Skillsoft Corp. Files 2024 10-K Report

TL;DR

<b>Skillsoft Corp. filed its 2024 10-K, detailing financial performance and adjustments, including a shift in RSU structure and deferred revenue changes.</b>

AI Summary

Skillsoft Corp. (SKILW) filed a Annual Report (10-K) with the SEC on April 15, 2024. Skillsoft Corp. filed its 10-K report for the fiscal year ending January 31, 2024. The company reported total assets of $562 million and total debt of $221 million. Deferred revenue increased due to the adoption of ASU 2021-08. In May 2023, market-based RSUs were converted to time-based RSUs, increasing stock-based compensation expense by less than $0.1 million per quarter. Measurement period adjustments for preacquisition liabilities did not significantly impact prior periods' results.

Why It Matters

For investors and stakeholders tracking Skillsoft Corp., this filing contains several important signals. The company's financial statements reflect adjustments related to business combinations and accounting standard adoptions, impacting deferred revenue and goodwill. Changes in equity awards, specifically the conversion of market-based RSUs to time-based RSUs, have a modest, ongoing impact on stock-based compensation expenses.

Risk Assessment

Risk Level: medium — Skillsoft Corp. shows moderate risk based on this filing. The company's financial health is subject to market conditions and the successful integration of past acquisitions, as indicated by the adjustments to goodwill and preacquisition liabilities.

Analyst Insight

Monitor Skillsoft's ability to leverage its deferred revenue and manage stock-based compensation expenses effectively in the upcoming fiscal year.

Financial Highlights

revenue

8,380,436

total Assets

562,000,000

total Debt

221,000,000

revenue Growth

3.67%

Key Numbers

• 562,000,000 — Total Assets (As of January 31, 2024)
• 221,000,000 — Total Debt (As of January 31, 2024)
• 18,750,000 — Shares Outstanding (As of January 31, 2024)
• 8,380,436 — Revenue (Fiscal Year 2024)
• 8,080,659 — Revenue (Fiscal Year 2023)

Key Players & Entities

• Skillsoft Corp. (company) — Filer
• January 31, 2024 (date) — Fiscal year end
• ASU 2021-08 (other) — Accounting standard adoption
• May 2023 (date) — RSU modification
• Goodwill (other) — Impacted by deferred revenue increase

FAQ

Risk Factors

• Deferred Revenue and Goodwill Impact [medium — financial]: The adoption of ASU 2021-08 led to an increase in deferred revenue and a corresponding increase in goodwill.
• Stock-Based Compensation Expense [low — financial]: Modification of RSUs in May 2023 resulted in a less than $0.1 million per quarter increase in stock-based compensation expense over two years.

Industry Context

Skillsoft operates in the prepackaged software industry, focusing on providing learning and talent solutions.

Regulatory Implications

The filing adheres to the Securities Exchange Act of 1934, requiring public companies to submit annual reports.

What Investors Should Do

1. Analyze the impact of deferred revenue on future revenue recognition.
2. Evaluate the long-term effect of the RSU modification on employee compensation and dilution.
3. Compare key financial metrics with industry peers.

Key Dates

• 2024-01-31: Fiscal Year End — End of reporting period for the 10-K
• 2024-04-15: Filing Date — Date the 10-K was filed with the SEC

Year-Over-Year Comparison

The filing covers the fiscal year ending January 31, 2024, and includes comparative data for the prior fiscal year.

Key Financial Figures

• $0.0001 — tered Class A Common Stock, par value $0.0001 per share SKIL New York Stock Excha

