Slide 1: Earnings Supplement Q1 FY2024
Earnings Supplement Q1 FY2024 June 6, 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 • Q1 FY2024 Financial Results IRO • Q&A • Closing Remarks Webcast Details Webcast Link: https://event.choruscall.com/mediaframe/webcast.html? webcastid=jhqldZEs Audio Dial-in:
Slide 4: Skillsoft delivered a strong start to the fiscal year with near double-digit Bookings growth
“ Skillsoft delivered a strong start to the fiscal year with near double-digit Bookings growth in our Content & Platform segment on a constant currency basis, highlighting the value of our transformative learning solutions. The strength in this high margin, SaaS- based segment contributed to expande
Slide 5: Q1 FY24 Business Highlights
Q1 FY24 Business Highlights • LTM Content & Platform Dollar Retention Rate1 was approximately 101% in the quarter, up from approximately 98% in the year-ago period. Quarterly Content & Platform Dollar Retention Rate was approximately 108%, up from approximately 101% in the year-ago period. • Launche
Slide 6: Q1 FY2024 Financial Highlights
Q1 FY2024 Financial Highlights A strong start to the year with near double-digit Bookings growth in our Content & Platform segment, record high Dollar Retention Rates, and expanded Adjusted EBITDA margins Content & LTM Dollar Platform Segment Adjusted EBITDA Bookings Retention Rate $64.5M 101% $21.6
Slide 7: Bookings
Bookings Accelerating Bookings growth in our SaaS-based Content & Platform segment Content & Platform Instructor-Led Training +9% • Content & Platform segment $64.5 Bookings of $65M, reflecting YoY growth of 9% for the quarter and 3% on an LTM basis $60.1 $55.7 • Instructor-Led Training segment -18%
Slide 8: Revenue
Revenue Leading a shift to a higher recurring revenue mix with growth in our Content & Platform segment Content & Platform Instructor-Led Training • Content & Platform segment Revenue of $99M, reflecting YoY +2% growth of 2% $97.8 $98.6 • Instructor-Led Training segment Revenue of $37M, down 14% YoY
Slide 9: Profitability and Cash Flow
Profitability Demonstrating effective stewardship of our capital and resources to drive higher profitability and cash flow and Cash Flow Non-GAAP OpEx Adjusted EBITDA • Non-GAAP Operating Expenses of -6% $123.2 $114M, favorably down 6% YoY $113.9 G&A • Adjusted EBITDA of $22M, up 13% +13% YoY $21.6
Slide 10: Reaffirming FY2024 Financial Outlook Metrics
Reaffirming FY2024 Financial Outlook Metrics Bookings ($Ms)1 Revenue ($Ms)1 Adjusted EBITDA ($Ms)1 +0% to -1% +5% to +4% $640 $585 -2% to +3% $563 $610 $607 $555 $105 $102 $100 FY23 FY24G FY23 FY24G FY23 FY24G 1 FY24 outlook initially provided in April 6, 2023 earnings release, and reaffirmed in Jun
Slide 11: Appendix
skillsoft® Appendix
Slide 12: 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 13: Reconciliation of Non-GAAP Financial Measures
SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Reconciliation (in thousands, unaudited) Three Months Ended Three Months Ended of Non-GAAP Revenues: Revenues, as reported $ April 30, 2023 135,554 $ April 30, 2022 134,838 Financial Net income (loss), as reported Income from discontinued
Slide 14: Reconciliation of Non-GAAP Financial Measures
SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued (in thousands, unaudited) Three Months Ended April 30, 2023 2022 Reconciliation Operating expenses: GAAP costs of revenues Depreciation $ 37,824 (151) $ 38,009 (474) of Non-GAAP Stock-based compensation (97) (13) Codecademy Pr
Slide 15: Reconciliation of Non-GAAP Financial Measures - Pro Forma Revenue
Reconciliation of Non-GAAP Financial Measures SKILLSOFT CORP. PRO FORMA REVENUE (IN THOUSANDS) Three Months Ended April 30, 2023 2022 Revenue, as reported: $ 135,554 $ 134,838 Pro Forma adjustments: Revenue from acquisitions (1) - 8,058 Pro Forma Revenue (2) $ 135,554 $ 142,896 (1) Revenue from acqu
Slide 16: Reconciliation of Non-GAAP Financial Measures - Pro Forma Adjusted Net Income
Reconciliation of Non-GAAP Financial Measures SKILLSOFT CORP. PRO FORMA ADJUSTED NET INCOME (LOSS) (IN THOUSANDS) Three Months Ended April 30, 2023 2022 (1) Adjusted net income (loss) from continuing operations $ (30,053) $ (7,343) Pro Forma adjustments: Adjusted net income (loss) from acquisitions
Slide 17: Reconciliation of Non-GAAP Financial Measures - Pro Forma Adjusted EBITDA and Free Cash Flow
Reconciliation of Non-GAAP Financial Measures SKILLSOFT CORP. PRO FORMA ADJUSTED EBITDA AND FREE CASH FLOW (IN THOUSANDS) Three Months Ended April 30, 2023 2022 Pro Forma Adjusted EBITDA Adjusted EBITDA from continuing operations (1) $ 21,628 $ 24,065 Pro Forma adjustments: Adjusted EBITDA from acqu