Q1 2024 John Wiley & Sons Inc Earnings Call

Speaker 1: Good morning and welcome to Wiley's first quarter fiscal 2020 for earnings call. As a reminder this conference is being recorded.

Good morning, and welcome to wildly as first quarter fiscal 2024 earnings call. As a reminder, this conference is being recorded.

Speaker 1: At this time, I'd like to introduce Wiley's Vice President of Investor Relations, Brian Campbell. Please go ahead.

At this time I'd like to introduce Wiley Vice President of Investor Relations, Brian Campbell. Please go ahead.

Speaker 2: Thank you and welcome everyone. With me today are Brian Napak, Wiley's president and CEO , and Christina Van Tassel, executive vice president and CEO .

Thank you and welcome everyone with me today are Brian Netback, while he was president and CEO and Kristina Vantassel Executive Vice President and CFO .

Speaker 2: Note that our comments and responses to your questions reflect management's views as of today and will include forward-looking statements. Actual results may differ...

Our comments and responses to your questions reflect management's views as of today and will include forward looking statements.

Actual results may differ materially from those statements.

The company does not undertake any obligation to update them to reflect subsequent events or circumstances.

Speaker 2: The company does not undertake any obligation to update them to reflect subsequent events or circumstances.

Speaker 2: Also, finally provides non-GET measures as a supplement to evaluate underlying operating profitability and performance.

Awesome.

He provides non-GAAP measures as a supplement to evaluate underlying operating profitability and performance trends. These measures do not have standardized meanings prescribed by U S. GAAP.

Speaker 2: These measures do not have standardized meanings prescribed by US GAAP and therefore may not be comparable to similar measures used by other companies, nor should they be viewed as alternatives to measures under GAAP.

And therefore may not be comparable to similar measures used by other companies.

Where should they be viewed alternatives to measures under GAAP.

Unless otherwise noted we will refer to non-GAAP metrics on the call and variances are on a year over year basis, and will exclude held for sale assets and the impact of currency.

Speaker 2: Unless otherwise noted, we will refer to non-GAAP metrics on the call. And variances are on a year-over-year basis and will exclude held-for-sales assets and the impact of current.

Speaker 2: Additional information is included in our filings with the SEC. A copy of this presentation and transcript will be available on our Investor Relations webpage at investors.wiley.com.

Additional information is included in our filings with the SEC.

A copy of this presentation and transcript will be available on our Investor relations webpage at investors that why they dot com.

I'll now turn the call over to Brian <unk>.

Good morning, everyone. Thanks for joining last quarter, we announced an important actions that we're taking it wildly to unlock value for our shareholders.

Speaker 3: Good morning, everyone. Thanks for joining. Last quarter, we announced some important actions that were taking it wildly to unlock value for our shareholder.

Speaker 3: These include divesting non-core assets to focus widely on its greatest strengths and its biggest opportunities so that we can deliver superior finance.

These include divesting non core assets to focus wildly on its greatest strengths and its biggest opportunities. So that we can deliver superior financial performance.

Today's widely as a knowledge company a global leader in the creation and distribution of new knowledge to solve real world problems speaking more practically one of the world's leading publishers of top quality research academic and professional content.

Speaker 3: Today's Wiley is a knowledge company, a global leader in the creation and distribution of new knowledge to solve real-world problems.

Speaker 3: Speaking more practically, we're one of the world's leading publishers of top quality research, academic and professional

Speaker 3: Complementing our role as a publisher, we're also a leading provider of digital solutions that power the knowledge ecosystem and that specifically help people to access new knowledge and use it to achieve their goals.

Complementing our role as a publisher we're also a leading provider of digital solutions that power the knowledge ecosystem and that specifically help people to access new knowledge and use it to achieve their goals.

Speaker 3: Research is Wiley's largest and most profitable business, and it's at the core of our knowledge company strategy. The market for new research content grows consistently, and Wiley has one of the world's leading research journal portfolios and the industry's most widely used research content delivery plan.

Researchers Wiley is the largest and most profitable business and it's at the core of our knowledge company strategy. The market for New research content grows consistently and Wiley has one of the world's leading research journal portfolios in the industry's most widely used research content delivery platform.

Speaker 3: The company is fundamentally strong, maintaining a healthy balance sheet and delivering consistent cash generation. Today, over 80% of Wiley's revenue is digital and 50% of it is recurring. Our current dividend yield is 4%, and we have now delivered 30 consecutive years of dividend increases. There aren't too many of us.

The company is fundamentally strong maintaining a healthy balance sheet and delivering consistent cash generation.

Day over 80% of why these revenues digital and 50% of it is recurring.

Current dividend yield is 4%. We've now delivered 30 consecutive years of dividend increases there aren't too many companies that can say that.

Speaker 3: For over two centuries, Wiley has delivered new high-impact knowledge to the world. And this legacy matters. The Wiley brand and our reputation help us to win and retain customers in all of our business.

For over two centuries, Wiley has delivered new high impact knowledge to the world and this legacy matters, the Wiley brand and our reputation to help us to win and retain customers and all of our businesses.

Speaker 3: All this is to say that we are in a good position to transition to the future to win in the market and to drive the increasing shareholder value.

All of this is to say that we are in a good position to transition to the future to win in the market to drive increasing shareholder value.

Speaker 3: Q1 played out largely as expected. We saw a year-on-year revenue and profit declines that reflect the publishing-positive in Dauy and the lingering effect of market headwinds in researches advertising and recruiting lines and also an academic public.

Q1 played out largely as expected we saw a year on year revenue and profit declines that reflect the publishing posit hendawi and the lingering effect of market headwinds and researches advertising and recruiting lines and also an academic publishing.

Speaker 3: All of this offset our continuing strong growth in open access, assessments, and in Zybooks courses.

All of this offset our continuing strong growth in open access assessments and in <unk> Courseware I.

Speaker 3: I'm pleased to report that we're seeing good underlying demand momentum in research where publishing volume is improving across all regions is measured by increasing article submissions and publication.

I am pleased to report that we're seeing good underlying demand momentum in research. We're publishing volume is improving across all regions as measured by increasing article submissions and publications.

Speaker 3: Further, we're seeing continuing gains in our journal impact factor scores, which are key to driving publishing demand and continued strength in new partner science.

Further we're seeing continuing gains in our journal impact factor scores, which are key to driving publishing demand and continued strength in new partner signings.

Speaker 3: As you saw in our recent filing, we've now reorganized to reflect our new, more focused strategy.

As you saw in our recent filing we've now reorganized to reflect our new more focused strategy.

Speaker 3: We reduced the number of business segments from 3 to 2. Research and learning. More on this way.

We reduced the number of business segments from three to two research and learning more on this later.

Speaker 3: We will also be temporarily reporting on our help for sale businesses as a third segment.

We will also be temporarily reporting on our held for sale businesses as a third segment.

We're working through the sale processes for University services cross knowledge and widely edge.

Speaker 3: We're working through the sale processes for university services cross knowledge in Wiley-A.

Speaker 3: We've found a high level of buyer engagement, although the market remains challenged.

We found a high level of buyer engagement, although the market remains challenging.

Speaker 3: Given the ongoing processes, we're not yet able to provide timing or expected process.

Given the ongoing processes were not yet able to provide timing or expected proceeds.

As you know we are eager to complete these transactions. So that we can reap the full benefits of simplification.

Speaker 3: As you know, we are eager to complete these transactions so that we can reap the full benefits of simplification, including moving even more.

Including moving even more aggressively on our cost base.

Speaker 3: As we said in June , fiscal 24 is a transition year for Wiley. We're very confident in her direction, but it will take some time to see the results.

As we said in June fiscal 'twenty four is a transition year for Wiley, we're very confident in the direction, but it will take some time to see the results.

Speaker 3: The benefits are expected to materialize in the latter part of this year with full realization in fiscal 25 and 26.

Benefits are expected to materialize in the latter part of this year with full realization in fiscal 'twenty, five and 'twenty six.

Speaker 3: I'll now summarize our performance for the quarter. Christina will provide more detail in her room.

I'll now summarize our performance for the quarter Kristina will provide more detail in her remarks.

I'll be excluding the held for sale businesses from my comments, except where specified.

Speaker 3: I'll be excluding the health-restailed businesses from my comments except to where it's best.

Speaker 3: As we expected, adjusted revenue was down 8% due to last year's Hintawi publishing pause, which impacted Q1 revenue performance by 19 million dollars.

As we expected adjusted revenue was down 8% due to last year's Hendawi publishing pause, which impacted Q1 revenue performance by $19 million.

Speaker 3: Excluding this event, research publishing revenue in the quarter was up slightly driven by strong double digit growth and gold open F.

Excluding this event research publishing revenue in the quarter was up slightly driven by strong double digit growth in gold open access.

Speaker 3: The learning segments saw print declines in academic off-setting growth in digital course

<unk> segment saw print declines and academic offsetting growth in digital courseware.

Speaker 3: And our professional line was flat with assessment's growth of 12% offsetting a 5% decline in publishing, which reflected a best seller that we had in the price.

And our professional line was flat with assessments growth of 12% offsetting a 5% decline in publishing which reflected a best seller that we had in the prior year.

GAAP EPS was a loss of $1 67, reflecting a $103 million of impairment charges related to our held for sale University services and cross knowledge assets.

Speaker 3: GAPIPS was a loss of $1.67, reflecting $103 million of impairment charges related to our health for sale university services and cross-knowledge assets.

Speaker 3: We also recorded a $12 million restructuring charge as we executed on targeted workforce reductions and real estate consolidation in advance of our investors. Adjusted EBITDA- We also recorded a $12 million restructuring charge as we executed on targeted workforce reductions and real estate consolidation in advance of our investors.

We also recorded a $12 million restructuring charges, we executed on targeted workforce reductions and real estate consolidation in advance of our divestitures.

Adjusted EBIT declined by $7 million or 10%.

Speaker 3: Indow is evident impact was 18 million offsetting restructuring savings in learning and in corporate shared service

And that always EBITDA impact was $18 million offsetting restructuring savings and learning and in corporate shared services.

Adjusted EPS was down 37% due to higher interest expense and lower EBITDA.

Speaker 3: Adjusted EPS was down 37% due to higher interest expense in lower E.

In the quarter held for sale businesses collectively generated $84 million of revenue down, 10% and adjusted EBITDA of $6 million up from a $2 million loss a year before.

Speaker 3: In the quarter, Health For Sale Businesses collectively generated $84 million of revenue, down 10%, and adjusted even of $6 million up from a $2 million loss the year before.

Speaker 3: As indicated, we're reporting on these businesses separately and you can find this in the tables attached to our earning.

As indicated we are reporting on these businesses separately and you can find this in the tables attached to our earnings release.

Let me provide an update on research publishing given its importance and the unusual near term dynamics that have affected our year on year performance.

Speaker 3: Let me provide an update on research publishing, given it's importance and the unusual near-term dynamics that have affected our year on your performance.

First.

Speaker 3: I'll emphasize that the research market remains robust with ever increasing global R&D spend driving higher research output as old.

I'll emphasize that the research market remains robust with ever increasing global R&D spend driving higher research output as always we.

Speaker 3: We are confident and encouraged by the fundamental attribute to the business which remains strong.

