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Oct 31, 2020

Wiley Q2 2021 Earnings Report

Wiley's Q2 2021 earnings increased due to growth in revenue and adjusted EBITDA.

Key Takeaways

Wiley reported a 5% increase in revenue to $491 million and a 54% increase in EPS to $1.22. Adjusted revenue increased by 4% to $491 million, adjusted EBITDA increased by 7% to $120 million, and adjusted EPS increased by 12% to $1.00.

Revenue of $491 million (+5%) and EPS of $1.22 (+54%).

Adjusted Revenue +4% to $491 million, EBITDA +7% to $120 million, and EPS +12% to $1.00.

Research Publishing & Platforms revenue +5% and Adjusted EBITDA +14% on strong double-digit growth in Open Access.

Education Services Adjusted EBITDA margin of 21%, trending ahead of FY22 target of 15%.

Total Revenue
$491M
Previous year: $466M
+5.3%
EPS
$1
Previous year: $0.85
+17.6%
Adjusted EBITDA Margin
24.5%
Gross Profit
$336M
Previous year: $323M
+4.2%
Cash and Equivalents
$86.1M
Previous year: $108M
-20.1%
Free Cash Flow
$26.7M
Previous year: -$25.7M
-203.9%
Total Assets
$3.02B
Previous year: $3.08B
-2.0%

Wiley

Wiley

Forward Guidance

Wiley anticipates low-single digit growth in revenue, which includes low-single digit growth in Research, a mid-single digit decline in Academic & Professional Learning, and double-digit growth in Education Services (mid-single digit growth on an organic basis).

Positive Outlook

  • Revenue: $1,865 - $1,885 million
  • Adjusted EBITDA: $380 - $395 million
  • Adjusted EPS: $2.50 - $2.70
  • Free Cash Flow: $175 - $200 million
  • Low-single digit growth in Research

Challenges Ahead

  • Mid-single digit decline in Academic & Professional Learning
  • Factors detailed from time to time in the Company's filings with the Securities and Exchange Commission.
  • The Company's ability to realize operating savings over time and in fiscal year 2021 in connection with our multi-year Business Optimization Program
  • The impact of COVID-19 on our operations, performance, and financial condition
  • The ability of the Company to successfully integrate acquired operations and realize expected opportunities