Q3 2022 New York Times Co Earnings Call
Good morning, and welcome to the New York Times third quarter 2022 earnings conference call. All participants will be in listen only mode should you need assistance. Please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your.
Telephone keypad to withdraw your question. Please press Star then two.
Please note. This event is being recorded and now I'd like to turn the conference over to Heartland took Klitzke Vice President of Investor Relations. Please go ahead.
Thank you and welcome to the New York Times Company's third quarter 2022 earnings conference call on the call today, we have Meredith Kopit, Levien, President and Chief Executive Officer, and Rolling to Putto Executive Vice President and Chief Financial Officer before we begin I would like to remind you that management will make forward looking statements during the <unk>.
Course of this call. These statements are based on our current expectations and assumptions, which may change over time, our actual results could differ materially due to a number of risks and uncertainties that are described in the company's 2021 10-K and subsequent SEC filings. In addition, our presentation will include non-GAAP financial measures and we.
Provided reconciliations to the most comparable GAAP measures in our earnings press release, which is available on our website at investors <unk> N Y T C O dot com and finally, please note that a copy of the prepared remarks from this morning's call will be posted to our investor website. Shortly after we conclude with that I will turn the call.
Over to Meredith Kopit Levien.
Thanks, Harlan and good morning, everyone.
Our third quarter results support our confidence in our strategy and reinforced our conviction in the long term opportunity for the New York Times.
We made steady progress in the quarter toward becoming a central subscription for every English speaking person seeking to understand and engage with the world. We did so by advancing the three pillars of our strategy, leading news, helping people make the most of their lives and passion and put.
Those ideas together in a bundle that makes the time indispensable in the daily lives of millions more people.
Even with the macroeconomic headwinds, we anticipate it playing out largely as we expected we're showing the potential of our differentially valuable product portfolio and multi revenue stream model to drive sustainable growth and profit improvement as we scale.
Overall revenue grew in the quarter, nearly 8% with subscription revenue growth more than making up for a slight decline in overall advertising.
That revenue growth combined with lowing cost for us driving a 6% increase in adjusted operating profit.
With three quarters of the year behind US we are improving our outlook for full year 2022 results to the high end of the range. We first provided in February we now expect adjusted operating profit.
I'll have David basis of between 320 and $330 million, even with the dilution from our acquisition of the athletic.
I'll turn now to our third quarter subscriber results.
We added 180000 net new subscribers in the quarter with a slow start in July picked up in August .
From September .
The biggest story of the quarter was our continued progress on the bundle with mounting evidence that our strategy is working.
Third quarter was our best quarter, yet for bundled net additions with a record number of bundles start and percentage, let's start taking the bus.
To give you a sense of the pace of our progress in Q3. The percentage just starts on the bundle was double what we saw in Q1.
This progress was the result of deliberate efforts to cross promote our products on our biggest new surfaces and also to begin making them more interconnected for example, we added wordell to the main feed of our core news that and would that have played.
India, We also substantially shifted our merchandising efforts to feature of the bundle more prominently across news cooking and game.
We continued to improve onboarding to the bundle.
The new subscribers engage with multiple products.
This was the first full quarter that the athletic has been part of the bundle and we began to more aggressively market it as such to prospects.
We also made it easier for current time subscribers to find and engage with the athletic by adding a signed in with the times feature well. It's early days, we're encouraged by the number of bundled subscribers, who have activated their athletic access by their level of engagement with the athletic.
And by their early retention.
Leveraging the whole of our portfolio to drive the bundle is our priority over the coming quarters as we do that we'll be taking measures took further open up the athletics hard paywall.
Substantially increase awareness and free sampling of the athletic in order to build a large sustainable audience, but we expect that this will result in slower additions of subscribers on a standalone basis for some time as it did in the third quarter. Our ambition here is to be.
One of the leading players in global sports journalism, and we're confident that in doing so will create significant value for shareholders.
Notably we continued to see higher engagement among bundle among bundled subscribers with 10% to 20% more bundled subscribers engaging each week. The news only subscribers. This is true across the entire base.
And among cohorts of bundle subscribers, who are in their first few months with us and encouraging sign given strong relationships, we've seen between subscriber engagement and retention.
As a result of the efforts I just described.
<unk> crossed an important milestone in the quarter, we now have more than a million bundled subscribers discernible momentum a key element of our strategy to drive revenue profit and shareholder value.
