- Delivers LTM Content & Platform Dollar Retention Rates of
approximately 99%
- Generates Positive Free Cash Flow
- Reaffirms Full-Year Fiscal 2025 Financial Outlook
- Announces Virtual Investor Day to be held on July 11th,
2024
Skillsoft Corp. (NYSE: SKIL) (“Skillsoft” or the “Company”), a
leading platform for transformative learning experiences, today
announced its financial results for the first quarter of fiscal
2025 ended April 30, 2024.
“Since rejoining Skillsoft in a full-time executive capacity in
mid-April, I have gained greater confidence in Skillsoft’s market
opportunity and our unique ability to deliver transformative talent
development outcomes and value to our customers and learners,” said
Ronald Hovsepian, Skillsoft’s Executive Chair. “We are moving
quickly to strengthen our go-to-market execution, enhance our
operational foundation, and extend our early lead in generative
AI-based solutions and interactive learning experiences. I am
encouraged by the energy of our people – including proven and
experienced leaders who have recently joined Skillsoft – and the
commitment of the entire team for the journey ahead as we seek to
build a profitably growing and more valuable organization.”
Fiscal 2025 First Quarter Business Highlights
- Delivered first quarter LTM Content & Platform Dollar
Retention Rate of approximately 99%, compared to approximately 101%
in the prior year period.
- Achieved Workday Certified Integration Status, connecting
Skillsoft’s Percipio platform with Workday Human Capital Management
(HCM) and Workday Skills Cloud to give joint customers a new
skills-based approach to talent development.
- Launched AI-powered Interactive Skill Benchmarks to provide a
dynamic, hands-on approach to skill assessments that accelerate
learner proficiency through interactive virtual environments,
outcome-oriented assessments, and personalized results and
feedback.
- Recognized as a customer-centric leader in enterprise learning
by industry analyst firms Constellation Research, Aragon Research,
and Fosway Group, based on the Company’s track record of pioneering
innovation, depth and breadth of learning offerings, and customer
satisfaction.
Fiscal 2025 First Quarter Select Metrics and Financials from
Continuing Operations (1)(2)
- Content & Platform segment GAAP Revenue of $98 million was
approximately flat with prior year. Total GAAP Revenue of $128
million declined 6%, primarily due to a 20% decline in
Instructor-Led Training segment GAAP Revenue to $30 million.
- GAAP net loss of $28 million improved from a GAAP net loss of
$44 million in the prior year. GAAP net loss per share of $3.42
improved from a GAAP net loss per share of $5.42 in the prior year.
Adjusted Net Loss of $27 million improved from Adjusted Net Loss of
$30 million in the prior year. Adjusted Net Loss per share of $3.37
improved from Adjusted Net Loss per share of $3.68 in the prior
year.
- Adjusted EBITDA from continuing operations of $19 million,
reflecting a margin of 15% of GAAP Revenue, compared to $22 million
and a margin of 16% of GAAP Revenue in the prior year.
- Free Cash Flow of positive $10 million, compared to positive
$17 million in the prior year.
- Ended the quarter with $150 million of cash, cash equivalents,
and restricted cash.
Full-Year Fiscal 2025 Financial Outlook (2)
The following table reflects Skillsoft’s reaffirmed financial
outlook for the fiscal year ending January 31, 2025, based on
current market conditions, expectations, and assumptions:
GAAP Revenue
$530 million – $550 million
Adjusted EBITDA
$105 million – $110 million
(1)
Growth calculated relative to the
comparable prior year period unless otherwise noted.
(2)
See “Non-GAAP Financial Measures and Key
Performance Metrics” below for the definitions of our key
operational and non-GAAP metrics and how they are calculated and
more information regarding the fact that the Company is unable to
reconcile forward-looking non-GAAP measures without unreasonable
efforts. We have provided at the back of this release
reconciliations of our historical non-GAAP financial measures to
the comparable GAAP measures.
Announces Upcoming Virtual Investor Day
Skillsoft also announced that it will host a Virtual Investor
Day on Thursday, July 11, 2024, at 10:00 a.m. Eastern Time.
Presentations by management will provide a strategic business
update and a discussion of the Company’s operations and long-term
financial outlook. The live webcast will be available on
Skillsoft’s Investor Relations website at investor.skillsoft.com.
An archive of the webcast will be available following the
presentation.
Webcast and Conference Call Information
Skillsoft will host a conference call and webcast today at 5:00
p.m. Eastern Time to discuss its financial results. To access the
call, dial (877) 413‑9278 from the United States and Canada or
(215) 268‑9914 from international locations. The live event can be
accessed from the Investor Relations section of Skillsoft’s website
at investor.skillsoft.com. A replay will be available for six
months.
