John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q3 2024 Earnings Presentation
21 slides from John Wiley & Sons's earnings presentation, Mar 7, 2024
Slide 1: Third Quarter Fiscal 2024 Earnings Review
Third Quarter Fiscal 2024 Earnings Review March 7, 2024
Slide 2: Safe Harbor Statement and Non-GAAP Measures
SAFE HARBOR STATEMENT NON-GAAP MEASURES This presentation contains certain forward-looking statements concerning the In this presentation, Wiley provides the following non-GAAP performance Company's operations, performance, and financial condition. Reliance should measures: not be placed on forward-
Slide 3: The Knowledge Company
The Knowledge Company Wiley enables the creation of new knowledge and its application in science, learning, and innovation 3 3
Slide 4: Focusing and optimizing for long term success
YTD Progress Focusing and optimizing for long term success Moving decisively on our value creation plan to drive material performance and profit improvement in Fiscal 2025 and Fiscal 2026 Executing well on our divestitures (2 of 3 closed or in process) and $130 million cost savings program ($80M act
Slide 5: Third Quarter Performance
Third Quarter Performance GAAP Revenue Adj. Revenue* GAAP EPS Adj. EPS* Adj. EBITDA* ▼6% +1% ▼$0.79 ▼27% +1% $461M $403M ($2.08) $0.59 $92M *Adjusted Revenue, Adjusted EPS, and Adjusted EBITDA performance excludes businesses held for sale or sold. Collectively, these businesses generated $58 million
Slide 6: Investor Update Takeaways
Investor Update Takeaways Focusing on our core businesses, aligning resources and capital to our strongest and 1 most profitable opportunities Taking action to drive Research market share, driving submission growth, and 2 strengthening our brands and partnerships while maintaining quality AI and mac
Slide 7: AI Strategic Focus
AI Strategic Focus Content Product & Publishing Business Model Employee Licensing Innovation Innovation Productivity Leverage Wiley’s broad Transform the publishing Explore GenAI-enabled Drive material & high-quality catalog and author experience content application and productivity gains across to
Slide 8: VCP Progress, Segment Performance, Financial Position, Outlook
VCP Progress Segment Performance Financial Position Outlook
Slide 9: Value Creation Plan (VCP) Progress
Value Creation Plan (VCP) Progress Plans FY24 Progress Focus on strong, profitable core — Reorganized from three disparate segments into one market-facing Research & Learning team under one leader — Consolidating product, sales, and marketing functions to better leverage collective strengths and cus
Slide 10: Research Performance
Research Performance (millions) Q3 2024 Change Change CC Research Publishing $217 1% 0.4% Research Solutions $39 (1%) (1%) Total Revenue $256 1% 0.2% Adjusted EBITDA $79 (2%) Adjusted EBITDA Margin 30.9% ▪ Research Publishing improving with double-digit submission growth and steadily increasing outp
Slide 11: Learning Performance
Learning Performance (millions) Q3 2024 Change Change CC Academic $87 5% 5% Professional $59 (2%) (3%) Total Revenue $146 2% 2% Adjusted EBITDA $51 15% Adjusted EBITDA Margin 35.1% ▪ Academic performance due to growth in digital courseware, digital content, and licensing; Fall US undergrad enrollmen
Slide 12: Financial Position and Capital Allocation
Financial Position and Capital Allocation • Free Cash Flow YTD use of $45M vs. a use of $22M in prior year. Variance due to timing of closing journal subscription renewals and higher restructuring payments $87M $82M • Capex YTD of $70M vs. $75M in prior year period • M&A: No material acquisitions YT
Slide 13: Fiscal 2024 Outlook
Fiscal 2024 Outlook • Revenue expected to trend toward mid-to-high end of range due to Learning outperformance augmented by Q4 content rights deal for training AI models • Adj. EBITDA raised due to improved revenue performance and accelerated cost savings • Adj. EPS guidance raised due to Adjusted O
Slide 14: Summary
Summary
Slide 15: Observations
Observations 1 Strong and resilient businesses founded on long-standing customer and partner relationships 2 Clear competitive advantage in Research, built upon strong brands and franchises 3 Healthy long-term growth trends for new knowledge in our markets 4 Renowned global brand that stands for int
Slide 16: YTD Summary
YTD Summary: Transitioning to a stronger, more profitable Wiley Research improving and Learning outperforming. Full year revenue expectations 1 trending toward mid-to-high range and earnings guidance raised Relentlessly focused on executing and moving decisively on our value creation 2 plan and oper
Slide 17: FY25-26 Financial Targets
FY25-26 Financial Targets FY25 Target FY26 Target Metric Low-single Low-to-mid single Adjusted Revenue digit growth digit growth Adjusted EBITDA margin 23-24% 24-25% Free Cash Flow Approx. $125M Approx. $200M Note: FY25 & FY26 targets exclude any potential acquisitions through this period 17
Slide 18: Thank you for joining us
Thank you for joining us IR website at https://investors.wiley.com/ Contact: brian.campbell@wiley.com Direct +1 (201) 748-6874 Investor Update Replay and Slides click here 18 Q324 Earnings Presentation.pptx
Slide 19: Appendix – US GAAP to Non-GAAP EPS Reconciliation
Appendix – US GAAP to Non-GAAP EPS Reconciliation Reconciliation of US GAAP Loss per Share to Non-GAAP Adjusted EPS Three Months Ended Nine Months Ended January 31, January 31, 2024 2023 2024 2023 US GAAP Loss Per Share - Diluted $ (2.08) $ (1.29) $ (4.10) $ (0.92) Adjustments: Impairment of goodwil
Slide 20: Appendix – US GAAP to Non-GAAP EPS Notes
Appendix – US GAAP to Non-GAAP EPS Notes (1) See Explanation of Usage of Non-GAAP Performance Measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful information to investors.
Slide 21: Appendix – Net Income to Adjusted EBITDA
Appendix – Net Income to Adjusted EBITDA RECONCILIATION OF US GAAP NET LOSS TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Nine Months Ended January 31, January 31, 2024 2023 2024 2023 Net Loss $ (113,875) $ (71,469) $ (225,584) $ (51,111) Interest expense 13,321 11,521 37,592