Financial Performance - Total revenues for Q1 2025 were $571.6 million, a decrease of 10.1% compared to $635.8 million in Q1 2024[13] - Operating income for Q1 2025 was $9.8 million, a significant improvement from an operating loss of $49.9 million in Q1 2024[13] - Net loss attributable to Gannett was $7.3 million, compared to a net loss of $84.8 million in the prior year, reflecting a 91.4% reduction in losses[13] - Adjusted EBITDA for the three months ended March 31, 2025, was $50.509 million, down from $57.589 million in the same period of 2024, representing a decline of 12.1%[103][104] - The company recognized a pre-tax gain of approximately $20.8 million from the sale of the Statesman to Hearst Corporation on February 28, 2025[105] Revenue Breakdown - Digital revenues decreased to $250.4 million, down 6.4% from $267.5 million in the same period last year[13] - Print and commercial revenues fell by 12.8% to $321.2 million from $368.3 million year-over-year[13] - Digital revenues accounted for $250.394 million, which is 43.8% of total revenues for Q1 2025, compared to $267.499 million or 42.0% in Q1 2024[28][29] - Revenues generated from international operations comprised 11.5% of total revenues for Q1 2025, compared to 11.0% in Q1 2024[28][31] - Digital marketing solutions brand, LocaliQ, contributed $108.709 million in revenue for Q1 2025, down from $117.045 million in Q1 2024[28][29] Cash Flow and Assets - Cash provided by operating activities was $23.3 million, slightly up from $22.5 million in Q1 2024[14] - The company reported a decrease in cash and cash equivalents to $85.9 million from $106.3 million at the end of 2024[11] - Total assets decreased to $1.95 billion as of March 31, 2025, down from $2.04 billion at the end of 2024[11] - Total liabilities decreased to $1.80 billion, down from $1.89 billion at the end of 2024[11] - The company’s total equity decreased to $149.6 million as of March 31, 2025, down from $152.6 million at the end of 2024[11] Debt and Interest - Total debt as of March 31, 2025, was $1.008 billion, down from $1.080 billion at the end of 2024, representing a decrease of 6.7%[41] - Interest expense for the three months ended March 31, 2025, was $20.1 million, significantly higher than $9.3 million in the prior year, marking a 116.2% increase[47] - The effective interest rate for the 2029 Term Loan Facility was 10.1% as of March 31, 2025[48] - The Company recognized a loss of $1.3 million on early extinguishment of debt due to prepayments on the 2029 Term Loan Facility[47] Operational Costs - Integration and reorganization costs for the three months ended March 31, 2025, amounted to $9.498 million, compared to $17.881 million in the same period of 2024[103][104] - The company recorded an impairment charge of approximately $1.9 million for the three months ended March 31, 2025, compared to $46.0 million in the prior year[118][119] - Corporate and other operating expenses decreased by 62% to $26.5 million for the three months ended March 31, 2025, compared to $70.0 million in the same period of 2024[191] Shareholder Information - The company did not repurchase any shares of Common Stock under the Stock Repurchase Program during the three months ended March 31, 2025, leaving approximately $96.9 million remaining authorized for repurchase[89] - The company does not currently pay a quarterly dividend and has restrictions on dividend payments due to the terms of its indebtedness[207] Taxation - The effective tax rate for the three months ended March 31, 2025, was 48.2%, compared to an effective tax rate of -13.5% for the same period in 2024[76] - The total amount of unrecognized tax benefits as of March 31, 2025, was approximately $43.6 million, an increase from $41.7 million as of December 31, 2024[79] Legal Proceedings - The company is involved in ongoing legal proceedings, including a civil action against Google for anticompetitive practices, but does not expect these to materially affect its financial position[95][96] Digital Strategy - The company is focused on a digital-first strategy to drive audience growth and engagement while diversifying revenue streams through its digital marketing solutions brand, LocaliQ[113]

Gannett (GCI) Q1 2025 Earnings Call May 01, 2025 08:30 AM ET Company Participants Matt Esposito - Head - IRMike Reed - Chairman and CEOKristin Roberts - President & Chief Content OfficerTrisha Gosser - CFOGiuliano Bologna - Managing DirectorMatthew Condon - Director Equity Research - Internet & Digital Media Operator note this conference is being recorded. I will now turn the conference over to your host, Matt Esposito, Head of Investor Relations. You may begin. Matt Esposito Thank you. Good morning, everyo ...

