John Wiley & Sons, Inc. · NYSE:WLY
John Wiley & Sons — Q2 2024 Earnings Presentation
19 slides from John Wiley & Sons's earnings presentation, Dec 6, 2023
Slide 1: Second Quarter Fiscal 2024 Earnings Review
Second Quarter Fiscal 2024 Earnings Review December 6, 2023
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, management provides the following non-GAAP Company's operations, performance, and financial condition. Reliance should performance measures: not be placed on for
Slide 3: The Knowledge Company
The Knowledge Company Wiley enables the creation of new knowledge and its application in science, learning, and innovation
Slide 4: Relentless focus on execution and improvement
First 60 Days Relentless focus on execution and improvement Moving decisively on our Fiscal 2024-26 value creation plan to focus on our competitively advantaged core and drive material performance and profit improvement Executed on multiple actions this quarter to right size cost structure, streamli
Slide 5: Becoming a stronger, leaner, and more profitable Wiley
Becoming a stronger, leaner, and more profitable Wiley Full Year 2023* Research Learning Businesses Publishing and Solutions Publishing and Solutions Reporting Lines Research Publishing and Solutions Academic and Professional Key Verticals Science, Technical, Medical, Scholarly Business, Technology,
Slide 6: Fiscal 2024-26 Value Creation Plan (VCP)
Fiscal 2024-26 Value Creation Plan (VCP) Plans Recent Progress Focus on Wiley’s strongest and — Reorganized from three disparate segments under 3 business heads to one most profitable businesses market-facing Research & Learning team under one leader — Consolidated marketing functions to better leve
Slide 7: Second Quarter Performance
Second Quarter Performance GAAP Revenue Adj. Revenue* GAAP EPS Adj. EPS* Adj. EBITDA* ▼4% ▼2% ▼$1.03 ▼25% ▼13% $493M $407M ($0.35) $0.73 $92M *Adjusted Revenue, Adjusted EPS, and Adjusted EBITDA performance excludes businesses held for sale or sold. Collectively, these businesses generated $86 milli
Slide 8: Research Publishing Update
Research Publishing Update ▪ Demand to publish healthy with core article submissions +9%* and leading indicators of research output strong, such as global R&D funding ▪ Article output* returning to growth as submissions begin to move through peer review and into our journals. 1% growth in article vo
Slide 9: Segment Performance, Cost Savings, Financial Position, Outlook
Segment Performance Cost Savings Financial Position Outlook
Slide 10: Research
Research (millions) Q2 2024 Change Change CC Research Publishing $220 (6%) (7%) Research Solutions $38 (2%) (3%) Total Revenue $258 (5%) (7%) Adjusted EBITDA $82 (17%) Adjusted EBITDA Margin 31.6% ▪ Research Publishing decline mainly due to the Hindawi publishing disruption (-$18M); Research Solutio
Slide 11: Learning
Learning (millions) Q2 2024 Change Change CC Academic $89 8% 8% Professional $60 4% 3% Total Revenue $149 7% 6% Adjusted EBITDA $54 13% Adjusted EBITDA Margin 36.2% ▪ Academic growth due to growth in digital content and courseware and institutional models; Fall US undergrad enrollment increased for
Slide 12: Cost Savings and Optimization
Cost Savings and Optimization Plans Recent Developments Rightsizing cost base - driving toward — Q2 restructuring expected to yield $65M of run rate savings, a leaner and more agile workforce $30M in-year — Approx. 5% of global workforce impacted by restructuring, mainly in corporate and due to busi
Slide 13: Financial Position and Capital Allocation
Financial Position and Capital Allocation Free Cash Flow: Use of $132M vs. $126M in prior year. Variance due to lower cash earnings partially offset by lower incentive compensation payments for prior year underperformance. FCF includes Held for Sale or Sold assets $61M $56M Capex: $48M in 1H ‘24 vs.
Slide 14: Fiscal 2024 Outlook Reaffirmed
Fiscal 2024 Outlook Reaffirmed Fiscal 2023 Fiscal 2024 Outlook Metric (Millions, except EPS) ex-divestitures^ ex-divestitures Total Adjusted Revenue* $1,627 $1,580 to $1,630 Flat to low-single digit decline Research $1,080 +2% ex-Hindawi Learning $547 Flat to low-single digit increase Total Adjusted
Slide 15: Executive Summary: On our way to a stronger, more profitable Wiley
Executive Summary: On our way to a stronger, more profitable Wiley 1H performance largely in line with overall expectations; full year 1 guidance reaffirmed overall Relentlessly focused on execution and moving decisively on our value 2 creation plans, operational improvements, reorg, and culture Fis
Slide 16: Thank you for joining us
Thank you for joining us Wiley Investor Update – Thursday January 25 IR website at https://investors.wiley.com/ Contact: brian.campbell@wiley.com Direct +1 (201) 748-6874 16 Q124 Earnings Presentation.pptx
Slide 17: 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 EPS to Non-GAAP Adjusted EPS Three Months Ended Six Months Ended October 31, October 31, 2023 2022
Slide 18: 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 19: 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) INCOME TO NON-GAAP EBITDA AND ADJUSTED EBITDA (unaudited) Three Months Ended Six Months Ended October 31, October 31, 2023 2022 2023 2022 Net (Loss) Income $ (19,445) $