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NYT New York Times

Participants
Harlan Toplitzky Vice President of Investor Relations
Mark Thompson President & Chief Executive Officer
Roland Caputo Executive Vice President & Chief Financial Officer
Meredith Kopit Levien Executive Vice President & Chief Operating Officer
John Belton Evercore
Alexia Quadrani JPMorgan
Vasily Karasyov Cannonball Research
Kannan Venkateshwar Barclays
Doug Arthur Huber Research Partners
Call transcript
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Operator

Good morning, and welcome to The New York Times Company's Fourth Quarter and Full Year 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

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

Harlan Toplitzky

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

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

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

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

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

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

Mark Thompson

morning, performance I'll with the dive and everyone. morning QX in our whole a then good in as it digital this our says what about into results. our progress begin Harlan, Thanks, and XXXX journey and

ago, shared Back the few in A world. at XXXX. goal milestones set at our XXXX, wider by colleagues of of with we year million revenue end ourselves the we Times the least to digital here of a weeks The and doubling some $XXX key

of managed early $XXX last significantly, year, we that fact, million full pay subscriptions digital to largest in one revenues the net XXXX. we model million add Even the hit since able year In of were with goal in XXXX. to launch the of digital more more number than

with again digital well meant print that for company. as total Indeed These subscriptions American know ended a of the the record million, XXX,XXX York an XXXX the journalism. X.X The New Times, and largest in for we as approximately as subscriptions, far of of number subscriptions the million all-time history new grand as X.X we history

but real part was continued I'd digital transition seeing explanation, our that of news big acceleration subscription that's XXXX year another especially three factors. other business. in and important core know the our in digital-only point we're to for and So

which limited First, users want stories number launched register millions customer and a are have log now real more we users and and subscribers. most requires We journey, to year to they the than registered our to working. new we success if more many which of Times of seeing to access clearly is converting than halfway used in through them in

whole. we're roll-out on tenured we're even our offers our to hit $X the introduction after introductory week cohorts price in effectively higher week, we base. digital-only still successfully This the subscription new first one-year after of the and U.S. a retain offer to begin to months the the a line a subset a continuing subscribers rise to other mark $X a seeing graduating prices with in them XX lowest cohorts. Second, manage five retention and months as week of

journalism its but seen investment excellent our report represents by We Since broader of Our this with digital nine price even is in able also this only model money still us rising This XXXX. progress in for Times digital pay launch and we'll years unprecedented the the costs, not gives the execute with to effectively price retention of since confidence offerings. rise. The first then, be believe that we've too. value

report loyal much. quality, breadth Our subscribers their depth maintaining role and know so an the they that value in contribution the plays financial essential of

log bets working new This enabled new with some registration and cross like cycle set a ago greater us testing running this, make the enjoy times. of than a and has we're Meredith's is operations now before. enterprise and couple of machine significant they in autonomy disciplinary of than It's access digital objectives. The learning, confidence years leadership, under to reduced with capabilities third speed Times model different key achieve and who need teams even a in factor to way that bold The to radically of new way engineering decision

of But background subscription the it running also dozens digital means in tests that we can parallel all continually of time. part optimize the with business every the

this perhaps how seeing in in we why rest We momentum digital believe the and do breakthrough the our that single biggest decorrelating is with our core the model of digital why sustained such are industry. reason we're results

as and approach objective-based well with made of XXXX TV. the in and Crossword as stand-alone Cooking, team explains our similar products: sense we audio progress A also Wirecutter

news net to especially were having new let's digital-only strong year XXX,XXX at look total the Crosswords, XX,XXX new subscriptions end a itself. QX our with the of added briefly quarter. now of to and XXX,XXX balance spectacular to in Cooking We a But subscriptions, which product, core net Cooking digital-only with a