The times now has more than $9 3 million subscribers with $10 8 million subscriptions well on our way to our next mile marker.
10 million subscribers by 2027.
Digital subscriber revenue grew 23% in the quarter driven primarily by successfully stepping up subscribers from promotional offers to higher prices, which continues to go well and reflects our strategy in action.
In addition, we view the progress on our bundled strategy as a key indicator of future revenue growth as bundled subscribers pay roughly 50% more than news subscribers.
We continue to believe that volume is our biggest driver of long term shareholder value, but we are also working through how best to exercise our pricing power on our individual products. We believe price increases on the individual products can drive more people to take our bun.
No.
Can you also help us realize more value from tenured subscribers, we expect to have more to say about this in the coming months.
Let me turn now to advertising for the New York Times groups digital advertising outperformed our guidance in the quarter, while print slightly underperformed.
Overall performance was as expected given the stiff headwinds we anticipate it.
We saw the impact of deteriorating macroeconomic conditions, most clearly in our tech and media categories still there were several areas of relative strength in a tough market like direct sold display advertising, we believe that strength underscores the value of our first party data and premium.
<unk> products are unique audio offerings and the appeal of the times brand and varied product set to a wide range of marketers speaking of our appeal to a wide range of marketers, we officially launched display advertising on the athletic at the end of the quarter.
It will take time for the business to fully ramp up demand is strong and we're off to a good start even in a difficult market. The athletic is attracting new advertisers and securing incremental AD buys from existing times advertisers.
As reflected in our forward looking guidance, we expect continued macroeconomic headwinds.
In fact, our AD business in the near term, but the resilience of the times AD strategy and the attractiveness of the athletic opportunity give us confidence in advertising as a longer term growth driver.
Now having talked about revenue, let me turn to costs.
In Q3, we began to see the benefits of our commitment to meaningfully slow cost growth.
Saving case savings came from two major areas and are part of a deliberate strategy, we've been pursuing and describing for some time now.
First as we've become more effective in driving subscription growth through our organic audience engine and digital product work, we've substantially reduced our marketing spend.
Second while we continue to invest thoughtfully in areas that widen our moat, our newsroom engineering and data teams, we've slowed head count growth across the company given our strategic clarity and ability to execute we believe we are well positioned to support our.
Future growth.
These cost discipline efforts are strategic and we expect them to be sustainable.
2022 has been a year of intense market uncertainty the headwinds that we envisioned when we shared our midterm a O P target have materialized largely as we expected, but we have a powerful multi revenue stream model with great unit economics, and we believe.
We are well poised for further growth, we're managing through the headwinds effectively and aggressively working to capture the tailwind.
With that I'll hand, it over to Roeland I look forward to answering your questions shortly.
Thank you Meredith and good morning.
As Meredith said, our third quarter results combined with our fourth quarter outlook suggests we expect to post a strong full year 2022 result, even as we face macroeconomic headwinds.
Turning to the quarter adjusted diluted earnings per share was 21, two cents lower than the prior year we.
We reported adjusted operating profit of $69 million higher than the same period in 2021 by approximately $4 million as growth in profit at the New York Times Group was partially offset by losses at the athletic which was slightly less than we expected in our acquisition plan.
Adjusted operating profit at the New York Times Group was approximately $79 million in the quarter higher by approximately $13 million compared to the prior year, while the athletic lost approximately nine and a half million dollars.
On a consolidated basis. The company added 180000, net new digital only subscribers and 210000 net new digital only subscriptions in the quarter.
With continued strong growth and adoption of our bundled product.
As Meredith noticed in the third quarter the percentage of starts on the bundled doubled versus what we saw in the first quarter and we passed 1 million digital bundle subscribers.
As reflected in our public reporting we also surpassed the 2 million Mark for combined digital only bundle and multi product subscribers.
This is a key metric because the data tells us that those subscribers using two or more products not only pay more but are more likely to retain than those using only one product.
The number of digital only bundle and multi product subscribers grew by approximately 150000 in the quarter driven mainly by increases to the number of number of bundled subscribers.
Note that we made a slight change in this metric since lap last quarter by excluding our print home delivery subscribers in order to provide investors with a clearer picture of our digital growth.
With <unk>, we continue to enable access to the athletic two additional bundle subscribers in the third quarter, a process, which began late in the second quarter. This action was the primary driver of the increase in digital only subscribers to the athletic in the quarter.
