NEW YORK, May 10, 2023 – The New York Times Company (NYSE: NYT) announced today first-quarter 2023 diluted earnings per share of $.13 compared with $.03 in the same period of 2022. Adjusted diluted earnings per share (defined below) was $.19 in the first quarter of 2023 compared with $.21 in the first quarter of 2022.

Operating profit increased to $27.9 million in the first quarter of 2023 from $6.3 million in the same period of 2022 as the impact of acquisition-related charges taken in the prior year and higher digital subscription and other revenues were partially offset by higher operating costs and lower advertising revenues. Adjusted operating profit (defined below) decreased to $54.0 million from $60.9 million in the prior year as higher digital subscription and other revenues were more than offset by higher adjusted operating costs and lower advertising revenues. Adjusted operating profit at The New York Times Group segment (“NYTG”) decreased to $61.8 million from $67.7 million primarily as a result of higher adjusted operating costs and lower advertising revenues partially offset by higher digital subscription and other revenues. Adjusted operating losses at The Athletic segment (“The Athletic”) increased to $7.8 million from $6.8 million primarily as a result of the additional month of results in 2023. See “Key Highlights” on the following page for additional metrics.

Meredith Kopit Levien, president and chief executive officer, The New York Times Company, said, “In the first quarter, we made steady progress on our essential subscription strategy, with clear signs of substantial runway ahead. We crossed 3 million bundle and multi-product subscribers in the quarter and hit a number of new records for bundle uptake; drove continued, sequential ARPU expansion as we fully applied our value-based pricing strategy; enjoyed the strongest enterprise-wide subscriber engagement we’ve seen in more than a year; and slowed cost growth for the third consecutive quarter through disciplined cost management.

“We added 190,000 net new digital subscribers, bringing our total to more than 9.7 million. While advertising continues to experience near-term, cyclical challenges, our bundle strategy is gaining momentum, engagement metrics are strong, pricing initiatives are taking hold and we are slowing cost growth.

“Our strategy was purpose-built to give us multiple growth levers, and we are confident that we are on the path to becoming a larger and more profitable company.”

(In millions, except percentages, subscriber metrics (in thousands), Average revenue per user (“ARPU”) and per share data)

Unless otherwise noted, all comparisons are for the first quarter of 2023 to the first quarter of 2022.

First quarter 2022 includes an additional day compared with first quarter 2023 as a result of the recent change in the Company’s fiscal year to the calendar year.

This release refers to certain non-GAAP financial measures, including operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items (or adjusted operating profit, and as expressed as a percentage of revenues, adjusted operating profit margin); operating costs before depreciation, amortization, severance and multiemployer pension plan withdrawal costs (or adjusted operating costs); diluted EPS excluding amortization of acquired intangible assets, severance, non-operating retirement costs and special items (or adjusted diluted EPS); and net cash provided by operating activities less capital expenditures (or free cash flow). Refer to “Reconciliation of Non-GAAP Information”

in the exhibits for a discussion of management’s reasons for the presentation of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures. Certain guidance is provided on a non-GAAP basis and not reconciled to the most directly comparable GAAP measure because we are unable to provide, without unreasonable effort, a calculation or estimation of amounts necessary for such reconciliation due to the inherent difficulty of forecasting such amounts.

There were no special items in the first quarter of 2023.

First quarter 2022 results included the following special item:

•$34.7 million of pre-tax costs ($25.4 million or $0.15 per share after tax) related to the acquisition of The Athletic.

Total revenues for the first quarter of 2023 increased 4.3 percent to $560.7 million from $537.4 million in the first quarter of 2022. Subscription revenues increased 6.9 percent to $397.5 million, advertising revenues decreased 8.6 percent to $106.2 million and other revenues increased 15.8 percent to $57.0 million.

Subscription revenues in the first quarter of 2023 rose primarily due to growth in the number of subscribers to the Company’s digital-only products, the large number of subscribers whose introductory promotional subscriptions have graduated to higher prices, subscribers who have upgraded to our digital subscription bundle package and higher revenues from The Athletic stand-alone subscriptions due to the impact from the additional month of The Athletic in 2023. Subscription revenues from digital-only products increased 14.1 percent, to $258.8 million. Print subscription revenues decreased 4.4 percent to $138.8 million, largely due to lower domestic home delivery revenues, which declined 4.2 percent, partially offset by an increase in domestic home delivery prices in the first quarter.

