As one of the biggest educational publishers in the US and internationally, Cengage Group operates in 20 countries, with the biggest presence in English-speaking countries. We decided to take a closer look at the company’s outputs and how they have changed over the years.
Cengage Group’s revenue for the fiscal year 2022 was $1.35 billion, including educational, research, and international segments.
While the company’s revenue increased by 10.39%, the largest over the last 7 years, it was only the second year with positive growth for the company since 2016.
Overall, since 2016, Cengage’s revenue has dropped by 16.87% from $1,63 billion.
The company’s worst years were 2020 and 2021, as a consequence of the Covid-19 pandemic and its impact on educational publishing in general.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Cengage Group were $631.90 million in 2022, a 20% increase over 2021.
Year
Revenue ($ million)
Change
EBITDA ($ million)
Change
2022
$1,355.40
10.39%
$631.90
19.88%
2021
$1,227.80
-7.10%
$527.10
-5.28%
2020
$1,321.70
-8.56%
$556.50
100.69%
2019
$1,445.50
-1.41%
$277.30
-7.97%
2018
$1,466.20
0.42%
$301.30
-14.67%
2017
$1,460.00
-10.46%
$353.10
-19.40%
2016
$1,630.50
$438.10
Cengage educational segment
The educational segment is the largest contributor to the Cengage group’s revenue and earnings. The company provides textbooks and learning solutions for both secondary and higher education.
The educational segment generated over $996.6 million in revenue for Cengage Group in 2022.
Educational revenue in 2022 increased by 7.39% over 2021.
Education accounts for over 73.5% of the Cengage revenue as of 2022, although this is the lowest figure over the last 3 years, dropping from 75.6% in 2021.
The Cengage educational segment recorded the highest revenue in 2022 since 2016, the last time when it stood at over $1 billion.
US education contributes $835.50 million of revenue within the educational segment, accounting for 83.84% of the company’s educational revenue and over 61.64% of the overall Cengage revenue.
International educational sales stand at $161.10 million, accounting for 16.16% of educational revenue and 11.89% of the company’s overall revenue.
Year
US educational segment
International higher education
US in the educational segment
International in the educational segment
Share of US in total revenue
Share of international in total revenue
2022
$835.50
$161.10
83.84%
16.16%
61.64%
11.89%
2021
$783.00
$145.00
84.38%
15.63%
63.77%
11.81%
2020
$803.20
$184.50
81.32%
18.68%
60.77%
13.96%
Cengage’s higher-ed sales have generated over $849.60 in revenue in the educational segment since 2022.
Higher education accounts for 62.68% of the company’s revenue and over 85.2% of the company’s educational revenue.
Secondary education contributes $147.00 million in sales annually, accounting for 10.85% of the company’s overall revenue and 14.8% of the educational segment revenue.
Additionally, research services and solutions generate over $204.70 million in revenue as of 2022.
Year
US higher education sales ($ million)
International higher education ($ million)
US secondary education ($ million)
2022
$688.50
$161.10
$147.00
2021
$651.20
$145.00
$131.80
2020
$645.20
$184.50
$158.00
Cengage digital educational segment
As of 2022, over 80% of Cengage’s higher educational sales revenue in the US is coming from digital solutions.
Additionally, the international higher-ed segment generates over 32% of its profits from digital sales.
Secondary education’s digital sales account for over 61% of the secondary educational revenue for the company.
The company’s eTextbook subscription service, launched in 2018, has over 5.5 million users and has reportedly saved over $490 million of students’ money.
In 2021, over 73% of the company’s total net sales came from digital services. In 2020, this share was 64%.
In 2015, over 50% of the company’s sales were digital, which was the highest jump for the digital segment, as digital sales were a tiny portion of the revenue just 2 years prior.
Cengage company profile
As of 2022, Cengage is operating in over 20 countries.
The company employs offer 4,500 people residing in over 40 countries around the world.
Most of the company’s profit comes from English-speaking countries: the USA, Canada, the UK, and Australia.
In the United States, Cengage participates in the market consisting of over 4,000 educational institutions and 17 million enrolled students.
Their potential “clients” spend almost $7 billion each year on textbooks and other required course materials.