We are confident and encouraged by the fundamental attributes of the business, which remains strong.

Speaker 3: At this point, the short-term COVID demand spike and snapback are mostly in the rear-view mirror, and we're returning to consistent demand growth. Researchers around the world continue to submit their articles in increasing volumes to Wiley's peer-reviewed journals, and they do so because publishing in our journals drives their career success.

At this point the short term COVID-19 demand spike in snapback are mostly in the rearview mirror and we're returning to consistent demand growth <unk>.

<unk> is around the world continue to submit their articles and increasing volumes to Wiley is peer reviewed journals and they do so because publishing in our journals drives their career success.

Speaker 3: Few things to note. First, Wiley's core publishing program is very healthy. As expected, we're seeing a rebound in publishing volume in the core Wiley portfolio with article submissions now up 4% year on year, an article output which naturally lags at...

Few things to note first wireless core publishing program is very healthy as expected, we're seeing a rebound in publishing volume in the core wildly portfolio with article submissions now up 4% year on year and article output, which naturally lag submissions up by 2%.

Speaker 3: All subject areas are showing improvement. We're also seeing improvement across important geographies, including the U.S., the U.K., and German.

All subject areas are showing improvements, we're also seeing improvement across important geographies, including the U S. The UK and Germany.

Speaker 3: As a reminder, research, absent hindawi is projected to grow 3%.

As a reminder, research absent hendawi is projected to grow 3% this year.

Another important piece of data is that why these gold open access revenue was up 36% this quarter <unk>.

Speaker 3: Another important piece of data is that Wiley's gold open access revenue was up 36% this quarter ex-hind off.

Speaker 3: Gold OA is the paid-of-published model through which research appears in OA-only...

<unk> is the pay to publish model through which research appears in OE only journals, while gold away. It makes up about 10% of our research publishing revenue. It is our fastest growing area and we expect it to drive consistent growth in the years to come.

Speaker 3: While GoldOA makes up about 10% of our research publishing revenue, it is our fastest growing area and we expected to drive consistent growth in the years to come. We continue to benefit...

We continue to benefit from the industry's mixed model environment.

Speaker 3: descriptions and pay-to-read models remain important across the industry and this will continue for the foreseeable future as a scaled player and market leader while he prospers under all of

<unk> and pay to read models remain important across the industry and this will continue for the foreseeable future.

As a scaled player in market leader widely prospers under all of these models.

Speaker 3: As you know, in fiscal 23, in Dowie generated approximately 55 million in revenue and 23 million.

As you know in fiscal 'twenty, three and Dow we generated approximately $55 million in revenue and $23 million in EBITDA.

Speaker 3: For this year, we project revenue to decline to 20 million, with a moderate loss in the...

For this year, we project revenue to decline to $20 million with a moderate loss in EBITDA for.

Speaker 3: For fiscal 25, we expect to recover most of the revenue loss.

For fiscal 'twenty five we expect to recover most of the revenue lost by fiscal 'twenty six we expect to be ahead of where we were in fiscal 'twenty three.

Speaker 3: by fiscal 26, we expect to be ahead of where we were in fiscal 23. We continue to build on our

We continue to build on our position as a top ranked journal publisher, especially noteworthy is that we received good news. This quarter was 112 out of 200 Hendawi journals were given their first journal impact factors additional 35 journals saw their impact factor scores increase.

Speaker 3: especially know where the is that we received good news this quarter when 112 out of 200 endowty journals were given their first journal impact factors. Additional 35 journals saw their impact factor scores increase. We're already seeing demanding.

We're already seeing demand increase for these newly rated journals.

Speaker 3: We also saw exceptional scores for Wiley's key journals in China.

We also saw exceptional scores for wireless key journals in China.

Speaker 3: These important developments speak to the growing quality and breadth of Wiley's publishing portfolio around the world and our long-term

These important developments speak to the growing quality and breadth of wireless publishing portfolio around the world and our long term confidence.

As indicated we've now reorganized wiley into two operating segments down from three reflecting our greater focus in a simplified structure. The two segments research and learning complement each other because they both deliver high value content and solutions and related markets and serve similar verticals. The close alignment of our businesses will allow us to.

Speaker 3: As indicated, we've now reorganized wildly into two operating segments down from three, reflecting our greater focus in a simplified structure. The two segments, research and learning, complement each other because they both deliver high-value content and solutions in related markets and serve similar verbs.

Speaker 3: The close alignment of our businesses will allow us to capture both revenue and cost.

Capture both revenue and cost synergies.

The research segment remains our primary driver of growth profit and cash flow in fiscal 'twenty. Three research represented two thirds of <unk> ongoing revenue and delivered a 35% EBITDA margin.

Speaker 3: The research segment remains our primary driver of growth, profit, and cash flow. In fiscal 23, research represented two-thirds of Wiley's ongoing revenue and delivered to 35% even a month.

Speaker 3: It has a large recurring revenue base that is 95% digital. There's no change to our reporting lines in...

It has a large recurring revenue base that is 95% digital there's no change to our reporting lines and research.

Our new learning segment includes academic and professional publishing and platforms about a third of wireless 23, adjusted revenue was generated by our learning lines.

Speaker 3: Our new learning segment includes academic and professional publishing and planning.

Speaker 3: About a third of Wiley's 23 adjusted revenue was generated by a learning

The two reporting lines under learning, our academic which is higher education publishing and professional which includes professional publishing and assessments.

Speaker 3: The two reporting lines under learning are academic, which is higher education publishing, and professional, which includes professional publishing and assessment.

Speaker 3: Learning delivered a 29% even a margin in fiscal 23. Approximately 55% of its revenue is bid-

<unk> delivered a 29% EBITDA margin in fiscal 'twenty three.

Proximately, 55% of its revenue is digital.

Speaker 3: While we'll be reporting on two segments, while his market-facing efforts will now be managed as one team led by Jay Fla-

While we will be reporting on two segments wireless market facing efforts will now be managed as one team led by Jay Flynn.

Speaker 3: You will recall that we previously had three separate teams competing for investment in mindsh...

You will recall that we previously had three separate teams competing for investment in mind share.

Now as one Wiley will better leverage our collective scale and strength in publishing and solutions.

Speaker 3: Now as one wily, we'll better leverage our collective scale and strength in publishing and solution.

Speaker 3: I'm fortunate to have a very talented and seasoned leadership team overall.

I am fortunate to have a very talented and seasoned leadership team overall.

Speaker 3: Jay has been leading our research unit and has over 25 years of experience in the global research market and in digital public.

Jay has been leading our research unit and has over 25 years of experience in the global research market and in digital publishing he has been a needle moving leader in widely since 2010 and has driven the transformation of our research business into an engine of profitable growth and innovation. He is widely recognized as an industry leader.

Speaker 3: He's been a needle-moving leader at Wiley since 2010 and has driven the transformation of our research business into an engine of profitable growth and innovation. He's widely recognized as an industry

Speaker 3: I'll point out a second change to our team structure. For the first time, we're creating unified operations team, which you can see here is led by Matt Levy.

I'll point out a second change to our team structure for the first time, we're creating unified operations team, which you can see here is led by Matt Levy.

Speaker 3: This team is charged with overseeing operations and driving operating excellence and efficiency across Wiley. The operations group includes functions such as content operations, supply chain, program management, and customer service.

This team is charged with overseeing operations and driving operating excellence and efficiency across Wiley. The operations group includes functions such as content operations supply chain program management and customer service.

Speaker 3: Beyond the obvious efficiencies, this consolidation enables. It's also driving greater speed and improved execution. One efficient infrastructure to support one market facing.

Beyond the obvious efficiencies. This consolidation enables it's also driving greater speed and improved execution, one efficient infrastructure to support one market facing team.

Speaker 3: Matt is a uniquely effective executive with decades of experience, leading digital content and platform businesses in our...

Matt has a uniquely effective executive with decades of experience, leading digital content and platform businesses in our industry. Before this he was running our academic unit, where he was very effective in helping wildly to adapt to consistent market changes, while driving significant efficiency and this allowed us to offset various revenue challenges.

Speaker 3: Before this, he was running our academic unit where he was very effective in helping Wiley to adapt to consistent market changes while driving significant efficiency. And this allowed us to offset various revenue channels.

So recapping the plan we laid out in June we're now executing a three part program to unlock value for our shareholders.

Speaker 3: So, recapping the plan we laid out in June , we're now executing a three-part program to unlock value for our shareholders. First, we're focusing wildly on publishing and the delivery of knowledge solutions in research and learning, areas where we have competitive advantage and scale.

We're focusing wildly on publishing and the delivery of knowledge solutions in research and learning areas, where we have competitive advantage and scale.

Speaker 3: Second, we're simplifying Wiley by divesting three businesses that are not core to our new more focused stress.

We're simplifying wildly by divesting three businesses that are not core to our new more focused strategy.

Third we are streamlining and right sizing widely to improve efficiency speed and execution.

Speaker 3: Third, we are streamlining and right sizing widely to improve efficiency, speed, and execution, all of which will drive material performance and margin improvement.

All of which will drive material performance and margin improvement.

These actions are substantial and realizing their benefits will not happen overnight. Nonetheless, we're moving swiftly and are already seeing positive early signs from our new focus and simplicity.

Speaker 3: These actions are substantial, and realizing their benefits will not happen overnight. Nonetheless, we're moving swiftly and are already seeing positive early signs from our new focus in InSimplicity.

Speaker 3: I'll now turn it over to Christina to discuss technical performance, cost savings initiatives, and our outlook.

Now I'll turn it over to Cristina discuss segment performance, our cost savings initiatives and our outlook.

Thank you Bryan and Hello, everyone.

Speaker 4: As discussed, we've now re-aligned the company to focus on our core strengths to improve performance while we drive greater operating capital efficiency.

As discussed we've now we align the company to focus on our core strengths to improve performance, while we drive greater operating and capital efficiency.

Speaker 4: Our leadership team is collaborating to extract the benefits of our new strategy and sharply focus organization.

Our leadership team is collaborating to extract the benefits of our new strategy and sharply focused organization.

Speaker 4: Specifically, Jay Flynn and I are working together to identifying and investing growth opportunities in research and learning, while streamlining our publishing businesses where appropriate.

Specifically, Jason and I are working together to identifying and invest in growth opportunities and research and learning, while streamlining our publishing businesses where appropriate.

Matt and I are tightly connected and driving towards a leaner organization with lighter infrastructure simplified processes and improved analytics and insight the execution of these programs is our top priority.

Speaker 4: Matt Levy and I are tightly connected on driving towards a lean organization with lighter infrastructure, simplify processes, and improved analytics and insight. The execution of these programs is our top priority. At the case, Elise STOP Naarts, and NAPI,born in recent stairs on January 18th.

Let me start with our performance in research.

Speaker 4: Research publishing revenue declined 8% this quarter, mainly due to our year over year impact of last year's endowipause.

Research publishing revenue declined 8% this quarter, mainly due to our year over year impact of last year's finale pause.

Speaker 4: After in Hendawi, research publishing revenue was up modestly.

Absent an OE research publishing revenue was up modestly.

As Brian noted, we feel good about our volume trends this quarter and our open access and Mentum God OE revenue up 36% and gold output up to 20% ex <unk>.

