JW.A - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by and welcome to Wiley's Third Quarter 2021 Earnings Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Wiley's Vice President of Investor Relations, Brian Campbell. Please go ahead.

Brian Campbell

you. Thank everyone. Hello, third Wiley's earnings update. Welcome quarter to XXXX and me Officer. and Officer; Brian President are Napack, Chief John Executive With Kritzmacher, Chief Financial and questions. some open make John and Brian we'll then formal it comments for up will

recorded Just a start. include to few statements. and is The forward-looking may call reminders being

statements differ undertake or in You by or to alternatives Wiley evaluate be After have of not filings. basis GAAP will the viewed a Also, are other measures noted, they to this our a webcast call on of the to measures the on performance of under provides call may The circumstances. as U.S. a on non-GAAP non-GAAP now reflect any may not nor subject companies, supplement underlying we and trends. presentation be be the President Brian impact update are Napack. I'll otherwise on comparable call will exclude metrics CEO, measures to to company the to Wiley's actual statements, standardized do available page. and by rely therefore playback and Investor as forward-looking meanings to similar variances refer will a prescribed Unless not as should our obligations over events operating and SEC revise to turn measures Relations profitability and and currency. and GAAP. year-over-year web shouldn't copy results does these materially subsequent factors discussed These used

Brian Napack

doubt directly Digitally, been has education for Wiley all grow connects the more high-quality The committed enduring is By the impact Without which today digital increase past revenue unlock speed mission, is Today X% company education. to from and services, of Overall human over education never ecosystem pandemic the need our its digital the at do, markets. affordable volume is strength for at to COVID and that research goal XX% which grew months. making and this, people XX% research the demand achieve in the again, we succeeding urgent more to continues Wiley knowledge and goals is positioned research a we pandemic, customer-centric will third very consistent recurring. overall productive. and is continued of in to demonstrated, joining year and everyone. deliver their that clear help core virtual to before very what Thanks different conducting increasingly world possible, Wiley quarter, never into what to achieve they execution learners innovation. into our has strategies in need a strong ways online out and on education. personal research the is it and for More are were morning, as based as discoveries to Good where researchers they like and get in their and sometimes understanding quickly succeed customers, the to hybrid open can of than their Wiley the education world. settled in and a to that good revenue that Learners well and and the jobs. company's Researchers is drive our today. has on to Wiley need results us yet work very in they potential. challenging has products of to peer-reviewed the XX of draws Wiley journeys. career their total Wiley's our

in sessions generate thus affordability increasing education courseware content and user research digital digital impact rapidly programs degree and And of each billions support Our unit and our volumes. online platforms and greater year.

settings; of we've In three markets: toward corporate online an more Beyond and ecosystem, and hybrid university a and the digital sustainable define courseware research needed of the in to acceleration seen the and past that power migration the revenue to education. digital deliver trends growth, move education adoption online attractive revenue based our productive profitability longstanding streams increased our research open models. and on year, hybrid strong business tools in

strategies paying around Our trends these off. and are they're organized

on the capitalizing direct open pay-to-publish published. to move revenue the and is of a today. model, Under research OA price quantity are function We articles of

underlying We recent revenue upon strong significant the Combined growth of allowing is potential. the to a the bit Hindawi volume acquisition are about achieve supported of our brands execution draw strong market's with growth our volume of achieving growth this power, I'll pricing double-digit growth. OA based our The and later. strengthens by this further strategies, publishing growth. us strong article talk

and education double-digit growth for demand future of trend, strategic into translated deliver positive schools for these indicators helped growth. continues both as enrollment year, pandemic. rise standard digital in been hybrid gold the effective partner services growth for design a futures. by programs to and significantly increasingly The in them starts helping their online in and long accelerated Wiley new plan degrees student the has to key universities This second has degree online along the past has

as more as has substitutes past out at the and From products The products. years by courseware figured view, simply is then for sell-through zyBooks product point third Wiley's ongoing trend rentals. has gain the is price books of and online adoptions used been maturation the and significantly effective win legacy toward and that be over lower digital our each print a effective world a for print curriculum of our like growth such digital content digital OER, adoption of can courseware has obsoleting from higher that than fiscal seems education. benefited more learning. It the the of media the delivered courseware strong in preferred This that outpacing of acceleration Happily the decline year. reflects content online trend which

