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NYT New York Times

Participants
Harlan Toplitzky VP, IR
Meredith Kopit Levien President, CEO & Director
Roland Caputo EVP & CFO
Thomas Yeh Morgan Stanley
Vasily Karasyov Cannonball Research
Craig Huber Huber Research Partners
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 Third Quarter 2021 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. to of conference Investor like Toplitzky, to now President Vice Relations. would turn over the Harlan I Please go ahead.

Harlan Toplitzky

Thank you. quarter call. third York Times And welcome to XXXX The earnings New Company's conference

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

change to assumptions, I on time. call. management These over are you based will which course make we begin, remind the this Before forward-looking current of and expectations our may would like that statements during statements

Our the actual due SEC a XX-K results could differ to that subsequent number materially uncertainties and are of filings. and company's risks described in XXXX

Given the XXXX, believe our in present had also certain results. our impact comparisons useful current many of year cases, which business we provides results pandemic context to on in our for XXXX, XXXX will the that we operating COVID-XX in

over include available will to our measures. presentation is which the a remarks our that, website call to finally, Meredith from comparable please posted we reconciliations earnings be shortly this investor that the copy GAAP most Levien. prepared addition, non-GAAP measures website will turn call we in will at investors.nytco.com. on have Kopit our conclude. release of I provided after With morning's And financial note to the In our press And

Meredith Kopit Levien

that and our pay of additions. the more good subscription digital of see X The a opportunity the quarter demand and quarter outside our And Times everyone. mean now third net power important added and strategy time said than to milestone of just the And model and for subscription more digital launch XX%. our international continue huge range quality in we the strong of digital the people during net out total a was in a and globe, ago. reflects It quarter. best best progress a more an the potential Total Wirecutter. XXX,XXX XX% ever quarter not The English-speaking million curious independent We've up some We subscription new morning, news U.S. and for the and and XXX,XXX digital hit of it to for both Games, with We first subscriptions. life around has journalism subscription was Harlan. print Cooking full the than in decade XXXX, rising third our since with Thanks, across for we new Times had digital long-term for in XX% that XXX,XXX enduring for quarter revenue more a prove additions total QX. on to people revenues grew reach And advertising This including both display. but quarter, the needs. subscriptions in digital. news

As despite a in XX% operating one in increase busy XX% a The adjusted a result, news. profit adjusted costs. was operating grew quarter

of our New operation While now of efforts experiments withdrawal it using played quarter for does data The audience, COVID a example levers person has the and Tests our public's improved helping than Haiti, tragic about to reporting. readers. These the across remained a the conversion variety climate increasingly with been did value are journey. steady York's our to to thoughtfulness. and the of XX source too, of messaging command a ongoing more learning news is so now depth a promising. Governor also X.X the events mix sophisticated at of important programming X,XXX digest in That become cycle. are Not quarter's provide past We're cover identify the algorithmic The meter efforts planned marketing last cycle, in right the kinds resignation including customer our a flagship million on is driving which daily enduring attention, build subscriptions. habits, moment in fruit. to the whatever and people talked increasingly quickly doubt captured positioned the our uniquely Morning, the to I've of stories, have Those improved in with it effective range dominant our is the but paywall model. and no bearing wide prime the reader as months, involving to stories site. has Afghanistan new topics role in news performance our improved journalism them particularly that plus ask the today's only the most our A We real ways The machine its story newsletter daily subscriber. Morning makes and a over

We the experiment value funnel. subscribers into readers paying more balance of the also and friction the with the continue to of pool find to at prospects broadly converting between top exchange right growing and

access in To quarter balance aggressive newsletters and end, our a a on quarter existing to subscribing working improve also newsletters as like which in of Paul for portfolio We're only differentiate followings, leveraging strong of those Krugman, subscriber showcase the current Watching of the well. loosened the more with of model. We've fine-tune some the in our subscriber the drive impact to to we restrictions to entailed prospects had those experience journalism also we positive retention. of somewhat and and that to benefits experiments quarter. Some introduced non-subscribers, starts meaningful limiting the and

culture, the We new also newsletters, our Cottom of and on Professor lives. John everyday launched race and language including several economics and on McMillan McWhorter Tressie politics

we demand starts did organic. our able and media That too quarter, strength result in heavily spending. the and for strong paid record contributed mix a weighted to news of were and net in for our to increase so organic additions profitably remained conversion while to of quarter As we

base We to subscription require which will attention close as grows. continue pay energy and focus our churn to increased

band few years That generally calls slight churn strength. vacillated a a we prior in over said relatively has last view which continued quarter in rate, I've a with the our improvement. as the third As narrow within

pricing as for as that the card markets. in promotional some We last fourth expect credit and cohort pressure in around ends on election regulations year presidential tighten churn quarter the the started

continue the to reduce our subscriber focus experience and driving that over on on believe to repeat will engagement enhancing cancel reasons We time.

