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NYT New York Times

Participants
Harlan Toplitzky Vice President-Investor Relations
Meredith Kopit Levien President and Chief Executive Officer
Roland Caputo Executive Vice President and Chief Financial Officer
Alexia Quadrani JPMorgan
John Janedis Wolfe Research
John Belton Evercore ISI
Doug Arthur Huber Research Partners
Vasily Karasyov Cannonball Research
Kannan Venkateshwar Barclays
Craig Huber Huber Research Partners
Thomas Yeh Morgan Stanley
Call transcript
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Operator

Good morning, and welcome to The New York Times Company’s Fourth Quarter and Full Year 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded. I’d now like to turn the conference over to Harlan Toplitzky, Vice President of Investor Relations. 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, Officer Executive call and Financial the we Kopit Meredith On Levien, Officer. Chief Executive President and Vice Caputo, Roland and Chief have President

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

could in impact XXXX Some quarterly our are of uncertainties the XX-Q. our updated risks included Form XX-K, on that as subsequent and reports in business

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

Meredith Kopit Levien

games good and was toll, race devastating At digital did and growth reckoning its digital none Harlan They a the contested profits. to in end meet that and results. margin driven The a have and XX% percentage XXXX, reverberations And a for products and with cost was management subscriptions initiatives and was morning, of million and of to previous Times records total X.X for digital operating of digital in quality and and human we presidential two disciplined print Thanks new cooking stepping with bitterly rigor slight subscriptions annual commensurate and prices mission. we digital last broke a saw revenue strategic with lesser in ads. could to our acceleration Thanks, continued to times need million XXXX now a our increase has need. Their was news net at increase annual news, news, success up XX acute has economic promotional products, higher year high acceleration and across X our all mark. mark crossed first a subscriptions one-year with as justice, national notably, audiences, ever election at journalism our subscriptions. imagined last advertising That many despite in levels the year tenured albeit record the the so of colleagues led The mean hunger million ever across everyone. recorded nearly, business us year of our strong year. of pandemic, energy as three fluctuations. historic on a an real for our point consumed the cycle subscriptions social adjusted from which price loss of over to degree, $XXX total work, subscription continued and in to full rose a X.X its year, the all. independent a The strong revenue, by increase U.S. to and my increase relief compared pricing it news unending net and business million subscription All

reader tools still traffic. week, drive vaccine to readers coronavirus most our weekly to doubling COVID-XX and comprehensive kind like their nearly previous came election elevated Times During information our global record expansive the million of and database continue the XXX among

future. tell drive audience storylines can’t outsized growth the which I Now, you will in

more to could outlier we XXXX change and regard any believe last XXXX, Just as net net in deliver additions XXXX. are I in addition. we fluctuate, whatever growth like said we Indeed, capital. earnings few could growth in our in an call, but subscription I for positioned the news which global assault the drove have will a quarter. mean news And year the nation’s and than predicted cycle, continuous in well at as variability audience considerable a pandemic will or devastating violent given cycle subscription

over ad registration-based so also do our on our and we it time, to year The drive conversion. There easier substantially with them we’re that grows, making into understand year in impacted and better quarter. of pandemic a the experienced Advertising than plenty encouraged expected are many performed experience of fourth all our our audience business to to in return, some need. ability hastening moments convert in of ad print understanding to by a categories, business also And customer than high will immediately news begin some more saw are which at they in – traditional to see of journey stabilization in but others, our passing our who decline readers digital least signals and of breadth we and each as quarter, and the midyear. value. act times’ We’re unlikely

targeted potency of ad if businesses, and we’re second our transform digital advertising ad we revenues fact, would today. apps to first-party and the remain continued In programmatic data reporting services We increasing audience proposition. the of to our are audio and XX% year, advertising, half closure of of XXXX, Love, for and biggest at open stabilization which our that unique In the products for media drivers. the value our from of HelloSociety first-party teams market advertising rapidly declined ability to products, beginning performing introduced removal our well. more growth full-year instead Fake our credit control more you of modestly the In much our the have

$X by $XX from podcast up recorded in portfolio million audio revenue expanding XXXX, advertising our million programs. also year We prior of the in powered

the for Serial revenue sell strong we our shows to and continue acquisition benefit Life. steady into This rights to advertising XXXX from American podcast demand other as and to expect as we see growth be against the of daily and We our

a key strategic first going sold strategy XX out me digital digital these quarter, next decade Now, proving at first, Last be has for on Times end the mark about ago of journalism beginning transformation first through like decade, the been have our idea. all the year of the also picture and our feels our this breadth company. Year. point report. fastest stream from gain of that the times, forward, record a revenue differentiated first than three subscription another strategic back be and years close just subscription investments our two all of rely subscriptions. and product will gives standalone into long the overtook of work reflecting XX about also emerging this milestones which last Those plans A mark last I’ll New first to Success we’re The in its digital growing the and set digital context what of more new subscription digital broader you subscription we’ll been we two continue of year, revenue, best quality largest. They these products. results a areas, years as we year, our achieved decade all revenue let print we paying look news direct-to-consumer a to made for will scaling value news. on our start forward, most with news, and it milestones,

