Q3 2024 New York Times Co Earnings Call
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Okay.
Speaker Change: Good morning, and welcome to the New York Times Company's third quarter 2024 earnings Conference call.
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Speaker Change: Two.
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Speaker Change: I would now like to turn the conference over to ask.
Speaker Change: B Clemente senior Vice President of Investor Relations. Please go ahead.
A.B. Clemente: Thank you and welcome everyone to the New York Times Company's third quarter 2024 earnings conference call on the call today, we have Meredith Kopit, Levien, President and Chief Executive Officer, and will bargaining executive Vice President and Chief Financial Officer before we begin I would like to remind you that man.
A.B. Clemente: But we will make forward looking statements. During the course of this call. These statements are based on 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 2023 10-K and subsequent SEC filings.
A.B. Clemente: In addition, our presentation will include non-GAAP financial measure measures and we've provided reconciliations to the most comparable GAAP measures in our earnings press release, which is available on our website at investors Dot N Y T C O dot com.
A.B. Clemente: In addition to our earnings press release, we have also posted a slide presentation relating to our results on our website at investors <unk> N Y T C O dot com and finally, please note that a copy of a copy of the prepared remarks from this morning's call will be posted to our investor website. Shortly after we conclude with that.
A.B. Clemente: That I will turn the call over to Meredith.
Speaker Change: Thanks, Anthony and good morning, everyone.
Meredith: The third quarter was another strong one for the time as we make further progress toward becoming the essential subscription for every curious person seeking.
I understand.
A.B. Clemente: All of them.
A.B. Clemente: We passed 1 million total subscribers in the quarter more than 5 million.
A.B. Clemente: Now subscribe to a bundle of multiple products digital subscription revenue growth accelerated to more than 14% year on year and that combined with great potential.
A.B. Clemente: Advertising and other revenue propelled healthy growth in total revenue.
A.B. Clemente: Results reflected our strategy playing out as designed.
A.B. Clemente: Our multi product portfolio continued to attract tens of millions of people each week to read listen watch and learn and play.
A.B. Clemente: They were drawn in by our World Class news coverage of the major stories and politics International Affairs Society Entertainment and beyond as well as our distinctive products and games sports cooking and shopping.
A.B. Clemente: Second these people increasingly sought out the times directly and engaged people.
A.B. Clemente: Subscriber engagement as measured by the share of subscribers visiting the times each week.
A.B. Clemente: Its highest point since 2020, and we once again grew direct relationship even as the market continues to experience significant headwinds driven by shifts in the play.
A.B. Clemente: At four am landscape.
A.B. Clemente: That strong subscriber engagement is a sign of the value, we're delivering and enabled us to keep growing.
A.B. Clemente: In line with our expectation and finally all of this taken together means we can sustainably invest in the areas that we believe give us enduring advantage, our expert journalism and premium digital products.
A.B. Clemente: Products generate more direct relationships and growing revenue across subscription as well as advertising.
A.B. Clemente: Licensee.
A.B. Clemente: With three quarters of the year behind Us, we're well on track for another year of higher Arpus and margin expansion as well as strong free cash flow generation.
A.B. Clemente: I'll turn now to some of the details from the quarter starting with subscribers. We added 260000 net new digital subscribers in the quarter, putting us further along the path for our next milestone of 15 million total subscribers the continuing popularity.
A.B. Clemente: 30 of our all access bundle means bundle and multi product subscribers right on track.
A.B. Clemente: Forever.
A.B. Clemente: Our base by the end of next year that matters, because bundle and multi product subscribers have a higher expected lifetime value.
Scribe work to any individual products.
A.B. Clemente: At the core of our offering is our news report, where our ongoing investments ensure the time and followed the biggest stories the day no matter how difficult or complex.
A.B. Clemente: That commitment is evident in our election coverage, which includes comprehensive coverage of the candidates.
A.B. Clemente: There's issues.
A.B. Clemente: And the state of the race.
A.B. Clemente: You know our strategy is having a diversified portfolio that meet different needs.
A.B. Clemente: As your slides and making them available in a single integrated product experience.
A.B. Clemente: And in September we launched a redesign of the core New York times that should make it easier for people to find and engage with everything we have to offer.
A.B. Clemente: The redesign, but much more of our unmatched news report in front of users with panel dedicated to today's headline important long running storylines like the election Arts and culture coverage and more we've also made our lifestyle products easier to find so users or just.
