Skillsoft Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2025
-- Delivers full year revenue above the top end of outlook range and
adjusted EBITDA at the top end of outlook range
-- Continued strong growth in adjusted EBITDA and margin expansion
-- Strong free cash flow performance for the quarter and full year
-- Execution of strategic transformation initiatives positions Company well
for continued improvement in fiscal 2026
-- Provides financial outlook for full year fiscal 2026
BOSTON--(BUSINESS WIRE)--April 14, 2025--
Skillsoft Corp. (NYSE: SKIL) ("Skillsoft" or the "Company"), the platform that empowers organizations and learners to unlock their full potential, today announced its financial results for the fourth quarter and full fiscal year ended January 31, 2025 and provided its financial outlook for full year fiscal 2026.
Fiscal 2025 Fourth Quarter Select Metrics and Financials from Continuing Operations (1)(2)
-- Total revenue of $134 million compared to $138 million in the prior year.
-- Talent Development Solutions revenue of $103 million up 1% from the prior
year.
-- Global Knowledge revenue of $31 million compared to $36 million in the
prior year.
-- GAAP net loss of $31 million compared to GAAP net loss of $245 million in
the prior year. GAAP net loss per share of $3.75 compared to GAAP net
loss per share of $30.38 in the prior year.
-- Adjusted net income of $17 million and adjusted net income per share of
$2.11 were flat to prior year.
-- Adjusted EBITDA from continuing operations of $30 million, reflecting a
margin of 22% of Revenue, compared to $28 million and a margin of 21% of
Revenue in the prior year.
-- Free cash flow of $13 million compared to $5 million in the prior year.
-- Gross debt of $581 million at the end of the quarter, down $48 million
compared to $629 million in the prior year.
-- Ended the quarter with $103 million of cash, cash equivalents, and
restricted cash.
Fiscal 2025 Full Year Select Metrics and Financials from Continuing Operations (1)(2)
-- Total revenue of $531 million compared to $553 million in the prior year.
-- Talent Development Solutions revenue of $406 million compared to $405
million in the prior year.
-- Global Knowledge revenue of $125 million compared to $148 million in the
prior year.
-- GAAP net loss of $122 million compared to GAAP net loss of $349 million
in the prior year. GAAP net loss per share of $14.87 compared to GAAP net
loss per share of $43.38 in the prior year.
-- Adjusted net income of $35 million improved from adjusted net income of
$34 million in the prior year. Adjusted net income per share of $4.33
improved slightly from adjusted net income per share of $4.25 in the
prior year.
-- Adjusted EBITDA from continuing operations of $109 million, reflecting a
margin of 21% of revenue, compared to $105 million and a margin of 19% of
revenue in the prior year.
-- Positive free cash flow of $12 million compared to negative free cash
flow of $15 million in the prior year.
"We continue to deliver strong execution of our Investor Day transformation plan, which is demonstrated in our fourth quarter and full year results," said Ron Hovsepian, Skillsoft's Executive Chair and Chief Executive Officer. "We delivered on our previously communicated fiscal 2025 commitments, driven by strong execution in the second half, and we are well positioned for continued improvement in fiscal 2026, subject to an evolving macroeconomic environment."
Fiscal 2025 Fourth Quarter Business Highlights
-- Within our TDS segment, our top ten deals during the fourth quarter
represented $22 million in total contract value with many multi-year
deals focused on skill building, skill measurement, ecosystem
integrations, and ability to deliver custom content and content from
other providers to support the full talent development lifecycle.
-- GK's top ten deals during the fourth quarter represented nearly $6
million in total contract value.
-- Our growing portfolio of AI capabilities is demonstrating solid early
interest by customers and prospects reaching nearly a total of 1 million
launches of our AI simulator, Skillsoft CAISY$(TM)$, by individual learners
and through our limited preview program with 100 enterprise organizations
participating as design partners.
-- Continued to enhance our ecosystem, highlighted by new integrations with
several leading technology partners like SAP Talent Intelligence Hub.
"We are very pleased with our financial results for the fourth quarter and full fiscal year which came in at or above the high end of our previously issued guidance ranges," said Rich Walker, Skillsoft's Chief Financial Officer. "Looking ahead, we are confident in our ability to continue executing on our transformation initiatives and believe we are firmly on track to return to top line growth, drive continued margin expansion, and generate positive free cash flow this fiscal year as indicated by our outlook."