To XXX,XXX we earlier added XXXX. product about worth QX my XXX,XXX to new XX,XXX in that than QX news XX% point added than the we net noting acceleration, our more digital-only more XXXX and subscriptions underline XXX% the it's were core in

to Encouragingly marketing XX% $XXX revenue the Digital-only numbers, compared actually despite subscription year grew year-over-year. of fell a acceleration to subscription million. earlier costs

to therefore model both and that QX spend digital we'll suggests reduced spend see these help the our not growth operating economics in this achievable. do fact that that we improving QX continue saw when positive future in drive moves make in The leverage guarantee marketing dollars digital we'll quarter. category Although, is to in every sense, and

would call which that in XXXX a for year-over-year, last quarter saw in and the a us guided XXXX, we QX warned tough we big We decline spurt percentages. in digital make XX% the QX mid-teen to in our advertising

decline. posting an did In year-over-year than fact, we a better little bit that XX%

you another its me out advertising despite you'll minute a take story. to in when improvement a comp. tough moment, sequential expect a to overall As a digital gives QX, Roland on perspective our set see guidance place we digital But in growth let broader hear in and

market to market from programmatic growth sell accelerating. the years in been with and of advertising the and to platforms The from tough all generally premium open in publishers desktop digital both the few have nearly direct for past digital major shifts taking the mobile

Times, by on that content improving by and years. and reducing At rate cumulative offerings the trend digital new offering growth reliance display The as and bucked we over past areas services marketing branded with We developing well and on as in product our podcasting this like our X% achieved annual a of distinctive four generic mobile. performance

response broader The continue pressures are in likely on continue will coming those. to and the advertising industry to business to our years transform the to

from segments Festival. we're As within sources large-scale the the successful partnerships digital in advertising leading like revenue mix, last more and other addition Food world's successfully you traditional new know, building brilliantly our brands audio year's and forging with to

new advertising valuable to our solutions privacy audience. new based safe launch we'll ways of formal first-party create year, reaching data This engaged and

but We're many all the ahead world's of we to pivot this in will time publishers us take the of believe, complete. of other

relatively We growth to year-over-year XXXX. be rate shifts. revenue of will quarters second that of for the return and growth half subsequent X% by the But as expect from some business CAGR those this the to below digital our advertising subdued balance business and

our constrained the track for advertising years and targets, ago that we X.X we're more in our subscription side. revenue prospects that on growth of The is our But the despite about subscription-first current Indeed sustained seeing the publisher. remain Times endorses hitting declaration digital strategic strong digital confident the business immediate overall strongly growth the business means a

user and and sold the advertising. believe in which businesses advertising the of best our digital experience. directly will confronted we significantly when our from we subscriptions possible why subscription trade-off A programmatic the apps is our improve open is between potential the the last favor value departure experience, with market point also generally increasing That user case of advertising while week

Print the over subscriptions QX declined to quarter approximately meant by just revenue revenues side X% year-over-year, $XXX by digital on million. in X% and XX.X% strength print the company grew but total that in advertising

grew to weekly costs production production costs operating marketing year-over-year to in in Adjusted $XXX and as in well an line with cost by profit staffing print to million increased or mentioned higher over our advertising, million lower net our XXXX. was lower-than-expected the result newsroom, from as offset related earlier. XXXX company TV slightly costs partly including in The QX operating content grew QX I million $XX adjusted for and $XX distribution, cost that series

company. York quarter both current still finding new Times but ways real also loyalty run York confidence strong The in levers the grow just the customer business, the in digital The to news to potential the by the entered that of a in further and acceleration core we by New additional rate and commands. Times XXXX cap not a incredible on IP with So, our year New of for good of finding And product of capitalizing

now the Roland. a at detailed here's But look quarter for

Roland Caputo

Mark and good everyone. you, Thank morning

diluted higher approximately and million the earnings share a prior reported which As XXXX. slightly strong $X.XX the Mark the the higher year. year about optimistic continue we operating be Adjusted $XX period was company the $X.XX quarter to quarter, was opportunity of is fourth profit said, adjusted in than the ahead. same XXXX for per We in than in

XX% Total growth. subscription This represents digital-only of in $XXX rate the growing the increased to in revenues quarter sequential revenue approximately subscription million. with a X.X% increase quarterly

the promotional we remain who Mark passed we're yearlong retention have seeing promotional from As $X a the period. said happy subscriptions week very with the

price. bifurcate the half continue approximately We moved to promotion others to test while to subscriptions a are full deliberately at step-up price, intermediate that run with moving expiration an

price-sensitive and indicate identify of goal subscriber may require therefore, with to product additional characteristics The might whether the our to test before a more that engagement be full price. may moving is

price. most longer expect move that term, the eventually we will subscriptions Over to full

approximately Quarterly digital declined subscription to quarter. compared to prior compared XX% approximately news prior year the and the ARPU X%

number higher the on and offers impact larger a the deceleration this continued during the than newly benefit marks week from of decline graduated of quarter. be large ended from year the subscriptions $X mostly promotional acquired slight in promotion, whose period, existing to rate both a over prior While the to the prices ARPU and subscriptions, the