newsroom continue in of biggest time. So, X,XXX to covering coming strong thoughtfully invest around particularly in stories the the we’ll our year, our

make talent, designers, can One unlocking we’ll product impactful. accessible, of people’s the that in managers, growth To beginning in our that scientists, just digital core convictions and whose potential, the is and our journalism about of engaging, decade data lives. tap adding product product and engineers, more news do be we’re the also continue work digital all will our at next

personalize Our Time progress product to XXXX, tech format begin news for our that plenty our story expanded all needs. to and meet architecture created investment beginning and we Well, aspects product or underlying increasingly consumers; new our of of culture visual improved journey, to ambitions. our helping in is, up-to-the-minute still to to ensure do which strategy began of the and increased have our already customer our to experience we is are coverage, more to and is investment engagement. work journalism, use evident In work our match data growing drive have make of

our platforms of improving lies focus Some products. adjacent growing around in ambitions our on news those

alluded product past, growth marketing development given products and I’ve to games have see cooking, we these both and expect invest we bigger more in As previous for market even opportunities in years. to content, in in and we their potential, than the

subscription for a possibility audio test way also read-aloud Audm, in product service more for and more We even see XXX billion after digital to million a it with far the million aggressively hard lives in acquired There Times people’s more to portfolio. Times XX bigger we products are the the expanding subscription This annual product experiment we of launched about We’re nearly, in has and And also and speaking more expected people mid-XXXX. the than opportunity our valuable, relationship as all thinking English. make digital $XXX digital meet those subscription an Wirecutter year, we’ll with X.X model of years subscriptions subscription news and the a pay million revenue, with proven reading pay imagined. willing York New to brand we valuable. for of in

control So, there from Times we cycle business quarter, as not management in growth in subscription consumers the imagine command is notably, so hard factors of more more levers ads legacy understanding to to I every than our should subscriber profitability. that improves, pricing today. costs it’s power, base with could drive mentioned, fluctuations to and where quarter-to-quarter. that influence But an are also our in is improving a larger our continue having our in will most substantially to from net the of External passing disciplined variability as too our of news

we these profitability in even invest improvement long-term our in variability make the in that As modest progress in said, continue continue impacts see areas, years will to more to the XXXX we we to near-term. That aim to if with that follow. come improvement profitability in our growth

people things we and let words I say to build as over evolve continue a and few Roland, we’re me culture Before grow. about to turn the working to our

work the we heartfelt thank was our historic all a Chief fulfill couldn’t new close Welch, with Human and around our critical amazing on so, did with of and of has a their New whatever work come always who the team here, of differentiator best-in-class extraordinary Times, and company kind level major to that disciplines. you we year team to role a I And over commitment I’ll this the them. we’re welcome without that, of mission, and mission we hard our the grow scale month. a people, hand rest passion happy last of Officer, Roland. center at things Resources do of most of world, our challenges Our talent of been almost presented all an because work, York from in our to our to drives for times key as help to attracts, that develops, our and of being the the in leadership at do, X,XXX who very team Jacqui me to in there work operations, impact I’ll

Roland Caputo

Meredith in our Thank as Meredith, period an adjusted a share same business approximately incredible business. give net us added year. is only digital slightly Adjusted operating digital ability our of results continue the and our earnings in which prior to product reported We even you, $XXX subscriptions standalone the year subscriptions. per net good the net XXXX. for XXX,XXX was higher to in subscriptions morning. $X.XX and it’s core we said, profit diluted new scaling news products than and total than to of lower million, new new our XXX,XXX the confidence $X.XX quarter digital been more XXX,XXX

quarter, of revenues of share in This $XXX the largely the to and And new both revenue with to is factors. result subscription the the XX% while quarter subscription second acceleration and first cooking and ever XXXX XX% growth, quarter, was now fourth of nearly digital-only for net XX% had subscription subscriptions. international increased The end additions domestic. three XX% grew with in in second year-over-year as subscriptions. continued revenues the the XX% returned the Total in outpacing rate second, in stands third in million. at growth international games the growing which this of subscription only rate quarter the outperforming quarter XX% the strongly, nearly almost international of total XXX,XXX subs a XX% digital of the quarter The domestic quarter; subscriptions XXX,XXX best quarter. we was

well And ongoing the first declined increase, approximately price the first ARPU to the in week subscriptions number of of subscription the approximately The domestically, areas both to higher U.S. and began in in the the offset outside trend. of many our than percentage promotional prices. quarter-over-quarter subscriptions, X% the a related to dollar from from an more tenured the quarter continue for X% subscription benefits declined newly-acquired prior and subscriptions, as subscriptions price finally, digital deeper late positive per week promotion, First, solely promotion versus in strength the mostly versus price our we’ve second, have approximately improvement compared retention from graduated prior impact quarter. year large per new past news domestic Digital more compared subscriptions the to dollar introductory on ever rates the prior graduating to quarter, year. increases who promotional added and the year full the point the quarter. a on as which new and from XX%, subscriptions. ARPU X% two prior