About Skillsoft
Skillsoft delivers transformative learning experiences that
propel organizations and people to grow together. The Company
partners with enterprise organizations and serves a global
community of learners to prepare today’s employees for tomorrow’s
economy. With Skillsoft, customers gain access to blended,
multimodal learning experiences that do more than build skills,
they grow a more capable, adaptive, and engaged workforce. Through
a portfolio of high-quality content, an AI-enabled platform that is
personalized and connected to customer needs, and a broad ecosystem
of partners, Skillsoft drives continuous growth and performance for
employees and their organizations by overcoming critical skills
gaps, unlocking human potential, and transforming the workforce.
Learn more at www.skillsoft.com.
Non-GAAP Financial Measures And Key Performance
Metrics
We track the non-GAAP financial measures and key performance
metrics that we believe are key financial measures of our success.
Non-GAAP measures and key performance metrics are frequently used
by securities analysts, investors, and other interested parties in
their evaluation of companies comparable to us, many of which
present non-GAAP measures and key performance metrics when
reporting their results. These measures can be useful in evaluating
our performance against our peer companies because we believe the
measures provide users with valuable insight into key components of
U.S. GAAP financial disclosures. For example, a company with higher
U.S. GAAP net income may not be as appealing to investors if its
net income is more heavily comprised of gains on asset sales.
Likewise, excluding the effects of interest income and expense
moderates the impact of a company’s capital structure on its
performance. However, non-GAAP measures and key performance metrics
have limitations as analytical tools. Because not all companies use
identical calculations, our presentation of non-GAAP financial
measures and key performance metrics may not be comparable to other
similarly titled measures of other companies. They are not
presentations made in accordance with U.S. GAAP, are not measures
of financial condition or liquidity, and should not be considered
as an alternative to profit or loss for the period determined in
accordance with U.S. GAAP or operating cash flows determined in
accordance with U.S. GAAP. As a result, these performance measures
should not be considered in isolation from, or as a substitute
analysis for, results of operations as determined in accordance
with U.S. GAAP.
We have provided at the back of this release reconciliations of
our historical non-GAAP financial measures to the comparable GAAP
measures. We do not reconcile our forward-looking non-GAAP
financial measures to the corresponding U.S. GAAP measures, due to
variability and difficulty in making accurate forecasts and
projections and/or certain information not being ascertainable or
accessible; and because not all of the information necessary for a
quantitative reconciliation of these forward-looking non-GAAP
financial measures to the most directly comparable U.S. GAAP
financial measure is available to us without unreasonable efforts.
For the same reasons, we are unable to address the probable
significance of the unavailable information. We provide non-GAAP
financial measures that we believe will be achieved, however we
cannot accurately predict all of the components of the adjusted
calculations and the U.S. GAAP measures may be materially different
than the non-GAAP measures.
We disclose the following non-GAAP financial measures and key
performance metrics in this press release because we believe these
non-GAAP financial measures and key performance metrics provide
meaningful supplemental information.
- Dollar retention rate (“DRR”) - For
existing customers at the beginning of a given period, DRR
represents subscription renewals, upgrades, churn, and downgrades
in such period divided by the beginning total renewable base for
such customers for such period. Renewals reflect customers who
renew their subscription, inclusive of auto-renewals for multi-year
contracts, while churn reflects customers who choose to not renew
their subscription. Upgrades include orders from customers that
purchase additional licenses or content (e.g., a new Leadership and
Business module), while downgrades reflect customers electing to
decrease the number of licenses or reduce the size of their content
package. Upgrades and downgrades also reflect changes in pricing.
We use our DRR to measure the long-term value of customer contracts
as well as our ability to retain and expand the revenue generated
from our existing customers.
- Adjusted net income (loss) - Adjusted net income/(loss)
is defined as GAAP net income (loss) excluding non-cash items,
discrete and event-specific costs that do not represent normal,
recurring, cash operating expenses necessary for our business
operations, and certain accounting income and/or expenses that
management believes are necessary to enhance the comparability and
are useful in assessing our operating performance, include the
following (including the related tax effects):
- Stock-based compensation expense – Non-cash expense associated
with stock-based compensation.
- Restructuring charges – Severance costs and the abandonment of
right-of-use assets resulting from the acquisition integration
process and cost saving initiatives.
- Fair value adjustments – Mark-to-market adjustments of warrants
and hedge instruments.
- Foreign currency impact – Unrealized and realized foreign
exchange gains or losses due to fluctuations in currency exchange
rates.
