Skillsoft Reports Financial Results for the Fourth Quarter and Full Year of Fiscal 2024
DENVER , April 15 /Businesswire/ - Skillsoft Corp. (NYSE: SKIL) (“Skillsoft” or the “Company”), a leading platform for transformative learning experiences, today announced its financial results for the fourth quarter and full fiscal year ended January 31, 2024 and provided its financial outlook for full year fiscal 2025.
“Skillsoft delivered full-year Adjusted EBITDA above the top end of our outlook range, further enhancing our industry-leading profit profile as we drove accelerated revenue growth in our subscription-based Content & Platform segment,” said Richard G. Walker, Skillsoft’s Chief Financial Officer. “We seized the generative AI opportunity and successfully positioned Skillsoft as the partner of choice for enterprise customers seeking to prepare their workforces to utilize this important technology. More broadly, we supported the workforce transformation priorities of thousands of organizations and enabled a community of more than 90 million learners to build future-ready skills. Our ability to holistically address the reskilling and upskilling priorities of the world’s largest and most complex organizations gives us confidence in our strategy and our ability to deliver long-term profitable growth.”
Recent Business Highlights (1)(2)
- Increased fourth quarter LTM Content & Platform Dollar Retention Rates to approximately 101%, up from approximately 100% in the prior year period.
- Launched an expanded collection of more than 60 new learning scenarios and recognized with a 2024 AI Excellence Award by Business Intelligence Group for Skillsoft’s AI-powered coaching solution CAISY™.
- Released new GenAI capabilities and enhancements to the Codecademy platform, including direct access to ChatGPT for prompt engineering from within the Codecademy platform, an AI-powered intelligent hint system, a mock interview simulator powered by GPT-4, and a real-time virtual coding assistant.
- Named as a key learning partner for the launch of Accenture LearnVantage, a new service designed to help organizations reskill and upskill their people in technology, data, and AI.
Fiscal 2024 Fourth Quarter Select Metrics and Financials from Continuing Operations (1)(2)
- Content & Platform segment GAAP Revenue of $102 million grew 4%. Total GAAP Revenue of $138 million declined 2%, with growth in the Content & Platform segment offset by a 16% decline in Instructor-Led Training segment GAAP Revenue to $36 million.
- GAAP net loss of $245 million included a $202 million non-cash charge for goodwill and intangible impairment, and compared to a GAAP net loss of $53 million in the prior year. GAAP net loss per share of $30.38 compared to a GAAP net loss per share of $6.51 in the prior year. Pro forma Adjusted Net Loss of $25 million was favorable to a pro forma Adjusted Net Loss of $34 million in the prior year. Pro forma Adjusted Net Loss per share of $3.09 was favorable to a pro forma Adjusted Net Loss per share of $4.17 in the prior year.
- Adjusted EBITDA from continuing operations of $28 million, reflecting a margin of 21% of GAAP Revenue, up from $22 million and a margin of 16% of GAAP Revenue in the prior year.
- Free Cash Flow of positive $5 million, favorably compared to positive $1 million in the prior year.
- Ended the quarter with $136 million of cash and cash equivalents.
Fiscal 2024 Full Year Select Metrics and Financials from Continuing Operations (1)(2)
- Content & Platform segment bookings of $418 million grew 2%. Total bookings of $596 million declined 2%, with growth in the Content & Platform segment offset by a 10% decline in Instructor-Led Training segment bookings to $178 million.
- Content & Platform segment GAAP Revenue of $405 million grew 5%. Total GAAP Revenue of $553 million was approximately flat to prior year, with growth in the Content & Platform segment offset by a 13% decline in Instructor-Led Training segment GAAP Revenue to $148 million. Content & Platform segment pro forma Revenue of $405 million grew 3%. Total pro forma Revenue of $553 million declined 2%, with growth in the Content & Platform segment offset by a 13% decline in Instructor-Led Training segment pro forma Revenue to $148 million.
- GAAP net loss of $349 million favorably compared to a GAAP net loss of $725 million in the prior year. GAAP net loss per share of $43.38 favorably compared to a GAAP net loss per share of $91.26 in the prior year. Pro forma Adjusted Net Loss of $107 million favorably compared to a pro forma Adjusted Net Loss of $118 million in the prior year. Pro forma Adjusted Net Loss per share of $13.31 favorably compared to a pro forma Adjusted Net Loss per share of $14.91 in the prior year.
- Pro forma Adjusted EBITDA from continuing operations of $105 million, reflecting a margin of 19% of pro forma Revenue, was up from $102 million and a margin of 18% of pro forma Revenue in the prior year.
- Free Cash Flow of negative $15 million, favorably compared to negative $36 million in the prior year.
Full-Year Fiscal 2025 Financial Outlook (2)
The following table reflects Skillsoft’s 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 – $110 million |
(1) |
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Growth calculated relative to the comparable prior year period unless otherwise noted. |
(2) |
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See “Non-GAAP Financial Measures and Key Performance Metrics” below for the definitions of our key operational and non-GAAP metrics and how they are calculated and more information regarding the fact that the Company is unable to reconcile forward-looking non-GAAP measures without unreasonable efforts. We have provided at the back of this release reconciliations of our historical non-GAAP financial measures to the comparable GAAP measures. |
Key Operational Metrics and non-GAAP Financial Measures (3) (in thousands, except per share amounts) |
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Three Months Ended |
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Year Ended |
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January 31, |
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Change |
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January 31, |
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Change |
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2024 |
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2023 |
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Dollar |
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Percent |
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2024 |
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2023 |
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Dollar |
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Percent |
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Bookings (4) |
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Continuing operations: |
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Content & Platform |
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$ |
184,129 |
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$ |
186,269 |
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$ |
(2,140 |
) |
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(1)% |
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$ |
417,540 |
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$ |
408,578 |
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$ |
8,962 |
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2% |
Instructor-Led Training |
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42,125 |
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48,625 |
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(6,500 |
) |
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(13)% |
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$ |
178,110 |
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198,569 |
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(20,459 |
) |
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(10)% |
Total bookings |
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$ |
226,254 |
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$ |
234,894 |
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$ |
(8,640 |
) |
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(4)% |
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$ |
595,651 |
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$ |
607,147 |
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$ |
(11,496 |
) |
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(2)% |
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GAAP revenue |
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Continuing operations: |
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Content & Platform |
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$ |
101,957 |
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$ |
97,871 |
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$ |
4,086 |
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4% |
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$ |
404,850 |
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$ |
384,378 |
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$ |
20,472 |
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5% |
Instructor-Led Training |
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35,583 |
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42,450 |
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(6,867 |
) |
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(16)% |
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148,387 |
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170,746 |
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(22,359 |
) |
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(13)% |
Total |
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$ |
137,540 |
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$ |
140,321 |
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$ |
(2,781 |
) |
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(2)% |
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$ |
553,237 |
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$ |
555,124 |
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$ |
(1,887 |
) |
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(0)% |
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Pro forma revenue (4) |
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