Wolters Kluwer cites GenAI as growth driver in 2023 full year results

Wolters Kluwer today released its full-year 2023 results, reporting revenues of €5,584 million, up 6% organically. The Netherlands-based professional information, software solutions and services firm cited Generative Artificial Intelligence (GenAI) as a growth driver.

“We achieved 6% organic growth and a year-on-year increase in adjusted operating margin, despite macroeconomic and geopolitical headwinds. Strong momentum in recurring revenues compensated for challenges in some of our non-recurring revenue streams,” commented Nancy McKinstry, Wolters Kluwer’s CEO and Chair of the Executive Board. “We met our financial and sustainability goals, while increasing investment in product innovation, including in generative AI, to support future growth. We look forward to delivering another year of good organic growth and margin improvement in 2024.”

Recurring revenues (82% of total revenues) were up 7% organically, while digital & services revenues (94% of total revenues) grew 6% organically. The company’s Expert solutions (58% of total revenues) grew 8% organically, and cloud software (16% of total revenues) grew 15% organically.

The company also said it had completed a 2023 share buyback of €1 billion, announcing a 2024 share buyback of up to €1 billion – of which €100 million is completed.

The company added that it expects “good organic growth and further improvement in adjusted operating profit margin, with the increase in diluted adjusted EPS to be dampened by higher interest and tax.”

Approximately 50% of Wolters Kluwer’s digital revenues now come from products that leverage AI. Recent developments in the area include the December launch, by Wolters Kluwer Legal & Regulatory (LR), of generative AI (GenAI) to simplify legal research, “eliminating the need to read through multiple court cases, saving valuable time.”  This innovation in beta will initially serve legal professionals using the Wolters Kluwer Online research platform in Germany before being rolled out to other products, the company says.