introductory beyond long a Given an in retaining profitable retaining at use to or experiencing we're continue initial success new either intermediate subscribers. period, promotional subscriptions price, price to their acquire to price plan we low step-up full the

in in new increase begun billing moving subscriptions with for tenured cycle those As $XX. was more digital of to mentioned $XX many this we per have phase currently price quarter, our paying a to

expect the subscriptions beginning with effective We of of with largest handful phase-in March tranches their consist tranche the to a bill. of

effect in this approximately late on of revenue the to XXX,XXX is digital The end reflected rise QX the and increase subscription due expect domestic to be in from modest this We the price is guidance. rollout price XXXX. to quarter expected our a see by occurring subscriptions

of expect also to in rate the We pressure year. subsequent moderate quarters this ARPU on

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

circulation circulation daily compared declined year, Sunday XX.X% Total prior quarter in declined X.X%. with the while

As locations. the This a we The Starbucks the for copies, discontinued of on call, the of impact at its New end percentage at York corporate-owned decline. August, last retail approximately all Times, points mentioned chain quarter's print including on two accounting of newspapers, distribution had meaningful the

revenue loss was channel. the of point one only one dramatic quarter, third subscription approximately Print percentage lower, was distribution of sales of result a month The was in more affected. the effect this when as

direct on advertising year. a and result by in the advertising in comparisons digital creative growth was of partially with strong podcast. prior decrease continued each largely XX.X%, prior offset both in digital declined, revenue sold platforms the in services, in Print core revenue, compared year our approximately digital advertising, and The

from result revenue advertising television principally driven episodes XX to print The grew by was in Other year revenues categories. compared Weekly, The in aired to $XX which and licensing with new well revenue News. quarter, luxury related Facebook as as associated declines the our XX% to mainly with million, due the the prior financial series our

as result GAAP in costs each and as The operating quarter reflecting related both operating staffing higher the the as well costs Weekly. production costs approximately adjusted in newsroom higher X% to, of increased a content costs,

These costs development production product also lower in number by increases Growth costs working and marketing. offset print higher. distribution, of in drove advertising employees digital were the and substantially in

rate, activities. tax Our to XX%, federal quarter income tax foreign-derived for the tax reduced credits lower rate for effective tax which fourth was due research statutory and rate the was the largely than on

approximately effective approximately of On variability be we expect every of under approximately tax the funded continue income, qualified on plans XX% quarterly end was a our $XX of with dollar were basis, marginal funded. pension to going-forward the to And some plans year rate XX% The million. our at around the rate. the balance

marketable option and result decrease of as retire cash $XXX the a prior of balance, exercise our $XXX sheet, balance the approximately made an to Moving a to at building. securities our sale the million, ended our leaseback million payment, the quarter, year headquarters to from

our debt this interest headquarters And company retirement, condominium full the regained free. has building. the debt our is in original company With control of leasehold

a on the in As statement will our expense XXXX. quarter first income result, of flip the interest line income interest to

debt, the the approved review. $X.XX Given of under balance a XX% results capital retirement continue Directors of for $X.XX. to dividend and outstanding and piece the Board plans or will of and our the in XXXX, to sheet has increase keep to strong close per our our the last share company's Board Management allocation

businesses, to order flexibility digital take a further approach previously of invest the will to But a to of when stated, to the of vagaries and in as have I growth market. relatively have And we maintaining management the conservative for our independent preference therefore balance in the in manner the sheet. the we fuel want continue strong

Let digital-only expected outlook, subscription digits of revenue teens. the XXXX, the quarter in compared increase me first conclude with to quarter with the of first Total in are with high to the subscription XXXX. mid-single increase for expected our revenues

to are to And the approximately expected the expected compared with Overall advertising are XXXX. first revenues in of digits. advertising mid-single XX%, decrease revenues decrease quarter digital

quarter XX%, X% XXXX, with expected operating of costs increase, in Other digital from Weekly increase to as operating and subscription first of compared largely drivers the continue approximately expected series, costs adjusted we Facebook News. to our to are are television X%, and revenues growth. revenue invest approximately licensing to to the due The Both

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

Session Question-and-Answer

Operator

from Evercore. Please We ahead. Belton session. comes will now John Instructions] [Operator begin the our question question-and-answer go of And first

