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Jan 31, 2024

Wiley Q3 2024 Earnings Report

Reported mixed results with revenue decline due to divestitures, offset by growth in Research and Learning, and raised full-year earnings guidance.

Key Takeaways

Wiley's Q3 2024 results showed a GAAP revenue decline of 6% to $461 million, impacted by divestitures and held-for-sale businesses. However, adjusted revenue, excluding these businesses, increased by 1% to $403 million. The company raised its full-year adjusted EBITDA and EPS guidance, reflecting confidence in underlying momentum and cost savings.

GAAP revenue decreased by 6% to $461 million, influenced by divestitures and businesses held for sale.

Adjusted revenue, excluding held-for-sale or sold businesses, rose by 1% to $403 million.

Research segment revenue increased by 1% as reported, driven by open access growth.

Learning segment revenue grew by 2%, led by a 5% increase in Academic revenue.

Total Revenue
$461M
Previous year: $491M
-6.2%
EPS
$0.59
Previous year: $0.85
-30.6%
Adjusted EBITDA Margin
22.7%
Previous year: 19.9%
+14.1%
Gross Profit
$304M
Previous year: $317M
-4.3%
Cash and Equivalents
$93.1M
Previous year: $126M
-26.4%
Free Cash Flow
$90.9M
Previous year: -$21.7M
-519.6%
Total Assets
$2.71B
Previous year: $3.15B
-14.1%

Wiley

Wiley

Wiley Revenue by Segment

Forward Guidance

Wiley anticipates revenue trending toward the mid-to-high end of its previously stated range and has raised its Adjusted EBITDA and Adjusted EPS guidance for fiscal year 2024.

Positive Outlook

  • Revenue trending toward mid-to-high end of $1,580 to $1,630 million range
  • Adjusted EBITDA raised to $335 to $355 million
  • Adjusted EPS raised to $2.45 to $2.65
  • Leading indicators suggest continued positive momentum.
  • Anticipated Q4 content rights deal for training AI models will augment Learning segment performance.

Challenges Ahead

  • Unspecified variability, complexity, and low visibility with respect to certain items
  • Restructuring charges and credits
  • Gains and losses on foreign currency
  • Other gains and losses
  • Worldwide economic and political conditions

Revenue & Expenses

Visualization of income flow from segment revenue to net income