Financial Data and Key Metrics Changes - Total operating revenues for Q1 were $571.6 million, a decrease of 10.1% year-over-year, or 7.7% on a same-store basis [30] - Adjusted EBITDA totaled $50.5 million, representing a margin of 8.8%, with a year-over-year decline in line with expectations [31] - The company reported a net loss of $7 million in Q1, an improvement of approximately $77 million compared to the previous year [33] - Free cash flow in Q1 totaled $10.2 million, growing 7.6%, with expectations for similar performance in Q2 [38] Business Line Data and Key Metrics Changes - Total digital revenues in Q1 were $250.4 million, down 6.4% year-over-year, representing approximately 44% of total revenues [34] - Digital-only subscription revenues exceeded $43 million, reflecting minor same-store growth, impacted by elevated customer churn [34] - Adjusted EBITDA for the Digital Marketing Solutions (DMS) segment totaled $8.5 million, with core platform revenue at $108.2 million [37] Market Data and Key Metrics Changes - The company had 195 million average monthly unique visitors, growing over 4% compared to the prior year [14] - The UK market experienced a slowdown in digital advertising trends, reflective of the local economy [36] Company Strategy and Development Direction - The company aims to leverage its industry-leading scale and diverse digital businesses to drive long-term growth [11] - A key focus is on enhancing monetization opportunities through investments in digital initiatives and expanding first-party data [13] - The recent DOJ ruling against Google is seen as a potential catalyst for a more equitable digital advertising marketplace, benefiting the company [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 business outlook despite a challenging first quarter [7] - The company anticipates a marked improvement in top-line trends, particularly in digital revenue, as it moves past unique first-quarter challenges [6] - Management noted that the fundamentals of the business are improving, with stronger retention and a more diversified revenue base [56] Other Important Information - The company reduced its debt by approximately $75 million in Q1, strengthening its capital structure [8] - A leadership transition occurred with the appointment of Tricia Gosser as Chief Financial Officer [9] Q&A Session Summary Question: Impact of DOJ case against Google - Management believes the DOJ's win sets the stage for a more favorable ad marketplace, leading to greater transparency and higher revenue shares for publishers [44] Question: Adjustments to affiliate revenue business - The company is working with affiliate partners to navigate changes and reenergize revenue growth through leveraging existing content [50] Question: Confidence in 2025 guidance - Management remains confident in the guidance, citing improvements in fundamentals and operational efficiencies [56] Question: Digital subscription revenue trends - On a same-store basis, there was some growth in digital subscriptions, but impacted by higher revenue reversals [73] Question: Tools to aggregate budgets onto the platform - The company is leveraging relationships with advertisers and building out first-party data solutions to drive up CPM [79] Question: Status of non-strategic asset sales - The company has largely worked through its real estate portfolio and does not feel pressured to sell assets that could negatively impact the business [83]

Q1 2025 Earnings May 1, 2025 1 Disclaimer and Notes In General. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." Gannett Co., Inc. is referred to in this Presentation as "Gannett," "we," "us," "our" or the "Company". Cautionary Statement Regarding Forward-Looking Statements. Certain items in this Presentation may constitute forward-looki ...