Cooking, our news One multiproduct including products ways The people Times, of to product and of full of and bundle. the we success current value getting boost experience by demonstrate of of stand-alone begins to our showcase benefits these more the the core alongside growth of potential Wirecutter. engagement intend is The subscribing the the products, standalone Games our to

promotion, play engage also Cooking we and of Cooking price with elevated additions than each access expect total Cooking right But additions with in own and meantime, subscription in last and conversion with XX% X big last par model Games. doubled nearing in year's experiment driving Net QX to XX% higher more prior cross experiments we're were their we're subscribers bundle net promise show Games on continue engage subscriptions. year. million reasons products seeing the time quarter-over-quarter more promotion the can and QX than than higher to and retain. Games product a driving we that a for quarter as results. the and As first in compelling in newsreaders giving our role with a all more more to offering deeply time, Over subscribers more propositions with and than

launched Wirecutter paid also the subscriptions to in quarter. We

month. our times, the listeners relatively full calling it's existing storytelling, of XX,XXX York first subscribers XX to listeners Times new enjoy and a to net single a the beyond fertile additions, we for we'll range month. promising small in with a Last our within experience While Times digital subscription audio for but that especially New It's subscriptions today contributor the overall period product a It's products. Audio. test destination a at start to month, which off announced among reaches a development existing been million we're

We making as by beta Costs well we're the in strategic popular print increased To How a higher similar Kids driven officially investments level monthly costs. quarter, fourth the kids in the launched growth technology release were marketing The inspired suggests earnings we our development to our scale to largely subscription efficiently. including and also in higher section. of our cost paid allow a as a business third for in media product expenses quarter, by journalism, guidance product digital digital provided

As in to continue opportunity you us said to lay the expect larger, more I've past, a our the into over can to time. long-term for profitable business foundation invest

quarter strong Turning revenue to had of another We growth. advertising.

the While third slowed the in year-on-year quarter second. with growth compared

advertising rate the XXXX, with in as quarter. grew growth As digital second expected, we XX% of compared reported revenues the same

inextricably first our POLITICO and evacuate talent with nothing Times and journey that has the note Week of to Lulu returned incredibly others Afghanistan. effort institution including Bloomberg through business many to together mission also as is want is Editor. recovery of safety benefits by interest it to from offering Key from podcasts. journalists their third watch products, families who an Roland, so I business growing colleagues so our and best These of the before the marketer quarter and went including Several helping experience and people I been Paul continue colleagues Volpe, grateful Peter Coy proprietary And world. close a current journalistic reflect their they this to he to recent from many our data of inspiring harrowing Roland. was market country Our The as the available. over colleagues Times months former in understand the of it Afghan and us continue resettle. that fleeing subscription do XXX of results the reiterating and colleagues awe from joined by the our to Garcia-Navarro tied well where hiring short in as I'll turn supported Executive my to you, that stems from our And help. to come to to to exceptional who NPR make over to to Business of and overall that, many success I'm captivating our party

Roland Caputo

higher And XXXX, financial We Meredith. in digital quarter. XXXX business you, revenues growth XXXX year. believe in million to good diluted reported growth healthy our performance important impact subscription Fundamental operating which results. and advertising and $XX strong in underlying the pandemic in third in same on profit comparison higher quarter, had and strength unit million higher $XX we by the the prior $X $X.XX in of adjusted per resulted the the exemplified $X.XX million Thank strong subscription the is the an was given earnings than by than period point Adjusted continue that than share morning. both

other our we to and to product new total new XXX,XXX noted, net digital Meredith XXX,XXX subscriptions. for news added a net products net XXX,XXX only digital subscriptions digital As standalone new of core our subscriptions