Speaker 4: As Brian noted, we feel good about our volume transit quarter and our open access momentum. The gold LA revenue up 36% and gold LA output up to 20% X and Dowie. We're also pleased with our growth in China, which is the fastest growing large market in research today.

We're also pleased with our growth in China, which is the fastest growing large marketing research today.

Speaker 4: Several of our new China journals received their first impact factors and were proud to say that the scores were the top of their field.

Several of our new China journals received their first impact factors and we're proud to say that the scores are at the top of their fields.

Speaker 4: We saw strong rankings and smart manufacturing and sustainable materials, as Wiley continues to build on its global leadership in material science and other areas critical to knowledge economy.

We saw strong rankings in smart manufacturing and sustainable materials as while it continues to build on its global leadership in material science and other areas critical to the knowledge economy.

Research solutions revenue declined 2% this quarter due to lower corporate spend on advertising and recruiting.

Speaker 4: Research solutions revenue declined 2% this quarter due to lower corporates spend an advertising recruiting.

Lower corporate revenue offset growth in our publishing services business, which includes services to help society partners and other publishers manage their peer review process and open access transactions.

Speaker 4: Lower corporate revenue-authent growth in our publishing services business, which includes services to help society partners and other publishers manage their peer review process and open access transactions. The underlying momentum of this business is

Your line momentum in this business remains strong.

Speaker 4: During the quarter, we find four new solutions customers and upsold an additional 20. We can murder five publishing only customers into multi-service partnerships.

During the quarter, we signed four new solutions customers and up sold an additional 20.

We converted five publishing only customers into multi service partnerships.

Speaker 4: As a reminder, the services we provide include everything from distributing research content on our delivery platforms to providing editorial and peer review support. Our partners.

As a reminder, the services. We provide include everything from distributing research content on our delivery platforms.

Providing editorial in peer review support.

Our partner pipeline is well ahead of where it was in Q4.

Speaker 4: During the quarter, we also signed up to several career center partnerships in the financial services sector.

During the quarter, we also signed up several career center partnerships in the financial services sector.

Adjusted EBITDA in research this quarter declined 18% weighed down by <unk> was $18 million EBITDA impact.

Speaker 4: Adjusted EBITDA and research is required to climb 18% way down by Hyundai who is $18 million EBITDA impact.

Speaker 4: Affluding this. Adjust an EBITEP for research was up 1%

Excluding this adjusted EBIT for research was up 1%.

Our Q1, adjusted EBITDA margin, including <unk> was 29, 8% down from 33, 8% in the prior year period.

Speaker 4: Our key one adjusted EBITDA margin including HANDALI was 29.8% down from 33.8% in the prior year period.

Of note, we expect research to have another challenging quarter in Q2 due to the remaining <unk> year over year impact.

Speaker 4: Of note, we expect research to have another challenging quarter in Q2 due to the remaining hindower year over your impact.

We expect improvement in the second half as article volumes continue to grow in comps become more favorable.

Speaker 4: We expect improvement in a second half as article volumes continue to grow and comps become more favorable.

Now onto our new learning segment.

Speaker 4: Academic publishing revenue in the quarter was down 18% and seasonally like quarter. Professional is flat.

Academic publishing revenue in the quarter was down 18% in a seasonally light quarter professional is flat.

Speaker 4: The academic decline was driven by lowers fell through for print course materials, although the rate of decline was in line with their expectations.

The academic decline was driven by lower sell through for print course materials, although the rate of decline was in line with our expectations.

Unknown Executive: Good morning, and welcome to Wiley's first quarter fiscal 2024 earnings call. As a reminder, this conference is being recorded.

Contributing to our Q1 performance was order timing in some of our key retail accounts.

Speaker 4: Contributing to our Q1 performance was order timing in some of our key retail accounts.

Speaker 4: It's important to note that Q1 is our smallest quarter for academic and fall order is typically very lumpy. All to say, Q1 is not indicative of our full year expectation.

It's important to note that Q1 is our smallest quarter for academic and saw ordering is typically very lumpy.

Brian Campbell: At this time, I'd like to introduce Wiley's Vice President of Investor Relations, Brian Campbell. Please go ahead. Thank you, and welcome everyone.

All to say Q1 is not indicative of our full year expectations.

Brian Campbell: With me today are Brian Napack, Wiley's President and CEO and Christina Van Tassell, Executive Vice President and CFL. Note that our comments and responses to your questions reflect management views as of today and will include forward-looking statements. Actual results may differ materially from those statements.

Our XIAFLEX stem courseware recorded another quarter of double digit growth up 37% over prior year.

Speaker 4: Our Zybuk STEM course where recorded another quarter of double digit growth of 37% over prior year.

Recently, we launched a new product called <unk> labs designed to help computer science students length coding skills and cloud based environment, which they would encounter on the job.

Speaker 4: Recently, we launched a new product called Xylabs designed to help computer science students learn coding skills and crowd based environment. So they would encounter on the job. Here we're applying knowledge to.

Brian Campbell: The company does not undertake any obligation to update them to reflect subsequent events or circumstances. Also, Wiley provides non-get measures as a supplement to evaluate underlying operating profitability and performance trends. These measures do not have standardized meanings prescribed by USGAP, and therefore may not be comparable to similar measures used by other companies, nor should they be viewed, also, turn this to measures under GAP. Unless otherwise noted, we will refer to non-GAP metrics found on the call, and variances are on a year-over-year basis, and will exclude health presales, assets, and the impact of currency.

Here, we're playing now is to train future railroad problem solvers.

Professional saw good growth continuing for assessments of 12% over prior year.

Speaker 4: Professional saw good growth continuing for assessments up 12% over prior year

Speaker 4: Demand remains strong as companies continue to invest in team development.

Demand remains strong as companies continue to invest and team development.

In the quarter, we signed 169, new training partners, a 22% over prior year.

Speaker 4: In the quarter, we signed 169 new training partners out 22% of a prior year.

Speaker 4: These partners are independent distributors or assessment products, delivering team effectiveness training and learning experiences to employees. In professional publishing, backless growth was off step by a softer frontmas compared to last year's unusually strong titles.

These partners are independent distributors of our assessment products delivering team effectiveness training and learning experiences to employees and professional publishing backlist growth was offset by a softer frontlist compared to last year's unusually strong titles.

Brian Campbell: Additional information is included in our finance of the SEC, a copy of this presentation, and transcript will be available on our Investor Relations webpage at investors.wiley.com.

Adjusted EBITDA for learning this quarter it was up 19% with restructuring savings is a primary driver.

Speaker 4: Adjusted EBITF for learning this quarter was at 19% with the restructuring savings as a primary driver.

Brian Napack: I'll now turn the call over to Brian Napack.

Speaker 4: Our Q1 adjusted EBITDA margin was 19.4% up from 14.9% in a prior year period.

Our Q1 adjusted EBITDA margin was 19, 4% up from 14, 9% in the prior year period.

Brian Napack: Good morning, everyone. Thanks for joining. Last quarter, we announced some important actions that we're taking at Wiley to unlock value for our shareholders. These include divesting non-core assets to focus Wiley on its greatest strengths and its biggest opportunities so that we can deliver superior financial performance. Today's Wiley is a knowledge company, a global leader in the creation and distribution of new knowledge to solve real-world problems. Speaking more practically, we're one of the world's leading publishers of top-quality research, academic, and professional content.

Turning to our cash flow balance sheet.

Speaker 4: Free cash flow for the quarter was a use of 106 million, a modest improvement from the use of 114 million in prior year.

Free cash flow for the quarter was a use of $106 million a modest improvement from a use of $114 million in prior year.

The increase is driven by lower incentive compensation payments due to fiscal 'twenty three underperformance.

Speaker 4: The increase is driven by lower incentive compensation payments due to fiscal 23 underperformance.

As a reminder, our cash flow is normally used for the first half of the year due to the timing of collections for journal subscriptions, which are concentrated in the third and fourth quarters.

Speaker 4: As a reminder, our cash flow is normally used for the first half of the year due to the timing of collections for journal subscriptions, which are concentrated in the third and fourth quarters.

Brian Napack: Complementing our role as a publisher, we're also a leading provider of digital solutions that power the knowledge ecosystem, and that specifically help people to access new knowledge and use it to achieve their goals. Research is Wiley's largest and most profitable business, and it's at the core of our knowledge company strategy. The market for new research content grows consistently, and Wiley has one of the world's leading research journal portfolios and the industry's most widely used research content delivery platform.

Speaker 4: Also note, we did not provide an adjusted cash flow metrics, so numbers include the business as health for sale or sold.

Also note we did not provide an adjusted cash flow metrics and numbers include the businesses held for sale are sold.

Capex of $24 million was even with prior year and there were no acquisitions in the quarter.

Speaker 4: TAPEX for $24 million was easing with prior year and there were no acquisitions in the quarter.

Speaker 4: Our main focus right now is executing our depositures and our reorganization, so acquisitions will not be a priority this year.

Our main focus right now is executing on our divestitures and our reorganization so acquisitions will not be a priority this year.

As Brian mentioned, we raised our dividend for the 13th straight year and our current dividend yield is now around 4%.

Speaker 4: As Brian mentioned, we raised our dividends for the 30th straight year and our current dividend yield is now around 4%.

Brian Napack: The company is fundamentally strong, maintaining a healthy balance sheet and delivering consistent cash generation. Today, over 80% of Wiley's revenue is digital, and 50% of it is recurring. Our current dividend yield is 4%, and we have now delivered 30 consecutive years of dividend increases. There aren't too companies that can say that. For over two centuries, Wiley has delivered new, high-impact knowledge to the world, and this legacy matters. The Wiley brand and our reputation help us to win and retain customers in all of our businesses.

We allocated $10 million towards share repurchases this quarter buying back 301000 shares compared to 212000 shares in Q1 of last year.

Speaker 4: We allocated $10 million towards Sherry Purchases as quarter, buying back 3101,000 shares compared to 212,000 shares in Q1 of last year.

We are in a good financial position as we navigate this transitional period.

Speaker 4: We are in a good financial position as we navigate this transitional period.

Speaker 4: Net debt to eviter ratio was 1.9% at the end of July compared to 2.1% in the prior year.

Net debt to EBITDA ratio was one 9% at the end of July compared to two 1% in the prior year.

Finally, although our expectations are modest in terms of our divestitures, we will be looking at using proceeds for general corporate purposes, including reducing debt.

Speaker 4: Finally, although our expectations are modest in terms of our divestitures, we will be looking at using proceeds for general corporate purposes, including reducing debt, investing the scale research, publishing, and solutions, and repurchasing shares.

Brian Napack: All this is to say that we are in a good position to transition to the future to win in the market and to drive increasing shareholder value. Q1 played out largely as expected. We saw a year-on-year revenue and profit declines that reflect the publishing posit in Dauy, and the lingering effect of market headwinds in researches advertising and recruiting lines, and also in academic publishing. All of this offset our continuing strong growth in open access, assessments, and in ZY books courses.

The Scout research publishing and solutions and repurchasing shares.

Onto our multi year business optimization and cost savings program.

Our recent realignment means a simpler functional organization and is an essential step towards executing our plan for a leaner and more agile workforce with improved operating efficiencies and modern infrastructure.