- Acquisition and integration related costs – Costs incurred to
effectuate an acquisition, including contingent compensation
expenses, and integration related costs.
- Transformation costs – Costs incurred to transform our
operations through significant strategic non-ordinary course
transactions.
- System migration costs – Costs of temporary resources needed
for the migration of content and customers from our legacy system
to a global platform.
- Income from discontinued operations – Income from discontinued
operations that do not reflect our current operating
performance.
- (Gain) loss on sale of business - Gain or loss on non-routine
sale on business.
- Impairment charges - Non-cash goodwill, intangible or other
asset impairment charges.
- Adjusted EBITDA - Adjusted EBITDA is defined as adjusted
net loss excluding interest expense or income, benefit from or
provision for income taxes, depreciation and amortization
expense.
- Non-GAAP operating expenses – GAAP operating expenses,
less depreciation, stock-based compensation, system migration
costs, transformation costs, and other non-cash charges, as
applicable.
Reclassifications
Certain amounts reported in prior years have been reclassified
to conform to the presentation in the current year. These
reclassifications had no effect on total assets, total liabilities,
total stockholders' equity, or net income (loss) for the prior
year.
Cautionary Notes Regarding Forward Looking Statements
This document includes statements that are, or may be deemed to
be, “forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, which are intended to
be covered by the safe harbors created by those laws. All
statements, other than statements of historical facts, that address
activities, events or developments that we expect or anticipate may
occur in the future, including such things as our outlook
(including revenue, adjusted EBITDA, and free cash flow), our
product development and planning, our sales pipeline, future
capital expenditures, share repurchases, financial results, the
impact of regulatory changes, existing and evolving business
strategies and acquisitions and dispositions, demand for our
services, competitive strengths, the benefits of new initiatives,
growth of our business and operations, and our ability to
successfully implement our plans, strategies, objectives,
expectations and intentions are forward-looking statements. Also,
when we use words such as “may”, “will”, “would”, “anticipate”,
“believe”, “estimate”, “expect”, “intend”, “plan”, “project”,
“forecast”, “seek”, “outlook”, “target”, “goal”, “probably”, or
similar expressions, we are making forward-looking statements. Such
statements are based upon the current beliefs and expectations of
Skillsoft’s management and are subject to significant risks and
uncertainties. All forward-looking disclosure is speculative by its
nature, and we caution you against unduly relying on these
forward-looking statements.
Factors that could cause or contribute to such differences
include those described under “Part I - Item 1A. Risk Factors” in
our Form 10‑K for the fiscal year ended January 31, 2024. These
factors should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements included in our
other periodic filings with the Securities and Exchange Commission.
The forward-looking statements contained in this document represent
our estimates only as of the date of this filing and should not be
relied upon as representing our estimates as of any subsequent
date. While we may elect to update these forward-looking statements
in the future, we specifically disclaim any obligation to do so,
whether to reflect actual results, changes in assumptions, changes
in other factors affecting such forward-looking statements, or
otherwise.
Although we believe that the assumptions underlying our
forward-looking statements are reasonable, any of these
assumptions, and therefore also the forward-looking statements
based on these assumptions, could themselves prove to be
inaccurate. Given the significant uncertainties inherent in the
forward-looking statements included in this document, our inclusion
of this information is not a representation or guarantee by us that
our objectives and plans will be achieved. Annualized, pro forma,
projected and estimated numbers are used for illustrative purposes
only, are not forecasts and may not reflect actual results.
Additionally, statements as to market share, industry data and our
market position are based on the most current data available to us
and our estimates regarding market position or other industry data
included in this document or otherwise discussed by us involve
risks and uncertainties and are subject to change based on various
factors, including as set forth above.
SKILLSOFT CORP.
