Wiley (WLY) Reports Strong Q1 Financial Performance

By Bobby Samwell • Thursday, September 05 15:13 • Permanent Link

Wiley (NYSE: WLY) has reported its first quarter results for the period ended July 31, 2024. The company has seen a strong year-over-year financial performance, driven by solid growth in research publishing, AI-related demand for learning content, and the continued execution of its value creation plan.

In terms of GAAP results, including held for sale or sold businesses, Wiley reported a revenue of $404 million, indicating a 10% decrease compared to the previous year. However, the operating income showed a significant improvement, standing at $29 million, which represents a $45 million increase. The EPS loss was ($0.03), reflecting a positive change of $1.64 compared to the previous period.

When considering the adjusted results at constant currency, excluding held for sale or sold businesses, restructuring costs, and other adjusted items, Wiley reported a revenue of $390 million, showing a 6% increase. The adjusted EBITDA stood at $73 million, marking a notable 22% growth, while the adjusted EPS was reported at $0.47, reflecting a substantial 74% increase.

The revenue from the research segment reached $265 million, indicating a 3% increase as reported and at constant currency. This growth was primarily driven by the strong demand for open access and institutional licensing models in research publishing. The adjusted EBITDA for this segment was $78 million, showing a 1% increase, with the adjusted EBITDA margin for the quarter at 29.3%.

On the learning front, Wiley reported a revenue of $124 million, marking a significant 14% increase. This growth was attributed to a $16 million contribution from an executed $21 million content rights project for training genai models, along with continued growth in academic courseware. The adjusted EBITDA for this segment showed an impressive 60% increase, reaching $34 million, with the adjusted EBITDA margin for the quarter at 27.2%.

Finally, the adjusted corporate expenses of Wiley stood at $39 million on an adjusted EBITDA basis, representing a 2% increase, mainly due to higher tech expenses.

It is worth noting that the EPS loss was primarily due to a non-cash income tax adjustment as a consequence of the US valuation allowance related to divested businesses.

Today the company's shares have moved -7.1% to a price of $44.26. If you want to know more, read the company's complete 8-K report here.

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