WLY - Earnings call transcript Q1 2023 | John Wiley & Sons, Inc.

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Operator

Good morning, my name is Rob, and I will be your conference operator today. At this time I would like to welcome everyone to the Wiley’s First Quarter 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. [Operator Instructions]. Thank you, Brian Campbell, Wiley’s Vice President of Investor Relations.

conference. your begin may You

Brian Campbell

The Thank you, Wiley’s Executive by Napack, to I’m President may recorded include forward-looking hello, and CEO; everyone. statements. start. reminders President few Tassell, CFO. joined is and being and and Brian A and call Christina Vice Van

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

Brian Napack

call. to everyone, and earnings welcome morning Good QX Wiley’s

we in uncertain executing novel two of this of a topics. cycles momentum. of our primary to continues is touch remain through our global successfully underlying on Before companies economy challenges. want variety focus couple opportunity It an performs evidence I The does in for Wiley disruption. and and today all economic like and are our to periods to this, current strategy. is and I get rich, and operating well Wiley our Despite markets interesting foundational strong QX challenging results, pose reasons. a

research is cycles. thus progress and spending continues scientific First, economic on indispensable through it to the global

education their in of countercyclical Wiley long workers Because labor as these to and can investing is themselves markets today. soft view enrollment higher by futures. take benefiting Second, factors, react it tends and from this be the to

grounded the XXX to education, core career bad. increasing These cash a and include, objectives. must recurring. Wiley learners XX% new and strengths move all for Today’s this good ability knowledge needle products, And with and and to years continue brands knowledge content digital create of flow. find is research to world’s achieve who Wiley services, tech-enabled is ever need by of At balance Our new experience supported have in class and us is which Wiley services. well serve distribute revenue we the all digital the their and researchers, for from of of scientific connected and of our and revenue times in use for XX% to coming our knowledge company skills to ways meet demand world we’re serving an strong use and this sheet and leaders consistently strengths

up in outcomes worldwide. and Over renewed world transformative we’ve us approaches for addressable past by and real these drive found growth new education the years, investing opened to few that opportunity approaches research have

targets a and later positive that commitment are our more we a year. purpose dictate our to end, mission we for corporate this release world, both net-zero work a always as through that and will To citizen. and be our Finally, sustainable must force environmental

offset for driven was QX. expected quarter. cyclical some that declines Revenue talking the we more our have takeaways growth as targeted the by to key been consistently dependent overall for than in performance lines. areas strength earnings Significantly turn our the in growth largely about Let’s was time. enrollment in These

of we the are costs ecosystem Talent what activity. Publishing X,XXX by Corporate our of T&E the competitive network Research in-person Solutions research impacted And faster PxQ our nicely with grew due other employment strategy key is solution research business. clients The community brands. and continued were fueled remains targeted grew with The a automation. is the growth our research with and across to to also and Publishing our terrific Earnings journal Development. This As doing in saw Solutions Research multi industry-leading of research investment advantage this draw unit efficiently Research seeing publishing our is travel compliment and of foundation more expansion our from in client as the quickly, higher companies, Publishing, the driven rapid of clients we what so And more aggressive partners. pipeline quarter increased our network. and Research which enduring is needs. we’re same. the ever Research and expenses wants, by here economics. resumption this open growing in fact, of quality we’re Research in of our resulting areas, Solutions,

Talent Corporate growing Development is by strong Finally, digits. double

market persistence they leading As the critical business to fears succeed. for school operate solve, workforce. The digital cycle. need and in opportunities point, and continue help to students remains that presently to shortage in despite skills In world’s many a that we we labor forgoing perhaps of talent their continue challenging biggest technology the strong the enrollment corporations usually are a learning, recession academic pain with

programs enrollment nearly X% the a summer in was result, As overall enrollment U.S. X%. spring our was down down and

by year, driven top-line of performance QX better we the the expect research. to compared For remainder

can point latter we for companies few restructuring This reaffirming the during that year. our will tell. see we kicking XXXX to which that Therefore also happy also to. quarterly out are during part the Christina our XXth something year. savings of We QX, the raised in fiscal dividend I’m is guidance, very consecutive speak

in performance in impact. our X% grew speak organically. as quarter currency Christina exclude for overall the detail. the variances will usual, all review Let’s performance Revenue our X% more presentation, to or later segment

