- Raises and tightens fiscal year 2025 revenue outlook
- Continued strong growth in Adjusted EBITDA and margin
expansion
- Generated positive free cash flow in the quarter
- Delivering on strategic transformation initiatives laid out at
July Investor Day
Skillsoft Corp. (NYSE: SKIL) (“Skillsoft” or the “Company”), a
leading platform for transformative learning experiences, today
announced its financial results for the third quarter of fiscal
2025 ended October 31, 2024.
Fiscal 2025 Third Quarter Select Metrics and Financials from
Continuing Operations (1)(2)
- Total Revenue of $137 million compared to $139 million in the
prior year.
- Talent Development Solutions Revenue of $103 million up 2% from
the prior year.
- Global Knowledge Revenue of $34 million compared to $38 million
in the prior year.
- Net Loss of $24 million compared to net loss of $28 million in
the prior year. Net Loss per share of $2.86 compared to net loss
per share of $3.45 in the prior year. Adjusted Net Loss of $15
million improved from Adjusted Net Loss of $23 million in the prior
year. Adjusted Net Loss per share of $1.82 improved from Adjusted
Net Loss per share of $2.82 in the prior year.
- Adjusted EBITDA from continuing operations of $32 million,
reflecting a margin of 23% of Revenue, compared to $30 million and
a margin of 21% of Revenue in the prior year.
- Gross debt of $591 million at the end of the quarter, down $35
million compared to $626 million in the prior year.
- Ended the quarter with $102 million of cash, cash equivalents,
and restricted cash.
“Our fiscal third quarter financial results demonstrate our
first step in executing our transformation strategy,” said Ron
Hovsepian, Skillsoft’s Executive Chair and Chief Executive Officer.
“The operationalization of our strategy is showing the first signs
of business and financial improvement for our shareholders and
customers.”
Fiscal 2025 Third Quarter Business Highlights
- Skillsoft continues its leadership in AI innovation by
launching key learner and organizational tools including AI
Coaching Assistant to help leaders develop coaching plans, AI
Learning Assistant to personalize the learning experience, and AI
Coding Assistant to provide tailored coding exercises and immediate
feedback.
- Skillsoft’s organizational platform – Percipio – adds new
capabilities in compliance and certifications. Skillsoft’s
Compliance Suite is a new offering that aids companies in
developing competencies needed to identify and mitigate business
risk. Skillsoft’s end-to-end certification paths increase speed to
productivity by helping learners attain globally recognized
technical certifications.
- Key customer wins were in workforce transformation catalyzed by
AI, which led to AI upskilling and global workforce skill
measurement generating more than $8 million over multiple years
from six global companies.
- “Partner of the Year” was awarded to Skillsoft multiple times
as a leader in the interactive learning experience market through
Global Knowledge by global vendors including Cisco, CompTIA, Palo
Alto Networks, and EC-Council.
“I am pleased with our financial results for the quarter, which
are highlighted by strong revenue execution, improved
profitability, and positive free cash flow,” said Rich Walker,
Skillsoft’s Chief Financial Officer. “Our third quarter
performance, coupled with momentum from our transformation
execution, gives us confidence to raise and tighten our FY25
revenue guidance range, while reaffirming our adjusted EBITDA
outlook.”
Full-Year Fiscal 2025 Financial Outlook (2)
The following table reflects Skillsoft’s updated financial
outlook for the fiscal year ending January 31, 2025, based on
current market conditions, expectations, and assumptions:
GAAP Revenue
$520 million – $530 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.
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
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 press 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 non-GAAP calculations and the U.S. GAAP measures
may be materially different than the non-GAAP measures.
We disclose the below 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):
- 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.
- Foreign currency impact – Unrealized and realized foreign
exchange gains or losses due to fluctuations in currency exchange
rates.
- (Gain) loss on sale of business - Gain or loss on non-routine
sale of business.
- Income from discontinued operations – Income from discontinued
operations that do not reflect our current operating
performance.
- Impairment charges - Non-cash goodwill, intangible or other
asset impairment charges.
Adjusted EBITDA - Adjusted EBITDA is defined as adjusted
net income (loss) excluding interest expense or income, benefit
from or provision for income taxes, depreciation and amortization
expense.
Adjusted operating expenses – Adjusted operating expenses
are defined as GAAP 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 gross margin – Adjusted gross margin is defined
as GAAP revenue less GAAP cost of revenues, excluding long-term
incentive compensation expense and depreciation expense, divided by
GAAP revenue for the same period.