A.B. Clemente: Our swipe away from the best of games, Yeah, let it cooking wire cutter and audio.
A.B. Clemente: Beyond the redesign we continue to innovate across formats in the quarter, which is part of our strategy to make audio video and other visual format, a bigger part of the times, we make more of our coverage listenable via automated voice expanded the availability of.
A.B. Clemente: Our latest new show the headlines increased production of modern love and launched a weekly podcast from wire.
A.B. Clemente: We also began experimenting to make audio or direct driver of subscriptions with new paid offerings available through Spotify and Apple.
A.B. Clemente: In video, we're experimenting with film diversions of many of our podcast and putting our reporters on camera more often to explain the major stories of the day.
A.B. Clemente: N y T gain beloved by users once again played a big role in getting millions of people to create direct daily relationships with the times. This propels growth in both subscription and advertising were optimistic the game will continue to be a growth engine.
A.B. Clemente: As we keep innovating around new features new game and new ways to bring people to them.
A.B. Clemente: We also made further progress in the quarter on the athletics journey to become a household name amongst sports fans are strong coverage of the Olympics and great momentum at the start of the NFL and English Premier League season.
A.B. Clemente: But it is already an important component of our bundled offering and more deeply engaging subscribers. We began testing it more directly as a driver of bundle subscription starts in Q3, which was enabled by the technical integration with the times web doesn't mean that we completed.
A.B. Clemente: In Q2, and we continue to be pleased with the overall economic performance and direction of the athletic.
A.B. Clemente: Digital advertising revenue was up nearly 9% in the quarter in line with guidance AD growth reflected strong performance across all of our lifestyle products.
A.B. Clemente: We broadened our AD offering and reach a wider set of marketers. This came even as some advertisers continued to avoid certain hard news topics.
A.B. Clemente: Revenue to be honest subscriptions and advertising also met our expectation driven by another good quarter for wire cutter and licensing.
A.B. Clemente: Finally, we continue to be disciplined in how we grow the business prioritizing investments in the areas that differentiate us our world class journalism and premium product experiences.
A.B. Clemente: That discipline combined with strong execution resulted in another quarter of peak growth and healthy free cash flow generation.
A.B. Clemente: I'll wrap by reminding you of what we're working to do every day make journalism and products. So valuable that people will seek them out for them by name and form direct relationships and daily.
A.B. Clemente: That value takes many forms from landmark investigations to unrivaled coverage of important issues like the middle East and the rise of the AI to expert recommendations on what to read or watch. The time is where people go to followed their favorite NBA team played the.
A.B. Clemente: Daily game that their whole family loved get holiday shopping trips are planned Thanksgiving dinner.
A.B. Clemente: All these complementary sources of value address big user needs and in turn power multiple revenue streams, we believe our portfolio and our ability to keep adding value to it over time is what makes the times resilient in a changing media landscape.
And well positioned to become a larger and more profitable company now let me turn it over to will for more detail.
Speaker Change: Thanks, Meredith and good morning, everyone.
Speaker Change: Our Q3 financial results keep us on track to deliver another year of healthy revenue growth a O P growth margin expansion and free cash flow generation.
A.B. Clemente: Q3 also demonstrated how our portfolio of high quality news and lifestyle products is working to drive these economics.
A.B. Clemente: Our growing subscriber base, along with strong subscriber engagement and increasing <unk> led to growth in our digital subscription revenues and.
A.B. Clemente: And with growth across our portfolio, our multiple revenue streams, we've driven operating leverage even as we continue to prioritize strategic investments aimed at further differentiating our high quality journalism and digital products.
A.B. Clemente: We grew overall revenue in the third quarter by approximately 7% as increasing digital subscription digital advertising affiliate and licensing revenue more than offset ongoing declines in print.
A.B. Clemente: <unk> grew by approximately 16% year over year and op margin expanded by approximately 130 basis points to 16, 3%.
A.B. Clemente: We generated approximately $238 million of free cash flow in the first nine months of the year.
A.B. Clemente: Over that same period, we returned approximately $122 million to shareholders consistent with our capital allocation strategy.
A.B. Clemente: This included approximately $60 million in share repurchases and approximately $62 million in dividends.
A.B. Clemente: Now I will discuss the third quarter's key results followed by our financial outlook for the fourth quarter of 2024.
A.B. Clemente: Note that all comparisons are to the prior year period, unless otherwise specified.
A.B. Clemente: I'll start with the discussion discussion of our subscription business.