Speaker 4: Our recent re-alignment means a simpler functional organization and it's an essential step towards executing our plan for a linear and more agile workforce with improved operating efficiencies in modern infrastructure. This will allow us to realize cost-stornergies across our publishing business.

This will allow us to realize cost synergies across our publishing businesses.

Speaker 4: I also see opportunity to deploy our capital more effectively, where we have a clear right to win in research and publishing.

I also see opportunity to deploy our capital more effectively where we have a clear right to win in research and publishing.

Brian Napack: I'm pleased to report that we're seeing good underlying demand momentum in research where publishing volume is improving across all regions is measured by increasing article submissions and publications further we're seeing continuing gains in our journal impact factor scores which are key to driving publishing demand and continued strength and new partner signings as you saw on our recent filing we've now reorganized to reflect our new more focused strategy we reduced the number of business segments from three to two research and learning more on this later we will also be temporarily reporting on our help for sale businesses as a third segment we're working through the sale processes for university services cross knowledge and Wiley edge we found a high level of buyer engagement although the market remains challenging given the ongoing processes were not yet able to provide timing or expected proceeds as you know we are eager to complete these transactions so that we can reap the full benefits of simplification including moving even more aggressively on our cost base as we said in June fiscal 24 is a transition year for Wiley we're very confident in our direction but it will take some time to see the results the benefits are expected to materialize in the latter part of this year with full realization in fiscal 25 and 26 I'll now summarize our performance for the quarter Christina will provide more detail in her remarks I'll be excluding the help for sale businesses from my comments except to where specified as we expected adjusted revenue was down a percent due to last year's hindawi publishing pause which impacted Q1 revenue performance by 19 million dollars excluding this event research publishing revenue in the quarter was up slightly driven by strong double digit growth in gold open access the learning segments saw print declines in academic offsetting growth in digital courseware and our professional line was flat with assessments growth of 12% offsetting a 5% decline in publishing which reflected a best seller that we had in the prior year gap EPS was a loss of a dollar 67 reflecting 103 million dollars of impairment charges related to our help for sale university services and cross knowledge assets we also recorded a 12 million dollar restructuring charges we executed on targeted workforce reductions and real estate consolidation in advance of our investors adjusted EBITDA declined by 7 million or 10% in dhali's EBITDA impact was 18 million offsetting restructuring savings in learning and in corporate shared services adjusted EPS was down 37% due to higher interest expense in lower EBITDA in the quarter health for sale businesses collectively generated 84 million dollars of revenue down 10% and adjusted EBITDA of 6 million up from a 2 million dollar loss the year before as indicated we're reporting on these businesses separately and you can find this in the tables attached to our earnings release let me provide an update on research publishing given its importance and the unusual near term dynamics that have affected our year on year performance first I'll emphasize that the research market remains robust with ever increasing global R&D spend driving higher research output as old Lewis. We are confident and encouraged by the fundamental attributes of the business which remained strong.

Speaker 4: We expect meaningful performance and margin improvement from these initiatives, and I look forward to further outlining them at our investor day.

We expect meaningful performance and margin improvement from these initiatives and I look forward to further outlining them at our Investor day.

While some of this work is dependent on timing of our divestitures, we've already begun executing on these initiatives.

Speaker 4: While some of this work is dependent on timing of our investitures, we've already begun executing on his initiative.

Speaker 4: During the quarter, you made targeted workforce reductions at the corporate level and rationalize additional office space in accordance with our plan, and most of these savings are reflected in our current outlook. Additional.

During the quarter, we made targeted workforce reductions at the corporate level and rationalized additional office space in accordance with our plan and most of these savings are reflected in our current outlook.

Additional restructuring actions are still to come.

Speaker 4: As a reminder from these efforts, we expect to generate run rate savings of $100 million to fiscal 26. These savings are-

As a reminder, from these efforts, we expect to generate run rate savings of $100 million to fiscal 'twenty six.

These savings are bucket in three areas.

Speaker 4: One, reducing our corporate overhead and lying with our smaller portfolio.

One reducing our corporate overhead in line with our smaller portfolio.

Speaker 4: Our actions will reduce our revenue based by approximately 20%, so we'll be right-housing the organization to reflect.

Our actions will reduce our revenue base by approximately 20%. So we'll be right sizing the organization to reflect this.

Speaker 4: 2, eliminating stranding cost related to the vestitures, particularly in technology and corporate functions.

<unk> <unk>.

Eliminating stranded costs related to divestitures, particularly in technology and corporate functions.

Speaker 4: 3. Making operational improvements to reflect a more focused portfolio and re-aligned organization.

And three making operational improvements reflect a more focused portfolio and realigned organization.

These include eliminating departmental redundancies streamlining systems and processes consolidating our vendors and further rationalizing our real estate footprint.

Speaker 4: These include eliminating departmental redundancies, streamlining systems and processes, consolidating our vendors, and further rationalizing our real safe foot.

Speaker 4: Our reorg will also allow us to realize costneries in areas like content management, sales and go to work.

<unk> will also allow us to realize cost synergies in areas like content management sales and go to market.

Speaker 4: We will be reinvesting important on these savings into our profitable growth initiatives and upgrading systems to improve efficiency and productivity.

We will be reinvesting a portion of these savings into our profitable growth initiatives and upgrading systems to improve efficiency and productivity.

Moving on to our transition year outlook.

Speaker 4: As a reminder, our guidance excludes the business's health or sale.

As a reminder, our guidance excludes the businesses held for sale.

Speaker 4: Given two one timing issues and leading indicators, we are reaffirming our guidance.

Given Q1 timing issues and leading indicators, we are reaffirming our guidance.

Speaker 4: We continue to project research revenue to be flat, but up 3% excluding him Dowey.

We continue to project research revenue to be flat, but up 3% excluding <unk>.

Speaker 4: We expect a better back half of the year as volumes continue to improve and comparisons become more favorable. We look forward to putting the Hendawi disruption behind us and returning research to grows in fiscal year 25 and 20.

We expect a better back half of the year as volumes continuing to improve and comparisons become more favorable we look forward to putting the entirely disruption behind us and returning research to growth in fiscal year, 'twenty five and 'twenty six.

And learning academic remains challenged by lower demand for print products offsetting continued growth in digital content courseware and assessment.

Speaker 4: In learning, academic remains challenged by lower demand for print products, offsetting continued growth in digital content, coursewear and SS.

Speaker 4: We continue to anticipate a low-stingled digit decline for the segment in fiscal 24.

We continue to anticipate a low single digit decline for this segment in fiscal 'twenty four.

Adjusted EBITDA, excluding divestitures is anticipated to be in the range of $305 million to $330 million.

Speaker 4: Adjust an EBITDA excluding the Vesitures is anticipated to be in the range of $305 to $30 million.

This puts EBIT margin in the range of 19% to 20% down from 23, 3% in fiscal 'twenty three.

Speaker 4: This puts EBITDA margin in the range of 19 to 20% down from 23.3% in fiscal 23.

To refresh we expect to more than recover our fiscal 'twenty three EBITDA margin of 23, 3% as we exit fiscal 2004 and expand from there.

Speaker 4: To refresh, we expect to more than recover our fiscal 23 EBITM margin of 23.3% as we exit fiscal 24 and expand from there.

Speaker 4: On Adjusted EPS, we're anticipating a range of $2.5, $2.40.

On adjusted EPS, we are anticipating a range of $2 five $2 40.

We have 42 sales of non operational items weighing on EPS, including 21, a tax impact 11% of higher pension expense and 10 tens of higher interest expense.

Speaker 4: We have 42 cents of non-operational items laying on EPS, including 21 cents of tax impact, 11 cents of higher pension expense, and 10 cents of higher interest expense.

Again, we expect that in theory publishing costs to continue to weigh on our year over year performance in Q2 before comparisons become more favorable in Q3.

Speaker 4: Again, we expect the Hundawi publishing pause to continue the way on our year-over-year performance in Q-10 before comparisons become more favorable in Q-3.

Speaker 4: Which regard to free cashflow, our visibility remains limited.

With regard to free cash flow our visibility remains limited.

We are working through our divestitures and can't adequately protect at the timing and scope of our restructuring programs.

Speaker 4: We are working through our investitures and can adequately project at the timing and scope of our restructuring program.

Speaker 4: As I just noted, we don't report an injustice-free cash or a natural metric.

As I just noted we don't report an adjusted free cash flow metric.

Speaker 4: For these reasons, we're unable to provide a meaningful free cashflow outlook at this time.

For these reasons, we are unable to provide a meaningful free cash flow outlook at this time.

Speaker 4: That said, you do expect it to be deteriorally lower in this transition year, given the combination of lower projected cash earnings, significant restructuring payments, and higher interest payments.

That said, we do expect it to be materially lower in this transition year, given the combination of lower projected cash earnings.

Brian Napack: At this point, the short-term COVID demand spike and snapback are mostly in the rear view mirror, and we're returning to consistent demand growth. Researchers around the world continue to submit their articles in increasing volumes to Wiley's peer-reviewed journals, and they do so because publishing in our journals drives their career success. Few things to note. First, Wiley's core publishing program is very healthy. As expected, we're seeing a rebound in publishing volume in the core Wiley portfolio with article submissions now up 4% year on year, an article output which naturally lags submissions up by 2%.

Significant restructuring payments and higher interest payments.

These are mainly temporary issues in this year a structural change.

Speaker 4: As we make our way into fiscal 25 and 26, we're fully confident in our margin trajectory and in the cash generation of record business.

As we make our way into fiscal 'twenty five 'twenty six we're fully confident in our margin trajectory and in the cash generation of our core business.

Speaker 4: We will be providing a fiscal 26 free cash flow target at our investor day. And with that.

We will be providing our fiscal 'twenty six free cash flow target at our Investor day.

And with that I'll pass it back to Brian .

Speaker 3: Thanks, your Cena, to summarize before I open it up for quest.

Thanks, Kristina to summarize before I open it up for questions.

Speaker 3: Q1 performance was largely what we expected, and we are encouraged by the continuing underlying strength and increasing momentum in research following the unusual dynamics of the past.

Q1 performance was largely what we expected and we are encouraged by the continuing underlying strength and increasing momentum in research. Following the unusual dynamics over the past year. We are actively simplifying the company structure to reflect our more focused strategy and drive efficiency.

Brian Napack: All subject areas are showing improvement. We're also seeing improvement across important geographies, including the US, the UK, and Germany. As a reminder, research Epson Hindawi is projected to grow 3% this year. Another important piece of data is that Wiley's Gold Open Access Revenue was up 36% this quarter, X Hindawi. Gold OA is the paid-of-published model through which research appears in OA-only journals. While Gold OA makes up about 10% of our research publishing revenue, it is our fastest growing area and we expect it to drive consistent growth in the years to come.

Speaker 3: We are actively simplifying the company structure to reflect that our more focused strategy and drive efficiency.

Speaker 3: Going forward, we'll have one market facing team enabling greater coordination of product and go to market F.

Going forward, we will have one market facing team, enabling greater coordination of product and go to market efforts.

Speaker 3: This group will be supported by one global operations group, enabling efficiency and driving operational excellence across the

This group will be supported by one global operations group, enabling efficiency and driving operational excellence across the company.

