NYT New York Times

Harlan Toplitzky Executive Director, IR and Financial Planning & Analysis
Mark Thompson President, CEO & Director
Roland Caputo EVP & CFO
Meredith Kopit EVP & COO
John Belton Evercore ISI
Alexia Quadrani JPMorgan Chase & Co.
Vasily Karasyov Cannonball Research
Douglas Arthur Huber Research Partners
Kannan Venkateshwar Barclays Bank
Craig Huber Huber Research Partners
Call transcript
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Good morning, and welcome to The New York Times Company's Second Quarter 2019 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Harlan Toplitzky, Vice President, Investor Relations. Please go ahead.

Harlan Toplitzky

to Conference York Call. welcome Quarter Company's and Earnings XXXX you, The Times New Second Thank

us in On President Executive Thompson, we Chief Executive joining Financial President Officer. call have and and our the today, Vice Meredith Chief Chief Officer, we Roland Caputo, Officer; who Operating President New and while Vice in London; have Executive Mark from York, office and is Levien, Kopit

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

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

In addition, available website at comparable we've most GAAP and our measures in on measures, our press presentation is include financial our reconciliations which the non-GAAP provided to earnings will release,

the that, over will With Thompson. to turn call I Mark

Mark Thompson

growing in digital our sauce, above columnists talent increase to and journalism. editors. our why in reporters, colleagues and quarter encouraging a best We and launch a our of Thanks, to The television had everyone. digital the with commitment is dedication sound work advertising and and all all series, good of morning, the Having continue we and the of amazing and Harlan, expertise we subscriptions world results in hard journalists to the these of successful positive both new digital Well, another and strategy, good our attribute that's growth not-so-secret our Weekly. investments

subscriptions. let's So quarter the begin with turn to usual and as digital

subscriptions Our faster grew core than expected. we'd news

XXX,XXX but adds on from a significant be and news XX,XXX new still to year-over-year we XXXX. core came represents Of added net saw considered the product. a these, should net we X,XXX in promotion XXX,XXX remaining subscriptions quarter, a one-off, the increase This QX Google our

milder-than-expected dip. driven growth introduced tests. offer the much news by QX more quarter higher the number factors years year of this: for designed and big optimization of effect last in introductory pricing second Several we stories, account some better with a the It's strongest performance aggressive a

first Although you U.S. continues their subject to trend to tell the promotion its on and first offer, can about retention coming track similar reach obviously to them the began are subscriptions I but We're that months, going anniversary. to previous cohorts. $X a week closely over weeks introductory to

Now in, on as just registered you When particular a of to and and scaling effectively and with to patterns more to preferences and is immediate growth in we not direct engagement. medium further conversion. strong to know, engagement results and higher a communicate ensuring about leads focus them user pay driving subscription we're with anonymous. been they're long in understand That but talked committed consumption term. the doing typically model if deliver subscription optimize we've earnings testing We've calls the relationships logged recent that we and than can their our

or numbers Times over will We Over base. given out in in for to of The and believe us building platforms, additions. time, start we parameters the how and increase dramatic read, however, in are range a users free many testing we out our months. more subscription launched this registration and logged extensive registration plan experiment a momentum near-term the able on July, that effect of The rules, example, at expect on different test the subscription with our users testing coming to for business At have net to plays articles growing we return differently of registered don't help of maintain login. and

Cooking provider. in to the Crossword more subs XXX,XXX Crossword back QX Together adds its and growth product XXX,XXX added XX,XXX subscriptions and and quarter, of news America's also XXXX, The of market second crossed million the X made with product, in XXX,XXX are digital call, subscription for that the our right, in total new own with Turning digital we X.X the to grand for than Cooking company. subscription the from the a subscriptions a which largest digital-only products new subscription products.

