George Webb

George Webb inquired about the specific timeline for the launch and monetization strategy of the new STM AI solution, particularly whether it will be included with existing ScienceDirect AI subscriptions or sold as a new product.

Answer

CEO Erik Engstrom confirmed that the announced timeline is current and that the solution should be considered a next-generation upgrade to ScienceDirect AI. He stated it will be sold and priced separately, with agentic capabilities, similar to the evolution of Lexis+AI and Protégé in Legal.

George W Webb from Morgan Stanley followed up on the new STM solution, seeking clarification on its launch timeline, monetization strategy, and whether it would be included with existing ScienceDirect AI subscriptions or sold as a new offering.

Answer

CEO Erik Engstrom confirmed the announced timeline and stated that the new STM solution is a next-generation upgrade to ScienceDirect AI, designed as an integrated research solution. He clarified it would be sold and priced separately, with agentic capabilities, following a similar evolutionary path to Lexis+ AI and Protégé in Legal.

George Webb of Morgan Stanley inquired about the monetization strategy for co-created products with Harvey, the relative decline of print revenue in STM versus Legal, demand patterns from the US government, and full-year margin expectations for the Exhibitions segment.

Answer

CEO Erik Engstrom described the Harvey collaboration as an exploratory pilot for specific use cases, with the commercial model still being developed. CFO Nick Luff noted that while the print decline affected both STM and Legal, the focus remains on retaining profit, not the revenue line which can have step-downs. Engstrom added that demand from the US government has remained consistent. Luff guided for a 'decent improvement' in full-year Exhibitions margin, though lower than H1 due to normal seasonality.

George Webb of Morgan Stanley inquired about the monetization strategy for co-created products with Harvey, the relative magnitude of the print revenue decline between the STM and Legal segments, and any notable shifts in demand from the US government. He also asked for more color on the full-year Exhibitions margin outlook.

Answer

CEO Erik Engstrom described the Harvey collaboration as an exploratory pilot on specific use cases, with the monetization model yet to be finalized. CFO Nick Luff noted the print decline affected both STM and Legal, with a slightly larger effect in STM for the period. Engstrom confirmed that demand from US government clients has remained consistent with prior years. Luff added that while H1 Exhibitions margin was strong, the full-year margin will be seasonally lower but still show a decent improvement over the prior year.

George Webb of Morgan Stanley inquired about the monetization strategy for co-created products with Harvey, whether the print revenue decline was similar across STM and Legal, and if there were any notable shifts in demand from the US government. He also asked for full-year margin guidance for the Exhibitions segment.

Answer

CEO Erik Engstrom described the Harvey collaboration as an exploratory pilot for specific use cases, with the commercial model still being developed. CFO Nick Luff noted the print reduction affected both STM and Legal, with a slightly larger effect in STM for the period. Engstrom confirmed that demand from the US government has remained consistent. Luff guided that the full-year Exhibitions margin would see a 'decent improvement', though less than H1's gain due to seasonality.

George Webb of Morgan Stanley inquired about the monetization strategy for co-created products with Harvey, the relative print decline across STM and Legal, any demand shifts from the US government, and guidance on the full-year Exhibitions margin.

Answer

CEO Erik Engstrom described the Harvey collaboration as an exploratory pilot for specific use cases, with no monetization model declared yet. He also noted that US government demand has been consistent with prior years. CFO Nick Luff added that the print decline affected both STM and Legal, and guided that full-year Exhibitions margins would see a decent improvement but would be seasonally lower than H1.