The New York Times Company (NYSE:NYT) posted third-quarter earnings that exceeded expectations, driven by robust digital subscription growth and an increase in digital ad revenue. Despite the beat, shares of the company dropped more than 7% intra-day today.

The media giant reported adjusted earnings per share of $0.45, above the $0.41 forecasted by analysts, while revenue reached $640.2 million, just shy of the $641 million estimate but reflecting a 7% year-over-year increase.

Digital-only subscription revenue surged 14.2% to $322.2 million, fueled by strong demand for bundle and multiproduct options. The Times added 260,000 new digital-only subscribers in the quarter, pushing its total subscriber count to 11.09 million.

Digital advertising revenues rose 8.8% to $81.6 million, bolstered by gains in programmatic and direct-sold display advertising, even as print advertising dropped by 12.6%.

Looking ahead to the fourth quarter, the New York Times projected digital-only subscription revenue to grow 14-17% year-over-year, with total subscription revenue expected to rise between 7% and 9%.