was Digital enough advertising strong with digital direct and were Daily good advertising. total grew The grew XXXX on in including familiar gains and creative a revenue quarter offset secular more a by also for advertising slightly. print, year-over-year our These QX services. from sales, in XX% declines side performance than the to

advertising a half. tracking digital weak on as but year-over-year don't be advertising to in we gains a quarters, year, significant worth guidance it's against the strong to Roland part onwards, quarters. a those advertising the strong against from we earlier. now the comparisons XXXX year we've will gains that Now have for played begin in recent expect second comp last QX first digital expect relatively and in in the impact. From from In that we to achieved noting moment, give been as of you QX half we've That's an

of contributes comp the challenge lumpiness. what I've called One previously that the is factors to

real multiyear for as some business difficult The in will willing in with are of advertising partnerships digital partnerships give our which pursuing deals we're and and advertising large-scale, on focused Our the a with to accept increased much is of some the largest New Times These to company, energetically months, York variability world's and and power, are we comes deals concluded in distinctive some of cases XXXX. and strong. see that's them. with benefit the leading us history pricing them that multi-month Indeed, replicate we've is the why increasingly so in recent partnerships from brands. Demand

in across launch new a Weekly, journalism FX The The partners Hulu. Both are and in the largest pleased premiered was and The our Along of Wirecutter for which and our Crossword the and Times with fabulous its revenue in The A quarter. and Weekly verticals is for Cooking other growth progress media exciting brand XX% with engage the delight audiences another so Weekly big Daily, in June beyond very and new The our products, we the series, successful expose to it's But of an across Weekly is was of television extensibility on audiences Times ability QX of different our medium. in The traditional moment heartland. far. opportunity the New us and to our evidence to far of driver reason. York important

breadth of journalism, core that of this much subscription imagination It's which gives strength newsroom and with Times digital expressions continued of so embracing the this with our offering, our appeal and new the enthusiasm future. us is combined in confidence our

Roland the on over hand to more quarter. details me for let now But

Roland Caputo

Thank you, Mark, and good morning, everyone.

approximately against $X as million per earnings to was operating by year. pleased Adjusted execute to in remain of diluted lower in Mark $XX million. prior approximately progress with We our As which second strategy. XXXX quarter, we said, continue profit we the compared period the share $X.XX the adjusted is compared with same reported of flat

in revenues subscription subscription revenue the million. $XXX XX% to with increased quarter X% growing Total digital-only

in of and less On shift the delivery print subscription moving continued of side, less the subscriptions in to to frequent subscribers as by sales. revenues increase the well was were was price This decrease home partially delivery print expensive due a a revenues early number therefore as subscription that year. decline down home delivery in declines single X.X% implemented offset in copy packages and

declined ended declined X% approximately prior ARPU as digital compared the offers the from subscribers declined $X and X.X% for promotion quarter at promotional daily X.X%. week and news impact subscribers Quarterly the which graduated larger the X% than year approximately prior on of Sunday to compared Total circulation the to circulation benefit in from full subscription while prior acquired was quarter with number existing largely to price. newly compared significantly year, per the

expect will subscription continue on and resulted another strong ARPU to that promotional XXXX. tests, aggressive offer, promotional We in put more downward the for other throughout quarter net additions which pressure

including X%. XX% Total advertising with growth declining X.X% advertising was partially our declines grew digital The growth offset due on result digital direct print revenue by platforms, growing services, advertising advertising and advertising was prior technology. print largely by financial retail the the creative and increase our in driven digital compared The services our in year business. in sold advertising sold categories, and revenue media mainly podcast to in by in with

Other prior debuted our at of commercial June achieved compared with full which printing The on from last our television not operations, which series, scale revenues $XX this Weekly, the to by driven year. principally and year premier X, million, yet the grew point XX% have

newsroom costs as costs advertising operating growth costs, well adjusted Expenses and increase the increase. and production quarter X% higher increased associated of business printing in the GAAP operating our approximately result as costs The as also the in with the staffing in commercial higher reflecting Weekly. drove to related both each content a

approximately a effective be tax income Due tax the XX%. full and the was we we rate of the rate Our first basis, On XX% dollar received to rate quarter tax large a benefit effective quarter we teens between expect expect going-forward on of to tax low for our in marginal high for year be we XXXX in XXs. to part now record. XXXX, every the

to sheet. balance Moving the

will ending marketable building, and we to increased lease our were $XXX and cash $XXX in during the Our million. million. headquarters securities of approximately expect balance at be debt finance quarter, obligations, which sale-leaseback the related XXXX, December repaid Total principally

to subscription digits in due expected costs third drivers to revenue the outlook to operating with as Other XXXX. continue with revenues single of Overall costs single XX% mid-single expected to the to quarter growth. we increase series, Let quarter adjusted mid-teens. the increase decrease compared are the subscription third in to me to with Both third are high our of are Weekly. of largely expected subscription conclude XXXX increase to are expected our XX% XXXX. with compared and quarter low increase and high with the digital Total third revenues XXXX expected to invest approximately television the of revenues the advertising the the of digital digital-only operating compared advertising digits quarter The for in revenues in in digits

