Revenue Performance - Total revenue for fiscal 2025 was $531 million, a decrease of 4% compared to $553 million in the prior year[8]. - Talent Development Solutions revenue was $406 million, flat compared to the prior year, while Global Knowledge revenue decreased by 15% to $125 million from $148 million[8]. - Total revenues for the three months ended January 31, 2025, were $133.8 million, a decrease of 2% from $137.5 million in the same period of 2024[26]. - For the twelve months ended January 31, 2025, the total revenues reported were $530,994, a decrease of 4% from $553,237 in 2024[30]. Profitability and Loss - GAAP net loss for fiscal 2025 was $122 million, significantly improved from a net loss of $349 million in the prior year, resulting in a GAAP net loss per share of $14.87 compared to $43.38[8]. - Operating loss for the twelve months ended January 31, 2025, was $69.6 million, compared to a loss of $308.6 million for the twelve months ended January 31, 2024[26]. - Net loss for the three months ended January 31, 2025, was $31.1 million, compared to a net loss of $245.3 million for the same period in 2024[26]. - The net loss for the twelve months ended January 31, 2025, was $121,908, significantly improved from a net loss of $349,285 in 2024[30]. Cash Flow and Liquidity - Free cash flow for fiscal 2025 was positive at $12 million, compared to negative free cash flow of $15 million in the prior year[8]. - Cash flows from operating activities for the twelve months ended January 31, 2025, provided $29,965, a significant increase from $2,818 in 2024[28]. - Free cash flow for the three months ended January 31, 2025, was $13,221, compared to $5,404 in the same period of 2024, reflecting an increase of approximately 144.5%[35]. - Adjusted free cash flow (levered) for the twelve months ended January 31, 2025, was $33,135, a significant increase from $2,668 in 2024[35]. Expenses and Cost Management - Adjusted EBITDA for fiscal 2025 was $109 million, reflecting a margin of 21% of revenue, up from $105 million and a margin of 19% in the prior year[8]. - Operating expenses for the three months ended January 31, 2025, totaled $151.0 million, significantly lower than $365.6 million for the same period in 2024[26]. - The total costs of revenues and content and software development expenses for the Talent Development Solutions segment were $29,662 for the three months ended January 31, 2025, down from $33,729 in 2024, a decrease of about 12.3%[33]. - The total GAAP costs of revenues for the twelve months ended January 31, 2025, were $134,879, a decrease from $153,157 in 2024, reflecting a reduction of approximately 11.9%[32]. Assets and Equity - Total current assets decreased to $332.9 million as of January 31, 2025, from $385.3 million as of January 31, 2024, representing a decline of approximately 13.6%[24]. - Total assets decreased to $1.1 billion as of January 31, 2025, down from $1.3 billion as of January 31, 2024, reflecting a reduction of about 13.1%[24]. - Shareholders' equity decreased to $93.8 million as of January 31, 2025, compared to $205.6 million as of January 31, 2024, indicating a decline of approximately 54.5%[24]. - Cash and cash equivalents were $100.8 million as of January 31, 2025, down from $136.3 million as of January 31, 2024, a decrease of about 26%[24]. Future Projections - The company expects fiscal 2026 GAAP revenue to be between $530 million and $545 million, with adjusted EBITDA projected between $112 million and $118 million[9]. - The company reported nearly 1 million launches of its AI simulator, Skillsoft CAISY™, indicating strong early interest from customers[8].

