The New York Times Company (NYT) Q4 2022 earnings summary

Executive summary

• FY22 delivered the second-best year for net subscriber additions, adding just over 1 million net digital subscribers; total subscribers reached 9.55 million across digital and print products.

• More than 30% of new subscribers chose All Access by year-end, roughly six times the 2021 share; over 2 million subscribers had a bundle or multiple digital products.

Financial highlights

• Revenue rose 11.3% to $2.308B; subscription revenue increased 14.0% to $1.552B and advertising revenue rose 5.2% to $523.3M.

• GAAP operating profit fell 24.6% to $202.0M and net income attributable to common stockholders declined 20.9% to $173.9M.

• Adjusted operating profit increased 3.7% to $347.9M; adjusted diluted EPS was $1.32 versus $1.28, excluding specified items and acquired-intangible amortization.

• Digital-only subscription revenue grew 26.5% to $978.6M; advertising growth was 5.2%, including 3.2% digital and 8.4% print.

Outlook and guidance

• Target: 15 million subscribers by year-end 2027, from approximately 9.55 million at FY22-end.

• Plans include continued investment in journalism, product development, bundle technology, data infrastructure and machine learning during 2023.

• FY23 capital expenditures are expected to be approximately $50M; cash from operations is expected to face an approximately $45M negative impact from R&D tax amortization, dependent on R&D spending.

• Target return of at least 50% of free cash flow to shareholders through dividends and repurchases over the next 3–5 years.