The following is a summary of the John Wiley & Sons, Inc. (WLY) Q3 2024 Earnings Call Transcript:
Financial Performance:
Wiley reported a cost savings of $130 million with 60% already actioned, resulting in increased in-year savings.
Full-year revenue is projected to sit within the mid- to high-range of their guidance.
Reported GAAP revenue fell by 6% due to the sale of the University Services business and a decrease in held-for-sale assets.
The quarter saw a 1% growth in adjusted EBITDA to $92 million.
A 27% decline in adjusted EPS was largely attributed to increased tax expenses and reduced adjusted operating income.
They are anticipating low single-digit revenue growth in fiscal 2025, which is expected to rise to low to mid-single digit in fiscal 2026.
Adjusted EBITDA and EPS guidance have been increased due to improved learning performance and higher cost savings.
Business Progress:
The company has improved the organization and divested non-core assets.
Their focus has been on strengthening their brands and partnerships in Research and Learning sectors.
The company executed a $23 million content rights deal with a large tech company and is seeking out similar opportunities with other AI companies.
They plan to implement AI editing tools to improve the quality and speed of their journal content while reducing unit costs via process automation.
In attempts to improve operating and publishing efficiency, they are transitioning from multiple publishing platforms to one flagship submission and peer review experience.
They foretell an upward trend in adjusted revenue driven by Learning performance and an expected content rights deal in Q4.
The company plans to capitalize on Learning content for AI models and training engines, hoping to improve free cash flow in fiscal 2025 and again in 2026.
More details: John Wiley & Sons-A IR
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