Financial Performance - Total revenues for Q1 2025 were $571.6 million, a decrease of 10.1% year-over-year, with same store revenues down 7.7%[6] - Total revenues for Q1 2025 were $571.573 million, a decrease of 10.1% from $635.761 million in Q1 2024[16] - For the three months ended March 31, 2025, Gannett reported a consolidated total revenue of $571.573 million, a decrease of 10.1% compared to $635.761 million in the same period of 2024[31] - Digital revenues totaled $250.4 million, with digital advertising revenues at $83.4 million and digital-only subscription revenues at $43.3 million[6] - Digital revenues decreased to $250.394 million, down 6.5% from $267.499 million year-over-year[16] - Digital revenues for Q1 2025 were $250.394 million, down 6.4% from $267.499 million in Q1 2024[31] - Print and commercial revenues fell to $321.179 million, a decline of 12.8% compared to $368.262 million in the same period last year[16] Profitability and Loss - Net loss attributable to Gannett improved by $77.4 million to $7.3 million in Q1 2025[6] - The net loss attributable to Gannett for Q1 2025 was $7.333 million, an improvement from a net loss of $84.768 million in Q1 2024[29] - Operating income for Q1 2025 was $9.778 million, a significant improvement from a loss of $49.886 million in Q1 2024[16] - The company reported a basic loss per share of $0.05 for Q1 2025, improved from a loss of $0.60 per share in Q1 2024[16] Cash Flow and Liquidity - Free cash flow increased by 7.6% to $10.2 million in Q1 2025[6] - Free cash flow for the three months ended March 31, 2025, was $10.168 million, compared to $9.452 million in the same period of 2024[30] - Cash provided by operating activities was $23.308 million, slightly up from $22.451 million in Q1 2024[17] - Cash provided by operating activities is expected to grow in excess of 30% compared to the prior year[10] - Free cash flow is projected to grow in excess of 40% compared to the prior year[10] Debt and Leverage - The company repaid approximately $75 million of debt in Q1 2025, reducing first lien net leverage to 2.6x, a decrease of 4.8% sequentially[10] - Long-term debt was reduced to $689.945 million, a decrease from $755.754 million at the end of 2024[15] Digital Metrics - Average monthly unique visitors reached 195 million, growing by 4.7% year-over-year[6] - Digital-only average revenue per user (ARPU) for Domestic Gannett Media was $7.31 in Q1 2025, slightly up from $7.28 in Q1 2024[35] - The number of digital-only paid subscriptions for Total Gannett decreased by 4% to 1,931 in Q1 2025 from 2,017 in Q1 2024[35] Future Outlook - Full year 2025 digital revenues are expected to grow approximately 7%-10% on a same store basis, making up 50% of total revenues[10] - Gannett's outlook for full year 2025 includes non-GAAP measures such as Same store revenues and Adjusted EBITDA, but does not factor in future acquisitions or dispositions[26] Cost Management - Integration and reorganization costs for Q1 2025 were $9.498 million, compared to $17.881 million in Q1 2024[29] Assets and Liabilities - Total assets decreased to $1.951 billion as of March 31, 2025, down from $2.040 billion at the end of 2024[15] - Total liabilities decreased to $1.802 billion, down from $1.888 billion at the end of 2024[15]

Core Insights - Gannett Fleming TranSystems has rebranded to GFT, integrating multiple businesses into a unified platform for infrastructure consulting services [1] - GFT serves over 5,000 clients across North America, focusing on transportation, water, power, environmental, and federal markets [2] - The company has been recognized by Engineering News-Record, ranking 18 on the Top 500 Design Firms list and achieving high rankings in various sectors [2] Company Overview - GFT employs over 5,000 professionals and operates 130 offices, leveraging a 110-year legacy to provide long-term value [2] - The firm specializes in architecture, engineering, and construction (AEC) within key markets [5] Leadership Changes - Mike Orth has been appointed as the new CEO, bringing 36 years of leadership experience from Black & Veatch [3] - The leadership team emphasizes the importance of building on the company's strong foundation and delivering innovative solutions [4] Strategic Vision - The rebranding is seen as a strategic evolution aimed at enhancing technical excellence and client relationships [4] - The company aims to drive sustainable growth and expand opportunities for employees under the new brand [4][5] Investment Background - OceanSound Partners, a private equity firm, has invested in GFT with the goal of transforming it into a scaled and differentiated business [6]

