John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q2 2021 Earnings Presentation
21 slides from John Wiley & Sons's earnings presentation, Dec 8, 2020
Slide 1: Second Quarter Fiscal 2021 Earnings Review
Second Quarter Fiscal 2021 Earnings Review December 8, 2020 • Brian Napack, President & CEO • John Kritzmacher, Executive Vice President & CFO
Slide 2: Safe Harbor Statement
Safe Harbor Statement This 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 statem
Slide 3: COVID-19 accelerating global demand for research and education
COVID-19 accelerating global demand for research and education Leading position in digital platforms, tech-enabled services and career-enhancing education Research Education Growth in R&D spending will be Pandemic driving demand for online learning, sustained in the post-pandemic world digital curri
Slide 4: Business Review
Driving the World Forward WI LEY with Research & Education Business Review
Slide 5: Consistent strategies paying off with strong performance
Consistent strategies paying off with strong performance Lead in Open Research; accelerate profitable growth in Ed Services; return Ed Publishing to growth Research Publishing and Platforms up 5%, reflecting record gains in open access and increasing profitability Education Services showing strong g
Slide 6: Second Quarter 2021 Summary
Second Quarter 2021 Summary Revenue GAAP EPS Adj. EPS Adj. EBITDA +4%* +54%** +12%* +7%* $491M $1.22 $1.00 $120M • Revenue performance driven by: ̶ Robust demand to publish peer-reviewed research and access it through our platforms ̶ Increasing uptake of digital content and courseware ̶ Growing stud
Slide 7: Research Publishing & Platforms
Research Publishing & Platforms Continued strong momentum in Open Access and Platforms • Publishing revenue +5% driven by open access performance – unprecedented growth Revenue in article submissions, output and usage +5% $251M • Platforms revenue +11% reflecting new client launches and 98% retentio
Slide 8: Research Publishing & Platforms – Rest of Year
Research Publishing & Platforms – Rest of Year Two objectives: successfully close calendar year ‘21 subscription renewals and capitalize on the continued strong demand to publish CY21 subscription pricing pressure modest thus far with approximately 20% of renewals signed; university libraries naviga
Slide 9: Academic & Professional Learning
Academic & Professional Learning Strong digital growth offset by COVID-related impact on print books, test prep, and in-person training • Fall student enrollment down 4% overall - better than anticipated Revenue -5% • Education Publishing accelerated growth in digital content and courseware more tha
Slide 10: Academic & Professional Learning – Rest of Year
Academic & Professional Learning – Rest of Year Rapid digital content and courseware growth to continue, showing the effectiveness of our strategies Print book declines to continue but impact on total business diminishing New business models and pricing initiatives generating momentum, in line with
Slide 11: Education Services
Education Services Profitable growth strategy yielding strong results; university interest accelerating • Education Services organic growth of 6% from strong enrollment and program Revenue launches, offset by lower sales of unbundled services +27% $69M • Two new full-service partners – La Trobe Univ
Slide 12: Education Services – Rest of Year
Education Services – Rest of Year Strong OPM enrollment growth to continue despite near-term enrollment uncertainty Solid pipeline of university partnerships and programs Key partners seeking online expansion opportunities Steady IT talent placements at mthree as corporations look to build out their
Slide 13: Financial Review
Financial Review John Kritzmacher, Executive Vice President & CFO
Slide 14: Cash Flow, Balance Sheet, and Returns to Shareholders
Cash Flow, Balance Sheet, and Returns to Shareholders Free Cash Flow • Free Cash Flow: higher by $32M due to improved earnings partially offset by unfavorable timing of working 1H20 1H21 Change capital. FCF historically a use in 1H due to timing of journal subscription collections ($156M) ($124M) +$
Slide 15: Business Optimization and Cost Measures
Business Optimization and Cost Measures Business Optimization • Research – publishing process optimization to accelerate growth (automated cascade) and reduce costs per article (faster cycle times, increased scale efficiencies) • Academic & Professional Learning – convergence and optimization of eco
Slide 16: Full Year Outlook
Full Year Outlook Increasing confidence in a challenging environment Metric FY20 FY21 Outlook* Revenue $1,831M $1,865M - $1,885M Research Publishing & Platforms Low-single digit growth Academic & Professional Learning Mid-single digit decline Education Services Double-digit growth** Adjusted EBITDA
Slide 17: Consistent strategies paying off with strong performance
Consistent strategies paying off with strong performance Lead in Open Research; accelerate profitable growth in Ed Services; return Ed Publishing to growth Research Publishing and Platforms up 5%, reflecting record gains in open access and increasing profitability Education Services showing strong g
Slide 18: Thank you for joining us
Thank you for joining us Earnings material and events calendar at https://www.wiley.com/en-us/investors Q3 2021 Earnings Call – March Contact us for follow-up at: brian.campbell@wiley.com +1(201) 748-6874 18
Slide 19: Appendix
APPENDIX WILEY
Slide 20: Reconciliation of Adjusted EPS
Reconciliation of Adjusted EPS O A 1 X JOHN WILEY & SONS, INC. (1) SUPPLEMENTARY INFORMATION RECONCILIATION OF GAAP EPS to NON-GAAP ADJUSTED EPS - DILUTED (unaudited) Three Months Ended Six Months Ended October 31, October 31, 2020 2019 2020 2019 GAAP Earnings Per Share - Diluted $ 1.22 $ 0.79 $ 1.5
Slide 21: Reconciliation of Adjusted EBITDA
Reconciliation of Adjusted EBITDA JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF GAAP NET INCOME to NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Six Months Ended October 31, October 31, 2020 2019 2020 2019 Net Income $ 68,432 $ 44,690 $ 84,766 $ 48,314