Slide 1: Earnings Supplement Q2 FY2025
Earnings Supplement Q2 FY2025 September 9, 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 CHAIR AND Call CHIEF EXECUTIVE OFFICER Rich Walker • Opening Remarks CHIEF FINANCIAL OFFICER • Business Update • Q2 FY2025 Financial Results Stephen Poe • Q&A INVESTOR RELATIONS • Closing Remarks Webcast Details Webcast Link: https://event.choruscall.com/mediaframe/we
Slide 4: CEO and CFO Remarks on Q2 Performance
“ Our revenue and Adjusted EBITDA performance were in line with our expectations for the quarter. Our progress on the ‘Fix the Basics’ strategy, including transitioning to a dual business unit structure, already shows improved outcomes. Key leaders have been added, which will further accelerate our
Slide 5: Recent Business Highlights
Recent Business Highlights • Microsoft and Skillsoft partnered to innovate GenAI upskilling programs. • Launched a reimagined Skillsoft platform user experience, featuring a personalized, AI-driven learner experience with enhanced intuitive design and sequenced learning paths to maximize engagement
Slide 6: Q2 FY2025 Financial Highlights
Q2 FY2025 Financial Highlights Achieved strong Adjusted EBITDA profitability, exceeding our expectations, while delivering top-line performance in line with our expectations in Talent Development Solutions. Q2 FY25 Talent Q2 FY25 Adjusted LTM Dollar EBITDA1 Development Retention Rate1 Solutions Reve
Slide 7: Revenue
Revenue Revenue performed in line with our expectations; Talent Development Solutions was offset by declines in Global Knowledge • Talent Development Solutions $141.2 ▲<1% YoY $139.0 $137.5 ▼<1% YoY ▼2% YoY $132.2 Revenue was down ~1% YoY $38.0 $37.8 $35.6 $127.8 ▼6% YoY ▼6% YoY ▼9% YoY ▼9% YoY ▼16%
Slide 8: Profitability and Cash Flow
Profitability Disciplined expense management drove YoY margin expansion (up ~300 bps), while the full impact of resource and Cash reallocation efforts will be seen in future quarters Flow Non-GAAP OpEx ($Ms) Adjusted EBITDA ($Ms) • Non-GAAP Operating Expenses of $28.3 21.4% $104M, favorably down 10%
Slide 9: Appendix
skillsoft® 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
Reconciliation of Non-GAAP Financial Measures 11
Slide 12: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 12