John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q2 2023 Earnings Presentation
21 slides from John Wiley & Sons's earnings presentation, Dec 7, 2022
Slide 1: Second Quarter Fiscal 2023 Earnings Review
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES Second Quarter Fiscal 2023 Earnings Review December 7, 2022
Slide 2: Safe Harbor Statement and Non-GAAP Measures
SAFE HARBOR STATEMENT NON-GAAP MEASURES This presentation contains certain forward-looking statements In this presentation, management provides the following non-GAAP concerning the Company's operations, performance, and financial performance measures: condition. Reliance should not be placed on for
Slide 3: Wiley unlocks human potential by powering scientific research and career-connected education
Wiley unlocks human potential by powering scientific research and career-connected education
Slide 4: Second Quarter Takeaways
Second Quarter Takeaways Growth in core areas of Research Publishing, Research Solutions, and Corporate Talent Development offset declines in our consumer-facing and enrollment-dependent businesses Earnings decline due to revenue performance in APL and planned investments to scale Research Publishin
Slide 5: Second Quarter Performance
Second Quarter Performance Revenue* GAAP EPS** Adj. EPS Adj. EBITDA +1% -31% -13% -4% $515M $0.68 $1.20 $124M All variances at constant currency except GAAP EPS *Q2 organic revenue at CC (0.5%) **GAAP EPS mainly due to $0.19/share restructuring charge ▪ Revenue growth from open research, corporate t
Slide 6: Research Commitments
Research Commitments FY23 Commitment Q2 Progress Drive publishing growth Grew article submissions by 6% and overall publishing output by 1%; OA output to meet global demand growth up by double-digits Extend transformational Renewed landmark countrywide agreement with Germany, which includes 900 agre
Slide 7: Education Commitments
Education Commitments FY23 Commitment Q2 Progress Expand corporate client base Signed six multinational clients across verticals - tech, healthcare, financial services, for talent development and consumer staples; strong pipeline ahead Drive university partnerships Signed four university services pa
Slide 8: Growth strategies driving global impact
Growth strategies driving global impact Growth that Drives Good ESG Progress ▪ Open research increasing speed, accessibility, and ▪ Wiley commits to net zero by 2040 through Science impact of knowledge for underrepresented and at Based Targets initiative; 100+ Wiley journals relate to risk-populatio
Slide 9: Segment Review, Financial Position, Outlook
Segment Review Financial Position Outlook
Slide 10: Research
Research (millions) Q2 2023 Change Change CC Research Publishing $233 (3%) 2% Research Solutions** $39 7% 11% TOTAL REVENUE* $271 (1%) 3% ADJUSTED EBITDA $98 (4%) ADJ. EBITDA MARGIN 36% ▪ Research Publishing - growth driven by continued momentum in open research ▪ Research Solutions** – increase dri
Slide 11: Academic & Professional Learning
Academic & Professional Learning (millions) Q2 2023 Change Change CC Education Publishing $86 (13%) (10%) Professional Learning $66 (15%) (11%) TOTAL REVENUE $153 (14%) (10%) ADJUSTED EBITDA $50 (12%) ADJ. EBITDA MARGIN 33% ▪ Education Publishing – decline in print course material more than offset g
Slide 12: Education Services
Education Services (millions) Q2 2023 Change Change CC University Services $58 (1%) (1%) Talent Development $33 46% 61% TOTAL REVENUE* $91 12% 17% ADJUSTED EBITDA $16 69% ADJ. EBITDA MARGIN 17% ▪ University Services – performance due to enrollment challenges and lower revenue share ▪ Talent Developm
Slide 13: Driving Cost Savings and Efficiency Gains
Driving Cost Savings and Efficiency Gains Focus Area Recent Activity • $36M in YTD restructuring charges Restructuring • $50M in expected run rate savings; $29M in Fiscal 2023 • Office space reduced by 4% in Q2 for a total of 32% reduced since Real Estate Optimization spring 2020, up from 18% at yea
Slide 14: Financial Position and Capital Allocation
Financial Position and Capital Allocation Free Cash Flow: YTD use of $126M (on par with 1H’22). FCF historically a use through 1H due to timing of annual journal subscription receipts $56M $56M Capacity: Revolving credit agreement amended for five-year credit commitments of $1.315 billion, extended
Slide 15: Fiscal 2023 Outlook
Fiscal 2023 Outlook Metric FY22 Actual* FY23 Outlook* FY23 Outlook* FY23 Outlook* (Millions, except EPS) Constant currency Constant currency Constant currency Original Update Current Revenue $2,083 $2,175 to $2,215 Reduced $2,110 to $2,150 Adjusted EBITDA $433 $425 to $450 Reaffirmed $425 to $450 Ad
Slide 16: Realigning Wiley Education
Realigning Wiley Education WILEY RESEARCH WILEY EDUCATION RESEARCH1 ACADEMIC2 TALENT3 Segments 53% of revenue ~37% of revenue ~10% of revenue Research Publishing Academic Publishing Lines None Research Solutions University Services Researchers, Universities, Learners Professionals Customers Societie
Slide 17: Summary
Summary Executing well on our Fiscal 2023 Research and Education commitments Results impacted by consumer spending and enrollment headwinds in APL and University Services Core growth areas of Research Publishing, Research Solutions, and Corporate Talent Development remain strong and opportunity-rich
Slide 18: Thank you for joining us
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES Thank you for joining us IR website at https://investors.wiley.com/ Contact us for follow-up at: brian.campbell@wiley.com Direct +1 (201) 748-6874
Slide 19: Appendix – US GAAP to Non-GAAP EPS
Appendix – US GAAP to Non-GAAP EPS JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) (2) RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES (unaudited) Reconciliation of US GAAP EPS to Non-GAAP Adjusted EPS See accompanying notes Three Months Ended Six Months Ended on following page October
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 JOHN WILEY & SONS, INC. SUPPLEMENTARY INFORMATION (1) RECONCILIATION OF US GAAP NET INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Six Months Ended October 31, October 31, 2022 2021 2022 2021 Net Income $ 38,193 $ 55,967 $ 20,358