"For us, it's just the right place, right time, and right content," said CEO Linda Zecher.
The company is the leader in K-12 education content, which has a lot of pent up demand, she explained. The company is also a leader in digital education content and is making a push into digital media.
Specifically, the company is focused on two new markets: pre-kindergarten and consumers, which Zecher defined as "teachers, parents, students and lifelong learners."
Houghton Mifflin Harcourt is relying on some of the brands it owns, such Carmen Sandiego and Curious George, especially in its emerging pre-k market. Educational games have a lot of leverage, she reasoned.
Moving into the pre-k and consumers market will also generate more consistent revenue streams, rather than having to rely on school spending and education budgets.
While educational spending has ticked higher more recently, indicated by the 25% increase to the company's billing, revenues are expected to be flat on the year. Zecher attributes to this to Houghton Mifflin's increased digital presence.
Students are responding more favorably than anticipated to the digital products, which typically results in deferred revenue, she concluded.