John Wiley & Sons (WLY) 7 Dec 222023 Q2 Earnings call transcript

Good morning and welcome to Wiley’s Q2 Fiscal 2023 Earnings Call.

As a reminder this conference is being recorded. At this time, I would like to introduce Wiley’s Vice President of Investor Relations, Brian Campbell. Please go ahead.

Thank you, and hello everyone. Napack, Vice and President Brian Van and are Executive Tassell, and me Wiley’s CEO; President Christina With CFO. A few reminders to start. being is call recorded include may The forward-looking and statements.

materially as as rely subsequent our in events as to update measures The undertake a results and otherwise on these a circumstances. GAAP. alternatives to by not supplement the or companies, are and and will a used other evaluate shouldn’t measures not filings. Investor to subject statements transcript or does obligations currency. You non-GAAP may factors Also, on prescribed exclude profitability These SEC differ Relations provides call, noted, similar non-GAAP underlying of our Brian reflect and metrics any not meanings now After will impact at the viewed a web Unless refer on performance playback and company turn standardized a measures discussed revise and the are to to call, basis trends. page the statements GAAP over actual to therefore, and investors.wiley.com. on variances copy nor will do Wiley should available have operating measures year-over-year be we Napack. to U.S. call be to by may of I’ll the forward-looking comparable under webcast be the of presentation they

for joining Thanks everyone. us. morning Good

than our of together is many is quarter. helped our I has economic more than and and unlock have Through and by a them both we cycles do social years. research in And far by often response accomplished a powering the science, with mission Wiley retain challenging second to so This The our differentiator. This and it human to the in partners. lot progress connected is just team I us As growth, do to for is to and XXX more a Wiley education. periods purpose, statement, authors, promoted career will and and and disruption, culture, start pointing Wiley’s potential customers, which win scientific brand despite environment.

$X.X be a freeze, quarter seen low accelerated the of management. challenges, disciplined consumer real volatility, and about growth job enrollment have demand disruption. in that for include interest consumer and These XXXX, services tight effective to of to development confidence, trillion. rising Despite to market, cost continues their quarter trajectory, due mitigate performing Corporate that and R&D in the are core our success and we've ongoing And has consolidation, our professional this, investment inflation, general tolerant growth academic and these increasing to rapidly this learning, with R&D revenue worldwide earnings most big our help multiple than driven by consistent decade recessions. a This fill estate has expectations Wiley's consumer for caused global notably our challenges our along all FX actions, for the strong remains more content a a high call. core margins, and rates, It and ongoing up solid have Wiley, a recession and Research That and well. the to were by is later revenue of talent We these unique program, Since reliably. growth spending including growth driver the solutions. confluence volume growth our research through Christina has geopolitical gaps corporations headwinds, the will education performance facing targeted tripled spending dependent now publishing businesses. expense drives major profile. revenue solutions, persisted spending pressures impacted reduction talent that research. said, they implementing speak in and a has for this ever down is workforce year. research talent corporate that engines pullback research areas, development and growth publishing, To in hiring supported

to Wiley steadily. Our simplify is important and work forward optimize moving

As part to impact, drive continue our helping we of our with to better structure and customers is us needs and to efficiency. streamline and their this, greater align this synergy,

and that recall into segment to reorganized publishing last we will effect. solutions our research You great quarter

segments universities into Wiley's two and Now with achieve we align reorganizing in markets a education namely about in primary I'll talk bit lines are education, later employers. centric goals, more this similar to new business presentation. tightly of customer two to target the

our at QX look performance. Let's

always, was The revenue and Adjusted down impacts. APL soft planned in solutions. declines attributed it talent solutions, services. for grew with open research decline university basis. research quarter quarter. which organic variances in but the and currency EBITDA line research, revenue exclude Wiley’s slightly corporate lines the research X%, performance scale expectations X%, corporate to offset declined the and all publishing is with As investments our to in is our an and development, both by Growth publishing training combined APL's on for

additional in margin the adjusted current prior declined XX% the expense to take more prior to adjusted detail. and to our year, you XX% a ahead in performance through EBITDA Christina of segment million Our compared result of of interest came due Adjusted $X rate environment. year. slightly will EBITDA performance EPS of

us, by making establish hold for with in growth good revenue. four on grew Open agreements. research, X% ourselves do quarter digits. progress As due output be we we to global our publishing workflows pleased our and rose output And and profitability. article fronts. continues we submissions that four, OA solutions. to timing. XXXX. although up driver achieving increase our variances say more more we're Three, said more for X%, research by to And publishing we streamline I'm all One, commitments. would accountable strong to transformational meet publication in revenue In this research fiscal article a both publish to scale things drive know, of only double Two, you demand

