Slide 1: Q1 FY2023 Earnings Supplement
Q1 FY2023 EARNINGS SUPPLEMENT JUNE 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: Q1 FY2023 Highlights
Q1 FY2023 HIGHLIGHTS • Closed Codecademy transaction and started the integration. • Working with 50 enterprise customers $170M 31% $33M who have expressed interest in Codecademy offering, including some Adjusted Revenue(1) Content Bookings Adjusted EBITDA(1) Y/Y Growth of the world’s largest banks,
Slide 5: Historical Quarterly Financial Performance
HISTORICAL QUARTERLY FINANCIAL PERFORMANCE ($M) FY2020A FY2021A FY2022A FY2023A Total Q1A Q2A Q3A Q4A Total Q1A Q2A Q3A Q4A Total Q1A Content Bookings $347 $39 $59 $74 $164 $334 $39 $64 $78 $168 $349 $51 GK/ILT Bookings 291 57 49 55 53 214 65 64 62 60 250 56 SumTotal Bookings 138 32 24 28 40 124 25
Slide 6: FY2023 Outlook
FY2023 OUTLOOK $M • Bookings and Adj. Revenue trending LOW HIGH towards low-end of BOOKINGS $790 - $825 ranges because of softness within Global Knowledge business. ADJUSTED • Initiated actions that $765 - $790 REVENUE(1) we believe can positively impact 2HFY23 revenue. ADJUSTED • Expect to deliver
Slide 7: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW CAPITAL STRUCTURE DEBT TERMS ($M) ($M) TOTAL DEBT(1) $665 TERM LOAN B FACILITY $640 CASH(1) $76 MATURITY 2028 NET DEBT $589 PRICING SOFR + 525bps (0.75% SOFR floor) 102 hard call premium through 7/16/22 NET DEBT / PRO FORMA LTM ADJ. EBITDA(2) 4.1X PREPAYMENT 101 soft call
Slide 8: Appendix
APPENDIX skillsoft®
Slide 9: 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 10: Reconciliation of Non-GAAP Financial Measures: Three Months Ended April 30, 2022
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE MONTHS ENDED APRIL 30, 2022 $ millions Non-GAAP Revenue Skillsoft Corp. Adjustments (1) Combined Revenues: Total revenues $ 164 $ 6 $ 170 Operating expenses Cost of revenues 48 6 54 Content and software development 23 - 23 Selling and marketing 45
Slide 11: Reconciliation of Non-GAAP Financial Measures: Three Months Ended April 30, 2021
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE MONTHS ENDED APRIL 30, 2021 $ millions Non-GAAP Revenue Combined Codecademy(2) Proforma (1) GK Skillsoft Corp. Adjustments Revenues: Total revenues $ 47 $ 92 $ 28 $ 166 $ 3 $ 169 Operating expenses Cost of revenues 23 25 8 55 Content and software
Slide 12: Reconciliation of Non-GAAP Financial Measures: Twelve Months Ended January 31, 2022
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: TWELVE MONTHS ENDED JANUARY 31, 2022 $ millions For the Twelve Months Ended January 31, 2022 For the For the For the Period from Period from Period from Non-GAAP 2/1/21 to 6/11/21 2/1/21 to 6/11/21 6/12/21 to 1/31/22 Revenue Global Knowledge Skillsoft S
Slide 13: Reconciliation of Non-GAAP Financial Measures: Twelve Months Ended January 31, 2021
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: TWELVE MONTHS ENDED JANUARY 31, 2021 $ millions For the Twelve Months Ended January 31, 2021 For the For the For the Period from Period from Period from 8/28/20 to 2/1/20 to 1/31/21 2/1/20 to 8/27/20 1/31/21 Non-GAAP Global Predecessor Predecessor Reven
Slide 14: Reconciliation of Non-GAAP Financial Measures: Fiscal Year Ended January 31, 2020
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: FISCAL YEAR ENDED JANUARY 31, 2020 ($M) $ millions Fiscal Year Ended January 31, 2020 Global Skillsoft Knowledge Combined Net Revenue $514 $254 $768 Impact of fresh-start and purchase accounting -- -- -- One-time impact of the deconsolidation of Canada