May 26, 2022

Cengage Group Announces Preliminary 2022 Fiscal Fourth Quarter and Year-End Results; Expects to Meet Financial Outlook Driven by Strength of Portfolio of Businesses that Empower Student Choice

  • Company expects Adjusted Cash Revenue growth of 7% to $1.37 billion
  • Adjusted Cash EBITDA Less Prepub (ELPP) anticipated to increase 9% to $326 million

BOSTON – May 26, 2022 - Cengage Group, a global education technology company, today announced preliminary unaudited financial results for the fourth quarter and fiscal year ended March 31, 2022. For additional preliminary results, please review the company’s investor presentation posted on The company expects to issue final audited financial statements for fiscal year 2022 and will host a conference call to discuss the financial results on June 16, 2022.

“Our strong fourth quarter performance capped off a very successful year for Cengage Group,” said Michael E. Hansen, CEO, Cengage Group. “We expect to achieve financial results for the fiscal year that align with previous guidance while continuing to make great progress across our portfolio in providing students with a range of choices as they pursue education to achieve their goals – most notably, landing a job, upskilling and increasing their earnings potential.”

Hansen continued to say, "Our US Higher Education business improved in the second half of the fiscal year and continues to outperform the market and gain share. In addition, we have strengthened our position in the growing Workforce Skills market through strong organic growth and our entry into the cybersecurity vertical through our acquisition of Infosec.”

Mr. Hansen added, “Looking ahead, we believe we are in an excellent position to build on our strong performance in fiscal 2022 and continue to scale our quality digital content, learning experiences and assessments across our global portfolio.” 

Preliminary Financial Highlights:  

Fourth Quarter 2022 –

Adjusted cash revenue for the quarter is expected to increase 8% to $347 million with Adjusted Cash EBITDA Less Prepub (ELPP) growing 8% over the prior year period to $64 million.

Full Year 2022 –

Adjusted cash revenue is expected to reach $1.37 billion, an improvement of 7% over $1.28 billion in fiscal 2021. US HED is expected to decline 1% to $671 million, primarily due to industry-wide enrollment declines. All other business segments are anticipated to report strong growth due to resumption of pre-COVID demand combined with new products and partnerships. Workforce Skills maintained its strong sales momentum throughout the year and revenue is expected to reach $60 million, reflecting 18% organic growth. Other business segments also achieved robust growth with Research increasing 11% to $206 million, International HED growing 9% to $165 million, Secondary improving 10% to $150 million and English Language Teaching (ELT) accelerating 39% to $98 million.

Adjusted Cash EBITDA Less Prepub (ELPP) is expected to grow 9% to $326 million compared to $300 million in the prior fiscal year. Adjusted Cash ELPP margin is expected to expand to 23.8%, a 44-basis point increase, further building on the margin improvements in FY20 and FY21.

At March 31, 2022, cash on hand was $348 million, following the purchase of Infosec in the fourth quarter of fiscal 2022, which was funded from excess cash. Total liquidity remains strong at $456 million and the net leverage ratio was 5.8x.

About Cengage Group

Cengage Group, a global education technology company serving millions of learners, provides affordable, quality digital products and services that equip students with the skills and competencies needed to be job ready. For more than 100 years, we have enabled the power and joy of learning with trusted, engaging content, and now, integrated digital platforms. We serve the higher education, workforce skills, secondary education, English language teaching and research markets worldwide. Through our scalable technology, including MindTap and Cengage Unlimited, we support all learners who seek to improve their lives and achieve their dreams through education. Visit us at or find us on LinkedIn or Twitter.

Cautionary Note Regarding Preliminary Results and Forward-Looking Statements

Our estimated unaudited financial results as of and for the three months and fiscal year ended March 31, 2022 presented in this press release are preliminary and are subject to the close of the quarter and fiscal year, completion of our quarter-end and year-end closing procedures and further financial review. The preliminary financial and business information presented in this press release has been prepared by and is the responsibility of our management and is based upon information available to us as of the date hereof. These estimates are not a comprehensive statement of our financial results for these periods and should not be viewed as a substitute for interim or audited financial statements prepared in accordance with generally accepted accounting principles. Our actual results may differ from these estimates as a result of the completion of our quarter-end and year-end closing procedures, review adjustments and other developments that may arise between now and the time our financial results for the periods are finalized.  As a result, investors should exercise caution in relying on this information and should not draw any inferences from this information regarding financial or operating data not provided.

This press release and related discussion contain “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: “believe,” “expect,” “may,” “will,” “should,” “could,” “seek,” “intend,” “plan,” “estimate,” “project,” “foresee,” “likely,” or “anticipate” or similar expressions that concern our strategies, objectives, plans or goals. All statements that are not strictly historic in nature are forward looking. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Many factors could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements. You should consider such factors, many of which are outlined in the “Risk Factors” section of our FY21 Annual Report for the fiscal year ended March 31, 2021 and in our quarterly reports for the quarters ended June 30, 2021, September 30, 2021 and December 31, 2021 and the “Special Note Regarding Forward-Looking Statements” section of the same report. Such reports can be accessed at We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

This release contains Non-GAAP financial measures. See the appendix in the investor presentation for a definition of these Non-GAAP financial measures and rationale for their use.