The Company ended the first quarter of 2023 with approximately 9.73 million paid subscribers across its print and digital products. Of the 9.73 million subscribers, approximately 9.02 million were paid digital-only subscribers.

Compared with the end of the fourth quarter of 2022, there was a net increase of 190,000 digital-only subscribers. Compared with the end of the first quarter of 2022, there was a net increase of 790,000 digital-only subscribers.

First-quarter 2023 digital advertising revenue decreased 8.6 percent and print advertising revenue decreased 8.7 percent. Digital advertising revenue was $61.3 million, or 57.7 percent of total Company advertising revenues, compared with $67.0 million, or 57.6 percent, in the first quarter of 2022. Digital advertising revenues decreased primarily as a result of lower revenues from our podcasts and creative services, partially offset by the addition of digital advertising revenues from The Athletic. Print advertising revenues decreased primarily in the media, advocacy, finance and technology categories and was partially offset by growth in the luxury category. We believe the macroeconomic environment adversely impacted digital and print advertising spend.

Other revenues increased 15.8 percent in the first quarter of 2023, primarily as a result of higher revenues from television and film, licensing, and commercial printing.

Total operating costs increased 7.3 percent in the first quarter of 2023 to $532.8 million compared with $496.4 million in the first quarter of 2022, while adjusted operating costs increased 6.3 percent to $506.8 million from $476.5 million in the first quarter of 2022. Operating costs that we refer to as “technology costs,” consisting of product development costs as well as components of costs of revenues and general and administrative costs as described below, increased 19.7 percent to $105.2 million compared with $87.9 million in the first quarter of 2022.

Cost of revenue increased 9.1 percent to $306.9 million compared with $281.4 million in the first quarter of 2022, largely due to growth in the number of employees who work in the newsroom, the impact from the additional month of The Athletic costs in 2023, and higher digital content delivery costs. Technology costs in cost of revenue, which consist primarily of costs related to content delivery and subscriber technology, increased 18.6 percent to $29.0 million compared with $24.5 million in the first quarter of 2022.

Sales and marketing costs decreased 13.6 percent to $67.0 million compared with $77.6 million in the first quarter of 2022 due to lower media expenses at NYTG, partially offset by the impact of the additional month of The Athletic costs in 2023 and higher sales and marketing costs at The Athletic. Media expenses, a component of sales and marketing costs that represents the cost to promote our subscription business, decreased 31.4 percent to $31.8 million in the first quarter of 2023 from $46.3 million in 2022.

Product development costs increased 20.3 percent to $57.1 million compared with $47.4 million in the first quarter of 2022, largely due to growth in the number of digital product development employees in connection with digital subscription strategic initiatives and the impact from the additional month of The Athletic costs in 2023. All product development costs are technology costs.

General and administrative costs increased 13.6 percent to $81.1 million compared with $71.4 million in the first quarter of 2022, largely due to growth in the number of general and administrative employees as well as severance expense. Technology costs in general and administrative, which consist primarily of costs related to enterprise technology and information security, increased 19.5 percent to $19.1 million compared with $16.0 million in the first quarter of 2022.

We have two reportable segments: NYTG and The Athletic. Management uses adjusted operating profit (loss) by segment in assessing performance and allocating resources. The Company includes in its presentation revenues and adjusted operating costs to arrive at adjusted operating profit (loss) by segment. Adjusted operating costs are defined as operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs. Adjusted operating profit is defined as operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Refer to Segment Information in the exhibits for more information on these segment measures.

NYTG revenues grew 1.3 percent in the first quarter of 2023 to $532.1 million from $525.3 million in the first quarter of 2022. Subscription revenues increased 3.3 percent to $373.5 million from $361.6 million in the first quarter of 2022, primarily due to growth in subscription revenues from digital-only products partially offset by decreases in print subscription revenues. Advertising revenues decreased 10.8 percent to $102.1 million from $114.5 million in the first quarter of 2022, due to lower digital and print advertising revenues. We believe the macroeconomic environment adversely impacted digital and print advertising spend.