Adjusted contribution margin – Adjusted contribution
margin is defined as GAAP revenue less adjusted operating expenses,
divided by GAAP revenue for the same period.
Free cash flow – Free cash flow is defined as GAAP 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.
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, non-GAAP 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 and per share amounts)
October 31, 2024
January 31, 2024
ASSETS
Current assets:
Cash and cash equivalents
$
97,921
$
136,308
Restricted cash
3,881
10,215
Accounts receivable, net of allowance for
credit losses of approximately $558 and $562 as of October 31, 2024
and January 31, 2024, respectively
102,498
185,638
Prepaid expenses and other current
assets
55,834
53,170
Total current assets
260,134
385,331
Property and equipment, net
3,543
6,639
Goodwill
317,071
317,071
Intangible assets, net
456,692
539,293
Right of use assets
5,054
8,044
Other assets
11,037
17,256
Total assets
$
1,053,531
$
1,273,634
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current maturities of long-term debt
$
6,404
$
6,404
Borrowings under accounts receivable
facility
10,009
44,980
Accounts payable
21,159
14,512
Accrued compensation
28,325
31,774
Accrued expenses and other current
liabilities
22,370
29,939
Lease liabilities
2,088
3,049
Deferred revenue
203,646
282,570
Total current liabilities
294,001
413,228
Long-term debt
574,312
577,487
Deferred tax liabilities
44,099
52,148
Long-term lease liabilities
6,839
9,251
Deferred revenue - non-current
1,823
2,402
Other long-term liabilities
11,977
13,531
Total long-term liabilities
639,050
654,819
Commitments and contingencies
Shareholders’ equity:
Shareholders’ common stock - Class A
common shares, $0.0001 par value: 18,750,000 shares authorized and
8,576,683 shares issued and 8,276,906 shares outstanding at October
31, 2024, and 8,380,436 shares issued and 8,080,659 shares
outstanding at January 31, 2024
1
1
Additional paid-in capital
1,559,547
1,551,005
Accumulated equity (deficit)
(1,412,279
)
(1,321,478
)
Treasury stock, at cost - 299,777 shares
as of October 31, 2024 and January 31, 2024
(10,891
)
(10,891
)
Accumulated other comprehensive income
(loss)
(15,898
)
(13,050
)
Total shareholders’ equity
120,480
205,587
Total liabilities and shareholders’
equity
$
1,053,531
$
1,273,634
SKILLSOFT CORP.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share
amounts)
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Revenues:
Total revenues
$
137,225
$
138,956
$
397,241
$
415,697
Operating expenses:
Costs of revenues
34,312
36,407
101,254
114,698
Content and software development
14,937
16,126
45,436
51,024
Selling and marketing
39,615
43,983
122,591
130,321
General and administrative
21,686
22,308
66,390
72,689
Amortization of intangible assets
31,826
38,620
95,197
116,086
Acquisition and integration related
costs
931
510
3,349
2,838
Restructuring
3,095
873
15,361
8,592
Total operating expenses
146,402
158,827
449,578
496,248
Operating income (loss)
(9,177
)
(19,871
)
(52,337
)
(80,551
)
Other income (expense), net
(538
)
19
1,261
(1,290
)
Fair value adjustment of warrants
—
1,105
—
4,750
Fair value adjustment of interest rate
swaps
(822
)
3,981
418
11,186
Interest income
924
1,060
2,897
2,576
Interest expense
(15,845
)
(16,492
)
(48,538
)
(48,683
)
Income (loss) before provision for
(benefit from) income taxes
(25,458
)
(30,198
)
(96,299
)
(112,012
)
Provision for (benefit from) income
taxes
(1,859
)
(2,462
)
(5,498
)
(8,735
)
Income (loss) from continuing
operations
(23,599
)
(27,736
)
(90,801
)
(103,277
)
Gain (loss) on sale of business
—
—
—
(682
)
Net income (loss)
$
(23,599
)
$
(27,736
)
$
(90,801
)
$
(103,959
)
Net income (loss) per share:
Basic and diluted - continuing
operations
$
(2.86
)
$
(3.45
)
$
(11.11
)
$
(12.84
)
Basic and diluted - discontinued
operations
—
—
—
(0.08
)
Basic and diluted
$
(2.86
)
$
(3.45
)
$
(11.11
)
$
(12.92
)
Weighted average common shares
outstanding:
Basic and diluted
8,239,564
8,047,497
8,170,344
8,043,712
SKILLSOFT CORP.
