NYSE$TDAY

USA TODAY Co Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported a net loss and declining revenues due to industry-wide headwinds and rising costs, while digital transformation efforts showed progress with subscriber growth and digital marketing solutions revenue.

Gannett's Q2 2022 results reflect industry challenges with a net loss of $53.7 million and a 6.9% decrease in total revenues. However, digital-only paid subscribers grew by 35% year-over-year, and Digital Marketing Solutions achieved record core platform revenues.

  • Total revenues decreased by 6.9% compared to Q2 2021, totaling $748.7 million.
  • Digital-only paid subscribers reached 1.87 million, a 35% increase year-over-year.
  • Digital Marketing Solutions core platform revenues hit a record high of $116.4 million, up 11.2% year-over-year.
  • The company is implementing a cost reduction program focused on its legacy print business to address economic headwinds.

Headline financials

Total Revenue

$749M

Previous: $804M-6.9%
EPS (adj)

-$0.20

Previous: $0.13-253.8%
Capital Expenditures

-$23.3M

Previous: -$15.8M-47.2%
Free Cash Flow

-$77M

Previous: -$706K-10803.7%
Net Income

-$53.7M

Previous: $15.1M-455.2%
Operating Income

-$21.2M

Previous: $45.4M-146.7%
Gross Profit

$273M

Previous: $331M-17.7%
Cash & Equivalents

$87.3M

Previous: $159M-44.9%
Total Assets

$2.65B

Previous: $2.97B-10.8%
Stock-Based Comp

$5.39M

Previous: $5.78M-6.8%

Revenue & EPS history

Gannett · Revenue · Quarterly

$749M

Q2 2022-6.9%vs Q2 2021
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

Based on current economic conditions, the Company is revising its full year outlook. The Company's estimates do not factor in the impact of any future acquisitions or dispositions.

Tailwinds

  • Ending Digital-only subscribers 2.0M to 2.2M
  • Strategic reductions to our cost structure
  • Identified additional non-strategic and real estate assets to bring to market
  • Focused on repaying $150 million to $200 million of debt in 2022
  • Robust balance sheet

Headwinds

  • Revenues $2.95B to $3.0B
  • Same-store total revenues Year-Over-Year (7)% to (6)%
  • Net income (loss) attributable to Gannett $(70)M to $(60)M
  • Cash provided by operating activities $45M to $65M
  • Free cash flow (non-GAAP) $0 to $20M

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

-0.7%

Avg return

Earnings day

-0.8%

Avg return

5 days after

+6.7%

Avg return

30 days after

47%

22 / 47 earnings

Positive

+31.5%

Q1 2024

Best reaction

-28.1%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.8%-1.1%+7.4%
Q3 2025+28.4%+23.8%+21.9%
Q1 2025-3.4%-1.6%+10.6%
Q4 2024-3.7%-15.8%-36.3%
Q3 2024-19.4%-14.5%-10.7%
Q2 2024-12.8%-10.2%+7.7%
Q1 2024+31.5%+33.2%+56.0%
Q4 2023-6.3%-2.7%+0.5%
Q3 2023-14.8%-15.2%-16.1%
Q2 2023+17.1%+26.2%+7.3%
Q1 2023+1.5%-2.0%+13.6%
Q4 2022+17.8%+17.4%-29.1%
Q3 2022+23.0%+31.1%+74.3%
Q2 2022-26.5%-26.2%-28.7%
Q1 2022-8.8%-11.7%-7.9%
Q4 2021-5.6%-12.4%-13.2%
Q3 2021-7.1%-13.7%-21.1%
Q2 2021+11.4%+11.0%+15.7%
Q1 2021-4.0%-1.3%+12.4%
Q4 2020-11.8%-2.7%-4.6%
Q3 2020+12.3%+20.2%+148.2%
Q2 2020-7.8%+6.0%+10.2%
Q1 2020+1.9%+3.7%+162.6%
Q4 2019-14.1%-18.6%-59.3%
Q3 2019-3.5%-11.1%-23.3%
Q2 2019-28.1%-18.3%-8.2%
Q1 2019-3.8%-3.1%-13.7%
Q4 2018+0.7%+0.9%-16.0%
Q3 2018-2.4%-3.8%-12.1%
Q2 2018-1.8%-1.3%-1.8%
Q1 2018+2.3%-1.1%+6.2%
Q4 2017-1.6%+0.4%+9.3%
Q3 2017+2.2%-0.1%+12.4%
Q2 2017+1.9%-1.5%+4.4%
Q1 2017+2.8%-7.6%-10.9%
Q4 2016+2.1%+1.8%-4.9%
Q3 2016+1.0%+0.8%+11.3%
Q2 2016-9.1%-10.6%-21.3%
Q1 2016+1.2%
Q4 2015+1.5%
Q3 2015-6.5%
Q2 2015+8.6%
Q1 2015+0.5%
Q4 2014+2.4%
Q3 2014-1.3%
Q2 2014-1.0%
Q1 2014-1.1%
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012

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