Financial Data and Key Metrics Changes - Total operating revenues for Q4 were $621.3 million, a decrease of 7.2% year-over-year [49] - Adjusted EBITDA for Q4 totaled $78.2 million, an increase of 5.5% or $4.1 million compared to the prior year [51] - Adjusted net income rose to $38.3 million, reflecting a significant year-over-year improvement of $56.5 million [53] - Free cash flow for the full year was $58.4 million, an increase of 3.5% over the prior year [62] Business Line Data and Key Metrics Changes - Total digital revenues in Q4 reached $280.4 million, up 1.2% or 3.4% on a same-store basis, accounting for 45.1% of total revenues [54] - Digital-only subscription revenue rose 17% in Q4, with digital-only average revenue per user increasing approximately 13% [55] - Adjusted EBITDA for the Domestic Gannett Media segment was $58.7 million, up 4.7% year-over-year [58] - Adjusted EBITDA for the Newsquest segment was $11.2 million, with margins at 19.2% [59] Market Data and Key Metrics Changes - The company has the largest digital audience in the nation, with 200 million average monthly unique visitors, growing 7% year-over-year [18] - Total digital revenues are expected to grow between 7% and 10% on a same-store basis in 2025 [66] Company Strategy and Development Direction - The company aims to reach an inflection point for positive revenue growth in 2025, focusing on digital revenue strategies [15][66] - Plans to enhance engagement through personalized consumer experiences and expanding content offerings, particularly in sports and video [28][32] - The company is strategically moving upstream to target larger businesses in its Digital Marketing Solutions (DMS) segment [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable revenue growth and improving financial metrics in 2025 [47][66] - The company anticipates a year-over-year decline in Q1 adjusted EBITDA, followed by steady improvement in the latter half of the year [67] - Management remains optimistic about the ongoing digital transformation and the potential for significant value creation for shareholders [70] Other Important Information - The company completed a comprehensive debt refinancing in Q4, extending maturities and reducing potential future dilution [63] - The company expects total asset sales in 2025 to be in the range of $60 million to $70 million, supporting continued debt reduction [65] Q&A Session Summary Question: Digital growth outlook for 2025 - Management indicated that the 7% to 10% same-store digital growth outlook for 2025 will be driven by both accelerated digital advertising growth and DMS growth, with the latter expected to enhance results in the latter half of the year [72][74] Question: Asset sales and debt paydown - Management confirmed that proceeds from asset sales will be used to pay down debt, estimating $50 million to $60 million in Q1 and $60 million to $70 million in the first half of the year [76][77] Question: Revenue impact from asset sales - The sale of the Austin American-Statesman reflects a mix of digital and print revenue, and future asset sales will primarily involve nonstrategic real estate [80][81] Question: Capital structure considerations - Management expects significant debt paydown in 2025, aiming for a first lien net leverage closer to 2x, which may allow for refinancing into a lower cost capital structure [85][86] Question: Update on legal cases against Google - Management stated that the timing of the DOJ case does not impact their case against Google, which is proceeding as planned [89][90] Question: Remaining nonstrategic assets for sale - Management indicated that the majority of asset sales in 2025 will relate to the Austin sale and some real estate, with a focus on optimizing the footprint [96][97] Question: Opportunity with Reuters - The opportunity from the bundled content offering with Reuters is characterized as a low to mid-single-digit million opportunity in the near term [99] Question: Key levers for growing digital subscriber growth - Management emphasized the importance of personalizing consumer experiences and focusing on local content to drive digital subscriber growth [102]

Debt and Interest Expenses - As of December 31, 2024, the company had variable-rate debt totaling $850.0 million and fixed-rate debt of $261.8 million[481]. - A hypothetical interest rate increase of 100 basis points would decrease income and cash flows by approximately $8.5 million for the year ended December 31, 2024[481]. - As of December 31, 2024, total debt amounted to $1,111.8 million, a decrease of 1.7% from $1,130.6 million as of December 31, 2023[622]. - The effective interest rate for the 2029 Term Loan Facility was 10.1% as of December 31, 2024[642]. - For the year ended December 31, 2024, the company recognized interest expense of $45.0 million, an increase of 12.5% from $40.0 million in 2023[641]. - The