and EBITDA Wiley that directly X% another was can see, The the we're adjusted X%, As headed. aligned and core quarter trends and adjusted with up delivered confident you execution was our Revenue in performance. was up X%. market up direction of strategies we're team are strong these EPS

by contributing in revenue Hindawi performance strong Education revenue inorganic million Services. $X with growth QX and organic Research in was Our driven

performance, Solid and the was the of acquisition. costs in top-line business adjusted COVID-related Hindawi to of lower $X.XX from revenue savings result related dilution offsetting EPS optimization growth quarter the

GAAP was by reduction Our restructuring estate primarily a our to to $XX more across as real charge impacted the shift a we working footprint EPS of Wiley. million related model performance of hybrid

earnings adjusted X% was year-to-date first adjusted XXXX, up Free million million the nine year than For was was to to to or $X.XX. $X.X months strong and EPS $XXX CapEx. lower due up cash of revenue higher $XX up prior was billion, fiscal prior flow over and million XX% EBITDA $XX year performance XX% to

X-month XX% to prior the for the EBITDA was period year. Our compared XX% margin in

overall, we're quarters. are So pleased after we with where three

of Publishing a Now the offerings and & The include look ongoing three year-to-date. workflows. X% Publishing Publishing and improving with highlights output for quarter Platforms key X% in as additional adjusted year Revenue investment segments. let's prior Hindawi. acquisition up momentum take infrastructure Research our and was our the strategic EBITDA in our was Research strong even and at our platforms the corporate our we and targeted

Research pressure in COVID-related we've double-digit with EBITDA year Fully Journal expectations, calendar continues Solutions. margin of in online was Open perform XX% article line up our nicely platforms Research to Our year-to-date. continue And Wiley revenue meaning continued the renewals. quarter over growth Corporate on the library publishing consumption XXXX was up X%. pressure Access our This and modest Subscription to grow well XX%. for seen with Research usage XX%. by output offset adjusted was up Research

are and XX four past user and months For hosted XX% see ahead. expectations. has sessions agreements a read a quarter, publish these good a in pipeline context Italy Publishing from the In succeeding, rate. and strategic over deals we that our read are world-class billion Literatum agreement client retention multiyear volumes publish with and content generating our we platform maintains Notably, exceeding the signed

with to XX-year continue recently health in one Chinese Association see a house leading publishing partnership We of We China's publishers. the Medical entered science Asia. opportunities strategic

be research further researchers in online Access our others quarter, extends to help added seekers deal of global also XX career publishing corporate CMA for This co-published management leadership will jobs. network launch the we our Veterinary expanding platforms of partners. includes Association centers list unmatched entire providing great offering journals. and societies, job In global the We connect universities Wiley's Publishing Internal among that Open our will and career College the Wiley's with American for hosting of Anthropological of the leverages and other and home American and important Medicine Platforms partners and growing we clients. portfolio the and center the

connect to calendar as our volume and advance career are tell, we advancement strategies, we both in focused community the subscription consistent final can are research months publishing of the renewals, next education jobs. research, directly continuing and you In is on Wiley with year always our XXXX the their theme while based and closing across efficiency. improving year, helping our As here to a

For the of XX% nine the a enabling we of integration Hindawi. EBITDA XX%, investment anticipate related adjusted ramp-up in growth is although, for an QX publishing EBITDA months, and margin research up to of

publishing. to is Open scientific true one world's in you this Hindawi Now fastest-growing of Access innovator I give acquisition. a want into insight some the research recent and publishers

Hindawi our its three years XX publisher This important to ways. entire of ago. subscription very journals is convert augments first fact, nearly to in the OA In strategy addition portfolio

we By to that complements portfolio provide seamlessly can submitted expanding our over Access a the extremely publishing a for and increasing satisfaction. Hindawi discipline, journals portfolio First, growing portfolio author fast-growing home of brings more Wiley XXX are strategic that Open well. articles journal of output our high-quality and Wiley's

