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John Wiley & Sons(WLY) - 2025 Q2 - Quarterly Results
WLYJohn Wiley & Sons(WLY)2024-12-05 15:47

Revenue Performance - Revenue for the second quarter was 427million,downfrom427 million, down from 493 million in the prior year, primarily due to foregone revenue from divested businesses[3] - Adjusted Revenue at constant currency was 423million,reflectinga3423 million, reflecting a 3% increase, with Adjusted Operating Income of 69 million, up 32%[3] - Learning segment revenue increased by 8% to 162million,withProfessionalgrowthat11162 million, with Professional growth at 11% and Academic growth at 5%[6] - Research segment revenue was 262 million, up 2%, driven by strong growth in gold open access and improved solutions performance[5] - Revenue for the three months ended October 31, 2024, was 426.6million,adecreaseof13.4426.6 million, a decrease of 13.4% from 492.8 million in the same period last year[20] - Consolidated revenue for the three months ended October 31, 2024, was 426.595million,adecreaseof13426.595 million, a decrease of 13% from 492.808 million in the same period last year[43] - Adjusted revenue, net for the three months ended October 31, 2024, was 423.399million,reflectinga4423.399 million, reflecting a 4% increase from 406.610 million year-over-year[43] - Total revenue for the Research segment for the three months ended October 31, 2024, was 261.885million,a2261.885 million, a 2% increase from 257.670 million in the same period last year[43] - Learning segment revenue for the three months ended October 31, 2024, reached 161.514million,an8161.514 million, an 8% increase compared to 148.940 million in the prior year[43] Earnings and Income - GAAP EPS was 0.74,asignificantimprovementfromalossof(0.74, a significant improvement from a loss of (0.35) in the prior year, while Adjusted EPS rose 36% to 0.97[9]−NetincomeforthethreemonthsendedOctober31,2024,was0.97[9] - Net income for the three months ended October 31, 2024, was 40.5 million, compared to a net loss of 19.4millioninthesameperiodlastyear[20]−BasicearningspershareforthethreemonthsendedOctober31,2024,was19.4 million in the same period last year[20] - Basic earnings per share for the three months ended October 31, 2024, was 0.75, compared to a loss of 0.35inthesameperiodlastyear[20]−Non−GAAPAdjustedEarningsPerShare(EPS)forthethreemonthsendedOctober31,2024,was0.35 in the same period last year[20] - Non-GAAP Adjusted Earnings Per Share (EPS) for the three months ended October 31, 2024, was 0.97, compared to 0.73forthesameperiodin2023,representinga330.73 for the same period in 2023, representing a 33% increase[29] - US GAAP Income (Loss) Before Taxes for the six months ended October 31, 2024, was 71.94 million, a significant improvement from a loss of 128.75millioninthesameperiodof2023[29]−NetincomeforthesixmonthsendedOctober2024was128.75 million in the same period of 2023[29] - Net income for the six months ended October 2024 was 39,022, compared to a loss of 111,709forthesameperiodin2023[54]CashFlowandExpenses−FreeCashFlowlessProductDevelopmentSpendingwasauseof111,709 for the same period in 2023[54] Cash Flow and Expenses - Free Cash Flow less Product Development Spending was a use of 130 million, slightly improved from 132millionintheprioryear[10]−Thecompanyallocated132 million in the prior year[10] - The company allocated 64 million toward dividends and share repurchases, up from 61millionintheprioryear[10]−TotalcostsandexpensesforthethreemonthsendedOctober31,2024,were61 million in the prior year[10] - Total costs and expenses for the three months ended October 31, 2024, were 362.5 million, down from 446.6millionintheprioryear[20]−Thecompanyreportedarestructuringchargeof446.6 million in the prior year[20] - The company reported a restructuring charge of 3.627 million for the three months ended October 31, 2024, compared to 25.102millioninthesameperiodlastyear,indicatingan8625.102 million in the same period last year, indicating an 86% decrease[43] - Net cash used in operating activities increased to (93,992) for the six months ended October 2024, up from (83,486)in2023[54]−Freecashflowlessproductdevelopmentspendingwas(83,486) in 2023[54] - Free cash flow less product development spending was (130,149) for the six months ended October 2024, slightly improved from (131,975)in2023[54]−Netcashusedininvestingactivitiesdecreasedto(131,975) in 2023[54] - Net cash used in investing activities decreased to (44,489) for the six months ended October 2024, compared to (51,917)in2023[54]−Netcashprovidedbyfinancingactivitieswas(51,917) in 2023[54] - Net cash provided by financing activities was 113,083 for the six months ended October 2024, down from 129,702in2023[54]DivestituresandImpairments−Thecompanyrecognizedapretaxlossof129,702 