Slide 1: Earnings Supplement Q4 FY2024
Earnings Supplement Q4 FY2024 April 15, 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 Call Rich Walker • Opening Remarks CFO • Business & Operational Highlights • Q4 and Full-Year FY2024 Financial Results Chad Lyne IRO • FY2025 Outlook • Closing Remarks • Q&A Webcast Details Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webca
Slide 4: CFO quote on full-year Adjusted EBITDA and generative AI
“ Skillsoft delivered full-year Adjusted EBITDA above the top end of our outlook range, further enhancing our industry-leading profit profile as we drove accelerated revenue growth in our subscription-based Content & Platform segment. We seized the generative AI opportunity and successfully position
Slide 5: Recent Business Highlights
Recent Business Highlights • Increased fourth quarter LTM Content & Platform Dollar Retention Rates1 to approximately 101%, up from approximately 100% in the prior year period. • Launched an expanded collection of more than 60 new learning scenarios and recognized with a 2024 AI Excellence Award by
Slide 6: Fiscal FY2024 Financial Highlights
Fiscal FY2024 Financial Highlights Delivered accelerated Revenue growth in our SaaS-based Content & Platform segment, complemented with higher retention rates and improved profitability FY24 Content & FY24 Adjusted Platform Segment FY24 Dollar EBITDA1 Retention Rate1 Revenue % of Revenue $404.9M 101
Slide 7: LTM Bookings
LTM 2% YoY growth in Content & Platform segment LTM Bookings was offset by 10% contraction in Instructor- Bookings Led Training segment LTM Bookings $647.9 $633.4 $605.1 $604.3 $613.7 $599.8 $595.7 $240.4 $607.1 ▼4% YoY ▼2% YoY • Content & Platform segment Q4 $223.4 $209.5 ▼7% YoY ▼2% YoY $198.6 $18
Slide 8: Revenue
Revenue Accelerated Revenue growth in the Content & Platform segment was more than offset by declines in the Instructor-Led Training segment • Content & Platform segment $142.9 $135.6 $141.2 ▲<1% YoY $139.0 $137.5 $140.6 $139.4 $140.3 ▼<1% YoY ▼2% YoY Revenue grew 4% in Q4 ‘24 and 3% $45.1 $41.8 $42
Slide 9: Profitability and Cash Flow
Profitability Expanded profitability YoY with 21% Adjusted EBITDA margin for Q4 ‘24 and 19% for FY ‘24 and Cash Flow • Q4 ‘24 Adjusted EBITDA of $28M was up $6M, or 28%, YoY $29.8 • Q4 ‘24 Adjusted EBITDA margin of 21% was up ▲7% YoY $28.3 500 basis points YoY $25.4 ▲28% YoY • FY ‘24 Adjusted EBITDA
Slide 10: Appendix
Appendix
Slide 11: 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 12: Reconciliation of Non-GAAP Financial Measures
SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands, unaudited) Three Months Ended Year Ended January Reconciliation Revenues, as reported January 31, 2024 $ 137,540 2023 $140,321 2024 $ 553,237 31, 2023 $ 555,124 of Non-GAAP Net income (loss), as reported $ (245,326) $ (53,4
Slide 13: Reconciliation of Non-GAAP Financial Measures - continued
SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued (in thousands, unaudited) Three Months Ended Year Ended January January 31, 31, Reconciliation 2024 2023 2024 2023 Operating expenses: GAAP costs of revenues $ 38,459 $ 42,353 $ 153,157 $ 152,015 Depreciation (140 ) (150 ) (55
Slide 14: Reconciliation of Non-GAAP Financial Measures: Pro Forma Revenue and Net Income
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 Year Ended January Three Months Ended January 31, 31, January 31, Year Ended January 31, 2024 2023 2024 2023 2024 2023
Slide 15: Pro Forma Adjusted EBITDA and Free Cash Flow Reconciliation
Reconciliation of Non-GAAP Financial Measures SKILLSOFT CORP. SKILLSOFT CORP. PRO FORMA ADJUSTED EBITDA FREE CASH FLOW RECONCILIATION (in thousands) (in thousands) Three Months Ended Year Ended January Three Months Ended January 31, 31, January 31, 2024 Year Ended January 31, 2024 2023 2024 2023 202