NYTG adjusted operating costs increased 2.8 percent in the first quarter of 2023 to $470.3 million from $457.5 million in the first quarter of 2022, due to growth in the numbers of employees who work in the newsroom as well as higher product development and general and administrative costs partially offset by lower sales and marketing costs.

NYTG adjusted operating profit decreased 8.8 percent to $61.8 million from $67.7 million in the first quarter of 2022 primarily as a result of higher adjusted operating costs and lower advertising revenues partially offset by higher digital subscription and other revenues.

The Athletic revenues grew $16.5 million in the first quarter of 2023 to $28.6 million from $12.2 million in the first quarter of 2022 (on a two month comparative basis the increase in revenues was $7.0 million). Subscription revenues increased to $24.1 million from $10.4 million in the first quarter of 2022, primarily due to growth in digital-only subscribers with The Athletic and the impact from the additional month of revenues in 2023. Advertising revenues increased to $4.2 million from $1.8 million in the first quarter of 2022, primarily due to the launch of display advertising in the third quarter of 2022.

The Athletic adjusted operating costs increased $17.4 million in the first quarter of 2023 to $36.4 million from $19.0 million in the first quarter of 2022 (on a two month comparative basis the increase in expense was $5.7 million). The increase was mainly due to the impact from the additional month of costs in 2023 and higher cost of revenue, which is primarily due to higher journalism costs related to growth in the number of employees who work in the newsroom.

The Athletic adjusted operating loss increased $1.0 million to $7.8 million from $6.8 million in the first quarter of 2022 (on a two month comparative basis the operating loss decreased $1.3 million). The increase in operating loss was primarily a result of the additional month of results in 2023.

Interest income and other, net in the first quarter of 2023 was $3.2 million compared with $1.1 million in the first quarter of 2022. The increase is primarily a result of higher interest rates on cash and marketable securities.

The Company had income tax expense of $9.4 million in the first quarter of 2023 compared with income tax expense of $1.1 million in the first quarter of 2022. The effective income tax rate was 29.7 percent in the first quarter of 2023 and 19.1 percent in the first quarter of 2022. The increase in income tax expense was primarily due to higher income in the first quarter of 2023. The increase in the effective income tax rate was primarily due to the effect of a decline in the stock price on stock-based awards that settled in the first quarter of 2023.

Diluted EPS in the first quarter of 2023 was $.13 compared with $.03 in the same period of 2022. The increase in diluted EPS was primarily driven by the impact from acquisition-related costs in the first quarter of 2022. Adjusted diluted EPS was $.19 in the first quarter of 2023 compared with $.21 in the first quarter of 2022.

As of March 31, 2023, the Company had cash and marketable securities of $474.4 million, a decrease of $11.9 million from $486.3 million as of December 31, 2022.

In February 2022, the Board of Directors approved a $150 million Class A share repurchase program. As of May 5, 2023, we had repurchased 3,937,593 shares for approximately $135.7 million and $14.3 million remained under this authorization. In February 2023, the Board of Directors approved a $250 million Class A share repurchase program in addition to the amount remaining under the 2022 authorization.

The Company has an unsecured revolving line of credit. As of March 31, 2023, there were no outstanding borrowings under the credit facility, and the Company did not have other outstanding debt.

Net Cash provided from/(used in) operating activities in the first quarter of 2023 was $50.7 million compared with $(14.7) million in the same period of 2022. Free cash flow in the first quarter of 2023 was $44.7 million compared with $(23.2) million in the same period of 2022. Free cash flow in the first quarter of 2022 was negatively impacted by a one-time payment related to the acceleration of The Athletic Media Company stock options in connection with the acquisition.

Capital expenditures totaled approximately $6 million in the first quarter of 2023 compared with approximately $10 million in the first quarter of 2022. The decrease in capital expenditures in 2023 was primarily driven by higher expenditures in the prior year related to improvements in our headquarters building.