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that Hindawi business the excited all bring with at of is increasing very by leveraging Research about We're can and joining they the offerings publishing for we society excellent So forces our third leading network and market Platforms our that Wiley. Hindawi strategy team augments the by Wiley's provide breadth enhancing partners. the that of way to

printed in zyBooks core for in Digital recorded offset Activations and one metric growth XX% X% growth up material, in compared year-to-date. due and exam platform time activations delayed first to in users test to XX% publishing the products trade its declines highlights digital XXX universities. Professional the outlook million from for Third and I'm COVID, along Learning, at with with Learning, quarter, rebounds pleased recently down this include history an and optimization. the Professional quarter it XX% has WileyPLUS in growth were are from Academic activations gain as purchasing quarter output was and in print a that content, digital prep, digital courseware. for for Publishing strong us, pattern XXX,XXX continued now zyBooks key e-book courseware quarter significant growth in improvement decline and continued when title sales. Education to course a for over performance in Professional results over The for margin our report Learning saw surpassed improving the Revenue overall for cancellations & print. including

as learning. Our stock bright remote new with double-digit by dummies a of franchise timely revenue titles such publishing continued growth spot driven hot and investing and to topics, be

quarter We upsell of positive In adjusted strong strong shift increasingly This EBITDA and revenue organically, Learning student quarter, existing Adjusted we fourth rose revenue growth also to XX%. corporate X% and to in positive our X% business. a clients quarter development focus organic in for delivery down for Services due margin Year-to-date addition digital and high on EBITDA double-digit enrollment. strategy rose training. demand and saw in digital execute had of at is very particular to always margin content COVID-related courseware, challenges. university and XX% X% the with mainly an strong EBITDA the by will virtual to third XX% programs career development were this the significant for with growth grow a Corporate Revenue a enrollment, on as a growth XX% Education with driven continue degree or online in new and and partnerships. growth discipline.

University doctoral Spring Wiley Hill -- in important variety New future programs student computer full-service with York growth. Mexico American disciplines online also science. an unbundled revenue graduate in also in with University a of We a the grew services. healthcare for and will leading XX% in programs partnerships College. undergraduate like US, We're we Highlands indicator high-demand Aviv Lebanon enrollment New and University Lebanon; University and existing support schools signed at New added in of Tel partnership our these Israel; in

continues an our Our revenue on growth with with business for focus bear of growth the coupled strong fruit achievement margin to on driving This strong focus profitable adjusted momentum XX%. building accelerating EBITDA reflects long term. a

doing application graduation for fact through through our through mthree, all strength. and partner on gaining to relentless is service as free excellent We it training are Wiley's focus in corporate reach outcomes last-mile journey and our the returns career student way our success. the demand broad tech talent momentum

including wrestle digital the and mthree plan and in continue In high. we and XXX a pipeline important new corporation. job-ready the of one -- Services companies with growth clients for economy. Education programs a accelerating enrollment this of As corporate for greatest demand growing skills to to companies of in talent remain by quarter We one workforce. quarter leading Placement the finding online companies the as with the three training we the Fortune addresses post-COVID the IT reminder, needs fourth two online dearth signed growth economy's mthree and is to continue anticipate see strong ahead global very as placing tech

So of John. pass I'll the momentum. quarter team our execution and across another to global efficiency over now call strong Wiley delivered

John Kritzmacher

Thank and you morning Brian good everyone.

team building our and execute optimization Brian As strategies growth initiatives continues our noted effectively to favorable on results delivering and momentum. business

confidently to and acquire cash return ample sheet balance consistency shareholders. to liquidity us Our annual flows enable invest cash and strong of

including equipment contributed flow adjusted performance Our year-to-date XX% $XX cash expenditures free in running prior cash earnings product and were year. in lower XXX our a favorable ahead basis nearly a year development point to year reflect and to prior million and flow including $XX well XX% EBITDA X-month improved prior XX%. Adjusted respectively. period adjusted technology, margin $XX to million improvement $X Capital million million operations with growth and increase of from the EBITDA cash spending by of EPS property than for

capital investment hand our particularly on We growth million services with acquired core in continue research. and revolving this borrowings and developing products quarter for to funded We and credit enhancing cash to around and $XXX workflows full be Hindawi focused year tech-enabled existing expect our in $XXX expenditures from on million areas by optimizing facility.

