John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q4 2021 Earnings Presentation
22 slides from John Wiley & Sons's earnings presentation, Jun 10, 2021
Slide 1: Presenters: Brian Napack, John Kritzmacher, Brian Campbell
Brian Napack, President & CEOJohn Kritzmacher, EVP & CFOBrian Campbell, VP of Investor Relations
Slide 2: Safe Harbor Statement and Non-GAAP Measures
SAFE HARBOR STATEMENTThis presentation contains certain forward-looking statements concerning the Company's operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking stateme
Slide 3: Wiley unlocks human potential by powering discovery and learning
Wiley unlocks human potential by powering discovery and learning
Slide 4: Fiscal 2021 Summary
Fiscal 2021 Summary 82% FY21 share of revenue from digital & servicesvs. 80% in FY20 Well-established growth strategies in open research and career-connected education are paying offLong term trends in open research, online education, and digital curriculum are being pulled forward, strengthening gr
Slide 5: Fiscal 2021 Metrics
Open Research Online Education Digital Curriculum Article Output +15%OA Revenue +38%Read-and-publish agreements generating strong momentumHindawi acquisition expands portfolio and drives revenue synergies Online Enrollment +14%New Student Enrollments+20%New university partnerships and programs aroun
Slide 6: Growth Strategies Drive Societal Impact
16MWiley Researchers 25KUniversity & Corporate Customers AMSCI ESG Rating 100%Human Rights LGBTQ Score* Growth Strategies Drive Societal ImpactOpen research to increase speed, accessibility, and impact of knowledge ecosystem Career-connected education to close skills gaps and unlock human potential
Slide 7: Q4 2021: Focused execution driving strong performance
Q4 2021: Focused execution driving strong performance *Revenue +7% at constant currency and excluding acquisitionsAll metrics except for GAAP EPS are at constant currency Revenue+10%*$536M GAAP EPS+$3.56$0.73 Adj. EPS+41%$0.84 Adj. EBITDA+21% $113M Research Publishing & Platforms Revenue (+9%) drive
Slide 8: Fiscal 2021: Growth across all key metrics
Fiscal 2021: Growth across all key metrics $1,831 $1,942 Revenue +4% GAAP EPS +$3.95 Adjusted EPS +27% $2.40 $356 $419 $2.92 ($1.32) $2.63 $288 $360 $173 $257 Adjusted EBITDA +16% Cash from Ops +25% Free Cash Flow +48%
Slide 9: Research Publishing & Platforms
(millions) Q4 2021 Change Change CC Research Publishing $272 13% 9% Research Platforms $11 6% 6% TOTAL REVENUE $283 13% 9% ADJUSTED EBITDA $92 (6%) ADJ. EBITDA MARGIN 32% FY 2021 Change Change CC $973 7% 5% $43 7% 7% $1,015 7% 5% $357 6% 35% Strong growth in research output (+15%) and usage (+25%)St
Slide 10: Research in Fiscal 2022: Growth accelerating
Research in Fiscal 2022: Growth accelerating Fiscal Year 2022 Market DynamicsGlobal R&D spending growth acceleratingStrong demand to publish and access researchPeer-reviewed research remains essential and in demandShift to OA creating attractive PxQ environmentCorporate demand for research continuin
Slide 11: Academic & Professional Learning
(millions) Q4 2021 Change Change CC Education Publishing $99 17% 15% Professional Learning $74 13% 9% TOTAL REVENUE $173 15% 12% ADJUSTED EBITDA $46 57% ADJ. EBITDA MARGIN 27% FY 2021 Change Change CC $364 3% 2% $281 (6%) (8%) $645 (1%) (2%) $164 4% 25% Ed Pub growth from strong digital portfolio (r
Slide 12: APL in Fiscal 2022: Return to growth
Fiscal Year 2022 Market DynamicsContinued broad adoption of digital content and courseware in academic and professional environmentsHigher education enrollment expected to improve but COVID-related uncertainty remainsIncreased corporate emphasis on training and e-learningChallenging labor market dri
Slide 13: Education Services
(millions)Adj Q4 2021 Change Change CC Education Services $64 8% 8% Mthree $16 12% 4% TOTAL REVENUE $80 9% 7% ADJUSTED EBITDA $15 32% ADJ. EBITDA MARGIN 19% FY 2021 Change Change CC $228 8% 8% $54 $282 21% 21% $51 +$31 18% Strong year for enrollment (+14%) in our online degree programsEight new univ
Slide 14: Education Services in Fiscal 2022: Growth accelerating
Fiscal Year 2022 Market DynamicsUniversity transition to online and hybrid deliveryDemand for graduate and alternative credentials risingStrong focus on affordable pathways to high-demand jobsUrgent need for companies to fill Tech skills gap Organic Revenue Growth At constant currency and excluding
Slide 15: Fiscal 2022 Outlook and Financial Position
Fiscal 2022 Outlook and Financial Position
Slide 16: Fiscal 2022: Targeted growth strategies and investments
FY22 Key Growth and Optimization InitiativesOpen ResearchPublish more to meet global demandDrive Hindawi integration and revenue synergiesScale service offerings for societies and corporationsCareer-Connected EducationExpand online degree programs and drive online enrollment Scale digital courseware
Slide 17: Fiscal 2022 Outlook
Metric Fiscal 2021 Fiscal 2022 Outlook Revenue $1,942 $2,070 to $2,100 Adjusted EBITDA $419 $415 to $435 Adjusted EPS $2.92 $2.80 to $3.05 Free Cash Flow $257 $200 to $220 Fiscal 2022 Outlook Revenue Outlook: revenue to exceed $2B for the first time, with mid-to-high single digit growth anticipated
Slide 18: Balance Sheet, Cash Flow, and Returns to Shareholders
Balance Sheet, Cash Flow, and Returns to Shareholders Modest Leverage: Net Debt/EBITDA 1.7 TTM inclusive of Hindawi acquisitionFree Cash Flow: $257M (vs. $173M in FY20) due to increased cash earnings, lower capex, and one-time itemsCapex: $103M (vs. $115M in prior year period) focused on development
Slide 19: Executive Summary
Executive Summary Well-established growth strategies in open research and career-connected education are paying offLong term trends in open research, online education, and digital curriculum are being pulled forward, strengthening growth outlookFiscal 2021 revenue, profit, and cash flow performance
Slide 20: Thank you / Investor Relations contact
New IR website at https://investors.wiley.com/Q1 2022 Earnings Call – September 2, 2021Investor Day – October 29, 2021Thank you for joining us. Contact us for follow-up at:brian.campbell@wiley.com | +1(201) 748-6874
Slide 21: Appendix – Reconciliation of US GAAP to Non-GAAP Measures
Appendix – Reconciliation of US GAAP to NON-GAAP Measures JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) (2) RECONCILIATION OF U.S. GAAP MEASURES to NON-GAAP MEASURES (unaudited) Reconciliation of U.S. GAAP EPS to Non-GAAP Adjusted EPS Three Months Ended Year Ended April 30, April 30, 2021 20
Slide 22: Appendix – Reconciliation of Net Income to Adjusted EBITDA
Appendix – Reconciliation of Net Income to Adjusted EBITDA JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Year Ended April 30, April 30, 2021 2020 2020 2021 2020 2020 Net Income (Los