John Wiley & Sons, Inc. (WLY) Earnings Call Transcript & Summary

Good afternoon, everyone, and welcome to Needham's Annual Growth Conference. My name is Taylor Redmond, and I'll be your Needham host for Wiley's presentation this afternoon. Before we begin, just as a quick logistical note, as a reminder, if anyone has questions that they would like submitted for the Q&A session in the last 5 to 10 minutes, please use the function at the top right-hand corner of your screen. And with that, it's my pleasure to introduce Brian Napack, President and CEO; John Kritzmacher, CFO; and Brian Campbell, Vice President of Investor Relations. And with that, Brian, thank you for joining us, and please take it away.

Thanks, Taylor. Much appreciated. So good afternoon. I'm Brian Napack. I'm the CEO of Wiley, and I am very pleased to be here particularly today. Today, we're going to talk about Wiley, a 214 year old American institution. For over 200 years, Wiley has been dedicated to one thing, the advancement of knowledge. Specifically, we're singularly committed to the creation and the dissemination and the application of new knowledge. And through this, we enhance lives. We drive society forward and we enhance the -- advance the human condition. The original customers for Wiley's products back in 1807 when we were founded included actually the framers of the U.S. Constitution. We supplied books to repopulate the Library of Congress after it was burned in the war of 1812. Over the years, Wiley has supported the U.S. and now the global community through many periods of turmoil and disruption, civil war, industrial revolution, 2 world wars, and now 2 pandemics. Through all this, we stayed true to our mission, and that is to unlock human potential, and we've thrived all the way along by adapting, by innovating and by giving the world what it needs to unlock human potential, specifically new, validated knowledge created through scientific inquiry and life-changing education. Today, we're in the latest of our 200-year history of disruptions in the world and in our markets. The good news is have clear strategies that are allowing us to perform our consistent role and to continue to fulfill our mission in the world. And these strategies are resulting in increasing momentum because the 2 things that we do, research and education, are absolutely essential to both addressing the challenges we face today and unlocking the opportunities brought to life by the significant and accelerating change going on in our world. Over the next few minutes, I'll give you an overview of what we do, where we're going and what we're seeing going forward. So at Wiley, we like to say that we power the global knowledge ecosystem. Basically, our role is to speed the volume -- to increase the speed, increase the volume, increase the impact of 2 things, of research and of education. In research, we basically exist to connect scientific inquiry to innovation that leads to outcomes, whether those outcomes are economic advance, a new aircraft engine, landing a man on the moon, or it is as we did earlier this year, publishing of the COVID antibody test so that the world could benefit. On the education side, we specifically talk about connecting education to career outcomes. And here, Wiley's focus, we want to help people get jobs that advance their careers. And so we focus on the careers that really matter in the world. And we'll get to some of this. So in research, we do 2 things. We have our publishing business and our platforms business. And they're complementary businesses that work together. Over 50% of Wiley's revenue comes from research. It's got strong consistent margins, and it's got good cash generation. Basically, in the Content business, the Publishing business, we have a world-renowned portfolio of scientific, technical and medical research journals. These are the journals through which scientific inquiry becomes accepted science. It's essential in the world, has been for many, many years, and it will be for many, many years to come. There is consistent, growing underlying demand for new knowledge in the form of validated research. And as one of the leaders, we're proud to participate in that market. On the platform side, through our platforms, we deliver around half of the world's English language research and we generate over 4 billion user sessions a year. And what a user session is, is when a researcher or a student or a corporate R&D person accesses our database of content in order to advance their inquiry, in order to achieve their goals in order to innovative. We have a dominant position in this business through our Literatum platform. The Wiley business is a largely digital business, the Wiley research business, it's 95% digital, has been for a long time. And we are currently seeing a wave of innovation in that market, which enhances our participation and enhances the future of the business. There's a wide moat, and that wide moat is embodied in our leading brands, because we have the journal brands that researchers want to publish in, we want to publish in the best brands they can, best branded journals they can because it advances their careers and it gets their scientific findings to the greatest possible audience with the greatest possible validation and endorsement. We are regarded in this market as a true innovator, an innovator in the business models that are giving the world more new knowledge faster in the business models and under the terms that they want to access it. We've done strategic national deals, such as our landmark deal in Germany several years ago, where we worked with the entire universe of universities in Germany to develop a model whereby which German researchers could publish their research, their journal papers on a global basis under terms that worked for them. That business, the research business is now growing nicely. It's growing nicely because of our commitment to open access and the growth that is endemic in that market and in that model, and we'll talk more about that. So on the research side, we serve researchers, we serve universities and other institutions, and we serve corporations. On the education side, we're connecting, as I said, education to career outcomes. That's what the world wants, and that's what we're