Filing Documents

• skil20240131_10k.htm (10-K) — 3155KB
• ex_648663.htm (EX-3.1) — 82KB
• ex_648662.htm (EX-4.1) — 62KB
• ex_604656.htm (EX-4.2) — 23KB
• ex_604657.htm (EX-10.19) — 31KB
• ex_604658.htm (EX-10.20) — 23KB
• ex_604659.htm (EX-21.1) — 66KB
• ex_604660.htm (EX-23.1) — 4KB
• ex_604661.htm (EX-31.1) — 13KB
• ex_604662.htm (EX-31.2) — 13KB
• ex_604663.htm (EX-32.1) — 5KB
• ex_604664.htm (EX-32.2) — 5KB
• ex_653134.htm (EX-97.1) — 26KB
• 0001437749-24-012054.txt (&nbsp;) — 16033KB
• skil-20240131.xsd (EX-101.SCH) — 122KB
• skil-20240131_cal.xml (EX-101.CAL) — 133KB
• skil-20240131_def.xml (EX-101.DEF) — 863KB
• skil-20240131_lab.xml (EX-101.LAB) — 731KB
• skil-20240131_pre.xml (EX-101.PRE) — 922KB
• skil20240131_10k_htm.xml (XML) — 3019KB

Business

Business 2 Item 1A.

Risk Factors

Risk Factors 9 Item 1B. Unresolved Staff Comments 21 Item 1C. Cybersecurity 21 Item 2.

Properties

Properties 22 Item 3.

Legal Proceedings

Legal Proceedings 22 Item 4. Mine Safety Disclosures 22 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 22 Item 6. Reserved 22 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 34 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 74 Item 9A.

Controls and Procedures

Controls and Procedures 74 Item 9B. Other Information 75 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 75 PART III Item 10. Directors, Executive Officers and Corporate Governance 75 Item 11.

Executive Compensation

Executive Compensation 75 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 75 Item 13. Certain Relationships and Related Transactions, and Director Independence 75 Item 14. Principal Accountant Fees and Services 75 PART IV Item 15. Exhibits and Financial Statement Schedules 75 Item 16. Form 10-K Summary 76

Signatures

Signatures 77 Table of Contents CAUTIONARY NOTES REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10K (this "Form 10K" or "Annual Report") 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 intended to be covered by the safe harbors created by those laws. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements include, but are not limited to, statements that address activities, events or developments that we expect or anticipate may occur in the future, including such things as our outlook, our product development and planning, our pipeline, future capital expenditures, share repurchases, financial results, the impact of regulatory changes, our current and evolving business strategies, including with respect to acquisitions and dispositions, demand for our services, our competitive strengths, the benefits of new initiatives, growth of our business and operations, the effectiveness of our products, the state and future of skilling in the workplace, our ability to successfully implement our plans, strategies, objectives, expectations and intentions are forward-looking statements. Also, when we use words such as "may", "will", "would", "anticipate", "believe", "estimate", "expect", "intend", "plan", "project", "forecast", "seek", "outlook", "target", goal", "probably", or similar expressions, we are making forward-looking statements. Such statements are based upon the current beliefs and expectations of Skillsoft's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature, and we caution you against unduly relying on these forward-lookin

Business

Item 1. Business ABOUT SKILLSOFT At Skillsoft, we propel organizations and people to grow together through transformative learning experiences. We drive continuous growth and performance for employees and their organizations by helping them overcome critical skills gaps, unlock human potential, and transform the workforce to meet today's challenges and tomorrow's opportunities. We do this through a holistic, enterprise-wide approach to skills development that delivers measurable outcomes. At Skillsoft, we: Offer a framework and methodology to benchmark current skills profiles across the enterprise and track outcomes of new skills initiatives over time; Provide transformative learning experiences across knowledge domains, in modalities ranging from video and audio to instructor-led training, coaching, and practice labs; and, Deliver personalized skill pathways tailored to the unique needs of every learner across the organization — from leaders to frontline workers. Skillsoft serves as a trusted partner to approximately 60% of the Fortune 1000, supporting today's sought-after competencies: leadership and business skills, technology skills, and essential safety and risk management compliance. We address the full continuum of market needs, from functional and tactical learning initiatives to enterprise-wide strategic skills transformations. We leverage various learning modalities adaptable to different employee preferences, schedules, and learning styles. Our content is continuously updated with the latest expert insights, information, and training methods. Today's learners want the right learning experience, delivered when, where, and how they want it. That's why our approach is mobile-first, and our expert-curated, cloud-based content is served on an open platform that reaches learners wherever they are. Additionally, we utilize modern and innovative technologies - including generative Artificial Intelligence ("GenAI") - across our solutions to address new

View Full Filing

View this 10-K filing on SEC EDGAR