Slide 1: Q3 FY2023 Earnings Supplement
Q3 FY2023 EARNINGS SUPPLEMENT DECEMBER 2022
Slide 2: Disclaimer: Forward Looking Statements
DISCLAIMER 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 t
Slide 3: Disclaimer (Continued): Non-GAAP Financial Measures
DISCLAIMER (CONTINUED) NON-GAAP FINANCIAL MEASURES AND KEY PERFORMANCE METRICS We track several 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,
Slide 4: Q3 FY2023 Highlights
Q3 FY2023 HIGHLIGHTS • Global Knowledge ILT bookings up 3% q/q $139M 3% $28M • Codecademy revenue growth of 12% y/y GAAP Revenue ILT Bookings Q/Q Adjusted EBITDA(1) Growth • Closed a number of Codecademy 98% 5% 20% enterprise sales and built a healthy pipeline for Q4 LTM Dollar Content Bookings Marg
Slide 5: Reaffirming FY2023 Outlook
REAFFIRMING FY2023 OUTLOOK $M • Moved to a GAAP revenue presentation to conform to GAAP LOW HIGH accounting not due to a change in the BOOKINGS $580 - $615 fundamentals of the business. Our revenue guidance now excludes GAAP REVENUE $520 - $550 ~$25M to $30M of reseller fees. • Trending above the mi
Slide 6: Reported Financial Performance Towards Outlook
REPORTED FINANCIAL PERFORMANCE TOWARDS OUTLOOK REPORTED VALUES WITH CODECADEMY STARTING APRIL 5TH ($M) FY2023A Reported Outlook Q1A Q2A Q3A YTD Content Bookings $51 $77 $85 $213 GK/ILT Bookings 56 46 48 150 Total Bookings $107 $124 $133 $363 $580 - $615 Content Revenue $90 $99 $98 $287 GK/ILT Revenu
Slide 7: Historical Quarterly Financial Performance
HISTORICAL QUARTERLY FINANCIAL PERFORMANCE PRO FORMA VALUES PRESENTED AS IF SKILLSOFT, GLOBAL KNOWLEDGE AND CODECADEMY HAD MERGED ON FEBRUARY 1, 2021 ($M) FY2020A FY2021A FY2022A FY2023A Total Q1A Q2A Q3A Q4A Total Q1A Q2A Q3A Q4A Total Q1A Q2A Q3A Content Bookings $372 $46 $69 $84 $175 $374 $49 $75
Slide 8: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW CAPITAL STRUCTURE DEBT TERMS ($M) ($M) AS OF Q3 FY2023 (10/31/2022) TERM LOAN B FACILITY $640 TOTAL DEBT(1) $631 MATURITY 2028 CASH $175 SOFR + 525bps PRICING NET DEBT(1) $456 (0.75% SOFR floor) NET DEBT / PRO FORMA LTM ADJ. EBITDA(2) 4.6X PREPAYMENT 101 soft call from 7/1
Slide 9: Appendix
APPENDIX skillsoft®
Slide 10: Summary of Shares Outstanding at Various Prices
SUMMARY OF SHARES OUTSTANDING AT VARIOUS PRICES (SHARES IN M) COMMENTARY Public Shares as % SHARES: of Shares Outstanding (Incl / • Includes 34.3M public IPO shares(2) Total Shares Excl Public Share Price Public IPO Shares Outstanding(4) Warrants) (1) • Includes 17.25M founder shares • Includes 28.5
Slide 11: Reconciliation of Non-GAAP Financial Measures: Three Months Ended October 31
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE MONTHS ENDED OCTOBER 31, 2022 AND 2021 (IN THOUSANDS) SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANICAL MEASURES (in thousands, unaudited) Successor Successor Three Months Three Months Ended Ended October 31, 2022 October 31, 2021 Net loss, as
Slide 12: Reconciliation of Non-GAAP Financial Measures: Nine Months Ended October 31
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: NINE MONTHS ENDED OCTOBER 31, 2022 AND 2021 (IN THOUSANDS) SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANICAL MEASURES (in thousands, unaudited) Fiscal 2023 Fiscal 2022 Successor Successor Predecessor (SLH) Nine Months From From Ended June 12, 2021 to
Slide 13: Reconciliation of Non-GAAP Financial Measures: Three and Nine Months
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE AND NINE MONTHS ENDED OCTOBER 31, 2022 AND 2021 (IN THOUSANDS) 13
Slide 14: Pro Forma Adjusted Net Loss Reconciliation
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE AND NINE MONTHS ENDED OCTOBER 31, 2022 AND 2021 (IN THOUSANDS) SKILLSOFT CORP. PRO FORMA ADJUSTED NET LOSS (IN THOUSANDS) Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Adjusted net loss from continuing operations
Slide 15: Pro Forma Adjusted EBITDA Reconciliation
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE AND NINE MONTHS ENDED OCTOBER 31, 2022 AND 2021 (IN THOUSANDS) SKILLSOFT CORP. PRO FORMA ADJUSTED EBITDA (IN THOUSANDS) Three Months Ended October 31, Nine Months Ended October 31, 2022 2021 2022 2021 Adjusted EBITDA from continuing operations (1)