Slide 1: Q2 FY2023 Earnings Supplement
Q2 FY2023 EARNINGS SUPPLEMENT SEPTEMBER 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: Q2 FY2023 Highlights
Q2 FY2023 HIGHLIGHTS • Board of Directors authorized up to $30 million share repurchase $148M 5% $33M • Closed SumTotal sale post Q2 close on Adjusted Revenue(1) Content Bookings Aug 15th Y/Y Pro Forma Adjusted EBITDA(1) Growth (2) • Integrated Codecademy content into 98% 9% 22% Percipio LTM Dollar
Slide 5: FY2023 Outlook
FY2023 OUTLOOK • Revised outlook ranges reflect the sale of SumTotal, foreign exchange, lower fundamentals due to the performance of our transactional Global Knowledge business, and some macro- economic uncertainty. Foreign Previous SumTotal Exchange Lower Updated ($M) Outlook Impact Impact Fundamen
Slide 6: 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 Q2A Content Bookings $347 $39 $59 $74 $164 $334 $39 $64 $78 $168 $349 $51 $77 GK/ILT Bookings 291 57 49 55 53 214 65 64 62 60 250 56 $46 Total Bookings $638 $96 $107
Slide 7: Historical Quarterly Financial Performance (Proforma with Codecademy)
HISTORICAL QUARTERLY FINANCIAL PERFORMANCE PROFORMA VALUES WITH CODECADEMY IN ALL YEARS STARTING APRIL 5TH ($M) FY2020A FY2021A FY2022A FY2023A Total Q1A Q2A Q3A Q4A Total Q1A Q2A Q3A Q4A Total Q1A Q2A Content Bookings $368 $41 $69 $84 $175 $369 $42 $75 $91 $182 $389 $51 $77 GK/ILT Bookings 291 57 4
Slide 8: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW CAPITAL STRUCTURE DEBT TERMS ($M) ($M) AS OF Q2 POST SALE OF FY2023 (7/31/2022) SUMTOTAL (3) (8/15/2022) TERM LOAN B FACILITY $640 TOTAL DEBT(1) $657 $626 MATURITY 2028 CASH $43 $187 PRICING SOFR + 525bps (0.75% SOFR floor) NET DEBT(1) $614 $439 PREPAYMENT 101 soft call fr
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 July 31, 2022
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE MONTHS ENDED JULY 31, 2022 For the Three Months Ended July 31, 2022 Non-GAAP (IN THOUSANDS) Revenue (1) Skillsoft Corp. Adjustments Combined Revenues: Total revenues $ 140,574 $ 7,808 $ 148,382 Operating expenses Cost of revenues 34,998 7,808 42,8
Slide 12: Reconciliation of Non-GAAP Financial Measures: Six Months Ended July 31, 2022
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: SIX MONTHS ENDED JULY 31, 2022 For the Six Months Ended July 31, 2022 (IN THOUSANDS) Non-GAAP Revenue Skillsoft Corp. Adjustments (1) Combined Revenues: Total revenues $ 275,413 $ 14,139 $ 289,552 Operating expenses Cost of revenues 73,008 14,139 87,147
Slide 13: Reconciliation of Non-GAAP Financial Measures: Three Months Ended July 31, 2021
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE MONTHS ENDED JULY 31, 2021 For the Three Months Ended July 31, 2021 (IN THOUSANDS) For the Period from For the Period from Period from 6/12/21 to 5/1/21 to 6/11/21 5/1/21 to 6/11/21 7/31/21 Non-GAAP Global Revenue Knowledge Skillsoft Skillsoft (1)
Slide 14: Reconciliation of Non-GAAP Financial Measures: Six Months Ended July 31, 2021
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: SIX MONTHS ENDED JULY 31, 2021 For the For the For the Six Months Ended July 31, 2021 For the (IN THOUSANDS) Period from 2/1/21 to 6/11/21 Period from 2/1/21 to 6/11/21 Period from 6/12/21 to Non-GAAP Global Revenue Knowledge Skillsoft Skillsoft (1) Adj