Revenue

9 Months Ended

Sep. 30, 2024

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 Cooking, Games and Wirecutter products), and single-copy and bulk sales of our print products. Subscription revenues are based on both the number of digital-only subscriptions and copies of the printed newspaper sold, 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 open-market 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 (including direct-sold programmatic advertising). 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. NYTG has revenue from all categories discussed above. The Athletic has revenue from direct-sold display advertising, podcast, email and video advertisements (including direct-sold programmatic advertising) and open-market programmatic advertising. There is no print advertising revenue generated from The Athletic.

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”), our live events business, books, television and film, retail commerce and our student subscription sponsorship program.

Subscription, advertising and other revenues were as follows:

	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 30, 2024		As % of total		September 30, 2023		As % of total		September 30, 2024		As % of total		September 30, 2023		As % of total
Subscription	$	453,327	70.8	%	$	418,577	70.0	%	$	1,321,654	71.1	%	$	1,225,709	70.0	%
Advertising	118,370		18.5	%	117,113		19.6	%	341,244		18.4	%	341,124		19.5	%
Other (1)	68,481		10.7	%	62,655		10.4	%	196,392		10.5	%	183,104		10.5	%
Total	$	640,178	100.0	%	$	598,345	100.0	%	$	1,859,290	100.0	%	$	1,749,937	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 $6.6 million and $6.8 million for the third quarters of 2024 and 2023, respectively, and $19.9 million and $20.5 million for the first nine months of 2024 and 2023, 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 30, 2024, and September 30, 2023:

	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 30, 2024		As % of total		September 30, 2023		As % of total		September 30, 2024		As % of total		September 30, 2023		As % of total
Digital-only subscription revenues (1)	$	322,198	71.1	%	$	282,228	67.4	%	$	919,677	69.6	%	$	810,770	66.1	%
Print subscription revenues (2)	131,129		28.9	%	136,349		32.6	%	401,977		30.4	%	414,939		33.9	%
Total subscription revenues	$	453,327	100.0	%	$	418,577	100.0	%	$	1,321,654	100.0	%	$	1,225,709	100.0	%
(1) Includes revenue from bundled and standalone subscriptions to our news product, as well as to The Athletic and our Cooking, Games and Wirecutter products.
(2) Includes domestic home-delivery subscriptions, which include access to our digital products. Also includes single-copy, NYT International and Other subscription revenues.

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 30, 2024, and September 30, 2023:

	For the Quarters Ended								For the Nine Months Ended
(In thousands)	September 30, 2024		As % of total		September 30, 2023		As % of total		September 30, 2024		As % of total		September 30, 2023		As % of total
Advertising revenues:
Digital	$	81,564	68.9	%	$	75,001	64.0	%	$	224,166	65.7	%	$	210,076	61.6	%
Print	36,806		31.1	%	42,112		36.0	%	117,078		34.3	%	131,048		38.4	%
Total advertising	$	118,370	100.0	%	$	117,113	100.0	%	$	341,244	100.0	%	$	341,124	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of September 30, 2024, the aggregate amount of the transaction price allocated to the remaining performance obligations for contracts with a duration greater than one year was approximately $174 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $33 million, $91 million and $50 million will be recognized in the remainder of 2024, 2025 and thereafter through 2030, respectively.

Unexpired Subscriptions

Payments for subscriptions are typically due upfront and the revenue is recognized ratably over the subscription period. The proceeds are recorded within Unexpired subscriptions revenue in the Condensed Consolidated Balance Sheet. Total unexpired subscriptions as of December 31, 2023, were $172.8 million, of which approximately $161 million was recognized as revenues during the nine months ended September 30, 2024.

Contract Assets

As of September 30, 2024, and December 31, 2023, the Company had $3.3 million and $3.5 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.