acquisition, growth includes we excess acquisition cost of revenue to fiscal synergies be in and and EPS of in with time Hindawi's EBITDA and 'XX. the to at combining profile is XX%. noted Hindawi margin realize Research As adjusted to significant attractive positioned In financial our strong year the expected Wiley's business, revenue accretive are well

tech-enabled to ratio quarter acquisitions, debt-to-EBITDA and we to X.X research for remain borrowings will of scale add was net as at respect education. Our With Hindawi online we look inclusive opportunistic capabilities and in end.

given time was $X last benefit rate million, the debt lower million environment. interest end nearly the same our to acquisitions while quarter expense Our balance was the than interest year down higher $XXX due of

hand cash we with million ended quarter liquidity, $XXX terms reported of $XX In and of capacity on undrawn of the credit million. we

dividend We resumed purchases following authorized our Our January is shares million authorization our at XXX,XXX acquisition. share announcement XXX,XXX repurchase shares our Hindawi trading of brief in XXXX repurchases yield program. and $XXX window of $XX.XX. in we open our roughly share remain of the current January, average per share in X.X%. spent on XXXX $X million Within cost remain Note an in early

to time optimizing Research, driving to operation, per and operations. material and in improvements end-to-end cost In our in the publishing of we continue implement design We article. cycle invest continue effectiveness efficiency in improvements and our Publishing

of from to the portfolio cascade addition article noted, will Hindawi the gain we Brian strategy. our scale advantage As

leverage we're platform. EBITDA profitable lead a In application Education investing operations e-commerce which and further enrollment publishing. we're and through margin addition, revitalizing line publishing In we're student and our digital content Hindawi improved infrastructure, with strategy. Access to popular platform operates our dummies.com Services, our education we publishing & recruitment in performance In efficient improving Academic broadly an growth low-cost will more in Learning, generation for both and with website capabilities Open for trade our Professional driving from

of our million XX% business $XX footprint reduction. program, quarter part recorded we this optimization related real estate a of overall to reported our As charge previously restructuring

We virtual a environment are larger implementing and permanently offices many smaller work hybrid our shifting model to for a at our of working facilities.

we As estate And facilities to 'XX. a travel, actions, events of as run and result million quarter, in beginning noted approximately these real significant we last annual $X expenses. savings COVID-related fiscal of anticipate generate rate savings continued finally, on

post-pandemic to taking savings sustain actions We operations. of much our these in are

our full to year outlook. Turning

year-to-date are of guidance EBITDA, performance EPS solid Hindawi's we outlook The impacts, our is foreign revenue, raised our and and Given impact. for cash exchange flow. raising inclusive

now $X.XX range to billion, of segment For single-digit projection revenue, 'XX. the and billion $X.XXX although from Research up level, Services the to continue billion revenue Services $X.XX we're previous At to Education fiscal Education revenue high project low we and of in a $X.XXX growth to billion we range billion the growth $X.X from up single-digits. for double-digit mid to organic growth raising project in in

Hindawi million for $XXX and million growth. We to We gains $XX range now savings revenue the Learning. is and in to outlook mid neutral roughly year. growth optimization decline to Professional EBITDA of anticipate business Academic $XXX profit Note, million continue expense prior fuel revenue continue our adjusted from project from & a $XXX $XXX 'XX. Hindawi. includes in strong from additional million to million, $XXX the up to EBITDA of approximately up Revenue million single-digit our of fiscal

and prior the range fiscal We to guidance from up of range EPS $X.XX to raising adjusted our a $X.XX in $X.XX from $X.XX to are up $X.XX modestly 'XX. of

payments earnings received we year, flow and transaction impact finally, refund Hindawi, for sorry which be the year-over-year includes we outlook free modestly million million $XXX cash accounting recorded anticipated impacts. dilution $XX relatively of the to in operating prior And -- fiscal tax from this cash million are cash cash higher cash The flat cash I'm raising accretive up flow early and we projected in $X.XX to fiscal but to is $XXX Hindawi's Our be quarter. million including $XXX was CARES in February. Act primarily related reflects approximately costs fiscal guidance from adjusted it flow our tax purchase XXXX. neutral That anticipate flow to million improvement EPS to from $XXX year. last cash refund