Speaker 3: We're now in mid-process in our efforts to divest several of our non-corest.

We're now in mid process in our efforts to divest several of our noncore assets.

Processes are going well with good buyer engagement, although market is challenging.

Speaker 3: Processes are going well with good buyer engagement, although market is channel

Fiscal 'twenty four remains characterized as a transition year for Wiley as we work through these substantial actions and as our core drivers rebound.

Speaker 3: Fiscal 24 remains characterized as a transition year for Wiley as we work through these substantial actions and as our core drivers rebound.

Brian Napack: We continue to benefit from the industry's mixed model environment. Subscriptions and pay-to-read models remain important across the industry and this will continue for the foreseeable future, as a scaled player and market leader, Wiley prospers under all of these models. As you know, in fiscal 23, Hindawi generated approximately 55 million in revenue and 23 million in EBITDA. For this year, we project revenue to decline to 20 million, with a moderate loss in EBITDA.

Speaker 3: We expected deliver performance gains in margin acceleration at fiscal 25.

We expect to deliver performance gains in margin acceleration in fiscal 'twenty five 'twenty six.

As a reminder, we're hosting an investor day on Thursday October 12 at our corporate headquarters in Hoboken, New Jersey.

Speaker 3: As a reminder, we're hosting an investor day on Thursday October 12th at our corporate headquarters in Hoboken New Jersey.

Speaker 3: At that event, we'll share our Go Forward vision for Wiley, provide detail on our research and learning businesses, outline our critical operation improvement initiatives, and we'll introduce fiscal 26 financial tasks.

At that event, we will share our go forward vision for Wiley provide detail on our research and learning businesses outlined are critical operation improvement initiatives and will introduce fiscal 'twenty six financial targets.

Brian Napack: For fiscal 25, we expect to recover most of the revenue lost, and by fiscal 26, we expect to be ahead of where we were in fiscal 23. We continue to build on our position as a top-ranked journal publisher. Especially, no worthy is that we received good news this quarter when 112 out of 200 Hindawi journals were given their first journal impact factors, additional 35 journals saw their impact factor scores increase. We're already seeing demand increase for these newly rated journals. We also saw exceptional scores for Wiley's key journals in China. These important developments speak to the growing quality and breadth of Wiley's publishing portfolio around the world and our long-term confidence.

Speaker 3: After the presentations which will run from 9 to 12 noon Eastern, we will hold a network

After the presentations, which will run from nine to 12 noon eastern.

We will hold a networking lunch for all attendees.

Speaker 3: As always, I want to thank our global colleagues for their tireless work and perseverance, their dedication to each other, and to this very special company. I'll now open the floor.

As always I want to thank our global colleagues for their tireless work and perseverance their dedication to each other and to this very special company.

Now open the Florida comments and questions.

At this time I would like to remind everyone in order to ask a question Press Star then the number one on your telephone keypad and your first question comes from the line of Daniel Moore from CJS Securities. Your line is open.

Speaker 1: At this time, I would like to remind everyone in order to ask a question. Press star, then the number one on your telephone keypad. And your first question comes from a line of Daniel Moore from CGS Securities. Your line is open.

Good morning, Brian morning, Christina sorry to the jump off mute there.

Speaker 2: Good morning, Brian . Morning, Christina. Sorry, I just had to jump off mute there. Maybe start with research. Appreciate commentary. Just kind of remind us where we are. What is gold OA generally as a percentage of research revenue now? And maybe just... Just...

Brian Napack: As indicated, we've now reorganized Wiley into two operating segments bound from three, reflecting our greater focus in a simplified structure. The two segments research and learning complement each other because they both deliver high-value content and solutions in related markets and serve similar verticals. The close alignment of our businesses will allow us to capture both revenue and cost synergies. The research segment remains our primary driver of growth, profit, and cash flow. In fiscal 23, research represented two-thirds of Wiley's ongoing revenue and delivered to 35% even a margin.

Let me start with research I appreciate the commentary just kind of remind us where we are what is gold OE generally as a percentage of research revenue now and maybe just what can you say now that we're a little bit further removed from the pause in publishing you experienced in the back half of last year.

Speaker 2: Can you say now that we're a little bit further removed from the pause in publishing you experience in the back half of last year? Was it simply tough comps versus the pandemic driven spike where there are other factors and just your confidence and...

Or was it simply tough comps.

Versus the pandemic driven spike.

There are other factors and just your confidence in that improvement as we look to H two.

Speaker 3: First of all, thanks for joining the questions as always.

Yes, Dan.

First of all thanks for joining the questions as always.

Brian Napack: It has a large recurring revenue base that is 95% digital. There's no change to our reporting lines in research. Our new learning segment includes academic and professional publishing and platforms. About a third of Wiley's 23 adjusted revenue was generated by a learning... The two reporting lines under learning are academic, which is higher education publishing and professional, which includes professional publishing and assessments. Learning delivered a 29% even a margin in fiscal 23, approximately 55% of its revenue is digital.

Yeah.

Youre starting in the right place is really important when we look at wildly to understand that we've just refocused our our strategy and our company around around the research business and the core of that is research publishing business.

Speaker 3: You're starting the right place. It's really important when we look at Wiley and understand that we've just refocused our strategy and our company around the research business and the core of that is research publishing business and the core of the future and future growth and profitability will come from OAS. So we're starting in the right place. So Gold OA now is around 10% with OA overall of 10% of our research revenue.

For the future and future growth and profitability will come from my way. So we're starting in the right place.

So gold away now is around 10% with OE overall.

10% of our research revenues.

Speaker 3: And overall, though, a is around the third of our publishing revenues, I guess high 20s of our overall research revenue, 27-28 percent of our overall research revenue.

And.

Overall OE is around a third.

Brian Napack: While we'll be reporting on two segments, Wiley's market facing efforts will now be managed as one team led by Jay Flynn. You will recall that we previously had three separate teams competing for investment in mind share. Now as one Wiley will better leverage our collective scale and strength in publishing and solutions. I'm fortunate to have a very talented and seasoned leadership team overall. Jay has been leading our research unit and has over 25 years of experience in the global research market and in digital publishing.

Of our of our publishing revenues I guess in high <unk> of our overall research revenue, 27%, 28% of our overall research revenues. So that's where we stand those areas are growing very nicely very rapidly.

Speaker 3: So that's where we stand. Those areas are growing very nicely, very rapidly.

Speaker 3: And I think we are saw growth of 36% or something, excluding Hindawi of gold OA, and overall OA is growing very nicely as well. So what we're seeing overall is a return after the COVID up and down and changes. It was a very unusual period for us. It returned to the normal growth patterns, which is what we expected to see and what we are seeing across the business.

And I think we are saw growth of 36% or something excluding hendawi of gold OE and overall OE is growing very nicely as well.

So what we're seeing.

<unk> is a return after the COVID-19.

Brian Napack: He's been a needle moving leader at Wiley since 2010 and has driven the transformation of our research business into an engine of profitable growth and innovation. He's widely recognized as an industry leader. I'll point out a second change to our team structure.

Up and down in and changes. So it was a very unusual period for us a return to the normal growth patterns, which is what we expected to see and what we are seeing across the business.

Speaker 3: So we're doing very well in the high growth markets, like China and India. We're doing very well across the major Western markets, US, UK, Germany. And so wherever they were during the COVID period, they're now returning to where to normalcy. And that means growth. So in every area, as I said earlier in the comments, in the prepared comments.

So we're doing very well in the high growth markets like China, and India, we're doing very well across.

Brian Napack: For the first time, we're creating unified operations team, which you can see here is led by Matt Levy. This team is charged with overseeing operations and driving operating excellence and efficiency across Wiley. The operations group includes functions such as content operations, supply chain, program management and customer service. Beyond the obvious efficiencies this consolidation enables, it's also driving greater speed and improved execution. One efficient infrastructure to support one market facing team. Matt is a uniquely effective executive with decades of experience leading digital content and platform businesses in our industry. Before this, he was running our academic unit where he was very effective in helping Wiley to adapt to consistent market changes while driving significant efficiency, and this allowed us to offset various revenue challenges.

Across the major western markets U S U K, Germany, and so wherever they were during the Covid period. They are now returning to where to normalcy and and that means growth.

So in every area as I said earlier in the comments in the prepared comments.

Speaker 3: In every region in all of our major subject areas, we're seeing a return to volume growth and revenue growth. Obviously, there's many dynamics that go on in this market, but it's exactly what we wanted to see. It's exactly what we expected to see, and it's what we've been talking about for a while. So that should give you a foundation.

In every region and all of our major subject areas, we're seeing a return to volume growth.

And revenue growth.

Obviously, there's many dynamics that go on in this market.

But it's exactly what we wanted to see it is exactly what we expected to see and it's what we've been talking about for a while so that should give you a foundation.

Speaker 2: very helpful. It's thing with research, but just to switch shifting to Hendawi, just clarify, I think you said it was an $18 million impact, that year over year impact, or was it a loss of Baycune more.

Very helpful.

Staying with research, but just to switch shifting to hendawi.

Brian Napack: So, recapping the plan we laid out in June, we're now executing a three-part program to unlock value for our shareholders. First, we're focusing Wiley on publishing and the delivery of knowledge solutions in research and learning, areas where we have competitive advantage and scale. Second, we're simplifying Wiley by divesting three businesses that are not core to our new, more focused strategy. Third, we are streamlining and right-sizing Wiley to improve efficiency, speed and execution, all of which will drive material performance and margin improvement. These actions are substantial and realizing their benefits will not happen overnight, nonetheless we're moving swiftly and are already seeing positive early signs from our new focus in simplicity.

Just to clarify I think you said it was an $18 million impact does that year over year impact or was it.

A loss of $18 million in this quarter.

Speaker 4: It was a loss, high-dance, Christina. It was a loss, quarter.

It was a loss.

Christina and with the last quarter.

Got it that's helpful.

Speaker 2: got it, it's helpful. And just to provide a little context.

And just started providing context.

Speaker 3: And a final little context, it's important to remember that while we were experiencing significant growth coming out of Hintawi, Hintawi represents low single digits, two, three percent of our research revenue.

To provide a little context, it's important to remember that while we were experiencing significant growth coming out of Hendawi and now we represents low single digits to 3% of our research revenue. So we just need to put that in context, we certainly.

Speaker 3: So we just need to put that in context. We certainly lament the loss of that revenue. And now we're starting to see the metrics come back to where we want them to see and to be and we'll see that coming back. But I just always want to put that in context of our overall research business. We're talking about a low-single digits number.

Christina Van Tassell: I'll now turn it over to Christina to discuss technical performance, our cost savings initiatives, and our outlook.

Lament the loss of that revenue and now we're starting to see the metrics come back to where we want them to see them to be and we'll we'll see that coming back, but I just always want to put that in context.

Christina Van Tassell: Thank you, Brian, and hello, everyone. As discussed, we've now re-aligned the company to focus on our core strengths to improve performance while we drive greater operating and capital efficiency. Our leadership team is collaborating to extract the benefits of our new strategy and sharply focus organization. Specifically, Jay Flynn and I are working together to identify and invest in growth opportunities and research and learning while streamlining our publishing businesses where appropriate. Matt Levy and I are tightly connected on driving towards a linear organization with lighter infrastructure, simplify processes, and improved analytics and insight. The execution of these programs is our top priority.