Corporate Research Development, which revenue Also Training. decline that mainly enrollment driven Solutions, extend to contributing cyclical said, challenges about. offset in Research was our the – University what I’ve university I was Services, Corporate work by the XX% Talent As University talking been due at our in performance to are growth Publishing, and was Services relationships. These client to

long-term to tuition challenges our higher higher T&E EBITDA in we certain University Services contributed employment in line relationships. renewals, interest our XX% research, expectations declined collaboratively we performance, quarter. Adjusted line Adjusted work well as Specifically ensure declined to market-related advantageous was to Investments to EBITDA XX%, and lowered with costs, clients also in the income activities with mutually for performance. the Adjusted higher expense. spend our all related as due QX share lower in-person and in of in pension with resumption adjusted EPS EPS expectations. the as

I on not research, Christina financial our how position, Afterwards, recent operational outlook. OSTP results fiscal you now excellence mentioned, financial through As guidance our of segment then our executing take our indicative QX funded up discuss year initiatives, performance, XXXX back we and on I’ll and to it playing commitments. financial how our the federally we’re of out. pick are rest see will the the

Christina Van Tassell

good and Brian, morning you, everyone. Thank

start with was always Research this X% up As I’ll organically. Research. or X% quarter

and changed to Research segment Research Solutions. quarter we reporting June, in discussed our we Publishing As this

publication although Solutions includes X%, revenue submissions society by Research quarter timing. Article growth solutions. and remains Demand replaces rose our robust. platform was in variances year-over-year access publishing. in this line due platforms, continued up and X% were reporting down services, the driven corporate Research strong publish open Publishing to output to

the full expect For growth steady we in output to year, resume.

acquisition with publishing our Our continues high growth own to exceptional rapid and Hindawi margins. perform of expectations

by with fast well journals T&E Higher Hindawi growing and from publishing collection Editorial, centers in open expense Knowledge in Unlatched, the leadership rose EBITDA recent centric for research Adjusted as acquisitions, declined J&J and highly Solutions. societies prior as namely XX% platform. research in X% Publishing year reminder, to Research a organic career companies. services a of COVID and plus to environment. employment platform its our quarter R&D eJournalPress, As costs due compared the both in investments and Solutions efficient position increased solidified XXX growth for and driven

we the outlook. article to see strong progress our growth expanding to publish in client remain the full year, in say is, in we demand output and relationships confident remainder fully and that All due EBITDA to our continued revenue of For solutions. and year

X% onto investment Now markets segment team down and education which small corporate training X%. as in and quarter seasonally companies in growth double-digit with development. their flat and is corporate the courseware. APL, in in and serves content with expand delivering learning Revenue down professional was publishing Wiley leadership the this university

training. digital virtual and by encouraged publishing declines Publishing in e-learning. seeing and saw moderate are Growth in offset [ph] we’re content and the professional declines corporate outpaced modestly success here, in-person growth in Ed both print courseware. We

this Although seasonally our is smallest quarter.

expense, and COVID technology enrollment, of for a too This higher spring. we it’s due marketing numbers, to and be read compared timing declined news as projections a in bump snapback and modest early to proper the signal on effect. decline T&E normalize employee the EBITDA more last APL give XX% industry spending, the fall to following would early X.X% As quarter decline Adjusted good higher costs. this

indicative of QX is expectations. Given issues, not and timing year other APL’s seasonality EBITDA performance full our

Talent we Development revenue growth of Services; Let’s turn saw by growth Education XX%. to driven of XX% overall

We tech opportunity regions and signing are clients by massive in placements world. market growing our capitalizing new up XXX on the this rapidly doubling Fortune around

paying XX% ongoing or major revenue and has partner investments Services some client University are Our area lower growth expansion a share driven become off Wiley. XX% for recent renewals. long-term when decline enrollment in headwinds organically and in long-term by

further a cost Adjusted our we with mutually mainly, that quarter Services for revenue we year that Services. Optimizing an say, services. ensure beneficial good performance University and by typically not impacted in investments due our proposition to to was relationships. University EBITDA, as to and a strategic structure in quarter loss our long-term EBITDA working strong Talent QX returns. profit is seasonality QX partners Brian in ed of are read this growth is As our All lowest ensure mentioned, to value will maintaining lead adequate declines with Development. full flexibility

