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Jan 31, 2020

Wiley Q3 2020 Earnings Report

Wiley's Q3 2020 results saw revenue increase by 4% and EPS increase by 3%.

Key Takeaways

Wiley's Q3 2020 showed positive momentum with revenue of $467 million, a 4% increase, and EPS of $0.63, a 3% increase. The company acquired mthree for $129 million and raised its full-year EPS outlook while reaffirming revenue, EBITDA, and Free Cash Flow guidance.

Revenue increased by 4% to $467 million, and EPS rose by 3% to $0.63.

Adjusted results at constant currency showed a 4% increase in revenue, a 7% increase in EBITDA, and a 10% increase in EPS.

mthree, a tech talent provider, was acquired for $129 million.

The full-year EPS outlook was raised, while revenue, EBITDA, and Free Cash Flow forecasts were reaffirmed.

Total Revenue
$467M
Previous year: $449M
+4.0%
EPS
$0.68
Previous year: $0.61
+11.5%
Adjusted EBITDA Margin
20%
Gross Profit
$313M
Previous year: $306M
+2.5%
Cash and Equivalents
$117M
Previous year: $133M
-11.6%
Free Cash Flow
$167M
Previous year: $153M
+9.0%
Total Assets
$3.32B
Previous year: $2.91B
+14.2%

Wiley

Wiley

Forward Guidance

Wiley is raising its EPS outlook and reaffirming for Revenue, EBITDA, and Free Cash Flow.

Positive Outlook

  • Revenue outlook reaffirmed at $1,855-$1,885 million.
  • Adjusted EBITDA outlook reaffirmed at $357-$372 million.
  • Free Cash Flow outlook reaffirmed at $210-$230 million.
  • EPS outlook raised to $2.45-$2.55.
  • Guidance includes impact of mthree acquisition.

Challenges Ahead

  • Revenue may be impacted by $17 million due to FX.
  • Adjusted EBITDA may be impacted by $5 million due to FX.
  • Adjusted EBITDA may be impacted by $2 million due to mthree.
  • Adjusted EPS may be impacted by $0.06 due to FX.
  • Adjusted EPS may be impacted by $0.07 due to mthree.