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Skillsoft (SKIL)
NYSE:SKIL
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Skillsoft
(NYSE:SKIL)
58Neutral
Skillsoft (SKIL) vs. S&P 500 (SPY)
Market Cap
$150.51M
Dividend YieldN/A
Average Volume (3M)47.02K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-3.82%
EPS Growth-111.30%
CountryUS
Employees2,318
SectorTechnology
Sector Strength45
IndustryEducation
Share Statistics
EPS (TTM)-41.50
Shares Outstanding8,283,555
10 Day Avg. Volume37,832
30 Day Avg. Volume47,015
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.28
Price to Cash Flow (P/CF)4.30
P/FCF Ratio1.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Skillsoft Business Overview & Revenue Model
Company DescriptionSkillsoft (SKIL) is a global leader in corporate digital learning, focusing on transforming the workforce for the future. The company provides a comprehensive suite of online learning solutions, including corporate training, leadership development, and compliance training services. Its offerings are designed to build skills and capabilities for businesses and organizations worldwide, leveraging an extensive library of content across various domains such as technology, business, and safety.
How the Company Makes MoneySkillsoft generates revenue primarily through subscription-based models, where businesses and organizations pay for access to its extensive library of digital learning content and platforms. This includes multi-year agreements with enterprises that seek to provide skill development and training to their employees. Additionally, Skillsoft partners with various organizations to expand its reach and enhance its content delivery, contributing to revenue through strategic collaborations. Significant revenue is also derived from its Percipio platform, which offers personalized learning experiences and analytics to help organizations track and measure employee progress and engagement.
Skillsoft Financial Statement Overview
Summary
Skillsoft faces significant financial challenges, with declining revenue and profitability issues. High leverage poses risks, though recent improvements in cash flow management offer a glimmer of stability. The company needs strategic adjustments to enhance financial health and long-term sustainability.Income Statement
Skillsoft's TTM (Trailing-Twelve-Months) revenue of $534.78M shows a declining trend from the previous period ($553.24M). Gross Profit Margin is 61.17%, indicating reasonable operational efficiency. However, the company faces profitability challenges with negative Net Profit Margin (-62.85%) and EBIT Margin (-12.73%), reflecting ongoing losses.45
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio of 4.89, highlighting significant leverage. Stockholders' equity decreased to $120.48M, impacting the equity ratio, which stands at 11.44%. These factors indicate financial instability, with a potential risk from high liabilities relative to equity.35
Negative
Cash Flow
The cash flow shows a positive shift with TTM Free Cash Flow of $3.78M, compared to negative in the prior period. Operating Cash Flow to Net Income Ratio is -0.07, indicating cash flow challenges. However, the Free Cash Flow to Net Income Ratio improved, suggesting better cash management.50
Neutral
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 534.78M | 553.24M | 555.12M | 514.02M | 0.00 | 514.02M | Gross Profit |
| 327.06M | 400.08M | 232.85M | 401.73M | -906.90K | 417.98M | EBIT |
| -68.09M | -308.61M | -119.80M | -408.03M | -906.90K | 50.71M | EBITDA |
| -149.88M | -143.69M | -598.57M | 69.04M | -906.90K | -403.22M | Net Income Common Stockholders |
| -336.13M | -349.29M | -724.96M | -849.21M | -72.46M | -849.21M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.38M | 136.31M | 177.56M | 152.19M | 3.87M | 2.24M | Total Assets |
| 699.51M | 1.27B | 1.68B | 2.24B | 700.93M | 697.84M | Total Debt |
| 3.13M | 641.17M | 644.06M | 559.75M | 1.50M | 0.00 | Net Debt |
| 749.45K | 504.86M | 466.50M | 407.56M | -2.37M | -2.24M | Total Liabilities |
| 110.39M | 1.07B | 1.15B | 1.18B | 23.60M | 21.64M | Stockholders Equity |
| 589.12M | 205.59M | 531.76M | 1.06B | 677.32M | 676.20M |
| Cash Flow | Free Cash Flow | ||||
| 3.78M | -15.09M | -36.20M | 49.05M | -720.66K | -54.81M | Operating Cash Flow |
| 23.71M | 2.82M | -20.93M | 62.03M | -720.66K | -37.41M | Investing Cash Flow |
| -19.92M | -23.04M | -42.18M | -574.60M | 856.25K | -17.40M | Financing Cash Flow |
| -38.14M | -10.81M | 77.23M | 440.35M | 1.50M | 57.80M |
Skillsoft Technical Analysis
Negative
18.82
Price Trends
27.45
Negative
21.79
Negative
17.61
Positive
Market Momentum
-2.38
Positive
22.80
Positive
10.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIL, the sentiment is Negative. The current price of 18.82 is below the 20-day moving average (MA) of 25.15, below the 50-day MA of 27.45, and above the 200-day MA of 17.61, indicating a neutral trend. The MACD of -2.38 indicates Positive momentum. The RSI at 22.80 is Positive, neither overbought nor oversold. The STOCH value of 10.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKIL.