in 2023[54] Divestitures and Impairments - The company recognized a pretax loss of 51.5 million from the sale of CrossKnowledge, with cumulative impairment charges of 51.0millionrelatedtothisdivestiture[22]−ThecompanycompletedthesaleofWileyEdgewithatotalpretaxlossof51.0 million related to this divestiture[22] - The company completed the sale of Wiley Edge with a total pretax loss of 18.6 million, recognizing a net gain of 0.8millioninthesixmonthsendedOctober31,2024[23]−Thecompanyrecognizedanetgainof0.8 million in the six months ended October 31, 2024[23] - The company recognized a net gain of 0.8 million from the sale of Wiley Edge, following a pretax loss of 18.6millionrelatedtothetransaction[31]−Aheld−for−salepretaximpairmentchargeof18.6 million related to the transaction[31] - A held-for-sale pretax impairment charge of 34.8 million was recorded for University Services in the three months ended October 31, 2023[35] - The company reported a reduction in the pretax loss on the sale of its Tuition Manager business to 1.5millionforthethreemonthsendedOctober31,2023[33]Taxation−TheeffectivetaxrateforthethreemonthsendedOctober31,2024,was17.31.5 million for the three months ended October 31, 2023[33] Taxation - The effective tax rate for the three months ended October 31, 2024, was 17.3%, compared to 11.7% in the same period last year[20] - The effective tax rate for US GAAP was 17.3% for the six months ended October 31, 2024, compared to 11.7% for the same period in 2023[29] - Non-GAAP Adjusted Effective Tax Rate was 23.1% for the six months ended October 31, 2024, compared to 23.7% for the same period in 2023[29] Segment Performance - Adjusted EBITDA for the second quarter was 106 million, a 14% increase, with an Adjusted EBITDA margin of 31.3%[5] - Non-GAAP adjusted operating income rose to 104,181,reflectinga45104,181, reflecting a 45% increase from 71,626 in the previous year[48] - Total revenue for Research Publishing was 453,618,up2453,618, up 2% from 442,743, while Research Solutions revenue increased by 1% to 73,576[48]−AcademicrevenueintheLearningsegmentsurgedby1373,576[48] - Academic revenue in the Learning segment surged by 13% to 154,752, and Professional revenue increased by 8% to 131,076[48]−Non−GAAPadjustedEBITDAfortheLearningsegmentwas131,076[48] - Non-GAAP adjusted EBITDA for the Learning segment was 100,562, a 34% increase from 75,064[48]−TheadjustedEBITDAmarginfortheLearningsegmentimprovedto35.275,064[48] - The adjusted EBITDA margin for the Learning segment improved to 35.2%, up from 29.1%[48] - Non-GAAP Adjusted Operating Income for the Learning segment increased by 40% to 55.871 million from 39.912millionyear−over−year[43]−AdjustedEBITDAmarginfortheLearningsegmentimprovedto41.339.912 million year-over-year[43] - Adjusted EBITDA margin for the Learning segment improved to 41.3% from 36.2% in the previous year[43] Balance Sheet and Assets - Current assets decreased to 370,313 from 454,042,primarilyduetoareductioninaccountsreceivable[51]−Totalliabilitiesdecreasedto454,042, primarily due to a reduction in accounts receivable[51] - Total liabilities decreased to 1,853,603 from 1,985,779,withanotablereductionincurrentliabilities[51]−CashandcashequivalentsasofOctober31,2024,were1,985,779, with a notable reduction in current liabilities[51] - Cash and cash equivalents as of October 31, 2024, were 75,536, down from 83,249[51]−Cash,cashequivalents,andrestrictedcashattheendoftheperiodwere83,249[51] - Cash, cash equivalents, and restricted cash at the end of the period were 75,586, a decrease from 99,618attheendof2023[54]−Additionstotechnology,property,andequipmentwere99,618 at the end of 2023[54] - Additions to technology, property, and equipment were (29,030) for the six months ended October 2024, compared to (40,321)in2023[54]−Amortizationofintangibleassetswas(40,321) in 2023[54] - Amortization of intangible assets was 25,871 for the six months ended October 2024, down from 29,213in2023[54]−Thecompanyreportedanetchangeinoperatingassetsandliabilitiesof29,213 in 2023[54] - The company reported a net change in operating assets and liabilities of (245,879) for the six months ended October 2024, compared to (241,415)in2023[54]Miscellaneous−ThecompanyreaffirmeditsFiscal2025growthoutlook,projectingAdjustedRevenuebetween(241,415) in 2023[54] Miscellaneous - The company reaffirmed its Fiscal 2025 growth outlook, projecting Adjusted Revenue between 1,650 million and $1,690 million[12] - The projected growth in the second half of the fiscal year is expected to occur in Q4 due to strong momentum in Research[12] - The company has historically provided non-GAAP performance measures to supplement its financial results, which may not be comparable to similar measures used by other companies[64]