John Belton

Hi, increase. talk about price everyone. little I wanted more to the a bit

year domestic sounds it XXX,XXX said subs. by impact about of like end the you So the would

price of But of So we price XX% your pricing. new Thank do the a of to other the by digital-only think are promo the how about think XX% product those I did more forward base? you. do How moving lot domestic on? you you broadly? my full going math exactly take cohorts that's choose, the around we know of are on about subs. which How

Mark Thompson

Hi, good morning, John.

that to approach with me and with that model. entirely I'll and hand years appropriate launch me get and price the I it's And reasons mean first the let we is rise specifics. Let just the the the begin Roland. the said. think to I'll we've – introduced had I for since of over We've about Roland prices. broad many talk of rising deal This

We've also hundreds The all ways we Times to subscribers. offering sorts newsroom journalists to good in represent extended new broadened really – think And our value. continue added of of our and to will

enjoying are a was currently made We we have and of and subscribers many the think more number like our appropriate large beginning with introductory many it as to new many, rise of group. people, a with to whom prices that thought of many file The sense of a tenured years whom are for up who fairly moving without if it We price still obviously, you Times take offers. process have us enjoying been

you their Roland period, get our we ultimately as are talk the – bit this Times to Roland a on becomes price that to the pool means XXX,XXX? The want to for new this – of price with to do view as will of subscriber be people digital introductory But everyone New over a But were York once many norm headline out new full that who is as price. possible said as of going and time, to a subscribers target about ticker become the

Roland Caputo

on we as you just should bunch inform chose. test test used like what the last Basically a know, whole then criteria the we started increase. we what a we the And John how to of conducted criteria. things a year tested reasonable that kind with approach the extensive final think to seem fairly as of and price of a we you would apply results set Sure. and I would

we've criteria, is And share tenure have I going increase that think that first criteria. can apply ago the implemented a of the large many it XXXX. major moons you that the increase you since are. tenure that items large one to And the that between. knowing about all attribute that what the then hit time first you think hit subscriptions this, have as a tenure numbers, as just about is Not imagine here. the everyone in price and Those criteria But do is, to is price this thinking mentioned, those to being or we've way

So if et of benefit will it's forward, basically subscribers the get that be of this gate this than you think that pass-through those increase going the that time first year on you'll smaller incremental with $X next implemented. forward about numbers folks XX-year going while will year, cetera significantly the

John Belton

probably like can Is engagement term? most biggest about So the you're using as think you criteria usage-based the it Are – a sounds using. model we important of sort it tenure well? longer or is

Roland Caputo

Yes a criteria as obvious most but one surrogate we it list the and for of them do we're kind a value. not to have disclose tenure one of going of being

think have say criteria this don't Beyond lot the at that a point. about to I we

Mark Thompson

the with digital tactics digital about we many our very years the I'd developed side, our applying rise. test John to subscribers with in thing many that also we thinking over price we when print we're is the rise years addition price in price other and loyal have print lessons only and on to of also add The the XXXX, the did experience many,

John Belton

you Got it. Thank very much.

Operator

ahead. go Quadrani comes Our of from Please next JPMorgan. question Alexia

Alexia Quadrani

a full in to the of made the of opening them And give have I can between. kind first what general us Do you impacted? coming I $X know remarks. couple us percentage guess can on folks to follow-ups. $X whether you have how price and back give wanted a terms of half to to revert promotion. you Any a step-up churn you of in you in keep then comments engaged? in color a of to couple your go off have you just color or the to I half mentioned I it's week sort you. in Thank keep terms a on go any of week follow-up

Mark Thompson

why Meredith don't you...

Meredith Kopit Levien

to. Good Sure. Alexia. morning, Happy

giving our detail and we price. willingness the as similar in comfortable XX% relates thing gave doing better John's basically other models up about seen general, to price. prior price. goes of and good which to roughly off The to population full Roland at the understand to goes little think, prior to it we're to quite learning in machine the it. really forward who are saving going looks step-up half a of of bit cohorts Roughly, of, feeling think sort a question, half the end with number about the that we up full we small There's feel we've I week. is of step-up what relationship In this is $X training a know we're a to, it people engagement

we're go. to time I over get as going expect we So should think us you -- get to better

over I pleased time. far we So are where gets with think and so better it

Roland Caputo

add quantitatively is Just to I the only XXX,XXX that over thing have… folks that would

Meredith Kopit Levien

Yeah.

Roland Caputo

…cycled offers. still retention overall through promotional period line prior their in and with seeing we're

that that happy feel that. that establishes expect going And forward. quite really is we we're we what So -- can with

Meredith Kopit Levien

what additional we Mark also personalized ensure role us a that the in big price play is to And putting that to to for come relevant. digital that relation I there's a why pricing value. huge the more as is in have expect a that the New in the and power say enormous digital week itself our enriching just $X component pricing work that amount value people full at has relation continue generally the and emails an the people and power. get I'll to described journalistic of we're more transition And from of subscriber one into right. to rise experience going the app but -- a product to continued That's who price our And think The much going just not on the that's in Times York to journey of

Alexia Quadrani

sort necessarily also like churn and for don't basically question price it similar not saying sounds to did in we retention but rate and the we you testing year past you're probably rate of, raise -- company, is any what see from earlier should rate about So necessarily being say I there's we fair? that a your the in commentary the research the the pickup tenured -- on anticipate the as how churn on about that not progresses shouldn't or subscribers pickup probably will in wide general much

Mark Thompson

in cohorts from topic these We I a question moment more But is about no we're as about and period loyalty random we how don't to And as groups both in sample the and retention is want moved the half assign we also to that at much getting -- the develop. continue these XX-XX a the we week just as -- point step-up. years believe broadly that those Roland both we because split retention of to to also made jinx with our to early the we well back a it did half that Meredith the Meredith getting from testing -- -- to many period of Alexia. And began better. $X on price as people over will the -- to with more areas that It's go which when two a to $X think there's bigger the that sophisticated price capabilities points. said step-up with just XX-XX

an like area optimization. still is room doing everything for this in else there's where we're So digital we think

I generally low holding retention levels go feel forward. as And about we to so say would yes confident we that very

Alexia Quadrani

read. ability their help subscriber? improved reader it been readers your a then to e-mail doing requiring the much to curious convert them I'm has to the think which much I is commentary And advertising paid continue to the jumping you've may And on also -- how your about register couple now that to how quarters to just casual of front?

Meredith Kopit Levien

Yes. short lot. is answer Good a to question questions. first your The

So access on we're so after register figuring what register to out to We're we're how in of hard can number engage. people really content. terms that seeing get they they get we them the compel who work to to pleased of with at return more

So we're very many on logged incredibly we're the focused people on at site given are with We're how seeing any time. there. pleased in what

did And this the is registered engaged an sort because then there's in obviously, of And areas. user of all we much enormous X more likely those convert. to effort of amount

So a we and I lot would improve results to to room more still kind say, driver it's there. big the have a go of

the hard advertising who more the the to you're we have getting that to And -- we increasingly build as ad that well. that play were we're a business. the intending direct we're at experience game, personalized long delivering deeply we're with relationships, at game On side and work users long whom engaged that kind an digital of have better at different first-party data to is

around a take that It's right it's first driver way for first-party our set the see long that we're becomes things where is a the This to privacy into in material the us that ad our approach get you'll become supply and approach in -- a water for business, business. -- makes the but do growth competitive some confident expectations to to data. begin time a going year to

Alexia Quadrani

in last Apple framework opportunity News. using the an renegotiate as And one at to and licensing on that partners other post-Facebook there Is the change I Apple then of a with framework? leadership think even sort just -- or Facebook kind deal of

Mark Thompson

in building having be our inside gain maybe out think the us value in from digital our of. and platforms value enjoying presence, help we summaries principle broad headlines, firstly So Alexia that pay -- reflected value and that both some that of what we Times journalists back the said Times their for presence is, they're And the real of brand to environments. which the to should that

it applies apply it us just part doesn't got. to principle, ultimately broad It Facebook. every seems -- that That to we've to

individual And Times to review so names, The as forward, significant every go going to a distributing, in than that company forms. not past. our do we different into expect we with I'm different the relationship philosophy go are This is but

doing In that our balance of platforms think there a perhaps has users. to past We changed sense were a content us value by the the was distributing favor the now.

this. should you so expect And

going not all should to but and I'm years. of our going coming with what's sitting the and to happen, to down relationship major you expect months us see predict over the platforms Now discussing

Alexia Quadrani

Thank you very much.

