revenues are expected to be $68.76 million, reflecting a 9.1% increase [4] - Print advertising revenues are projected at $35.24 million, showing a decline of 13.4% from the prior year [4] - Other revenues are estimated at $64.58 million, indicating a 5.3% increase [5] - Print subscription revenues are expected to be $127.62 million, down 6.2% year-over-year [5] - Total advertising revenue is projected at $104.00 million, suggesting a slight increase of 0.3% [5] Subscription Metrics - Subscription revenues are estimated at $466.56 million, reflecting an 8.8% increase from the previous year [6] - Total digital-only subscriptions are projected to reach 11,061, up from 9,910 in the same quarter last year [6] - Print subscriptions are expected to decline to 590, down from 640 in the same quarter last year [7] - Total digital-only ARPU is projected at $9.66, compared to $9.21 a year ago [7] - Total subscriptions for both digital and print are expected to reach 11,651, up from 10,550 in the previous year [7] Market Performance - Over the past month, New York Times shares have returned +14%, outperforming the Zacks S&P 500 composite's +11.5% [8] - The company holds a Zacks Rank 3 (Hold), suggesting performance alignment with the overall market in the near term [8]

Core Viewpoint - The New York Times Company (NYT) is expected to report a 6.9% increase in first-quarter 2025 revenues, driven by subscription growth and advertising trends [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $635.1 million, reflecting a 6.9% rise from the previous year [1]. - The consensus estimate for earnings per share (EPS) is 35 cents, indicating a 12.9% increase year-over-year [2]. Subscription Growth - NYT's focus on subscription growth and digital innovation has been crucial, with total subscription revenues projected to increase by 7-10% year-over-year [4]. - The consensus estimate for subscription revenues is $466.6 million, suggesting an 8.8% growth, while digital-only subscription revenues are expected to reach $338.9 million, indicating a 15.7% increase [4]. Subscriber Base Expansion - The digital-only subscriber count is anticipated to reach 11.1 million by the end of Q1 2025, enhancing NYT's market position for advertisers [5]. Digital Advertising Trends - NYT is reducing reliance on traditional advertising, with digital advertising revenues expected to grow by 9.1%, estimated at $68.8 million [6]. Challenges Faced - Print subscription revenues are projected to decline by 6.2% to $127.6 million, and print advertising revenues are expected to fall by 13.4% to $35.2 million [7]. - Increased spending on product development and marketing may impact margins, with adjusted operating costs expected to rise by 5-6% [7]. Earnings Prediction Model - The Zacks model does not predict an earnings beat for NYT, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [8].

Subscriber Growth - As of December 31, 2024, the company had approximately 11.43 million subscribers, the highest in its history [11]. - The company aims to reach 15 million total subscribers by year-end 2027, representing a growth target of approximately 31% from the end of 2024 [14]. - Paid digital-only subscribers totaled approximately 10.82 million as of December 31, 2024, with international subscribers representing over 20% of this total [34]. - The company continues to invest in efforts to grow its digital subscriber base, which is critical for future revenue growth [66]. - The decline in print subscribers is expected to continue, impacting overall revenue if not offset by digital subscriptions [73]. - The company is focusing on enhancing its multiproduct digital bundle to encourage subscribers to use multiple products [72]. - Average digital-only subscribers for bundle and multiproduct offerings increased by 1,480,000, or 44.2%, while news-only average digital-only subscribers decreased by 1,020,000, or 30.6% [208]. Revenue Sources and Financial Performance - The company generates revenue from various sources, including subscription sales, advertising, licensing, and affiliate referrals [12][44]. - Total revenues increased by 6.6% to $2.59 billion in 2024 from $2.43 billion in 2023, with subscription revenues rising by 8.0% to $1.79 billion [191]. - Digital-only subscription revenues grew by 14.1% to $1.25 billion in 2024 from $1.10 billion in 2023 [191]. - Operating profit increased by 27.1% to $351.1 million in 2024 from $276.3 million in 2023, with an operating profit margin of 13.6% [191]. - Adjusted operating profit rose by 16.8% to $455.4 million in 2024 from $389.9 million in 2023, with an adjusted operating profit margin of 17.6% [191]. - Net income attributable to The New York Times Company common stockholders was $293,825, a 26.4% increase from $232,387 in 2023 [203]. - Free cash flow for 2024 was $381.3 million, compared to $337.9 million in 2023 [191]. - The company aims to return at least 50% of free cash flow to stockholders through dividends and share repurchases over the next three to five years [195]. Advertising Revenue - Digital advertising accounted for approximately 68% of the company's advertising revenues in 2024, while print advertising represented about 32% [40][41]. - Total advertising revenues increased by 0.2% to $506.3 million in 2024, driven by a 7.7% increase in digital advertising revenues [191]. - The company's advertising revenues are sensitive to macroeconomic conditions, with fluctuations in advertiser budgets impacting overall revenue [78]. - The company faces significant competition in the digital advertising market from larger platforms with greater audience reach and targeting capabilities [79]. Employee and Labor Relations - The company had approximately 5,900 full-time equivalent employees as of December 31, 2024, with over 2,800 involved in journalism operations [54]. - Approximately 43% of full-time equivalent employees were represented by unions as of December 31, 2024 [60]. - The company conducts a pay-equity study every two years, with the most recent one completed in 2023 [58]. - Employee-related costs have been rising due to a competitive labor market and inflation, potentially impacting profitability if revenues decline [138]. - The company may face challenges in attracting and retaining talent due to competitive labor market conditions, which could disrupt operations and strategic planning [139]. Competition and Market Challenges - The company