Slide 1: Earnings Supplement Q1 FY2025
Earnings Supplement Q1 FY2025 June 10, 2024 1
Slide 2: Cautionary Notes Regarding Forward Looking Statements
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, whic
Slide 3: Today's Call
Today’s Ron Hovsepian EXECUTIVE CHAIRMAN Call Rich Walker CFO • Opening Remarks • Business Update • Q1 FY2025 Financial Results Chad Lyne • FY2025 Outlook IRO • Q&A • Closing Remarks Webcast Details Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=0ObSZWhh Audio Dial-in:
Slide 4: Executive Chairman quote on market opportunity and execution
“ 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. We are moving quickly to strengthen our
Slide 5: Recent Business Highlights
Recent Business Highlights • Delivered first quarter LTM Content & Platform Dollar Retention Rate1 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 Manag
Slide 6: Q1 FY2025 Financial Highlights
Q1 FY2025 Financial Highlights Delivered generally comparable YoY performance in our SaaS-based Content & Platform segment while maintaining mid-teens Adjusted EBITDA profitability Q1 FY25 Content & Q1 FY25 Adjusted Platform Segment LTM Dollar EBITDA1 Retention Rate1 Revenue % of Revenue $98.1M ~99%
Slide 7: Revenue
Revenue Comparably flat Revenue in the Content & Platform segment was offset by declines in the Instructor-Led Training segment • Content & Platform segment $135.6 $141.2 ▲<1% YoY $139.0 $137.5 ▼<1% YoY ▼2% YoY Revenue was roughly flat YoY, ▼5% YoY $38.0 $127.8 $37.8 $35.6 ▼6% YoY $37.0 ▼9% YoY decl
Slide 8: Profitability and Cash Flow
Profitability Demonstrated prudent expense management to maintain mid-teens Adjusted EBITDA margins and and Cash positive Free Cash Flow Flow Non-GAAP OpEx ($Ms) Adjusted EBITDA ($Ms) • Non-GAAP Operating Expenses of $109M, favorably down 4% YoY $113.9 $108.9 $21.6 ▼4% YoY 16.0% • Adjusted EBITDA of
Slide 9: Appendix
Appendix
Slide 10: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 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 part
Slide 11: Reconciliation of Non-GAAP Financial Measures
SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands, unaudited) Three Months Ended April Reconciliation 30, 2024 2023 Revenues: of Non-GAAP Content & Platform segment revenues $ 98,075 $ 98,573 Instructor-Led Training segment revenues 29,718 36,981 Total revenues, as reported
Slide 12: Reconciliation of Non-GAAP Financial Measures and Free Cash Flow
Reconciliation of Non-GAAP Financial Measures SKILLSOFT CORP. SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued FREE CASH FLOW RECONCILIATION (in thousands, unaudited) (in thousands) Three Months Ended April 30, Three Months Ended April 30, 2024 2023 2024 2023 Operating expen