Financial Performance - Consolidated revenue for the three months ended July 31, 2024, was $403.8 million, a decrease of 10% compared to the prior year[129] - Adjusted revenue, excluding the Held for Sale or Sold segment, increased by 6% on a constant currency basis to $389.6 million[130] - Operating income for the same period was $29.0 million, compared to an operating loss of $16.4 million in the prior year[139] - Adjusted EBITDA increased by 22% on a constant currency basis to $72.6 million[140] - Cost of sales decreased by 30% to $109.2 million, primarily due to the sale of non-core businesses[132] - Operating and administrative expenses decreased by 3% to $248.8 million, reflecting lower employee-related costs[133] - The company recorded a goodwill impairment of $26.7 million in the prior year, impacting financial results[134] - The Global Restructuring Program is expected to yield annualized cost savings of approximately $75 million, with $70 million realized in the current fiscal year[136] - Interest expense increased to $12.8 million from $11.3 million in the prior year due to a higher effective interest rate[143] - US GAAP Income (Loss) Before Taxes for the three months ended July 31, 2024 was $23.0 million, compared to a loss of $106.7 million for the same period in 2023[153] - The Non-GAAP Adjusted Effective Tax Rate was 23.6% for the three months ended July 31, 2024, slightly down from 23.8% for the same period in 2023[157] - Diluted loss per share improved to $(0.03) for the three months ended July 31, 2024, compared to $(1.67) for the same period in 2023[158] Revenue Breakdown - Research revenue increased by $7.5 million, or 3%, for the three months ended July 31, 2024, driven by growth in Research Publishing[161] - Total Learning Revenue increased by $15.0 million, or 14%, compared to the prior year, driven by a $21 million content rights project for training GenAI models[165] - Revenue for Held for Sale or Sold decreased by $69.7 million, or 83%, due to the sale of University Services and Wiley Edge businesses[169] Cash Flow and Debt - As of July 31, 2024, the company had cash and cash equivalents of $89.4 million, including $6.8 million classified as held-for-sale[174] - The company had approximately $918.6 million of debt outstanding as of July 31, 2024, with $388.1 million of unused borrowing capacity[176] - Free cash flow less product development spending was $(106.6) million for the three months ended July 31, 2024, compared to $(106.2) million in the prior year[179] - Net cash used in operating activities was $(88.7) million for the three months ended July 31, 2024, compared to $(82.3) million in the prior year[178] - Net cash used in investing activities decreased to $23.8 million for the three months ended July 31, 2024, from $25.7 million in the prior year[185] - Net cash provided by financing activities decreased to $101.6 million for the three months ended July 31, 2024, from $105.8 million in the prior year, primarily due to a $2.5 million increase in cash used for share repurchases and a $1.7 million decrease in net borrowings[186] Impairments and Losses - The company recorded pretax gains (losses) on sale of businesses and impairment charges related to assets held-for-sale totaling $5.8 million for the three months ended July 31, 2024, compared to a loss of $75.9 million for the same period in 2023[147] - The pretax loss on the sale of Wiley Edge was $19.6 million, with cumulative impairment charges of $19.4 million recognized in the year ended April 30, 2024[148] - The pretax loss on the sale of University Services was $105.6 million, reduced by $1.5 million due to working capital adjustments in the first quarter of fiscal year 2025[149] - As of July 31, 2024, the total impairment charge for CrossKnowledge was $51.0 million, including a reduction of $4.4 million in the three months ended July 31, 2024[150] Shareholder Returns - Quarterly dividend increased to $1.41 per share annualized compared to $1.40 per share in the prior year[186] - Class A shares repurchased totaled 295,000 at an average price of $42.34, down from 301,000 shares at an average price of $33.25 in the prior year[186] Other Financial Metrics - Negative working capital was $296.0 million as of July 31, 2024, a decrease of $123.2 million from April 30, 2024, primarily due to seasonality[183] - Foreign exchange transaction losses amounted to $1.6 million for the three months ended July 31, 2023, primarily due to changes in average foreign exchange rates compared to the US dollar[145] - Foreign currency translation gains were approximately $15.0 million for the three months ended July 31, 2024, compared to $11.2 million in the prior year, primarily due to fluctuations in the US dollar relative to the British pound sterling[191] - A hypothetical one percent change in interest rates for the $419.1 million of unhedged variable rate debt would affect net income and cash flow by approximately $3.2 million[189] - Estimated sales return reserves could affect net income by approximately $0.6 million with a one percent change in the estimated sales return rate[194] - Subscription agents account for approximately 16% of total annual consolidated revenue, with no single group exceeding 10%[195] - No single book customer accounts for more than 7% of total consolidated revenue, while the top 10 book customers account for approximately 10% of total consolidated revenue[196] - Increase in inventories was $7,578,000 as of July 31, 2024, down from $7,833,000 in April 2024[194] - Print book sales return reserve net liability balance decreased to $13,480,000 from $14,448,000 in the previous period[194]