competes with various digital and print news providers, including The Washington Post and CNN, as well as social media platforms and AI-powered tools [45][46]. - The company faces significant competition from various content providers, including those leveraging generative AI technologies [64]. - The company's ability to attract and retain subscribers is influenced by factors such as pricing, perceived value, and marketing effectiveness [70]. - The company relies on third-party platforms for user acquisition and monetization, which poses risks if these platforms change their terms or fees [75]. Operational Risks and Compliance - The company is exposed to risks associated with foreign operations, including compliance with varying laws and regulations [99]. - Significant disruptions in the newsprint supply chain could adversely affect operating results, as the price of newsprint has historically been volatile [101]. - The company is subject to various economic, market, and political conditions that could disrupt operations and financial performance [91]. - The company faces potential disruptions in its newsprint supply chain and distribution channels, which could adversely affect its operating results [104]. - The company is subject to evolving environmental, social, and governance (ESG) regulations, which may require additional investments and compliance efforts [105]. - Ongoing litigation related to intellectual property rights could result in significant costs and adversely affect the company's financial condition [110]. - The company must continuously invest in its technical and data infrastructure to maintain user engagement and protect sensitive data, which could strain resources [117]. - Security incidents and breaches pose risks to the company's operations and reputation, with potential significant costs associated with recovery and mitigation efforts [119]. - Compliance with privacy and data protection laws is critical, as failures could lead to penalties and damage to the company's reputation [125]. - The company is actively working on privacy engineering projects to enhance compliance capabilities, which may cause operational disruptions [128]. - The company may face increased scrutiny and regulatory demands related to consumer marketing and subscription practices, impacting subscriber retention [128]. - The company is engaged in ongoing litigation and regulatory inquiries that could negatively affect its business operations and financial results [130]. - The company relies on third-party payment processing systems, which are subject to evolving regulations and could impact user retention and operational costs if disruptions occur [131]. - Fraudulent use of payment methods may inflate subscriber figures, adversely affecting business management and brand reputation if not adequately controlled [132]. Capital and Financial Management - The company has a $350 million unsecured credit facility with no outstanding borrowings as of December 31, 2024 [160]. - The company announced a quarterly dividend of $0.18 per share, an increase of $0.05 from the previous quarter [180]. - The Class B Common Stock is primarily held by a family trust, which controls approximately 95% of the shares, potentially affecting corporate governance and control [163]. - The company may face limitations in accessing capital markets due to various economic factors, which could impact financing options [162]. - The company has a revolving credit agreement that imposes restrictions on operations, potentially affecting business strategy execution [161]. Investments and Acquisitions - The company intends to continue engaging in acquisitions and divestitures to position itself for growth, but these transactions carry significant risks and uncertainties [152]. - Investments in new products and services may divert resources and attention, presenting risks that could adversely affect operations and profitability [157]. - The company has recorded significant withdrawal liabilities related to multiemployer pension plans, which could impact financial results and cash flows [149]. - Hosting costs may increase over time, and if subscriber growth requires more capacity, costs could rise disproportionately [134]. Infrastructure and Facilities - The company owns a printing and distribution facility of 570,000 gross square feet located in College Point, N.Y. [173]. - The principal executive offices are located in a headquarters building that consists of approximately 1.54 million gross square feet [172]. Cybersecurity and Technology - The company has developed an information security program to manage cybersecurity risks, which includes technical, administrative, and physical measures [165]. - As of the date of the report, no cybersecurity incidents have had a material adverse effect on the company's business or financial condition [170]. - The company incurred generative AI litigation costs of $10,800, which were not present in the previous year [203].

Financial Data and Key Metrics Changes - In 2024, the company added over 1.1 million digital subscribers, reaching a total of 11.4 million subscribers [6][60] - Digital subscription revenue increased by approximately 14%, while overall revenue grew by about 7% [22][56] - Adjusted operating profit (AOP) grew by approximately 17% year over year to $455 million, with AOP margin expanding by approximately 150 basis points to 17.6% [24][57] - Free cash flow generated in 2024 was approximately $381 million, with $168 million returned to shareholders [58][59] Business Line Data and Key Metrics Changes - Digital subscriber revenue growth accelerated to 16% in Q4, driven by increases in both subscribers and average revenue per user (ARPU) [10][61] - Digital advertising revenue increased by approximately 9.5% to $118 million in Q4 [29][62] - Other revenues, including Wirecutter and licensing, increased approximately 15% to $95 million [30][62] Market Data and Key Metrics Changes - The company ranked first among digital news destinations in time spent per visitor in 2024 [15] - The bundle and multiproduct subscribers now make up approximately 48% of the total subscriber base, with expectations to exceed 50% by the end of next year [27][60] Company Strategy and Development Direction - The company aims to continue building on its accomplishments in 2024, focusing on comprehensive news coverage and innovative formats in video and audio [18][52] - Strategic priorities include enhancing product value, expanding audience engagement, and driving subscriber growth [20][33] - The company is committed to maintaining a disciplined approach to cost while investing in high-quality journalism and digital products [32][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and its ability to deliver healthy growth in subscribers, revenue, and profitability in 2025 [9][42] - The company anticipates continued growth in digital subscription revenues and advertising revenues, despite a challenging ecosystem [32][34] Other Important Information - The quarterly dividend was increased from 13 cents to 18 cents, and a new share repurchase authorization of $350 million was announced [26][58] - The company is focused on maintaining a capital-efficient model, with a majority of AOP converting to free cash flow [24][57] Q&A Session Summary Question: Reflections on long-term targets and business changes - Management expressed confidence in the strategy and its execution, highlighting strong engagement and revenue growth [72][74] Question: Sustainability of bundled ARPU growth - Management indicated that the increase in bundled ARPU reflects the strategy in action and expects continued strength in this area [78] Question: Growing the engaged pool across verticals - Management discussed the potential for growth in audience engagement across various products, emphasizing the importance of high-quality journalism [84][89] Question: Digital advertising rollout and opportunities - Management noted that there are opportunities for growth in both direct sold and programmatic advertising, with a focus on lifestyle products [100][104] Question: Cash and securities balance and potential M&A - Management acknowledged the optionality provided by the strong balance sheet and indicated a disciplined approach to capital allocation [105][108]

Subscriber Growth - The New York Times Company added approximately 350,000 net digital-only subscribers in Q4 2024, bringing the total to 11.43 million subscribers[4] - Average number of digital-only subscribers reached 10.8 million in Q4 2024, up from 9.7 million in Q4 2023[53] - Digital-only subscribers for The Athletic increased to 5,830 in Q4 2024, up from 4,650 in Q4 2023, representing a growth of 25.2% year-over-year[57] Revenue Growth - Digital subscription revenues grew 16.0% year-over-year to $334.9 million, contributing to an overall subscription revenue increase of 8.4% to $466.6 million[11] - Total revenues for Q4 2024 increased 7.5% to $726.6 million compared to $676.2 million in Q4 2023[15] - The New York Times Group revenues grew 6.1% in Q4 2024 to $677.5 million, with subscription revenues increasing 7.6% to $434.4 million[21] - The Athletic revenues grew 29.0% in Q4 2024 to $49.7 million from $38.5 million in Q4 2023, with subscription revenues up 19.8% to $32.2 million[24] Profitability - Operating profit increased 13.6% year-over-year to $146.6 million, with an operating profit margin of 20.2%[4] - Adjusted diluted earnings per share for Q4 2024 was $0.80, a $0.10 increase year-over-year[4] - NYTG adjusted operating profit increased 5.4% to $167.0 million from $158.4 million in Q4 2023, driven by higher digital subscription and advertising revenues[23] - Adjusted operating profit for The Athletic increased to $3.5 million from a loss of $4.4 million in Q4 2023, primarily due to higher digital subscription and advertising revenues[26] Costs and Expenses - Total operating costs increased 6.0% year-over-year to $580.0 million, with adjusted operating costs rising 6.5% to $556.2 million[16] - Total adjusted operating costs for The New York Times Company rose to $556,161,000 in Q4 2024, a 6.5% increase from $522,259,000 in Q4 2023[67] - The Athletic's adjusted operating costs increased by 7.6% to $46,214,000 in Q4 2024, compared to $42,930,000 in Q4 2023[67] Cash Flow and Financial Position - Net cash provided by operating activities in 2024 was $410.5 million, compared to $360.6 million in 2023, while free cash flow increased to $381.3 million from $337.9 million[31] - As of December 31, 2024, the company had cash and marketable securities of $911.9 million, an increase of $202.7 million from $709.2 million a year earlier[30] - The company repurchased 453,080 shares for approximately $24.7 million in Q4 2024, with $155.7 million remaining authorized for repurchases[32] Future Outlook - The company expects digital-only subscription revenues to increase by 14-17% in Q1 2025 compared to Q1 2024, while total subscription revenues are projected to rise by 7-10%[36] - The company continues to focus on product development and marketing, with significant investments in subscriber servicing expenses allocated to The Athletic[61] Special Items and Adjustments - The company reported Generative AI Litigation Costs of $3,208 in Q4 2024 and $10,800 for the full year 2024, which are considered special items[78] - Non-operating retirement costs were excluded from adjusted results to provide better transparency regarding the company's operating performance[73] - The company plans to exclude Generative AI Litigation Costs from future operating performance metrics starting Q1 2024, as they are deemed outside the ordinary course of operations[71] Dividends and Shareholder Returns - The Board approved a $350 million Class A share repurchase program and declared a 5 cent increase in the dividend to $0.18 per share[4] - Dividends declared per share increased by 18.2% to $0.13 in Q4 2024, compared to $0.11 in Q4 2023[46]

