HOBOKEN, N.J.--(BUSINESS WIRE)-- Wiley (NYSE: WLY), a trusted leader in research and learning, today reported results for the first quarter ended July 31, 2024.
HIGHLIGHTS
- Strong year-over-year financial performance driven by solid growth in Research Publishing, AI-related demand for Learning content, and continued execution of the Value Creation Plan
- Third and final divestiture closed and remainder of $130 million cost savings program actioned
- Second GenAI content rights project executed with large tech company
FIRST QUARTER PERFORMANCE
- GAAP Results (including Held for Sale or Sold businesses): Revenue of $404 million (-10%), Operating Income of $29 million (+$45 million), and EPS loss of ($0.03) (+$1.64).
- Adjusted Results at Constant Currency (excluding Held for Sale or Sold businesses, restructuring costs and other adjusted items): Revenue of $390 million (+6%), Adjusted EBITDA of $73 million (+22%), and Adjusted EPS of $0.47 (+74%).
MANAGEMENT COMMENTARY
"The Wiley leadership team and I are pleased with how we started the year, as measured by both our performance indicators and financial results," said Matthew Kissner, Wiley President and CEO. "Research delivered solid growth driven by robust demand to publish in our journals and execution of our publishing and go-to-market strategies. Learning delivered strong growth as it sees continued demand for its authoritative content in training GenAI models and core growth in Academic. Finally, we closed our third and final divestiture and actioned the remainder of our $130 million cost savings program, positioning us for further performance and profit improvement."
Research
- Revenue of $265 million was up 3% as reported and at constant currency, mainly due to growth in open access and institutional licensing models in Research Publishing.
- Adjusted EBITDA of $78 million was up 1% as reported and at constant currency due to revenue performance largely offset by the timing of employee benefit costs related to higher incentive compensation and investments in technology. Adjusted EBITDA margin for the quarter was 29.3% compared to 29.8% in the prior year period.
Learning
- Revenue of $124 million was up 14% as reported and at constant currency driven by a $16 million Q1 contribution from an executed $21 million content rights project for training GenAI models and continued growth in Academic courseware, offsetting moderate declines in Professional. Excluding the GenAI project, Q1 Learning revenue declined 1%.
- Adjusted EBITDA of $34 million was up 60% as reported and at constant currency mainly due to the GenAI content rights project. Adjusted EBITDA margin for the quarter was 27.2% compared to 19.4% in the prior year period.
Corporate Expense Category
- Adjusted Corporate Expenses of $39 million on an Adjusted EBITDA basis was 2% higher at reported and at constant currency, primarily due to higher tech expenses.
Businesses Held for Sale or Sold (HFS)
Our Held for Sale or Sold segment reflects the performance of those businesses for the periods owned. Wiley University Services was completed on January 1, 2024. The sale of Wiley Edge, with the exception of its India operation, was completed on May 31, 2024. The sale of Wiley Edge's India operation was completed on August 31, 2024. The sale of CrossKnowledge was also completed on August 31, 2024.
EPS
