John Wiley & Sons(US:WLY)2022-06-15 19:48Financial Data and Key Metrics Changes - In fiscal year '22, the company achieved over $2 billion in annual revenue for the first time, marking a significant milestone in its 215-year history [5][6] - Adjusted EBITDA rose by 3% and adjusted EPS increased by 4%, despite challenges in certain segments [13] - Free cash flow for the year was $223 million, down $34 million from the previous year, primarily due to one-time items [44][45] Business Line Data and Key Metrics Changes - Research segment revenue increased by 9% or 5% organic, with adjusted EBITDA up 10% [34] - Academic & Professional Learning (APL) revenue was up 1% for the year, with professional learning growth offsetting declines in Education Publishing [38] - Corporate talent development saw a remarkable 70% revenue growth, driven by new client signings and upskilling programs [25][40] Market Data and Key Metrics Changes - University enrollment was down over 4% in spring, impacting demand for Education programs [20] - The company noted a challenging enrollment cycle across higher education, with a decline in university services revenue [20][43] - Despite these challenges, the long-term outlook for online higher education remains positive, with expected growth in corporate talent development [21] Company Strategy and Development Direction - The company aims to lead in two key trends: the growth of open scientific research and the drive for career-connected education [8][9] - Strategic focus areas include expanding Research Solutions and enhancing corporate talent development capabilities [60][61] - The company plans to simplify operations and improve efficiency to enhance profitability and margin expansion [60][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the impact of geopolitical issues and inflation on the business but expressed confidence in the company's resilience [11][31] - The company expects solid revenue growth to continue in FY '23, driven by strong market fundamentals [59][64] - Management is committed to maintaining a disciplined approach to capital allocation while focusing on growth opportunities [79] Other Important Information - The company has been recognized as the most trusted company in media according to a Newsweek survey [7] - The company is committed to achieving carbon-neutral certification and has made significant progress in its ESG efforts [28] Q&A Session Summary Question: What are the implied EBITDA margins for fiscal '23 across segments? - Management refrained from providing specific segment information due to significant currency impacts but acknowledged the challenges [69] Question: What specific investments are being made in Research and talent development? - The company is focusing investments on areas with clear growth and profit opportunities, particularly in Research Publishing and corporate talent development [70][71] Question: Is there an upfront spend associated with new partnerships in talent development? - New client additions do not typically require significant upfront investment, as the business is cash-generative [74][75] Question: Are mid-teens margins still achievable in the Ed Services segment? - The company confirmed that mid-teens margins are currently being achieved in the services part of the business, despite recent cyclical challenges [76] Question: What is the focus on capital allocation and leverage? - The company is comfortable with its current leverage and is committed to balancing internal investments with returning capital to shareholders [77][78]