NYSE$TDAY

USA TODAY Co Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported financial results, showing progress on key priorities with year-over-year Adjusted EBITDA growth and digital revenues surpassing 45% of total revenues.

Gannett reported its Q3 2024 financial results, highlighting progress on key priorities, including year-over-year Adjusted EBITDA growth and digital revenue growth. Total digital revenues surpassed 45% of total revenues. The company also repaid approximately $29 million of debt and significantly increased its free cash flow by 168% year-over-year.

  • Total digital revenues increased 5.2% year-over-year, representing an all-time high of 45% of total revenues.
  • Digital-only subscription revenues grew 25.0% year-over-year.
  • Free cash flow increased by 168% year-over-year.
  • The company repaid approximately $29 million of debt during the quarter.

Headline financials

Total Revenue

$612M

Previous: $653M-6.2%
EPS

-$0.14

Previous: -$0.18+22.2%
Total Gannett Digital-only ARPU

$8.16

Previous: $6.82+19.6%
Core Platform ARPU (DMS)

$2.78K

Previous: $2.64K+5.3%
Core Platform Avg Customer Count (DMS)

14.3K

Previous: 15.3K-6.5%
Total Digital-only Paid Subscriptions

2.1M

Previous: 2.0M+4.7%
Capital Expenditures

-$36.7M

Previous: -$29.7M-23.6%
Free Cash Flow

-$56.4M

Previous: -$32.3M-74.6%
Net Income

-$19.7M

Previous: -$2.57M-665.9%
Operating Income

-$6.02M

Previous: $34.9M-117.2%
Gross Profit

$237M

Previous: $237M-0.1%
Cash & Equivalents

$102M

Previous: $109M-6.8%
Total Assets

$2.06B

Previous: $2.25B-8.3%
Stock-Based Comp

$2.91M

Previous: $3.94M-26.3%

Revenue & EPS history

Gannett · Revenue · Quarterly

$612M

Q3 2024-6.2%vs Q3 2023
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Forward guidance

Gannett expects total digital revenues to grow approximately 6%-7% on a same store basis. Total revenues are expected to be down in the low to mid-single digits on a reported and same store basis. Adjusted EBITDA is expected to grow versus the prior year. Free cash flow is expected to grow in excess of the expected growth in Adjusted EBITDA after excluding the estimated $7 million impact of the debt refinancing.

Tailwinds

  • Total digital revenues are expected to grow approximately 6%-7% on a same store basis.
  • Net income attributable to Gannett is expected to improve, after excluding an impairment charge of approximately $46.0 million related to the exit of our McLean, Virginia office during the first quarter of 2024.
  • 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 after excluding the estimated $7 million impact of the debt refinancing.

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.
  • Debt refinancing impacted slight adjustments to total digital revenues and free cash flow
  • Strategic decisions impacted total reported revenue
  • Home improvement sector performance impacted DMS segment core platform revenues

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 Q3 2024

Historical avgQ3 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