a One, and digital following strategy a the from impact tenured two, the throughout tailwind We pricing provide result expect to ARPU digital factors. continue XXXX, from our increase price digital subscriptions, news subscriptions. promotions, discounted as on the to to of graduating

subscriptions graduate XXXX, percentage print year-over-year expect the three implemented additions we demand digital to people decline, early revenues increased net working commuting reductions five copy internal with print Total also travel decreasing subscriptions XX% worth year down year, X%, higher side, lowest with in in digital in strong circulation in single sales. offset declines impacted by subscription the of in businesses. XXX,XXX decline a in approximately vast from in international that domestic copy the pandemic. severely approximately X% point It’s programmatic, offsetting Daily the price to approximately over and year, largely the on declined advertising our quarter, a efforts. declined daily quarter as lower and declined with partially approximately quarter X.X%. XXXX, The driven increase circulation Sunday prior million during grew news will revenues subscription last home subscriptions advertising revenue and prior price to as open compared home, another creative points in print losses by XX% course marketer also on as Sunday. XXXX. in and business quarter delivery be more the environment X.X% and in home X.X years, number the noting pandemic Total contributed with delivery of home to closures and from delivery large we’ve seen approximately a bulk subscription due declines. the than XXXX. the were in result the expect subscription the to continued XXX,XXX compared percentage print the Given in prices we the one in growth while declined market of The services the widespread podcasts nearly

of noting and better on As gave were early XXXX, of our rates quarter These turned $XX as within quarter million revenue better part a advertising. expected XXXX. worth and the that we digital a responsible revenue agencies, market for earned in for open programmatic year It’s market December, result Love is our million XXXX HelloSociety of advertising fourth full also the guidance in largely reminder, approximately programmatic a apps. the open than $X fourth we than closed Fake early in advertising in and our of together off

company’s XX%, employed. our television further next and increased fewer months, and prior to and subscriber Sales items XX%, area luxury digital and offerings primarily Our in growth. to driven engineers development due to of $XX than $X with more lower two the revenue of increase our We servicing X.X% revenue Other an print liquidation settlement cost delivered price approximately the a obligations to revenues. events benefit content to digital adding pension approximately Industries delivery, declines core reflecting attributable print approximately decreased appreciation ensure million, These ongoing which on costs hardest. the lower operating the approximately headcount standalone an declined of We categories assets, more journalism X% as referral $XXX of as higher in costs. settlement XX drive by quarter, year. costs General result reduce a obligation months as of period as last largely distribution recorded costs Adjusted lower in our consulting lower gain, XX% stock-based year advertising marketing were the first-party partially Paper in tax non-cash charge, result expect pension the and this the pension and XX% special quarter, in Product fourth continually Madison the approximately advertising benefit increase slightly decreased live well to costs. from costs administrative of journalism a hit sales share entertainment, million. same X%, episodes, its offset the than awards continue largely core production of pension revenues offset compared the in primarily product costs. quarter. investments news Wirecutter the and qualified by largely servicing XX by headcount an a XX% income data is of growth in company’s plan were compared in distribution the advertising plan number million due million Meanwhile the from the transfer stock by affiliate with by had costs We company to printing. the and development in increased fourth into of revenues over charge. higher allowing advertising $XX less overall to approximately and declined we commercial quarter, with to media than and to in as

of XX% previously, every with around to rate. said approximately the variability significant dollar quarterly income record we rate we’ve as on we However, tax effective be expect marginal our

is calls pandemic. the with weeks our the XX% funded reported an funded approximate on early of we XXXX improvement XXX% ended COVID-XX earnings during plan pension surplus. year $XX This the status May qualified from Our an the million

intend increase continue we $XXX to an credit long-term, funded the remains and working million, of $XXX increase securities available. cash ended these quarter balance the status plans. million sheet, of a with compared million, with balance debt-free moving to company third our at Over quarter. the line the $XX the revolving to marketable of

previously per Given years. allocation plans approved balance and to the our continued has dividend the our when the will in third for a fuel we board stated, several years, independent to sheet. manner management relatively keep of invest increase continue the last strong the have in increased review; in results of the maintaining capital we’ll flexibility of the to the as growth board share therefore strong we three directors vagaries the $X.XX digital the and to market, $X.XX and dividend to further per presence over to management the approach to of conservative a whereas past in business, company’s to under close want order continue sheet our quarter, take balance the

adjusted with of which growth. with a to increase compared overall knowledge the to approximately based we’d Let outlook decrease advertising that, up XXXX, first first increase fewer open low the Total for the to me quarter first television with of digits. single drivers as the is and the we operating are revenues are advertising XX% the digital-only increase as to the expected approximately evolving investment XXXX, into mid XXXX, our our the in high quarter quarter conclude mid could in approximately are XXXX XX%. subscription to of to are digits both XX% the and digital assumptions, happy of be expected increase the Other impacted And by operating and teens increase pandemic. revenues compared on of to compared XX% with first to subscription and for revenue decrease expected result quarter are be of costs it expected digital the expected of current subscription questions. to expected costs revenues revenues episodes, to in to XX% single with effects

Operator

go Instructions] Thank [Operator question Please from Quadrani from Alexia ahead. is first The you. JPMorgan.

