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May 31, 2024
Scholastic Q4 2024 Earnings Report
Scholastic's Q4 2024 earnings were impacted by slowdown in supplemental curriculum purchases and increased pressure on consumer spending, resulting in revenue and profit below expectations.
Key Takeaways
Scholastic reported a decrease in revenue and operating income for the fourth quarter of fiscal year 2024, primarily due to lower U.S. Book Club revenues, decreased supplemental curriculum product sales in Education Solutions, and lower revenue per fair in the U.S. Book Fairs channel.
Revenues decreased 10% to $474.9 million, driven by lower U.S. Book Club revenues and pressures on customer spending.
Operating Income decreased 49% to $47.2 million, reflecting lower operating income in Education Solutions and U.S. Book Fairs.
The company made progress advancing its 360-degree content creation strategy with the addition of 9 Story Media Group.
Scholastic is targeting growth in fiscal 2025 with continued investment in growth initiatives and cost management.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company expects fiscal 2025 revenue growth of 4% to 6% and is targeting Adjusted EBITDA of $140 to $150 million, reflecting the partial-year contribution of 9 Story Media Group, partially offset by continuing spending on key growth initiatives and the impact of ongoing pressure on consumer and school spending.
Positive Outlook
- Expected fiscal 2025 revenue growth of 4% to 6%.
- Targeting Adjusted EBITDA of $140 to $150 million.
- Partial-year contribution from 9 Story Media Group.
- Continued investment in growth initiatives.
- Focus on cost management.
Challenges Ahead
- Ongoing pressure on consumer spending.
- Ongoing pressure on school spending.
- Seasonal loss expected in fiscal first quarter approximately in line with the prior year.
- External environment will continue to pressure results in fiscal 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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