Full-Year Fiscal 2026 Financial Outlook (2)
The following table reflects Skillsoft's financial outlook for the fiscal year ending January 31, 2026, based on current market conditions, expectations, and assumptions:
GAAP Revenue $530 million -- $545 million
Adjusted EBITDA $112 million -- $118 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.
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 (NYSE: SKIL) empowers organizations and learners to unlock their full potential by delivering personalized, interactive learning experiences and enterprise-ready solutions. Powered by AI and strengthened by a broad ecosystem of partners, the Skillsoft platform helps customers solve some of today's most complex business challenges including bridging skill gaps, improving talent retention, driving digital transformation, and future-proofing the workforce. Skillsoft is the talent development partner of choice for thousands of organizations -- including 60% of the Fortune 1000 -- and serves a global community of more than 95 million learners. For more information, visit skillsoft.com.
Non-GAAP Financial Measures And Key Performance Metrics
The Company has organized its business into two segments (or Business Units): Talent Development Solutions (formerly referred to as Content & Platform) and Global Knowledge (formerly referred to as Instructor-Led Training). 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 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):
-- Impairment charges - Non-cash goodwill, intangible or other asset
impairment charges.
-- Amortization of acquired intangible assets -- Non-cash
amortization expense of finite-lived intangible assets recognized
as a part of business combination accounting.
-- Acquisition and integration related costs -- Costs incurred to
effectuate an acquisition, including contingent compensation
expenses, and integration related costs.
-- Restructuring charges -- Charges related to strategic cost saving
initiatives, including severance costs, losses associated with the
abandonment of right-of-use assets, and contract termination
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.
-- Long-term incentive compensation expenses -- Charges associated
with long-term incentive compensation programs, including
stock-based compensation, cash awards tied to stock performance,
and awards granted in-lieu of stock that are intended to be
settled in cash.
-- Executive exit costs -- Costs associated with the departure of
executives.
-- Fair value adjustments -- Mark-to-market adjustments of warrants
and hedge instruments.
-- Other (income) expense, net -- Unrealized and realized gains or
losses primarily resulting from fluctuations of U.S. dollar
appreciating or depreciating against other currencies, and
impairments associated with property and equipment and other
assets when their carrying values are not recoverable.
-- (Gain) loss sale of business -- Gain or loss on non-routine sale
on business.
-- Income from discontinued operations -- Income from discontinued
operations that do not reflect our current operating performance.
Non-GAAP Financial Measures And Key Performance Metrics - continued
-- Adjusted EBITDA - Adjusted EBITDA is defined as net income (loss) is
defined as net income (loss) excluding non-cash items, benefit from or
provision for income taxes, 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):
-- Impairment charges - Non-cash goodwill, intangible or other asset
impairment charges.
-- Acquisition and integration related costs -- Costs incurred to
effectuate an acquisition, including contingent compensation
expenses, and integration related costs.
-- Restructuring charges -- Charges related to strategic cost saving
initiatives, including severance costs, losses associated with the
abandonment of right-of-use assets, and contract termination
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.
-- Long-term incentive compensation expenses -- Charges associated
with long-term incentive compensation programs, including
stock-based compensation, cash awards tied to stock performance,
and awards granted in-lieu of stock that are intended to be
settled in cash.
-- Executive exit costs -- Costs associated with the departure of
executives.
-- Fair value adjustments -- Mark-to-market adjustments of warrants
and hedge instruments.
-- Other (income) expense, net -- Unrealized and realized gains or
losses primarily resulting from fluctuations of U.S. dollar
appreciating or depreciating against other currencies, and
impairments associated with property and equipment and other
assets when their carrying values are not recoverable.
-- (Gain) loss sale of business -- Gain or loss on non-routine sale
on business.
-- Income from discontinued operations -- Income from discontinued
operations that do not reflect our current operating performance.
-- Interest expense (income), net -- Interest expense on our term
loan (net of the interest rate hedge affect) and accounts
receivable facility borrowings, partially offset by interest
income primarily from the use of money market investments to
realize returns on cash balances.