Alexia Quadrani

just give going subs very should think some we on much. color maybe I that. more you Understanding don’t guidance how guess, you but forward Thank about on –

of fourth the months, the any pandemic? first more you And and my look then on year, seeing you sustainable or just this, think color compared quarter focused you how I characterize and from or were I the so think how saw the the record what I engagement, do and you this of on XXXX far guess, in of what guess, you half at year even impact last when in guess seeing the engagement outperformance you or year of the So, it quarter? to what’s much do terms question it second is the in would in there, in coming the came more is crossword driving cooking how you’re

Meredith Kopit Levien

raise the broadly more jump in sort than we prepared the XXXX, morning, good I’m enrolling, your reiterate Alexia. is And in just what in see should remarks, the to see, is models. do we year, Great, that happy saw start a less question, the because of I’ll you in which said of fit. we growing you than to expect underlying Yes. of of I in strength what on as lot first XXXX. saw I’ll

think feeling being convert churn lot growing really able news fluctuate we rapidly. with registrations but we hold register cycle. new of do to good sort have So, audience who as bring despite that very people, we’re about and base do will very, the in to even broadly to a happens, of room still the

and and cooking, know So, I saw say, audience heard ability second engagement if Certainly, return in think products, we what role, of of I little the those we’re in playing and I’d was would those prepared in going more the like, is more signals people you’re really as put the of both into invest think do interday opportunities interweek cooking optimistic, also news more we to lots bit and think we a of and I and to more soundly correctly. beyond, question to both broadly say, home games, there’s your it’s have we lots because in an opportunity we to and growth on sort potential effective pandemic get them. us got played remarks, see that of And I a about fluctuates product year products real think to and quarter, and our we’ve what said I’ll changes even people we big we’re or improving. but cycle either news that the in it reiterate audience, this both development. markets

I think comes I I prior said call; of games we running a brought this we’ve new hopes the got room business. say to just of It in industry big lot we’ve for that leader games. and of out in the a both, there’s would But ahead us. think on

Alexia Quadrani

to many drives guess, ask were I times. I quarter New everybody asked York specifically, I sort fantastic. read fourth and numbers And fourth have I on said of it’s the guys just when you so I wrong. different a if curious, Meredith to because maybe, always quarter clearly, what all drop-off I’m contributors that people post-election; mean, the engagement being and the assumed not Trump way, a that probably about guess you’ve it

I’m wondering was how heightened elevated the just given the the So, election, that news much very in sort other of all post quarter? remained even engagement

Meredith Kopit Levien

cycle it’s see, still feel say, playing I Yes. in and plenty interrelated now do we out. with I month-to-month, strong the remarks, that on. period would high. quarter-to-quarter. still We are prepared I’d we There’s say stories broadly, going this general, are said multiple in we variability but news in and see a this do a still very of pretty still

cycle that will getting news big shift and subscriptions. and change, which better the So, at and we’re model of part is extent the we’re driving to part to big a a the of engagement getting return, –

Alexia Quadrani

you. Thank Great.

Meredith Kopit Levien

Thank you.

Operator

John is Wolfe The question go Research. ahead. please from from next Janedis

John Janedis

then you one Maybe, question the about in and one cooking. games to talked – Meredith, morning. and investment related Alexia’s separate. Good

there retention from, with how different think scale terms sub both is a separately, increase? news about call the it, seeing that of unpack little new over and been does subscriber the profitability a tenured the price subs. you’re of you following lower the on quarter relative are the a for I in then Thanks. promotional and digital profile ARPU, and to more, subs, the what we’ve can long-term, much if

Meredith Kopit Levien

Yes.

if three in. are in will I that, Roland questions; there one, think jump I miss

And don’t and just digital the as say think keep news And do, affirmatively, Let of beginning we as in live. prepared news of just what needs that not of work times into and that of has to and the has then real more said remarks, at different beginning a that it’s view. me room we I news. live last meet developing are in kind can I more good year example real product. be there the the work put much than And we’re the at think the gotten, our and is

come. we’re is that. just in more to I were for than to real-time place And likely So, we be today think something people a much previously when unfolding we’re beginning in

any about to generator us those from has to perspective tracker, roll and case coded I the of a which out return is other vaccine time, then on just with the get been how think the we’re able were also a do of how if format number imagine texts. formats just to subjects. you tools think now a audience, vaccine, we can the varied you applying in what the huge beginning and more of having at information many happening from

that we do, – that’s the on I and first ambitions clear. for depends adjacent still that, answer the as us question. the we’re that that So, and for I sort there’s want that huge in to be a think news I said, news to opportunity optimistic so the And got and that I products. we’ve other in premise of model big particular. I news and products; And growing your to said, beginning and about I continue on really that think experiment Wirecutter of big engaged I year is that and others to my some the to base really as the subscriptions. big our growing news, Audm, a have prepared We engaged in beginning last mentioned is in think which just subscriber to ahead we depend in role a is lead possibility degree playing audience we with acquired remarks, test well,

I’m I think that it your think, was retention to you’re you just, week about on have and other repeat right? I price so asking I subs, is about question think going dollar