House our the Germany. significant authors new an on This long-term and that agreements, very our now into deal spanning to gives U.S. in transformational XXXX model landmark Wiley pipeline our agreements U.S., The the contract. and particularly comply in Germany research The additional date, research. even to the allow agreements journals customer White and over is renewing in on Europe. federally funded the with strong, deal our these recently market In continue XX XX customers XXX make To signed approach. publishing representing new has institutions centered with it remains renewal multiyear integrated will in over validates the countries. agreement good guidance We options, important countrywide more progress new

and freely policy in or Science calling in issued open available of for Office XXXX. U.S. the reminder, be August the all new federally starting guidance to a and Technology OSTP, funded As research

fully momentum. this know, Hope, quarter, to with new and you supported and by health signed We research In in is organization. humanitarian direction solutions, momentum we As global solutions aligned see strategy continue strong Project a including relief our partners research. the XX renowned strong our research open in

product the American We launches, for including of Center Career Physicians. Emergency College also the several executed

ecosystem We the and them Two Science job upsell most of scientific I our most their Fair, board, approach. Careers. with the significant expanded which powers the and is organizations. society sell the and Wiley's world's manage the including called expected, now the corporate partnerships of the within publishing sites attended society. event scientific provide XXX partners. publishing for distribute research with editorial now network As AAAS, demonstrating their primary Frankfurt partnership nine important are services, world's opportunities recruitment are industry platform, important our appropriately services, Wiley competitors, our of We content the largest journal of of them recently four power community. with cross Book additional also accelerating multifaceted through

say for prospective across met research division, all. enjoy customer around data and industry taking event, customers While the incredible. the about new buzz diversify access open and will industry business and facilitating in solution successfully our streams, this a helping opportunities, that base, trends, its to publishing revenue could writing grow strategy much in It strategic bold the research. pundit necessary through there, which be to industry I perfectly move navigate or stance the upselling, prominent publishing stakeholders. its Wiley, After partnerships summed is chain. will Got says to is supply likely collaborative transformations of as well is advantage.” up and the to this, it a sustain that Wiley with with extend That greater the volumes revenue one “Wiley product good help solutions Wiley new open up of investing as pretty lots it

publishing research drive process paying our to automation, increasing continue efficiency we and investment intelligence, the across is off. and Finally,

of growth Year-to-date, over XX% are Wiley year intelligence off are These rejected rise. pay proportion the efforts we contribution strong systems incremental from option, universe prior period, XX% the example, submitted in will and articles fiscal implementing For up the XX% another to to and kept offered the XXXX. continue allowing in Wiley time. were Journal authors of margin with revenue

So QX was execution in quarter research. of another solid

of career development our the and progress. healthcare, during On and good we university client operating were client technology, making quarter. remained six the efficiency. turn in corporate differentiated large Wiley another and strong beginning services, talent said our drive the offerings, customer growth At seeing going connected we're pipeline These to included Now courseware expand our in consumer the year, clients to placement. double-digit growth let's financial base, employee in we and corporate and education. base, staples. The multinationals commitments and gain we growing signed are

closely of in Australia, partnerships the across Bay Path go-to we and year-to-date. also Coast economic future University a this even existing the market new underlying before university XX so nine four was to partner Wiley Cal existing our drivers degree very are over It's Massachusetts, total added the Sunshine Georgia. to far Bernau new Within development current the pandemic. but are in U.S., talent higher in the important remains programs than growth. services. clients. for note monitoring our continues that base, new demand of course, programs we Marcos, remain there it robust XXX,XXX of We the San tech These University our labor the University State jobs quarter: signed Of programs open new be for partner and in uncertainty, both in given new

consistent Wiley's remains value-added we while continue for cyclical So demand enrollment to headwind, a see services. institutional

would careers drivers. for Let with still instead students words education. few preparing of its many directly and the say about we're economy, a very Consequently, strong softening jobs are be into their me a enrollment market. labor Despite drawn being seeing

in university to helping favor. is back We there start XX challenging the the economy our of but expect of now in win to In XX-month partners to and uptick historically cycle as preparing in case, differentiated enrollment. learners. this and slows, as the them recession to compete also course, university Wiley, on between for course, their continues a is deliver to lag this of any material a moment turns while courses focus our courseware unwind the

