In This Article:
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Revenue Growth: Up 3%, driven by learning growth of 7% and research growth of 1%.
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Adjusted EBITDA: Increased 14% to $106 million.
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Adjusted EBITDA Margin: 24.9%, up from 22.7% last year.
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Adjusted EPS: Up 36% due to higher adjusted operating income and accrued interest income.
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Research Revenue: Up 1% for the quarter, driven by gold open access and institutional models.
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Learning Revenue: Up 7%, with academic up 5% and professional up 11%.
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Free Cash Flow: Anticipated to be approximately $125 million, up from $114 million.
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Net Debt-to-EBITDA Ratio: 2.2 at the end of October.
Release Date: December 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue growth was driven primarily by the learning segment, which saw favorable market conditions across both academic and professional sectors.
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Margin expansion and EPS growth were notable this quarter, with adjusted EBITDA and adjusted EPS up 17% and 47%, respectively.
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The company is seeing AI-related tailwinds and has a healthy pipeline of pharma and other R&D-centric companies exploring content and data for AI applications.
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John Wiley & Sons Inc (NYSE:WLY) has successfully completed all divestitures, allowing for a more focused business strategy.
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The Indian government's approval of a One Nation One Subscription program is expected to significantly expand access to Wiley's journal content, potentially boosting subscription revenue.
Negative Points
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Research growth was modest, with a 1% increase, partially offset by a large year-on-year decline in legacy print and licensing revenue.
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The GAAP revenue decline was impacted by foregone revenue from sold businesses.
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The company anticipates an uneven second half, with Q3 expected to be challenged due to seasonal fluctuations and current year investments.
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Legacy revenue performance was uneven, largely due to unfavorable comparisons with a one-time backfile deal in the prior year.
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The corporate expenses were flat or slightly up year-to-date, with higher tech spending offsetting cost savings.
Q & A Highlights
Q: Can you elaborate on the momentum in the learning business and the sustainability of its growth? A: Jay Flynn, Executive Vice President and General Manager of Research, highlighted the strong performance in the learning segment, driven by growth in the zyBooks platform and recovery in the trade business. The team has adjusted the cost structure while driving top-line performance, and new content acquisition is a positive forward-looking indicator. AI revenue also provides additional tailwinds, contributing to a stable and growing learning business.