foresee long-term with this dampen outlook revenue enrollment Well declines; will professionals in expect However, to underlying to and and demand growth always pressure countercyclical themselves EBITDA Students credentialing the for by we due challenged need University that online margin on remains look online in expensive to education and campus. mitigate we to right degrees. differentiate year some over Services. partners. and optimize and any near-term certification the rely delivered anticipate it these manage how And find the many institutions online That headwinds revenue outside structure is will enrollment pressure. cost to programs, challenging and given we on our said student do

million $X lower for by free the flow lower Our annual to compensation with incentive cash for prior performance. earnings, partially year XXXX cash fiscal by compared offset was quarter lower payments our

with which are journal expanding remain of there As quarter. line the were focus of this was quarter reminder, for a offerings, our Development the quarters. are Talent half to as collections front cash on of a key Solutions M&A we concentrated note in timing our normally flow the the the prior due active year research acquisitions for $XX use Research year areas, on in journal no is fourth our subscriptions, portfolio, the and We which Corporate capabilities. million in and and third CapEx first growth

at credit cash capacity $XXX X.X of the July the with million cash on annual balance healthy end. of end with sheet prior more than ratio million revolving and a hand, flow of year. Net compared $XXX debt-to-EBITDA in X.X was at complements undrawn quarter Our

quarter allocated this year. repurchases to Finally in from $XX dividends prior up million share we the in $XX million

dividend noted, current our focus rewarding consecutive long-term for As to consistent our shareholders. our flow This time is over and dividend around testament payout yields the Brian dividend raised streak we year a cash and X%. on XXth

During we share shares repurchases $XX XXX,XXX at million. cost acquired on an Total per of the average was $XX. spend approximately quarter,

We are highly focused on excellence. operational

opportunities footprint $XX a prioritizing year. in This margin continued with and XXXX recognized XXXX. simplification the significant $XX will On reflected reducing gross fiscal These approximately rate in estate that workforce quarter the expansion restructuring cost in we half QX in driving optimization. is towards $XX investments are end opportunities, we’re savings future from and through and be of savings progress our in and targets reductions outlook reduction this year XX% year. quarter, are advantageous million saving approximately to our back the up million office be front, our last most targeted charge since we identify cost in again, We’ve throughout realized made XX% will related the The million at XXXX. of to program real We recorded reduction. run additional of with spring

simplify operations manage As we automate our workflows. actively portfolio, and

Now, first Despite Development. million. of Research outlook. be let’s leading to $XXX range growth we On anticipated and projections. single-digit driven Adjusted turn expected our indicators year our the million revenue, by mid largely our constant quarter, currency to initial is unusual, the full in EBITDA profit at currency and revenue but confirm Corporate to Talent constant expect $XXX

and offset by will Solid Research currency EPS the to Solutions $X.XX range as revenue expected constant Adjusted investments partially growth to restructuring is savings $X.XX. and overall. in of as higher Corporate Research at be in Development, Publishing, employment Talent targeted costs well be

expect higher In higher interest expense, inflation, lower expense, pension and addition to wage income. targeted tax investments we and

$X.XX additional items expected call, impact. these last adverse to for of account our noted As three on are

rise Our primarily a an adjusted due XX% of XX%. This to rate. XX% country year mix between statutory is this to less effective UK the to earnings and from increase expected is in tax and by favorable rate

In of in been terms XXXX earnings Free is higher frozen be of product core of cash to performance to and will Talent million platform range income, $XXX cash payouts and $XXX million CapEx year. investment areas million. since XX% incentive our the interest lower pension by $XXX XXXX to growth million Development. focused important we are prior Capital in above of fiscal the to Corporate expected pension $XXX flow note are to funded. and be has taxes, Research that be it’s in cash million to expected and lower and offset for on Positive development $XXX our compares CapEx.

Europe, it revenue at back since cash our In most terms but and of earnings flow in our businesses with denominated from that, given in headwind And the remains base self-hedged to largely dollars of our outlook, Brian. are including pass expense large and FX, currency U.S. standpoint. line, we an global I’ll

Brian Napack

want I end against fiscal of the Christina. for about you, the doing we’re XXXX made Thank to commitments at we now and how execution QX. talk them

for a recent and recall that new go is ensure to commitments the open and research payoff. of calls all that foreign science You the But of these, published in department day is funded policy. federally reside and foreign we Policy, want Two weeks outside research XXXX, that U.S. U.S. funded by subscription U.S. at guidance spend that issued starting to within others of freely House in out research all few I fully Technology ago, over before White the research start to and would U.S. Federal which be available agencies need that moments a education. a a Wiley from laid development eight Science I if the enacted federally year forward Office on implication the would

with open by we this fully mission, Publishing. working supported with While to aligned stated research. our we are for the stakeholders its is stated implications, we other statement the the evaluating were been momentum that and new in surprised to not world of by are timing OSTP all We’ve transition, and the unprepared, open simply at guidance is still the around have Research strong the and support years and strategy