Overall research business, we're talking about low single digits number.

Of course.

Speaker 2: Of course, and I know you gave the numbers, Christina, but just remind us what sort of embedded for Handao-E in terms of EBITDA loss for the full year or 24 guide.

And I know you gave the numbers Christina.

But just.

Just what's sort of embedded for Hendawi in terms of EBITDA loss for the full year 'twenty four guide should we think about the jumping off point for 25.

Sure So as I talked on the call revenues for the full year is expected to decline.

Speaker 4: Sure. So as you know, they talked about the call revenues for the full year expected to decline about 55 million in 23 to 20 million this year and it will be a modest EBITDA loss for the full year and we'll see the first you have this quarter and next quarter have toughs and tough comps and recovering the back half of the year.

About 55 million.

Sure.

23% to $20 million this year and it'll be a modest EBITDA loss for the full year and we'll see.

Christina Van Tassell: Let me start with our performance in research. Research publishing revenue declined 8% this quarter, mainly due to our year-over-year impact of last year's hendowee pause. Absent hendowee, research publishing revenue was up modestly. As Brian noted, we feel good about our volume trends this quarter and our open access momentum, the gold OA revenue of 36% and gold OA output up to 20% ex-hendowee. We're also pleased with our growth in China, which is the fastest growing large-market in research today.

First this quarter and next quarter have talked some top comps and recover in the back half of the year.

Declined from 55 declined by 250 <unk> yeah.

Speaker 3: You have declines from 55, not declined by 55. 55, he had to have money, yeah.

Yep.

Perfect.

Speaker 3: What we're expecting to see then, because I know it's the next question is where we're gonna go with it. So, and we're executing our revitalization plan and it's coming along nicely. We expect to see most of the bad comparison to be through in the first half. And then as we go through 25 and into 26, we'll see ourselves get back to and above where we were before.

We were expecting to see that because I know it has the next question is where are we going to go with it and so now we were.

We're executing our.

Our revitalization plan and it's coming along nicely, we expect to see.

Christina Van Tassell: Several of our new China journals received their first impact factors and were proud to say that the scores were the top of their fields. We saw strong rankings in smart manufacturing and sustainable materials, as Wiley continues to build on its global leadership in material science and other areas critical to the knowledge economy. Research solutions revenue declined 2% this quarter due to lower corporates spent on advertising and recruiting. Lower corporate revenue offset growth in our publishing services business, which includes services to help society partners and other publishers manage their peer review process and open access transactions.

Most of the.

The bad comparison to be through in the first half and then as we go through 25% to 26, we'll see ourselves get back to and above where we were before.

Speaker 3: So we're not going to get it all back right away because you know we're coming conservatively to do it the right way and it takes a little while to do the lags in the business. But we expected to be a, to return to its contribution to Wiley's growth through 25 and be above where it was in 20.

So we're not going to get it all back right away because you know we're coming we're coming conservative way to do it the right way and it takes them a while due to the lags in the business, but we expect it to be to return to its contribution to <unk> growth through 'twenty.

<unk> 25, and B b above where it was in 'twenty six.

Christina Van Tassell: The underlying momentum of this business remains strong. During the quarter, we find four new solutions customers and upsold an additional 20. We converted five publishing only customers into multi-service partnerships. As a reminder, the services we provide include everything from distributing research content on our delivery platforms to providing editorial and peer review support. Our partner pipeline as well ahead of where it was in C4. During the quarter, we also find up several career-setter partnerships in the financial services sector.

Perfect.

Speaker 3: Be both. 20s, 26, be above where it was in 23. So I want to be clear about my words. Right, right in terms of the.

In 2026 be above where it was in 'twenty three I just wanted to be clear about my words right alright in terms of the.

The progression okay.

Speaker 2: the progression. Okay, and then shifting to learning, I think overall you said 55% was digital. Starting with academic, which took obviously another leg down this quarter. What's the mix there? Print versus digital. I just talk about, I understand, the 18% is driven by timing, but it continues over time to work its way down. Yeah, yeah. Yeah, yeah. I think about the secular opportunity there along over the next three to...

And then shifting to learning I think overall, you said, 55% with digital.

Just starting with academic which took obviously another leg down this quarter, what's the mix there print versus digital and.

Just talk about I understand the 18% is driven by timing.

But it continues over time to kind of work its way down.

Christina Van Tassell: Adjusted EBITDA and research this quarter declined 18% way down by hendowee's $18 million EBITDA impact. Efluting this, adjusted EBITDA for research was up 1%. Our key one adjusted EBITDA margin including hendowee was 29.8% down from 33.8% in the prior year period. Of note, we expect research to have another challenging quarter in Q2 due to the remaining hendowee year over your impact. We expect improvement in the second half as article volumes continue to grow and comps become more favorable.

Yes.

Secular opportunity there along over the next three to five years you bad part part of it is timing its not all timing right. We're seeing print continue with kantar.

Speaker 3: You bet, part of it is timing, it's not all timing, right? We're seeing print continuous decline. What happened in the quarter was a combination of a very small quarter at a very unusual time of the year for those businesses and is not representative of the full year. But nonetheless, beyond timing, which is its own issue,

Continuous decline what happened in the quarter was a combination of a very small quarter in a very unusual time of the year for those businesses.

Representative of the full year, but nonetheless.

Beyond timing, which is which.

As its own issue.

We.

Speaker 3: We continue to expect this you slow to climb. Print now represents about 40% of that business with digital being close to 50%.

We continue to expect to see a slow decline print now represents about 40% of that business with dish.

Christina Van Tassell: Now on to our new learning segment. Academic publishing revenue in the quarter was down 18% in a seasonally light quarter. Professional was flat. The academic decline was driven by a lower sell-through for print course materials, although the rate of decline was in line with our expectations. Contributing to our Q1 performance was order-timing in some of our key retail accounts.

Digital being.

Close to 50% and <unk>.

Speaker 3: And the digital continues to grow for us, as you know. So that transition continues to go on. We expect it to continue to go on. This quarter is not reflective of that progression, but we do expect to continue the migration from one to another with the digital revenue basically offsetting the print icon.

And the digital continues to grow for us as you as you know so that transition continues to go on we expect it to continue to go on snack.

Not this quarter is not reflective of that progression, but we do expect.

Christina Van Tassell: It's important to note that Q1 is our smallest quarter for academic and fall order is typically very lumpy. All to say, Q1 is not indicative of our full-year expectations. Our Zybrook STEM course where recorded another quarter of double-digit growth of 37% over prior year. Recently, we launched a new product called Zylabs designed to help computer science students learn coding skills in a cloud-based environment which they would encounter on the job. Here, we're applying knowledge to train future real-world problems lovers.

Back to continue the migration from one to another with.

Digital revenue basically offsetting.

The print decline.

And that digital revenue that is.

Speaker 2: save for quarters like this one and timing. You know, what are you experiencing in terms of growth and you know, do you expect that to inflect higher or just kind of...

Save for quarters like this one and the timing.

What are you experiencing in terms of growth and do you expect that to inflect higher or just kind of remained steady.

We expect it to remain steady we have pockets of very strong growth, where we are where we have fantastic products like <unk> I think <unk> is up mid thirties, if I'm not.

Speaker 3: We expect it to remain steady. We have pockets of very strong growth where we have fantastic products like Zibok.

Christina Van Tassell: Professional saw good growth continuing for assessments of 12% over prior year. Demand remains strong as companies continue to invest in team development. In the quarter, we signed 169 new training partners out 22% of a prior year. These partners are independent distributors or assessment products, delivering team effectiveness training and learning experiences to employees. In professional publishing, backless growth was offset by a softer frontless compared to last year's unusually strong titles. Adjusted EBITF for learning this quarter was at 19% with the restructuring savings as a primary driver. Our key one adjusted EBITF margin was 19.4% up from 14.9% in a prior year period.

Speaker 3: I think Zaybooks is up mid-30s. If I'm not, I should say to be imprecise, it is up mid-30s. In the balance of it, it's growing in proportion to the adoption of those products in the marketplace, which is more of a low single digit kind of.

I should say to be precise it is up.

Mid <unk> and the balance of it is growing in proportion to the adoption of of.

Of those products in the marketplace, which is more of a low single digit kind of.

Speaker 3: of a pace now we hope to continue that more than offset the print declines. So we're not going to-

The pace now we hope to continue that more than offset the print declines. So we're not going to see I want to say something generally about that business because I think it's very important from a expectation setting perspective, we don't expect the academic segment.

Speaker 3: I want to say something generally about that business because I think it's very important from an expectation setting perspective.

Speaker 3: We don't expect the academic segment.

Speaker 3: to be a driver of growth for Wiley in the future. It'll do okay, it'll, you know, it'll keep pace.

To be a driver of growth for Wiley in the future you don't do okay.

We will keep pace with inflation with what with digital offsetting print, but what it really represents for US is a very solid business with good profitability characteristics and good cash generation characteristics that contributes to the overall empire as we see as.

Speaker 3: with inflation, with what with digital off-sending print, but what it really represents for us is the very solid business with good profitability characteristics and good cash generation characteristics that contributes to the overall empire. As we see

Christina Van Tassell: Turning to a cashful and balance sheet, free cash flow for the quarter was a use of 106 million, a modest improvement from a use of 114 million in a prior year. The increase is driven by lower incentive compensation payments due to fiscal 23 underperformance. As a reminder, our cash flow is normally used for the first half of the year due to the timing of collections for journal subscriptions, which are concentrated in the third and fourth quarters.

Speaker 3: As we move toward a one-wily notion, we'll start to see some real benefits from expense savings as we combine things like content platforms and sales forces and other things like that. I shouldn't say combine a line. Is it better word than combine?

As we move toward a one widely notion will start to see some real benefits from.

From expense savings as we combined things like content platforms and sales forces and other things like that.

I shouldn't say combine align is a better word than combine but what we're looking for is one strong operating infrastructure supporting the whole business and we should expect to see some revenue synergies as well out of that as for example, our research author who is a Phd at a university.

Christina Van Tassell: Also note, we did not provide an adjusted cash flow metric, so numbers include the businesses held for sale or sold. Cat X of $24 million was eased with prior year and there were no acquisitions in the quarter.

Speaker 3: But what we're looking for is one strong operating infrastructure supporting the whole business and we should expect to see some revenue synergies as well out of that. As for example, a research author who is a PhD at a university publishes with us their books which they always do and need to do.

Christina Van Tassell: Our main focus right now is executing our net visitors and our reorganization so acquisitions will not be a priority this year. As Brian mentioned, we raised our dividend for the 30th straight year and our current dividend yield is now around 4%. We allocated $10 million towards Sherry Purchases as quarter, buying back 301,000 shares compared to 212,000 shares in C-1 of last year. We are in a good financial position as we navigate this transitional period.

Publishes with us their box, which they always do and need to do so we spent to see some of that as well again I'm trying to provide the overall context for the role of academic and our expectations going forward. So that we know where our growth is going to come from where our profitability is going to come from.

Speaker 3: So we spend to see some of that as well. Again, I'm trying to provide the overall context for the role of academic and our expectations going forward so that we know where our growth is gonna come from, where our profit is built.