John Janedis

piece. there back the and of you in different of from terms or Yes. relative it to the say out internally? do taking let’s them price, games on break that And it was not is based call the out that news then way that it profitability products, profile

Meredith Kopit Levien

data using and actually very all about which intermediate than in beginning said and to that particularly, Well, products, and having price general, all that better think retention should our in and or portfolio bring the them large ability when events a you an science, science week up, a is dollar say a versus using ultimately, data better overall algorithms looks over answer, And we’re which particularly feeling think go us economics, I training step-up to better be in and feeling of on people to let I’d the we The up way into big during work. could I’ll we’re really unit the randomly achieving, time. prices, to last get either step a full numbers which news of over say question, I’ll about but focused essentially call think you higher about we’ve that price time. good good been price still I

a a price is then so to certain Roland, And us. optimistic promotional a we a for add. point you at to well at price step-up tenure don’t with if I price that higher year or going be of at and anything working know of very continue moment to year have sort full a

Roland Caputo

the holdout, choosing Yes. a that the versus want up XX% little retention model the got subs have the we’ve both max, of full go to chooses it step-up significant that’s a constantly statistically add test XX% sample efficacy model color beating on straight I’ll And Also, the We’ve like to to price. either the to step-up random number going by pricing price. Yes. because the that’s bit we’d of we full of because or and model – a amount. a is And random to inched the question. sample. a

price, slightly to full XX%, go says model adds very who than full those, good those of is proof price. So picking on who bit those to at the actually ahead models retention is have to go that’s lower are a that which the don’t, to and efficacy a kind asked of the we see price now than elasticity real the more now, to of XX%; the straight more

So, on rate we’re all a overall, that. as And to offers. with happy subs the our retention had quite we what on group is those similar previous

you can So, core for about going. cooking on price we interested question side. happier that’s as profitability the it way whole, Meredith really the but versus on we’re think couldn’t said, the in with if news; the be

So, month and is a core a is cooking a product $XX month news product. $X a

we However, same and XX $X first to don’t discount the news we weeks cooking. do the a a the for week product with

So that’s gate. out the product kind of of a $X

company the digital see that. the can economics time, much don’t kind So highly on for of profitable But over both unit the side those you profitability together. that total of very of we again, They’re really are too the come and good. focus

John Janedis

you. helpful. Thank That’s

Operator

ISI. is go from from question ahead. Evercore next John The Belton please

John Belton

Thanks. one have on bundling on and one profitability. I

bundling; the two So here. first, questions adding on first to

year-over-year, of described to second subscriber, games revenue being subscriber if which that includes all percentage which the down that then trend this what for products, product types, line would from look looked now are kind ARPU one and and the cooking And improving. trend your – as Meredith but subscriptions you those new at how per coming profitability. is digital relative within line earlier on of Roland So base,

expecting prepared said you’re XXXX. in profitability in remarks, you think modest I your improvement

adjusted So be just comment appreciated? you talking income there there operating operating are dollars, would more any adjusted margin, or income specifically, about

Meredith Kopit Levien

why aim when operating question this under take first happy can modest second to referring your your the excited on investing in question. I’ll I to adjusted about. take the I – said, profits. question? then go and degree, was you the first as I’m year improvement we’re see fluctuation incredibly Roland, our you in Though, don’t future, first our we go to Roland, other on as

Roland Caputo

just finer point Yes. a first on put And the one, John. I’ll

modestly terms in then to expect and profit going dollars. increase in this we that’s accelerate year, adjusted So, dollars in a years forward. of operating

On our bundle the not sales in are point. at bundling this a question, most of

to revenue overall vast look subscribers, been about my two. has a digital buy of our the way think we the independently on do just at of to prepared XXXX. that as accelerating trend, or the I majority all throughout products in who growth have independent, think mean I combination profitability So, I remarks three which some mentioned is our

John Belton

Okay.

So, you don’t think about it.

You don’t and I square kind per that try customers looking at of to are And the customer. buying guess separately product just… revenue

Roland Caputo

in look can in from us stronger a see near thought – at we’ll and more bundling in coming the that direction are We this year. on future. be you’ll see that way more And you we sometime headed some do –

John Belton

Got it, thank you.

Roland Caputo

service of the in profitability. maximizing all

Operator

is Arthur Research question from Please go next The from Partners. ahead. Huber Doug

Doug Arthur

Yes. Thanks, Meredith.

large the – phase sort these so of operations, that focus could million of for What XXXX? for that your in it follow-up. previous imply you $XXX X,XXX scaling and the talk almost goal, by what XX How of the for imply about terms can products? out talked company think million does for it You sub balance does the – building imply a about, million of standalone does being what next grow the sheet on have And journalists? $XXX I cash I

Meredith Kopit Levien

try each me take those. of let and Yes.

