Skillsoft (SKIL) - 2024 Q4 - Annual Results

Financial Performance - Content & Platform segment GAAP Revenue for Q4 2024 was $102 million, representing a 4% growth, while total GAAP Revenue declined 2% to $138 million[10]. - GAAP net loss for Q4 2024 was $245 million, compared to a loss of $53 million in the prior year, with a net loss per share of $30.38[10]. - Pro forma Adjusted Net Loss for Q4 2024 was $25 million, an improvement from a loss of $34 million in the prior year, with Adjusted Net Loss per share of $3.09[10]. - Adjusted EBITDA for Q4 2024 was $28 million, reflecting a margin of 21% of GAAP Revenue, up from $22 million and a margin of 16% in the prior year[10]. - Full-year GAAP Revenue for FY 2024 was approximately flat at $553 million, with Content & Platform segment revenue growing 5%[11]. - Total revenues for the three months ended January 31, 2024, were $137,540 thousand, a decrease of 1.3% from $140,321 thousand for the same period in 2023[41]. - Net loss for the three months ended January 31, 2024, was $(245,326) thousand, compared to a net loss of $(53,479) thousand for the same period in 2023[41]. - For the year ended January 31, 2024, Skillsoft reported a net loss of $349.3 million, an improvement from a net loss of $725.0 million for the year ended January 31, 2023[62]. Cash Flow and Liquidity - The company ended Q4 2024 with $136 million in cash and cash equivalents[10]. - Cash and cash equivalents decreased from $170.4 million as of January 31, 2023, to $136.3 million as of January 31, 2024, a reduction of about 20%[62]. - The company reported a free cash flow of $2.8 million for the year ended January 31, 2024, compared to a negative cash flow of $20.9 million for the previous year[62]. - Free cash flow for the three months ended January 31, 2024, was $5,404 thousand, an increase from $715 thousand in the same period of 2023[73]. - Net cash provided by operating activities for the three months ended January 31, 2024, was $11,499 thousand, compared to $2,628 thousand in the same period of 2023[73]. Operating Expenses - GAAP costs of revenues for the three months ended January 31, 2024, were $38,459 thousand, a decrease from $42,353 thousand for the same period in 2023, representing a decline of approximately 4.4%[32]. - Non-GAAP operating expenses for the year ended January 31, 2024, were $448,162 thousand, down from $461,017 thousand in the previous year, indicating a reduction of about 2.8%[32]. - Total GAAP operating expenses for the three months ended January 31, 2024, were $119,334 thousand, compared to $131,643 thousand for the same period in 2023, reflecting a decrease of approximately 9.3%[32]. - Operating expenses for the three months ended January 31, 2024, totaled $365,603 thousand, significantly higher than $179,722 thousand for the same period in 2023[41]. - The company incurred acquisition and integration-related costs of $2,225 thousand for the three months ended January 31, 2024, down from $4,010 thousand for the same period in 2023[41]. Asset and Equity Changes - The total assets decreased from $1.64 billion as of January 31, 2023, to $1.27 billion as of January 31, 2024, reflecting a decline of approximately 22.8%[53]. - The total shareholders' equity decreased from $531.8 million as of January 31, 2023, to $205.6 million as of January 31, 2024, a decline of approximately 61.3%[53]. - Total current liabilities decreased from $425.1 million as of January 31, 2023, to $413.2 million as of January 31, 2024, a decrease of approximately 2.2%[53]. Strategic Initiatives and Future Outlook - The company is focused on transforming its operations through strategic initiatives, including system migrations and new product developments, to enhance overall performance[29]. - Future outlook includes continued investment in AI-enabled platforms and partnerships to address skills gaps in the workforce, aiming for sustained growth[29]. - The company anticipates further reductions in operating expenses as part of its ongoing transformation strategy[29]. - The company anticipates future growth driven by new product development and market expansion strategies, although specific financial guidance was not provided[56]. Impairment and Adjusted Metrics - Impairment of goodwill and intangible assets was $202,233 thousand for the three months ended January 31, 2024, with no impairment recorded in the same period of 2023[41]. - The company recorded an impairment of goodwill and intangible assets amounting to $202.2 million for the year ended January 31, 2024, compared to $641.4 million for the previous year[62]. - Adjusted EBITDA from continuing operations for the year ended January 31, 2024, was $105,075 thousand, slightly down from $106,550 thousand for the year ended January 31, 2023[70]. - Pro forma adjusted EBITDA for the three months ended January 31, 2024, was $28,258 thousand, representing 21% of pro forma revenue, up from 16% in the same period of 2023[70]. - Adjusted net income from continuing operations for the three months ended January 31, 2024, was $(24,966) thousand, compared to $(34,203) thousand for the same period in 2023[68].