Skillsoft Reports Q3 Fiscal 2024 Results with Revenue Decline and Improved Net Loss

Skillsoft Corp. reported its financial results for the third quarter of fiscal 2024, revealing total revenues of $137.2 million, a slight decrease of 1.2% from $139.0 million in the same period last year. For the nine months ending October 31, 2024, revenues totaled $397.2 million, down 4.4% from $415.7 million in the prior year. The company experienced a net loss of $23.6 million for the quarter, compared to a loss of $27.7 million in the same quarter of the previous year. The loss per share for the third quarter was $2.86, an improvement from $3.45 in the prior year.

The decline in revenue was primarily attributed to weaker demand in the Global Knowledge segment, which saw a 9.5% drop in revenues to $34.2 million, while the Talent Development Solutions segment reported a modest increase of 1.1% to $103.0 million. The company noted that its strategic focus on talent development has begun to yield positive results, although overall revenues in this segment were slightly lower for the nine-month period compared to the previous year. Operating expenses decreased by 7.8% to $146.4 million for the quarter, driven by cost-saving measures implemented as part of a comprehensive resource reallocation plan announced in July 2024.

Skillsoft's customer base remains robust, with approximately 60% of the Fortune 1000 utilizing its services. The company reported a community of over 90 million learners across more than 150 countries. Engagement metrics indicate that the company is successfully addressing critical skills gaps through its diverse learning offerings, which include AI-driven solutions and a wide range of content modalities. The company continues to invest in technology and product development, with a focus on enhancing its AI capabilities and expanding its course offerings.

In terms of financial position, Skillsoft's total assets decreased to $1.05 billion as of October 31, 2024, down from $1.27 billion at the beginning of the fiscal year. Cash and cash equivalents stood at $97.9 million, a decline from $136.3 million at the start of the fiscal year. The company has also restructured its debt, with long-term debt totaling $574.3 million, slightly down from $577.5 million at the beginning of the fiscal year. The company has access to a $75 million accounts receivable facility, of which $10 million was drawn as of the end of the reporting period.

Looking ahead, Skillsoft remains cautiously optimistic about its growth trajectory, emphasizing its commitment to driving operational efficiency and enhancing its product offerings. The company anticipates that the strategic initiatives undertaken will lead to improved financial performance in the coming quarters, although it acknowledges the ongoing challenges in the market. Skillsoft's management continues to focus on leveraging its technology and content to meet evolving customer needs and capitalize on emerging opportunities in the learning and development sector.