Skillsoft Corp. Files Q3 2024 10-Q

TL;DR

Skillsoft's Q3 2024 10-Q is in. Check financials for performance updates.

AI Summary

Skillsoft Corp. filed its 10-Q for the period ending October 31, 2024. The filing details financial performance, including revenue and expenses, and provides updates on operational matters. Specific financial figures and operational metrics are presented for the third quarter of fiscal year 2024.

Why It Matters

This filing provides investors with a detailed look at Skillsoft's financial health and operational performance during the third quarter, influencing investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are routine financial reports, but the specific content can reveal risks or opportunities impacting the company's stock.

Key Numbers

• 18,750,000 — Shares (Number of shares that would vest based on achieving 'Target' performance)
• 0.7 years — Weighted-average period (Expected recognition period for shares intended to be settled in cash)

Key Players & Entities

• Skillsoft Corp. (company) — Filer of the 10-Q
• 20241031 (date) — End of reporting period
• 20241210 (date) — Filing date
• Churchill Capital Corp II (company) — Former company name
• Hornblower Acquisition Corp (company) — Former company name

FAQ

Key Financial Figures

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

Filing Documents

• skil20241031_10q.htm (10-Q) — 1751KB
• ex_722970.htm (EX-31.1) — 14KB
• ex_722971.htm (EX-31.2) — 14KB
• ex_722972.htm (EX-32.1) — 6KB
• ex_722973.htm (EX-32.2) — 6KB
• 0001437749-24-037110.txt ( ) — 7692KB
• skil-20241031.xsd (EX-101.SCH) — 59KB
• skil-20241031_cal.xml (EX-101.CAL) — 54KB
• skil-20241031_def.xml (EX-101.DEF) — 400KB
• skil-20241031_lab.xml (EX-101.LAB) — 353KB
• skil-20241031_pre.xml (EX-101.PRE) — 442KB
• skil20241031_10q_htm.xml (XML) — 1290KB

— FINANCIAL INFORMATION - UNAUDITED

PART I — FINANCIAL INFORMATION - UNAUDITED

Unaudited Financial Statements

Item 1. Unaudited Financial Statements: 2 Unaudited Condensed Consolidated Balance Sheets as of October 31, 2024 and January 31, 2024 2 Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended October 31, 2024 and 2023 3 Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended October 31, 2024 and 2023 4 Unaudited Condensed Consolidated Statements of Shareholders' Equity (Deficit) for the three and nine months ended October 31, 2024 and 2023 5 Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended October 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 18

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 26

Controls and Procedures

Item 4. Controls and Procedures 26

— OTHER INFORMATION

PART II — OTHER INFORMATION 27

Legal Proceedings

Item 1. Legal Proceedings 27

Risk Factors

Item 1A. Risk Factors 27

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 27

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 27

Other Information

Item 5. Other Information 27

Exhibits

Item 6. Exhibits 28

SIGNATURES

SIGNATURES 29 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 and per share amounts) October 31, 2024 January 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 97,921 $ 136,308 Restricted cash 3,881 10,215 Accounts receivable, net of allowance for credit losses of approximately $ 558 and $ 562 as of October 31, 2024 and January 31, 2024, respectively 102,498 185,638 Prepaid expenses and other current assets 55,834 53,170 Total current assets 260,134 385,331 Property and equipment, net 3,543 6,639 Goodwill 317,071 317,071 Intangible assets, net 456,692 539,293 Right of use assets 5,054 8,044 Other assets 11,037 17,256 Total assets $ 1,053,531 $ 1,273,634 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $ 6,404 $ 6,404 Borrowings under accounts receivable facility 10,009 44,980 Accounts payable 21,159 14,512 Accrued compensation 28,325 31,774 Accrued expenses and other current liabilities 22,370 29,939 Lease liabilities 2,088 3,049 Deferred revenue 203,646 282,570 Total current liabilities 294,001 413,228 Long-term debt 574,312 577,487 Deferred tax liabilities 44,099 52,148 Long-term lease liabilities 6,839 9,251 Deferred revenue - non-current 1,823 2,402 Other long-term liabilities 11,977 13,531 Total long-term liabilities 639,050 654,819 Commitments and contingencies Shareholders' equity: Shareholders' common stock - Class A common shares, $ 0.0001 par value: 18,750,000 shares authorized and 8,576,683 shares issued and 8,276,906 shares outstanding at October 31, 2024, and 8,380,436 shares issued and 8,080,659 shares outstanding at January 31, 2024 1 1 Additional paid-in capital 1,559,547 1,551,005 Accumulated equity (deficit) ( 1,412,279 ) ( 1,321,478 ) Treasury stock, at cost - 299,777 shares as of October 31, 2024 and January 31

View Full Filing

View this 10-Q filing on SEC EDGAR