Total subscription revenues increased approximately 12% in the quarter with digital only subscription revenue growing approximately 23% to approximately $244 million.
Digital only subscription revenue grew primarily as a result of the large number of subscribers, whose introductory promotional subscriptions graduated to higher prices.
The new subscriptions, we have added in the past year and the inclusion of subscription revenue from athletic Standalone subscriptions.
It's worth noting that we began enabling access to the athletic products for our digital bundle subscribers late in the second quarter, which we believe increases the value of the bundle for both potential and existing subscribers to account for this value as noted in our second quarter 10-Q, we are allocating a portion of digital subscription bundle.
Revenue from the New York Times group to the athletic, resulting in a reduction in the amount of revenue recorded at the New York Times Group.
Moving to digital only subscribers.
Which includes all of our digital products.
For the quarter digital only subscribers <unk> decreased 8% compared to the prior year from $9.64 to.
To $8 87.
And increased approximately 50 basis points compared to the prior quarter.
The year over year decline on the consolidated <unk> is primarily a result of the inclusion of the athletic.
Excluding the impact of the athletic the declines were significantly less pronounced although the effect of new subscribes subscribers at introductory promotional prices, including a large number of new game subscribers more than offset the ongoing gains from subscribers converting to the bundle or otherwise transitioning to higher prices.
Ex the athletic domestic ARPA increased modestly both year over year and sequentially due to the large cohort of subscribers, graduating from promotional to higher prices in the period.
The domestic ARPA result demonstrates the power of our long term pricing strategy continuing to play out.
Print subscription revenues declined approximately three 5% as the benefit from the first quarter home delivery price increase did not fully offset lower volumes in both home delivery and single copy.
Total advertising revenues decreased approximately a half percent in the quarter with growth in digital advertising nearly offsetting declines in print.
Digital advertising grew 5% as a result of higher direct sold advertising at the New York Times Goop and the addition of advertising revenue from the athletic which more than offset lower revenue from fewer programmatic advertising impressions at the New York Times Group.
Meanwhile, print advertising was lower by eight 5% compared with 2021, primarily driven by declines in the advocacy and media categories.
Other revenues decreased approximately 2% compared with the prior year to approximately $55 million, primarily as a result of lower licensing revenues, partially offset by higher revenue from wire cutter affiliate and live events.
Licensing revenues were lower primarily due to a onetime book deal in 2021.
Adjusted operating costs were higher in the quarter by nearly 8% as compared with 2021 due to the addition of costs associated with the athletic while costs at the New York Times Group were flat.
These results were consistent with our plan for cost growth to slow in the back half of the year.
Adjusted operating costs were slightly better than the guidance, we provided in the second quarter as a result of lower cost of revenue mainly in print production and distribution and subscriber servicing.
I'll now discuss the cost drivers for the New York Times Group.
Cost of revenue increased 7% as a result of growth in the number of employees, who work in the New York Times' newsroom as well as higher subscriber servicing costs.
Sales and marketing costs decreased approximately 32% largely due to lower media expenses.
Media expenses were $27 million, approximately 50% below last year, which was a period of elevated marketing spend.
Product development costs increased approximately 14% as a result of growth in the number of digital product development employees in connection with strategic digital subscription initiatives and.
In general and administrative costs grew approximately 6%.
We had one special item in the quarter of $7 million gain related to a multi employer pension liability adjustment.
Our effective tax rate for the third quarter was approximately 28% versus unexpected marginal rate of 27%.
Moving to the balance sheet, our cash and marketable securities balance ended the quarter at approximately $469 million, an increase of approximately $16 million compared with the second quarter of 2022.
The company remained debt free with a $350 million revolving line of credit available.
Share repurchases during the third quarter totaled $25 million and the company continued to purchase shares subsequent to the end of the quarter.
Approximately $57 million currently remains under the company's repurchase authorization.
Taken together with the payment of our nine cent quarterly dividend, we expect 2022 capital returns to exceed the high end of the guidance. We provided at our June Investor Day targeting capital return of 25% to 50% of free cash flow.
The continuing repurchase activity reflects our view that our shares an attractive value and our willingness to repurchase shares beyond the offsetting.
Offsetting the impact of share based compensation, when we see opportunity in the market.
Within the context of a prudent capital structure, we will continue to evaluate opportunities for capital return.
