NYSE$TDAY

USA TODAY Co Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Reported strong financial results with year-over-year growth in Adjusted EBITDA and improved same store revenue trends.

Gannett reported its Q2 2024 financial results, highlighting growth in digital revenues and a reduction in net debt. The company repaid $24.3 million of debt and total net debt fell under $1.0 billion. The company reiterated its full year 2024 outlook and its outlook over the course of 2025 and 2026.

  • Total digital revenues reached $278.4 million, representing 43.5% of total revenues, a 6.2% increase year-over-year.
  • Digital-only subscription revenues grew 22.3% year-over-year, reaching $46.3 million.
  • Net income attributable to Gannett improved by $26.4 million year-over-year to $13.7 million.
  • Free cash flow improved sequentially by $15.9 million compared to the first quarter of 2024, totaling $25.4 million.

Headline financials

Total Revenue

$640M

Previous: $672M-4.8%
EPS

$0.09

Previous: -$0.04+325.0%
Total Gannett Digital-only ARPU

$7.62

Previous: $6.35+20.0%
Core Platform ARPU (DMS)

$2.78K

No prior period
Core Platform Avg Customer Count (DMS)

14.7K

No prior period
Capital Expenditures

-$22.7M

Previous: -$16.4M-38.2%
Free Cash Flow

-$8.98M

Previous: -$29.1M+69.2%
Net Income

$13.7M

Previous: -$12.7M+208.4%
Operating Income

$6.97M

Previous: $13.5M-48.4%
Gross Profit

$248M

Previous: $246M+0.9%
Cash & Equivalents

$98.9M

Previous: $107M-7.3%
Total Assets

$2.05B

Previous: $2.31B-11.0%
Stock-Based Comp

$3.51M

Previous: $5.05M-30.4%

Revenue & EPS history

Gannett · Revenue · Quarterly

$640M

Q2 2024-4.8%vs Q2 2023
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

The company reiterates its full year 2024 outlook and its outlook over the course of 2025 and 2026.

Tailwinds

  • Total digital revenues are expected to grow approximately 10%.
  • Net income attributable to Gannett is expected to improve, after excluding an impairment charge of approximately $46.0 million.
  • Adjusted EBITDA is expected to grow versus the prior year.
  • Cash provided by operating activities is expected to grow versus the prior year.
  • Free cash flow is expected to grow in excess of the expected growth in Adjusted EBITDA.

Headwinds

  • Total revenues are expected to be down in the low to mid-single digits on a reported and same store basis.
  • Capital expenditures are expected to increase as a result of investments in technology and products.
  • Total revenues are expected to grow in the low single digits on a reported basis and same store basis.
  • Net income attributable to Gannett is expected to improve to positive.
  • The Company’s future financial results could differ materially from the Company’s current estimates.

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 2024

Historical avgQ2 2024

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro