Skillsoft (SKIL)2024-12-10 21:07Revenue 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]