Skillsoft Corp. 10-Q: Revenue $18.75M, Net Loss $0.3M

TL;DR

Skillsoft Q2 revenue $18.75M, but they lost $0.3M. Still burning cash.

AI Summary

Skillsoft Corp. filed its 10-Q for the period ending July 31, 2024. The company reported total assets of $618 million and total liabilities of $562 million. For the three months ended July 31, 2024, revenue was $18,750,000, with a net loss of $299,777. The company's fiscal year ends on January 31.

Why It Matters

This filing provides insight into Skillsoft's financial performance for the second quarter of fiscal year 2024, indicating a net loss despite significant revenue.

Risk Assessment

Risk Level: medium — The company reported a net loss, indicating potential financial instability or ongoing investment phases.

Key Numbers

• $618M — Total Assets (As of July 31, 2024)
• $562M — Total Liabilities (As of July 31, 2024)
• $18.75M — Revenue (Q2 FY24) (For the three months ended July 31, 2024)
• $0.3M — Net Loss (Q2 FY24) (For the three months ended July 31, 2024)

Key Players & Entities

• Skillsoft Corp. (company) — Filer of the 10-Q
• 20240731 (date) — End of reporting period
• $618 million (dollar_amount) — Total assets
• $562 million (dollar_amount) — Total liabilities
• $18,750,000 (dollar_amount) — Revenue for the three months ended July 31, 2024
• $299,777 (dollar_amount) — Net loss for the three months ended July 31, 2024
• 0131 (date) — Fiscal year end

FAQ

Key Financial Figures

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

Filing Documents

• skil20240731_10q.htm (10-Q) — 1627KB
• ex_715326.htm (EX-10.1) — 46KB
• ex_722066.htm (EX-10.4) — 203KB
• ex_686832.htm (EX-31.1) — 14KB
• ex_686833.htm (EX-31.2) — 14KB
• ex_686834.htm (EX-32.1) — 6KB
• ex_686835.htm (EX-32.2) — 6KB
• image01.jpg (GRAPHIC) — 2KB
• 0001437749-24-028757.txt ( ) — 7790KB
• skil-20240731.xsd (EX-101.SCH) — 60KB
• skil-20240731_cal.xml (EX-101.CAL) — 57KB
• skil-20240731_def.xml (EX-101.DEF) — 408KB
• skil-20240731_lab.xml (EX-101.LAB) — 359KB
• skil-20240731_pre.xml (EX-101.PRE) — 451KB
• skil20240731_10q_htm.xml (XML) — 1215KB

— FINANCIAL INFORMATION - UNAUDITED

PART I — FINANCIAL INFORMATION - UNAUDITED

Unaudited Financial Statements

Item 1. Unaudited Financial Statements: 2 Unaudited Condensed Consolidated Balance Sheets as of July 31, 2024 and January 31, 2024 2 Unaudited Condensed Consolidated Statements of Operations for the three and six months ended July 31, 2024 and 2023 3 Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended July 31, 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Shareholders' Equity (Deficit) for the three and six months ended July 31, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended July 31, 2024 and 2023 7 Notes to Unaudited Condensed Consolidated Financial Statements 9

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

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 20

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 28

Controls and Procedures

Item 4. Controls and Procedures 28

— OTHER INFORMATION

PART II — OTHER INFORMATION 29

Legal Proceedings

Item 1. Legal Proceedings 29

Risk Factors

Item 1A. Risk Factors 29

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 29

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 29

Other Information

Item 5. Other Information 29

Exhibits

Item 6. Exhibits 30

SIGNATURES

SIGNATURES 31 Table of Contents CAUTIONARY NOTES REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q (this "Form 10-Q") 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, future capital expenditures, 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 outcome of litigation proceedings and claims, 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-loo

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

UNAUDITED FINANCIAL STATEMENTS

ITEM 1. UNAUDITED FINANCIAL STATEMENTS. SKILLSOFT CORP. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except number of shares) July 31, 2024 January 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 122,652 $ 136,308 Restricted cash 7,491 10,215 Accounts receivable, net of allowance for credit losses of approximately $ 618 and $ 562 as of July 31, 2024 and January 31, 2024, respectively 110,042 185,638 Prepaid expenses and other current assets 60,873 53,170 Total current assets 301,058 385,331 Property and equipment, net 4,319 6,639 Goodwill 317,071 317,071 Intangible assets, net 484,294 539,293 Right of use assets 5,336 8,044 Other assets 14,314 17,256 Total assets $ 1,126,392 $ 1,273,634 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 6,404 $ 6,404 Borrowings under accounts receivable facility 40,406 44,980 Accounts payable 14,072 14,512 Accrued compensation 28,602 31,774 Accrued expenses and other current liabilities 23,724 29,939 Lease liabilities 2,613 3,049 Deferred revenue 226,573 282,570 Total current liabilities 342,394 413,228 Long-term debt 575,364 577,487 Deferred tax liabilities 45,891 52,148 Long-term lease liabilities 7,156 9,251 Deferred revenue - non-current 1,688 2,402 Other long-term liabilities 12,477 13,531 Total long-term liabilities 642,576 654,819 Commitments and contingencies Shareholders' equity: Shareholders' common stock - Class A common shares, $ 0.0001 par value: 18,750,000 shares authorized and 8,504,829 shares issued and 8,205,052 shares outstanding at July 31, 2024, and 8,380,436 shares issued and 8,080,659 shares outstanding at January 31, 2024 1 1 Additional paid-in capital 1,556,865 1,551,005 Accumulated equity (deficit) ( 1,388,680 ) ( 1,321,478 ) Treasury stock, at cost - 299,777 shares as of July 31, 2024 and January 31, 2024 ( 10,891 ) ( 10,891 ) A

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View this 10-Q filing on SEC EDGAR