First Quarter
Fiscal 2025
Earnings Review
September 5, 2024
The Knowledge Company
Wiley enables the creation of knowledge and its application in science, learning, innovation, and other critical areas of the knowledge economy
3
Wiley Today
|
Full Year 2024* |
RESEARCH |
LEARNING |
|
Business Focus |
Publishing and Knowledge Solutions |
Publishing and Knowledge Solutions |
|
Reporting Lines |
Research Publishing & Research Solutions |
Academic & Professional |
|
Knowledge Verticals |
Science, Technical, Medical, Scholarly |
Business, Technology, Science, Engineering |
|
Products |
Journals, publishing and audience |
Books, courseware, assessments, and |
|
solutions, content licensing and platforms |
content licensing |
|
|
Total Adj. Revenue |
$1,043M |
$574M |
|
% of Wiley Revenue |
64% |
36% |
|
% Digital and Services |
96% |
59% |
|
% Recurring |
68% |
11% |
|
Segment Adj. EBITDA |
31.8% |
34.9% |
|
Margin |
||
|
*Excludes all businesses held for sale or sold |
||
|
4 |
Q125 Earnings Presentation .pptx
Executive Summary
Delivered strong year-over-year financial performance driven by solid growth in Research Publishing, AI- related demand for Learning content, and continued execution of the Value Creation Plan
Executed second GenAI rights project; interest continuing from other AI providers
Closed third and final divestiture and actioned remaining $40M of $130M cost savings program
Rewarded shareholders with increased dividend (31 consecutive years) and share repurchases
Measurable elevation of Wiley culture and colleague engagement, setting us up for continued success
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Q125 Earnings Presentation .pptx
Executing on our Fiscal 2025 Objectives
|
OBJECTIVE |
Q1 STATUS Q1 PROGRESS |
- Delivered 4% growth in Research Publishing fueled by strong
|
Drive recovery and growth in |
execution and favorable demand trends |
|
Research |
• Delivered growth across key areas, including gold open access and |
|
multi-year institutional models |
|
• Executed a second content rights project valued at $21 million; $17 |
||
|
Move decisively on AI |
million realized in Q1 |
|
|
• |
Interest continuing from other AI providers |
|
|
opportunities |
||
|
• |
Wiley cited by Salesforce in recent earnings call as one of their first |
|
|
deployments in their AI platform trial for customer support |
|
Drive performance and |
• |
Actioned the remaining $40M of $130M cost savings program |
|
profit improvement through |
||
|
• |
Closed on CrossKnowledge divestiture (after quarter closed) |
|
|
Value Creation Plan |
||
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Q125 Earnings Presentation .pptx
First Quarter Performance
|
GAAP Revenue |
Adj. Revenue* |
GAAP EPS |
Adj. EPS* |
|
▼10% |
▲6% |
▲$1.64 |
▲74% |
|
$404M |
$390M |
($0.03) |
$0.47 |
Adj. EBITDA*
▲22%
$73M
*Adjusted Revenue, Adjusted EPS, and Adjusted EBITDA performance excludes businesses held for sale or sold. Adjusted numbers exclude impact of foreign exchange
Q1
Summary
- GAAP Revenue impacted by divested businesses and held for sale performance
- Adjusted Revenue growth driven by recovery and growth in Research Publishing, GenAI content rights project in Learning, and core growth in Academic
- GAAP EPS loss mainly due to a non-cash income tax adjustment as a consequence of US valuation allowance related to our divested businesses. Improvement due to favorable comparison to prior year impairment and restructuring charges
- Adjusted EBITDA growth driven by revenue performance and cost savings program
- Adjusted EPS growth further augmented by accrued interest from divestitures
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Q125 Earnings Presentation .pptx
Research Growth Trends and Execution
Global R&D Spend
+8%
Key macro indicator and driver of
research publishing output
Source: Research World 2024
Projection ($2.53T) vs. 2022
Projection
Article Submissions
+18%
Key demand indicator signaling
robustness of research
ecosystem, enduring draw of Wiley journals, and execution
Both mature and high growth
markets performing well
Source: Wiley Q1 vs. Prior Year
Article Output
+6%
Key revenue driver, important for both
institutional licenses and Gold OA
Wiley publishes only ~30% of the
submissions it receives
Source: Wiley Q1 vs. Prior Year
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Q125 Earnings Presentation .pptx
AI Leadership
Wiley Licensing Principles
- Content licensing is not a new or AI-specific activity for us - it is core to our mission
- We have a responsibility to engage with AI developers
- Quality and accuracy are essential - AI models should be trained on high-quality, authoritative content
- The rights of authors and other copyright holders must be protected
-
Copyright holders should receive fair compensation when their
IP is used, consistent with contractual arrangements - We help authors, societies, and associations successfully navigate AI
AI Growth: IP Licensing
Stage 1
Leverage Wiley's broad, high-quality
catalog to train GenAI models
Stage 2
Drive toward recurring licensing arrangements with model builders, application developers, and R&D- centric corporates
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Q125 Earnings Presentation .pptx
VCP and Reinvestment
Segment Performance
Outlook
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John Wiley & Sons Inc. published this content on 05 September 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on September 05, 2024 at 20:58:32 UTC.