Q4 2020 Headlines:
HMH achieved 2020 billings at the top end of its revised guidance range and positive free cash flow, outperforming its revised guidance range for 2020. Additionally:
*Continued momentum with SaaS billings growth of 142% and digital platform user growth of 306% for full year 2020
*Annualized Recurring Revenue (ARR) 1 of $58 million in 2020; HMH will report its Net Retention Rate (NRR) beginning in the first quarter of 2021
*Connected Sales1 made up 50% of Education segment billings in 2020
Full year 2020 Financial Results:
Net Sales: HMH reported net sales of $1,031 million for the full year of 2020, down 26% compared to $1,391 million in 2019. The net sales decrease was driven by a $371 million decrease in our Education segment, offset by a $12 million increase in our HMH Books & Media segment.
Billings1: Billings for 2020 decreased $502 million, or 32%, from 2019. The billings decrease was driven by a $515 million decrease in our Education segment offset by a $13 million increase in our HMH Books & Media segment.
Cost of Sales: Overall cost of sales decreased by $200 million to $644 million in 2020 from $844 million in 2019, primarily due to lower billings and to a lesser extent, lower amortization expense.
Net Loss: Net loss of $480 million for 2020 was a $266 million unfavorable change from the net loss of $214 million in 2019, due primarily to the same factors impacting operating loss along with an increase in interest expense of $17 million resulting from the debt refinancing during the fourth quarter of 2019 and a favorable change in income taxes of $17 million due primarily to the non-cash impairment on goodwill.
details at: https://www.hmhco.com/about-us/press-releases/houghton-mifflin-harcourt-announces-fourth-quarter-and-full-year-2020-results-achieved-2020-billings-at-the-top-end-of-its-revised-guidance-range-and-positive-free-cash-flow