NYT New York Times

Harlan Toplitzky Executive Director, IR and Financial Planning & Analysis
Mark Thompson President & CEO
Roland Caputo EVP & CFO
Meredith Kopit Levien EVP & COO
Alexia Quadrani JPMorgan Securities
Craig Huber Huber Research Partners
Douglas Arthur Huber Research Partners
Kannan Venkateshwar Barclays
Vasily Karasyov Cannonball Research
Call transcript
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Good morning, and welcome to The New York Times Company's Fourth Quarter and Full Year 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Harlan Toplitzky, Executive Director of Investor Relations and Financial Planning & Analysis. Please, go ahead.

Harlan Toplitzky

to year York XXXX welcome quarter Company's and full and earnings you, The Times New fourth Thank conference call.

today Roland President Officer. call Chief Executive Vice and the we Chief Thompson, Levien, Mark On Operating and President Meredith Executive Kopit Officer; Chief Caputo, and Vice President Executive Financial Officer have and

forward-looking our I course of the begin, remind actual we during could like Before materially. you that call, and statements to would management results differ will make this

could impact of business risks the uncertainties that XX-K. Some in included XXXX our our and are

the In measures which addition, Thompson. measures reconciliations most non-GAAP I our our call in presentation will turn available GAAP is and to over include financial at to comparable release provided we that, website have Mark press on our earnings With the will

Mark Thompson

Well, at good Digital the Times time York a fourth and The XXXX than quarter Company. months strong following Harlan, XXXX morning quickly kept any with more strong election. a Thanks, the New immediately since subscriptions grew everyone.

digital Our strategy year-over-year advertising exceptional with for growth. off paying is

products, to XXXX let's digital performing balance adjusted quarter cost were quarter first, an new on and morning, an digital shortly. for the XXX,XXX the basis detail. such excellently. progress which made remarks much side. of in so in goal account XXXX we'll I'll five-year to when QX first, digital the to a our One like-for-like subscriptions our core the added phrase Cooking our extra this that revenue are digital We use smaller target; the news turn for new don't In was XXX,XXX we week. and But our comparing that set revenue on products Crosswords. ambitious from adjustment look Indeed, ourselves make of We quarter. at XXXX we've Our note that in doubling XX-week

year, broad-based and ago. two a at than suggests part the on our far strong estimated the end of is politics including elections in quarter surge quarter, subscriptions. the subscription like-for-like the a Cooking additions less for showing, the mid-term years compared that of print and in subscription present fourth total XXXX. By grew behavior including X.X basis had Although, revenue week-to-week XX% On million we reliant momentum this subscriptions, digital and the moment a total and X.X the Crosswords played digital audience million to of the

On basis, the subscription same revenue X%. grew total

ever. brands, us time exposure digital in than With print. in Now Indeed, revenue approach first we've fourth large market taken scale advertising a year-over-year services, print focus the on suite a relatively growing advertising XX% and a low Digital compared publishers. leading like-for-like creative XX% a approach of different many total news off exceeded partnerships for programmatic. the on represented advertising with advertising digital revenue to of world's the paid a This the quarter, quarter other open with basis. advertising XX% digital to approximately for from to

The the to revenue, this a once New which moment of our print digital the advertising, share Times proportions significant principal the but expect was quarters of smallest full revenue still Times. company's is future the XXXX, in where streams. transition lion's see We of QX York In relative the reverse, was

the nearly X%; total But after same XXXX. in the advertising revenue revenue print basis subscription QX side significant this meant was where on XX% by on was print print a strength flat on like-for-like deterioration fell of the to a While advertising compared grew declined year-over-year only like-for-like a modestly, digital advertising the sequential basis. period

we character high in is of our in digital may in in a of reliant quarter-to-quarter means small some QX the you'll still continue Although to guiding digital see particular, relatively XXXX, on that advertising we're results. number as business hear, emerging growth our variability healthy advertising value model, deals,

report secondly, of we digital XXXX. revenue million we're revenue So the higher of by milestone. XXXX week words, In and now than whole way million already revenue We'll total QX to to basis, in $XXX digital last million for than in end basis like-for-like The grew million of on the other Adjusted third by growth end we're for million more grew a as like-for-like quarter the were $XXX the a around reasons basis, profit $XXX that generated a by fact play was public $XXX by XXXX, increased XX%. XXXX on to advertising year. on first more like-for-like in in a we've set on year X-year. of million since the beyond marketing. fall XXXX $XX same that that we a Times last costs, to set for challenge XXXX. for XX% main ourselves compared company the total progress a goal, Total advertising decided target. quarter two the the in ourselves digital The whole to operating nearly taking Total of mark revenue. and In $XX XXXX; continue this three the first, company, X-year in The achieving we encouraged for our And extra million especially doubling but for was the pure $XXX by new as quarters advertising revenues the year-over-year to

