Unlock Growth with Skillsoft's Financial Triumph

Financial Metrics and Performance

The fiscal 2025 third quarter saw notable select metrics and financials from continuing operations. Ron Hovsepian, Skillsoft's Executive Chair and Chief Executive Officer, emphasized that these results represent the first step in their transformation journey. Strong revenue execution, improved profitability, and positive free cash flow were highlighted. Rich Walker, the Chief Financial Officer, expressed confidence in raising and tightening the FY25 revenue guidance range while reaffirming the adjusted EBITDA outlook.

Full-year fiscal 2025 financial outlook reflects updated figures based on current market conditions. GAAP Revenue is expected to be between $520 million and $530 million, with Adjusted EBITDA ranging from $105 million to $110 million. These figures demonstrate the company's ability to navigate the market and drive financial growth.

Segment Performance

Skillsoft has organized its business into two segments: Talent Development Solutions (formerly Content & Platform) and Global Knowledge (formerly Instructor-Led Training). Each segment plays a crucial role in the company's overall operations and contributes to its financial success.

The Talent Development Solutions segment showed steady growth, with subscription renewals, upgrades, and customer retention contributing to its performance. The Global Knowledge segment also demonstrated resilience, with efforts to expand and enhance its offerings.

Non-GAAP Financial Measures

Skillsoft tracks several non-GAAP financial measures and key performance metrics to provide a more comprehensive view of its business. These include Dollar retention rate ("DRR"), Adjusted net income (loss), Adjusted EBITDA, and various other metrics.

DRR measures the long-term value of customer contracts and the company's ability to retain and expand revenue from existing customers. Adjusted net income (loss) excludes non-cash items and certain accounting adjustments to enhance comparability and assess operating performance.

Financial Outlook and Market Impact

The updated financial outlook gives investors and stakeholders confidence in Skillsoft's future. The company's ability to raise and tighten revenue guidance, coupled with positive free cash flow, indicates a healthy financial position. This, in turn, can attract more investors and drive market growth.

Skillsoft's initiatives and strategies are aimed at transforming the workforce and driving continuous growth. By providing blended, multimodal learning experiences and overcoming critical skills gaps, the company is well-positioned to meet the evolving needs of enterprises and learners.

Conference Call and Webcast Information

Skillsoft will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss its financial results. This provides an opportunity for investors and stakeholders to gain deeper insights and ask questions. 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. With a portfolio of high-quality content, an AI-enabled platform, and a broad ecosystem of partners, Skillsoft drives continuous growth and performance for employees and their organizations.

Through its innovative approach, Skillsoft overcomes critical skills gaps, unlocks human potential, and transforms the workforce. It is committed to preparing today's employees for tomorrow's economy and helping them achieve their full potential.

Balance Sheet and Cash Flow

The unaudited condensed consolidated balance sheets and statements of operations provide a detailed view of the company's financial position. As of October 31, 2024, Skillsoft had total assets of $1,053,531 thousand and total liabilities and shareholders' equity of the same amount. The cash flow statement shows net cash provided by (used in) operating activities, investing activities, and financing activities.

Free cash flow conversion and other financial metrics highlight the company's ability to generate cash and manage its finances effectively. These metrics provide valuable insights into the company's operational efficiency and financial health.

Skillsoft's financial results and initiatives demonstrate its commitment to driving growth and innovation in the learning and development space. With a focus on transforming the workforce and providing value to customers, the company is well-positioned for continued success in the future.