you heard in On and you’re what I last think this the well. the as – one, from us, in hearing first our I quarter hope

digital We we’re a and pay just market have opportunity we English can’t people larger news. the to substantially the for million times increasingly today. than we is think no XXX language, be that why I about subscription-based at that an reason a addressable expect to see ambitious have willing

over XXX that reason expectation two, X.X% time – the at that. of if maybe, No more. of have take three, today, at we million TAM you we even our four can’t We’re have times –

on in being you’re the the to opportunity. journalists, So, doing in the we’re of keep us what I’d more done modest And going context we’ve is hearing ambitious relatively say investments. steady X,XXX which newsroom,

keep my an or We’re And answer journalists. biggest stories. expansive I said, as also and on going making I that keep the on And but going to in to focusing excellent can news be keep we Alexia’s hiring to really few seen to the how expectation years. the or sure, proportionate means. investment more we’re questions, actually last we’re to prepared growth opportunity. to over remarks and is gross you’ve think sub that our need going of not we

moderate have in like opportunity way to but we’d you’re our and sheet. investing, about a the balance then think we say of So given ahead asking I We have the – I into I’d Roland, if mind. we’ve our invest know add that. managed capital to sheet. don’t want the that you to and in I to the option anything balance with from us, opportunity think

Roland Caputo

yes, sure.

So, the just of the a more bit business. little on cash part

part business really is So, price. we print continue the to areas leverage business people we in the expect we the the natural investments step that to talked the really as generate And smaller. despite digital kicking in fact based in about, on up increased of of getting cash part the is in the

to so going would growth. cash to going are generate to of we that really, cash, that And use our and sure put And far things like as to use those further be that as – two then we’re make the cash. we’d to just

more more served And what that And sheet acquisition believe and we’ll we in are the all business. really that, do balance will – the both that we we long-term. the things our believe which cash best is So, growth, management of of continue looking us be that. use profitability just continually that because would to for that shareholders, more over in reiterate we further and space our subscription would conservative generate for I’ll the well said, growth being at has

Doug Arthur

in Okay. a for And was expense down a XXXX? Roland, just What’s specific X% cost as category expectation quarter. in fourth good follow-up media that the

Roland Caputo

pandemic restore think that to So, that is QX. I of think cutback the and saw in we’re way I you going would it some the about spend after

of that’s believe And then layered is that’s a we’ve back underinvested So, the layer. of getting that of products spend. to in of games one fact in sort kind about cooking layer They’re support and another normal to we think on – those. top

and layer be really we to support because that, on We’re cooking. going think games marketing to good a up payback our a of little that bit there’ll

Doug Arthur

Thank you.

Roland Caputo

Welcome.

Operator

Research. is ahead. question from Vasily next Karasyov Please Cannonball The from go

Vasily Karasyov

talk to ask competition. Thank to the wanted you very just Good much. you about Meredith, maybe, I morning.

to what First of position up all, of standpoint I the challenges that. thoughts on better situation did you are how estimation, those? at you out to So, came what seeing after the competitive did from to if look from that see of respond really XXXX net that in a the sort the the you’re your your appreciate you neutral year, back year specific competition planning and having also or competitive you would and and response are end was,

Meredith Kopit Levien

questions, good say about and are I’ll two those things great Yes. morning. that.

year, coming described of we our year starting The a here first growth. in of highly eventful our broadly, as and competitive and competitive our position a liked new of the sort position one decade is enjoyed I coming we like today out starting one when the and next

steadily with see you I of competing back other the were we joined changed really how think to we I I competitors – has if publishers. think go we Times, sort when our So,

One footprint, newsroom. how with hard compete weekly engagement really visual we views, companies; were look video the audience like of hard a trends, invested category and you to that. that in but competing the a track the companies you we pack the used repeat in I’d companies two a lot. We see up things something terms we if different you at of calls, a to level that we be page of I think like about and and average – adult last our of Comscore, jumped the you in we I that’s year, peak of – And we’re about the audience Americans breadth COVID that publishers. that think are the say at We’ve audience number our television really interesting we’ve ourselves during television competing competing on to sort we’re toward And of of coming were or make think up two stuff we’ve in Times. do things, look one terms at we just all you we’ve think moments, can if opportunity, level of as moved now, really prior the said in literally in do category, top of the how think in that that a used this and means exciting native. I that’s liked or global with of center born our

could we We new us politics. built imagine tools, scaling to from tech go the do. companies of a the was that it’s a sort competitive story, newsroom, able to past the standpoint and and attack and products thing and like is on what then in a built an And more into focused we of see biggest issues workflows we’re you world platforms the And very a in on last world. was that. and a So, you developing more over year huge this the lot tools beyond always technological where news the need resource I’ll meeting new all journalistic COVID to pushing a over wide stories those to for And us that well from platforms all story. the period, into have where really news we attention Times the kind year, were the of put the close has there paying we way were the base used tell biggest expansive say

might We is use do. tech product Times the of differentiated and company experience whole what sort convinced unique are particularly platforms unique that from increasingly a or

on using screens differentiation. continue for So, Most to push our that stories a in XXX a very, new you’re us differentiated that number something big our list number. and election during than of different kind to our say as that’s see week, very were us, of And and Times. had I home experience said into of that this competitive the and just going lot app. there a people my we in that’s prepared million remarks of but them for

to way long-winded for news. though, making which we’re say, a still of position. the So, top, I making market at thing point made paid the our like competitive One we other all digital is