XXXX Solutions. in the to the In expanding acceleration Research unlocking share are some you our a continues And number And and of and groundbreaking with alone, our back multi-year stake shared peer publishing transformational publication. expanded through of access Wiley OA XX%. guidance in transformational our we years of Publishing of past research our led from agreements We as objective OA and global know, As it further saw efficiency we of drove are X% rapidly Research approximately to agreements. to and executing scientific may transition we affirmatively. leadership position our OA by while of benefiting our the program robust against and acquisition has less similar improving reacted three this increase greatly fiscal revenue today with hold. review the Hindawi OA this Europe, than to

ship. published reference anticipate The this accelerate OSTP guidance, less recent a a to will while continue to those funded have articles U.S. already material the will of For we’re impact. do still evaluating articles are not Department All that third say, OA by policy XX% than Federal through our share we by And impacted OA. are XXXX. it today of financial

Okay.

global said, read publishing now we publishing offerings, Turning we XXXX our meet the we submissions more operations. Christina would as publishing article in to how performed in demand, of QX. the for would output X% fiscal by On year. to output scale grew agreements especially establish continue commitments more year, research expect publish our Research transformational in worldwide. we by and to we on We growth more, open and but the access. and steady and We them XX%. would At start year-on-year, was down streamline OA Solutions we fiscal mentioned, our publishing Overall would

you grow is by is proud agreement access publishing region. quarter, trillion transformational transformational largest the remains global year. Mexico, volume university which consortia incremental the this UNAM Read say revenue is in an institutions. they increasingly open customers, Latin R&D major nearly multi-year and we X% The representing economy. our as thus scientific institutions in America, they’re As our three and powered These announced us this large in And strong and expected are and agreements. XX Publish to in deals and representing to first to for Italy pipeline for great which including announced great in our for spend, France, technical know, research $X.X I’m that agreements XXX We drive

articles a in number one journals. price is function and revenue access our the of we of of charge As publishing you know, direct in published for open the

Research critical services Solutions, the momentum corporations, delivers strong succeed to During and open other the the and refresh quarter, continue platforms publishers, to to we economy. Solutions in that allow Research in see research tech-enabled stakeholders

content efficient. publishing new by these processing, corporations and quicker, researchers to And revenue make research and leverage Wiley our and our platforms we’re Increasingly our consuming more reach XXX monthly platforms leveraging Our easier, models creating network million impressions. plus enables and million clients XX network. and knowledge plus for

the major with new Pfizer, connecting talent our help revenue and career pharmaceutical like companies jobs help AAAS fill critical like example, societies people by gaps. centers For generate

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signed American Cancer cross partners, and the During through sell Society, solutions Park you and existing and including we of National four sense our up To and with opportunity. opportunities continuing we sell give expanded the partners. Lilly, additional new are corporate partnerships the six organic services we Service society growth to this drive Eli a quarter, XXX with other and

partners XX% more So far to subscribe only our two. subscribe one than more of only and X% to than service

research, particularly We’ve in we another. time, Finally, the streamlining we process from rejected it referral discussing been of call cascade. one the are Wiley operations to this journal some articles for

reminder, is the between fit of not which publish submitted a first we’ve to Wiley and due Mostly submitted. does improper the is it XX% manuscript articles received. a As this journal to

Our very another our goal up these publish are the rejected intelligent portfolio It progress fully we’re XX% X,XXX but to offered portfolio, this time far. process. authors year capitalize option encouraged opportunity referral by across will and on Wiley so Wiley’s XX% take at this from through end. within journal Notably home to another is articles, to now we an do find transfer and of

of So in was Research. our solid stated commitments QX quarter against a as you can very see, delivery

commitments career-connected our progress executing our to in now turn on education. Let’s XXXX fiscal in

operating Here, drive base our we’re to course offerings efficiency. university corporate in to our differentiated and and working expand client to gain we’re growth

clients agreements. first quarter another On development the signed one this two in services. the Development front, our and includes Talent client global This sector three to group multinationals financial in insurance another Corporate large Wiley

success growth notable growing in employee year-on-year the Our in with placement Europe. resulted XX% client base expansion a in of

client very spans pipeline multiple strong is industry verticals. Looking it ahead, and new the

