Mon, Jun 10, 8:09 PM (89 days ago)
Skillsoft Corp.'s Form 10-Q for the quarter ended April 30, 2024, highlights the following key financial metrics and trends: 1. **Revenue**: Total revenues decreased by 5.7% to $127.8 million from $135.6 million year-over-year. The decline was primarily due to weaker market demand in the Instructor-Led Training segment, especially in Europe, and a higher mix of reseller business. 2. **Operating Expenses**: Total operating expenses decreased by 11.3% to $151.6 million from $170.9 million. Major expense categories such as cost of revenues, content and software development, selling and marketing, and restructuring saw reductions. 3. **Net Loss**: The net loss narrowed to $27.6 million from $44.2 million in the prior year, driven by lower operating expenses and a favorable fair value adjustment of interest rate swaps. 4. **Cash Flow**: Net cash provided by operating activities was $14.9 million, down from $21.5 million, primarily due to timing of working capital settlements. Cash and cash equivalents stood at $142.0 million. 5. **Debt**: The company has a term loan facility with an outstanding principal of $593 million and an accounts receivable facility with $42.4 million drawn. 6. **Restructuring**: Restructuring charges decreased significantly to $1.0 million from $5.2 million, primarily related to severance costs. 7. **Future Outlook**: The company expects to fund operations through internal cash generation and its accounts receivable facility, anticipating sufficient liquidity for the next twelve months and beyond. Overall, Skillsoft has shown improvement in managing its expenses and narrowing its losses, although revenue challenges persist.