HOBOKEN, N.J.–(BUSINESS WIRE)–John Wiley & Sons, Inc. (NYSE:JWA)(NYSE:JWB), a global research and education company, today announced results for the first quarter ended July 31, 2019.
- GAAP results: Revenue of $424 million (higher by $13 million, +3%), EPS of $0.06 (lower by $0.39 including a net restructuring charge impact of -$0.22) and Net Cash Used in Operating Activities of $94 million (improved $51 million)
- Adjusted results excluding FX: Revenue +5% (+0.5% excluding acquisitions), EBITDA -18%, and EPS -53%
- Free Cash Flow improvement of $45 million primarily driven by the timing of journal cash collections
- Acquisition of Zyante (zyBooks) further positions Wiley as a leader in the fast-growing digital courseware market for computing and STEM
MANAGEMENT COMMENTARY
“Our Research and Education Services segments demonstrated strong momentum in the first quarter,” said Brian Napack, Wiley’s President and CEO. “Softness in Education Publishing & Professional Learning revenue, in a seasonally smaller quarter for that segment, weighed on results overall. That segment’s profit contribution was further impacted by investments in growth initiatives such as the acquisitions of zyBooks and Knewton, which significantly expanded our digital courseware offerings and adaptive learning technologies. Cash flow performance for the quarter was very favorable, consistent with our expectations for clearing the Q4 backlog of calendar year 2019 journal subscription collections. We remain confident in our full year outlook.”
NEW SEGMENT REPORTING
To reflect shifts in its management structure, the Company has implemented a new reporting structure comprised of three reportable segments: (1) Research Publishing & Platforms, which includes the Research publishing and Atypon businesses; (2) Education Publishing & Professional Learning, which is the former “Publishing” segment combined with our corporate training businesses – previously noted as Professional Assessment and Corporate Learning; and (3) Education Services, which is the online program management business. Please see the attached financial schedules for more detail, including restated segment results for the prior year.
FINANCIAL SUMMARY
Wiley provides non-GAAP financial measures and performance results such as “Adjusted EPS,” “Adjusted Revenue,” “Adjusted Operating Income,” “Adjusted EBITDA,” “Adjusted CTP,” “Free Cash Flow less Product Development Spending,” “inorganic contribution,” and results on a Constant Currency basis to assess underlying business performance and trends. Management believes non-GAAP financial measures, which exclude the impact of restructuring charges and credits and certain other items, provide a useful comparable basis to analyze operating results and earnings. See the reconciliations of non-GAAP financial measures and explanations of the uses of non-GAAP measures in the supplementary information accompanying this press release.
|
GAAP Measures Unaudited ($millions except for EPS) |
Q1 2020 |
Q1 2019 |
Change |
|
Revenue |
$423.5 |
$410.9 |
+3% |
|
Operating Income |
$4.6 |
$36.1 |
(87%) |
|
Diluted EPS |
$0.06 |
$0.45 |
(87%) |
|
Net Cash Used in Operating Activities |
($94.2) |
($145.0) |
+35% |
|
Non-GAAP Measures |
Q1 2020 |
Q1 2019 |
Change Constant Currency |
|
Revenue |
$423.5 |
$410.9 |
+5% |
|
Adjusted Operating Income |
$15.3 |
$30.1 |
(52%) |
|
Adjusted EBITDA |
$57.5 |
$70.2 |
(18%) |
|
Adjusted EPS |
$0.21 |
$0.43 |
(53%) |
|
Free Cash Flow Less Product |
($124.6) |
($169.5) |
+27% |
Wiley recorded foreign currency variances in the quarter of $6 million unfavorable in revenue, $0.7 million favorable in operating income, $0.2 million favorable in EBITDA, and $0.01 favorable in EPS.
-
Revenue growth in Research Publishing & Platforms and Education Services was offset by a decline in Education Publishing & Professional Learning.
- Research Publishing & Platforms Revenue increased 2% on a reported basis and 3% on a constant currency basis driven by sustained growth in Research Publishing (+3%) and Atypon platform services (+10%).
- Education Publishing & Professional Learning Revenue declined 7% on a reported basis and 6% on a constant currency basis, mainly due to declines in the books businesses and test prep, partially offset by growth in corporate training. On July 1, Wiley acquired Zyante (zyBooks), a leading provider of computer science and STEM education courseware, for $56 million in cash.
