Skillsoft Reports Decline in Revenues and Net Losses for Q2 2024

Skillsoft Corp. reported its financial results for the three and six months ended July 31, 2024, revealing a decline in total revenues and net losses compared to the same periods in the previous fiscal year. For the three months ended July 31, 2024, total revenues were $132.2 million, a decrease of 6.3% from $141.2 million in 2023. For the six months, revenues fell to $260.0 million, down 6.0% from $276.7 million in the prior year. The decline was attributed to reduced revenues in both the Talent Development Solutions and Global Knowledge segments, with notable decreases in virtual, on-demand, and classroom training revenues.

Operating expenses for the three months ended July 31, 2024, totaled $151.6 million, down 9.0% from $166.5 million in the same period of 2023. For the six months, operating expenses decreased by 10.1% to $303.2 million from $337.4 million. The reduction in expenses was primarily due to lower costs in courseware, instructor fees, and outside services, as well as decreased compensation and benefits resulting from a lower headcount and stock-compensation expenses.

Despite the decrease in operating expenses, Skillsoft reported an operating loss of $19.3 million for the three months ended July 31, 2024, an improvement from a loss of $25.3 million in the same period in 2023. The six-month operating loss also improved to $43.2 million from $60.7 million year-over-year. However, the net loss for the three months increased to $39.6 million, compared to $32.0 million in 2023, while the six-month net loss decreased to $67.2 million from $76.2 million.

The company’s cash and cash equivalents as of July 31, 2024, were $122.7 million, down from $136.3 million at the end of January 2024. Total current assets also decreased to $301.1 million from $385.3 million, while total assets fell to $1.1 billion from $1.3 billion during the same period. Total shareholders’ equity decreased to $141.4 million from $205.6 million.

Skillsoft incurred restructuring charges of $11.3 million for the three months ended July 31, 2024, significantly higher than $2.5 million in the same period in 2023. The company announced a resource reallocation plan expected to yield over $45 million in annualized cost savings, with plans to reinvest up to half in strategic growth initiatives.

The company continues to focus on enhancing its learning solutions through generative Artificial Intelligence (GenAI) and serves approximately 60% of the Fortune 1000 companies, maintaining a community of over 90 million learners globally.