Slide 1: Investor Presentation
INVESTOR PRESENTATION APRIL 2021
Slide 2: Disclaimer
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)
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: Vision
Introduction Strategy Finance Q&A VISION ‘To be the most highly valued provider of learning solutions, preparing the workforce of today with the skills for tomorrow.’ 4
Slide 5: Skillsoft by the Numbers
SKILLSOFT BY THE NUMBERS KEY METRICS: FY2023 OUTLOOK: 75%+ $808M OF FORTUNE 1000(1) BOOKINGS(3) 90M+ ~$167M COMMUNITY OF ADJUSTED EBITDA(4), (5) LEARNERS(2) 200K+ CONTENT ASSETS Notes: (1) Based on sample of customers who have purchased training from Skillsoft or Global Knowledge in the most recent
Slide 6: 4Q and FY2022 Highlights
4Q AND FY2022 HIGHLIGHTS $721M $698M $167M • Entered three new strategic alliances: Udemy, GetAbstract and GoodHabitz Total Bookings Adjusted Revenue(1) Adjusted EBITDA(1) • Advanced platform migration: 89% of FY22 Content ARR on Percipio or Dual 7% 104% 24% Deployment YoY Growth Percipio / Dual Mar
Slide 7: FY2023 Outlook
FY2023 OUTLOOK $M LOW HIGH BOOKINGS $790 - $825 ADJUSTED REVENUE(1) $765 - $790 ADJUSTED EBITDA(1) ~$167 Expect at least low double digit FY2024 Adjusted EBITDA growth Note: (1) Adjusted Revenue and Adjusted EBITDA are non-GAAP financial measures. The Company is unable to reconcile forward looking n
Slide 8: Large and Growing Market
LARGE AND GROWING MARKET LARGE MARKET GROWING MARKET STRONG SECULAR GROWTH DRIVERS TOTAL ADDRESSABLE MARKET • Growing skills gap GLOBAL PROFESSIONAL ELEARNING(1) Global Professional eLearning TAM(3) $28B+ • C-Suite focus on workforce development and upskilling +10% p.a. GLOBAL PROFESSIONAL LEARNING(
Slide 9: Fragmented Market Space
FRAGMENTED MARKET SPACE >~$700M CORPORATE DIGITAL LEARNING REVENUE <~$700M 9
Slide 10: An Inspiring Direction That Builds on Our Strengths
AN INSPIRING DIRECTION THAT BUILDS ON OUR STRENGTHS ‘To be the most highly valued provider of learning solutions, preparing the OUR VISION workforce of today with the skills for tomorrow.’ WHERE WE PLAY We upskill the global workforce across …by providing engaging three core segments… digital learni
Slide 11: Where We Play
WHERE WE PLAY UPSKILLING THE GLOBAL WORKFORCE ACROSS THREE SEGMENTS LEADERSHIP & TECHNOLOGY & COMPLIANCE BUSINESS SKILLS DEVELOPER CUSTOMER Enable leaders and Stay ahead of rapid technology Foster a sustainable, safe, VALUE organizations changes respectful, inclusive PROPOSITION to thrive in a digit
Slide 12: How We Win: Content
HOW WE WIN: CONTENT BREADTH OF OUR OFFERING WILL DRIVE GROWTH 20 • Important reason we win with customers PERCENTAGE POINTS HIGHER LEADERSHIP & BUSINESS SKILLS DOLLAR • Supports learners with a unified RETENTION platform, consistent pedagogy RATE(1) AMONG and more complete learning CUSTOMERS PURCHAS
Slide 13: How We Win: Content