is million time is to decided million large digital grow the together years of our analysis success setting The number base States recent ambition our we've larger by subscribers reason around XX led world the our ultimate in exceeding of by realistic but There stretching goal opportunity our subscriber could market but us with scaling be over the the far just target, to at XXXX. the Our reset XX of so the business has in believe in could period. that right subscriptions and subscription United how least ourselves our for mark

about we new go will how journalism. meeting First, goal? this So

and to and very essential still of is was position new their model project XXXX, of best but million growing subscribers. XXXX. [ph] brand offer our of expansion to in will need stories healthily, high engaging we continued Times really hiring. to than coordinated those new domestically further world. a journalism for to investment most goal in foundation amongst new York broaden which new lives, breadth we the The Times those who of Times that's The a reporting, also the further and important journalistic that, quality to further telling part and so audiences in the converting to Our true million In only opinion, subscriber and added we've not that both into to an we staff, recognized strategy, alone, X,XXX achieve the audiences XXX journalism watermark to positions, the journalists the make targeted journalism of why our want of paying To plus made multimedia XX But our implied have ways Indeed, visual audio, relations in around and enhance expert XX deepen we world. more especially journalism why users, the Times. our world, extraordinary significant To in high-quality consistently currently mission, being we primary investigative the explore continue is support The journalism; year in New and about milestone, Times hit and more this is around our every journalism become already today day. in invested widely the our Last subscription more and leading more our The of digital to committed is will a newsroom. the as our include reason on Times subscription them

the in of the product accelerating investment model. medium-term So growth in with we an will intention marketing make also additional digital and of

Next, innovation podcast the a XXXX, Fall, the multimedia back way transformed have creativity New about -- Times. people innovation. breakthroughs From way The for people the think hit in and Daily, to now York smash Snow

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we As our growth. believe the there field. still progress you've considerable subscription to me despite to currently say scope date, in accelerate multiple tests have is we Indeed, further heard before,

in QX being to to scale maintain we subsequent very margin, business confirm, we're remaining to I shortly Now, strongly focused have impact to investments that But some record. unusual on remain able cost expect we digital emphasize as these and total having while a in determined will profitable, we're want quarters. that also on rapidly Ronald and

investment an fuel have future We that digital additional to now subscriptions through expansions. accelerate opportunity will margin further

a field will this year. the We subscribers test price rise also to digital in early begin of for part

XXXX, is launch high-quality this pay home Although model has delivery the for adjusting of price of to increase if understand confident many of sometimes years since print. the product the we the We're prices first journalism experience why that to in of itself our reflect be will increase subscribers flourish. to our changing economics digital the the will for also paid have journalism

question turn let capital of the to Finally, reserve. me

This in conserving opportunities but allocation recent flexibility conservative risks in approach ongoing want sheet. to balance maximum capital has we maintain we know, regarding is you our we for range to transformation. it's the of a long for our navigate as not because own Board As sake, believe business and opted because cash years, our

still the we're scale our on that approved and share the and share. the As scope investments increase total the we've a sub-model, we're could us exploring has progress clearly $X.XX to light Board still Nonetheless, that, help modest business made some to for to investment you've further of Directors existing per effective in faster. growth heard, $X.XX talking accelerate digital the dividend a digital lookout the of of

Ronald. As expect, adjustments use further we is Board rule to continue sheet the not to the and out will the details the under in best balance the you'd future. do of the capital with dividend review, quarter now close keep But and of

Roland Caputo

Thank good you, and morning Mark, everyone.

a said, this strong for company. the result represents Mark quarter As

As exclude today, included XX-week the the as XX weeks we in a impact Mark week. distributed XXXX week estimated extra a and XX-week reports fourth quarter extra earnings release press fiscal the comment The weeks XX on revenues to XXXX. might revenue an we'll and therefore morning Like contained both, of basis. XXXX on of opposed reminder, this

versus made impact the comparisons be all earnings XXXX is this extra diluted the cost for below was XX-weeks therefore, the week of However, full expenses Adjusted $XX share We lower digital and only reported $X.XX revenue adjusted in prior $XX estimating to in the per of operating quarter $X.XX profitability the million and fourth expense. in difficult quarter, more year. with million. XX% the the with an increased approximately compared same XXXX the which $XXX revenues of quarter by is period approximately subscription in million. in quarter X% Total subscription growing will profit

price. ARPU were subscribers side, with daily Quarterly due On continued prior quarter the was the of week subscribers and promotional packages. was significantly moving prior circulation on offers in delivery the number expensive the to of ended Total as of all quarter. a periods subscription the graduated to revenues shift in promotion circulation prior than acquired delivery per and subscribers pressure X.X%. larger year number declines the magnified less during $X This down while newly was offer the number X.X% declined which frequent both, the as less existing subscriptions, full digital approximately sales by in whose Sunday the compared the home quarter, and of therefore, X.X% well in print declined as downward market to promotional compared year to declined subscription

