Slide 1: Earnings Supplement Q3 FY2024
Earnings Supplement Q3 FY2024 December 5, 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 • Q3 FY2024 Financial Results IRO • Q&A • Closing Remarks Webcast Details Webcast Link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=YeWMc5cU Audio Dial-in: T
Slide 4: Skillsoft delivered another quarter of growth in Content & Platform segment
“ Skillsoft delivered another quarter of growth in our core SaaS-based Content & Platform segment while showing meaningful improvement in Adjusted EBITDA and Free Cash Flow. I am proud of our progress seizing the opportunity represented by generative AI, with innovative new solutions like Skillsoft
Slide 5: Q3 FY24 Business Highlights
Q3 FY24 Business Highlights • LTM Content & Platform Dollar Retention Rate1 was approximately 101% in the quarter, up from approximately 98% in the year-ago period. • Announced the general availability of Skillsoft CAISY™ (Conversation AI Simulator), an innovative AI-powered skills trainer for the e
Slide 6: Q3 FY2024 Financial Highlights
Q3 FY2024 Financial Highlights Delivered another quarter of Bookings and Revenue growth in our SaaS-based Content & Platform segment, complemented by higher retention rates and expanded profitability LTM Content & LTM Dollar Adjusted EBITDA1 Platform Segment Bookings1 Retention Rate1 % of Revenue $4
Slide 7: Bookings
Bookings 1% YoY growth in Content & Platform Bookings offset by 4% contraction in ILT Bookings $131.7 $129.2 $132.6 ▲4% YoY ▼<1% YoY • Total Bookings of $132M, $123.9 $47.8 $46.0 $46.1 $115.8 $108.5 ▼4% YoY reflecting a YoY decline of less $46.5 ▼1% YoY ▼6% YoY $55.7 than 1% $43.9 ▼21% YoY • Content
Slide 8: Revenue
Revenue Revenue roughly flat YoY, with 3% growth in the SaaS- based Content & Platform segment $141.2 $139.0 • Total Revenue of $139M, roughly flat $142.9 $140.6 $135.6 ▲<1% YoY $139.4 ▼<1% YoY YoY ▼5% YoY $45.1 $41.8 $38.0 $41.4 $37.8 $37.0 ▼9% YoY • Content & Platform segment ▼18% YoY ▼9% YoY Inst
Slide 9: Profitability and Cash Flow
Profitability Expanded profitability YoY and QoQ with 21% Adjusted EBITDA margin and Cash Flow • Adjusted EBITDA of $30M was up $2M or 7% YoY $29.8 ▲7% YoY • Adjusted EBITDA margin of 21% $25.4 ▲17% QoQ was up 100 basis points YoY; ▼22% YoY $21.6 ▲18% QoQ 500bps of margin expansion ▲10% YoY since Q1
Slide 10: Appendix
skillsoft® 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) Reconciliation Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended of Non-GAAP October October October October 31, 2023 31, 2022 31, 2023 31, 2022 Revenues, as reported $ 138,956 $ 139,390 $
Slide 13: Reconciliation of Non-GAAP Financial Measures - continued
SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued (in thousands, unaudited) Three Months Ended Nine Months Ended Reconciliation October 31, October 31, 2023 2022 2023 2022 Operating expenses: of Non-GAAP GAAP costs of revenues $ 36,407 $ 36,655 $ 114,698 $ 109,662 Depreciatio
Slide 14: 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 Nine Months Ended Three Months Ended Nine Months Ended October 31, October 31, October 31, October 31, 2023 2022 2023
Slide 15: Reconciliation of Non-GAAP Financial Measures
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 Nine Months Ended Nine Months Ended October October 31, October 31, 31, 2023 2022 2023 2022 2023 2022 Pro forma adjus