COLUMBUS, Ohio – August 18, 2022 – McGraw Hill today reported significant growth in its Q1 fiscal 2023 results driven by strong performance in its K-12 business unit. Total Q1 billings were up 42% compared to the same quarter last year, rising to $543 million. Digital billings grew by $63 million in the quarter, demonstrating the company's ongoing digital transformation with total annualized digital billings now exceeding $1.2 billion. Adjusted EBITDA increased 59% year-over-year, rising to $203 million for the quarter.
Leading performance in key K-12 English language arts and math adoptions as well as continued benefits from multiyear COVID-related fiscal stimulus programs contributed to the strong K-12 performance.
In a seasonally small quarter, Higher Education billings declined 4%, aligned with enrollment declines nationally. Inclusive Access billings continued to grow, up 8 percent for the quarter when compared to last year as institutions look to reduce costs for students. 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.
Billings for the company's Global Professional unit grew 10% in Q1 compared to prior year with strong sales of the 21st edition of Harrison's Principles of Internal Medicine and the business' digital Access subscriptions. McGraw Hill's International unit performed well with billings growth of 7% compared to prior year after adjusting for the impact of foreign exchange rates.
"It's exciting to see our business growing so robustly and our digital transformation strategy paying off,” said Simon Allen, McGraw Hill CEO. “We are well positioned for the future and are continuing to invest in innovative tools that will support educators and improve students' learning outcomes for years to come."