On June 13, 2024, John Wiley & Sons Inc (WLY, Financial) released its 8-K filing detailing the financial results for the fourth quarter and fiscal year ended April 30, 2024. John Wiley & Sons Inc is a leading global provider of academic journals, books, assessments, training, test preparation materials, and online education program management solutions. The company derives over 85% of its revenue from digital products and tech-enabled services.
Fiscal Year 2024 Highlights
Fiscal Year 2024 was a transformative year for John Wiley & Sons Inc (WLY, Financial) as the company divested non-core assets, restructured, and realigned its organization. Despite these changes, the company exceeded its FY24 earnings guidance and reported a confident outlook for FY25.
Fourth Quarter Performance
For the fourth quarter, John Wiley & Sons Inc (WLY, Financial) reported:
- GAAP Revenue of $468 million, a decrease of 11% year-over-year.
- GAAP Operating Income of $69 million, down 17% year-over-year.
- GAAP EPS of $0.46, a decrease from $1.22 in the prior year period.
- Adjusted Revenue of $441 million, an increase of 4% at constant currency.
- Adjusted EBITDA of $125 million, up 7% at constant currency.
- Adjusted EPS of $1.21, an increase of 2% at constant currency.
Full Year Performance
For the full fiscal year 2024, the company reported:
- GAAP Revenue of $1,873 million, a decrease of 7% year-over-year.
- GAAP Operating Income of $52 million, down 6% year-over-year.
- GAAP EPS loss of $3.65, compared to a gain of $0.31 in the prior year.
- Adjusted Revenue of $1,617 million, a decrease of 1% at constant currency.
- Adjusted EBITDA of $369 million, down 3% at constant currency.
- Adjusted EPS of $2.78, a decrease of 19% year-over-year.
Segment Performance
Research Segment:
- Q4 Revenue: $271 million, down 3% year-over-year.
- Q4 Adjusted EBITDA: $94 million, down 11% year-over-year.
- Full Year Revenue: $1,043 million, down 3% year-over-year.
- Full Year Adjusted EBITDA: $331 million, down 13% year-over-year.
Learning Segment:
- Q4 Revenue: $170 million, up 18% year-over-year.
- Q4 Adjusted EBITDA: $74 million, up 54% year-over-year.
- Full Year Revenue: $574 million, up 5% year-over-year.
- Full Year Adjusted EBITDA: $200 million, up 27% year-over-year.
Management Commentary
“We finished the year strong and head into Fiscal 2025 with full confidence in our Research trajectory, GenAI momentum, and profit and performance outlook,” said Matthew Kissner, Interim President and CEO. “We are seeing robust demand to publish and significant output acceleration in Research as well as continued outperformance in Learning. On top of this, we’re seeing significant interest in leveraging our authoritative content to train AI and machine learning models. Finally, we’ve executed on our stated commitments with discipline and speed, enabling us to exceed our earnings guidance and accelerate our cost savings program, setting us up well for continued margin expansion and strong cash generation ahead.”
Balance Sheet and Cash Flow
John Wiley & Sons Inc (WLY, Financial) reported a Net Debt-to-EBITDA Ratio of 1.7 at the end of the fiscal year, compared to 1.5 in the prior year. Net Cash Provided by Operating Activities was $208 million, down from $277 million in the prior year, primarily due to lower cash earnings and higher restructuring payments. Free Cash Flow was $114 million, down from $173 million in the prior year.
Fiscal Year 2025 Outlook
| Metric | Fiscal 2024 Results Ex-Divestitures | Fiscal 2025 Outlook Ex-Divestitures |
|---|---|---|
| Adjusted Revenue | $1,617 million | $1,650 to $1,690 million |
| Research | $1,043 million | Low to mid-single digit growth |
| Learning | $574 million | Low-single digit growth |
| Adjusted EBITDA | $369 million | $385 to $410 million |
| Adjusted EPS | $2.78 | $3.25 to $3.60 |
| Free Cash Flow | $114 million | Approx. $125 million |
John Wiley & Sons Inc (WLY, Financial) remains optimistic about its growth prospects for FY25, driven by favorable trends in Research Publishing, new business in Research Solutions, and strong momentum in digital courseware and assessments in Learning.
For more detailed information, please
Explore the complete 8-K earnings release (here) from John Wiley & Sons Inc for further details.