A.B. Clemente: We added approximately 260000 net new digital subscribers in the quarter, bringing our total number of subscribers to over $11 million.
A.B. Clemente: With growth coming from multiple products across our portfolio.
A.B. Clemente: Bundled multi product subscribers now make up approximately 46% of our total base well along the path to exceeding 50% by the end of next year.
A.B. Clemente: Total digital only ARPA grew one 8% to $9 45, as we continue to step up subscribers from promotional to higher prices and raised prices on tenured non bundled subscribers.
A.B. Clemente: The value we've added to our products combined with the encouraging results were seeing at pricing step up points gives us confidence that modest year over year ARPA expansion will continue for the remainder of the year.
A.B. Clemente: As a result of both higher digital subscribers and digital only ARPA in the third quarter digital only subscription revenues grew approximately 14% to $322 million and total subscription revenue grew approximately 8% to $453 million.
A.B. Clemente: Both were in line with the guidance, we provided last quarter.
A.B. Clemente: Now turning to advertising.
A.B. Clemente: Total advertising revenues for the quarter were $118 million, an increase of approximately 1%.
A.B. Clemente: Digital advertising revenues increased approximately 9% to $82 million.
A.B. Clemente: Digital advertising and total advertising revenues were within the guidance ranges, we provided last quarter.
A.B. Clemente: Other revenues were also within our guidance range, increasing approximately 9% to $69 million as wire cutter affiliate revenues and licensing revenues.
A.B. Clemente: <unk> to perform well in Q3.
A.B. Clemente: Adjusted operating costs came in within our guidance range of eight 5% to 6% increase growing by approximately five 4%.
A.B. Clemente: Looking at each of the lines cost of revenue increased approximately 7% sales and marketing costs increased approximately 10%.
A.B. Clemente: Product development costs increased approximately 6% and adjusted G&A costs decreased approximately 4%.
A.B. Clemente: Adjusted diluted EPS in Q3 increased eight tenths to 45 cents, primarily driven by higher operating profit and higher interest income.
Before I turn to our Q4 guidance I'd like to add two notes.
A.B. Clemente: The first note regards our subscriber disclosures.
A.B. Clemente: After the fourth quarter of 2024, we plan to discontinue our supplemental disclosure of subscribers, who have entitlements to be athletic.
Speaker Change: As Meredith noted in her remarks, yeah kinetic is now a part of our bundle offering as well as a contributor to bundle subscription starts.
A.B. Clemente: Balletic subscribers will continue to be included in our total company digital only subscriber disclosures just as we report subscribers of our other products.
A.B. Clemente: The second note regards to work stoppage commenced today by union, representing certain of our technology employees. We've.
A.B. Clemente: We've known this was a possibility and are prepared for a range of scenarios.
While the effects on our operations and results will depend on further developments, our revenue and cost guidance for Q4 incorporates our current best estimates.
We have a track record of working effectively with unions and continue to aim for a fair contract.
A.B. Clemente: I'll now look ahead to Q4 for the consolidated New York Times Company.
A.B. Clemente: Digital only subscription revenues are expected to increase 14% to 17% compared with the fourth quarter of 2023 and total subscription revenues are expected to increase seven 9%.
A.B. Clemente: Digital advertising revenues are expected to increase high single digits to low double digits and total advertising revenues are expected to increase low single digits.
A.B. Clemente: Other revenues are expected to increase 11% to 13% as we expect wire cutter affiliate revenues to continue to be a strong driver of growth and also expect some benefit from the timing of revenue recognition related to licensing revenue in Q4.
A.B. Clemente: Adjusted operating costs are expected to increase 5% to 6%.
A.B. Clemente: As we are continuing to effectively manage costs, while strategically investing in the areas that best position us for sustainable growth, including our World Class news journalism and lifestyle products.
A.B. Clemente: In summary, our results demonstrate our central subscription strategy is working as designed and keeps us on track to achieve our previously stated mid term targets for subscribers a O P growth and capital returns.
A.B. Clemente: With that we're happy to take your questions.
Speaker Change: Thank you we will now begin the question and answer session.
To ask a question you May Press Star then one on your Touchtone phone.
Speaker Change: If you're using a speaker phone we ask you. Please pickup your handset before pressing the keys.
A.B. Clemente: To withdraw your question. Please press Star then two.
A.B. Clemente: At this time, we will pause momentarily to assemble our roster.
Today's first question comes from Benjamin <unk> with Deutsche Bank. Please go ahead.