digital lesser As to million. revenue subscriptions, week graduated of prior the end quarter. Digital dollar only result of quarter, subscription prior number quarter. a This and the to to of XX% having intermediate in increased the primarily offering The in Wirecutter year approximately revenue price and only improvement tenured XX,XXX share versus nearly increase. the XX% quarter Wirecutter were year subscription price compared graduating per quarter. an domestic the subscriptions quarter, new of ARPU $XXX subscription approximately increases the Game their nearly X.X percentage beginning either the compared continued versus strength results and as the full international introductory remained to subscription impact increased points increased for subscriptions of as added prices past as and to points a year, subscriptions the new September. well X point of the promotional approximately year-over-year with on in Digital new of news nearly XXX,XXX quarter the in in much subscriptions to The launched the from our the of growing XX% subscription both or the was subscriptions price and from continued X the our related of at ARPU had as points subscriptions revenues XXX,XXX percentage more from percentage we higher approximately large retention end Total grew subscriptions. total we benefit X.X at subscriptions. the prior price full Cooking digital the price due extent, to the approximately step-up prior to sequential price percentage solely

compared overall Print We continue X% volume from price and through declines both and growth Meanwhile, subscriptions advertising in XX% part Total tenured subscription digital daily quarter graduating as categories. as to XXXX, result continued with impact from discounted advertising X.X%. in and a by declined advertising proprietary circulation of year. products Sunday product approximately of home the expect revenue and in provide with the declined XX% as our portfolio. the ad revenues X% XXXX, quarter and a large impact balance offset Total XX% with advertising, subscriptions approximately the copies print the from print the than traditional audio. XX% with sold declined on declined, digital the the display increase subscription the revenues tailwind benefit this increased sales year, from first to by and digital more result bulk approximately Compared news luxury expanded grew promotions audio be of circulation in direct advertising the buoyed subscriptions as to while driven ARPU weak single Compared advertising while delivery to XXXX, compared X%. print to prior in more revenues Digital copy target XXXX. party X% increased quarter increase. higher comparison domestic grew revenues digital quarter of the of home delivery primarily as advertising grew including a declined third first price than entertainment international

increased print operations However, primarily year the to with commercial of below products higher of with Wirecutter XX%. levels Other the early were and associated due the quarter the to compared XXXX family revenues compared employees, media than in result historically XXXX of higher million, XXXX, costs, increased as the higher. costs printing our to approximately of in XXXX. higher year costs with servicing incentive approximately addition with and Cost compensation increased Cost approximately marketing Games, remained higher to subscription operating a reduced at while other X% of higher issued in $XX estimates. prior as driven XX%, than approximately the increased Jones additional media audio higher growth of guidance expenses, of the When by costs result organic had growth by newsroom, marketing and been and above costs Cooking revenue connection Sales the audio production light sales more Adjusted Dow a by strong in XX% revenue. deployment last more the XX% of which media licensing initial came in demand. XX% than primarily profitable August a XX% as of marketing content. end were referral number and XX% accrual affiliate top subscriber and advertising largely of the we compared expenses in

media by been price one employee growth item which support non-marketable to costs expect quarter. higher increased to the higher accrual of number largely in headcount of costs of to income administrative and is due had million special XX% increased in the incentive that awards Product due income XXXX. other on recorded quarter in a fourth appreciation the compensation elevated remain the by interest expenses the the incentive of costs. and increased other and engineers in higher largely stock-based to $XX consulting related quarter, approximately a investment a recorded gain third and XX%, and equity development We in General transaction accrual on reflected We compensation a growth statement. line our in areas, stock

effective line the tax the with effective of of approximately we on quarter Our around is rate rate. the dollar quarterly with third expect report marginal for significant possibility every XX%, was which the we variability income in rate

to Moving sheet. balance the

securities with quarter $XXX The a with billion, marketable the second million of million line company ended $XX of increase credit available. debt-free $X.XXX balance XXXX. the and cash remains revolving an Our compared at quarter of

difficult continue a fourth mid-teens increase to quarter with to revenues XX% with compared compared XXXX compared quarter. Overall subscription advertising drivers and the that, growth approximately it compare result of advertising investment adjusted revenues happy rate expected XXXX in Other only digital the quarter me questions. the partially of our increase we year. digital costs The quarter into low will are to as up Let XX%. of increase of advertising third Both of open growth digital to increase fourth of with for spending is for XX% XXXX. our quarter approximately to and expected another of the in the be expected compared XXXX. with to operating expectation conclude outlook Total fourth are quarter with the last with quarter revenue with we'd more comparisons of XX%. operating expected costs expected that the subscription revenues approximately to slow approximately increase subscription digital against XX% and fourth are And the fourth are