HOW WE WIN: CONTENT OUR CONTENT CREATES UNIQUE CROSS-SELL OPPORTUNITIES Growing Share of Skillsoft Content Customers Buying 2-3 Products(1) Annual Recurring Revenue Distribution by Number of Products Purchased 100% 1 Product Category Cross-Sell Opportunities 75% % of Total ARR 2 Products 50% 25% 3 P
Slide 14: How We Win: Content
HOW WE WIN: CONTENT OUR CONTENT ENABLES COMPELLING LEARNING JOURNEYS A COMPLETE . . .WITH ORIGINAL AND A PROVEN . . .THAT DELIVERS REAL- LEARNING SOLUTION. . . CURRENT CONTENT LEARNING MODEL. . . WORLD RESULTS 200K+ 90% 80% Content assets Of consumption based on Apply what they have learned(1) propr
Slide 15: How We Win: Platform
HOW WE WIN: PLATFORM PERCIPIO PLATFORM DELIVERS ENGAGING EXPERIENCES ~3,500 COMPANIES LIVE ON PLATFORM 4x MORE LEARNING HOURS(1) 22M+ BADGES ISSUED THE PERCIPIO PLATFORM WHY CUSTOMERS CHOOSE PERCIPIO • Learner focused • Easy interface • Skill-based learning paths • Better engagement 104% PERCIPIO CO
Slide 16: How We Win: Go-to-Market
HOW WE WIN: GO-TO-MARKET AN UNRIVALED ENTERPRISE SALES CAPABILITY 75+% 90M+ ~700 160+ OF FORTUNE 1000(1) COMMUNITY OF GO-TO-MARKET COUNTRIES LEARNERS ORGANIZATION WORLDWIDE(3) WORLDWIDE(2) Notes: (1) Based on sample of customers who have purchased training from Skillsoft or Global Knowledge in the m
Slide 17: Strong Platform for Accretive M&A
STRONG PLATFORM FOR ACCRETIVE M&A: BRINGING BEST IN CLASS CAPABILITIES THROUGH PARTNERSHIP AND ACQUISITION CRITERIA ACQUIRER OF CHOICE CONTENT PLATFORM GO-TO-MARKET Complete Portfolio in Enhance Capabilities Extend Reach and High Demand Areas and Learner Experience Leverage Existing Base LARGE PERCI
Slide 18: Codecademy Acquisition
+ CODECADEMY ACQUISITION: CREATING A LEADER IN TECH & DEV Extending Our Content Offering Across Critical Technologies Enhancing The Percipio Platform With New Learning Capabilities Broadening Our Reach Creating Significant Cross-Sell Opportunities Positioning Skillsoft For Faster Growth 18
Slide 19: Extending Our Content Offering
+ EXTENDING OUR CONTENT OFFERING STRENGTHS IN SEGMENTS THAT ACCOUNT FOR MAJORITY OF TECH & DEV MARKET CLOUD SECURITY DATA PROGRAMMING • Cloud • Pen Testing • Data Science • DevOps + Transformation • Artificial Intelligence • Full Stack • Hybrid/Multi-cloud • Incident Response + Machine Learning • Da
Slide 20: Enhancing the Percipio Platform
+ ENHANCING THE PERCIPIO PLATFORM A NEW WAY OF LEARNING THE MOST CRITICAL TECHNOLOGY SKILLS LEARN APPLY COLLABORATE HANDS-ON PRACTICE LABS | MICRO-LEARNING COURSES LIVESTREAMS | INSTRUCTOR-LED TRAINING LOCAL, LIVE SUPPORT 20
Slide 21: Broadening Our Reach
+ BROADENING OUR REACH NEARLY DOUBLES REGISTERED LEARNERS | COMPLEMENTARY CUSTOMER BASES SKILLSOFT CODECADEMY COMBINED COMMUNITY OF LEARNERS(1) 50M+ + 40M+ = 90M+ B2B CUSTOMERS 12k+ + ~660 = ~13k B2C CUSTOMERS NM + ~179k = ~179k SALES ORGANIZATION(2) 700+ + <10 = 700+ Note: (1) Skillsoft represents
Slide 22: Creating Cross-Sell Opportunities
+ CREATING CROSS-SELL OPPORTUNITIES COMPLEMENTARY CONTENT AND GO-TO-MARKET CAPABILITIES • 700+ person B2B go-to-market • Established digital selling motion organization CHANNEL • 12k+ customers, including 75% of • 40M+ registered learners, and over Fortune 1000 250k organic B2C sign-ups per month •