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as publishing Knewton are program Information this We Association science the named replicating science, recently & the solution for example, prestigious our and Most success high demand, engineering. instructional the In awards. across Industry Software other into of disciplines. Alta courseware courseware expanding zyBooks part best was

efficiency the work our is a preceding pace. On front,

are platform development and publishing toward processes, profit we improvement. scale education we process We through talent and efficiency and upgrades contribution automated in improving redesign through as are meaningful driving

on fiscal despite cyclical our the enrollment are education, So overall well XXXX in commitments executing we challenges.

takeaways So, summarize key for today. let me some

clearly we’re strategies. through delivering organic identified our solid growth growth First, revenue

Research investment are Research off. Our and Solutions Corporate Talent Development paying and Publishing,

of growth materially strategy research growth profile are the years, the tolerance. working recession while execution and few business, consistent improving cash essential, and driving Our strong in our generation. our past strategies The markets remain continued over margins vibrant, rejuvenated our

Blue Development Talent trajectory of size profit strong by and to revenue this Wiley’s also The strategy opportunity increased grow expect our We education potential. continues notably execution connected career to in double-digits. Ocean This continue. most growth our as is has working high of positive Corporate potential the

enrollment evident resume growth as countercyclical that time cycle. focused following do everything as is on this higher unusual patterns to ed are in in correct offerings. having enrollment expect not over university in that perfect typical course, Of the We is effect our revenue declines cyclical

demanding better as of the engine say, world continues demand education to As core always more we is post-secondary a and and economic advancement.

and chip growth blue opportunity market challenges. academic provider cash the of some potential and long-term, continue and career subjects to areas, a demand good in As most courseware in flow the of current we services see in despite essential

that we Wiley efficiency is delivering simpler emphasized, better Christina to As in Thus, are a a Wiley. underlying this and and streamline good gains, continue believe we meaningful operations we progress QX. year made

to is flow goal and investments Research fiscal on in XXXX, while end, beyond Corporate profitability initiatives profitable that cash powering Development. To Research Solutions Our still clear focus we increase our to proven sharply strategies. growth continue Publishing, growth will Talent and

strategically Our while consistently reinvest us and sheet long-term flow shareholders. will balance this and enable to rewarding strong core in also cash acquire

As strategic the in planning plans. finalize cycle always continues we winter It long as fall. our through begins the range

And their I our look in the we continued and with humanitarian this to enthusiasm colleagues April for their continued out and the our their will achievements causes communities for to to our these to their and now them world. so work any hard Wiley around many quarter. advancing My Investor plans up forward of sharing open call goes gratitude in I And outlook want and questions mission support you an Day. at thank

Operator

CJS first of comes [Operator Daniel from question Instructions] from Securities. Your Moore line

open. is line Your

Daniel Moore

few publishing solid this but so kind there’s how quarter, And year you generally playing topics with X Brian morning, probably of thank because research, is, appreciate and remains Christina. lot starting it. in for remainder strong greatly growth solutions. a in see to currency the robust moving X% And which and you. and parts a single-digit few extra, taking very good a Thanks for of that you all color. the ask the low the and Is out? it discuss, questions of Thank I’ll Obviously and double

Brian Napack

you Yes. the thanks Dan. good It’s always for call. Well, have questions. to on the first of all,

feel and in we we that belief a our positive in both we are are, where Research sticking momentum we and in in about Research seeing where OA we cycle solutions. stand are and partner very We that Publishing our good to are Publishing our in

level of of say growth that to continue Research single-digit area the seeing an submissions So now stated level we’re higher above which submissions turn growth volume And our acceptances. have to you our upper leads of the and as the that know significantly revenue. now, can that grow from that’s should leads the see terrific. would an publishing perspective now, translate acceptances, even I we category want And what Publishing, into to as see is submissions in which is our at volume our in and turn you good you into to XX% publishing

but Solutions the guidance sub-segment provide in for don’t we Research very From the feeling as year So, good. Publishing. about know, very momentum of you Research the we’re balance good outlook the is a perspective,

up sell cross essential signing very earlier, We’re our And to of really and significant we’re seeing good a sell these those uptake on up number clients. new effort areas. solutions as I stated in in my remarks,

we’re balance and momentum So that the accelerate for yes, we not year. the of expect continue to seeing that good if about really research we’re feeling across the