delivering. We do it in 2 sides. We do it through content and courseware, which is on the academic and professional learning side, and we do it in education services, where we help universities and corporations to deliver education that advances their goals. So on the academic and professional learning side, we serve universities all over the world, tens of thousands of universities. We serve them by delivering gold-standard content and courseware, increasingly digital, that they rely on to deliver education. On the corporate side, we similarly deliver content and courseware through platforms, just as we do in universities, to -- digital platforms to our clients. And in those businesses, we're helping universities to develop and grow the talent that they need to succeed. The academic and professional learning side is around 30% of -- 33% of Wiley's revenue. I think it's important to note that the business is increasingly digital, and the digital has been growing very, very nicely and helping people, helping our institutional and corporate partners to achieve their objectives. Because what the world wants is personalized, effective education that delivers skills as quickly as we can to learners and to workers, so that they can achieve their goals and their -- and the universities and corporations can achieve their goals. On the services side, this is a business that's grown up over the last decade or so. And here, universities have been struggling to figure out how to deliver education in online settings. There is very little pure bricks-and-mortar education anymore. Most education is delivered either in a hybrid digital and physical way or in a purely digital way. And naturally, through the time of COVID, what we found is that we're 100% digital, making our business even more essential. So we are one of the gold standard partners helping universities to achieve that goal. Similarly, on the corporate side, we're helping corporations to find and train the talent that they need in order to succeed. That's a smaller part of Wiley, about 14%, the Education Services side, but it is very nicely profitable at this point in time, and we expect it to be a growth engine of Wiley for years to come. And so again, on the Education side, we're connecting education to career outcomes, and we're serving their learners and their institutions and the corporations in which they reside. These 2 sides of the business are very nicely complementary. They work very well together, and there is a network effect because Wiley, in what it does, serves virtually every university of substance in the world, and we do so in one form or fashion, and that -- where we complement it, both on the research side and the education side, and we serve thousands of corporations around the world as well through both the Research and the Education sides of our business. Important to note that 85% of our revenue now comes from digital products and tech-enabled services. So there are some really strong underlying global trends that are driving demand, and these trends have been accelerated by COVID-19. Basically, the world invests in research and education and invest more in research and education every year. We invest in research and education because it works. And that's happening worldwide. On the research side, we've seen a significant growth every year, single digit, mid single-digit growth in the investment in research and development, and that translates into a mid- to high single-digit growth in the core currency of the research business, and that is the article, the research article. That is the format in which researchers and other developers of knowledge format and submit their findings or their discoveries or their theories to a journal like ours, and then we take it forward and we publish it. We validate it. We bring it out to the world. And so you have this mid- to single -- mid- to high single-digit growth in that currency every year. At Wiley, the watchword for Wiley is focused and just -- and we focus across the business, and so we are focused on the areas of highest impact where there is the most investment and the most demand, areas like currently, renewable energy, like artificial intelligence, like vaccine science, naturally, in the health sciences. And Wiley is a leader in these areas of scientific, technical and medical publishing. We have about 1,700 journals that we published through. Demand to publish continues to increase significantly. And before COVID, we were increasing our publishing around 9%. And that's very important. But in the time of COVID, that's jumped up to 20%. Demand has always been strong, but it's accelerated over the past few years, and we expect that continued -- we expect that demand to continue. Important to note that we reject about 3/4 of the articles that we receive, hundreds of thousands of articles. And over time, we're getting much more efficient at publishing. And publishing more and more of those. It's important. We want articles to come into the Wiley ecosystem and get published. And with 1,700 journals, there's a home for most articles. On the education side, again, we've continued to see increasing investment in education worldwide. And what you've seen through the pandemic is an accelerated shift to online learning to digital curriculum and significantly to the education that will take us to careers that will take people to careers that make a difference in their lives. Traditionally, this has been a countercyclical business, and we saw this in the 2009, 2010 recession. Well, we're seeing it now. There's a very challenging labor market. There was a massive skill gap before the pandemic. That skill gap has only increased through the pandemic. And people are focused, if they're going to take their dollars and they're going to invest them in education, they want it to result in career outcomes. And so that's where we focus. And we're seeing this countercyclical trend happening across our business. We're seeing the usage of our educational platforms increase. We're seeing enrollment increase at universities around the world for online and digital learning, even if traditional bricks-and-mortar has suffered due to COVID, but we're seeing an increase in hybrid and online education, which helps Wiley's businesses. And