John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q4 2024 Earnings Presentation
24 slides from John Wiley & Sons's earnings presentation, Jun 13, 2024
Slide 1: Fourth Quarter and Fiscal 2024 Earnings Review
Fourth Quarter and Fiscal 2024 Earnings Review June 13, 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 measures: Company's operations, performance, and financial condition. Reliance should not be ▪ Adjusted Revenue
Slide 3: The Knowledge Company
The Knowledge Company Wiley enables the creation of new knowledge and its application in science, learning, innovation, and other critical areas of the digital knowledge economy 3
Slide 4: Executive Summary
Executive Summary Strong underlying momentum in Research and outperformance in Learning GenAI demand accelerating with execution of Q4 content rights project for large tech company; second GenAI rights project executed to be recognized in Fiscal 2025 2 of 3 divestitures closed; Wiley reorganized int
Slide 5: Disciplined Execution for Meet and Exceed
Disciplined Execution for Meet and Exceed METRIC COMMITMENT RESULT OUTCOME $1,580 to $1,630 Adj. Revenue guidance $1,617M Meets Mid-to-high end of range Original: $305-$330M Adj. EBITDA guidance $369M Exceeds Raised: $335-$355M Original: $2.05 to $2.40 Adj. EPS guidance $2.78 Exceeds Raised: $2.45-$
Slide 6: Highly Valued and Well Positioned for AI
Highly Valued and Well Positioned for AI 1. Wiley’s content highly valued for training GenAI large language models ▪ Two GenAI content rights projects executed for previously-published content with limited duration and narrow use 1. Learning content rights project for large tech company ($23 million
Slide 7: Fourth Quarter Performance
Fourth Quarter Performance GAAP Revenue Adj. Revenue* GAAP EPS Adj. EPS* Adj. EBITDA* ▼11% ▲4% ▼$0.76 ▲2% ▲7% $468M $441M $0.46 $1.21 $125M *Adjusted Revenue, Adjusted EPS, and Adjusted EBITDA performance excludes businesses held for sale or sold. Adjusted numbers exclude impact of foreign exchange
Slide 8: Full Year Performance
Full Year Performance GAAP Revenue Adj. Revenue* GAAP EPS Adj. EPS* Adj. EBITDA* ▼7% ▼1% ▼$3.96 ▼19% ▼3% $1,873M $1,617M ($3.65) $2.78 $369M *Adjusted Revenue, Adjusted EPS, and Adjusted EBITDA performance excludes businesses held for sale or sold. Adjusted numbers exclude impact of foreign exchange
Slide 9: Research Momentum
Research Momentum Significant momentum in Research after some unusual challenges this year ▪ Demand to publish strong with submissions +15%* and output accelerating. Q4 output up mid-single digits ▪ Robust recovery and growth across key geographies after slow start to FY24 from the unusual COVID pub
Slide 10: Learning Momentum
Learning Momentum New photo coming Significant momentum in Learning with more favorable market conditions and strong execution and focus ▪ Outperformance in FY24 with return to growth and margin expansion ▪ Strong digital content and courseware growth and inclusive access momentum ▪ US undergrad enr
Slide 11: VCP progress, Reinvestment, Segment performance, Outlook
VCP progress Reinvestment Segment performance Outlook
Slide 12: Value Creation Plan Progress
Value Creation Plan Progress Plans FY24 Progress ▪ Reorganized from three disparate segments into one market-facing Research & Learning team under one leader Focus on strong, profitable core ▪ Drove outperformance and material margin expansion in Learning ▪ Executed on AI content rights projects in
Slide 13: Reinvestment
Reinvestment Driving continuous margin expansion while reinvesting for sustained, long term success Grow Publishing Volumes Monetize and Leverage GenAI ▪ Expand refer & transfer, content acquisition, new ▪ Leverage Generative AI & Machine Learning to journals, editorial expansion, and new author and
Slide 14: Research Performance
Research Performance (millions) Q4 2024 Change Change CC FY 2024 Change Change CC Research Publishing $233 (3%) (3%) $893 (4%) (5%) Research Solutions $38 (5%) (5%) $150 (2%) (3%) Total Revenue $271 (3%) (3%) $1,043 (3%) (4%) Adjusted EBITDA $94 (12%) $331 (13%) Adjusted EBITDA Margin 34.6% 31.8% Q4
Slide 15: Learning Performance
Learning Performance (millions) Q4 2024 Change Change CC FY 2024 Change Change CC Academic $99 22% 22% $323 6% 6% Professional $71 13% 13% $251 4% 3% Total Revenue $170 18% 18% $574 5% 5% Adjusted EBITDA $74 54% $200 27% Adjusted EBITDA Margin 43.5% 34.9% Q4’24 FY25 Expectations ▪ Learning outperfor
Slide 16: Fiscal 2025 Growth Outlook
Fiscal 2025 Growth Outlook Metric Fiscal 2024 Results Fiscal 2025 Outlook • Adjusted Revenue – growth expected (Millions, except EPS) in Research Publishing, Research Solutions, Academic and Professional. • Adjusted EBITDA – margin Adjusted Revenue* $1,617 $1,650 to $1,690 expansion driven by revenu
Slide 17: Financial Position and Capital Allocation
Financial Position and Capital Allocation ▪ Free Cash Flow of $114 million moderately above expectations. Variance to prior year due to lower cash earnings, increased restructuring costs, and higher interest payments Dividends and Repurchases ▪ Capex of $93M vs. $104M in prior year period. Wiley exp
Slide 18: Summary
Summary
Slide 19: Growing Confidence and Optimism
Growing Confidence and Optimism Strong underlying momentum in Research and outperformance in Learning GenAI momentum accelerating with two executed content projects Significant progress made on Value Creation Plan, including divestitures and savings Confident FY25 outlook with healthy revenue growth
Slide 20: Fiscal 2026 Targets On Track
Fiscal 2026 Targets On Track Metric FY26 Target Low-to-mid single Objectives beyond Fiscal 2026 Adjusted Revenue digit growth ▪ Consistent revenue growth at or above our markets ▪ Continued margin expansion from greater publishing scale and delivery, Adjusted EBITDA margin 24-25% leaner processes an
Slide 21: Thank you for joining us
Thank you for joining us IR website at https://investors.wiley.com/ Contact: Brian Campbell brian.campbell@wiley.com +1 (201) 748-6874 21 Q424 Earnings Presentation .pptx
Slide 22: Appendix – US GAAP to Non-GAAP EPS Reconciliation
Appendix – US GAAP to Non-GAAP EPS Reconciliation JOHN WILEY & SONS, INC. (1) (2) SUPPLEMENTARY INFORMATION RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES (unaudited) Reconciliation of US GAAP Earnings (Loss) per Share to Non-GAAP Adjusted EPS Three Months Ended Year Ended April 30, April 3
Slide 23: Appendix – US GAAP to Non-GAAP EPS Notes
Appendix – US GAAP to Non-GAAP EPS Notes 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 inve
Slide 24: Appendix – Net Income to Adjusted EBITDA
Appendix – Net Income to Adjusted EBITDA JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US GAAP NET INCOME (LOSS) TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Year Ended April 30, April 30, 2024 2023 2024 2023 Net Income (Loss) $ 25,265 $ 68,344 $ (2