Our in high potential a STEM-focused This saw a market XX% quarter. win we example delivered how despite this disciplines. courseware great of called products challenges. growth We of is zyBooks great

launched During we the career-connected science, growing in our first data subject. courseware a solution quarter, rapidly

We expanded largest the relationships States. universities with online College with the of United also won adoption institutional and the Virginia our important an in Community three we

things, improve processes publishing their reorganizing and efficiency our overhead, the market focusing modernizing development outsourcing contribution and profit are We're profile. is we And activities, on scale we value APL reflect in development, efforts, by automating rightsizing phase, and we lower the talent in the which meaningful our Finally, lines front. other business. our as realities growth actively approaches. Among to and driving reducing are editorial reengineering go-to-market towards rapid

headwinds. in economic continue So commitments on we XXXX execute the market our despite overall fiscal education, to and

employment to commitment remain We drive research to high-quality core quality Career development three impact working focused through Education, business real-world on reducing at activities the goals. Wiley reduce are SDGs, making and actively and progress climate and our continue thus, on gainful We education while expanding inequities. to in education, to our sustainable of are we and education UN access we In action. inequities, the Connected UN

climate line critical increasing committed XXXX, temperature now published, to publisher, leading In science-based the by related goal degrees. science. net beyond example, population. come the carbon the This being targets preventing global specifically agreement. X.X to of zero Wiley with placement fact, This a we journals to XX% underrepresented candidates is well goal and both target. as Paris globally of is critical our aligning initiative our from is of the over for from in scientific And XXX climate ahead IT

progress scores impact call recognized for and segment and addition, Hats ESG risk our the In Sustainalytics, MSCI. pass I'll our support Wiley to to achieving our journey. off ISS continues of for profile, to and their to through Cristina Wiley our results, S&P, all outlook. colleagues from strong over and take to dedication be now measures, for you cost ongoing

you, hello, everyone. Thank Brian, and

base acquisitions economic transition drive our publishing, transition. We're the focused current Although there driving and as publishing the navigating to cyclical development In industry. future. in publish new healthy verticals client recent team and market spent help they research. feedback our economic our nicely for to We've more which set both to solution X% landscape OSTP challenging In realities, meaningful with the Open solutions margins growth in or remain a efficiently. situated believe prior and are towards we momentum on there research out modest strategy driven Brian potential invest over continues the we remains was contributions here, and profit We such solutions OA opportunities only customers growth on align do tolerant continued core services revenue well XX% the revenue Solutions are as was continue organic XX%, from profit bullish noted, and to QX we're The and platform through strong career driven of tackling support Research to The our industry and considerable and we and need guidance recession offerings to OA quarter help into and other research, to content in OA it industry organically. up our market both a grow while recent offerings. up services output revenue-generating is that publishing with the and and time in rose structure extend in we with regions. line, we're our environment, grow new Research changing that on scale platforms, X% strong from in investing current Research nature. academic seize by secular article our opportunity. to cost we and as research scaling sights X%, confirms they're Access more in revenue the also policy high-quality as to year. by expand open centers. our Talent

progress Brian we ones. around service subscribed including give more in well only adding XX three. to To only to subscribed continue solutions and noted, the solution As quarter our of new logos than partners, a partners terrific make XX% opportunity, to as this existing upsell X% than as of current sense roughly one upselling more you

OA number In this Given journals. space. note small of articles expanding investment pipeline selected investigation the societies into a the to research recently in viewer corporations, in publishers, increased case and due A of we quick activity integrity. we on an attracted QX,

scrutinizing the of ensure content. constantly our our are We quality publishing to process