-- Amortization of intangible assets -- Non-cash amortization expense
for all finite-lived intangible assets.
-- Depreciation expense -- Non-cash depreciation expense for property
and equipment assets.
-- Provision for (benefit from) income taxes -- Current and deferred
federal, state and foreign income taxes.
-- Adjusted operating expenses -Adjusted operating expenses are defined as
costs of revenues, content and software development, selling and
marketing, and general and administrative expenses, excluding
depreciation expense, long-term incentive compensation expense, system
migration costs, transformation costs, and other non-cash charges, as
applicable.
-- Adjusted contribution margin -- Adjusted contribution margin is defined
as revenue less adjusted operating expenses, divided by revenue for the
same period.
-- Business unit contribution profit - Segment ("business unit")
contribution profit is defined as revenue, less business unit cost of
revenues and business unit content and software development expenses, and
business unit product research and management expenses.
-- Business unit contribution margin - Business unit contribution margin is
defined as revenue, less business unit cost of revenues and business unit
content and software development expenses, and business unit product
research and management expenses, divided by revenue for the same period.
-- Business unit cost of revenues - Business unit cost of revenue is defined
as cost of revenues, excluding depreciation expense, long-term incentive
compensation expense, system migration, and transformation expenses.
-- Business unit content and software development expenses - Business unit
content and software development expenses are defined as content and
software development expenses, excluding depreciation, long-term
incentive compensation, system migration, and transformation expenses.
-- Business unit product research and management expenses - Business unit
product research and management expenses are defined as certain selling
and marketing costs reflected in the business unit contribution profit.
-- Free cash flow -- Free cash flow is defined as net cash provided by (used
in) operating activities less purchases of property and equipment and
internally developed software.
-- Adjusted free cash flow (levered) -- Adjusted free cash flow (levered) is
defined as free cash flow plus the cash impact for adjusted EBITDA
excluded charges.
-- Free cash flow conversion -- Free cash flow conversion is defined as free
cash flow divided by adjusted EBITDA for the same period.
-- Net leverage -- Net leverage is defined as current maturities of
long-term debt, plus borrowings under accounts receivable facility, plus
long-term debt, less cash and equivalents and restricted cash, divided by
adjusted EBITDA for the preceding twelve-month period.
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. For all such statements, we claim the protection of the safe harbor for forward-looking statements provided by such sections and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements include, but are not limited to, statements that address activities, events or developments that we expect or anticipate may occur in the future, including such things as our outlook, our product development and planning, our pipeline, future capital expenditures, future share repurchases, anticipated financial results, the impact of regulatory changes, our current and evolving business strategies, including with respect to acquisitions and dispositions, demand for our services, our competitive position, the benefits of new initiatives, growth of our business and operations, the effectiveness of our products, the outcomes of litigation proceedings and claims, the state and future of skilling in the workplace, our ability to successfully implement our plans, strategies, objectives, and our expectations and intentions. Forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "may," "will," "would," "anticipate," "believe," "estimate," "expect," "intend," "plan," "continue," "project," "forecast," "seek," "outlook," "target," "goal," "objective," "potential," "possible," "probably," or similar expressions, or employ such future or conditional verbs as "may," "might," "will," "could," "should," or "would," or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. Such statements are based upon the current beliefs and expectations of Skillsoft's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. 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" and Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 10--K for the fiscal year ended January 31, 2025. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements included in this document and 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, except as required by law.
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 statistics 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 and per share amounts)
January 31, January 31,
2025 2024
-------------- ---------------
ASSETS
Current assets:
Cash and cash equivalents $ 100,766 $ 136,308
Restricted cash 2,571 10,215
Accounts receivable, net of
allowance for credit losses of
approximately $501 and $562 as
of January 31, 2025 and January
31, 2024, respectively 178,989 185,638
Prepaid expenses and other
current assets 50,527 53,170
---------- -----------
Total current assets 332,853 385,331
Goodwill 317,071 317,071
Intangible assets, net 427,221 539,293
Operating right-of-use assets 4,936 8,044
Other assets 23,988 23,895
---------- -----------
Total assets $ 1,106,069 $ 1,273,634
========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term
debt $ 6,404 $ 6,404
Borrowings under accounts
receivable facility 1,000 44,980
Accounts payable 13,458 14,512
Accrued compensation 47,803 31,774
Accrued expenses and other
current liabilities 24,231 29,939
Operating lease liabilities 1,791 3,049
Deferred revenue 282,295 282,570
---------- -----------
Total current liabilities 376,982 413,228
---------- -----------
Long-term debt 573,267 577,487
Deferred tax liabilities 42,039 52,148
Operating long-term lease
liabilities 6,431 9,251
Deferred revenue - non-current 1,656 2,402
Other long-term liabilities 11,848 13,531
---------- -----------
Total long-term liabilities 635,241 654,819
---------- -----------
Commitments and contingencies
Shareholders' equity (deficit):
Shareholders' common stock -
Class A common shares, $0.0001
par value: 18,750,000 shares
authorized and 8,616,633 shares
issued and 8,316,856 shares
outstanding as of January 31,
2025, and 8,380,436 shares
issued and 8,080,659 shares
outstanding as of January 31,
2024 1 1
Additional paid-in capital 1,565,040 1,551,005
Accumulated deficit (1,443,386) (1,321,478)
Treasury stock, at cost- 299,777
as of January 31, 2025 and
January 31, 2024 (10,891) (10,891)
Accumulated other comprehensive
income (loss) (16,918) (13,050)
---------- -----------
Total shareholders' equity
(deficit) 93,846 205,587
---------- -----------
Total liabilities and
shareholders' equity
(deficit) $ 1,106,069 $ 1,273,634
========== ===========
SKILLSOFT CORP.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except number of shares and per share amounts)
Three Months Ended Twelve Months Ended
January 31, January 31,
----------------------- -----------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
Revenues:
Total revenues $ 133,753 $ 137,540 $ 530,994 $ 553,237
Operating expenses:
Costs of revenues 33,625 38,459 134,879 153,157
Content and software
development 15,321 17,007 60,757 68,031
Selling and marketing 40,288 40,661 162,879 170,982
General and
administrative 25,974 23,207 92,364 95,896
Amortization of
intangible assets 32,019 36,425 127,216 152,511
Impairment of goodwill
and intangible assets -- 202,233 -- 202,233
Acquisition and
integration related
costs 898 2,225 4,247 5,063
Restructuring 2,912 5,386 18,273 13,978
--------- --------- --------- ---------
Total operating
expenses 151,037 365,603 600,615 861,851
--------- --------- --------- ---------
Operating income
(loss) (17,284) (228,063) (69,621) (308,614)
Other income (expense), net $(584.SI)$ (696) 677 (1,986)
Fair value adjustment of
warrants -- 4 -- 4,754
Fair value adjustment of
interest rate swaps 869 (8,430) 1,287 2,756
Interest income 629 981 3,526 3,557
Interest expense (14,978) (16,652) (63,516) (65,335)
--------- --------- --------- ---------
Income (loss)
before
provision for
(benefit from)
income taxes (31,348) (252,856) (127,647) (364,868)
Provision for (benefit from)
income taxes (241) (7,530) (5,739) (16,265)
--------- --------- --------- ---------
Income (loss)
from
continuing
operations (31,107) (245,326) (121,908) (348,603)
Gain (loss) on sale of
business -- -- -- (682)
--------- --------- --------- ---------
Net income
(loss) $ (31,107) $ (245,326) $ (121,908) $ (349,285)
========= ========= ========= =========
Net income (loss) per
share:
Basic and diluted -