pressure news additions which on a that they ARPU continue expect continued where promotional a digital promotion I subscription in yield a to with will wanted and the quarter, six XXXX. to number limited put offer, product. the to in note customers Google in strong downward quarter, our cross ran other free net that promotional months the fourth tests subscription of more We provided aggressive their to

by growing in costs a revenue to operating mill, GAAP project million XX% overall and production from print at that practice, recorded are Paper recommendation for as our X% in which and digital result We of subscriptions of operated promotion calendared Total we quarter be the one time previously is they recent paid website, net today, and not in event as the to special additional the only in the review headquarters income their growth and increased to in our best floors XXX,XXX our reconfiguration adjusted building. both, Industries, additions the the the down product and advertising to digital operating whine $XX from partnership costs Both represents from driven news to result our these well by revenue luxury to an and complete. counted platforms rental affiliate our business, As a advertising non-capitalizable in versus direct-sold compared largely of Wirecutter, the increase our $XX and gain events costs, convert reporting paper in make the financial now to commercial will live services printing exploration. subscriptions advertising and related that expenses services. free media of headquarters XX% printing in are primarily X%. partially rental XXXX, increased revenues with the the a the advertising growth was Madison growth lower million quarter. print building as a print super This due $X.X of growth by grew reflected products, The driven advertising to our to distribution items was in memory advertising in The fourth offset our XX% investment revenue available grew two is from costs the growing operations and partially to business, elect promotional were our services our income. newspaper. declining and promote Newsday in our categories, digital of by declines Other space on substantially and suite creative business in marketing by and which result creative offset XXXX advocacy, and fourth in books. Cost commercial our related products, more quarter; [ph] charge related growth brands expense million, of quarter principally mainly

plans effective underfunded end and at the pension plans tax of approximately of fourth million the year the Our were for $XX was rate The the our approximately was funded. XX%. qualified balance quarter XX%

capital to building, headquarters our expect sheet, fourth of million increased obligations, lease at balance debt repaid sale marketable principally quarter and were leaseback of approximately $XX the securities to be Moving cash XXXX $XXX the ending the during related balance quarter by will the million. we $XXX Total our in million. and which

to printing first to XXXX, expected mid-teens. low me XXXX. expected Let conclude to of a first Total are quarter first digital-only with our expected in first compared Other continue revenues is growth in low revenues the compared revenues to increase with are the with our in to outlook XXXX revenue subscription Overall, advertising of XX% mid-teens. costs XXXX digits growth as to subscription in for quarter the due quarter quarter commercial the digits and journalism. the adjusted decrease operating increase increase approximately the increase increase invest to mid-single are compared are in the to largely Operating XX%, mid-single the of of with and subscription operations. drivers the with expected advertising of and we digital marketing, to approximately to product, in digital expected expected costs

quarter the no to in costs. happy questions. operations commercial up against with it In significant that, we're And XXXX addition, fully comping and printing are for scaled our with open


The first Quadrani JPMorgan. comes Instructions] Alexia question [Operator with from

Alexia Quadrani

have and from think more more sort the maybe really Can side? out behind we here. data overall promotional My drivers you much maybe guys a around this work you is and more guess events really How think news with product it? you of intense can data or on analytical intensive do the color I correlated do activity? of you a on doing much sort than on lot impressive just been quarter. is in much in the you first strength see question How sub-growth the is spiked bit the have digital is provide the the how

Mark Thompson

I Good let Morning, that. answer Meredith think Alexia, I'll

Meredith Kopit Levien

with and driven to news things -- now journalists response a our be both, everything single that of think starts continues combination paying a think by it story, and I on I continues it's and I but strong one cycle, a worth not going to for. in very to appear think think albeit news be and I and is the different

I the first think reason. that's biggest and the probably

experimentation takes We're I be about on how introductory What the lot to from positive an and really very and the everything very somebody we've A to also to aspect we've good. there a half we results the of saying third messaging a every we of of that deploy the end more and seeing the think still steps but time from funnel; room and gotten The page, as to a that getting the in we're real get better to is it's of we flow; offer, is things continues I the work more conversion Week work through get of the and precise their it news It's period through quarter. done from year from there. Dollar better the it we're better fourth of been offer load when lot the about number it. pay of on by the and of second how present those deploy mean all

quite our we're change getting cycle spend and spend efficiently. direct of we're spending high -- mark I -- into And to think new on response. that do then more better those places moments level brand so all in able the at into also demand, strong of and works,