Hey, good morning, everyone. Thanks for taking the question I first wanted to ask about the strength in digital advertising. It sounds like some of that growth came from bringing on new supply. So I was wondering can you talk about where that new supply is showing up in your portfolio and how it's performing relative to your base.
And then maybe as part of that can you talk about where we are with the rollout on the games that with advertising.
I'm happy to take that one good morning.
Speaker Change: So I would say broadly that the digital advertising number came from two places one I think as we as we put more AD products into our lifestyle products were just more valuable and more marketers that we have more and more demand that we can tap into.
Two as you suggest we are sort of steadily rolling out supply in each of those products and actually it's the case that we have used supply that's come online at one point or another this year in all four of our lifestyle products games, specifically you saw the rollout of more ads.
A.B. Clemente: And indie games, App, which is.
A.B. Clemente: It's early but we're excited about it and I would say you know more to come there and also more to come on the athletic which continues to them to grow audience continues to grow at opportunities, but I you know games in the athletic or certainly the biggest witnessed lifestyle portfolio in terms of.
Where we should go from here it gets in terms of the opportunity, but all four products really have opportunity.
Speaker Change: Andrew you all Saturday of a follow up.
Andrew: Oh, one more if you have time.
Andrew: You saw a pretty nice step up in bundle or two both on a sequential basis and then the year over year decline moderated can you talk about what youre seeing with promo step ups and how you see the path to getting back to a bundle ARPA growth on a year over year basis. Thanks.
Speaker Change: Sure I can take that I mean, I think the most important thing to say anytime we're talking about <unk> is.
Speaker Change: He is making sure we kind of reiterate the overall focus is on our long term revenue growth not not ARPA per se.
And specifically, what we really focused on ourselves and what you're focused on it is that total digital only argue line and our target of driving year over year modest increases in that we have a lot of levers to do that.
Closure allows you to sort of see that strategy playing out.
Speaker Change: To your question on sort of what we're seeing.
As we've been sort of same throughout the year and <unk>.
Looking towards the rest of the year certainly there are multiple factors that are giving us real confidence in our ARPA trajectory. The first is the bundle and the encouraging results. We continue to see us bundle subscribers are transitioning to those higher prices. So.
I'm still feeling really good about what we're seeing there and then the second are our single product subscription price increases or for tenured certain groups of tenured subscribers. There as we just keep adding value into the products, where you know we're confident in our ability to use the lever of us continually raising prices.
A.B. Clemente: When you add all that up we feel really good about the ARPA trajectory over time.
Great. Thanks, Ben Operator, we'll take our next question.
Absolutely. Our next question comes from Thomas <unk> with Morgan Stanley. Please go ahead.
Thanks, so much.
Thomas: I wanted to ask about the net adds with news entitlement I think it's been seeing a smoother cadence in recent quarters and years relative to historical volatility quarterly just given some of the new cycle that kind of comes up and down can you talk about just how much a heavy new cycles still plays a role in quarterly volatility or.
The opportunity that you see in pulling in paid subscriptions onto his moments relative to maybe just a broadening effect that youre seeing just given more of a holistic bundle offering that you're providing these because consumers. These days.
So I'm happy to start well you should feel free to add anything I would say at the highest level of the model is designed to harness demand wherever that demand comes from them and I think we're just getting better and better doing that and I would say because we have this very kind of broad and deep.
Thomas: And innovative news product that is always the case with our news and in different environments different quarters different products or you know because of the time of year. The news cycle, whatever will present differently in the quarter, but that is all the model working and as its intended to and I would say.
Thomas: Asking about news and news specifically you know we have invested in such a way that we are prepared to cover the story wherever it goes and to do that in an increasing array of formats over the last year I think we've been particularly good.
Good at for a minute innovation in video and visual formats, you've got more on camera and sort of reporters talking about their stories them, which is great for engagement and you've got more visual formats on the election coverage, you've got more sophisticated pulling operation that we had.
It had previously and more more audio more shows and more ways for people to listen to all that we have to offer at the times and if you take that and apply that kind of wherever the story goes I think we're just getting better and better at engagement and the last thing I'll say is we keep pointing to.
Thomas: Strong enterprise subscribers engagement, because that really matters, that's like the high octane gas in the whole model and as I said in my prepared remarks.
Thomas: We've gotten to a point in this last quarter, where.
It was the strongest it's been since 2020.
Speaker Change: That's helpful.