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Nine Months Ended
October 31, 2024
October 31, 2023
Cash flows from operating activities:
Net income (loss)
$
(90,801
)
$
(103,959
)
Adjustments to reconcile net income (loss)
to net cash provided by (used in) operating activities:
Amortization of intangible assets
95,197
116,086
Stock-based compensation
9,985
22,917
Depreciation
2,404
2,629
Non-cash interest expense
1,628
1,546
Non-cash property, equipment, software and
lease impairment charges
2,495
4,265
Provision for credit loss expense
(recovery)
(4
)
205
(Gain) loss on sale of business
—
682
Provision for (benefit from) deferred
income taxes – non-cash
(8,080
)
(10,270
)
Fair value adjustment of warrants
—
(4,750
)
Fair value adjustment of interest rate
swaps
(418
)
(11,186
)
Change in assets and liabilities:
Accounts receivable
82,877
70,645
Prepaid expenses and other assets,
including long-term
4,258
2,726
Right-of-use assets
1,632
2,184
Accounts payable
6,693
(3,283
)
Accrued expenses and other liabilities,
including long-term
(12,819
)
(20,820
)
Lease liabilities
(3,387
)
(3,048
)
Deferred revenues
(79,446
)
(75,250
)
Net cash provided by (used in) operating
activities
12,214
(8,681
)
Cash flows from investing activities:
Purchase of property and equipment
(820
)
(3,753
)
Proceeds from sale of property and
equipment
10
—
Internally developed software -
capitalized costs
(13,018
)
(8,055
)
Sale of SumTotal, net of cash
transferred
—
(5,137
)
Net cash provided by (used in) investing
activities
(13,828
)
(16,945
)
Cash flows from financing activities:
Shares repurchased for tax withholding
upon vesting of restricted stock-based awards
(1,052
)
(1,441
)
Payments to acquire treasury stock
—
(8,046
)
Proceeds from (payments on) accounts
receivable facility
(34,971
)
793
Principal payments on term loans
(4,803
)
(4,803
)
Net cash provided by (used in) financing
activities
(40,826
)
(13,497
)
Effect of exchange rate changes on cash
and cash equivalents
(2,281
)
(1,674
)
Net increase (decrease) in cash, cash
equivalents and restricted cash
(44,721
)
(40,797
)
Cash, cash equivalents and restricted
cash, beginning of period
146,523
177,556
Cash, cash equivalents and restricted
cash, end of period
$
101,802
$
136,759
Supplemental disclosure of cash flow
information:
Cash and cash equivalents
$
97,921
$
129,806
Restricted cash
3,881
6,953
Cash, cash equivalents and restricted
cash, end of period
$
101,802
$
136,759
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(in thousands, unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Revenues
Talent Development Solutions
$
102,998
$
101,132
$
302,725
$
302,893
Global Knowledge
34,227
37,824
94,516
112,804
Total revenues, as reported
$
137,225
$
138,956
$
397,241
$
415,697
Net income (loss), as reported
$
(23,599
)
$
(27,736
)
$
(90,801
)
$
(103,959
)
Acquisition and integration related
costs
931
510
3,349
2,838
Restructuring
3,095
873
15,361
8,592
Transformation costs
164
1,053
1,351
2,503
System migration costs
—
510
118
1,580
Long-term incentive compensation
expenses
4,099
7,962
10,438
22,917
Executive exit costs
—
—
3,326
—
Fair value adjustment of warrants
—
(1,105
)
—
(4,750
)
Fair value adjustment of interest rate
swaps
822
(3,981
)
(418
)
(11,186
)
Foreign currency impact
524
(181
)
(1,297
)
1,513
Gain (loss) on sale of business
—
—
—
682
Tax impact of adjustments
(1,057
)
(602
)
(3,349
)
(2,921
)
Adjusted net income (loss) from
continuing operations
(15,021
)
(22,697
)
(61,922
)
(82,191
)
Interest expense, net
14,921
15,432
45,641
46,107
Expense (benefit from) income taxes,