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(in thousands, except number of
shares)
April 30, 2024
January 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
142,020
$
136,308
Restricted cash
7,584
10,215
Accounts receivable, net of allowance for
credit losses of approximately $603 and $562 as of April 30, 2024
and January 31, 2024, respectively
110,643
185,638
Prepaid expenses and other current
assets
58,287
53,170
Total current assets
318,534
385,331
Property and equipment, net
5,695
6,639
Goodwill
317,071
317,071
Intangible assets, net
511,399
539,293
Right of use assets
6,775
8,044
Other assets
21,386
17,256
Total assets
$
1,180,860
$
1,273,634
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current maturities of long-term debt
$
6,404
$
6,404
Borrowings under accounts receivable
facility
42,411
44,980
Accounts payable
13,378
14,512
Accrued compensation
17,000
31,774
Accrued expenses and other current
liabilities
24,657
29,939
Lease liabilities
3,241
3,049
Deferred revenue
243,701
282,570
Total current liabilities
350,792
413,228
Long-term debt
576,422
577,487
Deferred tax liabilities
49,173
52,148
Long-term lease liabilities
7,362
9,251
Deferred revenue - non-current
1,574
2,402
Other long-term liabilities
13,402
13,531
Total long-term liabilities
647,933
654,819
Commitments and contingencies
Shareholders’ equity:
Shareholders’ common stock - Class A
common shares, $0.0001 par value: 18,750,000 shares authorized and
8,394,098 shares issued and 8,094,321 shares outstanding at April
30, 2024, and 8,380,436 shares issued and 8,080,659 shares
outstanding at January 31, 2024
1
1
Additional paid-in capital
1,558,076
1,551,005
Accumulated equity (deficit)
(1,349,114
)
(1,321,478
)
Treasury stock, at cost - 299,777 shares
as of April 30, 2024 and January 31, 2024
(10,891
)
(10,891
)
Accumulated other comprehensive income
(loss)
(15,937
)
(13,050
)
Total shareholders’ equity
182,135
205,587
Total liabilities and shareholders’
equity
$
1,180,860
$
1,273,634
SKILLSOFT CORP.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share
amounts)
Three Months Ended
Three Months Ended
April 30, 2024
April 30, 2023
Revenues:
Total revenues
$
127,793
$
135,554
Operating expenses:
Costs of revenues
34,471
37,824
Content and software development
15,506
17,035
Selling and marketing
42,292
45,927
General and administrative
25,309
25,296
Amortization of intangible assets
31,583
38,245
Acquisition and integration related
costs
1,497
1,391
Restructuring
967
5,218
Total operating expenses
151,625
170,936
Operating income (loss)
(23,832
)
(35,382
)
Other income (expense), net
2,217
(375
)
Fair value adjustment of warrants
—
2,852
Fair value adjustment of interest rate
swaps
7,746
270
Interest income
928
645
Interest expense
(16,278
)
(15,936
)
Income (loss) before provision for
(benefit from) income taxes
(29,219
)
(47,926
)
Provision for (benefit from) income
taxes
(1,583
)
(4,384
)
Income (loss) from continuing
operations
(27,636
)
(43,542
)
Gain (loss) on sale of business
—
(682
)
Net income (loss)
$
(27,636
)
$
(44,224
)
Net income (loss) per share:
Ordinary – Basic and diluted - continuing
operations
$
(3.42
)
$
(5.34
)
Ordinary – Basic and diluted -
discontinued operations
—
(0.08
)
Ordinary – Basic and diluted
$
(3.42
)
$
(5.42
)
Weighted average common shares
outstanding:
Ordinary – Basic and diluted
8,089
8,158
SKILLSOFT CORP.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
Three Months Ended
April 30, 2024
April 30, 2023
Cash flows from operating activities:
Net income (loss)
$
(27,636
)
$
(44,224
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Amortization of intangible assets
31,583
38,245
Share-based compensation
7,153
9,128
Depreciation
760
1,144
Non-cash interest expense
536
664
Non-cash property, equipment, software and
lease impairment charges
—
4,819
Provision for credit loss expense
(recovery)
41
70
(Gain) loss on sale of business
—
682
Provision for (benefit from) income taxes
– non-cash
(2,932
)
(4,934
)
Fair value adjustment of warrants
—
(2,852
)
Fair value adjustment of interest rate
swaps
(7,746
)
(270
)
Change in assets and liabilities:
Accounts receivable
74,826
73,624
Prepaid expenses and other current assets,
including long-term
(1,206
)
297
Right-of-use assets
1,270
43
Accounts payable
(1,107
)
(4,340
)
Accrued expenses and other liabilities,
including long-term
(19,830
)
(16,367
)
Lease liabilities
(1,684
)
(156
)
Deferred revenues
(39,091
)
(34,109
)
Net cash provided by (used in) operating
activities
14,937
21,464
Cash flows from investing activities:
Purchase of property and equipment
(153
)
