NEW YORK TIMES CO Q4 FY2024 earnings call

2024 Performance - Added over 1.1 million digital subscribers, digital subscription revenue up 14%, strong subscriber engagement led to growth in digital advertising, Wirecutter, and licensing. Adjusted operating profit margin expanded and free cash flow increased. ### Fourth Quarter Highlights - Added 350,000 net new digital subscribers, digital subscriber revenue grew 16%, bundle growth was significant, digital advertising up 9.5%, Wirecutter had a great quarter. ### 2025 Priorities - Continue comprehensively covering important stories, expand video and audio to make reporting more accessible, make each product more valuable, and grow the engaged audience for The Times.

In 2024, The New York Times added over 1.1 million digital subscribers, with digital subscription revenue increasing 14%. In the fourth quarter, 350,000 net new digital subscribers were added, and digital subscriber revenue grew 16% due to increases in subscribers and ARPU. Bundle and multiproduct subscribers make up approximately 48% of total subscribers. Digital-only ARPU grew 4.4% to $9.65. Digital-only subscription revenue in Q4 was $335 million, up ~16%, and total subscription revenues grew ~8% to $467 million. Total advertising revenues in Q4 were $165 million, up ~1%, with digital advertising revenue up ~9.5% to $118 million. Other revenues, including Wirecutter and licensing, increased ~15% to $95 million. Wirecutter had a strong quarter, including its best Cyber Week sales period ever.

In 2025, The Times expects healthy growth in subscribers, revenue, profitability, and free cash flow. For Q1 2025, digital-only subscription revenues are expected to increase 14%-17% compared to Q1 2024, total subscription revenues 7%-10%, digital advertising high single digits, total advertising low single-digit change to low single-digit increase, other revenues mid-single digits, and adjusted operating costs 5%-6%.

Actual results could differ materially due to risks and uncertainties described in the company's 2023 10-Ks and subsequent SEC filings.

Q: Reflect on business change and long-term targets post-analyst day.

A: Meredith Kopit Levien stated they have confidence in their strategy to be the essential subscription and are on the path to achieving midterm targets for subscriber growth and capital returns. Will Bardeen added they believe they're on the path to achieving midterm targets for subscriber growth and capital returns.

Q: Bundled product ARPU growth.

A: Will Bardeen said bundled ARPU growth was driven by bundle step-ups, and they're pleased with how the bundle step-ups are going, expecting sustained growth.

Q: Engaged pool growth and marketing investment.

A: Meredith Kopit Levien said they focus on growing engaged audience across the portfolio, and Will Bardeen stated media investment is ROI-focused with the core of the model being organic subscriber growth.

Q: Digital ads, lifestyle products, and balance sheet optionality.

A: Meredith Kopit Levien said lifestyle products have growth opportunities, advertising has direct and programmatic potential, and the balance sheet provides optionality for strategic opportunities. Will Bardeen added to focus on high return on brand investment into the central subscription strategy and return at least 50% of free cash to shareholders.

Q: Engagement trends post-election and advertising formats.

A: Meredith Kopit Levien said they have strong engagement, continue format innovation in news, games, sports, etc., and have opportunities in various ad formats.

Q: Media expense and traffic surge.

A: Will Bardeen said they have a team focused on ROI, willing to invest more when seeing attractive returns and pull back if not, with investment in Q4 reflecting attractive returns.