Revenue Breakdown - Research revenue accounted for approximately 54% of consolidated revenue for the year ended April 30, 2023, with a 34.9% Adjusted EBITDA margin[26] - Academic segment accounted for approximately 34% of consolidated revenue for the year ended April 30, 2023, with a 21.4% Adjusted EBITDA margin[46] - The company generated approximately $393 million in revenue from the disposed education businesses, representing about 19% of consolidated revenue for fiscal year 2023[70] - The Company generated revenue of $926.7 million from Research Publishing Products and $481.8 million from Academic Publishing Products for the year ended April 30, 2023[350] Digital Products and Services - Approximately 95% of Research revenue is generated by digital and online products and services[26] - Approximately 65% of Academic revenue is from digital and online products and services[46] - The company continues to implement strategies to manage print revenue declines while driving growth in digital lines of business[49] - The zyBooks platform enhances learner engagement and retention through interactive learning experiences, becoming a key component of the company's digital learning strategy[61] - The company’s digital content strategy includes delivering online articles, mobile apps, and promotional collateral, improving margins and meeting evolving customer needs[59] Strategic Initiatives - Key growth strategies for the Research segment include developing new licensing models and focusing on high-growth markets[29] - Transformational agreements provide full read access and open access publishing for a single fee, involving recurring revenue under multiyear contracts[40] - The company is exploring the sale of certain non-core education businesses, which may introduce significant risks and uncertainties[95] - The company is conducting a strategic review of its operations, which may lead to divestitures that could affect its consolidated financial position[94] Financial Performance - Net revenue for the year ended April 30, 2023, was $2,019.9 million, a decrease of 3.0% from $2,082.9 million in 2022[371] - Operating income significantly declined to $55.9 million in 2023 from $219.3 million in 2022, representing a decrease of 74.5%[371] - Net income for 2023 was $17.2 million, down 88.4% compared to $148.3 million in 2022[374] - Basic earnings per share dropped to $0.31 in 2023 from $2.66 in 2022, a decline of 88.4%[371] - Total costs and expenses increased to $1,964.0 million in 2023, up 5.4% from $1,863.7 million in 2022[371] Assets and Liabilities - Total assets decreased from $3,361.7 million in 2022 to $3,108.8 million in 2023, reflecting a decline of approximately 7.5%[368] - Total liabilities decreased from $2,219.4 million in 2022 to $2,063.8 million in 2023, a reduction of about 7.0%[368] - Shareholders' equity decreased from $1,142.3 million in 2022 to $1,045.0 million in 2023, representing a decline of approximately 8.5%[368] Operational Challenges - The company is highly dependent on retaining key talent, as loss of such talent could significantly impact performance[100] - Cybersecurity risks, including potential cyberattacks, could materially adversely affect the company's business and financial condition[111] - The company faces competitive pressures in retaining business relationships with authors and professional societies, which are critical for success[103] - A reduction in enrollment at colleges and universities could adversely affect demand for the company's higher education products[99] Cost Management - The company plans to implement additional restructuring actions in fiscal year 2024 to rightsize expenses following the planned business dispositions[70] - The company faces challenges in achieving anticipated cost savings from its Business Optimization Program and Fiscal Year 2023 Restructuring Program due to various operational risks[117] - The company has outsourced certain business functions to achieve cost savings, but risks include potential business disruptions if third-party providers do not perform effectively[118] International Operations - As of April 30, 2023, the University Services business had 64 university partners under contract, contributing to the company's growth in online education offerings[65] - The company has operations primarily located in the US, UK, India, Sri Lanka, and Germany, indicating a broad international presence[384] Compliance and Regulations - The company is subject to various laws and regulations that could adversely affect its consolidated financial position and results of operations, particularly regarding open access publishing mandates[134] - The company is subject to potential taxes in jurisdictions where it has sales, which could materially impact its consolidated financial position and results of operations[141] Market Risks - The company is exposed to market risks related to interest rates, foreign exchange, and credit risk, and uses derivative financial instruments to manage these exposures[331] - Changes in global economic conditions could impact the company's ability to borrow funds and meet future financing needs, although current liquidity remains stable[128] Environmental Commitment - The company is committed to being net zero by 2040, aligning with the Science Based Targets Initiative (SBTi) for corporate climate action[87] - The company achieved CarbonNeutral® certification for the fourth consecutive year, utilizing 100% renewable energy across its global operations[86]
John Wiley & Sons(WLYB) - 2023 Q4 - Annual Report