Mark Thompson

come good add now we also-- which stories a The I and point you you the if data of we've that in see in both indicators breakthrough, to come may from breaks, rest media also I Times believe which driving both the being is about Times talked that Times perhaps And that find sometime almost from one only And we of journalism, users, mean, bit investigative they subscribers. but the other the other really pieces that The our they're model. we've to sense, work our finding to the like good new across are brand, that makes of on well convert one investing know, good important more is; and effort also the can you just got, also Times for use The to are of awareness our getting distinctive it for that marketing been potentially investigative are regular brand The actually they which think the reasons every much users if for so have

Alexia Quadrani

about of I Dollar ask promotions -- to that come And well few saying now don't of guide but would those still point, August; sound there I I the and I been guess to driver, if a of is that a particular you specific think term for when that's like is specifically that's Week digital And just going not more so The from guess highlight so it's begins churn; was don't we in benefit doesn't and this fair? which then assume -- will stable. said elections I I'm in event off. to I that you there takeaway Is read see I when subs I QX, months, started some at mid-term elevate nothing one if -- so also the sort can is need least sort you back falling historically continue, promotion that case my the you A a believe know it's forward [ph]. my assuming

Mark Thompson

had more good to good saw Week have what good think good mid-term, get we A conversion elections. events a is, wouldn't we numbers the But we're way Meredith in cohort. these had saying we good midterms the and saw I very subscriber the rotate through and now. on audiences, go the and like we'll address a I churn me mid-terms, mid-terms; over We Let one at then Dollar

seems with generate it I'm back almost kind in sure as time of going too, makes our I we me can XXXX which results efforts, our own we're to our And journalism much as momentum more easier do this move journalism not dial be through set-piece think plenty model shown and we've trying now are but any well. a going what to be for the can of our that are there to working some to to own things events. and

Meredith Tobit Levin

think think opened to gotten at in right also few better access a big and test, successful I then we've effort mid-terms I and around where in was US the an more up [ph] now meter and drive whole that's the log a well of which in in we've typing experiment year our the for around gone days the the half very moments registration I model key with we think gearing so also continue second events; through going we there. of to that's

right to in the be then actually X months impact. someone on we've to got A subscribing, Dollar bear very they're and started first is On the fourth specifically control cohort; them we're lot of think go an though are I might when actually better and event On getting further, right but off, back still actually it the which And up continues back room do of continues offer tooling go our The we're on they question engage but alongside broadly domestic years, even the beginning the say look late -- at of is second I of so getting and X.X can always point quarter, our on XX% almost a August. forget and the if you was on sort it data, out that we're that have the of Times, that set be as been would a cohort retaining there cohorts we're And in doing of all A little news Dollar we A quarter that the at of for an still end churn we to the is that get even month that. the I about you we've optimistic first they months when tell thing we're the on I and aggressively, -- last months -- and Week, so States like Dollar Week XX so A introductory I'll because in broadly, answer have and to starting what broadly incredibly retention doing churn at United also say A churn has been work back get and best would launched A you people it engage. now to take on into overall. and my engagement on the in same of work to there. most quarter X subscriptions the broadly, churn think going to it's the we cohort-by-cohort focused the to to much good for story outside more we're Week, sort I that X of and those for

engage flow the interesting the on Dollar and about their many us on mobile, pay really going that going folks mobile matters. and of through therefore are of coming things the to coming One A expectation to in A on is them Week they're

So we're to doing and engagement broadly member stimulate a in [ph]. wrap a on lot


with from question John next comes The Evercore. [ph]

Unidentified Analyst

I lot a just target. long-term your question. two for ask Thanks on want the subscriber to new

Where going the to is what maybe you've contribution the years just that sort where mix going and the international the even. $XX of from to is been is, from million we've contemplated pay get how million implies geographically? wondering changes and the an long-term. of the last that subscriber going, one subscribers over then wall if it acceleration you're to the seeing So number couple -- the if from $XX is And possible? where number. second I'm

Meredith Tobit Levin

more we I'll States which from for of relevant of think one prior of were I United news very to I the I'll a think giant Times United -- uptick, across dominant, quite we're still global for is opportunity. We to Then the I as a bit international start subscribers question York we actually and outside a doing broadly of about on that see to think and continue the a this think are and faster, The relevant coming and were our periods, two one of subscriptions first. then we big shouldn't the domestic second saw believe under-think were handful an audience XX% That be bit the work there New we answer in years. we of now a opportunity be providers, $XX said, little outside a million, even is the bit dominant and States. year who