[PART I Financial Information](index=4&type=section&id=PART%20I%20Financial%20Information) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents The New York Times Company's unaudited condensed consolidated financial statements for Q3 2024, covering balance sheets, income, equity, and cash flows, with detailed accounting notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 (Unaudited) | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $794,980 | $781,653 | | **Total Assets** | **$2,762,101** | **$2,714,595** | | **Total Current Liabilities** | $589,598 | $611,559 | | **Total Liabilities** | $910,049 | $951,376 | | **Total Stockholders' Equity** | **$1,852,052** | **$1,763,219** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2024 vs Q3 2023 Statement of Operations (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | **Total Revenues** | **$640,178** | **$598,345** | | Subscription | $453,327 | $418,577 | | Advertising | $118,370 | $117,113 | | **Operating Profit** | **$76,727** | **$63,567** | | **Net Income** | **$64,143** | **$53,615** | | **Diluted EPS** | **$0.39** | **$0.32** | Nine Months 2024 vs 2023 Statement of Operations (in thousands, except per share data) | Metric | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | | **Total Revenues** | **$1,859,290** | **$1,749,937** | | Subscription | $1,321,654 | $1,225,709 | | Advertising | $341,244 | $341,124 | | **Operating Profit** | **$204,456** | **$147,242** | | **Net Income** | **$170,100** | **$122,510** | | **Diluted EPS** | **$1.03** | **$0.74** | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) - Comprehensive income attributable to common stockholders was **$72.6 million** for Q3 2024, an increase from **$54.4 million** in Q3 2023 For the first nine months, comprehensive income was **$181.2 million** in 2024, up from **$129.5 million** in 2023[11](index=11&type=chunk) [Condensed Consolidated Statements of Changes In Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20In%20Stockholders'%20Equity) - Total stockholders' equity increased to **$1.852 billion** as of September 30, 2024, from **$1.763 billion** at the end of 2023 The increase was primarily driven by net income of **$170.1 million**, partially offset by dividends paid (**$65.0 million**) and share repurchases (**$60.7 million**)[15](index=15&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for the Nine Months Ended Sep 30 (in thousands) | Cash Flow Category | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | **$258,816** | **$224,100** | | Net cash used in investing activities | ($197,459) | ($97,288) | | Net cash used in financing activities | ($144,641) | ($111,816) | | **Net (decrease)/increase in cash** | **($83,284)** | **$14,996** | [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) - The company operates under two reportable segments: **The New York Times Group ("NYTG")** and **The Athletic**[20](index=20&type=chunk) Revenue Breakdown by Type (Q3 2024 vs Q3 2023, in thousands) | Revenue Type | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Subscription | $453,327 | $418,577 | 8.3% | | Advertising | $118,370 | $117,113 | 1.1% | | Other | $68,481 | $62,655 | 9.3% | | **Total** | **$640,178** | **$598,345** | **7.0%** | Subscription Revenue Breakdown (Q3 2024 vs Q3 2023, in thousands) | Subscription Type | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Digital-only | $322,198 | $282,228 | 14.2% | | Print | $131,129 | $136,349 | -3.8% | | **Total** | **$453,327** | **$418,577** | **8.3%** | Advertising Revenue Breakdown (Q3 2024 vs Q3 2023, in thousands) | Advertising Type | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Digital | $81,564 | $75,001 | 8.8% | | Print | $36,806 | $42,112 | -12.6% | | **Total** | **$118,370** | **$117,113** | **1.1%** | - The company filed a lawsuit against Microsoft and OpenAI on December 27, 2023, for copyright infringement and other violations related to the use of its content in generative AI products[78](index=78&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q3 2024 financial performance, highlighting strong digital-only subscriber and revenue growth, increased operating profit, and analysis of revenue, costs, segment performance, liquidity, and capital resources - Added approximately **260,000** net digital-only subscribers in Q3 2024, reaching a total of **10.47 million** digital-only subscribers[81](index=81&type=chunk) - Total digital-only Average Revenue Per User (ARPU) increased **1.8%** year-over-year to **$9.45**, driven by subscribers graduating from promotional pricing and price increases for tenured subscribers[81](index=81&type=chunk)[93](index=93&type=chunk) Q3 2024 Financial Highlights vs. Q3 2023 | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $640.2M | $598.3M | +7.0% | | Total Subscription Revenues | $453.3M | $418.6M | +8.3% | | Digital-only Subscription Revenues | $322.2M | $282.2M | +14.2% | | Operating Profit | $76.7M | $63.6M | +20.7% | | Adjusted Operating Profit | $104.2M | $89.8M | +16.1% | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Digital-Only Subscribers by Category (in thousands) | Category | Sep 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | | Bundle and multiproduct | 5,120 | 3,790 | | News-only | 2,110 | 3,020 | | Other single-product | 3,240 | 2,600 | | **Total digital-only subscribers** | **10,470** | **9,410** | - Digital advertising revenue increased **8.8%** YoY in Q3 2024, driven by higher open-market programmatic revenues and direct-sold display advertising Print advertising revenue declined **12.6%** YoY, reflecting ongoing secular trends[95](index=95&type=chunk)[96](index=96&type=chunk) - Cost of revenue increased **6.7%** in Q3 2024, primarily due to higher journalism costs (**$14.5 million**) from increased compensation and headcount, as well as higher subscriber servicing and digital content delivery costs[100](index=100&type=chunk) - The Athletic segment reported an adjusted operating profit of **$2.6 million** in Q3 2024, a significant improvement from a loss of **$7.9 million** in Q3 2023, driven by a **29.8%** increase in revenue[112](index=112&type=chunk)[120](index=120&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) - As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling **$820.4 million**[130](index=130&type=chunk) - During the first nine months of 2024, the company repurchased approximately **$60.3 million** of its Class A shares As of September 30, 2024, approximately **$190.2 million** remained under the 2023 share repurchase authorization[130](index=130&type=chunk) Free Cash Flow (Nine Months Ended Sep 30, in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $258,816 | $224,100 | | Less: Capital expenditures | ($21,115) | ($16,539) | | **Free cash flow** | **$237,701** | **$207,561** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes to its market risks compared to the disclosures in its 2023 Annual Report on Form 10-K - There were no material changes in the company's market risks as of September 30, 2024, compared to December 31, 2023[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2024, with no material changes to internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of September 30, 2024[145](index=145&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[146](index=146&type=chunk) [PART II Other Information](index=48&type=section&id=PART%20II%20Other%20Information) [Item 1. Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section discloses the company's legal actions, specifically highlighting the copyright infringement lawsuit against Microsoft and OpenAI regarding generative AI products - The company is pursuing a lawsuit against Microsoft and OpenAI for copyright infringement, unfair competition, and trademark dilution related to their generative AI products[148](index=148&type=chunk) [Item 1A. Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its 2023 Annual Report on Form 10-K - No material changes to risk factors have occurred since the 2023 Annual Report on Form 10-K[149](index=149&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's Q3 2024 share repurchase activities, including shares repurchased and remaining authorization Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | Approx. Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | Jul 2024 | 120,184 | $52.90 | $202,132,000 | | Aug 2024 | 110,582 | $54.00 | $195,861,000 | | Sep 2024 | 110,690 | $54.20 | $190,161,000 | | **Total Q3** | **341,456** | **$53.70** | **$190,161,000** | [Item 5. Other Information](index=48&type=section&id=Item%205.%20Other%20Information) The company reports no adoption or termination of Rule 10b5-1 trading plans by directors or executive officers during Q3 2024 - No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during Q3 2024[152](index=152&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files

Financial Data and Key Metrics Changes - The company reported a 7% increase in overall revenue for Q3 2024, driven by growth in digital subscriptions, digital advertising, affiliate, and licensing revenue, which offset declines in print revenue [15][18] - Adjusted operating profit (AOP) grew by approximately 16% year-over-year, with AOP margin expanding by about 130 basis points to 16.3% [15][19] - Digital-only subscription revenues increased approximately 14% to $322 million, while total subscription revenues grew approximately 8% to $453 million [17][18] Business Line Data and Key Metrics Changes - The company added 260,000 net new digital subscribers in Q3, bringing the total to over 11 million, with bundle and multi-product subscribers accounting for approximately 46% of the total base [7][16] - Digital-only average revenue per user (ARPU) grew 1.8% to $9.45, reflecting successful pricing strategies [17] - Digital advertising revenue increased nearly 9% to $82 million, with total advertising revenues rising approximately 1% to $118 million [11][18] Market Data and Key Metrics Changes - The company experienced strong performance across its lifestyle products, which contributed to the growth in digital advertising revenue [11][26] - The Athletic, part of the company's bundle offering, is gaining traction among sports fans, contributing positively to subscriber engagement and revenue [10][20] Company Strategy and Development Direction - The company aims to become the essential subscription for individuals seeking to engage with the world, focusing on a multi-product portfolio that includes news, games, sports, cooking, and shopping insights [4][5] - A redesign of the New York Times App was launched to enhance user engagement and accessibility to various products [8] - The company is investing in audio and video formats to diversify content delivery and enhance subscriber engagement [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate audience headwinds caused by shifts in the platform landscape, emphasizing the importance of direct relationships with subscribers [5][40] - The company anticipates continued growth in digital subscription revenues for Q4, with expectations of a 14% to 17% increase compared to Q4 2023 [22] - Management acknowledged the potential impact of a union work stoppage on operations but indicated that current guidance incorporates best estimates of these effects [21][41] Other Important Information - The company plans to discontinue supplemental disclosures of subscribers who have entitlements to The Athletic after Q4 2024, integrating these subscribers into total digital-only subscriber disclosures [20] - The company remains focused on long-term revenue growth and margin expansion while managing costs effectively [19][52] Q&A Session Summary Question: Strength in digital advertising and new supply - Management indicated that digital advertising growth stemmed from enhanced ad products in lifestyle offerings and the rollout of new supply across all lifestyle products, including Games and The Athletic [26] Question: Bundle ARPU growth - Management highlighted that the focus is on long-term revenue growth, with confidence in ARPU trajectory due to successful pricing strategies and subscriber engagement [28][29] Question: Net adds with news entitlement - Management noted that the model is designed to harness demand from various sources, with strong engagement metrics indicating effective coverage and innovation in news formats [32][33] Question: Impact of AI on traffic - Management acknowledged that AI products are contributing to audience headwinds but emphasized the strategy to build resilience through high-quality products and direct relationships [40] Question: Subscriber trends and Q4 guidance - Management expressed confidence in the net adds and the value brought by new subscribers, with a positive outlook for Q4 based on strong engagement and revenue growth [44][46] Question: Audience headwinds and platform impact - Management reiterated that platforms are sending less traffic to publishers, but the company's strategy is designed to build resilience and drive direct engagement [50] Question: Competitor challenges and subscriber attraction - Management stated that while they do not take joy in competitors' difficulties, they expect to continue attracting subscribers for various reasons [51] Question: Cost breakdown and unusual movements - Management explained that cost fluctuations are typical in any quarter, emphasizing a long-term focus on sustaining revenue growth while managing costs strategically [52]

Third Quarter 2024 Earnings Presentation November 4, 2024 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 amended. Terms such as "aim," "anticipate," "believe," "confidence," "contemplate," "continue," "conviction," "could," "drive," "estimate," "expect," "forecast, ...

[The New York Times Company Q3 2024 Earnings Report](index=1&type=section&id=The%20New%20York%20Times%20Company%20Reports%20Third-Quarter%202024%20Results) [Key Highlights](index=1&type=section&id=Key%20Highlights) The New York Times Company reported strong Q3 2024 results, characterized by significant growth in digital subscription revenue (+14.2% YoY) and a substantial increase in operating profit (+20.7% YoY). The company surpassed 11 million total subscribers, driven by the addition of 260,000 net new digital-only subscribers, while digital advertising also saw robust growth of 8.8% YoY - Added approximately **260,000** net digital-only subscribers in Q3 2024, bringing the total to **11.09 million** subscribers[2](index=2&type=chunk) Q3 2024 Key Financial Metrics (YoY) | Metric | Value | YoY Change | | :--- | :--- | :--- | | Total Digital-Only ARPU | $9.45 | +1.8% | | Digital Subscription Revenues | $322.2M | +14.2% | | Digital Advertising Revenues | $81.6M | +8.8% | | Operating Profit | $76.7M | +20.7% | | Adjusted Operating Profit | $104.2M | +16.1% | | Diluted EPS | $0.39 | +$0.07 | | Adjusted Diluted EPS | $0.45 | +$0.08 | - Operating costs and adjusted operating costs both increased by **5.4%** year-over-year, driven by higher costs in revenue, sales and marketing, and product development[2](index=2&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Meredith Kopit Levien highlighted the quarter's strong performance, attributing it to progress in becoming an essential subscription for curious individuals. The company surpassed 11 million total subscribers, with over five million now using the bundle or multiple products. This portfolio of news and lifestyle products is seen as key to driving resilient revenue growth across subscriptions, advertising, and licensing - The company's strategy focuses on creating an 'essential subscription' by combining world-class news with premium lifestyle products (e.g., Cooking, Games, The Athletic)[3](index=3&type=chunk) - Management believes the diverse product portfolio makes The Times resilient in a changing media landscape and positions it for future growth and profitability[3](index=3&type=chunk) [Consolidated Financial Performance](index=3&type=section&id=Consolidated%20Financial%20Performance) [Subscriber and ARPU Growth](index=3&type=section&id=Subscriber%20and%20ARPU%20Growth) The company ended Q3 2024 with 11.09 million total subscribers, including 10.47 million digital-only subscribers, a net increase of 260,000 from the previous quarter. Total digital-only ARPU grew 1.8% YoY to $9.45, primarily due to subscribers rolling off promotional pricing and targeted price increases Subscriber Breakdown (as of Q3 2024) | Subscriber Category | Count (millions) | | :--- | :--- | | Total Subscribers | 11.09 | | Total Digital-Only Subscribers | 10.47 | | - Bundle and Multiproduct | 5.12 | | Print Subscribers | 0.62 | - Total digital-only ARPU increased to **$9.45** in Q3 2024, up from **$9.28** in Q3 2023. This growth was driven by subscribers transitioning from promotional to higher prices and price increases for tenured subscribers[4](index=4&type=chunk)[11](index=11&type=chunk) [Revenue Analysis](index=4&type=section&id=Revenue%20Analysis) Total revenues for Q3 2024 increased by 7.0% YoY to $640.2 million. This growth was led by a 14.2% increase in digital subscription revenues and an 8.8% rise in digital advertising revenues, which more than offset a 3.8% decline in print subscription and a 12.6% decline in print advertising revenues Q3 2024 Revenue Breakdown (YoY) | Revenue Stream | Amount (Millions) | YoY Change | | :--- | :--- | :--- | | **Total Revenues** | **$640.2** | **+7.0%** | | Subscription Revenues | $453.3 | +8.3% | | - Digital-Only Subscription | $322.2 | +14.2% | | - Print Subscription | $131.1 | -3.8% | | Advertising Revenues | $118.4 | +1.1% | | - Digital Advertising | $81.6 | +8.8% | | - Print Advertising | $36.8 | -12.6% | | Other Revenues | $68.5 | +9.3% | - The increase in digital advertising was primarily due to higher revenues from open-market programmatic advertising and direct-sold display ads[14](index=14&type=chunk) - Other revenues grew mainly due to higher Wirecutter affiliate referral and licensing revenues[15](index=15&type=chunk) [Operating Costs](index=4&type=section&id=Operating%20Costs) Total operating costs rose 5.4% YoY to $563.5 million, and adjusted operating costs also increased 5.4% to $536.0 million. The increase was primarily driven by higher journalism expenses, subscriber servicing costs, and a 33.8% jump in media expenses for promoting subscriptions Q3 2024 Operating Costs Breakdown (YoY) | Cost Category | Amount (Millions) | YoY Change | | :--- | :--- | :--- | | **Total Operating Costs** | **$563.5** | **+5.4%** | | Adjusted Operating Costs | $536.0 | +5.4% | | Cost of Revenue | $331.8 | +6.7% | | Sales and Marketing | $69.1 | +10.4% | | Product Development | $61.0 | +6.3% | | General and Administrative | $76.2 | -6.9% | - Q3 2024 operating costs included **$4.6 million** in litigation costs related to the lawsuit against Microsoft and OpenAI, which are treated as a special item[6](index=6&type=chunk)[16](index=16&type=chunk) - Media expenses, a component of sales and marketing, increased **33.8%** to **$35.0 million** from **$26.1 million** in Q3 2023[18](index=18&type=chunk) [Profitability and Earnings Per Share](index=1&type=section&id=Profitability%20and%20Earnings%20Per%20Share) The company demonstrated strong profitability growth in Q3 2024, with operating profit increasing 20.7% YoY to $76.7 million and adjusted operating profit rising 16.1% to $104.2 million. Diluted EPS was $0.39, up from $0.32 in the prior year, while adjusted diluted EPS increased to $0.45 from $0.37 