Skillsoft Risk Analysis
Skillsoft disclosed 36 risk factors in its most recent earnings report. Skillsoft reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Skillsoft Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $1.13B | ― | -13.11% | ― | 9.27% | 34.66% | |
61 Neutral | $4.78B | 223.24 | 3.48% | ― | 31.39% | ― | |
58 Neutral | $150.51M | ― | -119.95% | ― | -3.82% | -111.30% | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% | |
57 Neutral | $1.35B | ― | -30.77% | ― | 7.91% | 22.07% | |
54 Neutral | $551.15M | ― | -35.80% | ― | 33.86% | 66.85% | |
47 Neutral | $81.13M | ― | -147.16% | ― | -13.78% | -5297.96% |
* Technology Sector Average
Performance Comparison
SKIL
Skillsoft
18.82
7.30
63.37%
TREE
Lendingtree
45.83
4.51
10.91%
CHGG
Chegg
0.86
-7.17
-89.29%
LYFT
Lyft
11.61
-6.65
-36.42%
COUR
Coursera
7.00
-7.74
-52.51%
UDMY
Udemy Inc
8.03
-3.21
-28.56%
Skillsoft Earnings Call Summary
Earnings Call Date: Dec 10, 2024 | % Change Since: 27.85% | Next Earnings Date: Apr 2, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant progress in expense management, customer acquisition, and product innovation, leading to improved cash flow and profitability. However, challenges remain in the Global Knowledge segment and with certain product offerings, though steps are being taken to address these issues.Highlights
Expense Reductions and Resource Reallocation
Skillsoft achieved $45 million in annualized expense reductions, with 40% to 50% reinvested into the business, aiding in margin expansion.
New Customer Wins and AI Program Success
Skillsoft secured significant new customer wins, including a multiyear deal with a top 30 global brand and successful AI Accelerator program implementations.
Product Innovations Driving Efficiency
Introduced AI Coaching Assistant reducing plan completion time by 77%, new compliance suite improving NPS by 48%, and end-to-end certification paths.
Positive Free Cash Flow
Skillsoft delivered positive free cash flow of $4 million in Q3, driven by disciplined collections management.
Improved Profitability and Adjusted EBITDA
Adjusted EBITDA increased by $2 million year-over-year, reflecting a 23% margin, up by 150 basis points.
Lowlights
Revenue Decline in Global Knowledge Segment
Global Knowledge revenue decreased by 10% year-over-year, although sequential improvement was noted.
Softness in Coaching and Compliance Offerings
Challenges in coaching and compliance resulted in decreased retention rates, prompting a shift to a subscription model.
Overall Revenue Slight Decline
Total revenue decreased by 1% year-over-year, reaching $137 million.
Company Guidance
During Skillsoft's third-quarter fiscal 2025 earnings call, the company outlined significant progress in its transformation strategy, focused on operational execution and strategic resource reallocation to drive growth and margin expansion. Skillsoft reported revenue of $137 million, a slight 1% year-over-year decline, with Talent Development Solutions revenue at $103 million, up 2% year-over-year, and Global Knowledge revenue at $34 million, down 10% year-over-year. The company achieved a positive free cash flow of $4 million in Q3, driven by disciplined collections management, and reported an adjusted EBITDA of $32 million or 23% of revenue, marking a 6% increase and a 150 basis point improvement in margin compared to the previous year. Skillsoft also highlighted a 77% reduction in the average time to complete a coaching plan and a 48% increase in Net Promoter Score for its new compliance suite. The company raised its full-year revenue guidance range to $520 million-$530 million while reaffirming its adjusted EBITDA outlook of $105 million-$110 million, emphasizing its focus on maintaining a healthy balance sheet and achieving consistent positive free cash flow.Skillsoft Corporate Events
Business Operations and StrategyFinancial Disclosures
Skillsoft Shows Growth Amid Strategic Transformations
Positive
Dec 10, 2024
Skillsoft announced its financial results for the third quarter of fiscal 2025, reporting a slight decrease in total revenue compared to the previous year, but improvements in adjusted EBITDA and margin expansion. The company highlighted strategic transformation initiatives and AI innovation tools as key components of its ongoing growth, with significant customer wins and multiple ‘Partner of the Year’ awards enhancing its market position. The company raised its fiscal year 2025 revenue outlook based on positive financial performance and strategic execution.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.