While to delivering market-driven open these digital results, and optimization research, we will opportunities in curriculum in our continue and to sustained invest online growth generate in efficiencies. education programs

We to fund strong investments back continue Brian. and optimization pass cash savings these now through I'll the generation. call those will to

Brian Napack

Thanks, John.

recap takeaways third the me let from the So key quarter.

in Our remained our all, important In builds digital curriculum. and have core the year through far. continued year education, namely research, online our we thus open strong business for strategy markets a trends challenging execute which the has to on

result, a affordable adoption in degree programs. consumption research growing our digital growing enrollment and output our career-focused growing high-impact and As we're digital of high-quality the We're growing platforms courseware. significantly business. content and We're

are This our research across universities, expanding and asset Wiley's We partners. unmatched network education. success corporate of supports leading societies, unique and

is strategy to solid adding the to is that outlook. team growth results We for Wiley has efficiency through and delivered selectively are open The this accelerate upshot us the year allowing to advance to research consistently Hindawi and improve our our raise quarter working and and this our year-to-date, strategy continue full we our our profitability. quarter core M&A

dedication and effort. and each I demonstrate is around to and remains always to I its potential wonderful thank many floor our advancement team out, our in unlock efforts As the important team to Wiley's now year colleagues questions. which comments customers other, their to our the of a world mission, performance research to accomplishments human its and and education. any will the extraordinary through for open the and Year

Operator

Your first Daniel Moore from from [Operator CJS you. Instructions] Thank question comes Securities.

open. is line Your

Daniel Moore

taking and questions. morning. for Brian good John, Thanks

Brian Napack

Dan. Hi,

Daniel Moore

the as color I but more to give a well. just color Hindawi, I you there to bit Can -- a of on into maybe pick lot up did wanted little Brian the that revenue or two plus you you've potential than together one just to little described equaling that over see more alluded how bit fit how and synergies a time, two? one want

Brian Napack

Yes. Absolutely.

a and you It and successful grow plus one baseline, equals portfolio, So is Wiley critical one part move an as we scale, and was as as ways. scale becoming forward we we nicely profitable extremely Hindawi that maintain itself. But know. it It's really three. in obviously the growing was in company really of is by grow but scale that of right very rapidly a the

has their a calls. that of two Wiley other as Hindawi do journal each in world So the possible scale, order. get Researchers variety they with and can exploitation the best one out in to talked companies to to that the way which of want number we've quickly these as about complement that the in research

our so they science journal, they that to a do journals health and leading what is to say want And journal. choose it of submit one they

of it the Sometimes journal to seamlessly. an our rejected. the that is article journal part journal to in If have To is quickly or four high-quality strategy, faster. gets better, journal can portfolio else. important that sometimes two journal rejected, our researchers somewhere one gets article or it the three we out their gets resubmit article And article allowing can to do thereby forced move it that journal to that the this extent we accepted, we a fits author and and from to get that

large a of those articles. get those we this articles We we percentage receive. reject get articles we because believe So publish so about portion I to there today the even we greater articles you more -- elsewhere. the is publish that published even greater think elsewhere that we published see know that to that them Dan, significantly publish percentage, and track opportunity of and XX% the more We of know that

was does, high-demand high-quality they're are well that aligned what can OA of identified have know have that you submissions in and pieces those we then one higher very not even we unrelated it to a then the we publication. aligns journals can just apex great an Q as with an journals of journal if and we through our or disciplines run Hindawi So, times model, better. then these monetize percentage that's of set of P extremely we title and synergy the And our in journals the

high-quality So, matters. scale and scale really matters

a a publisher high-quality us you'll of like good with aligned well. see portfolio titles we very cascade a So, mechanism with do