And happy questions. with open be that, to up it to we'd


[Operator Instructions].

from Evercore. The John with Belton first comes question

John Belton

talk given to is be about new the digital bit just attention I'm I a a to which more little business, the guidance. here want of sure focus advertising going

was this just if with months a any a Is you've that on of the Is on now this I Because additional the the more recently? X issue, trajectory there tougher has of ago? know some weakened to you of I business period, double Is part it at saw relative look So comparisons? reason of lumpy looking grown think over changed any meaningfully a where revenues business market back digital just color for of kind growth I broader trends. there ad has digits to any business average. X-year underlying

Meredith Kopit

there. couple Meredith. This to A things morning, of is John. Good say

in selling the strong. First, I business think say would question, broadly remains in answer for very ad your is I The to what demand Times

I scale. ideas of think that brand to don't the proposition, don't we've safety and in to and that got and changing is launch which unique is in will. And expect way, adjacency demand an world creative IP of important grounded and any that in sort a don't feel I it for I think we matters ability

here a I you're really costs the think half particularly back the what of at is lot, matter that year. in the looking

in and So percent fourth as those alluded XXs media we each I feel in his we combination think advertising. Mark And in in last in drive filling of were things confident the and to and up quite other. our quarter year of strategy services, the remarks, low in partnerships a the

variability about more things in in business remain of the becomes year As But -- partnership, the to we more year. we system from of timing there's that. the confident optimistic these is because confident very more about our number differs just the last over strategy. remain that that much We seen deliver abilities and demand to and on remain years there, very the we've the optimistic gets

John Belton


for the view you this driver a term, as over nice longer do So company? growth still the

Meredith Kopit

we've as previous over the remains that on in it better the subscriptions business long said do I we the and calls, that. the think that And And Yes. for haul. engagement, ad also better is


comes with JPMorgan. Alexia from question next The Quadrani

Alexia Quadrani

subscription price increase have that? Earlier you a a possible more your think digital about few couple service. more. or I thoughts year, have update in any questions. I spoke then guess any I Just this And exploring on

Meredith Kopit

results the been who of Hi, a or us, Yes, second Sure. couple in more, test. Alexia. did that. a own have our of expectations. very for test of launched on pleased quarter, price a pretty population we and the substantial talk we I with It we're users that And think, years increase exceeded with about

fit, used that and to would lever. it we be take that we that I what sort So pricing say lever a power be have we from there seen is we as is use remains of see when and do that may to

exercise on demand and also we've said you're the ends make got end test use previous calls, as the see at as as the to of we beginning on end. us of price I think I of both to real the opportunity in described low high now that in And introductory I've curve, sort at offers just and continue

Alexia Quadrani

on on Europe -- year the the I or that a you read from churn Can see may a few those launched I it's is into initial subscribers? you it's August how us offer in trending promotional XXXX. we think I Maybe then similar anniversaried. in a from churn, months it how month a was here. Can an of think update give since potential here offer least at now last somewhat And know months you you sort been several had

Meredith Kopit

reiterate And of of week Absolutely. the of whole call, our the previous at $X Mark the top to just what to retention would similar quite picture base a cohorts. said subscribers broadly sort looks I the of for say

So so there's what seen nothing far. in we've

I so that far think months troubles in us. XX, in XX XX, months and we're we've internationally. nothing domestically There's seen XX

on the We is are X thing, came so months into would I say that same X far. promotion internationally. what folks And in with the seen or who used we renewing

of very large in moment. moment. And at then that what moment past came and X-month a substantial know expectations, the is ahead who this operational cohorts just XXXX. cohort election who of had a X-, end people that us which a said the sort muscle after in arrived we of to our And is over well X-, of very all beginning say moved in of move through XXXX, to of that period calls, the of through how XXXX and something gave had previous sort I'll step-up I've at We people the we've

it So very I'm that confident come at once. all doesn't

domestically are August sort So cohorts particular the very then users U.S. for the step I we up are if it of in whole think to to of there year. we launched obviously we through $X operationalize ensuing who people flows and a year, end the need in week us And of around or last prepared price.