Speaker 2: Absolutely, and if you wouldn't mind, kind of the same outlook for a professional.

Absolutely and if you wouldn't mind kind of the same outlook for professional.

Yes professional is a combination of our professional publishing which is mostly books in both print and digital format and our assessments business or what we call internally our team development business.

Speaker 3: Yeah, professional is a combination of our professional publishing, which is mostly books in both Print and Digital format, and our assessments business, or what we call internally our team development business.

Christina Van Tassell: Net debt to eviter ratio was 1.9% at the end of July compared to 2.1% in the prior year. Finally, although our expectations are modest in terms of our divestitures, we will be looking at using proceeds for general corporate purposes, including reducing debt, investing the scale, research, publishing, and solutions, and repurchasing shares.

Speaker 3: And the, as a group, we expect that to, again, contribute a modest growth a little bit more than you would expect out of the academic segment and very good profitability. I guess it's a similar story. We have certain areas, such as our team development business where we have real strength and brand and competitive advantage and great profitability characteristics.

And.

As a as a group we expect that to again contribute.

Modest growth.

More than than you would expect out of the academic segment and very good profitability.

Christina Van Tassell: Onto our multiyear business optimization cost savings program. Our recent re-alignment means a simpler functional organization and it's an essential step towards executing our plan for a linear and more agile workforce with improved operating efficiencies in modern infrastructure. This will allow us to realize cost strategies across our publishing businesses. I also see opportunities to deploy our capital more effectively, where we have a clear right to winning research and publishing. We expect meaningful performance and margin improvement from these initiatives, and I look forward to further outlining them at our investor day.

A similar story, we have certain areas such as our team development business, where we have real strength and brand and competitive advantage and great profitability characteristics that.

Speaker 3: That tends to be a smaller part or that is a smaller part of the business called a one-third of the professional business

That tends to be a smaller part of that is a smaller part of the business call. It one third of the professional business. The book business continues to grow as the book business grows and we again like that business, but we don't expect outsized growth out of our book publishing our book publishing as professional book publishing it has consistent demand.

Speaker 3: The book business continued to grow as the book business grows. And we again, like that business, but we don't expect outsized growth out of our book publishing. Our book publishing is professional book publishing. It has consistent demand. We do very well in it. We are probably the world's leader in professional book publishing. I say probably one of our competitors recently backed off. It's a commitment to the area. So now we're probably we're definitely a leader in that area.

We do very well in it we're probably the world's leader in professional book publishing I would say probably one of our competitors recently backed office.

Christina Van Tassell: While some of this work is dependent on timing of our divestitures, we've already begun executing on these initiatives. During the quarter, we made targeted workforce reductions at the corporate level and rationalized additional office space in accordance with our plan, and most of these savings are reflected in our current outlook.

It's a commitment to the area. So now we are definitely a leader in that area and so but again, we expect it to be a modest growth business, but with very good.

Speaker 3: And so we, but again, we expected to be a modest growth business, but with very good profit.

Profit characteristics does that is that enough on that Dan I'm happy to go into more detail.

Christina Van Tassell: Additional restructuring actions are still to come. As a reminder from these efforts, we expect to generate run rate savings of $100 million to fiscal 26. These savings are bucketed in three areas. One, reducing our corporate overhead in line with our small report portfolio. Our actions will reduce our revenue based by approximately 20%, so we'll be right sizing the organization to reflect this. Two, eliminating stranding costs related to the vestitures, particularly in technology and corporate functions.

Speaker 3: Is that enough on that, Dan? I'm happy to go in more detail. Yep.

Speaker 2: Now that helps one or two more, and I'll let you up the hook here. But anything you might say just in terms of preview of what, not numbers, but what general kind of strategy you might hope to convey at the upcoming investor day. And I...

No that helps one or two more and I'll, let you off the hook here, but.

Anything you might say just in terms of preview of what not numbers, but what general.

Strategy, you might hope to convey at the upcoming Investor day in October .

Speaker 3: Yeah, it's a great question and I really am looking forward to seeing lots of people at our investor day. I would say it's, I would say what I've said before.

Yes, it's a great question and I really am looking forward to seeing lots of people at the at our Investor Day.

I'd say, it's I would say what I've said before.

Christina Van Tassell: And three, making operational improvements to reflect a more focused portfolio and realigned organization. These include eliminating departmental redundancies, streamlining systems and processes, consolidating our vendors and further rationalizing our real safe footprint. Our reorg will also allow us to realize cost synergies in areas like content management, sales and go to market. We will be reinvesting a portion of these savings into our profitable growth initiatives and upgrading systems to improve efficiency and productivity.

I wouldn't expect from widely a big reveal of some.

Speaker 3: I wouldn't expect from Wiley a big reveal of some unfamiliar or orthogonal strategy giving a brand new growth area to us. We believe deeply in the businesses we're in, starting with our research, publishing business, building on it with our knowledge solutions business and supported by our consistent learning businesses. the

Unfamiliar or.

Orthogonal strategy.

Giving a brand new growth area to us we believe deeply in the businesses. We're in starting with our research publishing business.

Building on it with our knowledge solutions business and supported by our consistent.

Our consistent learning businesses.

Particularly the.

Christina Van Tassell: Moving on to our transition year outlook. As a reminder, our guidance excludes the business's health or sale. Given two one-time issues and leading indicators, we are reaffirming our guidance. We continue to project research revenue to be flat, but up 3% excluding in Dowie. We expect a better back half of the year as volumes continue to improve and comparisons become more favorable. We look forward to putting the in Dowie disruption behind us and returning research to growth in fiscal year 25 and 26.

Publishing businesses.

Speaker 3: And we believe that there is significant opportunity due to the endemic characteristics and in the case of the research business, endemic growth characteristics of those businesses.

And we believe that there is significant opportunity due to the endemic.

Jurisdiction in the case of the.

The research business and the growth characteristics of those businesses.

Speaker 3: And we believe that there are additional adjacencies that we've spoken about for the most part. And areas like partner solutions, areas like the way that we can expand our publishing portfolio by building our brands and so forth.

And we believe that there are additional adjacencies that we've spoken about for the most part Dan areas like partner solutions areas like.

Like the way that we can expand our publishing portfolio.

Christina Van Tassell: In learning, academic remains challenged by lower demand for print products, offsetting continued growth in digital content, core swear and assessments. We continue to anticipate a low-stangle digital decline for the segment in fiscal 24. Adjust an EBITDA excluding the vassages is anticipated to be in the range of 305 to $330 million. This puts EBITDA margin in the range of 19 to 20% down from 23.3% in fiscal 23. To refresh, we expect to more than recover our fiscal 23 EBITDA margin of 23.3% as we exit fiscal 24 and expand from there.

By building, our brands and so forth.

Speaker 3: We believe that those areas provide more than enough growth at very attractive financial characteristics, mean profitability and cash flow characteristics.

We believe that those areas provide more than enough growth at very attractive financial characteristics mean profitability and cash flow characteristics.

Speaker 3: to provide significant opportunity for us and most importantly to generate value for shareholders. But there's an internal part of our strategy that's critical as well.

To provide.

A significant opportunity for us and most importantly.

To generate.

<unk> for shareholders, but there is there is a internal part of our strategy that is critical as well, which I would summarize as just saying operational excellence that can result from focus and simplicity and I know. These are these are our themes we've talked about before we're well on our way we just.

Speaker 3: which I would summarize is just saying, operational excellence that can result from focus and simplicity. And I know these are themes we've talked about before. We're well on our way. We just...

Christina Van Tassell: On adjusted EPS, we are anticipating a range of $2.5 to $2.40. We have 42 cents of non-operational items laying on EPS, including 21 cents of tax impact, 11 cents of higher pension expense, and 10 cents of higher interest expense. Again, we expect the in Dowie publishing policy to continue away on our year-over-year performance in KeyTin before comparisons become more favorable in Q3. Which, regard to free cash flow, our visibility remains limited.

Speaker 3: We just came through a reorganization of a company that opens up a lot of those opportunities and we are going to execute it. We've just appointed a new head of operations as we talked about in our remarks who's dedicated to driving that operational excellence. So the internal part of Wiley's strategy is just as important as our external part of the strategy because that's what allows us to improve our operating leverage, which is what we all want to see. So

We just came through a reorganization of the company that opens up a lot of those opportunities.

And we are going to execute it we've just appointed a new head of operations as we talked about in our remarks who's dedicated to driving that operational excellence. So the internal part of Wiley strategy is just as important as our external part of the strategy because that's what allows us to improve our operating leverage which is what we are.

We'll want to see.

Perfect last one for me maybe Christina.

Christina Van Tassell: We are working through our divestitures and can adequately project at the timing and scope of our restructuring programs. As I just noted, we don't report an adjusted free cash flow metric. For these reasons, we're unable to provide a meaningful free cash flow outlook at this time. That said, you do expect it to be deteriorally lower in this transition year given the combination of lower projected cash earnings, significant restructuring payments, and higher interest payments. These are mainly temporary issues in this year of structural change. As we make our way into fiscal 25 and 26, we're fully confident in our margin trajectory and in the cash generation and record business.

I appreciate the commentary on Hendawi.

Speaker 2: So just looking at the overall for Q2.

So just looking at the overall for Q2.

Speaker 2: kind of fair to assume that revenue and more importantly EBITDA may be down a little bit year over year relative to

Kind of fair to assume that revenue and more importantly, EBITDA may be down a little bit year over year relative to the adjusted numbers that you filed the 8-K last week.

Speaker 2: the adjusted numbers that you filed me 8K last week within, you know, more improvement in the back half is at the right way to think about it. We cadence. Yeah.

With them.

Improvement in the back half is it the right way to think about it the cadence.

Speaker 4: That's right. That's right. So we'll see another next part. We'll see another year on year down and then we'll stabilize in the back half of the year.

That's right that's right. So we'll see another next.

And that's why you will see another year on year down and that will stabilize in the back half of the year.

Speaker 5: Can I continue Fairfax, current part of your treatment? No in mind, I passed back, Andy. Yep. Thank you.

Okay.

Thank you.

Christina Van Tassell: We will be providing a fiscal 26 free cash flow target at our investor day.

Thanks, very much Dan.

Thank you.

Speaker 1: And there are no further questions at this time. I will now turn the call back over to Mr. NAPAC for some final closing comments.

Brian Napack: And with that, I'll pass it back to Brian. Thanks, Christina.

And there are no further questions at this time I will now turn the call back over to Mr. In APAC for some final closing comments.

Brian Napack: To summarize before I open it up for questions. Q1 performance was largely what we expected, and we are encouraged by the continuing underlying strength and increasing momentum in research following the unusual dynamics of the past, last year. We are actively simplifying the company structure to reflect our more focused strategy and drive efficiency. Going forward we will have one market facing team, enabling greater coordination of product and go to market efforts. This group will be supported by one global operations group, enabling efficiency and driving operational excellence across the company. We're now in mid process in our efforts to divest several of our non core assets. Processes are going well with good buy and engagement, although market is challenging.

Speaker 3: All right, well, thank you very much for joining today. Look forward to seeing you at our investor day and if you're not lucky enough to attend that, we'll look forward to reporting our next results, our next results on Q2 at that moment. So thank you again for joining and have a great day.

