John Wiley & Sons, Inc. (NYSE:WLY) Q3 2023 Earnings Call Transcript

Daniel Moore: Very helpful. And then maybe, can you provide as it relates to — I think last quarter was $50 million. In run rate cost savings, up to $60 million. Any more specificity in terms of the biggest buckets of those cost savings in personnel versus platforms? Just kind of how we break those up. And I’m assuming about half of the $60 million falls in ’23 with the remainder in ’24. Is that — the ’24 is that earmarked for profitability? You can see some of that being reinvested. Just trying to get a sense for how quickly we can rebound in terms of margins and profitability.

Christina Van Tassell: Sure. I’ll take that one, Dan. Thanks. Yes, about approximately half of that restructuring is people-related costs, and the other half are things like real estate and other measures. And yes, for next year, $60 million run rate. We have $30 million this year. You’re $30 million in the future. And we are in the process of — in our planning and our guidance and all of that, looking at how much of that we do want to reinvest and how much we want to — and obviously, when we’re reinvesting, we’re looking to — we’re looking to invest towards long-term margin accretion and also how much you want to actually drop in the short term.

Brian Napack: Yes. And on top of that, I’ll give a little bit more broad color. I did this pretty well in my prepared comments, but we are leaning in and accelerating our programs in both simplification and optimizations. We feel very confident and are seeing the evidence of the effectiveness of our strategies, and we’re executing against them like we always said, but we’re not comfortable with the way yet that we are converting that into cash and profitability. And so these programs are right now being accelerated, and we’re looking forward to talking to you more about that in June as we flesh out those plans and lock in those, what’s going to come in terms of savings and when, some of which, of course, will be in ’24, but a lot of it will be in the longer term as we move forward.

Operator: . And there are no further questions. I would like to turn the call back over to Mr. Napack.

Brian Napack: All right. Look, thanks for joining the call today. I think it was a good call. We look forward to sharing Q4 and full year results in June and having a good, rich and robust discussion then. Until then, again, thank you very much for attending.

Operator: And that does conclude today’s presentation. Thank you for your participation, and you may now disconnect.