is Open article is us the way is want Wiley they can to Hindawi get than a and norm Open strong was -- have a And quickly. Access uniquely article because at greater process the process it That's which the an author industry. faster tailored a much second out whereby The has they very their Access experience. to they that typically that also created to very that platform there want and processes quickly, helps there in its process get to satisfaction

we Wiley And and are platforms so many processes. Hindawi enhance processes those the and the move a we platforms in. could that that management Wiley possibly Conversely, far take us lessons more in can small than company allow them both platform invested what and as to have content across have the advanced

to bring successful corporate platform management forth assets And -- them have sold publishers robust the we to in is publishers Hindawi. very a business and assets add And can Literatum societies in we there world. a can we built around our of efforts. in the on So, we successful have great societies their those content successful marketplace. out so and very offering that to our research Hindawi those can an platforms course, then support a take by to very have Solutions which And even we and where more and business we efficiencies

Hindawi, we full can the us an world Hindawi into a is forward case full really Open go we advantage unmatched set of take with capabilities. of take and can this advantage So, can of where really Access

that every you lot submission as every the very article So, around submissions the move opportunity of where Q times a growing model, consistent the the P ourselves extent more grow OA can happens know high closely we the in attach to toward there's we world single-digits rate to as year And year. exciting.

Daniel Moore

want to just I And helpful. Very confirm.

did John? think fiscal dilutive year right $X.XX you included and by that I for Is in the say that $X.XX QX.

John Kritzmacher

Dan. correct that's Yes,

Daniel Moore

Got intend want are to least it. on it? to around at the you I don't your than continue deal be to And there XXXX goal? a the maybe but accretive you fiscal make discrete for do push potential investments Or it little to faster see that you

John Kritzmacher

us We've I a only very good little us Dan. it's will We at the board early feel that call the now two the grow. which team months. think making for rate on to had business the progress for and we're with about

that an update come we So, can for June. give you with on when fiscal we back around in XXXX expectations our

Daniel Moore

opportunity modestly Switching to if strong, given seen? Services do investment accelerate strong good. see conservative. margins wondering Education the you gears we've exceeding as see Sounds XX% I'm results the again really an you maybe goal. perhaps being bit don't once easily a little Or of that goal

Brian Napack

market. and business The Yes. can we growth here a Look answer business changing question in is a have why certainly it's growth great I asking. understand a you're a

comfortable to growth rate we've a to profitable continue continue XX% for We put are growth it plus be At as good are a We there for to we a opportunities going that and that keep leader. and long to look very number we leader our invest business. a to we're -- at continue to time treat intend out to and XX% higher.

bring recognize the moment to those we our that. provide make opportunities ultimately that targeting to from with we ways many know breadth at also in and potential and stand But our we're on As grow exists very, that that. on the those before is and traditional very a in successful enrollment transformation to to we of than and business that education this the higher a online people. capitalize huge and that services ever them to you pleased rate this profitability to hybrid our is is be And them new of need up, to partners to

going answer. the I think plus is to stick with So, XX% we're

Daniel Moore

Learning, Professional sense. and And more maybe think, now back & in is the courseware Understood. in jump Academic print. looks as offsetting we I Certainly it said, declines I'll makes one we -- like queue.

talk like Professional color there your corporate vaccines helpful. on similarly And it in really would accelerating, maybe better. your basis. that more in Just or about sounds Any bit professional Learning confidence with feeling a little commentary be are a the go-forward partners

Brian Napack

good Both questions.

and in portion the we feel courseware still and trajectory Publishing we pleased are to that's The them good the our We're the of share. and Education love is print we good of very called the decline. market. a about respect dramatically news We very print the Having really with comments, said we trajectory what gaining units with continue strongly that about that, digital our maturation offerings. we're unit side, optimistic are have So, I that, business and will on. to my

or we're instead while of example is an the optimistic. it's we terms that where call has that that, And business exceeding think do always in people right the bottom definitively are moment, is. of direction, in don't have the normalized like going. substitutes. to is products we a trajectory, what where that increasingly I we the to price/value we the looking for know growth a it's ready not rate now great buying We're are to of zyBooks proposition if isn't I alternatives say moving can extent temptation of -- And selling is an that are say So we what but

about feeling good we're So, it.

statement an about the per in going but inflection are to point going the a definitively And avoid right direction. so, se, specific trends we're

Daniel Moore

green then side, there sounds And the seeing some as professional like on well. Great. shoots you're

Brian Napack

Yes.