we'll that ones. have move moment this prior So as I'm confident through we the

Alexia Quadrani

And a this very, just clarify, how little demand do a digital. on it demand are I believe how about fair amount take question The But which know a at doesn't guys the bit becomes much out do or have is lumpier already my see lumped just like on digital strong a one demand as is advertising just -- very I obviously this follow-up or the bigger, advertising? you in to quick Daily, and guess ad you there, visibility and the call. digital have volatility? talked away you on that doesn't bigger strong, bit maybe far want of that that I And comps sounds challenge. I is

Meredith Kopit

big a business. it's ad think I

So take Daily certainly about I'll ascended volatility But we ad to a is an something in and has think larger and our product. say business. to be -- we still The expected scale away the than very, meaningful way, much it's very of ad big

So will time, at The second do added We I generally over it end ad think of the into that. June. a Daily

have expect time also that to I So a positive over impact.

there is, for content is unique advertising in big just at association has audio with in quality I'll real say and getting this general, audiences. you're And demand that

we're The that products. podcasts will addition meaningful Daily over so time, other And optimistic in become our ad to

Mark Thompson

around London, is partnership. for doing, partnerships partnership over I be deals. of if it's think, a I some just the these time, and which been to months example, period we're years. for room long our I've XG, can the with indeed something extends the up And really from And in Alexia, Verizon large-scale of shaping add And quite

So some recent big lumpiness these will quarters. I that to time, as think offset partnerships that scale in we extent over seen we've the

is business. say old than probably to more display-based pure fair a the to it's fairly always this kind as were business be variable think I that somewhat going of

we we visibility so the those of But some least. partnerships deals some at these future that do into that long have lasting are know for

the I I've doing, The the high Meredith feel about reemphasize who meetings just New work said, here very So sales what from to with us. York very Times indeed. We and sales for some to demand think what come in London, we're just excited at the people new remains want

Meredith Kopit

wide York the to don't services, of think right. into I'm sort if don't scale I New fortunately, the think this long at media events, a a The asset have -- add base uniquely the away. And of at And any, we who there paper, that that audio, that That's business time. match would creative possibilities are also partnership, put for a the demand I for digital demand live few, advertising, of just goes Times. the can I fact


Karasyov The Vasily next Cannonball with from Research. question comes

Vasily Karasyov

Roland, I years hopefully of that you wanted QX couple questions for ask on implies the cost outer in what too. and for to QX, growth a

what can a, the And growth production us rates percentage of be for give costs So the maybe? if you rolling it $X is variable And be. the what fixed? Is what will SG&A versus then and an what idea, to driven be, promotion it growth off? us how Just the cost will a would is trajectory dimensionalize week this it's by? related help variable,

Roland Caputo

yes. So

breaking there's Let happened is some me what place to the that a there. quarter, down clarity bit. in start past best start little Maybe by so the

full with newsroom. the right, show, then growth there what had less editorials increase at Weekly, in costs. than had that driver And costs, content, investment The total X.X%, time. also of and and so XX% we in at So printing be the the production news And scale. for cycling first in of on was full the costs to the was the operating And broke television the commercial production commercial printing we've scale costs associated creating for out

a kind and And increase a of SG&A a was spread X% that amongst increase, that of just kind was bunch of about -- was areas.

was of highlight I'll significant driver SG&A. a that So marketing not

as into talk to We'll so But we have of scaling we and a our similar typically our about cost cycle in up. future thesis So the into on of we future business, the forward we to The focused we production don't breakout our Weekly. the LTV quarter the We'll details content. go get ratio and full could CAC are to continue We'll up quarters. of quarters of growth. a of what drive expect investment invest finish commercial is,

So in we're to of expecting the to benefit the and is with CAC capabilities organic drive our which to product invest of percent and starts to versus continue drive paid to up profitability our LTV desire company. going ratio, our

Meredith Kopit

worth and itself the marketing. paid in saying second stay which a the quarter so the saw we habit making pay second of And engine versus quarter, product quarters in previous than form was a and people better in

