BOSTON, June 14, 2018 /PRNewswire/ -- Cengage, an education and technology company, achieved a strong finish to its 2018 fiscal year with a 10-percent revenue increase in the fourth quarter. The company returned to growth ahead of the launch of Cengage Unlimited, the first-of-its-kind subscription for higher education course materials.
Cengage continued to gain traction in the US higher education market with core digital unit growth of 22 percent, a clear indicator of the value customers experience from the company's digital products. Core digital products include the flagship digital platform MindTap and the other assessment and homework tools, including SAM, WebAssign and Aplia.
"This was a pivotal year for Cengage. Our performance, particularly in the fourth quarter, underscores that our industry-leading initiatives offering affordable access to high-quality learning materials are working," said Michael Hansen, CEO, Cengage. "This digital momentum means we are well-positioned as we move into the back-to-school season and the launch of Cengage Unlimited."
Commercially available in August, Cengage Unlimited offers students complete access to more than 22,000 digital products across 70 disciplines and 675 courses – for $119.99 per semester or $179.99 a year. Students using digital platforms have the option of free print rentals, with just $7.99 in shipping.
"The need for more affordable access to course materials, underpinned by deep learning science, is recognized across higher education," said Todd Markson, Chief Strategy Officer, Cengage. "Cengage Unlimited is a compelling solution to address this problem. We are pleased that many of our largest channel partners are fully on board to distribute and market the subscription. With a strong fiscal 2018 and pending launch of Cengage Unlimited, we are poised for a bright future."
Fiscal 2018 Highlights
- The School, International and Gale business units delivered profitable revenue growth.
- The company's Learning business (Higher Education and School) was defined by strong digital growth.
- Digital sales constituted 63 percent of the company's Learning business gross sales.
- Student activations of the company's digital solutions grew by 17 percent.
- Net sales of the company's digital learning platforms, including MindTap, grew 12 percent with growth of digital-only product up 27 percent, as students opted for lower cost digital-only products at a record rate.
- MindTap gross sales increased approximately 29 percent from fiscal 2017, and activations have increased 39 percent.
- Recurring product sales (defined as digital learning platforms, ebooks and print rental) grew by 5 percent; 81 percent of higher ed revenue is now derived from these sales, which repeat each year and do not feed the secondary learning materials market.
- Cengage Unlimited has been positively received among administrators, faculty, students and channel partners.
- The company's "takeaway" business from competitors for the upcoming Fall season increased by double digit percentages, primarily due to the subscription model.
Cengage reported its Fiscal 2018 Fourth Quarter and Full-Year (Ended March 31, 2018) results on May 17, 2018. To view the presentation or listen to a replay of the call, visit: www.cengage.com/investor.
For more information about Cengage Unlimited, please visit Cengage.com/unlimited.
Cengage is the education and technology company built for learners. As the largest US-based provider of teaching and learning materials for higher education, we offer valuable options at affordable price points. Our industry-leading initiatives include Cengage Unlimited, the first-of-its-kind all-access digital subscription service. We embrace innovation to create learning experiences that build confidence and momentum toward the future students want. Headquartered in Boston, Cengage also serves K-12, library and workforce training markets around the world. Visit us at www.cengage.com or find us on Facebook or Twitter.
Lindsay Stanley, Cengage
Susan Aspey, Cengage