Alright, well. Thank you very much for joining today and look forward to seeing you at our Investor day, and if you're not lucky enough to attend that we'll look forward to reporting our next results.

<unk> results on Q2.

At that moment. So thank you again for joining and have a great day.

Speaker 1: This concludes today's conference call. Thank you for your participation. You may now disconnect.

This concludes today's conference call. Thank you for your participation you may now disconnect.

Okay.

Okay.

Brian Napack: Fiscal 24 remains characterized as a transition year for Wiley as we work through these substantial actions and as our core drivers rebound. We expected deliver performance gains in margin acceleration in fiscal 25 and 26.

Brian Napack: As a reminder, we're hosting an investor day on Thursday, October 12th at our corporate headquarters in Hoboken, New Jersey. At that event, we'll share our Go Forward vision for Wiley, provide detail on our research and learning businesses, outline our critical operation improvement initiatives, and we'll introduce fiscal 26 financial targets. After the presentations, which will run from 9 to 12 noon Eastern, we will hold a networking lunch for all attendees.

Okay.

Yes.

Brian Napack: As always, I want to thank our global colleagues for their tireless work and perseverance, their dedication to each other and to this very special company.

Unknown Executive: I'll now open the floor to comments and questions. At this time, I would like to remind everyone in order to ask a question, press star, then the number one on your telephone keypad.

Daniel Moore: And your first question comes from a line of Daniel Moore from CGS Securities. Your line is open. Good morning, Brian. Good morning, Christina. Sorry to jump off mute there. Maybe start with research. Appreciate commentary. Just kind of remind us where we are. What is gold away generally as a percentage of research revenue now? And maybe just what can you say now that we're a little bit further removed from the pause in publishing you experience in the back half of last year?

Daniel Moore: Is it simply tough comps versus the pandemic driven spike where there are other factors and just your confidence in that improvement as we look to H2? Yeah, Dan. First of all, thanks for joining the questions as always. You're starting in the right place.

Brian Napack: It's really important when we look at widely and understand that we've just refocused our strategy in our company around around the research business and the core of that is research publishing business in the core of the future and future growth and profitability will come from away. So we're starting in the right place. So gold away now is around 10% with OA overall of 10% of our research revenues and overall OA is around the third of our publishing revenues.

Brian Napack: I guess high 20s of our overall research revenue 27, 28% of our overall research revenue. So that's where we stand. Those areas are growing very nicely, very rapidly. And I think we are saw growth of 36% or something excluding Hindawi of gold away and overall OA is growing very nicely as well. So what we're seeing overall is a return after the COVID up and down and changes. It was a very unusual period for us.

Brian Napack: It returned to the normal growth patterns, which is what we expected to see and what we are seeing across the business. So we're doing very well in the high growth markets like China and India. We're doing very well across the major Western markets, US, UK, Germany. And so wherever they were during the COVID period, they're now returning to where to normalcy. And that means growth. So in every area, as I said earlier in the comments, in the prepared comments.

Brian Napack: James. In every region in all of our major subject areas, we're seeing a return to volume growth and revenue growth. Obviously there's many dynamics that go on in this market, but it's exactly what we wanted to see. It's exactly what we expected to see, and it's what we've been talking about for a while. So that should give you a foundation.

Christina Van Tassell: Very helpful thing with research, but just to switch shipping to Handoi, just clarify, I think you said it was an 18 million dollar impact that year over year impact, or was it a loss of 18 million in this quarter? It was a loss. Hi, Hi, Dan, Christina, it was a loss quarter. Got it. That's helpful. And just to provide a little context. Yeah, and to provide a little context, it's important to remember that while we were experiencing significant growth coming out of Handoi, Handoi represents low single digits, two, three percent of our research revenue.

Christina Van Tassell: So we just need to put that in context. We certainly lament the loss of that revenue. And now we're starting to see the metrics come back to where we want them to see and to be and we'll see that coming back. But I just always want to put that in context of our overall research business. We're talking about a low single digit number. Of course, and I know you gave the numbers, Christina, but just remind us what sort of embedded for Handoi in terms of EBITDA loss for the full year or 24 guide.

Christina Van Tassell: So we think about that jumping off point for 25. Sure. So as you know, they talked about the call revenues for the full year expected to decline about 55 million in 23 to 20 million this year. And it'll be a modest EBITDA loss for the full year. And we'll see the first, you know, this quarter and next quarter have toughs and tough comps and recovering the back half of the year. Yeah, declines from 55, not to climb by 55, 55.

Christina Van Tassell: Yeah, yeah, yeah, yeah, perfect. What we're expecting to see then, because I know it's the next question is where we're going to go with it. And so Handoi over the where we're executing our revitalization plan and it's coming along nicely. We expect to see most of the bad comparison to be true in the first half. And then as we go through 25 and into 26, we'll see ourselves get back to and above where we were before.

Christina Van Tassell: So we're not going to get it all back right away because you know we're coming we're coming conservatively to do it the right way. And it takes a little while due to the lags in the business, but we expected to be a to return to its contribution to wild East growth through 25 and be above where it was in 26. Perfect to be both in 2026 be above where it was in 23. So I want to be clear about my words. Right, right in terms of the progression. Okay.

Daniel Moore: And then shifting to learning. I think overall you said 55% was digital just starting with academic, which took, you know, obviously another leg down this quarter. What's the mix there?

Brian Napack: Print versus digital and, you know, I just talk about I understand, you know, the 18% is driven by timing, but it continues over time to kind of work its way down. Yeah, yeah, you know, about the secular opportunity there along, you know, over the next three to five years. You bet. Part of it is timing. It's not all timing, right? We're seeing print continuous, continuous decline.

Brian Napack: What happened in the quarter was a combination of a very small quarter and a very unusual time of the year for those businesses, and is not representative of the full year. But nonetheless, beyond timing, which is its own issue, we continue to expect to see a slow decline. Print now represents about 40% of that business with digital being close to 50%. And the digital continues to grow for us, as you know.

Brian Napack: So that transition continues to go on. We expect it to continue to go on. It's not this quarter is not reflective of that progression, but we do expect to continue the migration from one to another with the digital revenue, basically offsetting the print decline.

Brian Napack: In that digital revenue, that is, you know, save for quarters like this one and timing, you know, what are you experiencing in terms of growth and, you know, do you expect that to inflect higher or just kind of remain steady? We expect it to remain steady. We have pockets of very strong growth where we are, where we have fantastic products like Zybooks. I think Zybooks is up mid-30s. If I'm not, I should say to be imprecise, it is up mid-30s.

Brian Napack: In the balance of it, it's growing in proportion to the adoption of those products in the marketplace, which is more of a low single digit kind of of a pace now. We hope to continue that more than offset the print declines.

Brian Napack: So we're not going to see, I want to say something generally about that business because I think it's very important from an expectation setting perspective. We don't expect the academic segment to be a driver of growth for Wiley in the future. It'll do okay. It'll, you know, it'll keep pace with inflation, with what, with digital off-sending print, but what it really represents for us is a very solid business with good profitability characteristics and good cash generation characteristics that contributes to the overall empire. As we see, as we move toward a one-wiley notion, we'll start to see some real benefits from expense savings as we combine things like content platforms and sales forces and other things like that.

Brian Napack: I shouldn't say combine a line. Is it better word than combine? But what we're looking for is one strong operating infrastructure supporting the whole business, and we should expect to see some revenue synergies as well out of that. As, for example, a research author who is a PhD at a university publishes with us their books, which they always do and need to do. So we spend to see some of that as well.

Brian Napack: Again, I'm trying to provide the overall context for the role of academic and our expectations going forward so that we know where our growth is going to come from, where our profitability is going to come from.

Brian Napack: Absolutely, and if you wouldn't mind kind of the same outlook for a professional. Yeah, professional is a combination of our professional publishing, which is mostly books in both Print and Digital format, and our assessments business, or what we call internally our team development business. And as a group, we expect that to, again, contribute a modest growth a little bit more than you would expect out of the academic segment and very good profitability.

Brian Napack: Gits, it's a similar story. We have certain areas such as our team development business where we have real strength and brand and competitive advantage and great profitability characteristics. That tends to be a smaller part or that is a smaller part of the business called one-third of the professional business. The book business continued to grow as the book business grows. And we, again, like that business, but we don't expect outsized growth out of our book publishing.

Brian Napack: Our book publishing is professional book publishing. It has consistent demand. We do very well in it. We are probably the world's leader in professional book publishing. I say probably one of our competitors recently backed off. It's a commitment to the area. So now we're, we're definitely a leader in that area. And so we, but again, we expect it to be a modest growth business, but with very good profit characteristics. Is that enough on that, Dan? I'm happy to go into more detail. Now that helps one or two more, and I'll let you up the hook here.

Brian Napack: But anything you might say just in terms of preview of what, not numbers, but what general kind of strategy you might hope to convey at the upcoming investor day. And I... October. Yeah, it's a great question. And I really am looking forward to seeing lots of people at our investor day. I would say it's, I would say what I've said before. I wouldn't expect from Wiley a big reveal of some unfamiliar or orthogonal strategy, giving a brand new growth area to us.

Brian Napack: We believe deeply in the businesses we're in, starting with our research, publishing business, building on it with our knowledge solutions business and supported by our consistent, our consistent learning businesses, particularly the publishing businesses. And, and we believe that there is significant opportunity due to the endemic characteristics and in the case of the research business, endemic growth characteristics of those businesses. And we believe that there are additional adjacencies that we've spoken about for the most part, and areas like partner solutions, areas like, like the way that we can expand our publishing portfolio by, by building our brands and so forth. We believe that those areas provide more than enough growth at very attractive financial characteristics, meaning profitability and cash flow characteristics to provide significant opportunity for us and most importantly to generate value for shareholders.

Brian Napack: But there's a, there's a internal part of our strategy that's critical as well, which I would summarize is just saying operational excellence that can result from focus and simplicity. And I know these are, these are our themes we've talked about before. We're well on our way. We just, we just came through a reorganization of the company that opens up a lot of those opportunities and we are going to execute it. We've just appointed a new head of operations as we talked about in our remarks who's dedicated to driving that operational excellence, so the internal part of widely strategy is just as important as our external part of the strategy because that's what it allows us to improve our operating leverage, which is what we all want to see. Perfect.

Christina Van Tassell: Last one for me, maybe Christina. I appreciate the commentary on Hindawi. So just looking at the overall for Q2, kind of fair to assume that revenue and more importantly, EBITDA may be down a little bit year over year relative to the adjusted numbers that you filed me a K last week within, you know, more improvement in the back half is at the right way to think about it. That's right. So we'll see another next quarter. We'll see another year on your down and it will stabilize in the back half of the year.

Unknown Executive: Thank you. Thanks very much. Thank you.

Unknown Executive: And there are no further questions at this time.

Brian Napack: I will now turn the call back over to Mr. Napak for some final closing comments. All right. Well, thank you very much for joining today. Look forward to seeing you at our investor day, and if you're not lucky enough to attend that, we'll look forward to reporting our next results on Q2 at that moment.

Unknown Executive: So thank you again for joining and have a great day.

Unknown Executive: This concludes today's conference call. Thank you for your participation. You may now disconnect.