The New York Times Company (NYT) Q3 2024 earnings summary

Executive summary

• Total subscribers reached 11.09 million in Q3 2024, with over 5 million on bundles or multiple products; 260,000 net digital-only subscribers were added sequentially.

• Digital-only ARPU rose 1.8% year-over-year to $9.45, supported by price increases and subscriber transitions from promotions.

• Digital subscription revenue grew 14.2% year-over-year; total revenues increased 7.0% to $640.2 million.

• Adjusted operating profit rose 16.1% year-over-year to $104.2 million, with margin expanding to 16.3%; operating profit increased 20.7% to $76.7 million.

• Adjusted diluted EPS was $0.45, up from $0.37; diluted EPS was $0.39, up from $0.32.

Financial highlights

• Digital advertising revenues increased 8.8% year-over-year to $81.6 million; print advertising declined 12.6%.

• Other revenue rose 9.3% year-over-year, mainly from higher Wirecutter affiliate and licensing revenues.

• Total operating costs increased 5.4% year-over-year to $563.5 million, with cost of revenue up 6.7%, sales and marketing up 10.4%, and product development up 6.3%.

• Free cash flow for the first nine months was $237.7 million, up from $207.6 million year-over-year.

• Net income for the quarter was $64.1 million, up 19.6% year-over-year.

Outlook and guidance

• Q4 2024 digital-only subscription revenues expected to increase 14–17% year-over-year; total subscription revenues to rise 7–9%.

• Digital advertising revenues projected to grow high-single to low-double digits; total advertising up low-single digits.

• Other revenue expected to increase 11–13%; adjusted operating costs to rise 5–6%.

• 2024 full-year guidance: depreciation/amortization ~$80M, interest income/other ~$35M, capex ~$35M.

• Management expects continued secular declines in print subscription and advertising, with digital growth offsetting these trends.