John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q1 2025 Earnings Presentation
20 slides from John Wiley & Sons's earnings presentation, Sep 5, 2024
Slide 1: First Quarter Fiscal 2025 Earnings Review
First Quarter Fiscal 2025 Earnings Review September 5, 2024
Slide 2: Safe Harbor Statement and Non-GAAP Measures
SAFE HARBOR STATEMENT NON-GAAP MEASURES This release contains certain forward-looking statements concerning the Company's In this presentation, Wiley provides the following non-GAAP performance operations, performance, and financial condition. Reliance should not be placed on measures: forward-looki
Slide 3: The Knowledge Company
The Knowledge Company Wiley enables the creation of knowledge and its application in science, learning, innovation, and other critical areas of the knowledge economy 3
Slide 4: Wiley Today
Wiley Today Full Year 2024* RESEARCH LEARNING Business Focus Publishing and Knowledge Solutions Publishing and Knowledge Solutions Reporting Lines Research Publishing & Research Solutions Academic & Professional Knowledge Verticals Science, Technical, Medical, Scholarly Business, Technology, Science
Slide 5: Executive Summary
Executive Summary Delivered strong year-over-year financial performance driven by solid growth in Research Publishing, AI- related demand for Learning content, and continued execution of the Value Creation Plan Executed second GenAI rights project; interest continuing from other AI providers Closed
Slide 6: Executing on our Fiscal 2025 Objectives
Executing on our Fiscal 2025 Objectives OBJECTIVE Q1 STATUS Q1 PROGRESS • Delivered 4% growth in Research Publishing fueled by strong Drive recovery and growth in execution and favorable demand trends Research • Delivered growth across key areas, including gold open access and multi-year institution
Slide 7: First Quarter Performance
First Quarter Performance GAAP Revenue Adj. Revenue* GAAP EPS Adj. EPS* Adj. EBITDA* ▼10% ▲6% ▲$1.64 ▲74% ▲22% $404M $390M ($0.03) $0.47 $73M *Adjusted Revenue, Adjusted EPS, and Adjusted EBITDA performance excludes businesses held for sale or sold. Adjusted numbers exclude impact of foreign exchang
Slide 8: Research Growth Trends and Execution
Research Growth Trends and Execution Global R&D Spend Article Submissions Article Output +8% +18% +6% Key macro indicator and driver of Key demand indicator signaling Key revenue driver, important for both research publishing output robustness of research institutional licenses and Gold OA ecosystem
Slide 9: AI Leadership
AI Leadership Wiley Licensing Principles AI Growth: IP Licensing 1. Content licensing is not a new or AI-specific activity for us – it is Stage 1 core to our mission Leverage Wiley’s broad, high-quality 2. We have a responsibility to engage with AI developers catalog to train GenAI models 3. Quali
Slide 10: VCP and Reinvestment, Segment Performance, Outlook
VCP and Reinvestment Segment Performance Outlook
Slide 11: Value Creation Plan and Reinvestment
Value Creation Plan and Reinvestment Plans Q1 Progress • Closed third and final divestiture, CrossKnowledge Divest non-core assets • Rolled off TSA for Wiley Edge and divested India operation • Actioned remaining $40M of $130M VCP run rate savings program • $60M of incremental savings benefit to be
Slide 12: Research Performance
Research Performance (millions) Q1 2025 Change Change CC Research Publishing $231 4% 4% Research Solutions $34 (1%) (1%) Total Revenue $265 3% 3% Adjusted EBITDA $78 1% 1% Adjusted EBITDA Margin 29.3% ▪ Research Publishing delivering robust submission and output growth, strong gold open access perfo
Slide 13: Learning Performance
Learning Performance (millions) Q1 2025 Change Change CC Academic $60 24% 24% Professional $64 5% 5% Total Revenue $124 14% 14% Adjusted EBITDA $34 60% 60% Adjusted EBITDA Margin 27.2% ▪ Revenue growth (+14%) driven mainly by GenAI project and digital courseware growth in Academic Q1 ▪ Excluding the
Slide 14: Reaffirming Fiscal 2025 Guidance
Reaffirming Fiscal 2025 Guidance Metric Fiscal 2024 Results Fiscal 2025 Outlook • Adjusted Revenue – expected growth (Millions, except EPS) driven by favorable demand trends and strong performance indicators • Adjusted EBITDA – expected margin Adjusted Revenue* $1,617 $1,650 to $1,690 expansion driv
Slide 15: Strong Financial Position and Capital Allocation
Strong Financial Position and Capital Allocation • Free Cash Flow use of $107 million vs. $106 million in prior year. FCF historically a use through 1H due to timing of annual journal subscription receipts. Dividends and Repurchases ▪ Capex of $18M vs. $24M in prior year period. Wiley expects to ram
Slide 16: Summary
Summary
Slide 17: Key Takeaways
Key Takeaways Delivered strong year-over-year financial performance driven by solid growth in Research Publishing, AI- related demand for Learning content, and continued execution of the Value Creation Plan Executed second GenAI rights project; interest continuing from other AI providers Closed thir
Slide 18: Thank you for joining us
Thank you for joining us Investor website at https://investors.wiley.com/ Contact: Brian Campbell brian.campbell@wiley.com +1 (201) 748-6874
Slide 19: Appendix – US GAAP to Non-GAAP EPS Reconciliation
Appendix – US GAAP to Non-GAAP EPS Reconciliation JOHN WILEY & SONS, INC. (1) See Explanation of Usage of Non-GAAP Performance Measures included in this supplementary information for additional details on the reasons why SUPPLEMENTARY INFORMATION (1) (2) RECONCILIATION OF US GAAP MEASURES to NON-GAA
Slide 20: Appendix – Net Income to Adjusted EBITDA
Appendix – Net Income to Adjusted EBITDA JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US GAAP NET LOSS TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended July 31, 2024 2023 Net Loss $ (1,436) $ (92,264) Interest expense 12,787 11,334 Provision (benefit)