Speaker Change: If I drill down a bit just to the acceleration in digital subscription revenue growth reflected in your four acute guidance how much of that is maybe a function of that.
Just the continued buildup of cohorts coming up for pricing step ups or are you embedding some expectation for net adds to it to accelerate and benefit from you know typically I think an inflection here gives you a little bit more juice in terms of the ability to bring in more subscribers.
John I'm, sorry, I'll take that as you know we don't guide on that out specifically I think when when you're highlighting that 14% to 17% digital subscription revenue growth guide I mean, the explanation is pretty straightforward.
Speaker Change: You know the strategy playing out as designed for both volume and rate.
Oh, Yeah, we've been talking about through the year. We are pleased with the subscriber growth. We're seeing the engagement you know passing 11 million total subscribers in the quarter as well as our approach to monetize them, which I already talked about in the previous question are continuing to be pleased with the performance at bundled promotional step up moments as well.
When we're asking people on standalone products to pay higher prices. So.
When you're adding all that up.
It's it's the model working as designed to underpin that revenue growth.
Speaker Change: We're guiding to in Q4.
A.B. Clemente: Great.
A.B. Clemente: Thanks, a lot Thomas operator next question.
Absolutely. Our next question comes from David Karnofsky JP Morgan. Please go ahead.
David Karnofsky: Thank you Meredith you've commented on these calls including today, you know a lot about how prior changes or social media or search impacted not only the times, but the whole news complex in terms of web.
Website traffic I'm interested where a couple of quarters and now in search results that include a healthy amount of content.
A.B. Clemente: Are you seeing any impact to traffic as a result, not just on news for other verticals like athletic or wire cutter and then one for will you mentioned the strike I know, there's just like literally started within the past hour or so but can you just clarify what you built in for your Q4 cost forecast in terms of cost or.
A.B. Clemente: Any disruptions, which could impact the top line.
Thanks, David I'll go first.
Speaker Change: On your question about AI and I'll, just say sort of stepping back we've been talking for I think close to two years now about audience headwinds I'm generally, including the fact that platforms are sending less and less traffic to publishers. You know this is not new and it certainly makes aspects of it.
A.B. Clemente: Business harder I'll tell you, we do believe that products like chat G. P T and AI overviews are playing a role in those headwinds, but having said that our whole strategy is intended to build resilience to those dynamics by making products that are so good that people seek them out and.
A.B. Clemente: You know apps for them by name and they'll direct relationships and daily habits with them.
A.B. Clemente: And I'm happy to take the follow up on on the strike.
You know I don't think I really have anything to add here beyond my prepared remarks.
A.B. Clemente: Well it was just announced today, we're definitely not surprised we've and we've known about this as a possibility we're prepared for a range of scenarios and I think in terms of you know.
A.B. Clemente: The guide.
A.B. Clemente: We are it represents our best estimate of what we think Q4, how it will play out of course the effects on the operations the results well will depend a bit on further developments, but the.
A.B. Clemente: The guide is contemplating what we see today.
Speaker Change: Great. Thanks, so much David Operator next question. Please.
Thank you and our next question today comes from Canola Crush War with Barclays. Please go ahead.
Speaker Change: Thank you.
A.B. Clemente:
Speaker Change: Maybe one on subscriber trends I mean, typically you do tend to see some deal with it.
We were supposed to do.
Speaker Change: And of course this is also an electric quarter.
Speaker Change: But it looks like it slowed a little bit so could you just provide some context on the sequential trends and hum.
Speaker Change: It's slowed down a little bit.
Speaker Change: And then also the same thing for Q4, a good I mean, we'll implicit in the guidance is obviously an acceleration in Q4 would you typically see in Q4, but when I look at the Delta in terms of the degree of that leasing a nominee.
Little bit lower than usual and I'm, just wondering if price increases in.
Speaker Change: Some degree of churn is embedded in.
That's great. Thanks.
Speaker Change: Why don't why don't I start come on in and well you can add anything that you feel it would be useful and let me. Let me just start by saying, we feel really good about but the headline number of 260000 net adds in the quarter and also to your point the value that the subscribers are bringing to the portfolio.
Speaker Change: And I think in general our results in the quarter and all year show that we're kind of firing on all cylinders across the portfolio. We've been very very focused on two things I would say boats are going well, one is getting or our news product and the rest of the portfolio.
Speaker Change: To drive very strong enterprise subscriber engagement that is such an important part of the model and that's really working and then secondly, and this is kind of a newer focus this year, we have been intently.