company recognized a loss on early extinguishment of debt of $2.5 million for the year ended December 31, 2024[641]. - The 2026 Senior Notes had an aggregate principal amount of $400 million with a 6.00% interest rate, due November 1, 2026[643]. - The effective interest rate on the debt component of the 2027 Notes was 10.50%, while the 2031 Notes had an effective interest rate of 6.60% as of December 31, 2024[670]. - For the years ended December 31, 2024 and 2023, interest expenses were $13.4 million and $19.5 million, respectively, with cash interest payments of $16.3 million and $20.1 million[651]. Financial Performance - Total revenues for 2024 were $2,509,315, a decrease of 5.8% from $2,663,550 in 2023[517]. - Digital revenue increased to $1,103,651, up 5.1% from $1,050,370 in 2023, while print and commercial revenue decreased to $1,405,664, down 13.0% from $1,613,180 in 2023[517]. - Net loss attributable to Gannett for 2024 was $26,354, compared to a net loss of $27,791 in 2023, indicating a slight improvement[519]. - Operating loss for 2024 was $42,838, a significant decline from an operating income of $86,271 in 2023[517]. - Total assets decreased to $2,040,147 in 2024 from $2,181,247 in 2023, reflecting a reduction of approximately 6.5%[516]. - Total liabilities increased to $1,887,513 in 2024, up from $1,863,934 in 2023, marking a rise of about 1.3%[516]. - The company reported integration and reorganization costs of $66,155 in 2024, compared to $24,468 in 2023, indicating increased restructuring efforts[517]. - The company’s total equity decreased significantly to $152,634 in 2024 from $317,313 in 2023, a decline of approximately 52%[516]. Revenue Streams - Digital revenues are primarily derived from digital advertising offerings, which include search advertising and software-as-a-service solutions[556]. - Digital advertising revenue increased to $346,378 in 2024, up from $333,611 in 2023, representing a growth of 3%[588]. - Digital marketing services revenue remained stable at $476,049 in 2024 compared to $476,958 in 2023, showing a slight decrease of 0.2%[589]. - Print advertising revenue decreased to $525,800 in 2024 from $576,545 in 2023, reflecting a decline of 8.8%[591]. - Revenues from international operations accounted for 11.2% of total revenues in 2024, up from 10.3% in 2023[593]. Internal Controls and Audit - The company's internal control over financial reporting was evaluated as effective as of December 31, 2024, based on the 2013 COSO framework[489]. - The independent auditor expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2024[490]. - There were no critical audit matters identified during the audit of the financial statements[505]. - The consolidated financial statements present fairly the financial position of the company as of December 31, 2024, in conformity with U.S. generally accepted accounting principles[501]. - The company’s management is responsible for maintaining effective internal control over financial reporting[506]. Asset Management - The company conducted goodwill and indefinite-lived intangible asset impairment testing in Q4 2024 and identified no impairments, consistent with 2023 and 2022[549]. - The carrying amount of goodwill as of December 31, 2024, was $530.0 million, reflecting accumulated impairment losses of $340.8 million across various segments[607]. - The Company’s total intangible assets decreased to $430.4 million as of December 31, 2024, down from $524.4 million in 2023[603]. - The estimated future amortization expense for the fiscal year 2025 is projected to be $80.7 million[606]. - The weighted average amortization period for amortizable intangible assets is 10.2 years as of December 31, 2024[603]. Cost Management and Restructuring - The Company reported a total of $51.0 million in other reorganization-related costs for the year ended December 31, 2024, compared to $5.9 million in 2023, primarily due to withdrawal liabilities and other restructuring expenses[617]. - Severance-related expenses totaled $15.1 million for the year ended December 31, 2024, compared to $18.5 million in 2023[616]. - The company plans to focus on digital growth and cost management strategies to improve future performance[517]. Cash Flow and Financing Activities - Cash provided by operating activities for 2024 was $100,310, an increase from $94,574 in 2023[521]. - Total cash used for financing activities was $68,853,000 in 2023, a decrease from $135,511,000 in 2022[534]. - The company issued common stock totaling $100,000 in 2023, compared to $138,000 in 2022[524]. - Cash paid for interest in 2023 was $89,335,000, slightly higher than $86,485,000 in 2022[534]. - The company sold two properties in 2023 for $60.5 million, resulting in a net gain of $39.3 million[598].