Let me conclude with our outlook for the fourth quarter of 2022 on the New York Times groups system, which does not include the athletic. Please note that this guidance reflects the impact of an extra week in our fourth quarter of 2022 as compared with 13 weeks in the same period of 2021 comparisons are to the company's consolidated results for the fourth quarter of <unk>.
21 prior to the acquisition of the athletic.
The effect of the Earthlink on our consolidated guidance has been included in the outlook section of the earnings release that we published this morning.
So the New York Times Group total subscription revenues are expected to increase 10% to 13% compared with the fourth quarter of 2021 with digital only subscription revenue expected to increase approximately 20%.
Both overall and digital advertising revenues are expected to be lower by approximately 10% compared with the fourth quarter of 2021, which was our largest digital quarter ever.
Mainly due to macroeconomic conditions on top of the challenging comparisons to last year, especially in the technology category.
Other revenues are expected to increase in the low single digits.
Adjusted operating costs are expected to be approximately flat compared with the fourth quarter of 2021, given the uncertain macroeconomic environment. We continue to look closely at cost while strategically investing in areas that widen our moat like journalism and digital product development.
Given our performance through September and our outlook for Q4, we are updating and further quantifying our a O P guidance range for the full year to between 320 and $330 million.
Given the challenging macroeconomic backdrop, we feel this updated guidance reflects the strength of our model and soundness of our essential subscription strategy.
And with that I'll turn it back to merit for some final thoughts.
Thanks, Roland before we open the line for Q&A, Let me reiterate a few key takeaways.
Making great progress with the bundle, which underpins our ability to better penetrate our addressable market and drive more volume and revenue.
Given our confidence in our strategy and the investments we've already we've been able to actively slow cost froze.
Even amid ongoing macroeconomic headwinds we believe the strength of our subscription first multi revenue stream model will enable us to build a larger more profitable business and we're aggressively chasing the tail winds that will best position us to grow revenue and profit.
And with that we'd be happy to open it up for questions.
We will now begin the question and answer session.
I ask a question you May press Star then one on your Touchtone phone.
If youre using a speakerphone please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Our first question comes from Thomas <unk> from Morgan Stanley . Please go ahead.
Hi, Thanks, so much and I really appreciate all the color on the bundle adoption strategy.
What we're starting to see the uncertain macro environment impacting advertising more broadly across the space really can you talk a bit about maybe more on the offsetting impact of <unk> on the subscription side as you shift towards selling.
More on a higher ARPA bundle, whether or not there's an increased impact related to you know churn or gross acquisitions.
I think typically <unk> see the seasonal uptick in subscriber net adds relative to Q2 and the 180 K was sequentially similar just wondering if the ongoing changes to how your merchandise the product is causing some additional noise there.
Good morning, Thomas So I'll say, a few things in enrolling you'll add is as you see fit.
But the first thing to say is if we look back in history changes in the macro economic environment. Thus far at the times have tended to have more impact on the AD business than on our subscription business and I'd say that's been the case you know as long as long as we've been doing bad things very very.
Broadly so that that's what history would suggest as far as the net adds number in the quarter all point to the pattern you know.
Typically we do have a slow summer and we did and we saw real pick up in August and and further acceleration in in September and I would just say in general we continue to believe we are well on track for R. R.
Our medium term target of next Mile-marker 15 million subscribers by year end 2027, and we feel really good about the progress we're making on the bundle and I'll just remind everyone that you know that the bundle itself.
And that lead people pay you know somewhere in the neighborhood of 50% more for it but it's also part of that penetration strategy. We think news is going to continue to be very appealing to people, but whatever the news cycle. We now have a number of other things that will appeal as well.
The one thing I would add is that we didn't see any negative signs on the retention side of the business. It's a matter of fact, it was a tick better than we had seen recently so we were happy about that you might expect to see a little bit of that in cancellations from the economy and we did not see that.
That's helpful. And then just as a follow up for on we're starting to see some nice operating leverage in the model as you mentioned the advertising environment change your view on the ability to deliver on margin expansion expectations into next year.
Thanks, So much yeah at this point, we don't see a reason to come off those expectations. We still think the core of the business is strong.
You've seen this quarter a good illustration of what we've been able to do on the cost side.
Chris mentioned, there was that that the action we took on the cost side, we believe to be strategic and that will be durable and respect expect that to follow through into future quarters. So we still feel good about that.