Q3 2024 Profitability Metrics (YoY) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Operating Profit | $76.7M | $63.6M | +20.7% | | Operating Profit Margin | 12.0% | 10.6% | +140 bps | | Adjusted Operating Profit | $104.2M | $89.8M | +16.1% | | Adjusted Operating Profit Margin | 16.3% | 15.0% | +130 bps | | Diluted EPS | $0.39 | $0.32 | +$0.07 | | Adjusted Diluted EPS | $0.45 | $0.37 | +$0.08 | - The increase in income tax expense to **$20.9 million** was primarily due to higher pre-tax income in Q3 2024 compared to Q3 2023[30](index=30&type=chunk) [Business Segment Performance](index=6&type=section&id=Business%20Segment%20Performance) [The New York Times Group (NYTG)](index=6&type=section&id=The%20New%20York%20Times%20Group%20(NYTG)) The NYTG segment, which includes the core news product, Cooking, and Games, saw revenues grow 5.7% YoY to $596.0 million. Adjusted operating profit increased 4.0% to $101.5 million, driven by strong digital subscription and advertising growth, which offset declines in print revenues and higher operating costs NYTG Q3 2024 Performance (YoY) | Metric | Amount (Millions) | YoY Change | | :--- | :--- | :--- | | Total Revenues | $596.0 | +5.7% | | - Subscription Revenues | $422.2 | +7.4% | | - Advertising Revenues | $109.3 | +0.6% | | Adjusted Operating Costs | $494.5 | +6.1% | | Adjusted Operating Profit | $101.5 | +4.0% | [The Athletic](index=6&type=section&id=The%20Athletic) The Athletic segment achieved a significant milestone, reporting an adjusted operating profit of $2.6 million, a $10.5 million improvement from a loss of $7.9 million in Q3 2023. This turnaround was driven by a 29.8% increase in revenues to $44.7 million, fueled by subscriber growth and new licensing deals, while adjusted operating costs slightly decreased by 0.6% The Athletic Q3 2024 Performance (YoY) | Metric | Amount (Millions) | YoY Change | | :--- | :--- | :--- | | Total Revenues | $44.7 | +29.8% | | - Subscription Revenues | $31.1 | +21.4% | | - Advertising Revenues | $9.0 | +7.2% | | Adjusted Operating Costs | $42.1 | -0.6% | | Adjusted Operating Profit/(Loss) | $2.6 | +$10.5M | - The decrease in The Athletic's adjusted operating costs was mainly due to lower sales and marketing costs as some media spend was shifted to NYTG for bundle marketing[26](index=26&type=chunk) [Financial Position and Outlook](index=7&type=section&id=Financial%20Position%20and%20Outlook) [Liquidity and Capital Resources](index=7&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained a strong liquidity position, ending Q3 2024 with $820.4 million in cash and marketable securities and no outstanding debt. Free cash flow for the first nine months of 2024 was $237.7 million, up from $207.6 million in the prior year. The company also repurchased $18.3 million of its Class A stock during the quarter - As of September 30, 2024, the Company had cash and marketable securities of **$820.4 million**, with no outstanding borrowings under its **$350 million** credit facility[32](index=32&type=chunk) - Net cash from operating activities for the first nine months of 2024 was **$258.8 million**, and free cash flow was **$237.7 million**[33](index=33&type=chunk)[73](index=73&type=chunk) - The company repurchased **341,456** shares for approximately **$18.3 million** in Q3 2024, with **$183.0 million** remaining under the repurchase authorization[34](index=34&type=chunk) [Company Outlook](index=7&type=section&id=Company%20Outlook) For the fourth quarter of 2024, the company projects continued strong growth in digital-only subscription revenues, expecting an increase of 14-17% YoY. Total subscription revenues are guided to grow 7-9%, while adjusted operating costs are expected to increase by 5-6% Q4 2024 Guidance (vs. Q4 2023) | Metric | Guidance (YoY Change) | | :--- | :--- | | Digital-only subscription revenues | +14% to +17% | | Total subscription revenues | +7% to +9% | | Digital advertising revenues | +High-single-digits to low-double-digits | | Total advertising revenues | +Low-single-digits | | Other revenue | +11% to +13% | | Adjusted operating costs | +5% to +6% | Full-Year 2024 Guidance | Metric | Guidance | | :--- | :--- | | Depreciation and amortization | approx. $80 million | | Interest income and other, net | approx. $35 million | | Capital expenditures | approx. $35 million | [Supplementary Information](index=8&type=section&id=Supplementary%20Information) [Conference Call Information](index=8&type=section&id=Conference%20Call%20Information) The company will host its third-quarter 2024 earnings conference call on Monday, November 4, 2024, at 8:00 a.m. E.T. A live webcast and subsequent archive will be available on the company's investor relations website - The earnings conference call is scheduled for November 4, 2024, at **8:00 a.m. E.T.**[37](index=37&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=10&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This report includes non-GAAP financial measures such as adjusted operating profit, adjusted operating costs, adjusted diluted EPS, and free cash flow. Management uses these to evaluate performance by excluding items like depreciation, amortization, severance, and certain special items (e.g., Generative AI Litigation Costs) to provide a clearer view of underlying business trends. Detailed reconciliations to the most comparable GAAP measures are provided in the exhibits - The company uses non-GAAP measures to supplement GAAP results, believing they provide useful information by excluding items not indicative of ongoing operating activities[42](index=42&type=chunk)[63](index=63&type=chunk) - Beginning in Q1 2024, Generative AI Litigation Costs are treated as a special item and excluded from adjusted results because they are