Our the research editorial publishing to Adjusted together peer demand. primarily which offerings expand ensure review meet volumes the industry. declined knowledge to scale EBITDA partner to solutions the in to due industry to underpins to in our process, work X%, investments to capabilities closely increasing manage very our and continues

down EBITDA year. Our X%. on and was was adjusted was prior EBITDA quarter, revenue up par margin with XX% X% Year-to-date, the adjusted for

research We well and and as expect both improvement by revenue expenses. in solutions the profit lower second as half driven on open growth

declines fall. Note in X% XX%, learning. to higher was APL. APL X% last digital decline an down Publishing spending down this and books, the is cyclical in and driven was course challenging Ed and after nearly consumer enrollment Ed fall Publishing discretionary quarter current being given decline down a U.S. spring for on professional by enrollment the revenue courseware. print environment XX% X% The the Now particularly and growth saw and Ed headwinds. that in material in XX% in offsetting economic professional pullback content for double-digit

and addition noted, continues strong institutional see consumer across we positive a grow Courseware saw channels, note, soft also zyBooks Brian to demand. In more On we Digital reductions to nicely demand. inventory as our

revenue quarter, lines, for the Professional Publishing includes Training. Governors growth training on In both declines Professional reductions continued offset and in In books companies Publishing our savings. and expense here our in-person During New our continued and with was mainly expanded in corporate business, strong spot our to Online. University, team offsetting lines, services, growth virtual finance, lines, partnerships down publishing in double-digit due development. see Hampshire Southern Adjusted consumer University, Learning Corporate Arizona State professionals, zyBooks slowdown EBITDA demand. XX% the to The we in Western bright seeing invest our inventory tech leadership APL which declines are and this and is quarter, Professional as in we which

for consistent Year-to-date, down EBITDA X% XX%. the year. adjusted margin Our quarter, and is was is which XX% with prior adjusted revenue down EBITDA was

reminder, the cost with a we year. adjusting with of later savings conditions the As to structure market in part restructuring to materialize align are our the

Education saw Now driven XX% This Services, development growth which revenue for or is talent revenue XX% growth overall organically. of XX%. by of

organically, strong revenue to As growing driven regions Brian clients India. placements, Europe renewals. in long-term up declined mentioned, we tech X% Eastern XX% in prior We're and quarter. and compared expand over into University our employee to ongoing revenue share placement and by rapidly new enrollment continue headwinds corporate growth or new with we multinational added Services cyclical year, this our X% lower six

ensure with mutually we last discussed our to quarter, beneficial work we relationships. to continue As strategic long-term, partners

service means at reduced to this revenue of some, Wiley. narrow a a share For bundle

it structures term, builds healthy this over to a return. a revenue we're our cost and our relationships, weigh optimizing will healthy offerings ensure intermediate While bit and performance the on

allow development to continue model remain of business was flow driven Adjusted which an to flexible will up upfront outcomes. in fee-for-service will EBITDA ensure the to through refer University expenses institutions in our good by the model, XX% timing revenue talent and commercial us in Some Services.

and marketing of Some Hurricane advertising of related to some swings it Ida and in costs. from it year-over-year

year the margin EBITDA to down due for quarter mainly adjusted adjusted XX% to in services was to the University businesses. talent Wiley and expand in because prior period. is economic was revenue periods XX% XX%, speaking, and investment Our of of up Services relationships while XX%, EBITDA Ed compared performance up held development. our nature the has revenue client well through difficult Year-to-date, Historically

First, progress, continues spending cycles. therefore, scientific the research and vital on is it through economic to

targeted in and majority million. implemented The savings to these savings mitigate in of progress fiscal in half our we through currently to freeze million is performance, and we're decisively sector We efficiency reduction savings reflected revenue half we're $XX XXXX going vast We've the expected back the core materialize while with of making working and areas. in stemming contraction. enrollment $XX be act unusual current drive of outlook. recorded in savings from million to real and while education $XX gains Second, steady and year but of of rate to efforts. million the in to year. actions our QX. travel charge broader cost prudent approximately back the these anticipate countercyclical challenges, not in and QX and market estate simplification be of this is only Nonetheless, optimization tends top people for times hiring us recorded We calls environment on targeted a a first our the investing a run $XX to optimization workforce growth generate restructuring school