Speaker Change: Intently focused on getting the lifestyle products.
Speaker Change: Should begin to be more powerful funnels for the bundle and you know we have a lot of confidence and optimism. There. So I'm I would just say we feel very good about where we are on bad sort of volume and revenue well do you want to add anything.
Speaker Change: No I think.
Speaker Change: And I don't know what to much else to Adam and I think just translating that into the Q4 guide as Meredith said, we're really pleased with with that guide and it's fundamentally built on adding a lot of value into the product.
That we continue to see high levels of engagement and.
Speaker Change: Or whether it's single product subs or the bundle step ups throughout this year every time, we've been asking people to pay more we've been really pleased with what we see and that's continuing to underpin what we see as attractive digital subscription revenue growth rates.
A.B. Clemente: Great.
Speaker Change: Next question please.
Thank you and our next question today comes from facility Carousel, where Tenable research. Please go ahead.
Thank you good morning, Meredith I wanted to follow up and ask you to elaborate on something you said in your prepared remarks, and I might misquote you have.
But you said something about audience headwinds.
Speaker Change: The platforms.
A.B. Clemente: Impacting your audience growth. So could you please tell us what what exactly you meant that.
A.B. Clemente: Yeah.
Did you feel that you need to bring this up is that trend getting get.
A.B. Clemente: And worse for you and how are you planning on dealing with that thank you very much.
Speaker Change: Thanks for the question I'll, just say you know.
Speaker Change: It's more of a step back point, Jim I think we've been making it consistently for two years or close to two years that you know the platforms are spending less and less traffic to publishers.
Speaker Change: And I think I already answered to a prior question about how AI plays a role not I think the important takeaway is that our model is designed to build resilience to that and we feel really really good about how we're doing that but in terms of driving.
A.B. Clemente: Engagement from the subscribers, we already have and the ability of this you know.
A.B. Clemente: Multi product portfolio to bring us new direct relationships and reasons to call to action. The direct relationships. We already have them you can regard us as keenly understanding the direction of travel from the platforms and also building our own ways to get people to come to us.
A.B. Clemente: And I think that's really working and I'll just finish by saying you know we didn't mean to intend to anything further than what we've been saying for probably seven quarters now E V. Eight I'll leave it there.
Speaker Change: Great. Thanks facility operator, we have time for one last question. Thanks.
Absolutely and our last question comes from Doug Arthur with Huber Research Partners. Please go ahead.
Doug Arthur: Yeah. Good morning, actually I got two questions. One the first question, there's been a fair amount of chaos and churn at the Washington Post and the lead times are you seeing any benefit from that.
Speaker Change: And I'm happy to take that one Doug I I wanted to say.
Speaker Change: First and most importantly, we take no joy and watching any other quality independent journalism Institute shouldn't go through anything difficult. As you know we are laser focused on our strategy and our own growth trajectory and you know we.
Speaker Change: I expect we'll continue to attract subscribers from all sorts of places for all sorts of reasons at all.
Speaker Change: Keep it there.
Oh got it okay, and well just on the cost breakdown, if you take the athletic out.
Speaker Change: And just look at the movement and you know cause expenses.
Speaker Change: Sales and marketing product development and G&A. There was there was a lot of.
Speaker Change: You know unusual movement this quarter.
Speaker Change: Sales and marketing was up 42% at the times it was down a year ago is there.
Speaker Change: Anything driving these categories unusually in the quarter.
I think the way to think about our cost as we've always said in any given quarter you.
Speaker Change: You know things can move around a bit I think.
Speaker Change: The most important thing is just stepping back to say, we're really focused over the long term on sustaining.
Healthy revenue growth a O P growth and margin expansion kind of in simple terms revenues growing faster than costs and.
Speaker Change: We're doing that for a long term investment approach that both closely managing costs in places like G&A, while strategically investing in the areas will best position us for sustainable growth.
Speaker Change: Identified repeatedly that world class news journalists journalism and lifestyle products.
Speaker Change: That disciplined approach we have been.
Speaker Change: Executing we intend to continue and that should enable us to continue to target year over year, a O P growth and margin expansion going forward.
Speaker Change: Thank you and this concludes our question and answer session I'd like to turn the conference back over to Anthony Diclemente for any closing remarks.
A.B. Clemente: Yeah.
Speaker Change: Great. That's it. Thank you all for joining US this morning, and we'll see you next quarter.
Speaker Change: Thank you. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
A.B. Clemente: [music].