Financial Data and Key Metrics Changes - The company reported nearly 10% year-over-year revenue growth, with adjusted operating profit (AOP) increasing approximately 28% and AOP margin expanding by about 280 basis points [14][18] - Free cash flow generated in the first half of the year was approximately $193 million, with $134 million returned to shareholders through share repurchases and dividends [15][16] - Adjusted diluted EPS in Q2 increased by $0.13 to $0.58, driven by higher operating profit and interest income [19] Business Line Data and Key Metrics Changes - Digital subscription revenue grew over 15% in the quarter, with total subscription revenues increasing approximately 10% to $481 million [6][18] - The company added 230,000 net new digital subscribers, bringing the total to approximately 11.9 million, with over 50% of subscribers now on bundled or multiple products [6][17] - Digital advertising revenues increased approximately 19% to $94 million, while total advertising revenues grew more than 12% to $134 million [10][18] Market Data and Key Metrics Changes - The company signed a multiyear deal with Amazon, marking its first agreement centered around generative AI, which is expected to expand its audience reach [11] - Affiliate, licensing, and other revenues increased approximately 6% to $70 million, with Wirecutter affiliate revenues performing well [19] Company Strategy and Development Direction - The company aims to continue growing its subscriber base to 15 million by 2027, focusing on enhancing product accessibility and value [29] - The strategy includes expanding video content and enhancing user engagement across various platforms [9][10] - The company is confident in its ability to navigate a dynamic market environment, emphasizing the importance of building direct relationships with its audience [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to grow despite challenges from big tech companies affecting traffic to publishers [12][44] - The company plans to maintain cost discipline while strategically investing in journalism and product experiences [12][20] - Future guidance includes expectations for continued revenue growth, AOP growth, margin expansion, and strong free cash flow generation [20] Other Important Information - The company is in the early stages of rolling out a new family plan subscription offering, which is expected to enhance subscriber retention and monetization [38] - The company will have only one reportable segment starting next quarter, streamlining its reporting structure [20] Q&A Session Summary Question: Advertising performance and key drivers - Management highlighted the broad marketer appeal of its portfolio, effective targeting with first-party data, and the introduction of new ad products as key drivers of advertising growth [23][24] Question: Amazon licensing deal specifics - The deal was described as providing fair value exchange and control over content use, aligning with the company's long-term strategy [25][26] Question: Subscriber growth towards 15 million - Management reiterated confidence in reaching the 15 million subscriber goal by 2027, citing persistent demand and a growing audience [28][29] Question: Bundle strategy progress - The achievement of 50% bundled subscribers was noted, with plans to continue driving bundle adoption as a growth catalyst [35][36] Question: Traffic headwinds from AI - Management acknowledged ongoing traffic challenges from AI but emphasized resilience through direct audience engagement strategies [44][45] Question: Promotional pricing strategy - The company maintains a consistent promotional pricing strategy to engage subscribers and drive bundle adoption [46][47] Question: AI licensing opportunities - Management expressed openness to future licensing deals, emphasizing the importance of fair value exchange and control over content [54][55]

Financial Performance - Total revenues increased by 7.1% year-over-year, reaching $636 million in Q1 2025 compared to $594 million in Q1 2024[12] - Adjusted operating profit (AOP) grew by 21.9% year-over-year to approximately $93 million in Q1 2025, up from $76 million in Q1 2024[9, 12] - AOP margin increased by approximately 180 basis points year-over-year to 14.6% in Q1 2025[9] - Adjusted diluted earnings per share increased to $0.41 in Q1 2025, compared to $0.31 in Q1 2024, a 32.3% increase[12, 59] - Adjusted operating costs (AOC) grew by 4.9% year-over-year, primarily due to higher cost of revenue, product development, and adjusted general and administrative expenses[9, 40] Subscriber Growth - The company added approximately 250K net digital-only subscribers in Q1 2025, bringing the total subscriber count to 11.66 million[9, 14] - Bundle and multiproduct subscribers now constitute 49% of the company's total subscriber base, an increase from 48% in Q4 2024[9] Revenue Streams - Digital-only subscription revenues increased by 14.4% year-over-year due to growth in both digital subscribers and total digital-only ARPU[9, 28] - Total digital-only average revenue per user (ARPU) increased by 3.6% year-over-year to $9.54[9] - Digital advertising revenues increased by 12.4% year-over-year, driven by strong marketer demand and new advertising supply[9, 35]