excluding tax impacts above
(802
)
(1,860
)
(2,149
)
(5,814
)
Depreciation
1,000
266
2,404
2,629
Amortization of intangible assets
31,826
38,620
95,197
116,086
Adjusted EBITDA from continuing
operations
$
31,924
$
29,761
$
79,171
$
76,817
Weighted average common shares
outstanding:
Basic and diluted
8,239,564
8,047,497
8,170,344
8,043,712
Basic and diluted per share
information:
Net income (loss), as reported
$
(2.86
)
$
(3.45
)
$
(11.11
)
(12.92
)
Adjusted net income (loss) from continuing
operations
$
(1.82
)
$
(2.82
)
$
(7.58
)
$
(10.22
)
Adjusted net income (loss) margin
%
(10.9
)%
(16.4
)%
(15.6
)%
(19.7
)%
Interest expense, net
10.9
%
11.1
%
11.5
%
11.1
%
Expense (benefit from) income taxes,
excluding tax impacts above
(0.6
)%
(1.3
)%
(0.5
)%
(1.4
)%
Depreciation
0.7
%
0.2
%
0.6
%
0.6
%
Amortization of intangible assets
23.2
%
27.8
%
23.9
%
27.9
%
Adjusted EBITDA margin %
23.3
%
21.4
%
19.9
%
18.5
%
Adjusted gross margin
75.2
%
73.9
%
74.7
%
72.6
%
Adjusted contribution margin
23.3
%
21.4
%
20.0
%
18.5
%
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES - continued
(in thousands, unaudited)
Three Months Ended October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Operating expenses:
GAAP costs of revenues
$
34,312
$
36,407
$
101,254
$
114,698
Depreciation
(91
)
(80
)
(315
)
(413
)
Long-term incentive compensation
expenses
(201
)
(128
)
(499
)
(463
)
Adjusted costs of revenues
34,020
36,199
100,440
113,822
GAAP content and software development
14,937
16,126
45,436
51,024
Depreciation
(74
)
22
(218
)
(169
)
Long-term incentive compensation
expenses
(857
)
(1,575
)
(3,061
)
(5,350
)
System migration
—
(510
)
(118
)
(1,580
)
Adjusted content and software
development
14,006
14,063
42,039
43,925
GAAP selling and marketing
39,615
43,983
122,591
130,321
Depreciation
(161
)
(160
)
(531
)
(839
)
Long-term incentive compensation
expenses
(1,595
)
(1,421
)
(3,648
)
(2,435
)
Transformation
—
(9
)
(213
)
(251
)
Adjusted selling and marketing
37,859
42,393
118,199
126,796
GAAP general and administrative
21,686
22,308
66,390
72,689
Depreciation
(674
)
(48
)
(1,340
)
(1,208
)
Long-term incentive compensation
expenses
(1,446
)
(4,838
)
(3,230
)
(14,669
)
Transformation
(179
)
(882
)
(1,192
)
(2,475
)
Executive exit costs
—
—
(3,326
)
—
Adjusted general and administrative
19,387
16,540
57,302
54,337
Total GAAP operating expenses
110,550
118,824
335,671
368,732
Depreciation
(1,000
)
(266
)
(2,404
)
(2,629
)
Long-term incentive compensation
expenses
(4,099
)
(7,962
)
(10,438
)
(22,917
)
System migration
—
(510
)
(118
)
(1,580
)
Transformation (1)
(179
)
(891
)
(1,405
)
(2,726
)
Executive exit costs
—
—
(3,326
)
—
Adjusted total operating expenses
$
105,272
$
109,195
$
317,980
$
338,880
(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 October
31,
Nine Months Ended October
31,
2024
2023
2024
2023
Free cash flow reconciliation
Net cash provided by (used in) operating
activities
$
8,717
$
(10,666
)
$
12,214
$
(8,681
)
Purchase of property and equipment,
net
(411
)
(347
)
(810
)
(3,753
)
Internally developed software -
capitalized costs
(4,222
)
(2,104
)
(13,018
)
(8,055
)
Total free cash flow
4,084
(13,117
)
(1,614
)
(20,489
)
Cash impact for adjusted EBITDA excluded
charges
10,089
2,306
17,187
10,098
Adjusted free cash flow (levered)
$
14,173
$
(10,811
)
$
15,573
$
(10,391
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241210536898/en/
Investors: Ross Collins or Stephen Poe
SKIL@alpha-ir.com
Media: Cameron Martin cameron.martin@skillsoft.com
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