I'll just add that we largely anticipated what we're seeing in advertising and that's been reflected in everything we leave suggestion.
The next question comes from what's silly Tarasoff from Cannonball Research. Please go ahead.
Thank you good morning.
Wanted to ask you to talk about your visibility into subscriber acquisition and retention.
And retention trends now versus a couple of years ago, a little earlier when they were just starting your.
Digital business growth.
Because if you're in.
We all remember that it was hard for you to predict what a quarter would look like given that the middle of the quarter has that changed and if so.
Why and what kind of expectations do you have now based on that thank you.
Hi, this is silly I'm I'm not going to start on that and a couple of things.
The durability of.
Of the subscription model, which suggests that our visibility on revenue.
It remains pretty good you know we don't guide on net adds because you know we we don't think that you know we've long said, we don't expect that to be linear quarter to quarter and youre going to see a lot of variability for a lot of different reasons.
I'll point to a few things about the drivers and maybe this is part of what was under underlying Thomas's question as well. The thing is we do see and sort of increasing control over over key lever as roeland mentioned churn.
We've long said now we talked about this a lot last year that churn was at a manageable level and we needed to keep it as such and we feel you know anything.
Anything can change at any moment, but we feel pretty good about our ability to do that so far we also talked a lot last year and beginning of this year about the importance of subscriber engagement, which is like the most important leading indicator on churn and we also feel quite good about our ability to drive that.
You know, it's true that the differential quality and value of the product the widening product set but also the kind of product interventions, we make when we enhance how the product works that that's that's really working and that gives us some greater sense of control, which what you're getting at what we have less control over is Audi.
And I'll point to two things that that certainly change obviously the news cycle itself is going to continue to change it will ebb and flow the big thing that we've seen this year that's been different from past years as we've had a number of years, where it was kind of one or two very very big storylines.
Driving the news cycle and now we're seeing a much more varied set of stories and that means the audience pattern changes and then theres been a fair amount said kind of about the exogenous factors that big Big Tech platforms.
Or in some way is kind of shifting away from from sending audience as much audience as they were sending to new sites and I'll just say there we felt that a bit in the quarter. We've also got a really good track record of adapting to exogenous changes.
And in the ecosystem.
Thank you very much.
The next question comes from Doug Arthur from Huber Research Partners. Please go ahead.
Yeah, good morning to.
Two questions Rolling the 45% drop in media expenses in the third.
Third quarter is that.
Is that just because of our the big expenditure a year ago or is there some sustainability to kind of the funnel the strikes in the funnel that you you feel you can.
He said.
Contained going forward and then I've got a follow up on the net adds thanks sure. So thanks for the question Doug. It's it's much more the latter though the comp the comp did contribute to the 45%, but we are now at a point.
I think we've been predicting for quite a while where we believe the investments we've made in the product.
Improvements we've made there are starting to really pay off to get the product to do some of the work that we used to have done with paid marketing. So we do.
See this as completely sustainable and kind of the approach that we'll take going going forward. So we're quite happy about how that's working out.
Okay, great. Thank you and then Meredith.
When you onboard the athletic the.
Digital subscriber number was about 1 million to the way you're reporting it now looks like it's just under 2.3 million is that an apples to apples comparison or does that include.
Some benefit of the bundle I'm, a little confused on that or have you actually added.
What's that.
Short answer is it does include the benefit of the bundle and that's been a huge area of focus.
I'm getting our current all digital access subscribers all access subscribers activate them be athletic and then getting them to engage but Roland may have more to say about that that kind of specifics on reporting on the reporting that is that as everyone who has access how as a paid subscription.
Digital subscription and has access to the athletic so as I mentioned in my prepared remarks.
We enabled.
A very large number of our of our existing bundle subscribers to get access to the athletic that happened at the very end of last quarter, but but most of it happened. This quarter. So this is the first full quarter of it. So you see a large number of folks on the bundle added into that number and we now have over.
For a million bundle subscribers. So that is the big push there.
Okay, Great and just as a quick follow up Meredith when you acquired your athletic I think you guided to a loss of 15 plus million for 2022.
That looks like.
Like you're running.
Running well below that at this point is that fair.
Fair.
Okay. Thank you.
The next question comes from David Karnofsky from J P. Morgan. Please go ahead. Thank.
