McGraw Hill (MH) 28th Annual Needham Growth Conference Virtual summary

Business transformation and digital strategy

• Transitioned from a traditional textbook publisher to a digital-first education solutions provider, with over 90% of higher education business now digitally delivered and more than 60% recurring revenue.

• Leveraged a rich legacy of proprietary content and robust digital platforms, creating a strong competitive moat.

• Completed a full migration to cloud infrastructure, enabling faster product releases, experimentation, and innovation.

• Standardized software tooling and methodologies, improving scalability and operational efficiency.

• Focus now on optimizing infrastructure for growth rather than legacy migrations.

Leadership transition and strategic continuity

• CEO Simon Allen is retiring, with Philip Moyer, an executive with deep tech and AI experience, set to take over in February.

• Moyer brings expertise from Google, AWS, Microsoft, and Vimeo, and has a background in education technology and AI.

• Allen will remain as Chairman to support a smooth transition and maintain strategic direction.

• The incoming CEO is expected to continue the current strategy and drive further AI-driven growth.

AI innovation and product development

• AI is used to streamline internal processes, such as content creation, reducing time by 60% and costs by 50% with the Scribe tool.

• AI-driven products like ALEKS and McGraw Hill Plus enable personalized learning journeys and generate significant data for further innovation.

• New GenAI features, such as AI Reader, Writing Assistant, and Teacher Assistant, enhance student and teacher experiences and are seen as revenue enhancers.

• Proprietary content and first-party data provide a unique advantage in leveraging AI for both operational efficiency and product differentiation.