we've seen that specifically in the areas that Wiley focuses in, which is the areas of skill gap. And in our case, we focus in areas such as IT, accounting, finance and teaching. So in those areas, that's where we step in. So these markets, research and education, are good markets in the long term. COVID-19 has accelerated some of the key trends and we are benefiting from them today. We've organized our world around these core trends. And to be a little more specific, we've organized our strategy around 3 trends. The first one is the move to open research. And it's important to know what this is. In the research business, there is an increasing move for research to be published quicker and to being open to the world the minute it's published. This is an evolution of the business from a traditional subscription model with a pay wall to a model where we are paid instead of to read our content, we're paid to publish our content. So it moves from a bundled subscription, which is a very nice business, but with having slow growth, to a price times quantity business where growth is associated with the volume that you publish and the price that you get for that. So we've seen very strong pricing, and we've seen extremely strong volume. So in open research, we've seen 40% growth in open access. We've seen 20-plus percent growth in our article output, and we've seen double-digit usage growth on our platforms where we have over 4 billion sessions a year. That's significant. And it's significant impact. So as a leader in open research, we're benefiting from those trends, the business model evolution and our leadership position, thereby allowing us to grow at a nice clip. The second major trend is the move to online education overall. Increasingly, as we discussed, education is moving online, it's moving hybrid, it's moving online. This is accelerated through the time of COVID naturally because bricks-and-mortar schools have been closed down. But the trends have been going on for a long time, and we expect them to continue. To date, we've seen 20% growth in our new enrollments in our online curriculum programs and our online degree programs, I should say. We've seen 13% growth overall, so that's the difference between the students starting this fall and our entire student population. And significantly, we've hit our targets, and we are now over 15%, actually, 17% in the first half EBITDA margins, up from 9% last year. So we have a nice growing business in online education, and it is now a nicely profitable business. So the third major trend, drafting off of that move to digital education, is the move to digital curriculum. As education goes online, the idea of an old-fashioned textbook becomes obsolete. We've been on a migration for a long time to digital courseware. Digital courseware is a much better product than an old print product, and we can deliver it at a lower price. It's a better product because instead of just being static content, it's personalized content, it's dynamic content. It has homework systems. It has the ability for teachers to assign work to assess students' progress and to collaborate in a community with students where we can move forward, and that's essential in online learning. So in the time of COVID, while schools shut down, and there was a relatively small decline in enrollment overall, hybrid education and online education, as you can see, have grown dramatically. And so in this area, we've seen a fundamental pivot to growth to the usage of these digital products and to growth driving off of these digital products. And it's really important to know that as we have moved through this digital transition, accelerated by COVID, we are repatriating units, which formerly would have been our content, a used textbook, but we didn't get paid for it. And now we have the benefit in the digital curriculum world of being able to lower the price of content, increase the quality and thereby repatriate units, taking us from low sell-throughs to a 90-plus percent sell-throughs as we go through here. So the future is looking good in this business. COVID has accelerated it. In the digital businesses, we have added significant capability, and we're seeing that pay off. So these core -- 3 core strategies: pursue open research, pursue online education and online degrees, and to pursue online curriculum, both in the university and the corporate settings, has been, a, it's been paying off; and b, it's been supported over the last few years by some important investments that we've made to support these strategies. Initially, back in 2017, we acquired Literatum, which was a company called Atypon, and that allowed us to become immediately the leader in content distribution, and we've only added to our dominant position. Again, we distribute over half of the world's English language research. In 2018, we acquired Learning House, adding it to our Wiley Education Services business, that third column that I had talked about, and in doing so, we became the most diverse provider of education services, continuing our reputation as a gold standard provider, delivering across multiple business models and the largest network of universities. So we have a tremendous position in that business that was enhanced by the acquisition of Learning House, a proven innovator in that market. In 2019, we signed a landmark deal with Germany to evolve the business, to partner with them in order to ensure that German content gets out to the world and that German researchers can have access to all of our content, both under open access and paid subscription models, and we established ourselves as a core leader at that point in time in the open access movement. Also that year, we acquired zyBooks and Knewton to very rapidly growing parts of our portfolio now. These are 2 platforms that were leaders in their disciplines and allowed us to do this thing that I talk about whenever I talk about Wiley, which is deliver a great value proposition. Great product. These are the 2 of the best products in the marketplace, and they are winning, and deliver it at a low price. So we've been seeing great benefits from that. And just at the end of 2019, we acquired M3. And what M3 allowed us to do is move into the market of servicing corporations by literally delivering