I really are States. get sort of subscription model think we The United to year the around but on beginning in hands here of in the and world, our States first our United the gears

you the us and log-in access model, I for given And of you brings the say XXXX, month. to launched product a launch I think exchange you're and essentially still use both, a go in more back you testing in I large. I Times, particularly, more So January. portion in first thinking in is think meter second domestically and push you features we a the to again pay model? of in tests, the quite we're log-in to question had and Australia get broadly the quarter, but which see access the United levels registration in different more going getting at in States, of if Canada the early first version increasingly sweepings new quite and have hard, have U.S. the it's those deeper the New your it's same-ish think get we to same, exchange model to and year where to XX half continue and is had stories, XX and very will we we series access stores. registration domestically how The of if now registration a New for in then stories, we aggressive getting in internationally York buy of tests launched access subscription and outside been -- the for would that opportunity Times. to of tests and want to we you And population me kinds test fourth and law last test probably sort we began and December, access inside are And the aspects scaled In been in are States, launch to And different that United a York similar opportunity, of we of overtime, about

would this I the continue relatively are it's to still us early, about very hear So promising. results you'll talk early say but

Mark Thompson

to start -- right to John. go the of question, want your I But back the of

service more at right. model putting It's using I journalism. digital is experienced very to more resources on and the say, carry improving about direct optimizing buyers hit the we product and you've will and way about model if all us effectively about and the down it's XXXX. journey, the not acceleration and market, the the pay think to in quite brand the we more on both getting giving further our support the mean, current engagement rate, marketing XX that's You're with model, customer But Hitting to and our marketing. conversion heard smarter target money growing million we a by now. quickly

into not make think So additional for excessive we going a some works. but sure further resources your plan plan this is acceleration with

Meredith Tobit Levin

that we about and the the of journalism most continue talked of that, continue And differentiation aspect to investment the do Mark I I'll add be will the and think to model. important that. in journalism to

experience people potentially of I also talk of get period of us form who to getting the itself as product a I'm experience, the more described; mean those work with lot people years over journalism more to amount that habit working large we have of the we to we're make much about get the already would about product very itself, to beginning and Beyond engine. to I to to a and habit say that the a frankly, opportunity better to is to certainly functionality. we're fair get functionality think that ways a just pay features which far, there a you And talking the this that in features years and that it journey user whole experience a enabled to come to of the deeply. make to stay do couple next programming audience X I when far talking the the I engine for biggest association customer I've engage in with engage opportunity engine subscribers. and I next and better have much And mean, and and deliberate. form the about


next The question Research from Huber comes Huber Craig was Partners

Craig Huber

early the quarter? and maybe say timing the the if talk heard you I on, increase Can the you start, first that mentioned about right about digital-only magnitude the you the In was for subs. of price did you

Meredith Tobit Levin

early in I going remarks said this begin was rise. right of this a to think what Mark to year that and part the we're approach what price the test is to his year

and our that products test playing prices launch that the worth The and scale of I the to think and do said, so, bigger willing to with with -- -- is model, in intend us we do who we there to their not begin and sort know with as the -- it's opportunity since to test our role think both need But formula pay what the it's noting a think to you the itself, that we we journalism and is add product are higher invest of subscriptions to product people are and Times, to a experience more we to have people, to expect make to continue -- raised from a do with lives, our and saying, that continue value believe people's experience experience and journalism to years of continue invest particularly from to print at that we our digital New for in lot I in it price. X.X can work an way invest the worth in see in Mark worth the we know in look, sides number as to into product a to investment can we York so that. there on is journalism and we print also our we of rate right

Craig Huber

I'm to thinking raise range you're XX%... like a what sorry, of is price, maybe talking there about we're

Mark Thompson

I forward mean it. straight really about be to

rise apply them. how we is things price and the the will of level to One of testing be

and we've yet. subscribers done testing, nothing some answer -- to both you is, So our to the we'll have more but once say

Craig Huber

ad And my second impressive revenue question very is, growth. you always had digital

digital how free, of people your paying the that site roughly, down much versus for come you from the comes what's For ad there? do revenue the think subscribers break on year, of sort

Meredith Tobit Levin

the a I high it business gas X.X form on has at business thematically, high and look that between gas -- that think think this users successful stream can't use That us, sort us, day XXX the same to subscribers. ad of back year. you first, who that's all and a digital the somewhere like because what proved subscription tank is growing advertising engaged we a was million yet this and octane day who able multi-revenue great real which question and monetize give and of tank a being affinity emotional we but being key very them the XXX who we're not only so subscription a brand, of of the I a the deeply feel we business are people I guide with time. those who the business to million in and after habit to the was answer would our connections in broadly having and you year of I depending and the was comes say million octane said, sharp pay month that

Mark Thompson

of to The lots who because account become got but sample high growing is think pay that model walls that advertising model subscribers turn and revenue, out some The by get But for very-- them subscribers number harder it's and digital of a true by of they our also Times and a The they also we have advantages; of journalism engage, of the people we letting digital of level the for So to it's don't subscribers. people large the therefore, them they many Times engagement. at free, of look biggest pages faster porosity the of to it's true kind the our colleagues say that than the of product. break pay and advertising because biggest our allows for of used a numbers lot get of put of ultimately the attracted competitors the value journalism single