Forgot it.

Sorry, Learning most I part is two. Professional rebounding. definitely forgot The

worried were rate were our upsell and training the e-learning retention budgets and that, down And about that As the seeing beginning our good. very business corporate corporate XX% in-person we're up we is you and in in our what may businesses support like. we recall, is rate, very in our to

our we're and And But our And so, you companies, they've we're we the reasons our back into in trainings happened calendar to upsells for was in as we're XX% what in the a support future. out the cross COVID and it's we of about of looks good. situation. XX% know that is one up XXXX. before, to our still parts little virtually. training, had that trying been fact, high we're year -- down that been have pipeline terrific, XX%, we But And troubling now remained concern that, as and significant some are is main in-person retention when XX% done into very were part business now there of which a our between where that of given that look

front which it a And optimistic -- exceeded for classroom, there. think spurred of has have require moved my that's in come those would and fast far near So a has our on frankly, I also, going sides. virtual instructor bouncing used business. businesses that I transition as virtual don't the really an to exceeded those team of development, well to and We movement They're think really do back but on we're and expectation, businesses. this those both development professional trajectory, -- like we continue right to back parts yes, training toward by anywhere far it's COVID.

that get a obviously, classrooms. And together pleased because I'm great obviously, the business revenue profitability. So but more But don't in larger not of reach we recurring models, when back moves XXX%. back before we much sustainable also, have we in you have audiences, to need once to and really when a we where to and were bunch digital, go XX% can we get we -- into people only get

But we trajectory financials. Wiley the the see go you So and again, strategy. is with aligned be we're to and where where consistent by want not we can segment again to exactly and the want

Daniel Moore

Really on perhaps there are back others. circle I'll it and Thanks. pass if no helpful.

Brian Napack

you. Thank

Operator

Instructions] Your from Sidoti. question Greg from Pendy next [Operator comes

is open. line Your

Greg Pendy

can Can Can Thanks in a basis, -- I bit questions. little for that, XQ, guess, down my in a you have help give us way us understand around you first receivable? off, guys. I'm in you year-over-year to came They color taking then swings spiked seem talking? and Hey, little a on on the accounts XQ.

John Kritzmacher

the to at year-end is looking The comparison -- April, you're comparing? you're that back so, what

Greg Pendy

large came I'm receivables XQ. basis had on it trying like looks year-over-year to year-over-year spike Yes. basis, you on gauge a way in it Correct. of down. the just a -- in a seasonality And

bit where little in so that Just that you the flow to better. year with might up trying kind guidance receivables, your of a end understand cash I triangulate

John Kritzmacher

around So, to there that to of elements swings timing introduced the is business, our Hindawi a of season some subscription the lot good we've as our of and seasonality and a bit seasonality our other as renewal receivables, well mthree of addition our to business.

aware some receivable that should continues would going as performance balances I move to So, perspective, from a our inorganically be What say collections are collections you that is around there be that our things well. strong. are to

side, of have any are, We pressure encountered had the bit some so bit little in with have particularly payment around not coming a on receivables have challenges, do customers, library upward on significant from and schedules. of of struggling challenges a budget terms We issues defaults. our who

extended risks what what their But to we've payment you're I to the about as be most particular is cases you're seasonality, our not budget try customers challenges. collectibility. accommodating seeing, really seeing any is in said. around rare to for And, So want overall, of periods be clear I

Greg Pendy

student a of up. Understood. and just be is trying to given retention behind And new going was you XX% -- growth the then, that and -- think And or color be bit there on could understand, account to students trying if just a wins? you full-time will maybe to that COVID-XX understand just in lower some understand, gears, reflective, give kind it addition you do of new student new I just why just said, more Or trying little that us to spike? rate think those -- of switching is

