John Wiley & Sons(WLY) - 2025 Q2 - Quarterly Results

Revenue Performance - Revenue for the second quarter was $427 million, down from $493 million in the prior year, primarily due to foregone revenue from divested businesses[3] - Adjusted Revenue at constant currency was $423 million, reflecting a 3% increase, with Adjusted Operating Income of $69 million, up 32%[3] - Learning segment revenue increased by 8% to $162 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 $426.6 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 $426.595 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 $423.399 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 $261.885 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 $161.514 million, an 8% increase compared to $148.940 million in the prior year[43] Earnings and Income - GAAP EPS was $0.74, a significant improvement from a loss of ($0.35) in the prior year, while Adjusted EPS rose 36% to $0.97[9] - Net income for the three months ended October 31, 2024, was $40.5 million, compared to a net loss of $19.4 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 $0.35 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 $0.73 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 $128.75 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 $111,709 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 $132 million in the prior year[10] - The company allocated $64 million toward dividends and share repurchases, up from $61 million in the prior year[10] - Total costs and expenses for the three months ended October 31, 2024, were $362.5 million, down from $446.6 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 $25.102 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) 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) in 2023[54] - Net cash used in investing activities decreased to $(44,489) for the six months ended October 2024, compared to $(51,917) in 2023[54] - Net cash provided by financing activities was $113,083 for the six months ended October 2024, down from $129,702 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 $51.0 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 $0.8 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 $18.6 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 $1.5 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, reflecting a 45% increase from $71,626 in the previous year[48] - Total revenue for Research Publishing was $453,618, up 2% from $442,743, while Research Solutions revenue increased by 1% to $73,576[48] - Academic revenue in the Learning segment surged by 13% to $154,752, and Professional revenue increased by 8% to $131,076[48] - Non-GAAP adjusted EBITDA for the Learning segment was $100,562, a 34% increase from $75,064[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 $39.912 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, primarily due to a reduction in accounts receivable[51] - Total liabilities decreased to $1,853,603 from $1,985,779, 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, cash equivalents, and restricted cash at the end of the period were $75,586, a decrease from $99,618 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) in 2023[54] - Amortization of intangible assets was $25,871 for the six months ended October 2024, down from $29,213 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) 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]