in the IT space to fill the skill gap, the greatest area of need in the marketplace, IT talent, to source and put into jobs job-ready talent to the world's leading corporations. And finally, just recently, just a couple of weeks ago, through the holidays, we acquired Hindawi, which is the leader in open access publishing, brought to us 200 journals, a portfolio of 200 journals, many have quite high quality. It is one of the fastest-growing open -- fastest-growing publishers in the world, a leader in open access, and brings to us not just the growth in open access, but also an extremely low cost, efficient and user-friendly publishing platform. Again, supporting these 3 strategies that I talk about over and over again, open access, open research; number two, Digital Degrees; number three, digital content and courseware. Okay. The result is that we're gaining momentum. So we've transitioned through the time of COVID through a remote environment. We did it very well. Our employees are productive and engaged. We have extremely high levels of engagement in our -- with our employee base. Our employee base is a passionate, mission-driven group of people around the world who get up in order to advance research and education so that they can change the world. We have increased our engagement and sustained that. We have increased our productivity and sustained that through this process. That's important. More importantly, our colleague base has remained focused on helping our customers through what is a very difficult period for them. The research and the university ecosystem have faced adversity like everybody else in dealing with the lockdowns, the financial difficulties and so forth. And we've learned through this process that what we do as Wiley is absolutely essential to our customers. They continue to come. In fact, they're coming more to us. And we've learned that we can execute for them in this difficult environment and fundamentally deliver for them. It's really important. So through this period, we've delivered unprecedented publishing output. We've won important adoptions. We've won significant new university partners and corporate partners, and we've driven strong performance. As you can see in the first half, we have revenue up 4%; EBITDA up 7%; earnings per share up 33%; and free cash flow up 20%. And this comes despite some material COVID-related headwinds that we saw in the business, specifically in parts of our business like in-person corporate training. Well, corporations just shut down and nobody's going to the office, you can't exactly have in-person corporate training. So we had that little business of ours, an important business, but a little business really had trouble. Happily, they've now pivoted so that 85% of their training in just a few months is now done digitally and virtually. So we've adapted. Obviously, book stores were closed. So we lost some print book sales. Well, that's a legacy part of the business, a small part of Wiley, print book publishing, but it was very important to us. And now we've managed to work around that. And there are other areas as well. But despite that, we've delivered what we consider very good performance because we're meeting some very significant market needs. Also through this, very important to know that we are continuing to optimize the business. As we come out of COVID, we're going to continue to have a hybrid working environment. So we're going to move more and more toward virtualization, and we expect to reduce our real estate footprint by about 12%, and we anticipate material run rate savings in the next fiscal year. In content development across the company, we continue to drive improvements in the publishing cycle times so that we can give the market what it wants, which is the content faster and reduce the cost per article. Across the business, we're investing in e-commerce and direct channels, so that we can deal directly without intermediation with our customers. That's true in our content and courseware businesses. It's true in our research businesses. It's true in our Education Services business. We are increasingly in direct contact with the customer, servicing them directly. For example, right now, about 18% of our Education Publishing business, one of our most traditional businesses, is happening directly with us through e-commerce. And of course, we are optimizing customer acquisition across the company, a very important expense item for us. And so you'll see in areas like Education Services, where we spend a lot of money to acquire students for universities. We're reducing that expense significantly while significantly increasing our throughput, meaning our students that we engage with, our students we get to apply and our students that we wind up in life-changing education programs at our university partners. And all of this will continue to fuel EBITDA growth. So we're pretty pleased with the performance that we've achieved through the first half of the year and are increasingly confident in the future as we go through COVID and as we come out the other side. Certainly, some uncertainty still exists due to the uncertainty surrounding the economic situation with regard to COVID and its continuing effect on the global economy, but the core business that Wiley sees, the business of open access publishing, the business of online degree programs and the business of online content and courseware to support hybrid and online education, we see strong demand for these essential products and services. So as we look forward toward the end of the year, you'll see that performance continue. In revenue, we expect growth in Research and Ed Services to more than offset any declines in Academic & Professional Learning, those declines that I talked about due to some of these businesses that were most directly affected. Virtually all of those are in the Academic & Professional Learning area. And that will -- those revenue gains will translate at a good clip into our earnings, fueled in addition by business optimization savings, which I talked about as we optimize the business and COVID-related savings, which will continue and which we hope to lock in many of, even in the post-COVID period. All of that should lead to very good free cash flow conversion as we go forward. So