Brian Napack

question. super Yes,

answer last say thing bit. first The I'll the is

the be to through the throughout programs. go-forward period would any leading see high no our through there retention that period. been up retention exceedingly rates has in have our graduation rate to in We and COVID. evidence COVID of It consistent online We've deterioration in increase

we're pleased. jobs. affordable way, get them degrees the proud in very that, of degrees, business really And people we're we're the by that of getting because So,

extent students company, and will the lose and we, to a that our unacceptable. we will that's and as the will clients And lose so, don't focus on lose impact first,

those degree So, there And are inside will programs. while where clients to new And take It's adding effectively, new and existing is, little that a ensure that's really always grow programs always always finding The The we We we here. is in programs. online coming what successful And that's the existing students, are drives growth the core ones, stand in -- then our always coming answer that it's new success do to at our have, we We that and efficiently with which the importantly, the from, underlying are but not certainly be we're effectively. a that To university most we're There's coming from them programs. and right? sure, with to new core them, in online. for the interest adding trying it clients where works clients, endemic it's efficiently -- clients now from? is terrific works education are find are graduation. a match them coming new up. through profitability. is them they and for program up we -- which

time. in COVID-related, large a remains So, permanent. much but sort over of the has of is seen. this that, Having online accelerated of interest way the COVID some been And believe degrees, to part we we've said move this or is course, be that not is cyclical

the and always and rates once rates toward students. that outstanding we that you're retention out, to clients as there's to we as program, -- the be have So so will our forth. delivered year But sorted as get expect are in retention next we

Greg Pendy

just some Was missed But the were to all And XX% opportunities in systems to percentage. that the having find? also, due the if why colour that submissions article article not final I land I'm -- one, Is right to just Great. want place then, it don't on, Where might article are published in opportunity? where I one where go. of And if identify, a but appreciate a past? AI, the would that and to the And in not system the Hindawi. you I trying are understand building word these throw of where mistaken, some so, you correct? that's process? you're lost -- you that sort of hopefully believe, could the

Brian Napack

Yes. where lost shelf editorial been we us exists of out that squeeze standards, ship existed job. The topic we pages a try publishers standards digital or old you is limited from a high. agree not opportunity do number to, We've would a has is people pathway remain there's the But space. and and a you that sort world missed topic. important those is really articles. there on that to for high a an find all unexploited unlimited the all say And the world What that, I for would for opportunities. that always had the must better through to of print editorial where process, two to home the articles with could want between I

And -- enough. not I wouldn't as it's think deficit, yes, just it fine opportunity. an characterize so it's I unexploited which XX% a rate, us, but for is It's good really you're a not right. absolutely

to -- allow editorial are develop faster submissions including us, We AI-driven, to process investing that. the by to organize faster. the and to on they hard route -- rejected send that to systems them next review people permission articles And to and systems We're their appropriate, for author's be the in to should another the ourselves then, and working them submission, journal, process to make ask that journal very absolutely journal, journal.

going review. hugely This also and all to as And haven't you, been be. significant investment, forward. gain get on we They largely also agree for that opportunity another is they higher focus is automated the but for think have articles, submitting focus multi-month right? absolutely important. higher a that we process very And right You're on. efficient manual process to to is moving past, big that When point a we we would And want go the great been I return a us. do automated as great to from source investment there's us, process of And to it, also haven't a authors opportunity. they it we where to and it's you that It's do publishers they with have of the process, percentage to underlined. a publish what make of the don't another which want we're that of source could we happy. much journal because a very in And wisely

Greg Pendy

That's lot. very helpful. Thanks a

Operator

I further I to call closing At in remarks. back Napack Mr. queue. no the questions turn this time, for have over,

Brian Napack

again results, year thanks joining Well, in fourth our for Terrific. sharing and to And us much June. forward very results we full will quarter look today.

Operator

This Thank you will conference everyone. call. conclude today's

now may disconnect. You

John Wiley & Sons (WLY) 4 Mar 212021 Q3 Earnings call transcript