Below is the Company’s guidance for revenue and operating costs for the second quarter of 2023 compared with the second quarter of 2022.

The Company expects the following on a pre-tax basis in 2023:

•Depreciation and amortization: approximately $90 million, which includes approximately $29 million of acquired intangible assets amortization largely related to the acquisition of The Athletic,

•Interest income and other, net: approximately $12 million to $14 million, and

•Capital expenditures: approximately $50 million.

The Company’s first-quarter 2023 earnings conference call will be held on Wednesday, May 10, at
8:00 a.m. E.T.

A live webcast of the earnings conference call will be available at investors.nytco.com. Participants can pre-register for the telephone conference at https://dpregister.com/sreg/10177106/f8d189f90e, which will generate dial-in instructions allowing participants to bypass an operator at the time of the call. Alternatively, to access the call without pre-registration, dial 844-413-3940 (in the U.S.) or 412-858-5208 (international callers).

An archive of the webcast will be available beginning about two hours after the call at investors.nytco.com. The archive will be available for approximately three months. An audio replay will be available at 877-344-7529 (in the U.S.) and 412-317-0088 (international callers) beginning approximately two hours after the call until 11:59 p.m. E.T. on Wednesday, May 24. The replay access code is 3194525.

The New York Times Company (NYSE: NYT) is a trusted source of quality, independent journalism whose mission is to seek the truth and help people understand the world. With more than 9 million subscribers across a diverse array of print and digital products — from news to cooking to games to sports — The Times Company has evolved from a local and regional news leader into a diversified media company with curious readers, listeners and viewers around the globe. Follow news about the company at NYTCo.com.

Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Terms such as “aim,” “anticipate,”

“believe,” “confidence,” “contemplate,” “continue,” “conviction,” “could,” “drive,” “estimate,” “expect,” “forecast,” “future,” “goal,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “opportunity,” “optimistic,” “outlook,” “plan,” “position,” “potential,” “predict,” “project,” “seek,” “should,” “strategy,” “target,” “will,” “would” or similar statements or variations of such words and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such terms. Forward-looking statements are based upon our current expectations, estimates and assumptions and involve risks and uncertainties that change over time; actual results could differ materially from those predicted by such forward-looking statements. These risks and uncertainties include, but are not limited to: significant competition in all aspects of our business; our ability to grow the size and profitability of our subscriber base; our dependence on user and other metrics that are subject to inherent challenges in measurement; numerous factors that affect our advertising revenues, including market dynamics, evolving digital advertising trends and the evolution of our strategy; economic, market, public health (including Covid-19-related) and geopolitical conditions or other events; damage to our brand or reputation; significant disruptions in our newsprint supply chain or newspaper printing and distribution channels or a significant increase in the costs to print and distribute our newspaper; risks associated with the international scope of our business and foreign operations; risks associated with environmental, social and governance matters and any related reporting obligations; adverse results from litigation or governmental investigations; risks associated with acquisitions (including The Athletic), divestitures, investments and similar transactions; the risks and challenges associated with investments we make in new and existing products and services; risks associated with attracting and maintaining a talented and diverse workforce; the impact of labor negotiations and agreements; potential limits on our operating flexibility due to the nature of significant portions of our expenses; the effects of the size and volatility of our pension plan obligations; liabilities that may result from our participation in multiemployer pension plans; our ability to improve and scale our technical and data infrastructure; security incidents and other network and information systems disruptions; our ability to comply with laws and regulations with respect to privacy, data protection and consumer marketing practices; payment processing risk; defects, delays or interruptions in the cloud-based hosting services we utilize; our ability to protect our intellectual property; claims against us of intellectual property infringement; our ability to meet our publicly announced guidance and/or targets; the effects of restrictions on our operations as a result of the terms of our credit facility; our future access to capital markets and other financing options; and the concentration of control of our company due to our dual-class capital structure.