Vasily Karasyov

last wanted look I this if I be year? quarter-to-quarter for go not if example, progression a for So would good -- that things will of how at SG&A, indicator year the

Roland Caputo

how I that would I'm not valuable don't be. know. sure


next with The Research question comes from Doug Arthur Partners. Huber

Douglas Arthur

Well, expected. second as I not quarter high just in as clarify, spend to the marketing seems it mean was

back guide so XX-plus to third anticipate area And had in you will do of that kind quarter you million that running? your been get you

Roland Caputo

doing product of recent more Well, quarters. quarters marketing work several in in and have the the next the whether quarter over get to our explicitly to the goal is or do this been happens that

hope few we So over quarters. to accomplish able to the be that would next

Douglas Arthur

okay. So

bottom may spend is line. get high high marketing back -- to XXs then mid- the So the into not

Roland Caputo

not. May

Douglas Arthur

fourth against out taking mean comps, then, And against in an XX% digital growth That's quarter. up XX% going Meredith, the adjusted, advertising, your comp on an Okay. tough of you're point the week 'XX. extra to I on

on digital we So reasonable of your that the quarter? sort is ads second be in in based fourth then could half it guidance double-digit

Meredith Kopit

I think Roland's already given the guidance.

we quarter. can Sorry. the third don't Yes, think I past guide

Douglas Arthur

Or price? just know on I mean take anniversary you Or is to to but any or promotions, are if full you can you be determined? Okay. week clarify, And price them as kind intending to of it just what that? guidance don't then clarify these I a $X -- finally, to

Meredith Kopit

What a as our to question, response moments a that history to I we're to of to been offers full be able suggests through -- them how previously. as and necessary, said related we'll make step-up in prepared these we've move price. that's is also operationally lot managed We

I probably it. that So think answers


Kannan The Barclays. from Venkateshwar next comes with question

Kannan Venkateshwar

I half I first guess few. year. the from as comps perspective, your guess on year pressure might QX Roland, side. you of guess, that we ARPU last an you started the the well. ARPU easier I of promotions And see will second A have mentioned the or in

year, when cadence direction. step this think So do the up, that second people the of pressure you would expect about as change in opposite ARPU in we half to

thinking on is So there just understand wanted it. to ARPU the what side the of

on subscriber you're last over year-over-year, into But accelerated. tougher growth you do derivative have second these the accelerated, comps QX your the Secondly, has coming adding so subs has the quarters, QX, number in. go X side, and of you as

in Europe So extrapolate fair given retention trend ran rates the to the it X of quarters, fair forward? these be other that last seen to you the promotions may lines past, is not over that going some your and in say

Roland Caputo


happy both a discussed. week retention here, question, the of been working $X set as On has way with to side just the on the kind promotion ARPU starts we and so level are we the

between of current start large folks expect number price. their of because and have that, trajectory we're the shot -- full terms up overwhelm stepping to So price that's to or up. could promotion directly as stepping a to full of next That going $X of stepping either up moderate subs downward pressure to numbers week, on in large the large on going something one to ARPU to over quarters said, in come we right, the that at several numbers continuing the

numbers less. the should so to drop numbers to we'll aim large continue downward get bring quarter-to-quarter sequential because We'll pressure. on should pressure we see moderate, So see to the subs. continue the But

Meredith Kopit

And the think someone understanding Yes. I better, getting say makes our the the drivers business in that alluded I'll what And a this and think is second form remarks. question. broadly habit to in just his and take of Mark pay a of quarter-over-quarter, stay I I'll and

I think are, think a of everything drivers, places, said, we One about journey. kind And Mark X are position friction that exchange in now many at of to there that. move as getting we ways to on X and is more about and customer better sort intervening also sequentially those are to value journey. run tests in on

where count? intervene? So How you do message? you At what offer What meter do do you people? show

we're part I also sort funnel. quarter-over-quarter of think better conversion the of getting optimizing at every

until So room a from And virtuously sort logging show thank for the along that and lot go. been of app real the and behave offer room we've to signing get and churn good at engaging event, there's and of time a still retention better to we of funnel, the we think lot a from retention of and more moment say rates a subscribe them all they moments through get intervene. how and that specifically, message room What And we an to optimize is and the very, done in, and on newsletters and the getting for those you us. retention. managing so involuntary and at people very form about somebody I up downloading registering habit lot things same has have like better then would they we've work to to of still a I mechanic the by

the think to a my is just to fair as time would still opposed you of of discontinuous answer I as room generally moment. sorts for guess acceleration, there's model over I getting better broad amount us a and I it in see So

