13 June 2024
HIGHLIGHTS
- FY24 Adjusted EBITDA and Adjusted EPS guidance exceeded; Adjusted Revenue in higher end of range
- GenAI content rights project completed this quarter with large tech company; another executed GenAI project with second large tech company to be realized in FY25
- Advancing Value Creation Plan with 2 of 3 non-core divestitures closed and $90 million of $130 million run-rate cost savings actioned
- FY25 growth outlook driven by Research & Learning momentum and accelerated cost savings
MANAGEMENT COMMENTARY
“We finished the year strong and head into Fiscal 2025 with full confidence in our Research trajectory, GenAI momentum, and profit and performance outlook,” said Matthew Kissner, Interim President and CEO. “We are seeing robust demand to publish and significant output acceleration in Research as well as continued outperformance in Learning. On top of this, we’re seeing significant interest in leveraging our authoritative content to train AI and machine learning models. Finally, we’ve executed on our stated commitments with discipline and speed, enabling us to exceed our earnings guidance and accelerate our cost savings program, setting us up well for continued margin expansion and strong cash generation ahead.”
FULL YEAR SUMMARY
- GAAP Results: Revenue of $1,873 million (-7%), Operating income of $52 million (-6%), and EPS loss of $3.65 (-$3.96).
- Adjusted Results at Constant Currency: Revenue of $1,617 million (-1%), Adjusted EBITDA of $369 million (-3%), and Adjusted EPS of $2.78 (-19%).
- Cash from Operations of $208 million (-$69 million) and Free Cash Flow of $114 million (-$59 million) mainly due to lower cash earnings and higher restructuring payments.
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