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Apr 30, 2024
Wiley Q4 2024 Earnings Report
Wiley's Q4 2024 results were reported, exceeding FY24 earnings guidance and presenting a confident FY25 outlook with GenAI momentum.
Key Takeaways
Wiley reported a strong finish to fiscal year 2024, exceeding adjusted EBITDA and adjusted EPS guidance, with adjusted revenue in the higher end of the range. The company is confident in its Research trajectory, GenAI momentum, and profit and performance outlook for fiscal year 2025, driven by robust demand to publish and significant output acceleration in Research, as well as continued outperformance in Learning. The company completed a GenAI content rights project this quarter and expects another to be realized in FY25.
FY24 Adjusted EBITDA and Adjusted EPS guidance exceeded; Adjusted Revenue in higher end of range
GenAI content rights project completed this quarter with large tech company; another executed GenAI project with second large tech company to be realized in FY25
Advancing Value Creation Plan with 2 of 3 non-core divestitures closed and $90 million of $130 million run-rate cost savings actioned
FY25 growth outlook driven by Research & Learning momentum and accelerated cost savings
Wiley
Wiley
Wiley Revenue by Segment
Revenue by Segment
Research Revenue
CapyFin.comLearning Revenue
CapyFin.com Forward Guidance
Wiley provided its fiscal year 2025 outlook, excluding held for sale or sold assets. Adjusted Revenue is expected to be between $1,650 million and $1,690 million. Adjusted EBITDA is projected to be between $385 million and $410 million. Adjusted EPS is expected to be between $3.25 and $3.60. Free Cash Flow is expected to be approximately $125 million.
Positive Outlook
- Growth outlook driven by favorable trends and key indicators in Research Publishing, notably open access and institutional models
- New business in Research Solutions
- Strong momentum in digital courseware and assessments in Learning
- Margin expansion outlook in line with previous targets driven by revenue growth and cost savings
- Significant growth expectation driven by higher expected Adjusted Operating Income and accrued interest income from divestitures offsetting higher interest and tax expense
Challenges Ahead
- Higher interest and tax expense
- Higher capex of $130 million compared to $93 million in Fiscal 2024 driven by the acceleration of its Research Publishing platform work and infrastructure modernization
- Higher capex
- Year-over-year swing in incentive compensation payments
- Reinvestments to scale and optimize Research, modernize infrastructure and expand GenAI content licensing, capabilities, and product development
Revenue & Expenses
Visualization of income flow from segment revenue to net income