Digital Revenue Performance - Total digital revenues exceeded 45% of total revenues in Q4 2024, amounting to over $1.1 billion for the year, with a year-over-year increase of over 5%[3] - Digital-only subscription revenues grew by 17% to $49.0 million in Q4 2024[7] - Digital revenues increased to $280.4 million in Q4 2024, up 1.0% from $277.1 million in Q4 2023[17] - Digital revenues for the year ended December 31, 2024, increased by 5.1% to $1,103,651,000 compared to $1,050,370,000 in 2023[32] - Domestic Gannett Media's digital-only ARPU increased to $8.03 in Q4 2024, up 13.3% from $7.09 in Q4 2023[36] - Total Gannett's digital-only ARPU rose to $7.93 in Q4 2024, reflecting a 12.5% increase from $7.05 in Q4 2023[36] - Digital-only paid subscriptions for Domestic Gannett Media reached 1,953 thousand, a 2.1% increase from 1,912 thousand in 2023[36] - Newsquest's digital-only paid subscriptions surged by 32.5% to 110 thousand in Q4 2024 from 83 thousand in Q4 2023[36] - Total Gannett's digital-only paid subscriptions grew to 2,063 thousand, marking a 3.4% increase from 1,995 thousand in 2023[36] Financial Performance - Adjusted EBITDA for Q4 2024 totaled $78.2 million, reflecting a 5.5% increase, with an adjusted EBITDA margin of 12.6%, up 150 basis points[7] - Total revenues for Q4 2024 were $621.3 million, a decrease of 7.2% due to the sale or shutdown of non-strategic assets[7] - Net income attributable to Gannett for Q4 2024 was $64.3 million, representing a margin of 10.4%[7] - The net income attributable to Gannett for Q4 2024 was $64,319,000, up from a net loss of $22,892,000 in Q4 2023, representing a significant turnaround[28] - For the year ended December 31, 2024, Gannett reported a consolidated total adjusted EBITDA of $273,189,000, with an adjusted EBITDA margin of 10.9%[29] - The net income attributable to Gannett for the year ended December 31, 2024, was $(26,354,000), a decrease from $(27,791,000) in 2023[30] - The company reported a net income margin of 10.4% for Q4 2024, compared to a negative margin of 3.4% for Q4 2023, indicating a strong recovery[28] Cash Flow and Debt - Cash provided by operating activities is projected to grow by over 30% in 2025, while free cash flow is expected to increase by over 40% compared to the prior year[11] - As of December 31, 2024, the company had cash and cash equivalents of $106.3 million and total principal debt outstanding of $1,111.8 million[11] - Cash provided by operating activities for the year ended December 31, 2024, was $100.3 million, compared to $94.6 million in 2023[18] - Free cash flow for the year ended December 31, 2024, was $58,445,000, compared to $56,458,000 in 2023[31] - Gannett's interest expense for the year ended December 31, 2024, was $104,697,000, slightly down from $111,776,000 in 2023[29] Operational Metrics - Average monthly unique visitors reached 200 million in Q4 2024, a 7% increase year-over-year, with approximately 149 million from the U.S. media network[6] - The company expects total digital revenues to grow approximately 7%-10% on a same-store basis in 2025, aiming for digital revenues to constitute 50% of total revenues[11] - The average customer count for the core platform decreased to 13.9 thousand in Q4 2024, down 6.7% from 14.9 thousand in Q4 2023[36] - The core platform average customer count for the year ended December 31, 2024, was 14.3 thousand, a decline of 5.3% from 15.1 thousand in 2023[36] - Overall, Gannett's performance indicates a mixed trend in revenue and user growth, with digital ARPU showing positive growth while customer counts are declining[36] Asset and Liability Overview - Total assets decreased to $2.04 billion as of December 31, 2024, from $2.18 billion at the end of 2023[16] - Total liabilities increased slightly to $1.89 billion in 2024 from $1.86 billion in 2023[16] - Gannett's total equity fell to $152.6 million in 2024 from $317.3 million in 2023[16] - The company entered into an asset purchase agreement to divest the Austin American-Statesman, expected to close in Q1 2025[11] Management and Future Outlook - Management emphasizes the importance of non-GAAP measures in evaluating performance, results of operations, and financial position, despite their limitations[25] - The company expects to provide non-GAAP outlooks for Same store revenues, Adjusted EBITDA, and Free cash flow for the full year 2025, without factoring in future acquisitions or dispositions[27] - Integration and reorganization costs for the year ended December 31, 2024, totaled $66,155,000, compared to $24,468,000 in 2023[30]

