NYSE$NYT

The New York Times Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

The New York Times Company reported strong Q3 2023 results, driven by digital subscriber growth and effective cost management.

The New York Times Company announced positive third-quarter 2023 results, marked by a substantial increase in total subscribers, exceeding 10 million, driven by bundle and multi-product offerings. Digital-only ARPU growth, coupled with robust digital subscription revenues, contributed to a 9.3% increase in total revenues. Strategic investments in journalism and product development drove adjusted operating costs up, while operating profit saw a significant year-over-year increase due to revenue growth and cost management.

  • Total subscribers surpassed 10 million, with approximately 210,000 net digital-only subscribers added.
  • Digital-only ARPU increased to $9.28, marking the fifth consecutive quarter of growth.
  • Digital subscription revenues grew by 15.7% year-over-year.
  • Advertising revenues increased by 6.0% year-over-year, driven by digital advertising.

Headline financials

Total Revenue

$598M

Previous: $548M+9.3%
EPS (adj)

$0.37

Previous: $0.21+76.2%
Capital Expenditures

-$16.5M

Previous: -$27.8M+40.5%
Free Cash Flow

$37.1M

Previous: $8.81M+320.9%
Net Income

$53.6M

Previous: $36.6M+46.4%
Operating Income

$63.6M

Previous: $51M+24.6%
Gross Profit

-$333M

Previous: $51M-752.0%
Cash & Equivalents

$588M

Previous: $469M+25.4%
Total Assets

$2.55B

Previous: $2.52B+1.2%
R&D Expense

$57.4M

No prior period
Stock-Based Comp

$14.6M

Previous: $9.26M+57.2%

Revenue & EPS history

NYT · Revenue · Quarterly

$598M

Q3 2023+9.3%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

NYT · $399M total across 3 segments · Q3 2023

  • Digital-only subscription
    $282M+15.7%
  • Digital advertising
    $75M+6.7%
  • Print advertising
    $42.1M+4.8%

Forward guidance

The company provided guidance for the fourth quarter of 2023, anticipating revenue increases in digital-only and total subscriptions but expects a decrease or slight increase in advertising revenues. Adjusted operating costs are projected to remain relatively stable.

Tailwinds

  • Digital-only subscription revenues are expected to increase by 6-9% (or 13-16% on an adjusted basis).
  • Total subscription revenues are expected to increase by 2-5% (or 8-11% on an adjusted basis).
  • Digital advertising revenues are expected to decrease low-single-digits to increase mid-single digits (or increase low-to-high-single-digits on an adjusted basis).
  • Total advertising revenues are expected to decrease mid-single-digits to increase low-single-digits (or decrease low-single-digits to increase mid-single-digits on an adjusted basis).
  • Other revenue is expected to decrease low-single-digits to increase low-single-digits (or increase low-to-mid-single-digits on an adjusted basis).

Headwinds

  • The fourth quarter of 2022 included an additional six days due to a change in the company's fiscal calendar, affecting year-over-year comparisons.
  • Guidance is complex due to the need to adjust for the extra week in the previous year.
  • The company expects approximately $80 million in depreciation and amortization on a pre-tax basis.
  • The company expects approximately $20 million in interest income and other, net on a pre-tax basis.
  • The company expects approximately $35 million in capital expenditures.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

-0.1%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.8%

Avg return

30 days after

43%

29 / 68 earnings

Positive

+17.1%

Q1 2017

Best reaction

-23.1%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.8%+0.0%-0.5%
Q4 2025-6.3%-4.9%+11.4%
Q3 2025-0.3%+8.4%+12.1%
Q1 2025-0.1%+3.0%+6.0%
Q4 2024-11.9%-11.9%-11.9%
Q3 2024-6.3%-1.0%-3.9%
Q2 2024+3.0%+3.3%+1.6%
Q1 2024+3.8%+3.9%+8.7%
Q4 2023-9.9%-8.7%-10.8%
Q3 2023+3.6%+4.4%+12.2%
Q2 2023+7.5%+8.6%+9.3%
Q1 2023-7.7%-6.5%-6.0%
Q4 2022+9.3%+7.4%-0.6%
Q3 2022+12.5%+16.2%+21.5%
Q2 2022-0.9%-0.5%-1.6%
Q1 2022-7.8%-13.8%-11.8%
Q4 2021+0.8%-1.4%+11.5%
Q3 2021-8.2%-11.4%-14.9%
Q2 2021+8.6%+9.8%+19.7%
Q1 2021-1.2%-0.2%-6.8%
Q4 2020-0.6%-2.7%-0.8%
Q3 2020-4.6%-7.6%+14.0%
Q2 2020-0.7%-4.9%-7.4%
Q1 2020+5.2%+8.2%+24.3%
Q4 2019+9.4%+13.0%+9.6%
Q3 2019-5.4%-2.3%+1.3%
Q2 2019-14.4%-20.2%-14.7%
Q1 2019+5.9%-0.5%-1.1%
Q4 2018+13.7%+16.1%+23.9%
Q3 2018+5.4%+2.0%+1.6%
Q2 2018-6.0%-6.4%-6.0%
Q1 2018-0.9%-0.9%+0.0%
Q4 2017+8.8%+9.0%+11.7%
Q3 2017-6.5%-9.4%-2.4%
Q2 2017+5.2%+4.1%-0.5%
Q1 2017+17.1%+18.9%+23.1%
Q4 2016+5.9%+8.1%+7.7%
Q3 2016-0.9%+1.8%+17.4%
Q2 2016+1.5%-0.1%+2.0%
Q1 2016-4.3%
Q4 2015-2.3%
Q3 2015+1.8%
Q2 2015+0.0%
Q1 2015+6.2%
Q4 2014+9.2%
Q3 2014-4.2%
Q2 2014-9.3%
Q1 2014-1.6%
Q4 2013+4.2%
Q3 2013-0.3%
Q2 2013-2.1%
Q1 2013-0.9%
Q4 2012+5.2%
Q3 2012-23.1%
Q2 2012+9.3%
Q1 2012-2.0%
Q2 2011+0.8%
Q4 2011+0.8%
Q3 2011-0.8%
Q1 2011+0.0%
Q1 2010+0.0%
Q2 2010-7.3%
Q4 2008-7.3%
Q4 2010-7.3%
Q3 2010+0.5%
Q3 2009+0.5%
Q2 2009-3.4%
Q4 2009-3.4%

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