Slide 1: Earnings Supplement Q2 FY2024
Earnings Supplement Q2 FY2024 September 11, 2023 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 Jeff Tarr CEO Call Rich Walker CFO • Opening Remarks • CEO Commentary • Business & Operational Highlights Chad Lyne • Q2 FY2024 Financial Results IRO • Q&A • Closing Remarks Webcast Details Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=TxKC7lq9 Audio Dial-in: T
Slide 4: CEO commentary: Skillsoft executed well in the quarter
“ Skillsoft executed well in the quarter, delivering improved top-line performance with growth in both Bookings and Revenue. The reskilling revolution is impacting nearly every company and industry around the globe, as organizations seek to enable their talent to succeed in an increasingly dynamic e
Slide 5: Q2 FY24 Business Highlights
Q2 FY24 Business Highlights • LTM Content & Platform Dollar Retention Rate1 was approximately 101% in the quarter, up from approximately 98% in the year-ago period. • Released a beta version of Skillsoft CAISY™ (Conversion AI Simulator), an innovative generative AI-based tool for simulating business
Slide 6: Q2 FY2024 Financial Highlights
Q2 FY2024 Financial Highlights A strong second quarter with YoY growth in Bookings and Revenue for the total company led by 7% growth in the Content & Platform segment, with higher profitability QoQ Content & LTM Dollar Adjusted EBITDA1 Platform Segment Bookings1 Retention Rate1 % of Revenue $83.1M
Slide 7: Bookings
Bookings Total Bookings returned to growth with 4% YoY expansion $129.2 ▲4% YoY • Total Bookings of $129M, $123.9 $46.1 $115.8 $108.5 reflecting YoY growth of 4% $46.5 ▼1% YoY $55.7 ▼6% YoY • Content & Platform segment $43.9 ▼21% YoY Bookings of $83M, reflecting YoY Instructor-Led Training Bookings
Slide 8: Revenue
Revenue Delivered total company Revenue growth YoY, led by 4% expansion in the primarily SaaS-based and recurring revenue Content & Platform segment $141.2 ▲<1% YoY • Total Revenue of $141M, reflecting $142.9 $140.6 $135.6 ▲4% QoQ growth of <1% YoY and 4% QoQ ▼5% YoY $45.1 $41.8 $38.0 $37.0 ▼9% YoY
Slide 9: Profitability and Cash Flow
Profitability Expanded profitability QoQ with 18% Adj. EBITDA margin and Cash Flow Primarily due to lower incentive compensation • Adjusted EBITDA of $25M was down $32.6 $7M or 22% YoY due to lower incentive compensation in prior-year period $25.4 • Adjusted EBITDA was up $4M or 18% ▼22% YoY $21.6 ▲
Slide 10: Reaffirming FY2024 Financial Outlook Metrics
Reaffirming FY2024 Financial Outlook Metrics Implied Growth at Metric FY23A FY24 Outlook Midpoint of Outlook Bookings $607M $610M-$640M ~3% Revenue $563M $555M-$585M ~1% Adj. EBITDA $102M $100M-$105M <1% 1 FY24 outlook initially provided in the April 6, 2023 earnings release, and reaffirmed in the S
Slide 11: Appendix
skillsoft® Appendix
Slide 12: 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 13: Reconciliation of Non-GAAP Financial Measures
SKILLSOFT CORP. Reconciliation RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands, unaudited) Three Three Six Six of Non-GAAP Months Months Months Months Ended Ended Ended Ended July 31, July 31, July 31, July 31, 2023 2022 2023 2022 Financial Revenues, as reported $ 141,187 $ 140,574 $ 276
Slide 14: Reconciliation of Non-GAAP Financial Measures (continued)
SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued Reconciliation (in thousands, unaudited) Three Months Ended July 31, Six Months Ended July 31, of Non-GAAP 2023 2022 2023 2022 Operating expenses: GAAP costs of revenues $ 40,467 $ 34,998 $ 78,291 $ 73,007 Depreciation (182 )
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures SKILLSOFT CORP. SKILLSOFT CORP. PRO FORMA REVENUE PRO FORMA ADJUSTED NET INCOME (LOSS) (in thousands) (in thousands) Three Months Ended Six Months Ended July Three Months Ended Six Months Ended July July 31, 31, July 31, 31, 2023 2022 2023 2022 2023 2022