(1,636
)
Internally developed software -
capitalized costs
(4,364
)
(2,683
)
Sale of SumTotal, net of cash
transferred
—
(5,137
)
Net cash used in investing activities
(4,517
)
(9,456
)
Cash flows from financing activities:
Shares repurchased for tax withholding
upon vesting of restricted stock-based awards
(82
)
(296
)
Payments to acquire treasury stock
—
(7,155
)
Proceeds from accounts receivable
facility, net of borrowings
(2,569
)
5,544
Principal payments on Term loans
(1,601
)
—
Net cash provided by (used in) financing
activities
(4,252
)
(1,907
)
Effect of exchange rate changes on cash
and cash equivalents
(3,087
)
(557
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
3,081
9,544
Cash, cash equivalents and restricted
cash, beginning of period
146,523
177,556
Cash, cash equivalents and restricted
cash, end of period
$
149,604
$
187,100
Supplemental disclosure of cash flow
information:
Cash and cash equivalents
$
142,020
$
178,049
Restricted cash
7,584
9,051
Cash, cash equivalents and restricted
cash, end of period
$
149,604
$
187,100
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended April
30,
2024
2023
Revenues:
Content & Platform segment
revenues
$
98,075
$
98,573
Instructor-Led Training segment
revenues
29,718
36,981
Total revenues, as reported
$
127,793
$
135,554
Net income (loss), as reported
$
(27,636
)
$
(44,224
)
Gain (loss) on sale of business
—
682
Acquisition and integration related
costs
1,497
1,391
Restructuring
967
5,218
Foreign currency impact
(2,220
)
469
Fair value adjustment of warrants
—
(2,852
)
Fair value adjustment of interest rate
swaps
(7,746
)
(270
)
Stock-based compensation expense
7,148
9,124
Transformation costs
660
1,127
System migration costs
118
667
Tax impact of non-GAAP adjustments
(41
)
(1,385
)
Adjusted net income (loss) from
continuing operations
(27,253
)
(30,053
)
Interest expense, net
15,350
15,291
Expense (benefit from) income taxes,
excluding tax impacts above
(1,542
)
(2,999
)
Depreciation
760
1,144
Amortization of intangible assets
31,583
38,245
Adjusted EBITDA from continuing
operations
$
18,898
$
21,628
Weighted average common shares
outstanding:
Ordinary – Basic and diluted
8,089
8,158
Ordinary basic and diluted per share
information:
Net income (loss), as reported
$
(3.42
)
$
(5.42
)
Adjusted net income (loss) from continuing
operations
$
(3.37
)
$
(3.68
)
Adjusted net income (loss) margin
%
(21.3
)%
(22.2
)%
Interest expense, net
12.0
%
11.3
%
Expense (benefit from) income taxes,
excluding tax impacts above
(1.2
)%
(2.1
)%
Depreciation
0.6
%
0.8
%
Amortization of intangible assets
24.7
%
28.2
%
Adjusted EBITDA margin %
14.8
%
16.0
%
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES - continued
(in thousands, unaudited)
Three Months Ended April
30,
2024
2023
Operating expenses:
GAAP costs of revenues
$
34,471
$
37,824
Depreciation
(117
)
(151
)
Stock-based compensation
(166
)
(97
)
Non-GAAP costs of revenues
34,188
37,576
GAAP content and software development
15,506
17,035
Depreciation
(74
)
(50
)
Stock-based compensation
(1,290
)
(2,012
)
System migration
(118
)
(667
)
Non-GAAP content and software
development
14,025
14,306
GAAP selling and marketing
42,292
45,927
Depreciation
(208
)
(267
)
Stock-based compensation
(1,256
)
(1,681
)
Transformation
(177
)
(136
)
Non-GAAP selling and marketing
40,651
43,843
GAAP general and administrative
25,309
25,296
Depreciation
(362
)
(677
)
Stock-based compensation
(4,436
)
(5,333
)
Transformation
(480
)
(1,085
)
Non-GAAP general and administrative
20,031
18,201
Total GAAP operating expenses
117,578
126,082
Depreciation
(760
)
(1,145
)
Stock-based compensation
(7,148
)
(9,123
)
System migration
(118
)
(667
)
Transformation (1)
(657
)
(1,221
)
Total Non-GAAP operating expenses
$
108,894
$
113,926
(1)
This line item does not agree to the
amounts reflected on preceding table due to certain transformation
expenses not being reflected in GAAP operating expenses.
SKILLSOFT CORP.
FREE CASH FLOW
RECONCILIATION
(in thousands)
Three Months Ended April
30,
2024
2023
Free cash flow reconciliation
Net cash provided by (used in) operating
activities
$
14,937
$
21,464
Purchase of property and equipment
(153
)
(1,636
)
Internally developed software -
capitalized costs
(4,364
)
(2,683
)
Total free cash flow
$
10,420
$
17,145
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240610575593/en/
Investors and Media Chad W. Lyne SVP, Strategic Finance
& Investor Relations Officer chad.lyne@skillsoft.com
Grafico Azioni Skillsoft (NYSE:SKIL)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Skillsoft (NYSE:SKIL)
Storico
Da Gen 2024 a Gen 2025
