Skillsoft (US:SKIL)2024-12-11 00:34Financial 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]