- Education Services Revenue increased 69% (reported and constant currency), driven by the addition of Learning House (acquired November 2018) and organic growth of 9% at constant currency.
-
GAAP Operating Income decline included an $11 million restructuring charge in this period. Adjusted Operating Income and Adjusted EBITDA declines were mainly due to investment in growth initiatives and technology, accompanied by higher operating expenses in Education Publishing.
- Research Publishing & Platforms CTP declined 3% on a reported basis but rose 3% on an adjusted basis at constant currency. Improved performance was driven by revenue growth. Adjusted EBITDA rose 5% at constant currency.
- Education Publishing & Professional Learning CTP declined 77% on a reported basis and 64% on an adjusted basis at constant currency due to the revenue decline, investments in growth initiatives, and costs associated with the Knewton and Zyante acquisitions. Adjusted EBITDA declined 37% at constant currency.
- Education Services CTP declined by $2 million to a loss of $7 million primarily due to $2 million in restructuring charges. Adjusted EBITDA grew to $0.4 million from a loss of $1.8 million.
- Corporate Expenses for the quarter increased 29% over prior year to $49 million. At constant currency and excluding restructuring charges (credits), expenses rose 9%, driven mainly by an increase in costs associated with strategic planning and business optimization efforts.
- Restructuring charges recorded in the quarter were $11 million for severance and other costs related to our multi-year business optimization program, for a year-over-year unfavorable cost variance of $17 million.
- GAAP EPS decline reflected lower operating income, partially offset by foreign exchange gains and a lower effective tax rate. Adjusted EPS decline was primarily due to lower adjusted operating income.
- Net Cash Used in Operating Activities was $94 million compared to a net use of $145 million in the prior year period, primarily driven by the timing of cash collections and payments. Free Cash Flow less Product Development Spending was a use of $125 million compared to a use of $170 million in the prior year. Generally, Cash From Operating Activities is a use of cash in the first half of Wiley’s fiscal year principally due to the timing of collections for annual journal subscriptions. Capital expenditures, including Technology, Property, and Equipment and Product development spending, rose $6 million to $30 million due to increased investment in products and platforms.
- Acquisitions: Wiley spent $73 million in total on acquisitions in the quarter, including zyBooks and Knewton. zyBooks and Knewton significantly expand Wiley’s market position in high-growth areas of education, including digital courseware and adaptive learning for high-demand disciplines and low-cost, high impact offerings.
- Shareholder Return: In June, Wiley raised its dividend to $0.34 per share (+3% increase). The Company repurchased 217,511 shares for a total of $10 million, with an average per share cost of $45.97. Approximately 1.7 million shares remain in the current authorization for share repurchases.
FISCAL YEAR 2020 OUTLOOK
The Company is reaffirming its financial outlook with updates that reflect the addition of zyBooks. Note, Knewton was included in the original outlook.
|
ITEM (IN MILLIONS, EXCEPT EPS) |
ORIGINAL FY20 OUTLOOK* |
ZYBOOKS IMPACT |
UPDATED FY20 OUTLOOK* |
|
Revenue |
$1,840-$1,870 |
+$15 |
$1,855-$1,885 |
|
Adjusted EBITDA |
$360-$375 |
($3) |
$357-$372 |
|
Adjusted EPS |
$2.45-$2.55 |
($0.10) |
$2.35-$2.45 |
|
Free Cash Flow |
$210-$230 |
Insignificant |
Unchanged |
*Outlook is at constant currency (reflecting FY19 average exchange rates)
EARNINGS CONFERENCE CALL
Scheduled for today, September 5 at 10:00 a.m. (ET). Access the webcast on Wiley.com, at https://www.wiley.com/en-us/investors. U.S. callers, please dial +1 844-231-0103 and enter the participant code 4291438#. International callers, please dial +1 216-562-0402 and enter the participant code 4291438#.
ABOUT WILEY
Wiley drives the world forward with research and education. Through publishing, platforms and services, we help researchers, professionals, students, universities, and corporations to achieve their goals in an ever-changing world. And for more than 200 years, we have delivered consistent performance to all of our stakeholders. The Company’s website can be accessed at www.wiley.com.