Financial Data and Key Metrics Changes - Adjusted revenue increased by 6% to $390 million, driven by 3% growth in research and 14% growth in learning, with a notable $17 million contribution from a content rights project [12][27] - Adjusted EBITDA rose 22% to $73 million, with an adjusted EBITDA margin of 18.6%, up from 16.3% [12][30] - Adjusted EPS increased by 74% due to higher adjusted operating income and accrued interest income from divestitures [12][30] Business Line Data and Key Metrics Changes - Research segment experienced a 3% revenue growth, with a strong recovery in submissions and output, reflecting a healthy demand environment [24][15] - Learning segment revenue rose 14%, primarily due to the GenAI project, while excluding this project, revenue declined by 1% [27][28] - Adjusted EBITDA for research increased by 1%, with a margin of 29.3%, compared to 29.8% in the prior year [26][30] Market Data and Key Metrics Changes - Global R&D spend increased by approximately 8% since 2022, reaching an estimated $2.53 trillion, expected to grow at 4% to 6% annually [15] - Healthy growth patterns returned in the U.S., EMEA, and Japan, with strong demand in high-growth markets like China and India [15][16] Company Strategy and Development Direction - The company is focused on executing its value creation plan, which includes driving growth in research and learning, optimizing content for AI, and modernizing systems [21][23] - The strategy includes leveraging AI growth opportunities and enhancing operational efficiencies across the organization [5][11] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery in research and the overall demand trends, emphasizing the importance of colleague engagement and execution [34][35] - The company reaffirmed its full-year guidance, projecting revenue of $1.65 billion to $1.69 billion, with adjusted EBITDA expected to be in the range of $385 million to $410 million [30][31] Other Important Information - The company completed its final divestiture, allowing it to focus on core operations and actioned the remaining $40 million of a $130 million cost savings program [21][22] - The company raised its dividend for the 31st consecutive year and increased share repurchases [9][12] Q&A Session Summary Question: Momentum in article submissions and potential organic growth in research revenue - Management noted that while there is a healthy pipeline of submissions, not all will convert to published articles, but they are optimistic about the long-term trajectory of submissions and published articles [38][40] Question: Further licensing agreements related to AI - Management confirmed ongoing discussions regarding additional licensing agreements and emphasized the quality of their content as attractive to AI model builders [42][43] Question: Expense management and profitability expectations - Management acknowledged some timing issues affecting expenses in Q1 but reaffirmed guidance for the rest of the year, indicating that normalization is expected [45][46]

Core Viewpoint - John Wiley & Sons reported mixed earnings for fiscal Q1 2025, with better-than-expected sales but disappointing earnings, leading to a significant drop in stock price [1][2]. Financial Performance - Analysts had forecasted adjusted earnings of $0.55 per share on sales of $387.4 million, but Wiley reported sales of $403.8 million and earnings of $0.47 per share [2]. - The reported profit of $0.47 was a non-GAAP figure; under GAAP, Wiley actually incurred a loss of $0.03 per share, although this was an improvement from a loss of $1.67 per share in the previous year [3]. - Overall sales declined by 10.5%, with the smallest division shrinking and the largest division only achieving 3% growth [4]. Business Segments - The research publications division experienced a solid 3% growth, while the academic courseware segment benefited from a 14% sales increase driven by generative artificial intelligence [3]. - The professional learning division, however, faced challenges, resulting in a 1% decline in sales [3]. Future Outlook - Wiley forecasts approximately 3% total sales growth for fiscal 2025, with both divisions expected to grow in the low single digits and research potentially growing in the mid-single digits [5]. - Adjusted earnings are projected to grow by about 23% to approximately $3.42 per share, exceeding Wall Street's expectations, and free cash flow is anticipated to increase by about 10% to $125 million [5]. Valuation Concerns - Despite the positive guidance, Wiley's stock is trading at a price-to-free cash flow ratio of nearly 19, which is considered expensive given the company's single-digit growth and significant net debt exceeding $800 million [6].