Operator

of comes next Vasily Cannonball Our question Research. go Please ahead. from Karasyov

Vasily Karasyov

Good morning.

to we'll clarify X% the be understand I it half digital on of Did the where revenue advertising the growth. the will year, wanted that or full Just comments sub year to correctly is in see growth growth… the come for the second going

Meredith Kopit Levien

tough with that half near-term I'll medium back in scaling just data based still would And a call I - to We're engaged we I'll business growth subscribers just year strong that but first I've the of the Alexia. in expecting short the expecting said long refer very what through to from moderate over deeply got we've relationships first-party what comps Mark sequential as improvement which to is and we and the ad direct we described optimistic comes that. term. haul the on can remain have are

Vasily Karasyov

A Okay. of couple quick ones.

So, progress be the for growth great? within in if year-on-year will is would us that other to at Facebook from of idea you And the give Daily? it that of seasonality the The I how QX look some could year is revenue the assume fair if guidance and

cycle news feel will become as is the question. do the your less acquisition with go? a subscriber the you bigger less I one cycle we retention like picture on and environment thoughts less your appreciate overall and important this and subject. if the So the you don't and missed growing And now it, news would think important mentioned news I but call. I with sophistication I'm sorry,

Mark Thompson

Roland, to go do want other revenue? you first on

Roland Caputo

that Sure. are against it other there's to The piece be a we year. The Weekly, it, QX driving if is Weekly last last revenue launched biggest one item, first I growth. the which chunk of will the be But in Facebook as since comping attributable pick were many there line it's of year. to quarter would but hadn't items of The zero

Mark Thompson

can I perhaps start. And

I debate politics of any Times XXXX, one and that, on think the is But I if we thing if Iowa been of address is the an think we example. beginning example. important cycle. death ever others Meredith be maybe important, to the example. impeachment anymore Megan Bryant is both any Coronavirus the reliant recent beginning another were. the U.S. Look, on presidential story. weeks, election clearly would helicopter big and campaign crash could I and but Harry it The look in ever many new both was at The say not bushfires in and another is whether I the there Obviously, very, very the The Australian another tragic Caucus many, other have the Kobe be stories. will to story will been example. run-up of both have

biggest And series. journalistic XXXX mean, the is I the one as Modern the think breadth of a in of I its of sheer Love of the successes Times The fundamental strength offering. adaptation drama is

to thing more to and I a that's of digital range very, suggest a products, from now to think in of way think was the much a front been on we have crucially, incurred was about fundamental that honest improvements journey. kind be only was customer much, backed engagement And that by There's XXXX faulty And bump. digital on. really going broad -- of the going XXXX, very it analysis IP. We today

up? So you Meredith, do to want pick

Meredith Kopit Levien

Yes.

in of our but is Crosswords means increasingly we I'll I in are that our role form all a lives new games think add, and just success And doing product, have people's suggests that our and product products to think in at the we time even the we've if right. just to way very all get of model. that launching playing quarter, make a the the new seen in they're look And you just prior Cooking that. as a broadly big I number into opportunities them habits. and

called year. great The more think example. Field. about but of about four out launched or politics And is launched I see this much podcast going not ago, I you're just a audio to a We three we audio new product days coming think politics,

Vasily Karasyov

Thank you.

Operator

Our Kannan of next comes Please Barclays. question Venkateshwar ahead. from go

Kannan Venkateshwar

Thank you.

if I coming the I if in first have the year you have Roland, about talk of you first do could. because, then of the And could you of and increases price roll-offs. quarter that rolls price course, this through year. the the three is, mean cadence rest promotional up So the

conversion behind of at? this us period then you And from So, the flat it conversion process you the of mean when price what look can to great. users, the time at at a what it Meredith, Is look rest if year, to at you perspective, that it economics or unregistered we the is the folks at the conversion sense started there before convert, year? get the paid promotional price compared registered or like versus I as off? some on looks by a would you give point price, could growth registration is requirement? exit just you is could that And which when the XX% be the to dollar if touch you $X

York that Mark, force over from is aggregation your area? and can take And News bigger perspective, New that its become attractive in that to it launched to this -- isn't product recently given time the from Why fact something a that Corp curate Thanks. Times news. just also price aggregate

Mark Thompson

you I one? the in number So, want four Roland, that think on was end. question comment to questions But do

Roland Caputo

I number remember I question rephrase what Can I No. question? you don't what are wasn't me There about. just cannot. asking are you specifically the -- so exactly many actually line sure questions. one.