Daniel Moore

ed to Services. gears services, switch with helpful specifically University Super start

you Just you’d certain expect that covers at mentioned partners as that headwinds, think tuition share on, a your I maybe to color lowered a bit about little the it, what any to partners of and and well? incremental programs would talk extend you percentage other

Brian Napack

Yes.

opportunity; have our to about as two clients. in we a long-term our two proposition we One value and ways. is as this think deliver it component the to as business So, of

the feel our deliver if career-connected potential we university’s so on Services increasing for a education of the as compete to about very demand education. good think about and to continue transition and University we online businesses long-term, very the to in for And competitive world

a that growth as really our partners to going the into university for gold feel segment. profitability be and we for we’re and translate will good help them continue there to provider So, standard that and continued

we think a very about, we long-term feel As so good. perspective, from

As or we we characteristics. term think cyclical secular basic the three business, on or about have going shorter issues in that

declines followed you first where enrollment saw fall, decline is overall universities. the all This the year. a across in of seeing point couple we’re environment. the to we’ve this X% all to bit, has decline see in just the by seen enrollment ameliorated years, decline. X% at is the enrollment actually And what over that starting significant been last it’s X% The stage that we’re is And for a of little maybe that down cycle enrollment one

we in so demand should ahead, with we which look of that programs, degrees to certifications or be the And from as going categories tend and most forward. aligned benefit in our

we of the we thing and first out the spring. future, to fall we behavior into how enrollment, that translates have still feel So, how although countercyclical pretty think need to the the the plays generally good about and is see about

know where enrollment economic attracted you significantly little a back. simple there That’s there a situation was a hot the period during where COVID in and lot back of the environment in unusual been instead As then going just go people bit of was by getting exacerbated of market’s to in that. to a we’re really work labor degrees a settling a rise very Dan, and post-COVID as

our overall University the there term partners. is that’s that the with second out. couple how which but working of a biggest is And is components the number So One portfolio partners, those highlight. upon, you Services are component, other and playing our we’re of the is,

relationships rather in valuable the long-term we’re always much we absolute on time, we’re we’re with partners. and focused this over the the that is who quality profitability but portfolio, long of partners, working are build so as us the not focused from So of working, to beneficial number Wiley mutually on a time. case, and for partners, And a heard you’ve

lost launch that them. future, that They in told and way our ever represents of number future have, XX that’s of we portfolio to that to means them size that no go degree and the testament such we you why are reflected up a lead is all fact, us numbers, order success. As the programs, of launch remarks. with my additional time. their or which value to – little launching couple And the our we about in over and as but a growth that students in of about earlier they leads portfolio. an partners our and in a we numbers said, That in certainly I they bit down increasing And the that the serve because to programs belief quality financial little is significantly, our in will partners

what volume. for that but a It ultimately have to our we significant portfolio. that one our demand advantageous. our have get And many from take that the is to important look quarter. in clients, we’re it need our terms. for extend to upon, revenue, fact, there’s very with final of to our both are revenue partners, the growing in that with business, to which of we that order relationship, we on because to which to the some with in have clients point we point us. that mutually we again, quality work to terms share, going ability the we last in terms to relationships we’re or And is partners, the cases, our extent leads which those means just length that long-term have The fully all a with we’re, about are And and at have the a the leads them we we we work high So to relationships them, partners in terms share in that this leads that to where price have in believe aligned is go, work happy renewed issue growth of our leads

business they of will business upon, we terms feel is terms terms, that mix in continue the good the including that share. of conducted, being but evolve, very our which revenue the So and about to

in that. where changes see outlook based significant now stand don’t we our upon any from we So,

Daniel Moore

changes, in for business as no significant the portion targets long-term And margin that obviously of your well?

Christina Van Tassell

our Dan, ed of we’re pressures enrollment outlook, the And how University nice it’s level, about we speak specifically but talk targets renegotiations. sure stays from with margin an really Hey, about going terms our at adapt to actively – Christina, our we you. with Services on point. margin to look sub-segment we’re we margin adapt to the make Yes don’t to as to in services to profile that talked with managing

Brian Napack

I’ll that. just to add Yes. And

with a of time we’re We talked comfortable about and goal XX%, have over that.

profitable feel and that good not we Wiley. out we’re breaking very business side level out, side ensure we’ll happen. revenue we are expense pointed Christina nice for both actively can that the And individual – but creative sub-segment As on margins, to a at working to the the going run the that’s

Christina Van Tassell

I wouldn’t Yes. as well. use QX indication as year an full of

that’s So another thing.