Kannan Venkateshwar

and think about proportion when I you're tends their range depending XX% we a the businesses follow-up When at. to I look more than Meredith, science broadly, one marketing in on of Okay. so who Can this ask of digital as it budgets? terms framework, on. a as question, seen budget looking at we've advertising be part to XX% and of revenues, marketing mean

Times it about York I'm think New I more not at if wrong. roughly run X%,

time, So looks of are when the for proportion time? be framework is you which framework your How a think it revenues? normalizing is what that over a devolution budget marketing about about should we about that over thinking thinking you as like

Meredith Kopit

I'd then add say would about and things two Roland missed. anything have I it, should

we Our itself stated growth customer about to of of that journalism that, And experience mean you imagine both kind we've I a combination drives better long be user strategy is makes time, investing and in haul, marketing some mean and of talked length. the over engine the product the in what efficient. and Over journey, at the business. by your sort more and that of

can more ultimately spend So you more drive less. spend to differently or growth, or you may

the very we've to been able is us, so worked do mix. far, thing The shift which for really has to marketing well

of longer-term And to those connect test I I and that pays on spend a and gone from sort been think the XXX% in on I've dollars probably time on So and of a longer what we over differently performance marketing to some move cases, things half that more I've that, here, off I we've spending get nearly direct half think come I say and close what just described, response tripling time. to than sentiment of or that The emotionally. or think to one is people Times would think period marketing

Roland Caputo

to would in over fashion. we term, add the would ratio LTV drastic like CAC to the move I I consistently, up mean see any long just not

us drive you if a percentage, expect the percentage kind would revenue represented in future. that expense So of not out to you as marketing that up to to plays how translate

Mark Thompson

and fabulous generates has The often of Times. a a its indeed very if project, could out The message we is although add, intrinsically journalistic get Yes. really the to cash The taking how New inside gross own subscribe way of is revenue Times. would say fundamentally in York it's margin of which we're a the attached And indeed to do And We I and view Daily, The story Times. got just I that to, quite a positive opportunities broad mind about -- I telling good the Daily mention

doing audiences intended in top getting brand use So tactics. are funnel like, marketing indeed the journalism, the in what very and we we're to turn ready also in the of very, conversion ultimately, we're to engaged Times intended funnel the in the get -- further The brand understanding is the doing return television and the for at can down new and if tactics podcasting, is what for, to you

I our again the new think people we money can improving if stage, associate to again sense, that first high in much we actually it, back lot which At makes out the conversion heavily economic a with And as efficiently, to we can. big of is were end with a spend foremost, generally, should in demand numbers mean way the the it as say given economic product and continue in week think of as I as all and we -- investing which can our at strategy, we very in brings of above and very where periods there's spend is long efficiently, for us. would engages spend I product. journalism I marketing the content, and


with The next Partners. question Research comes Huber Huber from Craig

Craig Huber

third high think or I third the growth quarter? case, I cost be the us better One, year-over-year cost is digits growth understand third digits. single up can what questions. should even is single driving maybe your marketing help that were heard If you over of few in sort just A a right, the you outlook number saying not quarter, the the significant sequentially. If of that in high you're up cost you quarter

Roland Caputo

The may you The first, a had quarter So quarter we a have So of QX. Weekly partial right? Weekly, full in of

digital strategy driver. other and components that's growth the subs, other and large and our a that's And content of really investing in product technology. for So two

Craig Huber

also spend when period you're are you you're guys understand, In you get that's you to timing better But Okay. a and that is or hinting year-over-year. seems a spending would spend going pick the third growth more the of it And of cycle like I marketing just sort significantly. season it more that here other here, then You're guess. in not not to at in digital the of saying efficient, marketing expect in kind to what words, dramatically this Is want political Or up up with aggressive more when terms and spend overly marketing second to getting subs? quarter? slower just here. here of was of

