John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q3 2021 Earnings Presentation
18 slides from John Wiley & Sons's earnings presentation, Mar 4, 2021
Slide 1: Third Quarter 2021 Earnings Review
Unlocking Human Potential Third Quarter 2021 Earnings Review MARCH 4, 2021
Slide 2: Safe Harbor Statement and Non-GAAP Measures
SAFE HARBOR STATEMENT NON-GAAP MEASURES This presentation contains certain forward-looking statements concerning In this presentation, management provides the following non-GAAP the Company's operations, performance, and financial condition. Reliance performance measures: should not be placed on for
Slide 3: Business Review
Business Review Wiley is increasing the speed, volume, and Wiley is increasing the speed, accessibility, impact of research and education and impact of research and education 3
Slide 4: Wiley is a digital company
Wiley is a digital company Strong growth in digital content, platforms, and services 83% • Digital and tech-enabled services growing 7% TTM Digital • Share of revenue from digital: Products & Services ̶ Research – 95% ̶ Education Services – 100% ̶ Academic & Professional – 56% and accelerating • Rec
Slide 5: Consistent strategies aligned with accelerating growth trends
Consistent strategies aligned with accelerating growth trends YTD Open Research Online Education Digital Curriculum Article Output Online Enrollment Digital Content Revenue +17% +13% +20% OA Revenue New Student Starts Digital Courseware Activations +40% +19% +24% Hindawi strengthens OA position New
Slide 6: Focused execution driving strong momentum and earnings growth
Focused execution driving strong momentum and earnings growth Third Quarter Performance Revenue GAAP EPS Adj. EPS Adj. EBITDA +2%* -$0.24** +6%* +7%* $483M $0.39 $0.68 $104M Research Publishing & Platforms Revenue and profit as expected, with strong open access growth and impact from acquisitions of
Slide 7: Research Publishing & Platforms
Research Publishing & Platforms Growth in Open Access (OA) and Platforms offsetting modest COVID-related subscription pricing pressure • Publishing revenue +1% as expected Revenue ‒ Open access growth offsetting modest pricing pressure in subscriptions +1% ‒ Strong momentum in corporate solutions (c
Slide 8: Research – Spotlight on Hindawi
Research – Spotlight on Hindawi Acquisition of rapidly growing OA publisher brings substantial revenue synergy and operational efficiencies • Highly complementary with over 200 high-quality OA journals “We assign this move a positive rating • Accelerates article cascade strategy with expanded portfo
Slide 9: Academic & Professional Learning
Academic & Professional Learning Continued momentum in digital courseware and further recovery in Professional Learning • Education Publishing -4% with continued digital growth offset by declines in printed Revenue course material and COVID-related declines in test prep -4% • Professional Learning -
Slide 10: Education Services
Education Services Profitable growth strategy yielding strong results; online university program demand accelerating • Education Services organic revenue growth of 13% from strong Revenue enrollment and program launches +24% • Four full-service partners added – Tel Aviv (Israel), Lebanese American $
Slide 11: Financial Review
Unlocking Human Potential Financial Review John Kritzmacher EVP & CFO
Slide 12: Cash Flow, Balance Sheet, and Returns to Shareholders
Cash Flow, Balance Sheet, and Returns to Shareholders Capital Allocation Free Cash Flow: $80M (vs. $5M in prior year period) due to improved earnings, working capital timing and lower capex $7 $35 $58 Capex: $75M YTD (vs. $84M in prior year period) $75 focused on tech-enabled products and services,
Slide 13: Business Optimization and Cost Measures
Business Optimization and Cost Measures Business Optimization • Research: end-to-end publishing process optimization, including automating cascade, accelerating time-to-publish, increasing scale efficiencies and reducing overall cost per article; Hindawi acquisition a catalyst for further gains • Ac
Slide 14: Full Year Outlook Raised
Full Year Outlook Raised Fiscal 2020 Fiscal 2021 Fiscal 2021 Actual Previous Outlook Current Outlook Revenue $1,831M $1,865-$1,885M Raised, $1,900-$1,920M Adjusted EBITDA $356M $380-$395M Raised, $395-$410M Adjusted EPS $2.40 $2.50-$2.70 Raised, $2.60-$2.75 Free Cash Flow $173M $175-$200M Raised, $2
Slide 15: Key Takeaways
Key Takeaways Continued strong momentum in Research publishing output and digital platforms Increasing adoption of digital content and courseware across Academic & Professional Strong growth in online enrollment and career-focused degree programs in Education Services Expanding network of universiti
Slide 16: Thanks for joining us
Unlocking Human Potential Thanks for joining us Earnings material and events calendar at https://www.wiley.com/en-us/investors Q4 2021 Earnings Call – June Contact us for follow-up at brian.campbell@wiley.com | +1(201) 748-6874
Slide 17: Appendix – Reconciliation of Adjusted EPS
Appendix – Reconciliation of Adjusted EPS JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF GAAP EPS to NON-GAAP ADJUSTED EPS - DILUTED (unaudited) Three Months Ended Nine Months Ended January 31, January 31, 2021 2020 2021 2020 GAAP Earnings Per Share - Diluted $ 0.39 $ 0.63 $
Slide 18: Appendix – Reconciliation of Adjusted EBITDA
Appendix – Reconciliation of Adjusted EBITDA JOHN WILEY & SONS, INC. (1) SUPPLEMENTARY INFORMATION RECONCILIATION OF GAAP NET INCOME to NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Nine Months Ended January 31, January 31, 2021 2020 2021 2020 Net Income $ 22,161 $ 35,443 $ 106,