Thank you Meredith you noted in your prepared remarks, potentially increasing prices on the standalone products to drive the uptake just interested to know how you think about when's the right time to execute on something like that especially as we're kind of hitting a potentially a weaker economic period and then one for Rowan since you're now guiding the year in terms of adjusted operating profit as a pause.
Paul just quantify the benefit of that extra week to fourth quarter. Thank you.
Yeah.
Good questions and the first thing to say is when we think about sort of shareholder value broadly. We continue to believe that growing volume is is the best way to.
To to create more value. So we are always looking for what is the optimal way to grow both volume and realized price.
But you know we're now living through a period of prolonged inflation and we're paying close attention to what other companies are doing around inflation and price rises.
We've got a strong history here of taking a measured approach and kind of testing and learning to positive effect and we will use.
Some will remember we did that with a tenured.
Price increase on news I think a couple of years ago now rolling them, so kind of tested our way into it and figured out that the optimal way to do that and that's that's how we're thinking now I'm really asking ourselves is there an opportunity to do that across the individual products for two reasons to compel people.
To date, the bundle and also because tenured subscribers tend to be the one that you were getting the most value out of the product. So as as we work our way through that and figure out if we can find that duane of optimal body of men and priced well we'll share more.
David to your question about the 50 <unk> week.
We're not able to two <unk>.
Ascribed costs perfectly the 53rd week, but I think that the way to think about it is that that week is worth about about $10 million on an adjusted operating profit basis.
Very helpful. Thank you.
The next question comes from Craig Huber from Huber Research Partners. Please go ahead.
Great. Thank you mirrored with can you just talk a little bit further about engagement.
Digital products you have on a like for like basis, how that might have changed now versus say a year ago. So my first question, Yeah happy happy to do that great question, and we are intensely focused on subscriber engagement across the portfolio.
What we don't quantify that I'll, just say, we broadly feel quite good about it even as as the subscriber base grows were kind of able.
Able to hold on broadly to to a level of engagement that we think is in.
To the model and important to getting to know.
Our next mile marker on on volume and important to everything we're doing from a bundle perspective, and I'll say on the bundle them something that's been very pleasing as we can tell you know obviously were driving more people to the bundle and all the ways. We've described so far but we're continuing to see bundle subsea.
Drivers engage you know, 10% to 20% better than news subscribers and again I'm, telling you kind of enterprise engagement is good but its bundle is even even better and that's that's a huge area of focus that's why that's rolling and I've described we've said like first priority on the athletic.
Get it into the bundle get people using it.
So I would tell you that that feels all feels broadly good there's a bunch of stuff, we don't control and overall audience.
There you know we feel confident that we've got a good track record of adapting to whatever comes our way in terms of the platforms and the ecosystem, but feel really good about subscriber engagement and I'll say, one more thing within each product and then across the bundle, we still have plenty of levers to drive.
To continue to drive engagement, there's just a lot in these products to get people to come back.
And then my other two questions real quick if I could I think roeland, you mentioned, you're a $57 million left on your share buyback program.
You wanted to obviously you could exhaust that in any one quarter I'm pretty quick order.
You may have.
Management team and your board of Directors think about capital return going forward. Once that is exhausted here I mean, given your very clean balance sheet.
Do you guys think about potentially upping that significantly here.
So what we can talk about the dividend as well as any potential chance to increase that and then my nitpick question. If I could worry sure to size your newsroom out now the number of journalists versus say beginning of the year.
Ill take the first question, so I mean that the capital return policy and the moves we might make.
<unk> would be a conversation that we would have with our board.
We don't have a lot more to say about it about it today I think I think the moves we made and announced last February showed a bit of a shift in our in our philosophy, which we think was a positive step to be able to return capital to shareholders I'm.
I'm happy to take the newsroom question Roland I'll say as we've said for a long time and we continue to invest thoughtfully into the newsroom. We believe our moat is having a product that is differentially valuable first of news, but across the breadth of human experience and then of course.
<unk> now are growing bundle of products and I think we've been very conscientious.
About those investments, particularly in the current macroeconomic environment, but the number is growing modestly.
Hartland and I always forget what we disclose here, but I think it's around <unk>.
Around 1700, and and growing a little bit beyond that this year.
Maybe hundreds now yeah okay.
Okay cool thank you.
This concludes our question and answer session I would like to turn the conference back over to Harlan <unk> for any closing remarks.
Thank you for joining us. This morning, we look forward to talking to you again next quarter.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.
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