FORWARD-LOOKING STATEMENTS
This release contains certain forward-looking statements concerning the Company’s Fiscal Year 2020 Outlook, operations, performance, and financial condition. Reliance should not be placed on forward-looking statements, as actual results may differ materially from those in any forward-looking statements. Any such forward-looking statements are based upon a number of assumptions and estimates that are inherently subject to uncertainties and contingencies, many of which are beyond the control of the Company and are subject to change based on many important factors. Such factors include, but are not limited to: (i) the level of investment in new technologies and products; (ii) subscriber renewal rates for the Company’s journals; (iii) the financial stability and liquidity of journal subscription agents; (iv) the consolidation of book wholesalers and retail accounts; (v) the market position and financial stability of key online retailers; (vi) the seasonal nature of the Company’s educational business and the impact of the used book market; (vii) worldwide economic and political conditions; (viii) the Company’s ability to protect its copyrights and other intellectual property worldwide (ix) the ability of the Company to successfully integrate acquired operations and realize expected opportunities; (x) the Company’s ability to realize operating savings over time and in fiscal year 2020 in connection with our multi-year Business Optimization Program and (xi) other factors detailed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any such forward-looking statements to reflect subsequent events or circumstances.
| JOHN WILEY & SONS, INC. | ||||
| SUPPLEMENTARY INFORMATION (1)(2) | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
| (in thousands, except per share data) | ||||
| (unaudited) | ||||
| Three Months Ended | ||||
| July 31, | ||||
|
2019 |
2018 |
|||
| Revenue, net |
$ 423,530 |
$ 410,901 |
||
| Costs and expenses: | ||||
| Cost of sales |
143,096 |
127,738 |
||
| Operating and administrative expenses |
250,170 |
240,426 |
||
| Restructuring and related charges (credits) |
10,735 |
(6,086) |
||
| Amortization of intangibles |
14,970 |
12,683 |
||
| Total Costs and Expenses |
418,971 |
374,761 |
||
| Operating Income |
4,559 |
36,140 |
||
| As a % of revenue |
1.1% |
8.8% |
||
| Interest expense |
(6,077) |
(2,796) |
||
| Foreign exchange transaction gains (losses) |
2,652 |
(1,729) |
||
| Interest and other income |
2,833 |
2,466 |
||
| Income Before Taxes |
3,967 |
34,081 |
||
| Provision for income taxes |
343 |
7,786 |
||
| Effective tax rate |
8.6% |
22.8% |
||
| Net Income |
$ 3,624 |
$ 26,295 |
||
| As a % of revenue |
0.9% |
6.4% |
||
| Weighted-Average Shares – Diluted |
56,905 |
58,114 |
||
| Earnings per share – Diluted |
$ 0.06 |
$ 0.45 |
||
| Notes: | ||||
| (1) The supplementary information included in this press release for the three months ended July 31, 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. In the three months ended July 31, 2019, we completed the acquisition of Zyante Inc. (“Zybooks”), certain |
||||
| (2) All amounts are approximate due to rounding. |
| JOHN WILEY & SONS, INC. | |||||
| SUPPLEMENTARY INFORMATION (1) | |||||
| RECONCILIATION OF GAAP EPS to NON-GAAP ADJUSTED EPS – DILUTED | |||||
| (unaudited) | |||||
| Three Months Ended | |||||
| July 31, | |||||
|
2019 |
2018 |
||||
| GAAP Earnings Per Share – Diluted |
$ 0.06 |
$ 0.45 |
|||
| Adjustments: | |||||
| Restructuring and related charges (credits) (A) |
0.14 |
(0.08) |
|||
| Foreign exchange losses on intercompany transactions (B) |
0.01 |
0.05 |
|||
| Non-GAAP Adjusted Earnings Per Share – Diluted |