Kannan Venkateshwar

Yes.

promotional have subs of course cadence promotion. because have new then of coming well in and you price increases roll-offs on increases as So as you price --

Roland Caputo

Yes

Kannan Venkateshwar

mean, of cadence growth I we this over price a least we at declines point we The flat instead year do are... to get as to of get where

Roland Caputo

you are you talking ARPU? about Are So, about... talking

Kannan Venkateshwar

ARPU. Yes

Roland Caputo

I what That's thought. Okay.

our So, to we're ARPU over next quarters. the see few improvement going in results

the effect to we price of flat. if sequentially get ARPU, see we'll could is the we're the increase coming I think that ARPU. the sequential and possibility overall, full talking think the But we what flattish continued rate you'll we new we're we the groups somewhat that power continue year-over-year subscribers think a depress large will at the see the in think promotional going of bring both see increase. that over sequential ARPU because through in the But when with the – of improve a to course what of of pressure we us price to a year, decrease when full will get on is,

Mark Thompson

sheer people very when coming of shifting. figure that of here. is kind a the including going the good in people But a I numbers the on obviously, But underlying the which on way mean, in, us. affecting ultimately news which try lot further going ARPU numbers that's and why in coming is complication aggregate out and is in you total there's growth what's it's of for fact acceleration

Roland Caputo

believe that one there's I as continue to is specifically, including those getting subscribers pivot going large, in do we'll to there. where because of new point large to new see year. use and then positive the more a price we that think on to turn flat positive said, stated, not continue we're new the subscribers think numbers get And if subscribers. coming you'll what of will to of levers we've larger a continue Mark we transitioning about And this think you price ratio on effect the increase, prices, higher to And to and it those still file. of bring promotional using a due that the

Meredith Kopit Levien

That's right.

week. growing and do number if on which or yes them a a a something I is subscription of are alerts, me of and both. up and engage the download $X with I does up at is see question, or meant we app being we to people you other like different because representing those sign And your $X registered means $X offers? asked sign our to and things think is take users you on confidence follow large are presenting set-up e-mail read our the people for We a And in bring week tab our them answer can for the engagement. us that actually do get ability to tell the week a with next as

they more We're into more come such them seeing any of is feeling ultimately engage them that about where that And have think, on get cohort to we're don't to with question and in users I they are promotional other it's that the a smoothing begin a as logged more and get that. price. thing ultimately to we at relationship us people value to trying always is in to That can increasingly we model, more a you're say think price. got the get So up the realize I registered out have model which and fair you've regularly said, are relationship, you in confident we more who in regularly. asking a engaged is site

might and to behavioral coming weighted is we're this some I for still why It's better. only go think over said Alexia people first heavily users potentially promotional much and would asking that who I'll other Reg time up you certainly they're us converting and have still change. offers could is as if subscribe anonymous convert because and we put And to We people on But we the well say were friction G. plenty say, ahead model. Reg reasons. from the to conversion not come as thing, I because they I do flipped emotional most today. G of are

conversion still there's well. think as we So in room anonymous

Mark Thompson

products we news with being aggregation create in fully call question. Kannan we agreement Times very focused site. as not Board can't The firstly, place currently intended that is it want commercial. Do down it. simple people work question I Corp business many audience about it, Corp active Well, for News whether it trying excellent yet and the it's together content produce It's very, it's we on logos prove it a out about were the which is us. the And the for which should find and to digital of with think point indeed a for our to to is including content journalism News Times and to any which partners along pay Look, in we're road? used to aggregation a in loyal willingness asked that. to to other – world's attempting millions arrangement I deeply engaged something. best gather site model without use another or really print the then whether is indeed be people's to content go are The

as individual first generation to difficulties. it publishers and of algorithmic of incredibly other been theory we fraught the algorithmic with aggregation of the clearly. don't part with the company. bad broader news with offer service. rule it's to It's the news to don't path But seems for partnering or exist as me this see bundle We think main be whether forward human generally I to human out headlines going It's strategic or of Internet, world's frankly in part plus for providers that news idea the honestly a generic were

look our about them at our and as it. other just we logo on of it So as doubt presence the with so we'll almost we see use as some now platforms frankly in with you heard news there to No talk we'll but that are the aggregation, forward point at forth a kind Times. which of York me commodity with The don't out Internet other for way a is New as platforms earlier, the say

Kannan Venkateshwar

much. you helpful. Thank so Very

Operator

next Huber Partners. Doug Our question Please comes go of Arthur from Research ahead.

