Wiley's Q3 Fiscal 2025 Update: Strong Growth and Resilience in Turbulent Times
Wiley, the leading global provider of scientific research and education content, has delivered a strong third quarter fiscal update, showcasing its resilience in the face of economic uncertainty. During a recent conference call, company executives highlighted several key highlights from the quarter, demonstrating their commitment to driving growth and innovation.
According to Matt Kissner, President and CEO of Wiley, the company is executing well on its objectives of driving recovery in growth in research and material margin expansion overall. "We are capitalizing on the increasing demand for scientific research and responsible AI development," he stated. "Our markets continue to prosper, supported by strong balance sheet and consistent cash generation over time."
Wiley's Research segment has been particularly successful, with approximately 75% of its revenue coming from recurring sources. The company is also positioning itself as an early beneficiary in the emerging field of AI, with opportunities for long-term growth in the corporate sector. "Our financial characteristics are strong," said Kissner, "with healthy margins and cash generation, low leverage, and ample liquidity."
One of the key trends driving Wiley's success is the increasing demand to publish research, which has resulted in a 18% year-to-date increase in research article submissions and an 8% rise in publishing output. The company's recurring revenue models have also demonstrated strong health, with solid pricing power supported by consistently higher volume.
"Quality and scale matter," emphasized Kissner. "Wiley excels in both areas." The company's top-tier quality and scale give it an opportunity to outpace the market over time, particularly in the mixed model ecosystem where customers range from individual researchers to national governments.
Wiley has a long history of resilience, having demonstrated its ability to navigate economic cycles and periods of disruption. As Kissner noted, "for over 200 years, Wiley has been a safe haven through many economic cycles and periods of disruption." The company's strong balance sheet and consistent cash generation have enabled it to maintain its dividend increases for 31 consecutive years.
Looking ahead, Wiley is confident in its ability to achieve its outlook for this year and next. In fact, the company has raised its fiscal 2016 margin target. "We remain on track to achieving our objectives," said Kissner, "and we are excited about the opportunities that lie ahead."