continuing operations $ (3.75) $ (30.38) $ (14.87) $ (43.29)
Basic and diluted -
discontinued operations -- -- -- (0.09)
--------- --------- --------- ---------
Basic and diluted $ (3.75) $ (30.38) $ (14.87) $ (43.38)
========= ========= ========= =========
Weighted average common
share outstanding:
Basic and diluted 8,288,631 8,074,976 8,200,077 8,051,593
========= ========= ========= =========
SKILLSOFT CORP.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Twelve Months Ended January 31,
-----------------------------------
2025 2024
------------------ --------------
Cash flows from operating
activities:
Net income (loss) $ (121,908) $ (349,285)
Adjustments to reconcile
net income (loss) to net
cash provided by (used in)
operating activities:
Impairment of goodwill
and intangible assets -- 202,233
Amortization expense for
intangible assets 127,216 152,511
Stock-based compensation
expense 19,587 31,067
Non-cash operating lease
right-of-use asset
expense 2,175 5,015
Depreciation expense 3,374 3,330
Non-cash interest
expense 2,184 2,074
Non-cash property,
equipment, software and
operating right-of-use
asset impairment
charges 2,622 5,230
Provision for credit
loss expense
(recovery) (61) 341
(Gain) loss on sale of
business -- 682
Provision for (benefit
from) deferred income
taxes -- non-cash (9,990) (22,066)
Fair value adjustment of
warrants -- (4,754)
Fair value adjustment of
interest rate swaps (1,287) (2,756)
Changes in current assets
and liabilities, net of
effects from
acquisitions:
Accounts receivable 4,087 (2,091)
Prepaid expenses and
other assets, including
long-term (132) (4,601)
Operating right-of-use
assets and operating
lease liabilities (4,487) (6,041)
Accounts payable (855) (3,848)
Accrued expenses and
other liabilities,
including long-term 5,348 (6,425)
Deferred revenue 2,092 2,202
-------------- -------------
Net cash provided by
(used in) operating
activities 29,965 2,818
Cash flows from investing
activities:
Purchase of property and
equipment (1,603) (4,181)
Proceeds from sale of
property and equipment 10 --
Internally developed
software - capitalized
costs (16,765) (13,722)
Sale of SumTotal, net of
cash transferred -- (5,137)
-------------- -------------
Net cash provided by
(used in) investing
activities (18,358) (23,040)
Cash flows from financing
activities:
Shares repurchased for
tax withholding upon
vesting of restricted
stock-based awards (1,127) (1,649)
Payments to acquire
treasury stock -- (8,046)
Proceeds from (payments
on) accounts receivable
facility (43,980) 5,287
Principal payments on
term loans (6,404) (6,404)
-------------- -------------
Net cash provided by
(used in) financing
activities (51,511) (10,812)
Effect of exchange rate
changes on cash and cash
equivalents (3,282) 1
-------------- -------------
Net increase
(decrease) in
cash, cash
equivalents and
restricted cash (43,186) (31,033)
Cash, cash equivalents and
restricted cash, beginning of
period 146,523 177,556
-------------- -------------
Cash, cash
equivalents
and restricted
cash, end of
period $ 103,337 $ 146,523
============== =============
Supplemental disclosure of
cash flow information:
Cash and cash
equivalents $ 100,766 $ 136,308
Restricted cash 2,571 10,215
-------------- -------------
Cash, cash
equivalents and
restricted cash, end
of period $ 103,337 $ 146,523
============== =============
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except percentages, unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
-------------------------- --------------------------
2025 2024 2025 2024
---------- ---------- ---------- ----------
Revenues
Talent
Development
Solutions $ 102,805 $ 101,957 $ 405,530 $ 404,850
Global Knowledge 30,948 35,583 125,464 148,387
--------- --------- --------- ---------
Total revenues, as
reported $ 133,753 $ 137,540 $ 530,994 $ 553,237
========= ========= ========= =========
Net income (loss),
as reported $ (31,107) $ (245,326) $ (121,908) $ (349,285)
Impairment of
goodwill and
intangible
assets -- 202,233 -- 202,233
Amortization of
acquired
intangible
assets (1) 29,455 34,950 118,642 147,700
Acquisition and
integration
related costs 898 2,225 4,247 5,063