up of and our XX% This spring We at from last year. a space of reduction end quarter office office end with consolidate last the continue the XX% of at is XX% since XXXX. to footprint

content several the closing Russia. underway. we in our when It We in development been technology you I'll of have on and this around savings of QX to centers get also and we center APL Wiley world, migration are one March. comprehensive other initiatives update tech and the management has plans process

come. and a will optimization yield major is quarters increasing benefits Our that process focus to and years simplification in of the

year use keep XXXX you we year-to-date flow by lower on move payments million progress lower our cash cash as We will was offset on with and a par compensation of earnings plans incentive Free with for $XXX prior posted fiscal our forward. performance.

At a and first on acquisitions normally a We flow research As prior was million XXXX commitments $XXX $XX there the for in than the were million remain our general corporate in as had to October, to collections of on we undrawn available to look note, and due credit the November capabilities revolving $X.X credit line CAPEX and recently half, reminder, current year, half we May million. note. amended approximately to $XXX date in hand Also of our year revolving $XXX for for talent the the scale through in with no developments. XXXX. essentially the of opportunistic use more acquisition end of capacity remain billion we subscriptions. credit agreement and of existing of the extend timing front is million in maturity through credit cash cash add with

end current was year. at of in X.X to prior the Our remains the Net compared credit X.X $X.X size facility October debt-to-EBITDA billion. at ratio

Finally, dividends with and million year-to-date $XX par year. we on to prior repurchases share allocated

year. Our current repurchases in flows, gives of balance line cash cost to flexibility shares invest in yield we prior $XX.XX on is continue at our sheet, to dividend consistency around an In strong Total and and acquired the spend share. summary, liquidity shareholders. average to million, us core ample X% $XX cash return our annual with per of was XXX,XXX around and

Due growth education, constant solid outlook. headwinds be reducing currency full Revenue to driven Research performance market-related by guidance review at growth. to the development. low and single-digit continues Let's year our in Corporate are to our mid-single-digit we revenue growth Talent in from

$X.XX interest the constant of to trending currency range restructuring now range and the second million, other cost given expense. half $XXX savings in is $XXX Adjusted at to of measures. We end rising lower constant due are of EBITDA adjusted at reaffirming currency the to million $X.XX, to EPS mainly

to expense, were guidance year. three for to expense, due income. and this impact These $X.XX of at reflects higher mentioned interest I higher tax interest now account $X.XX lower additional As expected This adverse expense. is year, to items the rising start anticipated impact adjusted of pension be EPS the the

our tax due a of to in reminder, rate. favorable expected the rise less statutory XX% between from an This XX% rate As increase adjusted by a XX%. country is is this and UK primarily effective earnings mix to year and

pension terms that XX% lower note In are of above XXXX income, frozen have pensions our since been funded. and

reaffirming We are XXXX interest. the performance million of offset cash to for higher lower free range year million. earnings Positive cash in flow fiscal and payouts by and $XXX incentive cash $XXX are expected to be taxes

is are growth around $XXX million core and development. CAPEX is outlook than areas Capital are focused to product lower summary, academic in difficult modestly investment and $XXX platform our corporate Our In primarily our lines, conditions anticipated. now we development solid. on market and navigating but talent million, research

to We steps cost mitigate I'll back Brian. taking pass to revenue the aggressively are managing complexity. it challenges structure With our tangible and to reduce that,

Christina. Thanks,

focus groups and groups, our will around these more corporate and leader, Wiley. efficient growth. In universities customer-centric pathways customer new Organizing targets Education, simpler, our business delivering are another few strong me more profitable The two a naturally about market Before focused our result complement will together group. we one a I are on in Research segments already Wiley in that segment realignment. of lines Solutions QX let changes a unchanged. customer-centric remain Publishing segment say education words Research and that making up, primary for are and sum research customers. The more