all in all, a pretty good picture as we continue to execute our focused strategy to capitalize on the underlying strength in our markets and to support our core customer-driven trends that are shaping the future of not just research and education, but shaping the future of the world. So in sum, the business is strong. We continue to pursue our mission to unlock human potential by powering the global knowledge ecosystem. We will continue to innovate for our customers through these difficult times and help them achieve their really important goals. We see favorable trends in the business and trends that are accelerating, trends that support our core strategies and the fact that we've built our core strategies on. We talked about those repeatedly in this presentation. We are regarded as a change leader in our markets, and we're seeing the benefit of this, increasing demand to publish and research, which you see in our publishing output and in our revenue, accelerating enrollment and profit growth in our Education Service business through our university partners. Significant progress in returning education publishing to profitable growth by driving sell-through, lower price, higher quality and through affordable digital units, and by improving margins and by optimizing our workflows, our structure, our processes and our manner doing business. Our core markets are essential, they're resilient. Many of them are countercyclical. Our core strategies are working, are from financial position, rock solid. And at the time of the Hindawi acquisition, we also announced the resumption of our share repurchase program, which is significant. Our balance sheet and cash flow will continue to support the investments we need to make to satisfy our customer needs to innovate while continuing to return capital to shareholders in the form of both dividends and repurchases. So with that, I want to thank you for listening in, and I want to pass it back to Taylor to moderate our Q&A.

Perfect. [Operator Instructions] But to kick things off, first investor question, what gives you confidence with the online education system -- segment, excuse me, that growth can continue and isn't just a pull forward in demand that will revert post vaccine? And just how do you expect interest from students and university partners to evolve over the next few years?

Yes. It's a great question and a natural question. So we have in our Education Service business, a business that initially immediately following the lockdowns wound up seeing interest dry up for a month or so as the world was stunted. Nobody knew what to do next. Students didn't know what to do next and university presidents didn't know what to do next. And the initial response that university presidents had was to figure out how the hell they survive. And that sense of survival continued through the summer, through the middle of the summer. They weren't thinking, we got lots of calls in the spring and in the summer, how to help schools get online because they knew they weren't going to be able to deliver an in-person education, at least not most of them, at least not a traditional in-person education. And so we did some important business there, helping our university partners and some new university partners to overcome that -- those problems. But sometime around the summer, they started thinking about the strategic future. And that strategic future, they realize all of a sudden, is not limited by online, but it's enhanced and enabled by online. Because what they realize and what students have realized is that online education can fit better into people's lives, that it can be cheaper, more efficient, that you can get through it quicker in certain cases, that you can get the skills that you need as a student and deliver those skills as a university that the world wants to advance. And what we've seen in -- from the initial lull is we've seen both students and university administrators be interested in our services at an increased level, not a decreased level. So it is absolutely recent. And so we saw a very little initial demand, right? We saw leads dry up at the beginning. But they quickly started to come back because students realize -- potential students and workers realize that they needed the skills that they could get from an education and the credential that they could get in order to achieve their career goals, and so they started flowing back in droves. And when they flowed back and when schools came back, they realized that online education is not just a necessary evil, but in fact, it's good. It delivers a great value proposition, both hybrid and online. So is it -- can I with confidence say that it all -- that we continue at this clip? No, because there is some -- absolutely, to be sure, there are some increased enthusiasm out of need and out of momentum for online degrees, but we are absolutely not going back because we're putting more universities on because of this. We're helping universities that never would have considered it before now get online. And the product is advancing. So we, as a partner of some of the leading universities, will benefit from that momentum. So I can't say I or anybody else knows exactly the ebbs and flows of demand in the marketplace. But what I can say is that this is not a temporary change. This is a permanent change. How much of that flows through, how much of the current increase flows through, we will see. We're going to see a lot in January, and we'll see even more in the fall. But we're very optimistic based upon the significant growth of our network, of programs and universities and our ability to efficiently, really efficiently find -- help the right students find the right programs that can enhance their career potential.

Perfect. And switching gears a bit. Can you just talk about the possibilities and catalysts that would drive improving growth in revenues, both in the short-term as well as the more long term?

Growth. I'm not sure I understand the question, Taylor. Is that for the whole business? Or did I miss something in your question?

For the whole business. So it was an investor question that I was reading. And it was just what are the possibilities of improving growth in revenues in both the short and long-term for the whole business?

