USA TODAY (TDAY) Rosenblatt 6th Annual Age of AI Technology Summit summary

Company overview and strategic positioning

• Operates as a leading U.S. media company with a strong digital and print presence, reaching half of Americans and holding over 100 local newspapers in the U.S. and 150 titles in the U.K.

• LocaliQ digital marketing services serve nearly 12,000 customers, contributing to diversified revenue streams.

• Trades under ticker TDAY with a $1.6 billion market cap and net debt near $655 million.

• Digital revenue is approaching a majority, expected to surpass 50% in the second half of the year, with a goal of reaching 60% in the next one to two years.

• Focused on unique, differentiated content, audience engagement, and disciplined capital allocation to drive profitability and margin expansion.

Digital transformation and revenue mix

• Digital revenues grew 5% in Q1, now at 48% of total, with digital subscriptions and advertising as key drivers.

• Digital subscription ARPU rose 43% year-over-year to $10.30, with a shift toward higher-value, long-term subscribers.

• Stacked subscription products are in early stages but show higher engagement and retention, with future growth expected from both ARPU and volume.

• LocaliQ is adapting to changes in search behavior by leaning into social and owned inventory, aiming for resilience and future growth.

• Video and first-party data are seen as major opportunities for advertising growth and higher CPMs.

Response to industry disruption and AI

• Proactively preparing for reduced reliance on Google Search and the rise of AI-driven search, focusing on direct consumer engagement and alternative platforms.

• Blocking most AI bots from scraping content, with licensing deals in place for select platforms like Meta, Perplexity, Microsoft, and Amazon.

• 90% of bot scraping attempts target local content, highlighting its unique value.

• U.K. regulatory developments allow publishers to opt out of AI while remaining in search, strengthening negotiation leverage for licensing.

• Anticipates that as AI platforms need quality content, licensing deals will become essential for platforms like Google.