$ 0.21 |
$ 0.43 |
|||
| Notes: | |||||
| (A) | Adjusted results exclude restructuring and related charges (credits) associated with our recently announced multi-year Business Optimization Program and our previous Restructuring and Reinvestment Program. For the three months ended July 31, 2019 and 2018, there were charges of $10.9 million, or $0.14 per share and none, respectively, related to the Business Optimization Program. For the three months ended July 31, 2019 and 2018, there were credits of $0.2 million, or no impact per share, and credits of $6.1 million or $(0.08) per share, respectively, related to the Restructuring and Reinvestment Program. |
||||
| (B) | Adjusted results exclude foreign exchange losses associated with intercompany transactions. For the three months ended July 31, 2019 and 2018, there were losses of $0.3 million, or $0.01 per share and losses of $4.0 million or $0.05 per share, respectively. |
||||
| (1) See Explanation of Usage of Non-GAAP performance measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful information to investors. The supplementary information included in this press release for the three months ended July 31, 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
|||||
| JOHN WILEY & SONS, INC. | |||||
| SUPPLEMENTARY INFORMATION (1) | |||||
| RECONCILIATION OF GAAP NET INCOME to NON-GAAP EBITDA AND ADJUSTED EBITDA | |||||
| (unaudited) | |||||
| Three Months Ended | |||||
| July 31, | |||||
|
2019 |
2018 |
||||
| Net Income |
$ 3,624 |
$ 26,295 |
|||
| Interest expense |
6,077 |
2,796 |
|||
| Provision for income taxes |
343 |
7,786 |
|||
| Depreciation and amortization |
42,219 |
40,171 |
|||
| Non-GAAP EBITDA |
52,263 |
77,048 |
|||
| Restructuring and related charges (credits) |
10,735 |
(6,086) |
|||
| Foreign exchange transaction (gains) losses |
(2,652) |
1,729 |
|||
| Interest and other income |
(2,833) |
(2,466) |
|||
| Non-GAAP Adjusted EBITDA |
$ 57,513 |
$ 70,225 |
|||
| Notes: | |||||
| (1) See Explanation of Usage of Non-GAAP performance measures included in this supplementary information for additional details on the reasons why management believes presentation of each non-GAAP performance measure provides useful information to investors. The supplementary information included in this press release for the three months ended July 31, 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
| JOHN WILEY & SONS, INC. | ||||||||||
| SUPPLEMENTARY INFORMATION (1) | ||||||||||
| SEGMENT RESULTS | ||||||||||
| (in thousands) | ||||||||||
| (unaudited) | ||||||||||
| % Change | ||||||||||
| Three Months Ended July 31, | Favorable (Unfavorable) | |||||||||
|
2019 |
2018 (2) |
Reported | Constant Currency |
|||||||
| Research Publishing & Platforms: | ||||||||||
| Revenue, net | ||||||||||
| Research Publishing |
$ 219,927 |
$ 216,714 |
1% |
3% |
||||||
| Research Platforms |
9,448 |
8,603 |
10% |
10% |
||||||
| Total Revenue, net |
$ 229,375 |
$ 225,317 |
2% |
3% |
||||||
| Contribution to Profit |
$ 55,646 |
$ 57,317 |
-3% |
-3% |
||||||
| Adjustments: | ||||||||||
| Restructuring charges (credits) |
2,620 |
(980) |
||||||||
| Non-GAAP Adjusted Contribution to Profit |
$ 58,266 |
$ 56,337 |
3% |
3% |
||||||
| Depreciation and amortization |
17,153 |
15,365 |
||||||||
| Non-GAAP Adjusted EBITDA |
$ 75,419 |
$ 71,702 |
5% |
5% |
||||||
| Education Publishing & Professional Learning: | ||||||||||
| Revenue, net | ||||||||||
| Education Publishing |
$ 65,523 |
$ 74,034 |
-11% |
-10% |
||||||
| Professional Learning |
79,335 |
82,390 |
-4% |
-2% |
||||||
| Total Revenue, net |
$ 144,858 |
$ 156,424 |
-7% |
-6% |
||||||
| Contribution to Profit |
$ 4,911 |
