BOSTON — April 11, 2023 — Skillsoft Corp. (NYSE: SKIL) (“Skillsoft” or the “Company”), a leading platform for transformative learning experiences, today announced its financial results for the fourth quarter and full fiscal year ended January 31, 2023. The Company also provided its financial outlook for the full fiscal 2024 year.

“Fiscal 2023 was a transformative year for Skillsoft as we strengthened and repositioned the business for the future,” said Jeffrey R. Tarr, Skillsoft’s Chief Executive Officer. “We established a leading position in technical skills training with the acquisition of Codecademy and focused our portfolio on the high growth enterprise learning market with the divestiture of SumTotal. I am confident that we have the right assets and capabilities and are uniquely positioned to deliver on the skilling and workforce transformation needs of the world’s largest and most complex organizations.”

Fiscal 2023 Fourth Quarter Select Metrics and Financials from Continuing Operations (1)

• • • Skillsoft Content segment Bookings grew 4% year-over-year on a constant currency basis. Global Knowledge segment Bookings were down 13% year-over-year on a constant currency basis, but grew 2% sequentially from Q3.
    • Fourth quarter GAAP Revenue of $140 million grew 3% year-over-year. On a pro forma, constant currency basis, Revenue declined 2% year-over-year, with Skillsoft Content segment
    • Revenue growth of 3% year-over-year, while Global Knowledge segment Revenue was down 10% year-over-year and up 2% sequentially from Q3.
    • Fourth quarter GAAP Net Loss of $53 million. Adjusted EBITDA from continuing operations of $22 million, reflecting a margin of 16% of GAAP Revenue.
    • LTM Skillsoft Content Dollar Retention Rate was approximately 100% in the quarter, up from approximately 97% in the year-ago period.

Fiscal 2023 Full Year Select Metrics and Financials from Continuing Operations (1)

• • • Skillsoft Content segment Bookings grew 5% year-over-year on a constant currency basis. Global Knowledge segment Bookings were down 16% year-over-year on a constant currency basis.
    • Fiscal 2023 GAAP Revenue of $555 million. On a pro forma, constant currency basis, Revenue declined 1% year-over-year, with Skillsoft Content segment Revenue growth of 5% year-over-year, while Global Knowledge segment Revenue was down 11% year-over-year.
    • Fiscal 2023 GAAP Net Loss of $725 million. Adjusted EBITDA from continuing operations of $107 million, reflecting a margin of 19% of GAAP Revenue. Pro Forma Adjusted EBITDA of $102 million, reflecting a margin of 18% of Pro Forma Revenue.
    • Repurchased 1.6 million shares through January 31, 2023, under the Company’s $30 million share repurchase program.
    • Ended the year with $170 million of cash and cash equivalents and net leverage of 4.5x Pro Forma Adjusted EBITDA.

“We are proud of our teams’ efforts to return the Company to year-over-year Bookings growth in our Skillsoft Content segment, while also bringing greater stability to our Global Knowledge segment in the second half of the year,” said Richard G. Walker, Skillsoft’s Chief Financial Officer. “Although we are mindful of the global macroeconomic headwinds, we expect to continue to build on the important progress we made in fiscal 2023 to focus on profitable and durable growth. With a strong balance sheet and a healthy liquidity profile, we expect to continue to invest organically in further differentiating our immersive, AI-powered learning platform and our best-in-class content library, while also driving meaningful free cash flow generation during the year.”

About Skillsoft

Skillsoft delivers transformative learning experiences that propel organizations and people to grow together. The Company partners with enterprise organizations and serves a global community of learners to prepare today’s employees for tomorrow’s economy. With Skillsoft, customers gain access to blended, multimodal learning experiences that do more than build skills, they grow a more capable, adaptive, and engaged workforce. Through a portfolio of best-in-class content, a platform that is personalized and connected to customer needs, world-class tech, and a broad ecosystem of partners, Skillsoft drives continuous growth and performance for employees and their organizations by overcoming critical skill gaps and unlocking human potential. Learn more at www.skillsoft.com.