Operator

session. now Yeh Stanley. Instructions] ahead. Please will The question Thomas go the begin We [Operator Morgan from first with comes question-and-answer

Thomas Yeh

that by whether advertiser hearing to been advertising you what differently constraints the And secondly, are XQ you're on supply things churn then conversion Thank drive bit categories for the see during good my for access limitations in aggressive Meredith, were Do to And taking can you're Hi, morning. on the during XQ? seeing? And trends impact on on Thanks then leaning and any have of a experimentation update the demand do relative in give anticipating more to periods? or questions. chain some can the you about that a you as IDFA you side quarter an given you. back talk cycle us paid non-subscribers? continued in pull we've you to inventory more around on the XQ, a bit new you about plan pressure the said XQ. that lever hotter the

Meredith Kopit Levien

of Yes. Thomas. morning, Good questions. That's lots

if that advertising first. question them see and do And remember I'll can try all. Let me I answer.

seen We huge. a have not

impact an we I think you're if asking IDFA. of saw

less ad say that. people be of is We to on advertising would that us. side, exposed brand in the business, I are a lot the upper buy from funnel advertising, tend advertising to our We

huge not see just that. So a nature the in from of in that And it's huge we see demand the exposed ad factor. be seen impact impact business. third could impact. market. But it expect That overall have a are on remains we our But a big to to I'd the say We quarter. We didn't because don't less seen. been not of have

I think Yes. your primary that's ad question.

Thomas Yeh

supply Yes. chain And inventory constraints.

Meredith Kopit Levien

Yeah.

business impact did reported big the have being middle others largely we see to ad advertising listen. funnel. I marketer spend quarter. from It's attribute supply affect lower the product And doesn't That that see some hard that a in our ultimately that we driven by I time. funnel issues the similarly and that. many I funnel chain do pressure think, not around third all upper won't from that doesn't over to imagine versus total just mean would

quarter all I first And bigger to started help your and market me guide try to range comp the on Roland suggested us just within missed On it get the is have because hearing think if fourth last you'll in recover of that's and I from the you're I me thing question, out the the previously. expectation and starts get the of that harder year. let it. any

quarter. number terms - And did on referred In map year. these conversion. earlier in experimentation in our the of was road of this product a to on we all things We as the things

we people learning ask about sophisticated, more subscribe. We precise how and paywall just to when in more using better, present we are machine our getting

So of more to got expect say would We've using that broadly We're better over time. we've get can that the you And and it kind and I sophisticated gets more that ways just apply signal just models to continue more signal. got actively. better. different

part, improve. most experiment to that continues you For and the

journey non-subscribers. cases, the the access I'd in We of model parts our look some sustainable over say of really is also very, And do it on more for aggressively meant with we We'll various those that us very and and how And experimented always restriction is access say, to more when worked what case this at then very in customer well. the time. journalism works. make is sure something experiments

and were So third prepared described is It the remarks in results. quarter, played what we in role more fourth we're a the access those in aggressive the somewhat that my restricting not kind in is losing unusual I calibrating the about of as fine-tuning which big model. that quarter. And

whole me you I asked the think well. about your can't was churn if that of I as question. remember

Thomas Yeh

Yeah.

XQ. anticipated to acquisitions that relative right on about Just the to starts a because Is touching way churn XQ gross there that's of in generally --- why was the of and kind elections, think just the larger of XQ in that funnel and

Meredith Kopit Levien

up of because people big There's transition XXXX. to election coming a for full the Yeah. of in group XQ, price

transition in we're of mentioned from So changes who you've know to to will go got people on card price. add that. don't have And the some then on through full I seeing if some a I Roland, churn credit large pressure in markets. you some cohort also of regulations anything

Roland Caputo

I would imminent changes say, the markets that are we're seeing, U.S. the the outside regulation

Thomas Yeh

Thank Okay. you. Very helpful.