Academic of enable suite Professional lines: will and time. both Together, Publishing content the Academic This other services. Services. Publishing over outcomes segment for Publishing. academic revenue University team and delivering Publishing leveraging two settings, will incorporate consist both and focus in synergies segment alignment and cost and Academic platforms institutional of full new Wiley's on will will Our learners Education university

offerings by both Our Services. of on employers new be to the revenue Wiley's talent focused fully training, and segment we synergies This our will talent new talent Development will go-to-market will and efforts corporate customer. more Products solutions. as The delivering all team the include and critical cost alignment Corporate needs allow meeting and optimize Wiley's Talent Training achieve and customer-centric for our sourcing, upskilling us of

on in begin QX. reporting will We new segments these

difficult summarize So, the environment, for me our the execute well on we quickly Despite let quarter. economic key continue commitments. the to takeaways

Our and But weighed Talent Development have education. and down Research strong. Research Publishing, enrollment Solutions, in been by of consumer core remains challenges spending our growth results areas Corporate

to margin fewer is adapt to long-term consistently a to actively action Wiley achieve Wiley, We believe alignment improvement. parts. drive taking cyclical headwinds a and We are focus to structure cost with simpler and better tackling that moving greater our are we and

This sooner, but reorganizing sheet strong XXth. two shifting to and been move hoped efficiency. and shareholders have us One We customers but to we're education synergy, point. Investor which to repurchases. October We've final better around April for drive are alignment, to cash while it our rewarding Day, it decided consistently our quarter, important we to dividends balance had important planned Wiley's long-term for continue and reinvest to flow share to enable reasons. had specifically October, with

and driving simpler be you. are towards a and at we Wiley, hard our plans now to share able we work First, want impactful with to full more

to better update able In in be making along do meantime, we will on the you progress We continue way. to the are October. we will this the

grateful. in In affecting addition, targets, update work the In along do to continuing want selves real high October. ongoing Every extremely we our this our you to which at continue on execute making to challenging and a plan team difference. we to global commit for the to meantime, see very are day, we make long-range the particularly market Wiley I'm always, lines the will And when uncertainty, a we I you way. progress ability the their period. as that, academic clouded closing, recognize to through level full to for In they bring has

you all open a very of So a healthy wish I'll to all them and and comes and holiday season to as prosperous now XXXX. XXXX questions. a I of call close, happy the any

Instructions]. [Operator

first from Securities. line comes Moore of with CJS question Dan Your the

Your line is open.

It's Dan. morning. for good Lukas Pete Hi,

how macro general what's slow causing to have strong the that visibility if on of professional the learning. and And what for that in there Just on the it do factors or so, drivers may side, you are concerns what starting other training there spending long main with you last? clients you as mentioned do out the see Is flip corporate terms the you've seen? that

Yes, phone, you Pete. on great have Great to the question.

So corporate remains consumer The consumer seeing What in learning And slowdown largely nature. is not but slowdown, strong. to a channels. we demand professional slowdown quite learning, products some related in in professional of that seeing is softness particularly our in cyclical channels we're are for spending. underlying

fact, we'll growth at our demand Talent term corporate for industry out softness that's what to inventory retailers, In -- adjusted an have and inventory later. they is and some we're about talk Corporate excellent leadership and their training our restocking the driving learning of professional our What's online in and certainly seeing where which development, according policies in of in they the practices believe have basically key near demand key effectively is. retailers happening rightsized their team

our It this very, towards consumer making in investment seeing we pullback that and softness in the of consumer their economic can any by we're should talent strategic very key different -- seeing point important relates industry relates are tremendous There that primarily that thing cycle areas business, and digital and in their a in-person to one to on companies seen development. investing a still due or and that a note therefore, education an a in growing Notably, Companies come the is leading where professional our seeing digital training person and a talent to acquisition, specifically, that's is economic are that development, it's that the of temporary is we're is, funds book. funded need solid is -- in driving development so you buying a in corporations very for less is we've It's to development, their in the however, that sector to are which to businesses, professional see, demand yet nicely to what from driving as reallocation demand. money in development obliged demand would this this training than corporations. succeed. that companies or performance personal pursue that And headwind And across spending are softness we're not a of the at do the the corporate training, cycles own -- in time. but things so. prior in most call demand back. the And talent. cyclical is and at plans the retention point to we they're but demand What underlying

we're good tell our you as performance And so pretty there, from numbers. seeing can

of in terms materials, you decline taken in Very has to helpful, you. thank or print that's mainly would usage the leg faster-than-expected due say enrollment And down? another