Group 1 - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors [1] - The investor has over 50 companies on their watchlist and has been investing personal capital for over 7 years globally [1] - The investor holds a Master's degree in Electrical Engineering and works as an automotive battery R&D engineer in Sweden [1] Group 2 - The investor aims to identify asymmetric investment opportunities to achieve market-beating returns through diligent research of small to mid-cap companies [1]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $137 million, down approximately $2 million or 1% year-over-year [27] - Adjusted EBITDA was $32 million or 23% of revenue, up $2 million compared to the previous year [29] - GAAP net loss was $24 million, an improvement from a net loss of $28 million in the prior year [30] - Positive free cash flow of $4 million was achieved in Q3, marking a significant improvement [32] Business Line Data and Key Metrics Changes - Talent Development Solutions (TDS) revenue was $103 million, up 2% year-over-year, driven by a shift towards talent development [22] - Global Knowledge (GK) revenue was $34 million, down 10% year-over-year, but showed sequential improvement with a decline reduced from 20% to 10% [25][18] Market Data and Key Metrics Changes - The LTM dollar retention rate for TDS remained flat at 98%, down from approximately 101% in Q3 of the previous year [23] - The decline in retention was attributed to softness in coaching and compliance product offerings [24] Company Strategy and Development Direction - The company is focused on a transformation strategy that includes fixing operational basics and investing for growth [7] - Near-term commitments include achieving $45 million in annualized expense reductions and returning to top-line growth in fiscal year 2026 [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made during the quarter and the positive early results from the new business unit structure [10] - The company is optimistic about generating positive free cash flow for the full fiscal year 2026 [9] Other Important Information - The company has implemented a new integrated compliance platform, resulting in a 48% increase in net promoter score [16] - The company has successfully renegotiated terms of its $75 million accounts receivable facility, extending its maturity to FY 2029 [35] Q&A Session Summary Question: On GK stabilization and proof points - Management noted that there were multiple small successes in the GK business, including recognition as Partner of the Year from several organizations [45] Question: Additional headwinds for coaching and compliance - Management acknowledged the challenges in coaching and compliance but emphasized the transition to a subscription model to improve customer utilization [49][50]

Financial Performance - Total revenues for the three months ended October 31, 2024, were $137.225 million, a decrease of 1.2% compared to $138.956 million for the same period in 2023[146]. - SaaS subscription revenues for Talent Development Solutions increased by 1.1% to $97.123 million for the three months ended October 31, 2024, compared to $96.085 million in 2023[146]. - Non-subscription revenues decreased by 6.5% to $40.102 million for the three months ended October 31, 2024, compared to $42.871 million in 2023[146]. - The Global Knowledge segment's revenues decreased by 9.5% to $34.227 million for the three months ended October 31, 2024, compared to $37.824 million in 2023[146]. - The Talent Development Solutions segment's revenues for the nine months ended October 31, 2024, decreased by 0.7% to $285.927 million compared to $287.936 million in 2023[146]. Operating Expenses - Operating expenses as a percentage of total revenues decreased from 114.4% in the three months ended October 31, 2023, to 106.8% in the same period of 2024[139]. - Total operating expenses decreased by $12,425, or 7.8%, for the three months ended October 31, 2024, compared to the same period in 2023[150]. - Content and software development expenses decreased by $1,189, or 7.4%, for the three months ended October 31, 2024, compared to the same period in 2023[152]. - Selling and marketing expenses decreased by $4,368, or 9.9%, for the three months ended October 31, 2024, compared to the same period in 2023[154]. - Total cost of revenues decreased by $2,095, or 5.8%, for the three months ended October 31, 2024, compared to the same period in 2023[151]. - Compensation and benefits in content and software development decreased by $2,876, or 7.6%, for the nine months ended October 31, 2024, compared to the same period in 2023[152]. - Advertising and promotions in selling and marketing decreased by $2,274, or 30.0%, for the three months ended October 31, 2024, compared to the same period in 2023[154]. - Facilities and utilities expenses in content and software development decreased by $270, or 8.6%, for the nine months ended October 31, 2024, compared to the same period in 2023[151]. - The comprehensive resource reallocation plan contributed to the decreases in various expense categories[152]. Resource Allocation and Investments - The company announced a resource reallocation plan expected to result in more than $45 million of annualized cost savings, with plans to reinvest up to half in strategic growth initiatives[148]. - The company is investing in technology, which has led to increased software maintenance costs despite overall expense reductions[152]. - Cash flows from investing activities included $13.0 million for internally developed software in the nine months ended October 31, 2024, compared to $8.1 million in the same period of 2023[180]. - The company invested significantly in internally developed software, with cash payments increasing from $8.1 million in 2023 to $13.0 million in 2024[180]. Cash and Financing - As of October 31, 2024, the company had $97.9 million in cash and cash equivalents[168]. - The company has access to up to $75.0 million of borrowings under its accounts receivable facility, with $10.0 million drawn as of October 31, 2024[175]. - Net cash provided by operating activities for the nine months ended October 31, 2024 was $12.2 million, compared to a cash used of $8.7 million in the same period of 2023[178]. - Cash flows used in financing activities increased primarily due to payments on the accounts receivable facility, totaling $40.8 million for the nine months ended October 31, 2024[183]. Shareholder Actions - The Board of Directors authorized a share repurchase of up to $10 million for Class A common stock, effective from July 11, 2024[176]. - The company has not yet repurchased any shares under the authorized share repurchase program as of October 31, 2024[176]. Tax and Income - The effective income tax rate for the nine months ended October 31, 2024, was impacted by non-deductible items and changes in the valuation allowance on deferred tax assets[167]. - Interest income for the nine months ended October 31, 2024, was $2.897 million, an increase of 12.5% compared to $2.576 million for the same period in 2023[161]. - Other income (expense), net for the three months ended October 31, 2024, was $(538) thousand, a decrease of 2931.6% compared to $31 thousand for the same period in 2023[161]. Restructuring and Charges - Restructuring charges for the three months ended October 31, 2024, totaled $3.1 million, compared to $0.9 million for the same period in 2023[160]. Market and Currency Impact - A hypothetical 100 basis point increase in interest rates would result in approximately $3.0 million additional pre-tax interest expense annually[206]. - A 10% increase in foreign currency exchange rates would have impacted pre-tax income by approximately $3.0 million on an annualized basis[209]. - A hypothetical 100 basis point increase or decrease in interest rates would result in an approximately $0.5 million increase or decrease in interest income on an annualized basis[207]. - A hypothetical 100 basis point increase or decrease in interest rates would result in an approximately $7.0 million increase or decrease in the fair value adjustment of interest rate swaps at a point in time[208]. - A hypothetical 10% increase or decrease in current exchange rates would have resulted in an impact of approximately $3.0 million on pre-tax income (loss) on an annualized basis[209]. Business Overview - The company serves approximately 60% of the Fortune 1000, focusing on leadership, business skills, technology skills, and compliance[134]. - The community of learners has grown to over 90 million in more than 150 countries, learning in over 30 languages[136]. - The company recognized revenue from cloud-based solutions on a straight-line basis over the contract term, typically ranging from one to three years[191]. - The company recorded a gain of $55.9 million from the sale of its SumTotal business, completed on August 15, 2022[166].

Revenue Performance - Total Revenue for Q3 FY2025 was $137 million, a decrease of 1.4% from $139 million in the prior year[3] - Talent Development Solutions Revenue increased by 2% to $103 million compared to the prior year[3] - Total revenues for the three months ended October 31, 2024, were $137,225,000, a decrease of 1.25% from $138,956,000 for the same period in 2023[27] - Total revenues for the nine months ended October 31, 2024, were $397,241 thousand, a decrease of 4.5% compared to $415,697 thousand for the same period in 2023[30] - Talent Development Solutions revenue for the three months ended October 31, 2024, was $102,998 thousand, slightly up from $101,132 thousand for the same period in 2023[30] - Global Knowledge revenue for the three months ended October 31, 2024, decreased to $34,227 thousand from $37,824 thousand in the same period last year, representing a decline of 6.8%[30] Profitability and Loss - Adjusted EBITDA from continuing operations was $32 million, reflecting a margin of 23% of Revenue, up from 21% in the prior year[3] - Net Loss for the quarter was $24 million, an improvement from a net loss of $28 million in the prior year[3] - Net loss for the three months ended October 31, 2024, was $23,599,000, compared to a net loss of $27,736,000 for the same period in 2023, representing a 15.4% improvement[27] - Net income (loss) for the nine months ended October 31, 2024, was $(90,801) thousand, an improvement from $(103,959) thousand for the same period in 2023[30] - Adjusted net income (loss) from continuing operations for the nine months ended October 31, 2024, was $(61,922) thousand, compared to $(82,191) thousand for the same period in 2023[30] - The adjusted net income (loss) margin for the three months ended October 31, 2024, was (10.9)%, an improvement from (16.4)% in the same period last year[30] Cash Flow and Expenses - Skillsoft generated positive free cash flow during the quarter, contributing to improved profitability[5] - Cash provided by operating activities for the nine months ended October 31, 2024, was $12,214 thousand, a significant improvement from $(8,681) thousand for the same period in 2023[28] - Skillsoft generated a free cash flow of $4,084 for the three months ended October 31, 2024, compared to a negative free cash flow of $(13,117) in the same period of 2023[34] - The net cash provided by operating activities for the three months ended October 31, 2024, was $8,717, a significant improvement from $(10,666) in the same period of 2023[34] - Adjusted free cash flow (levered) for the three months ended October 31, 2024, was $14,173, compared to a negative $10,811 in the same period of 2023[34] - The total GAAP operating expenses for the three months ended October 31, 2024, were $110,550, down from $118,824, indicating a reduction of 7.15%[31] Debt and Assets - Gross debt decreased to $591 million, down $35 million from the prior year[3] - Total current assets decreased to $260,134,000 as of October 31, 2024, from $385,331,000 as of January 31, 2024, a decline of 32.5%[26] - Total assets decreased to $1,053,531,000 as of October 31, 2024, from $1,273,634,000 as of January 31, 2024, a reduction of 17.3%[26] - Total current liabilities decreased to $294,001,000 as of October 31, 2024, from $413,228,000 as of January 31, 2024, a decline of 28.8%[26] - Long-term debt remained relatively stable at $574,312,000 as of October 31, 2024, compared to $577,487,000 as of January 31, 2024[26] - The company reported a decrease in cash and cash equivalents to $97,921,000 as of October 31, 2024, down from $136,308,000 as of January 31, 2024, a decline of 28.1%[26] Strategic Initiatives - The company raised its full-year fiscal 2025 revenue guidance to a range of $520 million to $530 million[5] - The company launched several AI-driven tools, including AI Coaching Assistant and AI Learning Assistant, enhancing its learning platform[4] - Skillsoft's Compliance Suite was introduced to help companies develop competencies for risk mitigation[4] - Key customer wins in AI upskilling generated over $8 million from six global companies[4] Restructuring and Costs - The company incurred $3,095,000 in restructuring costs for the three months ended October 31, 2024, compared to $873,000 in the same period of 2023[27] - The company incurred acquisition and integration-related costs of $3,349 thousand for the nine months ended October 31, 2024, compared to $2,838 thousand for the same period in 2023[30]