Operator

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

Vasily Karasyov

year Good year. you. earlier talked this your for EBITDA the One, about have next you margin a I morning. couple. outlook Thank

a [ph] So I your rise your of competitive? see the complementary product give us you the it's an would on of appreciate is about you see question market? on And it your could or wondering as generalist you. such there. as you them Meredith view platforms as view the one update substack. for thinking a that if just second And part Do Do on was

Roland Caputo

So Vasily, I'll take the question first. margin

give the context out to little a first important year want revenue the this the is bit We've I coming door expected. it's quite I more a answering in thing gotten how in ad this to than played do question. had we year think because

results this have ad buoyed year, very we you in And year so business. when by earlier to high-margin spoke been the

a bit we to more got this margin we expected than little So year.

moved essence, So a bit. forward it in

into we through. next that there's business. conflict in in have of invest is If a see And want the very we to becomes mentioned we see and continue long-term going line opportunity. bottom lot to opportunity, with we investment to I don't believe few we're Meredith grow having add a immediately. times - versus that? anything big bring movement bigger And to profitable money Meredith, the in you flow great that to towards the I natural business know, tap is future a the year. think trying don't going and while to to more a margin want business on we in to the did that leverage out So lean because growth

Meredith Kopit Levien

Yeah.

I things. as our value The a think you from growing Vasily, I'll players said even One, news subset of that that right. emerge. both across and just your couple on is in quite our to that confident we're question, say core sufficiently broad the report standalone sort proposition we're new of keep products Times going competitive

the quality to think high probably make that's And more would good. think people a to get thing. say our anything X efforts specific regard paying would on regard digital say. most in the market for journalism then I is a This and I about I all One, say for important paid is particularly still proposition subscriber that would of things market. to I'll subset. forming is newsletters. about helping only thing about journalism And just So sort I first positive is

proposition and you someone Kara McMillan with buy whole Swisher the to McWhorter and want Times that. like or but value that, to come a Cottom follow get might The has John You that of newsletter or the New pay for you Times you York because Tressie

got strongly a more we've would got believe value very is we've I proposition we proposition that so the that that competitive say competitive the And one.

Vasily Karasyov

very you Thank much.

Operator

comes with Research question Craig Please from ahead. go The Huber next Partners. Huber

Craig Huber

your basis, Yeah, improve you high any leverage on in number cycle thank Meredith, on you're I pretty versus spend. you. to and attributable end but know I quarter. to good spend. out marketing marketing percentage the have in you're the that It pretty fourth new again doing plus the digital my clear, of that question you getting tough first mind, on a a like broad think versus up spend year-over-year. you marketing on sounds higher back sense what guess that the How It from the XX% repeat subscriber growth. spend try much very break seems if is the your it's

First question.

Meredith Kopit Levien

I we most still I've this And say, the through this and in And generally, on But our organic calls. in means. spent quarter, came additions or said quarter think We spend particular into question. primarily net significantly I'll even and understand starts I more demand. money. third your first previous

So still within guardrails. a on profitability. ourselves standard holding to our we're And still we spent

So say high conversion of I'd we the do demand. disproportionately can think engine not is profitably. past, a the the of for so paid profitably. can is But product not demand I to the spend almost you be marketing, model into continue spend that as us, will good. we primary what the itself long media, spend view of quite to weighted that, have believe said paid but and where both people And opposite I the in Roland sort it's into And environment,

faster. to do grow will We that

Craig Huber

and about that also for at subs? Then addressable you mind done that? digital You've in the globally. around past talk in Can some changed put the your market other all numbers that has Maybe the but in question. U.S. the

Meredith Kopit Levien

or TAM total sorry, both? ask international you I'm Did or

Craig Huber

U.S. want at you global? it? to How and look

Meredith Kopit Levien

States. is potentially still speak at that We English half at who is we've I'll United this a think international, XXX English-speaking in that We're In I'd - are is around audience our there that digital for States. audience. before, it - least half pay was of least as of and believe States, journalism good think say at million subscription. say it United United being a least there confidence it people Yeah. I read the the outside at is is half through but college that half outside the market as at about quality the will talked of growing. is world probably least market educated second looking we We who think

smaller people will can share second that market, of just XX that. than win And more I'll who who assumption larger X And we subscription we to probably a large pay X. quality which can is digital not someone say a it's journalism, read just win our for that So is a people but for in share pay a thing. million but will

room we running think have still I real domestically.

