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 was $265 million, up 3% year-over-year, driven by growth in open access and institutional licensing models[3] - Learning segment revenue increased by 14% to $124 million, primarily due to 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] - The Research Publishing segment generated $230,951,000 in revenue, reflecting a 4% increase from $223,000,000 in the previous year[30] Earnings and Profitability - Adjusted EBITDA for Q1 was $73 million, reflecting a 22% increase year-over-year, with an adjusted EBITDA margin of 18.7%[2] - Adjusted EPS rose to $0.47, a 74% increase 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] - The adjusted EBITDA margin for the Learning segment improved to 27.2% from 19.4% year-over-year[30] Financial Outlook - The company reaffirmed its Fiscal 2025 revenue outlook of $1,650 million to $1,690 million, with adjusted EBITDA expected to be between $385 million and $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] Cash Flow and Debt - Net cash used in operating activities was $88,712,000, compared to $82,335,000 in the same period last year[34] - Cash and cash equivalents decreased to $82,545,000 from $83,249,000 as of April 30, 2024[32] - Total assets decreased to $2,652,058,000 from $2,725,495,000 since April 30, 2024[32] - The net debt-to-EBITDA ratio at the end of the quarter was 2.0, compared to 1.9 in the previous year[8] 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 assets[33] - The total pretax loss on the sale of University Services was approximately $105.6 million for the three months ended July 31, 2024[25] - The company completed the sale of Wiley Edge on May 31, 2024, resulting in a pretax loss of $19.6 million[25] Shareholder Returns - The company allocated $32 million towards dividends and share repurchases, an increase from $29 million in the prior year[8] Non-GAAP Measures - The company emphasizes the use of non-GAAP performance measures to provide supplemental indicators of operating performance and financial position[37] - Adjusted EPS, Adjusted Revenue, and Adjusted Operating Income are key non-GAAP metrics used for performance evaluation[39] - Free Cash Flow less Product Development Spending is crucial for assessing long-term shareholder value creation[40] - Non-GAAP performance measures may not be comparable to similar measures used by other companies and should not be viewed as alternatives to US GAAP measures[42]
John Wiley & Sons(WLYB) - 2025 Q1 - Quarterly Results