Core Viewpoint - Skillsoft Corp. (SKIL) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements when estimates are revised [3]. Skillsoft's Earnings Outlook - For the fiscal year ending January 2025, Skillsoft is projected to earn -$9.80 per share, reflecting a 26.4% change from the previous year's reported figure [7]. - Over the past three months, the Zacks Consensus Estimate for Skillsoft has increased by 19%, indicating a positive trend in earnings expectations [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, highlighting Skillsoft's strong position in terms of earnings estimate revisions [8][9].

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" approach, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Fast-moving trending stocks can be difficult to enter at the right time, as they may lose momentum if future growth does not justify their high valuations [2] - A safer strategy involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Skillsoft Corp. (SKIL) Analysis - Skillsoft Corp. (SKIL) has shown a price increase of 18% over the past four weeks, indicating growing investor interest [4] - The stock has gained 4.5% over the past 12 weeks and has a beta of 1.32, suggesting it moves 32% more than the market [5] - SKIL has a Momentum Score of A, indicating a favorable time to invest based on momentum [6] - The stock has a Zacks Rank 2 (Buy) due to upward revisions in earnings estimates, which typically attract more investors [7] - SKIL is trading at a Price-to-Sales ratio of 0.22, meaning investors pay 22 cents for each dollar of sales, indicating a reasonable valuation [7] Group 3: Additional Investment Opportunities - Besides SKIL, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, suggesting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Skillsoft Corp. (NYSE:SKIL) Q2 2025 Earnings Conference Call September 9, 2024 5:00 PM ET Company Participants Stephen Poe - IR Ron Hovsepian - Executive Chair and Principal Executive Officer Richard Walker - CFO Conference Call Participants Ken Wong - Oppenheimer Raj Sharma - B. Riley Securities Operator Thank you for standing by and welcome to Skillsoft’s Second Quarter Fiscal 2025 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ present, there will be ...

Skillsoft Corp. (SKIL) came out with a quarterly loss of $2.40 per share versus the Zacks Consensus Estimate of a loss of $3.06. This compares to loss of $3.60 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 21.57%. A quarter ago, it was expected that this company would post a loss of $4 per share when it actually produced a loss of $3.42, delivering a surprise of 14.50%. Over the last four quarters, the company has surpassed ...

| --- | --- | --- | --- | |--------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Earnings Supplement Q2 FY2025 | | | | | September 9, 2024 | | | | 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, which are int ...