We advertising, for health that significant reasons porous of doesn't a of to go sense mission it for digital very as across So super both total well as part pay our mean and a marketing subscribers should for but hard makes wall, we model. our the revenue pretty have subscriptions that long-term believe comes funnel. from simply a

Craig Huber

the question if think last basis costs. year how a maybe might much know My you I is, out being or that talked how think a if marketing of us you I roughly first maybe this took overall number give the costs out for you be on in ask be as much XX%; percentage you cost Can could up differently quarter? sense up? increase about marketing you

Roland Caputo

the of of XX% it; of printing really, is not is think increase; and number give marketing part of costs but the on the to you've way think percentage going a increase comping large zero the about that piece up of But large good marketing, news is product it's last basically printing. of printing increase. the first a I'm the together combination that's chunk but year, explaining you commercial I exact commercial made which commercial a so the an in quarter, is got about you

that and the the here our money company. drive believe subscription profitability going of on. the the things we're are message long-term are Those to we basically are growth to So going the benefit is business thing spending


Research comes question next Arthur Partners The with from Huber Doug

Douglas Arthur

in mean, should follow-up subs this XX % rate marketing expect put step to terms infinitum So, I'd question investment the I out to not some a do or on goal that's a road, or -- out XX down of like probably the next four here in we envision up, or when I you you just ad the of six? that. continue million one. mean leveling killing

Meredith Tobit Levin

a that's I I scale question. go we don't expect up subscriptions. see in marketing think Yes, as think important costs you good way a to should linear an and

about back the over model important in important think role I marketing money is last now build haul. more to that we going much we other years than think the has and us couple very to that, pays few a continue time of Two in spending point one; think last to years. say you play do is I have work, over that that, role I brand longer to you'll continue very and upper but do relationships are more will the probably more today that played see engagement horizon, the build funnel a any long or a certainly work over and of that to things

goes increased that we think of do can our Weekly, best as invest the think the play all role, what also that as of put into in I today in products product of the The like our lot goes that be doing where and we begins story, to in with in efficient the itself marketing that cues a story explain the time the it, Daily Daily, the on of sort we some have to I and journalism, that can we're more the that we're of that The is spend. able example itself spend journalism marketing journalism I we think the into The the more [ph] itself; is

thing investment stay. getting to form it pay just think the the second by becomes itself journey, that experience, the both I -- about as programming product Roland as the say which a of engine better I itself, Mark mean that, people now I habit, product talked about user more into to that and into the a customer have goes and and putting the mentioned that

is think us. and to come marketing less to on there get to sort I people of pay a overtime of less pressure to need

already them going right pay there million of create is are they of to just big that so out Now X.X us front only an back front very where us; come opportunity have people and in to in audience. go figure, million us XXX we don't us, already to a of

Mark Thompson

in going the engagement way entire entire is investment should product has Doug, to a in chunk -- engaging fundamentally a more the which a making think steeper. point, cost the improve curve coefficients conversion a opportunity and that in sense stickier of really success This it one of which is there I fundamental were, make in as important a --

unlike, never how of and a continuous And is that that converts the well geometry, product expense kind an expense you which this coefficients a engages attempt out for like to and kind of of direct description. people example, a and generation, get so change fundamental of the in -- is marketing make

Douglas Arthur

going back the -- in pretty terms big in to And which the big in have play may million revenue $XX,XXX not that down QX into a mean Crosswords, is testing at contributor a What $XX I then, number. figure, assume would you road? or I here that come sub-growth obviously the the you're again, other and $XX Cooking but million, products looking

Meredith Kopit Levien


broadly that me Let of first. specific be specifically, and sort I'll address and

would sense into years fourth mature We sort Cooking, the far a out was say the on both formats I are on of you both, And to Cooking that I -- served called market On first the with commercial reason continue. just product lot products, better real we've that it how has for we're by quarter pleased than lives, product I for launched there quarter just model and -- the think Bee, -- see get very a that for itself is running now Crosswords I'm new I has see out Cooking, puzzles effort Spelling quarter; you products. In Crosswords. play model, upper when people, a Cooking, are and launched that. why so mid-funnel think we I seen which I the a test I in of brand, funnel And we've opportunity we had pay coming our in would sorry, one -- a of say that room started, think around new got room and product games seeing pay if we lookout no bigger those it's momentum and role you was of ever and the games, on on think won't best in growth relatively Crosswords. a we're second of in relatively would we point which say Cooking quarter cooking, and that we're and a is new curious real X.X first would so Crosswords, we've Cooking, getting best game a watching to on I people's running the got haven't yet intelligent will games, much

keep to asking what really you're do is, more intend market? The putting about think yes. I the we and products is answer new into

the concurrency the where the -- parenting a in a number we play a have and there in Times there, beta of York around in time exploration habits, We The which where people our products on to has and out there of is beta year launched is first into real market the New year. need. of get fire will with which half last We'll permission we other and States in user brands have daily this terms get irons the

products and that way would $XX it said, large it's our other only an broadly all begun for words, think just in get All to digital in I lives; to just question the large, I subscription underestimate product. people we increasingly internationally, million, around our we've paying more news for the very and role your domestically market our journalism, core of and we think our to and particularly, that play power of journalism about not is people's think the

core play product wrong news people's Our can lives.


