GCI - Gannett rallies as record digital marketing revenue overshadows earnings miss

• Gannett ( NYSE: GCI ) stock rose sharply despite the company reporting miss on both top and bottom line in its third quarter earnings .
• The bullish sentiments are likely taking clues from media firm's record high digital marketing solutions core platform revenue of $118.7M, up 5.3% year-over-year.
• Digital-only paid subscribers rose 28.5% to 1.98M at the end of Q3 2022. Average revenue per user reached $2,511 during the quarter.
• Overall company's revenue of $717.9M (-10.3% Y/Y), however, missed consensus by $27.6M. Same-store revenue fell 9% from a year ago.
• Adjusted EBITDA stood at $51.9M, down 49.1% Y/Y, with margin of 7.2% reflecting sequential improvement of 40 basis points.
• Cash provided by operating activities was $31.3M and free cash flow of $18.6M.
• GAAP EPS of -$0.39 missed by $0.15.
• The company ended the quarter with cash and cash equivalents of $124.9M alongside paying off $24.3M in debt during the three months ended Sept 30. and $129.9M of debt year-to-date.
• "We continue to execute on $200 million to $240 million in annualized cost savings through the implementation of temporary and permanent actions that are expected to give us near-term flexibility and allow us to continue forward towards the Company's digital transformation," said Michael Reed, Gannett Chairman and Chief Executive Officer.
• FY 2022 Guidance: Revenue is expected between $2.95-$3B vs. consensus of $3B; Same-store total revenues growth to be negative between -7% to -6%;
• Adjusted EBITDA for the full-year is forecasted to range between $270-$300M;
• Ending digital only subscribers of 2-2.2M; and Net Loss of $70-$60M for fiscal 2022.
• GCI shares are up 12% on Thursday.
• SA Quant Rating's of Strong Sell is same as Wall Street's expectations, however, stands totally on the opposite side of the pole with SA Authors' Strong Buy .
• In the past three months stock has fallen over 50% and down 4% in the last one-month .

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