Slide 23: Positioning Skillsoft for Faster Growth
+ POSITIONING SKILLSOFT FOR FASTER GROWTH IMMEDIATELY ACCRETIVE TO SKILLSOFT REVENUE AND BOOKINGS GROWTH TOTAL PAYING USERS 190K 135K 86K 46K Rapid, high margin and sustainable growth 2018 2019 2020 2021 BOOKINGS $47M $38M Gross Margin Paying User Growth(1) $23M $8M 2018 2019 2020 2021 REVENUE $42M
Slide 24: A Unique Opportunity for Shareholder Value Creation
A UNIQUE OPPORTUNITY FOR SHAREHOLDER VALUE CREATION WELL-PLACED TO DELIVER ON A BOLD VISION FOR THE FUTURE ON A GROWTH • Well-positioned to TRAJECTORY extend global category leadership • New leadership team with • Platform for organic ATTRACTIVE clear strategic direction and acquired BUSINESS growth
Slide 25: Attractive Financial Profile
ATTRACTIVE FINANCIAL PROFILE #1 Positioned for profitable growth #2 High level of subscription renewal #3 Operating leverage #4 High cash flow conversion 25
Slide 26: Positioned for Growth
POSITIONED FOR GROWTH PERCIPIO MIGRATION SUPPORTS IMPROVED REVENUE RETENTION AND MORE NEW BUSINESS PERCIPIO VS. LEGACY PLATFORM SKILLPORT PERFORMANCE COMPARISON ($ in millions) $327 $317 $321 11% ~25% 55% ~55% ~89% on Annual Recurring ~75% on Percipio Percipio Revenue ~51% or Dual or Dual Deploy- (E
Slide 27: Attractive Financial Profile
ATTRACTIVE FINANCIAL PROFILE HIGH SUBSCRIPTION REVENUE WITH STRONG PREDICTABILITY FY2022A(1) 10% • Subscriptions provide visibility and predictability SKILLSOFT 90% • Skillsoft Content 90%+ subscription revenue 5% GLOBAL • Recurring contracts with Fortune 1000 customers KNOWLEDGE 95% ~ • Global Know
Slide 28: High Cash Flow Conversion
HIGH CASH FLOW CONVERSION PROVIDES FINANCIAL FLEXIBILITY AND SUPPORTS REINVESTMENT ILLUSTRATIVE RUN RATE FREE CASH FLOW BRIDGE(1) • ~60 – 65%% cash conversion supports (Items shown as % of Adjusted EBITDA) growth investment 100% 100% • Low capital expenditure requirements 90% (~3% of revenue) 80% 70
Slide 29: Skillsoft
skillsoft®
Slide 30: Appendix
APPENDIX skillsoft®
Slide 31: FY22 to FY23E Adjusted EBITDA Bridge
FY22 TO FY23E ADJUSTED EBITDA BRIDGE ($M) ~ (7%) ~ 17% $177 ~(10%) ~ (6%) $167 ~ 10% $167 ~(4%) FY22 Adj. Impact of Growth Merit and Medical Public Planned Cost FY23E Impact of FY23E EBITDA Revenue Investment(1) Increases, Covid Company Savings Adj. EBITDA Codecademy, Adj. EBITDA(2) Growth Subsidies
Slide 32: Capital Structure Overview
CAPITAL STRUCTURE OVERVIEW CAPITAL STRUCTURE DEBT TERMS ($M) ($M) TOTAL DEBT(1) $651 TERM LOAN B FACILITY $640 CASH(1) $70 MATURITY 2028 NET DEBT $581 PRICING 6.00% (0.75% SOFR floor + 525bps) 102 hard call premium through 7/16/22 DEBT / PRO FORMA FY2022 ADJ. EBITDA(2), (3) (GROSS / NET) 4.4X/3.9X P
Slide 33: Financial Overview
FINANCIAL OVERVIEW ($M) FY2020A(1) FY2021A(1) FY2022A(1) FY2023E(1), (2) Skillsoft Bookings (Order Intake): Content(3), (5) $347 $334 $349 SumTotal(5) 138 124 123 Total Skillsoft Bookings (Order Intake) $485 $458 $471 Global Knowledge Bookings (Order Intake): Classroom and All Other $175 $65 $45 Vir