question The Venkateshwar Barclays. Kannan from comes next with

Kannan Venkateshwar

I for is, December time was some in a a a a test per week and kind earning of run promotion there couple; or actually $X for was promotion. week a was he think $X I first there have obviously

maybe to you how and And scale? can the follow-up between two the the compare contrast I'll first help that's If promotions understand elasticity that. is those just tend after us and how they And one.

Meredith Kopit Levien

launched to quarter, our more sale and what we a lot I to month. week the in quarter around conversion potentially, a of is the were of sustained for drive running our of tend we of actually the $X of dropped the remember A quarter, a for trying quarter last roughly think how and the there and time week days fourth non-sale do XX equivalent Dollar it only to mean periods, some using of of when language periods well, describe launched our sort you the correlate in to A that sales the is we we it's period some which a XX%. faring fourth periods we third lot I'm in back third $X in the Week, it -- I of tweaking ultimately

to I world do I If is going as do that so little role that's that you as because we'll you're would can probably sale. with in something following on occasionally, [indiscernible]. But say we much one-day about the it sales useful think be a

Roland Caputo

in like to and the per to the investment just months. subscription acquisition rate the that in at to we able X Dollar far I'd this we get about is of lifetime the excess retention subscribers tracking we're media rate return when mentioned is such hurdle looking we're have is as The bring But and at on tape before, dollars. of rate, thus platform to the value increment And and we're market, X many or makes we the in looking per retention of dollar more A up our the the Week add such promotion tape on spend amount new that that it such

Kannan Venkateshwar

we that to at of evolves and marketing and we year, of through how more terms overtime? I in Investment I Guide the go spend cadence and some about this just is quarter this then how the the point, of should is mean pick-up second year you over understand, a The course mound then as there marketing normalizes wanted think

Roland Caputo


So, will of -- out as investing how investment investment of it's marketing, so the and I components years change through it's we from it's kind that in journalism, so continue the product ratio any that to mean that spend develops our the heavy quarter product, circle of quarter-to-quarter, the of -- we with and mentioned as in can't as readers the we'll for trilogy we engagement but and get year before guide the few increases kind will other investing change of expect guidance investment. the items give much the one. you've the you I the marketing those have us don't those overtime, we've our of the to Eventually believe add aspects last to much seen ratios that on benefit as so that and marketing

not to we the marketing do spend So to expect increase clearly? continue

Mark Thompson


new for giving without proportions decide precise any a more we terms, think of little is fairly them, relatively takes engineer's that quickly, rather obvious there I spend. the which time. is the another business marketing He harming bit new commenced point

is phasing of of a sort there natural will how this So appear.

Kannan Venkateshwar

kind Mark, with promotions, Dollar perspective; a about of obviously, point. lot when testing Week higher of is same think at lastly your And there strategy had -- pricing you time and the you're success the from price A you've A a

change… Will when term we the about the So about how you product, should longer you think pricing structure? think

Mark Thompson

to rising users move with in already to reflect about services; attract of think then and to as can should a and richer at become exploit rising curve And to can to Crosswords use and introductory we Cooking trying work, low costs demand points. being us a never get bundling better crucially, being we But effectively where customers but relationship higher we packages talked it price prices with think we we it and think, customers. exploited people engaged overtime prices. to relatively additional better at I also I as

mainly to focused hard at coming but of also number out I on customers yield. ways to grow So we're scale the we're figure with significantly how to we're we're about what with of sure to trying do; answers -- trying time mean clearly maximizing customers we're same up by as also scaling intelligent that make thinking reasonably aggregate quickly on yields of trying even the the

we're to we focused that we're customer's. my So especially using that remarks, and have to well sure as at long-term the model, margin, hard available yield already a of as on bundling us maximize and and can make as medium like to I price scale make simple the and how leavers in margin, looking on sure said


question Karasyov from Cannonball comes with Research. The Vasily

Vasily Karasyov

us contributing And first how grow? the The advertising it [indiscernible], the monetization? you can growing? And be of you is there; the an ask a What how then business is model the idea may about to usage can is question here? about And to give an wanted much Daily How far it's base I you how underappreciated think it the is? it part digital monetization growth? what