Roland Caputo

a it point going just I'm on I in one based return. we Meredith our hand want Sure. spend make moment. to govern to is But rate of to internal direct

can So them. return spend going spend and spend wisely will we're demand to get on, we sufficient when and a we there's dollars

and perspective, to from I'll does can that bigger picture quarter-to-quarter So quarter-to-quarter. vary pass a vary it Meredith. But

Meredith Kopit

growth and in pay the stay a And you some I've reiterate said. mean things itself, of And the journalism, strategy stuff -- I'll advocate just of Yes. better experience combination quarter. making already a got a user journey, I engage of think product second of I is of ultimately the and stated customer and of things we've that of subscriber of that people and make engine kind the the the saw that others. some which to

more real market, think need we have get in marketing. that room the the better I a described of to I the I described. model what think based just real out for what do what on obviates see to I I just on we and think running don't opportunity

the shift sort more retention product, make better. it some to drive to the and way organically work we're efforts people's described more mix marketing just lives we've think into to our can dollars our it's I already sentiment can in we But for not that the long-term cases us own of and through more starts allow in. to put move and our of

to back one the moment I what digital subscription a is think XXX are different business, it's and million we million I question now, going with us. as previous Times who are The the just unique and who have entertainment, and one, X.X from things at think music And but of only, paying about products any news your our engaging and people

what is giant we're some are So describing making the there way most is that lot a audience. people coming organically, audience who of already of and us to in a of

Craig Huber

more are Then content journalism at you're in outside towards? if U.S? the investing I U.S. be you, and you a little could those for Where going specific also, dollars just Mark, can ask in the where both

Mark Thompson

by that's will say in I sells in coverage force. newsroom make we in available Asia, economically would the investing examples. by But strategy way which the further and In that capabilities building our decisions is. Those and investing taken to taken further. a investment and more geopolitically incredibly want I significant have decisions newsroom, cover -- in itself to say not make tech our these the that be tech sure current journalism the been particular, it's trying globally, in are And that becoming to the we Sure. and focuses absolutely on publishing

XXXX into the going And sites the coverage. think journalism much climate in -- the can obviously be which planet news investing I as other election at pretty moment. more, even -- towards on we in also the any probably we're We're head we organization We're looking period. more during physical climate hard to is investing at ways in

our film. of further television for looking about this building previously ways, capability also we've talked podcasting opportunities in for We're out and in calls, earnings and

Craig Huber

this the the ongoing midsize of my $XXX at of The media the journalism. of and cost last the about talking doesn't I'm announcements expense coming day, the in news that given man question, industry? demise Times all Mark, last major there chunk in that, new of make some the your York sort out of emerging, And end of the sure New newspapers of almost the million the U.S.? more estimate cutting. smaller benefit as the standing a At to much work source Does in not of

Mark Thompson

broader news is mean foremost indeed in we the is America competition, that true in that And journalism world. we the the think thing. I business and understand first to I developed dismayed and we've a say is point, tribulations investing the think love journalism. Well, where been Craig. What we got of plurality by bad and the We very throughout model I is mean are I in want that a important. we've

have in had, We in this more in we'll hire far something and have we'll involved Times, history. the ever still New this we've our year, in like York X,XXX people by journalists to newsroom The have than more year. our of journalism By biggest end

is we before, content, with with in if in for do ways you is said America and out you do, and for delivered Netflix expertise That's I take in people do we're content, and the We're journalism that we'll other we Reed same the organizations that. an thesis effectively investing buy there our invest we through digital it's about it. want and high-quality attractive that for and If view which we're to determined great significantly potentially crying products that delight. partnership, them looking and need the content in to But news have and to could as we do so which subscription. thesis. Hastings a And world pay engaging help monetizing at can our

Craig Huber

Mark, in number X,XXX involved people X-plus was company of my started years ago. number last That total quick journalism today, question. that when you where the

Mark Thompson

remarks, newsrooms. many journalism. We the you business and make organizations invest that to a significantly larger opposite. focus an Times, success a got journalism We're at on number somehow cost-cutting hundreds The exact To I to work, the And digital haven't we and We things exactly you get think we have business, of investment to have but attribute subscription fewer. its I to than think their through at my the go -- said as even out journalism. the tried news for were. reducing very building very put substantially of we we the start great in


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

Harlan Toplitzky

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


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

now disconnect. may You