Slide 34: Key Performance Metrics
KEY PERFORMANCE METRICS ($M) FY2020A FY2021A FY2022A Total Q1A Q2A Q3A Q4A Total Q1A Q2A Q3A Q4A Total Skillsoft Content Bookings: Percipio $32 $10 $10 $11 $32 $64 $17 $15 $18 $56 $106 Dual Deployment & Coaching 116 13 27 36 98 174 10 32 54 89 185 Skillport 185 14 18 22 27 81 9 13 2 15 39 Total Skil
Slide 35: Historical Quarterly Financial Performance
HISTORICAL QUARTERLY FINANCIAL PERFORMANCE ($M) COMMENTARY FY2020A (2) FY2021A (2) FY2022A (2) • Finished at or above upper Total Q1A Q2A Q3A Q4A Total Q1A Q2A Q3A Q4 Total end of raised FY22 guidance Skillsoft Bookings: ranges for Bookings and Content $347 $39 $59 $74 $164 $334 $39 $64 $78 $168 $34
Slide 36: 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 Warrants) (1) • Includes 17.25M founder shares • Includes 28.5M s
Slide 37: Reconciliation of Non-GAAP Financial Measures: Three Months Ended January 31, 2022
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE MONTHS ENDED JANAURY 31, 2022 $ millions For the Three Months Ended January 31, 2022 Non-GAAP Revenue Skillsoft Corp. Adjustments (1) Combined Revenues: Total revenues $ 166 $ 10 $ 176 Operating expenses - - - Cost of revenues 50 10 60 Content and
Slide 38: 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 6/12/21 to 1/31/22 Revenue 6/11/21 (1) Global Knowledge Skillso
Slide 39: Reconciliation of Non-GAAP Financial Measures: Three Months Ended January 31, 2021
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: THREE MONTHS ENDED JANUARY 31, 2021 $ millions For the Three Months Ended January 31, 2021 Non-GAAP Predecessor Revenue (SLH) Global Knoledge Adjustments (1) Combined Revenues: Total revenues $ 72 $ 47 $ 55 $ 174 Operating expenses - - - - Cost of reven
Slide 40: 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 41: 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
Slide 42: Supported by Prosus Strategic Investment
SUPPORTED BY PROSUS STRATEGIC INVESTMENT COMPANY OVERVIEW INVESTMENT PHILOSOPHY FOCUSED ACTIVE LONG-TERM FOCUS A global consumer Building leading Listed on Euronext internet group and companies in high Amsterdam Thematic, sector- More than funding. Partnering with one of the largest growth sectors.
Slide 43: Jeff Tarr: A Proven Leader
JEFF TARR A PROVEN LEADER EXECUTION EXPERIENCE BOARD EXPERIENCE Meaningfully Grew DigitalGlobe’s Business History of Creating Value for Shareholders (Digital Globe’s revenue over tenure; $ in M) (IHS’s revenue over tenure; $ in M) • Former CEO of DigitalGlobe $900 and Hoover’s CAGR 18% $1075 CAGR 18
Slide 44: World-Class Leadership Team
WORLD-CLASS LEADERSHIP TEAM Michelle Gary W. Ferrera Sara Hilty Kristi Hummel Boockoff-Bajdek Chief Financial Chief Legal Chief People Chief Marketing Officer Officer Officer Officer Apratim Zach Sims Rich Walker Mark Onisk Chief Executive Eric Stine Chief Strategy and Corporate Purakayastha Chief C