"According to the publisher's latest earnings, 'other' digital revenue grew 125.6% year-over-year to $33.75 million in the first quarter, driven by AI licensing deals."
"Mike Reed stated that AI licensing deals had a 'notable impact' on the company's first quarter revenue, marking a clear signal of their importance."
"'We're taking a long term approach rather than near term, because in the very near term it's a little bit lumpy or unpredictable,' Reed said."
"CFO Trisha Gosser noted the company expected 'variability' in AI licensing deal revenue, emphasizing a particularly 'strong contribution' in Q1."
USA Today Co. reported a 125.6% year-over-year growth in 'other' digital revenue, reaching $33.75 million in Q1. AI licensing deals contributed notably to this growth, although the exact percentage was not disclosed. CEO Mike Reed indicated that these agreements with companies like Meta and Microsoft are crucial for future revenue. However, executives warned that revenue from AI licensing may be inconsistent, with expectations of variability in future quarters. The company is pursuing additional AI licensing opportunities to enhance long-term growth.
Read at Digiday
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