Revenue Performance - Revenue for Q1 2025 was $404 million, a decrease of 10% year-over-year, while adjusted revenue at constant currency was $390 million, an increase of 6%[2] - Total net revenue for the three months ended July 31, 2024, was $403,809,000, a decrease of 10% compared to $451,013,000 for the same period in 2023[30] - Adjusted revenue, net, excluding the held-for-sale segment, increased by 6% to $389,623,000 from $367,124,000 year-over-year[30] Segment Performance - Research segment revenue increased by 3% to $265 million, driven by growth in open access and institutional licensing models[3] - Learning segment revenue rose by 14% to $124 million, with a $16 million contribution from a GenAI content rights project[4] - The Learning segment's total net revenue increased by 14% to $124,314,000, driven by a 24% increase in Academic revenue[30] - Non-GAAP adjusted EBITDA for the Learning segment surged by 60% to $33,794,000 compared to $21,178,000 in the previous year[30] Earnings and Profitability - Adjusted EBITDA for Q1 2025 was $73 million, up 22% year-over-year, with an adjusted EBITDA margin of 18.7%[2] - Adjusted EPS for Q1 2025 was $0.47, reflecting a 74% increase at constant currency compared to the prior year[7] - Non-GAAP Adjusted Earnings Per Share (EPS) for the three months ended July 31, 2024, was $0.47, compared to $0.27 in the same period of 2023[20] - The company reported a Non-GAAP Adjusted EBITDA of $72.615 million for the three months ended July 31, 2024, with an adjusted EBITDA margin of 18.6%, up from 16.3% in the same period of 2023[28] Financial Outlook - The company reaffirmed its Fiscal 2025 revenue outlook of $1.65 billion to $1.69 billion, with expected adjusted EBITDA of $385 million to $410 million[10] - Capital expenditures for Fiscal 2025 are projected to be $130 million, up from $93 million in Fiscal 2024, to support research publishing platform work and infrastructure modernization[9] Debt and Cash Management - The net debt-to-EBITDA ratio at the end of the quarter was 2.0, compared to 1.9 in the previous year[8] - The company allocated $32 million towards dividends and share repurchases, an increase from $29 million in the prior year[8] - Cash and cash equivalents at the end of the period were $89,411,000, down from $107,256,000 at the end of the previous year[35] - Net cash used in operating activities for the three months ended July 31, 2024, was $(88,712) thousand, compared to $(82,335) thousand for the same period in 2023[36] Impairments and Losses - The company recorded a pretax noncash goodwill impairment of $26.7 million in fiscal year 2024, including $11.4 million for University Services and $15.3 million for CrossKnowledge[18] - The company recorded a pretax impairment of $51,000,000 related to CrossKnowledge, impacting the held-for-sale segment[33] - The US GAAP net loss for the three months ended July 31, 2024, was $1.436 million, a significant improvement from a net loss of $92.264 million in the same period of 2023[28] - The company completed the sale of Wiley Edge on May 31, 2024, resulting in a pretax loss of $19.6 million[25] - The company recorded a total pretax loss of $105.6 million on the sale of University Services in the three months ended July 31, 2024[25] Non-GAAP Measures - The company emphasizes the use of non-GAAP performance measures such as Adjusted EPS and Free Cash Flow less Product Development Spending for evaluating operational performance[37] - Adjusted Operating Income and Adjusted EBITDA are key metrics used to assess the performance of reportable segments, providing insights into operational trends[39] - Non-GAAP performance measures are regarded as useful by investors for analyzing operating margins and net income, despite not being standardized under US GAAP[41] - The company has not provided a 2025 outlook for the most directly comparable US GAAP financial measures due to high variability and complexity[41] - Non-GAAP financial metrics should not be viewed as alternatives to US GAAP measures and may not be comparable with similar measures used by other companies[42]

