John Wiley & Sons (WLY) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and FY24 results, with adjusted revenue and EBITDA at or above guidance, driven by disciplined execution, cost savings, and GenAI content deals.

• Exceeded in-year cost savings goals, accelerated restructuring, and completed two of three planned divestitures; reorganized into a unified Research & Learning team.

• GenAI content licensing deals generated $23M in Q4 and $21M to be recognized in FY25, with further opportunities emerging.

• Reinvested in core research and learning businesses, AI initiatives, and infrastructure modernization.

• Increased share repurchases to $45M and raised dividend for the 30th consecutive year.

Financial highlights

• Q4 adjusted revenue up 4% year-over-year to $441M; Q4 adjusted EBITDA up 7% to $125M; Q4 adjusted EPS up 2% to $1.21.

• FY24 adjusted revenue $1,617M (-1% YoY), adjusted EBITDA $369M (-3%), adjusted EPS $2.78 (-19%).

• FY24 GAAP revenue $1,873M (-7% YoY), operating income $52M (-6%), GAAP EPS loss of $3.65.

• Free cash flow for FY24 was $114M, down from $173M, mainly due to restructuring and higher interest.

• Q4 GAAP revenue down 11% YoY to $468M.

Outlook and guidance

• FY25 adjusted revenue projected at $1,650–$1,690M (2–4% growth), with low- to mid-single digit growth in Research and low single-digit in Learning.

• Adjusted EBITDA expected at $385–$410M (4–11% growth), margin target 23–24%.

• Adjusted EPS guidance of $3.25–$3.60 (17–29% growth); free cash flow expected at $125M, rising to $200M in FY26.

• Capex to increase to $130M in FY25 for platform and infrastructure modernization.