to that advance strategy international that continue in we domestically. opportunity and Our lead presupposes pursuit of that lead

Craig Huber

And final if my question, may. I

How you in the fourth high what are generally a that middle quarter, other for the your related is you an that the maybe perhaps is only quite the third just and were in third us of thinking? quarter, than about month, in the digital significantly help For better of as sub And to quarter. more which news X in as saw my the of quarters - what quarter fourth you fourth sort stellar average for you question quarter month originally half that? with are happened number expecting came additions last the about thinking think

Meredith Kopit Levien

affect seeing us in me one gain also to it's any - And that can first continue on more that quarterly there we're question the you're don't we variability business plenty say Let just all why going hand, we're we outside control of forces of given our the and know on guide are On quarter. see other from levers. net the And hand, take to adds. quarter-to-quarter.

revenue has have a don't I what mind, in already give than more from perspective. you Roland that with guidance So to said

of You can prepared what draw I the said some to remarks own conclusion. and in back go your

the I more current pressure that So experiments to we've expect - period current at our loosening we're in products quarter, succeeded time fourth said churn tend And some see the we in in of that access. on quarter. said look And trajectory we you standalone some if at tightening the in also really the around and a the brisk to be same stand-alone. for reasons specific quarter.

think at So that. it leave I'll I

Craig Huber

you. Thank

Operator

with Barclays Capital. from comes Please Kannan go question next Venkateshwar ahead. The

Kannan Venkateshwar

you. side. advertising Meredith, on firstly, the Thank

I broadly there's few just this think years, philosophy. over been last the

towards leaning business on around more advertising of it. more think, have less you But more feels side becoming bit a I it lot stable subscription digital like and and a is the least advertising. visibility the on at

digital the advertising what's like versus you So costs, coming would expect contribution then side products Because go just margin stable And the line do into print? with Audio, understand you versus quarters? trend you as for we if to related on assume help for digital more become could more new that I Should that, some the have print. to us example.

just so higher is a margin have figure I or to And the lower. follow-up. out if And I'm trying contribution

Meredith Kopit Levien

will And question. give on better answer your second detailed you Yeah. Roland probably a

have little and the applied the one. the more like particularly we it better. sense products take business is general, gas like model think engaged that plenty That a second digital We runs we data X for say have business room. to the logged I data whose ad sort users the on whole this deeply party me a our the I think I real privacy-forward bit is about maybe in and now first And better now. media Let of In still much same said in business about high on, that's that to we our of runs access octane running proprietary ad strength first in where last subscription business which quarter, ways. registered, our

continue swings could deals from the that ad X we the has And on from believe have business. less to We're to little we stabilizing to bit very - effect next. the big and quarter that So a had a much. susceptible like that does

about to way, We because, a consumers. optimistic demand position in audio high the products a And be also of are bit well that they're by we've performing quite suite with marketers. quality really like audio, seems performing well got great with are and for There audio. of and our really

have stable to could going seemed forward So your character. we point far of a to it like thus all and more that. has And have

All said some to a of I and more for general, repeat now in thing both tends than Roland business. the demand-driven business time. be that the supply said, I'll just Advertising have

driven we that time. positioned than shaped still it change very is scale are been in But platform the dominated And at a quickly. is demand after different go we can think have some large operate that better demand also Times. to and market from by that's I the pretty and players market The

any in the part that business we can of significant don't And out a anything. Roland, result don't as rule add so there I swings know of if you'd that. be

the on margin. comment to want you If

Roland Caputo

a Yeah. we X-X ago. say, things Kannan. years margin ad business question. profile of at than margin I'll that couple did we A the comment on say run One today much the digital higher to is

mix. of kind So of depends it point really information. Relative to one on that's print,

selling where or But services large we're the creating a using straight not we're The is associated of depends margin I'd say mix. digital. in content if sales. with support display But in and the if other a that partnership lot assets digital heavily as comparable on So creative total good terms of margin, it we're to sale to if in digital, margins print. are it's

display, the heavily more margin. higher weighted So to the

Kannan Venkateshwar

bigger of spend. mentioned I and is in sales marketing And broadly terms it. you organic acquisitions. that growth a driving part total Got your guess, of Meredith,

it bottom you you marketing So frame spending quarter? I you you around which of it sales a how line percentage Is is media, spend when in do and more mean on the frame of want revenues? it? the dependent? do given amount a about how some basically Is the framework total to think

