John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q3 2022 Earnings Presentation
19 slides from John Wiley & Sons's earnings presentation, Mar 8, 2022
Slide 1: Third Quarter Fiscal 2022 Earnings Review
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES Third Quarter Fiscal 2022 Earnings Review March 8, 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 discovery and learning
Wiley unlocks human potential by powering discovery and learning
Slide 4: Consistent strategies aligned with seismic trends
Consistent strategies aligned with seismic trends Cross the divide to Research Research lead the transition to Publishing Solutions open research Bridge the gap to Education Education connect education to Products Services career outcomes 4
Slide 5: Consistent strategies driving solid performance
Consistent strategies driving solid performance Revenue Adjusted EBITDA $ millions $ millions 6-7% CAGR 2,070 - 2,100 8-11% CAGR 1,942 415 - 435 419 1,831 356 FY20 FY21 FY22 Outlook FY20 FY21 FY22 Outlook 5 Q322 Earnings Presentation.pptx
Slide 6: Consistent strategies driving global impact
Consistent strategies driving global impact Growth Strategies Recent ESG that Drive Social Good Progress ▪ Open research increases speed, accessibility, ▪ Certified 2021 Carbon Neutral and 100% and impact of knowledge Renewable Energy; second consecutive year ▪ Career-connected education closes skil
Slide 7: Third Quarter 2022 Summary
Third Quarter 2022 Summary Revenue* GAAP EPS Adj. EPS Adj. EBITDA +7% +62% -9% -5% $516M $0.63 $0.95 $100M All variances at constant currency except GAAP EPS *Q3 organic revenue +4% ▪ Strong momentum in open research, research partner solutions, and corporate talent development driving solid revenue
Slide 8: Research Publishing & Platforms
Research Publishing & Platforms (millions) Q3 2022 Change Change CC Research Publishing $249 9% 9% Research Platforms $14 37% 37% TOTAL REVENUE* $263 10% 10% ADJUSTED EBITDA $86 5% 4% ADJ. EBITDA MARGIN 33% *Organic revenue +5% (excluding acquisition and currency impacts) ▪ Organic revenue growth dr
Slide 9: Academic & Professional Learning
Academic & Professional Learning (millions) Q3 2022 Change Change CC Education Publishing $95 (2%) (2%) Professional Learning $75 (1%) 0% TOTAL REVENUE $171 (2%) (1%) ADJUSTED EBITDA $52 3% 4% ADJ. EBITDA MARGIN 30% ▪ Education Publishing decline mainly from US enrollment declines and the easing of
Slide 10: Education Services
Education Services (millions) Q3 2022 Change Change CC University Services $55 (3%) (3%) Talent Development $27 111% 112% TOTAL REVENUE $82 18% 18% ADJUSTED EBITDA $11 (15%) (14%) ADJ. EBITDA MARGIN 13% ▪ Talent Development growth rapidly accelerating; signed five new corporate clients in different
Slide 11: Financial Position and Outlook
Financial Position and Outlook
Slide 12: Solid Performance Through Nine Months
Solid Performance Through Nine Months Revenue +8% Adjusted EPS +4% Adjusted EBITDA +4% $1,537 $3.09 $1,405 $2.86 $322 $306 YTD '21 YTD '22 YTD'21 YTD'22 YTD'21 YTD'22 Nine months revenue growth in line with expectations (+5% organic) • Research +10% (+4% organic) • Academic & Professional Learning +
Slide 13: Financial Position and Capital Allocation
Financial Position and Capital Allocation Cash Flow from Operations: $158M YTD vs. $155M prior year Free Cash Flow: $77M YTD vs. $80M prior year. Wiley FCF $83M outlook for Fiscal 2022 is between $200M and $220M $65M Leverage: Net Debt/EBITDA ratio of 1.9 TTM inclusive of acquisitions vs. 2.2 in the
Slide 14: Fiscal 2022 Outlook Reaffirmed
Fiscal 2022 Outlook Reaffirmed Metric (Millions, except EPS) Fiscal 2020 Fiscal 2021 Fiscal 2022 Outlook Revenue $1,831 $1,942 $2,070 to $2,100 Adjusted EBITDA $356 $419 $415 to $435 Adjusted EPS $3.30 $4.00 $4.00 to $4.25 Free Cash Flow $173 $257 $200 to $220 Revenue and Adjusted EPS trending towar
Slide 15: New Wiley Ticker Symbols
New Wiley Ticker Symbols Current Tickers New Tickers JW-A WLY JW-B WLYB Change expected on or around April 1 15 Q322 Earnings Presentation.pptx
Slide 16: Key Takeaways
Key Takeaways Well-established growth strategies and sharp execution driving solid YTD performance; Wiley on track to surpass $2B in annual revenue for first time ever Continued momentum in research publishing and solutions and corporate products and services offsetting counter-cyclical challenges i
Slide 17: Thanks for joining us.
ENABLING DISCOVERY | POWERING EDUCATION | SHAPING WORKFORCES Thanks for joining us. IR website at https://investors.wiley.com/ Q4 2022 Earnings Call – June 15, 2022 Contact us for follow-up at: brian.campbell@wiley.com
Slide 18: Appendix – Reconciliation of US GAAP to Non-GAAP EPS
Appendix – Reconciliation of US GAAP to Non-GAAP EPS JOHN WILEY & SONS, INC. (1)See Explanation of Usage of Non-GAAP Performance SUPPLEMENTARY INFORMATION (1) (2) Measures included in this supplementary information for RECONCILIATION OF US GAAP MEASURES to NON-GAAP MEASURES additional details on the
Slide 19: Appendix – Reconciliation of Net Income to Adjusted EBITDA
Appendix – Reconciliation of 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 Nine Months Ended January 31, January 31, 2022 2021 2022 2021 Net Income $ 35,36