Yes.

we've retail that we no, we're So prior accounts happening for as the second where periods in of period, this has idea spending. the are is and run. our very learning, two professional the What always answer channels, which during caused by What's is we at this of than adjustment primary accounts, they've just same gave that is largest that been. published in that economic And of it. that attachment and curriculum of had I bulk segment the you about the similar consumer this all changes, seen inventory professionally concern being see is seeing materials to this usage factors, now significant the different evolution the long on

Just students. consumer like affect mean for doesn't are call everybody else. money looking because it doesn't to save Students ways it I

factor our the -- services does our see in and in so the seen certainly, units what about, factors of keep or a in, But I publishing underlying demand. our inventory that to both products, enrollment And nature with two for consumer primarily sectors these and our also that really, underlying cyclical long-term businesses not lines of talking of seeing softness. of number the outlook. affect we seen have line. we're regard the is their But now We we're a that we've that in across demand right shift underlying

journal years a becoming to of larger under into your if And so, a related past? how that Prior percentage Open subscriptions trending what Great, is jump revenue, year's updates you then still research relevant Is just following thanks. research. for on Access contract. percentage you would of metric it your provide and were to

are OA the more that very now. because seen providing very, is work open from timing way haven't -- we're transformation of Yes. the is to to No, we strong continue models say is going and activity help which and I see the models market the And that we agreements annual out. it most transition to mixed this We're the much These guidance where at that just which will agreements. the a importantly, see future. the patterns of that not in we're by that point year, we demand, in for our traditional

-- pick year. will transformational see will as along the chug normal, expect we very continue up We that subscription our to more we balance of to as of and and seasonally through fiscal pipeline strong move a traditional have agreements we the agreements

expect marketplace. Access transition So to long-term supports deals. that, to embracing aggressive perspective. days our about things the these subscription from course, in strategy towards pipeline and yes, strategy, models a the long-term from perspective would as talk relevant And That's are of them a Open a trending traditional new little we less our forward-leaning

still thanks. just opportunistic on debt priorities, the investments, for a internal update is give Great, Can on M&A picture. share focused one is And reduction an outside me, you perhaps it and of priority allocation last more repurchases? on or more capital big

the answering I'll and to it Yes, I'll -- start question over question, then the Christina. Pete, hand

opportunities into have that obviously consistent that. by And driven we about categories. divide long-term we the it very been is company. in allocation belief multiple capital our a our as So We've

I The investments, inorganic and M&A. which our M&A consistent. And first through this the organic here both category such investment investments seen is you've as future is business, will the in strategy of through say

cautious, of and being being being course, focused. patient, We are we're we're

our is our and investment talent our being research to flows strategy tightly So everything drives capital aligned allocation Those and thus our And development. from solutions, our allocation capital areas. growth that. corporate research publishing, in priorities

more can few you say perhaps Christina, So words. a

are there us just note is And to us a Sure, allocation Brian's point. balanced remain has to difficult allowed times, rewarded has and cash balanced very be this thanks. and on flow in exception. no Hi capital to Pete, continuing we that historically, steady our

we're to this. look at So continuing

towards our margin priorities. keeping still are We

and up But a a this line last good market expense is and finally, debt, to mentioned place. you year. And that with outlook, environment dividends priority also we at I'm not that's on specifically is our cash we our about our and is forward. You with look interest leverage our at in and we repurchases, allocate dividends the which that given there, list go now, of right reminder and uncomfortable will half share moving flow share free mentioned, repurchases, as

And stay have but steady. share so repurchases we raising have dividend that, to at paying of And a to We're annually. long course been for and we'll continue the we're there. Thanks look also question. our going yield streak continue nice a the and

Great, jump queue. in thank you back for the the time. will I

no further at will time. now the turn are There questions Napack. this over to call Mr. I

our Thanks forward for a I Well, Year, want to prosperous you us very want QX in New and a to and will Alright. thank seeing sharing healthy joining look happy, very, to and holidays today. I everyone wish everyone very we much. March. results

This Ladies call. conference gentlemen, for participating. concludes and today's thanks

now may disconnect. You