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Jan 31, 2021

Wiley Q3 2021 Earnings Report

Wiley's Q3 2021 earnings were released, revealing a mix of growth and challenges across its segments.

Key Takeaways

Wiley's Q3 2021 results showed a 3% increase in revenue to $483 million. GAAP EPS decreased by -$0.24 to $0.39, impacted by restructuring charges. The company raised its full-year outlook for revenue, adjusted EBITDA, adjusted EPS, and free cash flow.

Revenue increased by 3% to $483 million.

GAAP EPS decreased by -$0.24 to $0.39 due to restructuring charges.

Adjusted EPS remained flat at $0.68.

Full year outlook was raised for revenue, adjusted EBITDA, adjusted EPS, and free cash flow.

Total Revenue
$483M
Previous year: $467M
+3.4%
EPS
$0.68
Previous year: $0.68
+0.0%
Adjusted EBITDA Margin
21.6%
Previous year: 20%
+8.0%
Gross Profit
$325M
Previous year: $313M
+3.9%
Cash and Equivalents
$91.3M
Previous year: $117M
-22.2%
Free Cash Flow
$210M
Previous year: $167M
+25.6%
Total Assets
$3.43B
Previous year: $3.32B
+3.1%

Wiley

Wiley

Forward Guidance

Wiley raised its full year outlook for Revenue, Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, incorporating the impact of the Hindawi acquisition and current foreign exchange rates.

Positive Outlook

  • Low-single digit revenue growth overall.
  • Low-single digit growth in Research.
  • Mid-single digit decline in Academic & Professional Learning.
  • Double-digit growth in Education Services.
  • Mid-to-high single digit organic growth in Education Services.

Challenges Ahead

  • Projected fourth quarter impact of the Hindawi acquisition (Revenue +$10M, Adjusted EBITDA neutral, and Adjusted EPS -$0.15).
  • Mid-single digit decline in Academic & Professional Learning.
  • Restructuring charges of $0.28 per share primarily related to a previously disclosed reduction in Wiley’s real estate footprint.
  • Hindawi acquisition was dilutive to EPS by approximately $0.12 per share.
  • Adjusted Corporate Expenses rose 19% to $44 million mainly due to higher employment-related expenses.