Daniel Moore

the reflecting expected memory, you. restructuring? rate sorry, when recent kind more headwinds? I macro Or the does that segment Is margin incremental at gave guide? from savings $XX short-term teens. the million initial these misspoke expected of Forgive was contemplated – XX% run of of represent my short-term course actions them Of you that some Thank mid

Christina Van Tassell

that we’re plan you original the in and that discussed on was with plan. That we executing QX

Daniel Moore

last out, the color Brian I’ll topic but it jump And as administration’s announcement. relates really appreciate Okay. the to and recent

your sure any hear see just articles like XX% any any toward heard and of at But access. you all backed two, published helpful? that today. growth than journal So actions correctly open guess, just of make by kind trajectory really one. government have of is sounds color of And I were the less of this be driving on the more at of or I I kind But you number surprised to of those taken publics a number continuation your funding on that evolution impact longer additional term would all ship correctly,

Brian Napack

the our a I now. openly of three answer world. I’ll calls and and scientific won’t with higher that’s this is it years to than of already very freely we’ve business. federal repeat of this – these been everything research On for don’t XX% thing. U.S. level impact OA very on but and policy. departments To and myself, the the trajectory script, line expect in a to your have completely or to yes second funded a published less question, earnings affect are That’s are to is about to material four great talking this of research financial Wiley. that or on rising We third underline believe the that the those spoke of in your we contrary well not Definitely articles that our we try in answer by are is Yes. across question, precipitously by Quite available as where health policy future all this impacted a specific

we’re be come We to also time that for going because a isn’t in to funding long forever, perhaps evenly. believe distributed a mixed model environment

some simply the And funding for the publication. have pay to disciplines don’t

this all our answer To – be other unexpected. so of not unexpected to significant a at all And your question future. subscriptions expect we is part

including up U.S. agreement a Energy. view we’ve orderly In discussions Parenthetically fact, it’s having We’ve world transformational with of an specifically been in signed in We over this actively say, and XX% of been personally And customers with with the Over them new this the I’ve been up alone, – agreement, Department what the conversations is completely those transitional me, having aggressively of to XX excuse years ago. customers. or continuation we are in the it’s line signed of open couple It signing customers. Europe, continuing as up U.S. in started U.S. major XX OSTP. the we’ve the OSTP at transition research. down

talking it we about Publishing. transition unexpected? but engine time. what know to do, some has So if upon business a Research this return now, our for you’ve transition growth didn’t with we’ve open been Yes, the in And Was mission I this system. belief is little reasons for to bit for completely this expect both enthusiastically access been you been consistent right our listening, timing which reasons is the alone and

I because it’s Now, out, insignificant. will point not also

the Research transition to open Our is to help Solutions strategy built world access.

expanding currently business are that significantly. We

matched that infinite the back is quarter which funding transactions we’re go pay be launched almost details, will a the with effectively this may I won’t alone author Oable, kind for a launching, fundamental but thing to attributed institutions number of because already we to of Just strategy. be of order it’s into called their processed, system have open to a complicated, the allows payment processing enabler in from solution APCs. that

ecosystem us that on to will So part be the built Wiley access. research need for pathway. a is a and that major and open healthy keeps scientific just serve This of

Daniel Moore

of for apologize I but right. the nature that it repetitive just would All be… I question, thought

Brian Napack

a question. it’s look, Dan really important No,

We’re important – it’s we question. We appreciate a it. really understand,

We’re about happy to. of whatever level want talk depth you it at to

Daniel Moore

you Very for again good. the color. Thank

Operator

over time, questions there no to back [Operator you call for some remarks. Napack, Instructions] Brian And closing Mr. at I further the this are turn

Brian Napack

the us December. great in again joining QX And results I today. sharing All to day. want a will on we look right. Well, call to everybody thank for have and forward Thanks

Operator

call. conference for your today’s concludes This Thank participation. you

disconnect. now may You

John Wiley & Sons (WLY) 7 Sep 222023 Q1 Earnings call transcript