Revenue

6 Months Ended

Jun. 26, 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, our live events business, our student subscription sponsorship program, and television and film.

Subscription, advertising and other revenues were as follows for the second quarters and first six months ended June 26, 2022, and June 27, 2021:

	For the Quarters Ended								For the Six Months Ended
(In thousands)	June 26, 2022		As % of total		June 27, 2021		As % of total		June 26, 2022		As % of total		June 27, 2021		As % of total
Subscription	$	383,619	69.0	%	$	339,217	68.1	%	$	755,598	69.2	%	$	668,301	68.8	%
Advertising	117,379		21.0	%	112,774		22.6	%	233,649		21.3	%	209,890		21.6	%
Other (1)	54,682		10.0	%	46,506		9.3	%	103,858		9.5	%	93,351		9.6	%
Total	$	555,680	100.0	%	$	498,497	100.0	%	$	1,093,105	100.0	%	$	971,542	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 second quarters of 2022 and 2021, respectively, and approximately $14 million and $13 million for the first six months of 2022 and 2021, respectively.

The following table summarizes digital and print subscription revenues, which are components of subscription revenues above, for the second quarters and first six months ended June 26, 2022, and June 27, 2021:

	For the Quarters Ended								For the Six Months Ended
(In thousands)	June 26, 2022		As % of total		June 27, 2021		As % of total		June 26, 2022		As % of total		June 27, 2021		As % of total
Digital-only subscription revenues (1)	$	238,727	62.2	%	$	190,145	56.1	%	$	465,489	61.6	%	$	369,745	55.3	%
Print subscription revenues:
Domestic home delivery subscription revenues (2)	131,080		34.2	%	134,755		39.7	%	262,472		34.7	%	269,150		40.3	%
Single-copy, NYT International and Other subscription revenues (3)	13,812		3.6	%	14,317		4.2	%	27,637		3.7	%	29,406		4.4	%
Subtotal print subscription revenues	144,892		37.8	%	149,072		43.9	%	290,109		38.4	%	298,556		44.7	%
Total subscription revenues	$	383,619	100.0	%	$	339,217	100.0	%	$	755,598	100.0	%	$	668,301	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 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 second quarters and first six months ended June 26, 2022, and June 27, 2021:

	For the Quarters Ended								For the Six Months Ended
(In thousands)	June 26, 2022		As % of total		June 27, 2021		As % of total		June 26, 2022		As % of total		June 27, 2021		As % of total
Advertising revenues:
Digital	$	69,292	59.0	%	$	70,995	63.0	%	$	136,306	58.3	%	$	130,491	62.2	%
Print	48,087		41.0	%	41,779		37.0	%	97,343		41.7	%	79,399		37.8	%
Total advertising	$	117,379	100.0	%	$	112,774	100.0	%	$	233,649	100.0	%	$	209,890	100.0	%

Performance Obligations

We have remaining performance obligations related to digital archive and other licensing and certain advertising contracts. As of June 26, 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 $105 million. The Company will recognize this revenue as performance obligations are satisfied. We expect that approximately $21 million, $22 million and $62 million will be recognized in the remainder of 2022, 2023 and thereafter through 2028, respectively.

Contract Assets

As of June 26, 2022, and December 26, 2021, the Company had $3.7 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.