Ensuring the future
In FY19, OCLC’s revenues from library services increased by $4.4 million over the previous year. Growth in library subscriptions to WorldShare Management Services in Canada and the Netherlands helped revenues reach $222.0 million. Also contributing to the rise in revenues was our project to build a shared print repository for serials with funding from the Mellon Foundation. In addition, our Contract Cataloging for Publishers service exceeded revenue goals through new contracts with Taylor & Francis, Midwest Tape, EBSCO, and Elsevier.
In May, OCLC signed an agreement to transfer the QuestionPoint 24/7 Reference Cooperative and all active QuestionPoint subscriptions to Springshare, a recognized leader in the development of reference software for libraries worldwide. This sale will benefit members by aligning QuestionPoint users with an organization where reference service is the primary focus.
Accelerated product development for metadata, delivery services, and library management systems will continue to support the cooperative over the next several years. One example of this is the advancement of OCLC Wise, our community engagement system for public libraries. This past year we signed four more early adopters in the US, and we expanded Wise in Europe, taking 33 public libraries in Belgium live—the first libraries outside of the Netherlands to go live.
Net contribution for FY19 was $8.9 million. Revenue from library services and income from our investment portfolio provided a stable cash flow to fund operations, improve services, and make strategic capital investments.
Summary of consolidated activities
Amount in $ millions
||Library services revenue
|Operating results before portfolio activity
||Investment portfolio activity
|Dividends and investment income
The OCLC investment portfolio
Our investment portfolio was valued at $227.9 million at the end of FY19, decreasing from $236.2 million in the prior year. The portfolio decrease was primarily a result of a $10 million principal withdrawal partially offset by capital gains in the overall market. The portfolio also generates dividend and interest income that is withdrawn annually to fund cash needs.
At the end of FY19, OCLC’s outstanding debt was $67.1 million compared to $86.7 million in FY18.
Investment portfolio and debt
Amount in $ millions end of fiscal year
Research and development
We regularly engage with our membership through Regional and Global Council meetings as well as specific product groups, advisory committees, and research projects in order to identify trends that are shaping the library profession. Based on these conversations, we continue to invest in a variety of specific initiatives that our members have told us are critical to their success.
FY19 research and development expenditures
Total $35.6 million
Investment categories include:
Metadata services (12%)
OCLC Cataloging and Metadata Subscription, WorldShare Metadata Services, Contract Cataloging, Dewey® Services, CBS Services
Delivery services (15%)
Tipasa, Sustainable Collection Services, Relais D2D™, WorldShare Interlibrary Loan, VDX®, ILLiad, WorldCat Navigator® WorldCat Discovery, WorldCat.org™, QuestionPoint®, PiCarta®
Management services (17%)
WorldShare Management Services, WorldShare License Manager, WorldShare Collection Evaluation, WorldShare Report Designer, CONTENTdm®, EZproxy®, SISIS‐SunRise™, LBS, Amlib®, BIBLIOTHECAplus™, OCLC Wise, OLIB®
Data services (25%)
WorldCat, WorldCat knowledge base, WorldCat Discovery central index
WorldShare Platform (7%)
The infrastructure that supports cloud services
OCLC Research (21%)
Systems/corporate initiatives (3%)
Data centers, technical infrastructure