$ 21,767 |
-77% |
-78% |
||||||
| Adjustments: | ||||||||||
| Restructuring charges (credits) |
2,805 |
(717) |
||||||||
| Non-GAAP Adjusted Contribution to Profit |
$ 7,716 |
$ 21,050 |
-63% |
-64% |
||||||
| Depreciation and amortization |
16,524 |
17,577 |
||||||||
| Non-GAAP Adjusted EBITDA |
$ 24,240 |
$ 38,627 |
-37% |
-37% |
||||||
| Education Services: | ||||||||||
| Total Revenue, net |
$ 49,297 |
$ 29,160 |
69% |
69% |
||||||
| Contribution to Profit |
$ (7,199) |
$ (5,019) |
-43% |
-44% |
||||||
| Adjustments: | ||||||||||
| Restructuring charges (credits) |
2,089 |
(208) |
||||||||
| Non-GAAP Adjusted Contribution to Profit |
$ (5,110) |
$ (5,227) |
2% |
2% |
||||||
| Depreciation and amortization |
5,498 |
3,467 |
||||||||
| Non-GAAP Adjusted EBITDA |
$ 388 |
$ (1,760) |
# | # | ||||||
| Corporate Expenses: |
$ (48,799) |
$ (37,925) |
-29% |
-30% |
||||||
| Adjustments: | ||||||||||
| Restructuring charges (credits) |
3,221 |
(4,181) |
||||||||
| Non-GAAP Adjusted Corporate Expenses |
$ (45,578) |
$ (42,106) |
-8% |
-9% |
||||||
| Depreciation and amortization |
3,044 |
3,762 |
||||||||
| Non-GAAP Adjusted EBITDA |
$ (42,534) |
$ (38,344) |
-11% |
-10% |
||||||
| Consolidated Results: | ||||||||||
| Revenue, net |
$ 423,530 |
$ 410,901 |
3% |
5% |
||||||
| Operating Income |
$ 4,559 |
$ 36,140 |
-87% |
-89% |
||||||
| Adjustments: | ||||||||||
| Restructuring charges (credits) |
10,735 |
(6,086) |
||||||||
| Non-GAAP Adjusted Operating Income |
$ 15,294 |
$ 30,054 |
-49% |
-52% |
||||||
| Depreciation and amortization |
42,219 |
40,171 |
||||||||
| Non-GAAP Adjusted EBITDA |
$ 57,513 |
$ 70,225 |
-18% |
-18% |
||||||
| Notes: | ||||||||||
| (1) The supplementary information included in this press release for the three months ended July 31, 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
||||||||||
| (2) As previously announced, we have changed our segment reporting structure to align with our strategic focus areas: (1) Research Publishing & Platforms, which continues to include the Research and Atypon businesses, (2) Education Publishing & Professional Learning, which is the former “Publishing” segment combined with our corporate training businesses – previously noted as Professional Assessment and Corporate Learning and (3) Education Services, which includes our Online Program Management and related businesses. Prior period segment results have been revised to the new segment presentation. There were no changes to our consolidated financial results. |
||||||||||
| # Not meaningful | ||||||||||
| JOHN WILEY & SONS, INC. | |||||
| SUPPLEMENTARY INFORMATION (1) | |||||
| CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||||
| (in thousands) | |||||
| (unaudited) | |||||
| July 31, | April 30, | ||||
|
2019 |
2019 |
||||
| Assets: | |||||
| Current Assets | |||||
| Cash and cash equivalents |
$ 104,025 |
$ 92,890 |
|||
| Accounts receivable, net |
281,055 |
294,867 |
|||
| Inventories, net |
44,811 |
35,582 |
|||
| Prepaid expenses and other current assets |
61,292 |
67,441 |
|||
| Total Current Assets |
491,183 |
490,780 |
|||
| Product Development Assets, net |
60,093 |
62,470 |
|||
| Royalty Advances, net |
26,788 |
36,185 |
|||
| Technology, Property and Equipment, net |
292,535 |
289,021 |
|||
| Intangible Assets, net |
878,269 |
865,572 |
|||
| Goodwill |
1,121,783 |
1,095,666 |
|||
| Operating Lease Right-of-Use Assets(2) |
147,370 |
– |
|||
| Other Non-Current Assets |
102,052 |
97,308 |
|||
| Total Assets |
$ 3,120,073 |
$ 2,937,002 |
|||
| Liabilities and Shareholders’ Equity: | |||||
| Current Liabilities | |||||
| Accounts payable |
$ 60,213 |
$ 90,980 |
|||
| Accrued royalties |
88,162 |
