John Wiley & Sons, Inc. reported a consolidated revenue of $403.8 million for the three months ended July 31, 2024, reflecting a 10% decrease from $451.0 million in the same period of the previous year. The decline in revenue was attributed to the divestiture of non-core businesses, including the sale of Wiley Edge and University Services. Despite the overall revenue drop, the company experienced growth in specific segments, with Research revenue increasing to $265.3 million from $257.8 million, and Learning revenue rising to $124.3 million from $109.3 million.

The cost of sales for the quarter decreased significantly to $109.2 million, down 30% from $157.1 million in the prior year. This reduction contributed to an operating income of $29.0 million, a substantial improvement from an operating loss of $16.4 million in the same quarter of 2023. The net loss for the quarter was $1.4 million, a notable recovery from a net loss of $92.3 million in the previous year, primarily due to lower costs and the absence of goodwill impairment charges that had impacted the prior period.

Wiley's strategic focus on profitability and cash flow was evident in its Global Restructuring Program, which has led to a 35% reduction in real estate occupancy and is expected to yield annualized cost savings of approximately $75 million. The company recorded pretax restructuring net credits of $3.6 million for the quarter, contrasting with charges of $0.3 million in the same period last year.

In terms of acquisitions and divestitures, Wiley completed the sale of Wiley Edge for a total fair value of $33.9 million, excluding its India operations, and also sold University Services on January 1, 2024. The company is in the process of finalizing the sale of CrossKnowledge, which is expected to close on August 31, 2024. The divestitures are part of Wiley's strategy to streamline operations and focus on its core Research and Learning segments.

As of July 31, 2024, total current assets decreased to $392.8 million from $454.0 million at the end of April 2024, while total liabilities also saw a reduction to $1.9 billion from $2.0 billion. Shareholders' equity stood at $713.7 million, down from $739.7 million in the previous quarter. The company maintained a strong cash position with $99.4 million in cash and cash equivalents.

Wiley's effective income tax rate for the quarter was reported at 106.2%, significantly higher than the 13.5% from the previous year, primarily due to U.S. ordinary losses with no tax benefit recognized. The company declared dividends of $19.2 million during the quarter, slightly down from $19.4 million in the same period last year.