New milestone marks first time that more digital units are sold than print textbooks
For its fiscal year 2016, Cengage Learning reported that digital unit sales outpaced print textbook sales for the first time. For the 12 months ending March 31, 2016, Cengage Learning activated 3.5 million digital student experiences, up 12 percent from the prior year.
“Fiscal 2016 marks an important milestone for Cengage Learning as we transition from a traditional print publisher to a digital education company,” said Michael Hansen, Chief Executive Officer at Cengage Learning. “Our financial turnaround is well underway, fueled by significant digital growth over the past year. At our core, we are committed to improving the student experience, which has focused and inspired every aspect of our organization.”
MindTap, Cengage Learning’s flagship digital teaching and learning solution, recognized growth in activations of 136 percent for the year. MindTap is the most flexible and innovative platform in the market and learners using the digital courseware are exhibiting increased engagement and better results. Students who spend at least three hours in MindTap each week are twice as likely to get 90% or above on their assignments. MindTap now covers more than 550 courses, or approximately 60 percent of Cengage Learning’s product portfolio.
Cengage Learning continues to invest in student focused digital products and platforms, as well as creating breakthrough products. Developed based on feedback from more than 1,000 students, the recently announced MindTap Math Foundations is unlike any other developmental math product on the market. Recognizing that an increasing number of students juggle family and job responsibilities, this new product gives students the ability to work in brief “bursts” of problem-solving and critical thinking exercises, breaking lessons into 15-minute blocks. The program can be accessed on mobile devices, which is beneficial for micro-learning.
Cengage Learning’s student focus is clear in areas outside of product development, as well. For example:
The Company is experimenting with new business models and strategies to offer more affordable options for students, while lowering the cost to deliver these products.
The recent acquisition of Learning Objects aims to build the right technology and scale to support customers serving students seeking online alternatives to traditional college courses.
Cengage Learning’s white glove customer service helps faculty to overcome concerns about digital and get the most out of digital courseware in order to best support student success.
Feedback on Cengage Learning’s technology support team has been extremely positive, with a 97 percent satisfaction rating in customer surveys.
Cengage Learning reported its Fiscal 2016 Fourth Quarter and Full-Year (Ended March 31, 2016) results on May 12, 2016. To view the presentation or listen to a reply of the call, visit: www.cengage.com/investor.