Yes. Okay. So I'll do a quick -- I'll do a really quick walk through to talk about how we feel about growth and where it's going to come from, the different parts of the business. So on the Research business, which are our largest and financially most important business, I talked earlier about the significant growth underlying the Research business in both research funding and more importantly, how that translates into article production. So the drivers of growth in that business will be that underlying increase, that 4%, 5% growth that happens in research article output every year, through our increasing -- increased share in that market, right? We were growing at 9% before we went into the pandemic. And then through the translation of the significant increase in submissions that we get every year associated with that into articles. So that happens because as we -- when we get articles, we convert, as I said earlier, we convert currently about 25% of them into published articles because we accept about 25%. Every year, that number goes up, and it goes up because most of those articles are publishable, if we find the right home in our 1,700 -- actually 1,900 journal. I just -- we added Hindawi a couple of weeks ago, so our 1,900 journal portfolio, and that's what we call the cascade. So we'll get more growth from the cascade. As articles flow in, we publish more of them. And then finally, as we move from the subscription model, which was price constrained due to library budgets, to the price times quantity model, which is the open access model, where if you publish an article, you get paid for it and you get paid a price, we will publish -- because that's the area that's growing the most rapidly, we will publish more articles and because prices are solid to increasing for those with the -- well, for all, but certainly, for those with the journal brands, the essential differentiated journal brands that we have, price times quantity at a high growth rate will translate into growth for us. And you're absolutely seeing that in our numbers, and we talked about some of them earlier. In the Ed Services side of our business, growth will come through the increasing proportion of degrees that are gained online and through the increasing depth of the relationship that we have with our university partners, and all of that will translate into the unit of currency on that side of the business. And the unit of currency in Education Services is the student, the matriculating degree-seeking students. And so the more people, the endemic growth in the marketplace of more students seeking online and hybrid degrees through a growing portfolio of partners. You see us announce our portfolio. It increases all the time. Through and even more important than that is the increasing number of programs that we launch within our existing portfolio because I'd rather grow fewer better partners than necessarily simply grow the system. We are very picky at Wiley about who we're in business with. So we see our -- prune our portfolio all the time. And then through the efficient acquisition of students in the marketplace, and the conversion of those students into degree -- into matriculating degree-seeking students. And we have this year, that we have increased our growth by attracting more leads, converting those leads at a higher proportion than ever before into matriculating students. So again, it's a combination of endemic demand, us having the network effect of this large, high-quality network and the ability to go into the market with a differentiated skill set to find the students that will -- that match with the school and to matriculate those students into and very significantly for Wiley through those programs into not just degrees, but into life-changing jobs. Now if we go into the Academic & Professional Learning part of the business, where we're talking about moving units of content and courseware and training. And here, we will continue. We have a print business that's not going to be a high-growth part of our business, but people still like books, and that's a smaller part of our business. It's -- the actual printed book part of our business is small, getting smaller all the time. And -- but in the online content and courseware parts of that business, we're going to grow it in 2 ways. The first way is the way I talked about earlier. Once again, as the world moves toward online education and toward online degrees, the product is necessary. So we will be not -- we will be winning more adoptions because we have been, and our market share, significant to know in the academic content business has increased by 25% in the last 12 months because we're executing by winning adoptions and then we are -- adoptions, meaning a classroom of students, and then we are converting those students into units at a higher level than we have in a long, long, long time because, again, we're going from a 30%, 35% sell-through, which is what we got in the book business, people weren't very excited about those high-priced products, to a world where we are -- have a lower priced, higher quality product, and we're going from a 30%, 35% sell-through to a 95% sell-through, which is what we get with products like our industry-leading, winning zyBooks products, Knewton products and Wiley-plus digital products. And on the corporate side, the same holds true. As we move to digital, we expand our relationships, we expand our access to audience, and we convert that audience. And if you look at the usage of our digital programs in corporate and the corporate parts of our business now, the usage is dramatically up. Dramatically up usage means deeper partnerships, means we're achieving our objectives for us and for our partners. So those are the sources of growth for Wiley. They line up directly with those 3 trends and 3 strategies that I talked about several times during this presentation.

Great. Thank you for that, Brian. And I am being told that we are out of time. So probably makes sense to end it there. But can't thank you enough for all of your time today and taking the time to present. Wish you all the best of luck in your meetings the rest of the week. But again, thank you for the time. And on behalf of Needham, thank you for attending the conference.

Well, thanks for having us. It was a pleasure to be here. Great conference and appreciated the really good questions. I look forward to doing it again.