considered discrete, complex, and unusual[6](index=6&type=chunk)[65](index=65&type=chunk) - Detailed reconciliations for adjusted diluted EPS, adjusted operating profit, adjusted operating costs, and free cash flow are available in the report's exhibits[68](index=68&type=chunk)[70](index=70&type=chunk)[71](index=71&type=chunk) [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements regarding the company's future performance and strategy. These statements are based on current expectations and are subject to various risks and uncertainties, including competition, subscriber growth, advertising market dynamics, and economic conditions, which could cause actual results to differ materially. The company does not undertake to update these statements - Forward-looking statements are identified by words like 'guidance,' 'expect,' 'believe,' and 'strategy'[41](index=41&type=chunk) - Key risks include significant competition, ability to grow the subscriber base, advertising revenue fluctuations, and risks associated with generative AI technology[41](index=41&type=chunk)

Financial Performance - Total revenues for Q2 2024 reached $625.1 million, a 5.8% increase from $590.9 million in Q2 2023[14] - Subscription revenues increased to $439.3 million in Q2 2024, up 7.2% from $409.6 million in Q2 2023[14] - Net income for the first six months of 2024 was $106.0 million, compared to $68.9 million for the same period in 2023, representing a 53.5% increase[14] - Operating profit for Q2 2024 was $79.4 million, a 42.3% increase from $55.8 million in Q2 2023[14] - Basic earnings per share for Q2 2024 were $0.40, up from $0.28 in Q2 2023, reflecting a 42.9% increase[14] - Total revenues for the first six months of 2024 were $1.22 billion, a 5.9% increase from $1.15 billion in the same period of 2023[35] - Total adjusted operating profit for the first half of 2024 was $180.8 million, a 23.7% increase from $146.1 million in the same period of 2023[82] Assets and Liabilities - Total assets decreased to $2.67 billion as of June 30, 2024, down from $2.71 billion as of December 31, 2023[9] - Total current liabilities decreased to $543.1 million as of June 30, 2024, compared to $611.6 million as of December 31, 2023, a reduction of 11.1%[12] - Cash and cash equivalents decreased to $222.9 million as of June 30, 2024, down from $289.5 million as of December 31, 2023[9] - Total stockholders' equity as of June 30, 2024, was $1,804,986,000, up from $1,607,220,000 as of June 30, 2023, reflecting a growth of 12.3%[23] - The company’s total liabilities decreased from $1,607,220,000 as of June 30, 2023, to $1,804,986,000 as of June 30, 2024, reflecting a reduction of 12.3%[23] Cash Flow and Dividends - Cash provided by operating activities for the six months ended June 30, 2024, was $133,310,000, compared to $119,782,000 for the same period in 2023, representing an increase of 11.3%[25] - The company declared dividends of $0.13 per share in Q2 2024, compared to $0.11 per share in Q2 2023[14] - Dividends paid in the first half of 2024 totaled $40,032,000, compared to $33,195,000 in the same period of 2023, indicating an increase of 20.5%[25] Revenue Streams - Subscription revenues for Q2 2024 reached $439.3 million, accounting for 70.3% of total revenues, compared to $409.6 million (69.3%) in Q2 2023[35] - Digital-only subscription revenues increased to $304.5 million (69.3% of total subscription revenues) in Q2 2024, up from $269.8 million (65.9%) in Q2 2023[35] - Advertising revenues for Q2 2024 were $119.2 million, representing 19.1% of total revenues, slightly up from $117.8 million (19.8%) in Q2 2023[35] - Digital advertising revenues grew to $79.6 million (66.8% of total advertising revenues) in Q2 2024, compared to $73.8 million (62.7%) in Q2 2023[36] Stock and Compensation - The company repurchased 911,551 Class A shares in the first half of 2024, costing $42,266,000, compared to repurchases of 1,161,017 shares for $43,591,000 in the same period of 2023[25] - Total stock-based compensation expense for Q2 2024 was $17.034 million, an increase of 28.1% from $13.253 million in Q2 2023[78] - Stock-based compensation expense increased to $32,890,000 for the six months ended June 30, 2024, from $24,153,000 in the same period of 2023, marking a rise of 36.1%[25] Legal Matters - The company is involved in various legal actions, including a lawsuit against Microsoft and OpenAI for copyright infringement, seeking monetary and injunctive relief[85] - The company recorded $2,000,000 in litigation-related costs in Q2 2024 related to a lawsuit against Microsoft and OpenAI[57] Taxation - Income tax expense for the second quarter of 2024 was $21.5 million, an increase from $14.4 million in the second quarter of 2023, reflecting a rise of approximately 49.3%[69] - The effective tax rate for the second quarter of 2024 was 24.7%, compared to 23.6% in the same quarter of 2023[69] Pension and Severance - The net periodic pension cost for the second quarter of 2024 was reported as $2,101,000, compared to a cost of $(144,000) for the same period in 2023, indicating a significant increase[67] - The company recognized severance costs of $5,900,000 for the first six months of 2024, an increase from $4,500,000 in the same period of 2023[55] - As of June 30, 2024, the company had a severance liability of $7,200,000, up from $4,400,000 as of December 31, 2023[56] Market Outlook - The company expects to recognize approximately $47 million, $78 million, and $31 million from remaining performance obligations in 2024, 2025, and thereafter through 2028, respectively[37] - The company expects to make contractual contributions of approximately $12 million to the pension plan in 2024, which exceeds the minimum funding requirements[67]