Skillsoft (US:SKIL)2021-12-15 03:56Financial Data and Key Metrics Changes - Bookings for Q3 were $169 million, up $12 million or 7% compared to the prior year, with year-to-date bookings at $453 million, an increase of $37 million or 9% [35] - GAAP revenue for Q3 was $171 million, with year-to-date combined GAAP revenue at $401 million; adjusted revenue for Q3 was $179 million, an increase of $10 million or 6% over the prior year, and year-to-date adjusted revenue was $521 million, an increase of $4 million or 1% [36] - GAAP net loss was $43 million for the quarter, with a year-to-date combined GAAP net loss of $104 million; Q3 adjusted EBITDA was $49 million, flat to the prior year, with a year-to-date adjusted EBITDA of $130 million, down $4 million or 3% compared to the prior year [38][39] Business Line Data and Key Metrics Changes - Bookings for Skillsoft content in Q3 were $78 million, an increase of $5 million or 6%, with year-to-date bookings at $181 million, an increase of $10 million or 6% [41] - Bookings for Global Knowledge in Q3 were $62 million, an increase of $6 million or 11%, with year-to-date bookings at $190 million, an increase of $29 million or 18% [44] - SumTotal bookings were $29 million, an increase of $1 million or 3%, with year-to-date bookings at $82 million, a decrease of $2 million [45] Market Data and Key Metrics Changes - The addressable market for corporate digital learning is estimated to be $28 billion, growing at 10% annually, with 76% of IT decision-makers facing critical skills gaps [22][20] - 56% of IT managers plan to address skills gaps with training, indicating a strong demand for learning solutions [21] Company Strategy and Development Direction - The company is focused on six key pillars for growth: content leadership, platform leadership, go-to-market leadership, operational excellence, disciplined M&A, and a culture of leadership and learning [23] - The migration to the Percipio platform is on track, with 86% of annual recurring revenue on Percipio or dual deployment, up from 81% last quarter [17][26] - The company plans to continue investing in driving top-line growth, both organically and through M&A [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the size and growth of the corporate digital learning market and the company's ability to execute its strategy [15] - The company is raising its bookings outlook for the year to $700 million to $720 million and increasing the bottom end of its adjusted revenue outlook to $685 million to $700 million [47][48] Other Important Information - The company has made significant progress in integrating content from Skillsoft and Global Knowledge, more than doubling its tech and dev collection to 8,000 courses [25] - The company has entered into strategic alliances with partners like Udemy and Good Habits to enhance its content offerings [19] Q&A Session Summary Question: On Global Knowledge's growth trajectory - Management noted that while easier comparisons from COVID contributed to growth, Global Knowledge is on a growth trajectory with improved margins due to a shift to virtual training [55] Question: On sales hiring and team performance - Sales hiring has gone well, with a focus on training and development rather than increasing the size of the salesforce [63][64] Question: On bookings increase and guidance - Management confirmed that both new customers and existing customers are contributing to the increase in bookings, with dollar retention rates moving up [68] Question: On demand driven by turnover and skills gaps - Higher turnover is creating a need for learning and development, which is seen as critical for employee retention and filling skills gaps [71][72] Question: On competitive dynamics - Management expressed confidence in the competitive environment, highlighting the company's scale and integration of offerings as key advantages [80][82]