Executive Summary
John Wiley & Sons (WLYB) delivered a Q4 2024 set of results that showcased a resilient cash-generation engine amid signs of revenue headwinds. Revenue for the quarter was $468.461 million, down 10.96% year-over-year but up 1.68% quarter-over-quarter, reflecting a challenging calendar year base versus the prior year alongside a sequential acceleration in activity. Gross margin remained robust at 70.84% (gross profit of $331.852 million), though down modestly versus the prior-year period, signaling continued mix benefits from recurring revenue streams alongside ongoing investment in higher-margin digital offerings.
Operating income totaled $79.790 million with an operating margin of 17.03%, marking a strong QoQ expansion (up ~59.1%) despite a softer YoY trajectory. Net income for the quarter was $25.265 million, with basic and diluted EPS of $0.46, representing a substantial QoQ improvement but a pronounced YoY deterioration (-63.0% in net income, -62.6% in EPS). Free cash flow was healthy at $155.136 million, supported by $183.286 million of cash flow from operating activities and capital expenditure of $28.15 million. The balance sheet shows a cautious liquidity position (current ratio 0.52, quick ratio 0.49) but with durable leverage metrics (total debt $897.4 million, net debt $814.0 million) and a sizeable deferred revenue balance: current deferred revenue of $483.778 million and non-current deferred revenue of $14.818 million, implying strong revenue visibility ahead.
Overall, the quarter underscores Wiley’s durable cash-generation profile and a profitable, asset-light core with meaningful deferred revenue that supports near-term visibility. The key questions for investors revolve around sustaining top-line growth in a slower publishing cycle, expanding high-margin digital offerings, and improving return metrics while managing leverage amid a moderate liquidity backdrop.
Key Performance Indicators
QoQ: 122.19% | YoY:-63.03%
QoQ: 122.12% | YoY:-62.60%
Key Insights
Revenue: Q4 2024 revenue of $468.461 million, YoY decline of 10.96% and QoQ growth of 1.68%. Gross Profit: $331.852 million; gross margin 70.84% (down YoY by 5.72%; up QoQ by 9.33%). Operating Income: $79.790 million; operating margin 17.03% (YoY margin contraction of 3.25%; QoQ expansion of 59.10%). Net Income: $25.265 million; net margin 5.39% (YoY decline of 63.03%; QoQ increase of 122.19%). EPS: $0.46; diluted $0.46, YoY EPS change -62.60%; QoQ change +122.12%. EBITDA: $113.326 million; EBIT...
Financial Highlights
Revenue: Q4 2024 revenue of $468.461 million, YoY decline of 10.96% and QoQ growth of 1.68%. Gross Profit: $331.852 million; gross margin 70.84% (down YoY by 5.72%; up QoQ by 9.33%). Operating Income: $79.790 million; operating margin 17.03% (YoY margin contraction of 3.25%; QoQ expansion of 59.10%). Net Income: $25.265 million; net margin 5.39% (YoY decline of 63.03%; QoQ increase of 122.19%). EPS: $0.46; diluted $0.46, YoY EPS change -62.60%; QoQ change +122.12%. EBITDA: $113.326 million; EBITDA margin 24.19%. Cash Flow: Net cash provided by operating activities $183.286 million; free cash flow $155.136 million; capex $28.15 million; CFO per share $3.36; FCF per share $2.84. Balance Sheet: cash and cash equivalents $83.351 million; total assets $2.7255 billion; total liabilities $1.9858 billion; total stockholders’ equity $739.716 million. Debt: total debt $897.376 million; net debt $814.025 million; debt-to-capitalization ~54.8%; interest coverage ~6.99x. Liquidity: current ratio 0.52; quick ratio 0.49; cash ratio 0.095.4% (cash-to-liquidity indicator via cash balance). Deferred Revenue: current $483.778 million; non-current $14.818 million. Share Count: weighted average shares out 54.591 million; diluted 55.356 million. Valuation Metrics: P/E around 20.5x; P/B ~2.80x; P/FCF ~13.37x. Dividend Yield: ~0.92%. Key takeaway: Wiley continues to demonstrate solid cash generation and a strong margin structure in a revenue-challenged environment, with meaningful deferred revenue supporting near-term revenue visibility.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
468.46M |
-10.96% |
1.68% |
| Gross Profit |
331.85M |
-5.72% |
9.33% |
| Operating Income |
79.79M |
-3.25% |
59.10% |
| Net Income |
25.27M |
-63.03% |
122.19% |
| EPS |
0.46 |
-62.60% |
122.12% |
Key Financial Ratios
operatingProfitMargin
17%
operatingCashFlowPerShare
$3.36
freeCashFlowPerShare
$2.84
dividendPayoutRatio
75.6%
Management Commentary
Note: The earnings transcript data were not provided in the source dataset. As a result, no management quotes or thematic highlights from an earnings call can be rendered. Once an earnings transcript is supplied, the highlights can be added grouped by themes (strategy, operations, market conditions) with context and significance.
Forward Guidance
No explicit forward-looking targets or guidance were disclosed in the provided materials. In the absence of formal guidance, investors should monitor: (1) the trajectory of revenue, particularly in digital education and professional learning where Wiley has ongoing investment; (2) the evolution of gross and operating margins as the mix shifts toward higher-margin digital offerings; (3) the profile of deferred revenue and renewal rates which underpin revenue visibility; (4) balance sheet flexibility given debt levels and interest expense, and (5) capital allocation decisions, including dividend policy versus share buybacks and potential opportunistic investments in platforms like Literatum. Given current indicators, a cautious baseline suggests modest top-line stabilization with continued FCF generation, supported by cost discipline and a steady, though not aggressive, leverage profile.