Doug Arthur

Three questions. thank you. Yeah,

you a future with First on The is of Weekly, current it? after or can remind -- the multiyear talk the FX, is is this you can just there commitment run about

next know about -- platform the we mentioned of The the monetizing can of couple you success that are of, over thoughts Obviously the Daily, kind podcasting. years? Meredith, Secondly, what you

subscribers, you just finally and sort And there? Thank you. update international on paid of on can then thoughts your us Mark

Meredith Kopit Levien

want a we're I first the shot proud maybe work. say The at of incredibly third. On Weekly, take I'll to and two great. Yes, the the

will some have with doing change any in know very to that We work impact. we're FX we're don't with So scenario, will had shape a I Hulu. our good envision I any experience that them and take. now and big it way far our continue a what working will what through in would we've economic say partners

Weekly. The that's So

monetizing, a well strong. that slightly CPM you That audio monetizing the demand ad podcasting which market are is daily answer, as I quite the demand. today an anytime a and On incredibly I’ll for of a that high audio, amount business say in and to give we with is it abating brand enormous audio don't is great soon. in particularly see longer habit-forming

So as we're future. foreseeable business the about that optimistic an ad for business

on think particular calls, I we're We to which other confident are I this just audience. ability Daily a Field, earlier week, mentioned use prior I've as in also is this talked in an building launch already which shows. also about The The and for our pretty launched pad audio

saw of launch the in feed The XXXX Daily. You us

audio. and to audio really unique us, in The distribution particular world our in So Daily building for other into a mechanism general presents the

where running our about The the I'll I commercials podcasts listen regularly is on and who call essentially if will the that we're of Daily for now described Daily are house is journalism. And The say what effective. our The pretty other that ads, hear we Times that pursuit but really other to thing you work running doing podcasting The you are people

way and a ways. generally into we draw And the out don't we that over to model to that stimulate people will more funnel. time rule even So our we in do see it as direct

Mark Thompson

achievements great millennials. daily on engagement been on of And millions basis minutes of of to specifically XX Daily a the of the -- deeply one smartphones plus think I engage typically The has

audience of you this generative users advertising. terms extremely know is takes where It's The up potentially deeply really time of says through for future a of cash who Times. engaged the really foundation we which the as building Meredith is exactly an engaged So new for activity New York loyal that us It's in over subscribers. body knows frankly

encouraging. I very think So,

potential. sure international I'm me Meredith -- bullish but let something me international. We're international, to with say about begin our about want Let just very

disclosed U.S. the of from are XX% current about that We over I we think outside the file have is rate subscribers XX%. who The subscription -- run

as to of works the by markets introductory very the big out complication in to experimenting is kind of, this including further it currently the with a learn streamers deep we're fit others of the at about We're way track points. around to prices ARPU, locally price and some terms world. And and beginning different the from there -- trying of moment relevant

in pretty results The entirely terms new And say levels days, this is Times. seeing early although again getting of would in in striking I interest of we're subscription fairly

one the a thing it's has been is think -- of arrived see I going story story good strong the I Chief since story. number I as it's faster been is domestic domestic XXXX I which pretty the I and I subscribers to XXx-ed international mean So, as you're a we've in obviously in Executive. already -- mean very growing and XXXX mean than even think well.

a to But very would forward we whole reports like really about world. they're for the stories. idea I growing users U.S. consuming and proposition really about the users, in reading is the looking we're striking I really content The next But domestic this say world international And think which they're -- growth. to the year world a news also as and just Times year, organization interested us. of And seeing further the

Meredith Kopit Levien

say excited we're we and hadn't I been last just to in right. about particular Asia beginning quarters, markets few there. is a growth the I European things markets been And incredibly where certainly we've so well-penetrated lot two see and where beyond we in it. before, U.K. would growth opportunity of the see some focused probably that's I'll that. in markets think we're One add to real in outer

just described, as it's and the an we've there feel there's about. some got in business, it's part it international but on big a Mark see we focus really opportunity what for whole long-term Also of experiments a important not we particular the which good that market right The Times of now,

And do to well at our that to is pointed being that to business, organized many tests internationally time. say in I'll our the generally just internationally testing ahead I do on operations the approach most add then complex of Mark learning, running And ability just of his script to our would multi-variant us. and same more of digital improvement the that really

Doug Arthur

Great. Thank you.

Operator

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

Harlan Toplitzky

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

Operator

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

You may now disconnect.