Restructuring 2,912 5,386 18,273 13,978
Transformation
costs 252 607 1,567 3,333
System migration
costs -- 594 118 2,174
Long-term
incentive
compensation
expenses 10,164 8,150 20,602 31,067
Executive exit
costs -- -- 3,326 --
Fair value
adjustment of
warrants -- (4) -- (4,754)
Fair value
adjustment of
interest rate
swaps (869) 8,430 (1,287) (2,756)
Other (income)
expense, net 584 696 (677) 1,986
Loss (gain) on
sale of
business -- -- -- 682
Tax impact of
adjustments 5,199 (1,026) (7,416) (17,230)
--------- --------- --------- ---------
Adjusted net income
(loss) from
continuing
operations 17,488 16,915 35,487 34,191
Interest
expense, net 14,349 15,671 59,990 61,778
Expense (benefit
from) income
taxes,
excluding tax
impacts above (5,440) (6,504) 1,677 965
Depreciation 970 701 3,374 3,330
Amortization of
capitalized
internally
developed
software (1) 2,564 1,475 8,574 4,811
--------- --------- --------- ---------
Adjusted EBITDA
from continuing
operations $ 29,931 $ 28,258 $ 109,102 $ 105,075
========= ========= ========= =========
Weighted average
common shares
outstanding:
Basic and
diluted 8,288,631 8,074,976 8,200,077 8,051,593
========= ========= ========= =========
Basic and diluted
per share
information:
Net income
(loss), as
reported $ (3.75) $ (30.38) $ (14.87) $ (43.38)
========= ========= ========= =========
Adjusted net
income (loss)
from continuing
operations $ 2.11 $ 2.09 $ 4.33 $ 4.25
========= ========= ========= =========
Adjusted net income
(loss) margin % 13.1% 12.3% 6.7% 6.2%
Interest
expense, net 10.7% 11.4% 11.3% 11.2%
Expense (benefit
from) income
taxes,
excluding tax
impacts above (4.1)% (4.7)% 0.3% 0.2%
Depreciation 0.7% 0.5% 0.6% 0.6%
Amortization of
capitalized
internally
developed
software (1) 2.0% 1.0% 1.6% 0.8%
--------- --------- --------- ---------
Adjusted EBITDA
margin % 22.4% 20.5% 20.5% 19.0%
========= ========= ========= =========
(1) All amortization is excluded from EBITDA.
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued
(in thousands, except percentages, unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
---------------------- ----------------------
2025 2024 2025 2024
-------- -------- -------- --------
Talent Development
Solutions
Revenue $102,805 $101,957 $405,530 $404,850
Business unit cost
of revenues 14,702 16,921 61,183 65,426
Business unit
content and
software
development
expenses 12,931 14,745 52,875 56,551
Business unit
product research
and management
expenses 2,687 1,325 9,001 7,278
------- ------- ------- -------
Business unit
contribution
profit $ 72,485 $ 68,966 $282,471 $275,595
======= ======= ======= =======
Business unit
contribution
margin 70.5% 67.6% 69.7% 68.1%
Global Knowledge
Revenue $ 30,948 $ 35,583 $125,464 $148,387
Business unit cost
of revenues 18,634 21,099 72,593 86,416
Business unit
content and
software
development
expenses 542 633 2,637 2,752
------- ------- ------- -------
Business unit
contribution
profit $ 11,772 $ 13,851 $ 50,234 $ 59,219
======= ======= ======= =======
Business unit
contribution
margin 38.0% 38.9% 40.0% 39.9%
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued
(in thousands, unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
------------------- -------------------
2025 2024 2025 2024
-------- -------- -------- --------
Operating
expenses:
GAAP costs of
revenues $ 33,625 $ 38,459 $134,879 $153,157
Depreciation (82) (140) (397) (553)
Long-term
incentive
compensation
expenses (207) (299) (706) (762)
------- ------- ------- -------
Adjusted costs of
revenues 33,336 38,020 133,776 151,842
GAAP content and
software
development 15,321 17,007 60,757 68,031
Depreciation (78) (67) (296) (236)
Long-term
incentive
compensation
expenses (1,770) (968) (4,831) (6,318)
System migration -- $(594.SI)$ (118) (2,174)
------- ------- ------- -------
Adjusted content
and software
development 13,473 15,378 55,512 59,303
GAAP selling and
marketing 40,288 40,661 162,879 170,982
Depreciation (134) (83) (665) (922)
Long-term
incentive
compensation
expenses (394) (1,358) (4,042) (3,793)
Transformation -- -- (213) (251)
------- ------- ------- -------
Adjusted selling
and marketing 39,760 39,220 157,959 166,016