Financial Data and Key Metrics Changes - In Q3 2024, adjusted EBITDA totaled approximately $63 million, growing nearly 6% year-over-year [7] - Total operating revenues were $612.4 million, a decrease of 6.2% year-over-year, impacted by strategic decisions to divest non-core businesses [25] - Free cash flow reached approximately $20 million, representing a significant increase of 168% compared to the prior year [7] - Adjusted EBITDA margin improved to 10.3% from 9.1% in the prior year [27] Business Line Data and Key Metrics Changes - Digital revenues surpassed 45% of total revenues, marking an all-time high, with total digital revenues reaching $277.4 million [7][27] - Digital-only subscription revenue reached a new high of $50.1 million, growing 25% year-over-year, with digital-only ARPU climbing above $8 [12][28] - DMS adjusted EBITDA totaled $11.7 million, with core platform ARPU maintaining a record high of approximately $2,800, up 5.3% year-over-year [20][29] Market Data and Key Metrics Changes - The audience surpassed 200 million average monthly unique visitors for the first time, reflecting growth of over 7% year-over-year [8] - Digital advertising revenue increased by 4.9%, driven by growth in page views and programmatic revenue [27] - Newsquest experienced muted top-line growth due to a temporary slowdown in print trends, but adjusted EBITDA reached nearly $14 million, up 3% over the prior year [29] Company Strategy and Development Direction - The company is focused on stabilizing revenue trends, growing adjusted EBITDA, and improving margins, with a strategic emphasis on digital revenue growth [9][10] - A partnership with BetMGM was launched to enhance sports content monetization and audience engagement [22] - The company is leveraging AI to enhance operational efficiency and monetize content, with a partnership with Microsoft for AI summarization [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Q4, expecting improvements in total revenue trends and digital revenue trends [10] - The company anticipates that the recent rate cuts will positively impact the home services vertical, which has been muted due to economic uncertainty [43] - Management reaffirmed confidence in achieving revenue growth in 2025, driven by audience engagement and digital monetization strategies [45][46] Other Important Information - The company completed a comprehensive debt refinancing that extended maturities and reduced potential future share dilution [32] - Cash balance at the end of Q3 stood at $101.8 million, with net debt of $959.6 million [30] Q&A Session Summary Question: Impact of 200 million monthly unique visitors on business - Management highlighted that audience scale drives monetization, but engagement is crucial for enhanced revenue opportunities [37][39] Question: Revenue and EBITDA contribution from sold non-strategic businesses - Management noted that the sold businesses had minimal EBITDA impact and allowed for cash generation to pay down debt [41] Question: Trends in DMS business - Management indicated that the home renovation category was muted due to economic factors but expressed optimism for recovery with recent rate cuts [43][44] Question: Expectations for revenue growth in 2025 - Management is confident in achieving revenue growth in 2025, supported by audience engagement and digital monetization improvements [45][46] Question: Update on DOJ case against Google - Management believes the DOJ presented a strong case against Google's monopolistic behavior, which could restore competition in the ad tech space [48][49] Question: Microsoft deal and content value recognition - Management explained that the Microsoft deal allows for a narrow use of content, setting a precedent for future partnerships [52] Question: Retaining users post-election cycle - Management stated that growth in unique visitors is not solely dependent on political events, as they have been expanding other readership segments [55][56]