And paid market digital that so market it we’re a that for help company doesn’t one – make emerging and news. make other companies learned comfortable can that

Vasily Karasyov

much. very you Thank

Operator

is Kannan go ahead. Barclays. from Please question next from The Venkateshwar

Kannan Venkateshwar

earlier price Thank on Roland, just comments I stepping in in clarification of up terms guess made the you subscribers next year. some one of you. of the number

I when price this the I legacy to some addition of promotional. and that of X.X that, And your base. on increases of that year, net a So, top also taking mentioned of essentially think million. you was course, lot you’re compare And

that would So a bigger. number, little bit have expected to be I it

just million provide I framework So, you get that. X.X to can wanted the if understand to to that

Roland Caputo

Yes, yes.

another, year, they’ve that million skied the through a So, let stepping those solely up are the who to price folks, will X.X subscribers, who in million this is let’s still be today, will was signal on XXXX. give There us tenured time it, price us, promotional it’s call X.X because receiving a them gate of be kind that a of attributes increase all the price increase. to who

million pay in it’s than the we’ll XXXX. did million, in add of that X more like I two subscriptions they XXXX if together, X.X more So,

Kannan Venkateshwar

it. Got

the getting when price, a step at is that follow-up in than will third your of number up it’s essentially, guess list, total So, price more subscribers next base I in I of year. there up look the

about was kind – I I made, a year, declines – over the should next just But some ARPU just on and of last when ARPU a the if recall I this de quarter, I that, you seems envelope when single-digit over thought of XXXX. essentially if I’m course mean, one math at implication decline wrong. XXXX, maybe, I comment it so reading the and And of course of the do like for path of I the look be comments back minimis the mid

So, hoping just of of what does ARPU step-up? think through the could course help over this you during year the us scale the just

Roland Caputo

certainly. Yes,

will speaking we’re year, positive makes and if all that we back in if as expect turn in earlier happen of slow is expect actually of understand That year to half goes year-over-year to first math. slightly the if the considerably perfect half that expect So, quarter. fourth sense. ARPU and the you expected, third going that the sequentially, And actually year-over-year through the decrease we and we turn ARPU

we’ll next year. think position we a net yes, second So ARPU come of year-over-year positive half me, excuse be in Delta a –

Kannan Venkateshwar

Got a it. That lot. makes sense. Thanks

Operator

from go Research Please Huber is next Huber from The ahead. Partners. Craig

Craig Huber

I roughly there other something I My this like think, on brand It’s down like of you side think have to reports ARPU. something subscription has if reports a left putting about you. brutalized my the appreciate be think you that of digital there. $XX but want on like you I mean, Thank they of XX%, of you here? do – sort the how on of understanding out have road question, behind dream Wirecutter, product because my million subs upwards big average right and the the year, comments could are a I can on consumer consumer things, this XX% lot it roughly X all. to paying peek interest going Wirecutter about you’re get it what maybe a sounds a name there, effort do the bigger pay,

Meredith Kopit Levien

really York brand. Craig. into Thank I nicely a many could broader we acquired you. like The think Thanks, so it your Wirecutter, there’s we that something thought really in that portfolio well. – Times think we the We about was ultimately work dream. works it of from that and it things could, we New And when it subscription fit the products

at just testing. beginning We’re the of

a days business, journalism without here. be paying of that. that strategy potentially but is where I So, Wirecutter really a our much I won’t – than, for great earliest say, our we worth if big didn’t even say is, are say Also in there’s on of in the opportunity terms to are that. pointing a for. testing horizon the than Other eyes ultimately, I’d you’re more it’s what remiss

whose a very Wirecutter last year really the the business, realized it’s we of ultimately, the but the particularly we very, business, are and So, liked as subscription bundle our go. economics in more through subscription better, performed well,

Craig Huber

a of with a breadth think, office in to top cetera. Trump about it’s done et years And know him you of here mean, there early, that going terms talk sounds guys it you in lot couple engagement have after four the last I engagement, weeks plus the don’t stuff just of of and bump think inauguration. on right your a of instructions, not just Meredith, on the effect, not hurt that? is elaborate like Can the huge got you office you investors an product? in out of in you Can here here it’s what I now. only, terms

Meredith Kopit Levien

few things prior it’s as of I been has think – for then – you I our and our bigger been subscriber. the in if breadth a a story. I purchase, any engage, as long the and repeat stay hood And discussions, than people it’s I’ve our the in one and be always I’ll kind said that Times around look under just of ultimately, of think healthy how experience to what the the journalism. and drives subscribers think path and and

far across on are range people, who with holding those on converting a us at better topics any We of come and to topic. who engage than single

and experience they create a and that whatever helps whatever job the I’m is people able that differentiated and quite stories, So, of in excellent optimistic biggest to the to deep, long our do on be run, understanding their be stories it. big that we’re that time, are confident get and expansive the we’ll to

and last I changes. fluctuates or news insight audience I’m in be in job variability – the I gets engage was can’t with whatever every coming with and better one promise this insight business hold action seat, my about and us, and quarter-to-quarter said, I was there on we the ability particularly, our passing prepared in audience that. remarks, to get levers quarter my some as as that confident from our to of won’t sort to of As the and and into get turn our cycle you the but them better the story really