GAAP general and
administrative 25,974 23,207 92,364 95,896
Depreciation (676) (411) (2,016) (1,619)
Long-term
incentive
compensation
expenses (7,793) (5,525) (11,023) (20,194)
Transformation (252) (607) (1,354) (3,082)
Executive costs -- -- (3,326) --
------- ------- ------- -------
Adjusted general
and
administrative 17,253 16,664 74,645 71,001
Total GAAP
operating
expenses 115,208 119,334 450,879 488,066
Depreciation (970) (701) (3,374) (3,330)
Long-term
incentive
compensation
expenses (10,164) (8,150) (20,602) (31,067)
System migration -- (594) (118) (2,174)
Transformation (252) (607) (1,567) (3,333)
Executive costs -- -- (3,326) --
------- ------- ------- -------
Adjusted operating
expenses $103,822 $109,282 $421,892 $448,162
======= ======= ======= =======
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued
(in thousands, unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
------------------ -------------------
2025 2024 2025 2024
------- -------- -------- --------
Talent Development
Solutions
Cost of revenues
and content and
software
development
expenses:
GAAP costs of
revenues $14,972 $ 17,294 $ 62,154 $ 66,572
Depreciation (74) (92) (340) (464)
Long-term
incentive
compensation
expenses (196) (281) (631) (682)
------ ------- ------- -------
Business unit
costs of
revenues 14,702 16,921 61,183 65,426
GAAP content and
software
development 14,690 16,435 58,017 65,234
Depreciation (59) (63) (270) (227)
Long-term
incentive
compensation
expenses (1,700) (1,033) (4,754) (6,282)
System migration -- (594) (118) (2,174)
------ ------- ------- -------
Business unit
content and
software
development 12,931 14,745 52,875 56,551
GAAP cost of
revenues and
content and
software
development
expenses 29,662 33,729 120,171 131,806
Depreciation (133) (155) (610) (691)
Long-term
incentive
compensation
expenses (1,896) (1,314) (5,385) (6,964)
System migration -- (594) (118) (2,174)
------ ------- ------- -------
Business unit
total cost
of revenues
and content
and software
development
expenses $27,633 $ 31,666 $114,058 $121,977
====== ======= ======= =======
Global Knowledge
Cost of revenues
and content and
software
development
expenses:
GAAP costs of
revenues $18,653 $ 21,165 $ 72,725 $ 86,585
Depreciation (8) (48) (57) (89)
Long-term
incentive
compensation
expenses (11) (18) (75) (80)
------ ------- ------- -------
Business unit
costs of
revenues 18,634 21,099 72,593 86,416
GAAP content and
software
development 631 572 2,740 2,797
Depreciation (19) (4) (26) (9)
Long-term
incentive
compensation
expenses (70) 65 (77) (36)
System
migration -- -- -- --
------ ------- ------- -------
Business unit
content and
software
development 542 633 2,637 2,752
GAAP cost of
revenues and
content and
software
development
expenses 19,284 21,737 75,465 89,382
Depreciation (27) (52) (83) (98)
Long-term
incentive
compensation
expenses (81) 47 (152) (116)
------ ------- ------- -------
Business unit
total cost
of revenues
and content
and software
development
expenses $19,176 $ 21,732 $ 75,230 $ 89,168
====== ======= ======= =======
SKILLSOFT CORP.
FREE CASH FLOW RECONCILIATION
(in thousands, unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
------------------ -------------------
2025 2024 2025 2024
------- -------- -------- --------
Free cash flow
reconciliation
Net cash provided
by (used in)
operating
activities $17,751 $ 11,499 $ 29,965 $ 2,818
Purchase of
property and
equipment, net (783) (428) (1,593) (4,181)
Internally
developed
software -
capitalized
costs (3,747) (5,667) (16,765) (13,722)
------ ------- ------- -------
Total free
cash flow 13,221 5,404 11,607 (15,085)
Cash impact for
adjusted EBITDA
excluded
charges 4,341 7,655 21,528 17,753
------ ------- ------- -------
Adjusted
free cash
flow
(levered) $17,562 $ 13,059 $ 33,135 $ 2,668
====== ======= ======= =======
View source version on businesswire.com: https://www.businesswire.com/news/home/20250412726739/en/
CONTACT: Investors
Ross Collins or Stephen Poe
SKIL@alpha-ir.com
Media
Cameron Martin
cameron.martin@skillsoft.com
(END) Dow Jones Newswires
April 14, 2025 16:05 ET (20:05 GMT)
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