More information regarding these risks and uncertainties and other important factors that could cause actual results to differ materially from those in the forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022, and subsequent filings. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Exhibits:    Condensed Consolidated Statements of Operations

Footnotes

Segment Information

Reconciliation of Non-GAAP Information

Contacts:

Media:     Danielle Rhoades Ha, 212-556-8719; danielle.rhoades-ha@nytimes.com

Investors: Olivia Bloch, 212-555-1325; investor.relations@nytimes.com We offer a digital subscription package (or “bundle”) that includes access to our digital news product, as well as The Athletic and our Cooking, Games and Wirecutter products.

We also offer standalone digital subscriptions to our digital news product, as well as to The Athletic, and our Cooking, Games, Audm and Wirecutter products. The Company has set out below the number of digital-only, print and total subscribers to the Company’s products as well as certain additional metrics, including average revenue per subscriber. A digital-only subscriber is defined as a subscriber who has subscribed (and provided a valid method of payment) for the right to access one or more of the Company’s digital products.

We believe that the significant growth over the last several years in subscribers to our products demonstrates the success of our “subscription-first” strategy and the willingness of our readers to pay for high-quality journalism. The following charts illustrate the growth in net digital-only subscribers and corresponding subscription revenues as well as the relative stability of our print domestic home delivery subscription products.

(1) Amounts may not add due to rounding.

(2) Includes access to some of our digital products.

(3) Includes Book Review, Mail and Large Type Weekly subscribers. Revenue from these subscribers is primarily included in print domestic home delivery and print other revenues.

(4) Print Other includes single-copy, NYT International and other subscription revenues.

THE NEW YORK TIMES COMPANY
SEGMENT INFORMATION
(Amounts in thousands)
Since the acquisition of The Athletic in the first quarter of 2022, we have had two reportable segments: NYTG and The Athletic. Management uses adjusted operating profit (loss) by segment in assessing performance and allocating resources. The Company includes in its presentation revenues and adjusted operating costs to arrive at adjusted operating profit (loss) by segment. Adjusted operating costs are defined as operating costs before depreciation and amortization, severance and multiemployer pension plan withdrawal costs. Adjusted operating profit is defined as operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted operating profit expressed as a percentage of revenues is referred to as adjusted operating profit margin. Subscription revenue from our digital subscription package (or “bundle”) is allocated to NYTG and The Athletic. We allocate revenue first to our digital news product based on its list price and then the remaining bundle revenue is allocated to the other products in the bundle, including The Athletic, based on their relative list price. The direct variable expenses associated with the bundle, which include credit card fees, third party fees and sales taxes, are allocated to NYTG and The Athletic based on a historical actual percentage of these costs to bundle revenue. The results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1, 2022, the date of the acquisition. As a result first quarter 2022 results include The Athletic for approximately two months while first quarter 2023 results include the Athletic for the full quarter.
						First Quarter
						2023						2022						% Change
Revenues
NYTG						$	532,092					$	525,268					1.3		%
The Athletic						28,647						12,157						*
Total revenues						$	560,739					$	537,425					4.3		%
Adjusted operating costs
NYTG						$	470,337					$	457,543					2.8		%
The Athletic						36,427						18,979						91.9		%
Total adjusted operating costs						$	506,764					$	476,522					6.3		%
Adjusted operating profit (loss)
NYTG						$	61,755					$	67,725					(8.8)		%
The Athletic						(7,780)						(6,822)						14.0		%
Total adjusted operating profit						$	53,975					$	60,903					(11.4)		%
AOP margin % - NYTG						11.6		%				12.9		%				(130) bps
* Represents a change equal to or in excess of 100% or not meaningful.

Revenues detail by segment						First Quarter
						2023						2022						% Change
NYTG
Subscription						$	373,466					$	361,602					3.3		%
Advertising						102,090						114,490						(10.8)		%
Other						56,536						49,176						15.0		%
Total						$	532,092					$	525,268					1.3		%
The Athletic
Subscription						$	24,076					$	10,377					*
Advertising						4,151						1,780						*
Other						420						—						*
Total						$	28,647					$	12,157					*
The New York Times Company
Subscription						$	397,542					$	371,979					6.9		%
Advertising						106,241						116,270						(8.6)		%
Other						56,956						49,176						15.8		%
Total						$	560,739					$	537,425					4.3		%
* Represents a change equal to or in excess of 100% or not meaningful.