Craig Huber

dollars we’re big you lot in a guys a of things, made My that. question, the you’re if behind side hire final I games Jonathan back and September hiring could, Knight on of putting

so about what out And your games that, in standpoint? I just from a here the trying forward you strategy be of build operation might guess, Thanks. digital talk subscription terms going can to

Meredith Kopit Levien

more said. big lot hire. terms than detail whole a is have what to of He don’t a already I’ve in I say Yes.

so play. do level shows we the place Spelling lot begun big only wants he’s out much the here. you, thing so We that time of hire play think puzzles glad there’s a like, And been on think nice think Bee I he’s were that’s to to wouldn’t for for really gave If it’s space. the that a what Spelling was to I’ll here could the unique be already room for puzzles. market. in that there’s our We’re of He I more hire. say success We of a audience while a to running a say at serious engagement to and Bee business. just in the

executing of day this also I I the And business. plays. say, not have give on means, opportunity about of given puzzles what we’ve a I can And audience really higher that. there. in just crosswords actually level expect that say, can the games in just awesome. about you year can to we’re app, I is that play, so think but a place for shortest you now got host in be many kind There’s if and we of scroll be are we other much more have we’ll back half there, of in down, think you And a a any running would big I version that to the bottom our our excited to

Craig Huber

Great. you. Thank

Meredith Kopit Levien

Sure.

Operator

go from Stanley. Thomas from Morgan is question Please Yeh next The ahead.

Thomas Yeh

thank Hi, you.

on last And and as last might some but you we talk on coming about we Going your incremental this things audio. print saw on is bit declining off question a Thanks. rationalization expenses structure the restructuring the on goes there think thoughts be where or overtime, of there? the through monetization to kind of you of some How Can cost then kind pricing into this you’d you’re what of area kind see bit value curious year, of to maybe more about side, I’m introducing around subscription-based going an the the about subscriber the what a Audm? opportunity base, Wirecutter, that stabilize circulation back some seem are should the we year, COVID, more? expense do

Meredith Kopit Levien

I’ll at operation, I’ll really and take of On back fast-changing your which operation, our said I the question, they in point really prepared ongoing audio, are management second the the conditions. but seen audio. I it. And Yes. that for best think I’m is need going that, cost to let sort at I to are the always Audm, the where people print because to foreseeable we’re business broadly remarks, say do future, and continue doing of of ongoing read-aloud, for the part it it we that is Roland we able good we part transformation, think what to read-aloud going be subscription bought to

anything, audio. us you journalism, New Atlantic, from journalism from hear is an as well other Yorker, read-aloud. for dish the what going journalism gives little experimentation, bundle in brands mini is can the So, actually from amazing or our What really engage a petri that for people to

of Times it a – in you York we at development I moves regard already the not, and can and toward family, the more people that more product, to as products product our family Times the have that York that fold. our valuable and brings we New into the the most pushing is subscription news people our of if and make New think adjacent more with many,

give direct can what me well. sort So, look a beginning we’re can’t ways early but read it’s – I experimenting about like. don’t to beginning too we’re do assumptions in about driver say, take, – of with experiment aggressive, ahead would we – economic my Wirecutter, can as any we but remarks about Audm of prepared really more get you way could what further you that portfolio what’s to subscriptions. on that many with in in it’s shortest the don’t – might I be that I take, as It audio I for way kind of, the to

Thomas Yeh

Thank you. it. Got

Roland Caputo

there’s your a to of Thomas, here. question, couple print work at So, forces

third Baron’s expect we the York is, be and one Street New Post the in Journal printing, the to in quarter. and and distributing beginning So inserting Wall

on more receive we be the Dow by Jones. print them revenue than our that push that’ll from costs. an That’ll have So offset effect up. That’ll

just And the consolidation distribution printing XXX% industry. outsourced. a infrastructure as the of know, New is of force Another and in outside you were York

been either that we’ve same every expenses but week, focuses occurs date, happening. And every so gets make at neutral as that to consolidation cost able to us to benefit that as month, keeps every like time, probably, the or managing a the team harder on day, every year.

I reduce further. of come will aspect. don’t don’t see know we’ll other you’ll able post-pandemic, we’ll then bump from I newsprint be somewhat how the there’s think back. commercial of some suspect probably than it I think back. much, printing, I some all costs to see And our So, single copy the And come

and off we’re I be in prices a that’ll believe been terms more or bottom of coming pricing, bottom the of come dropping now, kind copies newsprint more on there. more a have year probably right for off So some expense. and the some monthly And basis newsprint we’ll probably

benefit newsprint been decrease newsprint fact half year been from half have of a this So, matter price have in prices our we’ve as decreasing, gotten costs of and volume. some

those best a of I can. if the be to a thing, down expenses was going we’ll bump manage But whole to to we there’ll try continue little there. So, as handicap bit

Operator

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

Harlan Toplitzky

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

Operator

attending now presentation. Thank conference concluded. The is for you today’s

You may now disconnect.