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John Wiley & Sons(WLY) - 2025 Q1 - Quarterly Results
WLYJohn Wiley & Sons(WLY)2024-09-05 15:22

Revenue Performance - Revenue for Q1 2025 was 404million,adecreaseof10404 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,adecreaseof10403,809,000, 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 389,623,000from389,623,000 from 367,124,000 year-over-year[30] Segment Performance - Research segment revenue increased by 3% to 265million,drivenbygrowthinopenaccessandinstitutionallicensingmodels[3]−Learningsegmentrevenueroseby14265 million, driven by growth in open access and institutional licensing models[3] - Learning segment revenue rose by 14% to 124 million, with a 16millioncontributionfromaGenAIcontentrightsproject[4]−TheLearningsegment′stotalnetrevenueincreasedby1416 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 33,794,000comparedto33,794,000 compared to 21,178,000 in the previous year[30] Earnings and Profitability - Adjusted EBITDA for Q1 2025 was 73million,up2273 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,comparedto0.47, compared to 0.27 in the same period of 2023[20] - The company reported a Non-GAAP Adjusted EBITDA of 72.615millionforthethreemonthsendedJuly31,2024,withanadjustedEBITDAmarginof18.672.615 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 1.69billion,withexpectedadjustedEBITDAof1.69 billion, with expected adjusted EBITDA of 385 million to 410million[10]−CapitalexpendituresforFiscal2025areprojectedtobe410 million[10] - Capital expenditures for Fiscal 2025 are projected to be 130 million, up from 93millioninFiscal2024,tosupportresearchpublishingplatformworkandinfrastructuremodernization[9]DebtandCashManagement−Thenetdebt−to−EBITDAratioattheendofthequarterwas2.0,comparedto1.9inthepreviousyear[8]−Thecompanyallocated93 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 29millionintheprioryear[8]−Cashandcashequivalentsattheendoftheperiodwere29 million in the prior year[8] - Cash and cash equivalents at the end of the period were 89,411,000, down from 107,256,000attheendofthepreviousyear[35]−NetcashusedinoperatingactivitiesforthethreemonthsendedJuly31,2024,was107,256,000 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)thousandforthesameperiodin2023[36]ImpairmentsandLosses−Thecompanyrecordedapretaxnoncashgoodwillimpairmentof(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 11.4millionforUniversityServicesand11.4 million for University Services and 15.3 million for CrossKnowledge[18] - The company recorded a pretax impairment of 51,000,000relatedtoCrossKnowledge,impactingtheheld−for−salesegment[33]−TheUSGAAPnetlossforthethreemonthsendedJuly31,2024,was51,000,000 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 92.264millioninthesameperiodof2023[28]−ThecompanycompletedthesaleofWileyEdgeonMay31,2024,resultinginapretaxlossof92.264 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]