Revenue Breakdown - Research revenue accounted for approximately 56% of consolidated revenue for the year ended April 30, 2024, with a 31.8% Adjusted EBITDA margin[5]. - Approximately 96% of Research revenue is generated by digital and online products and services for fiscal year 2024[5]. - Learning segment accounted for approximately 31% of consolidated revenue for the year ended April 30, 2024, with a 34.9% Adjusted EBITDA margin[13]. - Approximately 59% of Learning revenue is derived from digital and online products and services for fiscal year 2024[13]. Company Performance - The company recorded a net loss of $200.319 million for the year ended April 30, 2024, compared to a net income of $17.233 million in 2023[979]. - Total revenue for 2024 was $1,872,987, a decrease of 7.3% from $2,019,900 in 2023[6]. - Net loss for 2024 was $200,319, compared to a net income of $17,233 in 2023, representing a significant decline[6]. - Operating income for 2024 was $52,261, down from $55,890 in 2023, indicating a decrease of 11.8%[6]. - Comprehensive loss, net of tax for the year ending April 30, 2024, was $(199,856,000), compared to a comprehensive income of $130,953,000 in 2022[985]. Financial Position - Total current assets decreased to $454,042 in April 2024 from $541,279 in April 2023, a decline of 16.1%[4]. - Total assets decreased to $2,725,495 in April 2024 from $3,108,810 in April 2023, a reduction of 12.3%[4]. - Total liabilities decreased to $1,985,779 in April 2024 from $2,063,783 in April 2023, a decrease of 3.8%[4]. - Cash and cash equivalents decreased to $83,249 in April 2024 from $106,714 in April 2023, a decline of 22.0%[4]. - Accounts receivable decreased to $224,198 in April 2024 from $310,121 in April 2023, a decrease of 27.7%[4]. Stock and Dividends - Class A common stock dividends for the year ending April 30, 2024, were $1.40 per share, totaling $(64,584,000)[985]. - Class B common stock dividends for the year ending April 30, 2024, were $1.40 per share, totaling $(12,622,000)[985]. - Stock-based compensation expense for the year ending April 30, 2024, was $24,996,000, a decrease from $26,703,000 in 2022[985]. Restructuring and Divestitures - The company completed the sale of University Services on January 1, 2024, which previously provided education technology and support services[23]. - The company plans to divest non-core businesses, including University Services and Wiley Edge, with expected completion dates in 2024 and 2025[1017]. - The Company is reducing real estate square footage occupancy by approximately 13% as part of its Global Restructuring Program[1096]. - Total restructuring and related charges for the year ended April 30, 2024, amounted to $61.6 million, compared to $48.9 million for the previous year[1097]. Environmental Sustainability - The company is committed to environmental sustainability, focusing on reducing greenhouse gas emissions and enhancing environmental stewardship[29]. - The company is focused on sustainable publishing practices and aims to reduce print production and consumption through digital adoption and print-on-demand models[55]. - The company’s environmental strategy includes optimizing resource use and engaging suppliers to meet high sustainability standards[55]. Impairments and Losses - The company reported an impairment of goodwill of $108,449 in 2024, compared to $99,800 in 2023[6]. - The impairment of goodwill amounted to $108.4 million, while losses on the sale of businesses and certain assets totaled $183.4 million[1011]. Future Projections - The total revenue forecast for fiscal year 2025 is projected at $29.734 billion, with $15.887 billion from the US and $13.847 billion from non-US sources[1063]. - As of April 30, 2024, the aggregate transaction price allocated to remaining performance obligations is approximately $498.6 million, with $458.4 million expected to be recognized in the next twelve months[1082].