78,062 |
|||
| Short-term portion of long-term debt |
6,250 |
– |
|||
| Contract liabilities |
408,630 |
507,365 |
|||
| Accrued employment costs |
64,215 |
97,230 |
|||
| Accrued income taxes |
11,418 |
21,025 |
|||
| Short-term portion of operating lease liabilities(2) |
18,041 |
– |
|||
| Other accrued liabilities |
75,896 |
75,900 |
|||
| Total Current Liabilities |
732,825 |
870,562 |
|||
| Long-Term Debt |
724,291 |
478,790 |
|||
| Accrued Pension Liability |
154,529 |
166,331 |
|||
| Deferred Income Tax Liabilities |
141,316 |
143,775 |
|||
| Operating Lease Liabilities(2) |
166,642 |
– |
|||
| Other Long-Term Liabilities |
68,464 |
96,197 |
|||
| Total Liabilities |
1,988,067 |
1,755,655 |
|||
| Shareholders’ Equity |
1,132,006 |
1,181,347 |
|||
| Total Liabilities and Shareholders’ Equity |
$ 3,120,073 |
$ 2,937,002 |
|||
| (1) The supplementary information included in this press release for July 31, 2019 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission. |
|||||
| (2) We adopted ASU 2016-02, “Leases (Topic 842)” on May 1, 2019 using the required modified retrospective approach, whereby we used the effective date as the date of initial application and therefore previously reported financial information was not updated. |
| JOHN WILEY & SONS, INC. | |||||
| SUPPLEMENTARY INFORMATION (1) | |||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW | |||||
| (in thousands) | |||||
| (unaudited) | |||||
| Three Months Ended | |||||
| July 31, | |||||
|
2019 |
2018(2) |
||||
| Operating Activities: | |||||
| Net income |
$ 3,624 |
$ 26,295 |
|||
| Amortization of intangibles |
14,970 |
12,683 |
|||
| Amortization of product development assets |
8,714 |
9,428 |
|||
| Depreciation and amortization of technology, property and equipment |
18,535 |
18,060 |
|||
| Other non-cash charges and credits |
26,477 |
11,298 |
|||
| Net change in operating assets and liabilities |
(166,488) |
(222,753) |
|||
| Net Cash Used In Operating Activities |
(94,168) |
(144,989) |
|||
| Investing Activities: | |||||
| Additions to technology, property and equipment |
(24,202) |
(18,304) |
|||
| Product development spending |
(6,211) |
(6,246) |
|||
| Businesses acquired in purchase transactions, net of cash acquired |
(73,209) |
– |
|||
| Acquisitions of publication rights and other |
(2,270) |
(1,970) |
|||
| Net Cash Used in Investing Activities |
(105,892) |
(26,520) |
|||
| Financing Activities: | |||||
| Net debt borrowings |
253,848 |
147,754 |
|||
| Cash dividends |
(19,252) |
(19,043) |
|||
| Purchase of treasury shares |
(10,000) |
(7,994) |
|||
| Other |
(11,263) |
(1,510) |
|||
| Net Cash Provided By Financing Activities |
213,333 |
119,207 |
|||
| Effects of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash |
(2,138) |
(4,363) |
|||
| Change in Cash, Cash Equivalents and Restricted Cash for Period |
11,135 |
(56,665) |
|||
| Cash, Cash Equivalents and Restricted Cash – Beginning |
93,548 |
170,257 |
|||
| Cash, Cash Equivalents and Restricted Cash – Ending |
$ 104,683 |
$ 113,592 |
|||
| CALCULATION OF NON-GAAP FREE CASH FLOW LESS PRODUCT DEVELOPMENT SPENDING | |||||
| Three Months Ended | |||||
| July 31, | |||||
|
2019 |
2018 |
||||
| Net Cash Used In Operating Activities |
$ (94,168) |
$ (144,989) |
|||
| Less: | Additions to technology, property, and equipment |
(24,202) |
(18,304) |
||
| Less: | Product development spending |
(6,211) |
(6,246) |
||
| Free Cash Flow less Product Development Spending |
$ (124,581) |
$ (169,539) |
|||
| See Explanation of Usage of Non-GAAP Measures included in this supplemental information. | |||||
Contacts
Brian Campbell, Investor Relations
201.748.6874
[email protected]
