McGraw Hill Reports Fiscal Third Quarter and Year-to-Date Fiscal 2023 Financial Results

COLUMBUS, Ohio – February 14, 2023 – McGraw Hill, a leading global education company, reported year-to-date (YTD) financial results ending December 2022 that demonstrate sustained momentum in digital billings growth, market share gains, and adjusted EBITDA margin expansion. The company reported total YTD billings growth of 19% to $1.8 billion and 23% growth in adjusted EBITDA to $756 million.

"Our year-to-date results reflect the strength of our execution and consistency of our delivery," said Simon Allen, CEO of McGraw Hill. "During the quarter, we continued to strategically invest in those parts of the business that we believe will strengthen our leadership position, sustain our strong margins and expand our digital transformation."

In the third quarter, the company completed the acquisition of Boards & Beyond, a provider of on-demand video libraries and comprehensive online resources that help medical students efficiently learn fundamentals of basic medical sciences and clinical medicine. The acquisition adds to McGraw Hill's offerings in the growing digital medical education market.

Billings in the company's K–12 group reached $1 billion for the YTD period, up 43% compared to the same period of the previous year. Growth was supported by a robust market opportunity from continued federal stimulus education funding with market share gains across both adoption and open territory markets due to increased sales of core curriculum, supplemental and intervention solutions.

In the Higher Education group, billings were down 5% YTD, driven by a modest enrollment decline and as billings continue to shift from fiscal Q3 to Q4. Digital billings were 83% of total higher education billings vs. 82% in the prior year. Inclusive Access sales reached $155 million YTD, an increase of 19% over prior year. Inclusive Access provides course materials to students by the first day of class at a cost that is as much as 70% lower than traditional print.

YTD billings for the company's Global Professional group were down 3% driven by ongoing print declines while digital Access Medicine subscriptions continued to grow. The company's International group experienced constant currency billings growth in the YTD period driven by digital sales of Achieve3000 and ALEKS.