Roland Caputo

I'll Kannan. take question, that

first, brand out spend. want direct So to break I from acquisition

for return. about talk an a internal spend direct rate moment. based let's of So that acquisition We on guide

The into marketers channels we'll spend more. and below spend won't they rate channels. into will particular drop of return they then So spend until that any particular

really that's CAC is [ph]. return on completely is So Brand a the on the guide different.

into will time in actually money. We're pick ramping now. moments spend that to particular brand We

elevated So X a acquisition a just spend. be in other and and And quite QX actually while. it point. that been bit for to brand of direct that way And we've is running the much going not pretty spend

talking Meredith now narrow a organic of driven. in about band quite for think a over around talked part. been a the majority with have percent of bouncing organic that been I has the starts coming pretty while it She's the organically being bigger becoming when about from vast long-term,

Kannan Venkateshwar

it. Got

is the mean, a mean your as numbers, improved you CAC to media couple over spending down at just part advertising, has I say and essentially brand last a the time? gone bigger have it it follow-up when the queuing over that, years? those I of towards if - is of that So fair maybe to look

Roland Caputo

again, they did last like that last come - were rate so as CAC I low very high. And year. year, where - they focused in point. numbers numbers in Well, like of were they return LTV - They've year, CAC such line more last to back a were the year, The very special before, at really guide. internal And our said XXXX with are. we're hitting on more we're this that as happy looking very

I have my I manner. that that marketing cash was profitable. not that we all we in Otherwise, think So and script would did in overspend in deployed productive that, and emphasized

Kannan Venkateshwar

much. Thanks so

Operator

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

Doug Arthur

seeking. Two thanks. you Yeah, to had your would at you're Roland, X mitigating the on said that questions. talent be ability side that the beginning, cost factor the hire

is that So follow-up. I starting headcount what is is, year-over-year? my a got guess up And I've And your ease? to question then

Meredith Kopit Levien

to digital for design market is and take with question competition hire the sort will to, broadly. quite it's product labor is forces in continue are subject horizon, the place other Yeah. of compelling I say over talent really I'm enormous talent. journalism, happy work. optimistic our to subject I ability that will would of to talent, talent We're for which data digital to same side. on the product though, time and a we engineering terms and be that going well long talent that engineering the every to talent, product technology business people scaling a this in there's say,

And so focused on we're incredibly that.

will will I work. a we to be place for think will place - a over where a long be it very compelling time horizon, people - this we

this we liked we think on so slowly than far have would moved hiring. a I little year more

Roland Caputo

Yeah.

the it's in roughly In up. terms increase headcount, X%-X% of

Doug Arthur

- talked of And where at to be? terms York about a how frame third I inning the how Meredith, mean success just guess think to Okay. stack believe not you to you you you've comments being as talked terms where New are tech I of you getting to in the in ought eventually. be what the conversion want you've follow-up that, in Times, about on that in Any quarter. it can do And you your that. you

Meredith Kopit Levien

Yeah. I question. even sure right. inning the or have about that's I'm fourth. my was What to But popped maybe think third not me let head - into

facing is Let which where experience differently, I me front. we're say the on you sophisticated consumer it quite to is think

having a We of conversion, next make quarter, to So data strategy I which is that. up a to of and CTO, driving comes Harlan. this scale in for and driving who of long dramatically remember, years we experimentation has in early excited mean rapid underlying getting sort think tech is the lot of in at work sure previously And we up a Sobel, and its getting think, journalism named years. about still worth with I of actually do can years. Facebook was in talk can't to that And matter. - really new Jason He guy just a paying at that phase the for, arc a engagement, the was infrastructure our gone back-end lot and about a pretty of last platforms do are Where back-end really, we Airbnb announced I'm I hired with five and experimentation. background. I a he for. platforms effort and last arc a putting couple half who have the think days half lot systems, quality We I we of deep, about, from the pace in growth. core And is dozen and super thumbs pretty

for So to and a of work right you us. ahead going there's focus time, some track. still can more that on than real I'm imagine of been area continue to that's in we're be of optimistic I'm plenty us. optimistic the I've

Doug Arthur

you. Thank Great.

Operator

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

Harlan Toplitzky

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

Operator

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

may now disconnect. You