Financial Data and Key Metrics Changes - Adjusted revenue increased by 4% to $441 million in Q4, driven by growth in Learning and the GenAI content rights project [29] - Adjusted EBITDA rose by 7% to $125 million, with a Q4 adjusted EBITDA margin of 28.3% [29][15] - Full-year adjusted revenue declined modestly to $1.617 billion, with adjusted EBITDA down 3% to $369 million [31] - Adjusted EPS decreased by 19% due to lower operating income and higher interest and tax expenses [31] - Free cash flow was $114 million, down from $173 million in the prior year [31][64] Business Line Data and Key Metrics Changes - Research revenue decreased by 3% due to timing and lower ancillary print and licensing revenue [52] - Learning revenue rose by 22% in Q4, driven by strong growth in digital content and courseware [54] - Adjusted EBITDA in Learning for the quarter increased by 54%, with a Q4 adjusted EBITDA margin of 43.5% [55] Market Data and Key Metrics Changes - Article submissions growth in Research rose to 15% on a trailing 12-month basis, with strong performance in China and India [32][74] - US undergrad enrollment increased by 1.2% in the fall and 2.5% in the spring, indicating a positive trend in the higher education market [54] Company Strategy and Development Direction - The company is focused on executing its value creation plan, which includes divestitures and cost savings [11][68] - Investments are being made in GenAI growth and productivity initiatives, including optimizing content for LLM deployment [47] - The company aims to modernize its systems to improve speed, decision-making, and productivity [48] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's direction and momentum heading into fiscal '25, with expectations for revenue growth and margin expansion [68] - The company anticipates full-year revenue of $1.65 billion to $1.69 billion for fiscal '25, driven by low- to mid-single digit growth in Research and low-single digit growth in Learning [58] Other Important Information - The company has executed two significant GenAI content rights projects, with a $23 million deal recognized in fiscal '24 and a $21 million deal expected in fiscal '25 [20][58] - The company has accelerated its cost-saving program, achieving $60 million in savings against an initial target of $30 million [16][44] Q&A Session Summary Question: Momentum in Research article submissions - Management noted a 15% growth in article submissions, with strong performance in China and India, and a rebound in mature markets like the US and Europe [72][74] Question: AI tools and processes post-Hindawi - Management discussed the deployment of AI tools to enhance research integrity and the proactive measures taken to prevent future issues [75][76] Question: Future AI licensing opportunities - Management indicated that they are at the beginning of a wave of AI opportunities, with significant interest from tech companies, and are cautious in structuring deals to protect future rights [80][81] Question: Cost savings and reinvestment - Management confirmed that approximately $40 million of the remaining $130 million cost savings will be realized in fiscal '25, with a focus on corporate optimization and technology reductions [86] Question: Capital allocation and share buybacks - Management stated that they will continue to respond to capital deployment opportunities and have increased share repurchases, with plans to monitor stock price volatility [93]

Wiley Reports Fourth Quarter and Fiscal Year 2024 Results Exceeds FY24 earnings guidance and reports confident FY25 outlook and GenAI momentum June 13, 2024 - Hoboken, NJ – Wiley (NYSE: WLY) today reported results for the fourth quarter and fiscal year ended April 30, 2024. HIGHLIGHTS MANAGEMENT COMMENTARY "We finished the year strong and head into Fiscal 2025 with full confidence in our Research trajectory, GenAI momentum, and profit and performance outlook," said Matthew Kissner, Interim President and CEO ...

WILEY Fourth Quarter and Fiscal 2024 Earnings Review June 13, 2024 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 statements. Any such forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_____ to _____ Commission File No. 001-11507 JOHN WILEY & SONS, INC. (Exact name of Registrant as specified in its charter) | New York | 13-5593032 | | --- | --- | | (S ...

WILEY Third Quarter Fiscal 2024 Earnings Review March 7, 2024 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 statements. Any such forward- looking statements are based upon many assumptions and estimates that are inherently subject to uncertainties and contingencie ...