The New York Times (NYT) stock is trading lower on Monday after the company released its third-quarter financial results. While the company exceeded earnings estimates, revenue fell short, and a strike by hundreds of tech employees adds another layer of pressure to the company’s performance.
Q3 Earnings Highlights:
The New York Times reported adjusted earnings of 45 cents per share, exceeding analyst expectations of 41 cents per share. However, the company’s revenue came in at $640.2 million, representing a 7% year-over-year increase, but falling slightly below analyst estimates of $640.8 million.
The company’s advertising revenue reached $118.4 million, while subscription revenue totaled $453.3 million. Other revenue, which includes Wirecutter affiliate referral rates and licensing revenues, amounted to $68.5 million.
Meredith Kopit Levien, President and CEO of The New York Times, stated that the third quarter marked another period of strong performance, highlighting the company’s progress in becoming an essential subscription service for those seeking to understand and engage with the world. The company surpassed 11 million total subscribers during the quarter, with over 5 million subscribing to bundles or multiple products.
Tech Employees Strike:
Adding to the pressure on the New York Times, hundreds of employees represented by the Times Tech Guild have gone on strike. The striking employees, including engineers, data managers, and software developers, are responsible for building and maintaining the systems that support the company’s website and digital applications. This strike, coinciding with the U.S. presidential election, could potentially disrupt the company’s operations, marking the first strike in the NewsGuild to coincide with an election since 1964. The strike is reportedly centered around disputes regarding fair pay and a “just cause” provision.
A spokesperson for The New York Times assured Variety that the company has “robust plans in place to ensure that we are able to fulfill our mission and serve our readers.”
NYT Stock Performance:
At the time of publication, New York Times shares had declined by 7.22%, trading at $52.63. The combination of mixed financial results and the ongoing strike has put downward pressure on the company’s stock price.