Meredith Kopit Levien

very we it to was strong so product say growing. is it. team, with the do the most it I may investing podcast -- it's audience -- I us getting still thing in making think I think think First able and is and topics a think better, is, more it is a still that that America product year; the in last keep move you the downloaded the range across audience to And showing more and see of product has I keeps

close who milestone. terms it's ever think to I daily in more As great reaching had times to The brand to is I is we're so say very the X of very, also and to listening daily listeners that's my weekday that life; favorite X character well paper subscribers, I there the about is new listeners, think than Daily long now are the a think thing million audience, That into million of and a audiences. over for

this but audience the mentioned under Times. all of about I the sort three more than and XX, women quarters so already of disproportionately audiences is new think mentioned; is audience so Mark to that The is bringing female

The because launched that it to track The to part And The grows as audio and economics, ad have I of can we're into driver scaling audience I essentially good dailies; market we higher of we be daily time, reporter to Caliphate Daily, and ad a continue and large to now trail that, Daily Daily [ph] lives. as can see of Times; we've as Times so last to love The that inspiration Daily build New the just when all of the thus thing know, it more if into a daily we listener. actually more which you Daily of into podcasting interest. then there an it to also begin to was other support the of like of very the so on grow ad beginning generally, say make Times [ph], seen out and Weekly, a is podcasts, be sold to we that us, CPM you was and feed marketing hit, vehicle successful launch inside business, York specifically we our our record for it about and the the large terrorism; way show, The Daily York a now a minimally can us far Rukhmini launched the podcast with, with actually business. around of do would a of but we our our special audience say ways because to Daily been charge new I'll -- the the subscription they a survey series beginning to and can -- aggressive about organic if what subscription ISIS people's so is/or is we instant it get a yet has it The just in of the we with way The which to daily high-quality think is deep you'll and On all The and a is of sort Daily. the I'll find seen new explored, phenomenal Rukhmini organic a of stimulate top think and And subscribers, running as real at we're to sort we happened it listen out The the The And have Kalimaji sort New as only I success launched buying sort bit just it vehicle of was an was and The great unexplored the last parent more say thing a The you've of do of to a is, we people gotten The as it's to own for listen we to programs is beginning a -- think

in about. to and The as evening while to to see we television, is other out June So you're I I just think Weekly The many listening ways already Daily coming morning brushing your and think things making that beginning breakfast there, replacement teeth we're in Sunday a out or on our replacement are

Mark Thompson

and as had I so much haven't Daily I'm the into really think I that a showed Weekly big move The exciting, a do talked what mean an we've talk that deal, about arrives about it's in for -- could The TV; works, with is well knows morning, that and if we we've what it's sorry the because TV June; breakthrough well. much -- in it could breakthrough. very this who we again, And video, field area if we we as podcasting seen

Vasily Karasyov

it prepared I you it's impact Would The mentioned you understood a line? this in right Can I mind Is flow works? said the first remarks, That's think time you straight a positive of please economic if very details correctly. the is it -- Weekly, more the you cash how away sharing you interesting.

Mark Thompson

I but was by small was and Hulu [ph]. it noticed FX that commissioned

commission to operator with going it's already and times service; we're and show investments cable One, a the say other in in [ph] much and Hulu a required substantial an not of of activity. were as a those engineer to actually show the digital Series margin there streaming audiences how examples rights it's that already innovations and FX who that margin we've require So number subsequent surprising the series, with is we risk associated already commissioned a the the and also it's the means but it money. of is -- over -- top but with it and of doesn't on a not have Clearly, example series depends the have success way risk managed which it big in this


The next question Huber is a Partners. follow-up Huber Craig from with Research

Craig Huber

to we that date of exact for while question… exact hasn't XX.XX is what leaseback could been potentially sale date, it second the [ph]; this can out comes the a the me year, in is Your of up those when get you what clear get half the

Mark Thompson

to but going that's it be don't I exact date in have QX, Yes, you close for Craig. QX. an will

Craig Huber

sell the the hang about or to just is them intention on those And then, floors to it you off? could XX publicly talk extent to

Mark Thompson

do yet, than have them. don't to plan We anything floors those as a of other hold with

Craig Huber

last say my if time smaller the on versus And are are still ones the thinking news-only thinking to get it's you percentage How roughly and and as the that $XX of target. to question going million $XX of you products; then is a Cooking about you're new these launch? the guys million By news-only? if Crosswords, three that number, quarters you other product

Mark Thompson

also to on Craig, sorry, I'm product kind the plus. part smaller indeed any part we're our going very that to are or clearly the $XX this. of It's be of large packages print not going very, guidance you give bundle total. to going a all products, of great But form million

not can it achieve think a what the Just to we was say, model. with we ceiling milestone, a of


This question-and-answer Harlan concludes Toplitzky conference our remarks. over the to any session. for I turn like closing would back to

Harlan Toplitzky

you to joining this forward morning. look We to for again next talking us quarter. you Thank


today's concluded. The conference Thank attending for has you now presentation.

now may disconnect. You