Revenue

9 Months Ended

Sep. 25, 2022

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

We generate revenues principally from subscriptions and advertising. Subscription revenues consist of revenues from subscriptions to our digital and print products (which include our news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products), and single-copy and bulk sales of our print products. Subscription revenues are based on both the number of copies of the printed newspaper sold and digital-only subscriptions, and the rates charged to the respective customers.

Advertising revenue is generated principally from advertisers (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio and video, and in print in the form of column-inch ads. Advertising revenue is generated primarily from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements. Advertising revenue from The Athletic is primarily podcast revenue and therefore is reflected in this category. Direct-sold display advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. Print advertising includes revenue from column-inch ads and classified advertising as well as preprinted advertising, also known as freestanding inserts.

Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), retail commerce, television and film, our live events business and our student subscription sponsorship program.

Subscription, advertising and other revenues were as follows for the third quarters and first nine months ended September 25, 2022, and September 26, 2021:

	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 25, 2022		As % of total		September 26, 2021		As % of total		September 25, 2022		As % of total		September 26, 2021		As % of total
Subscription	$	382,672	69.9	%	$	342,609	67.4	%	$	1,138,270	69.3	%	$	1,010,910	68.3	%
Advertising	110,467		20.1	%	110,887		21.7	%	344,116		21.0	%	320,777		21.6	%
Other (1)	54,541		10.0	%	55,607		10.9	%	158,399		9.7	%	148,958		10.1	%
Total	$	547,680	100.0	%	$	509,103	100.0	%	$	1,640,785	100.0	%	$	1,480,645	100.0	%

(1) Other revenues include building rental revenue, which is not under the scope of Revenue from Contracts with Customers (Topic 606). Building rental revenue was approximately $7 million for the third quarters of 2022 and 2021, respectively, and approximately $22 million and $20 million for the first nine months of 2022 and 2021, respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the third quarters and first nine months ended September 25, 2022, and September 26, 2021:

	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 25, 2022		As % of total		September 26, 2021		As % of total		September 25, 2022		As % of total		September 26, 2021		As % of total
Digital-only subscription revenues (1)	$	243,889	63.7	%	$	198,633	58.0	%	$	709,378	62.3	%	$	568,378	56.2	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	124,653		32.6	%	128,895		37.6	%	387,125		34.0	%	398,045		39.4	%
Single-copy, NYT International and Other subscription revenues (3)	14,130		3.7	%	15,081		4.4	%	41,767		3.7	%	44,487		4.4	%
Subtotal print subscription revenues	138,783		36.3	%	143,976		42.0	%	428,892		37.7	%	442,532		43.8	%
Total subscription revenues	$	382,672	100.0	%	$	342,609	100.0	%	$	1,138,270	100.0	%	$	1,010,910	100.0	%
(1) Includes revenue from digital-only bundled and standalone subscriptions to our news product, as well as The Athletic and our Games, Cooking, Audm and Wirecutter products.
(2) Domestic home delivery subscriptions include access to our digital news product, as well as The Athletic and our Games, Cooking and Wirecutter products.
(3) NYT International is the international edition of our print newspaper.

The following table summarizes digital and print advertising revenues, which are components of advertising revenues above, for the third quarters and first nine months ended September 25, 2022, and September 26, 2021:

	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 25, 2022		As % of total		September 26, 2021		As % of total		September 25, 2022		As % of total		September 26, 2021		As % of total
Advertising revenues:
Digital	$	70,282	63.6	%	$	66,981	60.4	%	$	206,588	60.0	%	$	197,472	61.6	%
Print	40,185		36.4	%	43,906		39.6	%	137,528		40.0	%	123,305		38.4	%
Total advertising	$	110,467	100.0	%	$	110,887	100.0	%	$	344,116	100.0	%	$	320,777	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of September 25, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $99 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $8 million, $25 million and $66 million will be recognized in the remainder of 2022, 2023 and thereafter through 2028, respectively.

Contract Assets

As of September 25, 2022, and December 26, 2021, the Company had $3.8 million and $3.4 million, respectively, in contract assets recorded in the Condensed Consolidated Balance Sheets related to digital archiving licensing revenue. The contract asset is reclassified to Accounts receivable when the customer is invoiced based on the contractual billing schedule.