Wiley Q2 financial results highlight growth in Learning and Research divisions
Wiley has reported second-quarter results for fiscal 2024, reflecting the ongoing impact of divestitures and strategic shifts.
Revenue for the quarter stood at $427 million, down from $493 million in the prior year, largely due to foregone revenue from sold businesses.
However, adjusted results showed growth, with a 3% increase in adjusted revenue at constant currency, driven by strong performance in Learning and Research segments.
Matthew Kissner, Wiley’s President and CEO, commented: “Continuous improvement is a way of life for us now, and it’s beginning to pay off in our quality growth and margin expansion.”
Revenue performance
Adjusted revenue, which excludes divested businesses, reached $423 million, up 3% year-over-year at constant currency. Adjusted operating income rose by 32% to $69 million, while adjusted EPS grew 36% to $0.97, reflecting improved operational efficiency.
GAAP operating income increased by 39% to $64 million, and GAAP EPS rose to $0.74, a significant improvement over a $0.35 loss in the prior year, driven by reduced impairment charges and restructuring costs.
Divisional insights
Research: Revenue for the Research segment grew by 2% to $262 million, supported by strong demand in gold open access publishing and improved performance in institutional models. However, legacy print and licensing revenue saw a year-over-year decline. Adjusted EBITDA for the segment remained steady at $82 million, with an adjusted margin of 31.3%.
Learning: Learning revenue reached $162 million, an 8% increase from the prior year. Excluding one-time AI licensing revenue of $4 million, growth was 5% at constant currency. Professional Learning saw an 11% rise, benefiting from improved retail channels, while Academic Learning grew by 5%, driven by digital courseware like zyBooks and inclusive access programs. Adjusted EBITDA rose 24% to $67 million, with margins improving to 41.3%.
Corporate Expenses: Adjusted corporate expenses remained flat at $43 million, reflecting disciplined cost management.
Impact of divestitures
Wiley’s divestiture of non-core businesses, including Wiley University Services and Wiley Edge, significantly impacted revenue but streamlined operations. The sale of CrossKnowledge and Wiley Edge's India operations, completed in Q2, concluded Wiley’s restructuring efforts in this segment.
Cash flow and capital allocation
Net cash used in operating activities was $94 million, compared to $84 million in the prior year, due to higher incentive compensation payments. Free cash flow less product development spending improved slightly to a $130 million use, compared to $132 million in the prior year.
Wiley allocated $64 million toward shareholder returns through dividends and share repurchases, reflecting a 31st consecutive year of dividend growth.
Outlook for Fiscal 2025
Wiley reaffirmed its fiscal 2025 growth targets, projecting adjusted revenue of $1.65 to $1.69 billion and adjusted EPS of $3.25 to $3.60. The company expects second-half growth, particularly in Q4, driven by momentum in Research and continued demand for Learning products.
Kissner emphasized the company’s strategic priorities:
“Learning has had a good year so far, both Academic and Professional, and Research delivered low-single digit growth with leading indicators and favorable comparisons signaling a better second half ahead. Additionally, we continue to see interest from tech companies and other corporate LLM developers for our high-value content and data to train and commercialize AI models.”
