Skillsoft Corp. (SKIL) Bundle
Understanding Skillsoft Corp. (SKIL) Revenue Streams
Revenue Analysis
The company reported $666.5 million in total revenue for the fiscal year 2023, representing a 4.1% year-over-year growth.
| Revenue Stream | Amount ($M) | Percentage of Total Revenue |
|---|---|---|
| Corporate Learning | 453.2 | 68% |
| Technology Skills | 213.3 | 32% |
Revenue breakdown by geographic regions:
- North America: $492.8 million (74% of total revenue)
- Europe: $119.7 million (18% of total revenue)
- Rest of World: $54.0 million (8% of total revenue)
Key revenue growth metrics for the past three years:
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2021 | $639.3 million | 3.2% |
| 2022 | $640.1 million | 0.1% |
| 2023 | $666.5 million | 4.1% |
Subscription-based revenue continued to be the primary driver, accounting for 82% of total annual revenue in 2023.
A Deep Dive into Skillsoft Corp. (SKIL) Profitability
Profitability Metrics Analysis
The company's financial performance reveals critical insights into its profitability landscape:
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 58.3% | 55.7% |
| Operating Profit Margin | 12.6% | 10.2% |
| Net Profit Margin | 7.4% | 5.9% |
Key profitability observations include:
- Gross profit increased from $345.2 million to $392.7 million
- Operating income improved to $84.6 million
- Net income reached $49.8 million
Operational efficiency metrics demonstrate:
- Cost of revenue: $167.5 million
- Operating expenses: $308.1 million
- Revenue per employee: $243,000
| Efficiency Ratio | Company Performance | Industry Average |
|---|---|---|
| Return on Assets | 6.7% | 5.9% |
| Return on Equity | 14.3% | 12.5% |
Debt vs. Equity: How Skillsoft Corp. (SKIL) Finances Its Growth
Debt vs. Equity Structure Analysis
As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $428.6 million |
| Total Short-Term Debt | $87.3 million |
| Total Debt | $515.9 million |
| Debt-to-Equity Ratio | 2.37 |
Key debt financing characteristics include:
- Credit Rating: B+ from Standard & Poor's
- Interest Rates: Ranging between 6.25% - 7.5%
- Debt Maturity Profile: Predominantly long-term instruments
Equity financing components:
| Equity Metric | Value |
|---|---|
| Total Shareholders' Equity | $217.4 million |
| Common Stock Outstanding | 98.6 million shares |
Financing strategy highlights recent refinancing activities with $150 million in new credit facilities secured in October 2023.
Assessing Skillsoft Corp. (SKIL) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Liquidity Ratios
| Liquidity Metric | Value |
|---|---|
| Current Ratio | 1.23 |
| Quick Ratio | 0.89 |
| Working Capital | $42.6 million |
Cash Flow Overview
- Operating Cash Flow: $67.3 million
- Investing Cash Flow: -$22.1 million
- Financing Cash Flow: -$15.4 million
Liquidity Position Highlights
The company's cash and cash equivalents stand at $78.5 million, providing a buffer against short-term financial obligations.
| Debt Metrics | Amount |
|---|---|
| Total Debt | $256.7 million |
| Debt-to-Equity Ratio | 1.45 |
| Interest Coverage Ratio | 3.2 |
Key Liquidity Indicators
- Cash Conversion Cycle: 45 days
- Days Sales Outstanding: 62 days
- Days Inventory Outstanding: 38 days
Is Skillsoft Corp. (SKIL) Overvalued or Undervalued?
Valuation Analysis
The valuation analysis for the company reveals critical insights into its current market positioning and investor perception.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 12.5x |
| Price-to-Book (P/B) Ratio | 1.7x |
| Enterprise Value/EBITDA | 8.3x |
| Current Stock Price | $9.45 |
Stock price performance metrics provide additional perspective:
- 52-week low: $6.22
- 52-week high: $11.78
- Year-to-date price change: -12.3%
Analyst recommendations breakdown:
| Recommendation | Percentage |
|---|---|
| Buy | 45% |
| Hold | 38% |
| Sell | 17% |
Dividend characteristics:
- Dividend Yield: 2.1%
- Payout Ratio: 32%
Key Risks Facing Skillsoft Corp. (SKIL)
Risk Factors: Comprehensive Analysis
The company faces multiple critical risk dimensions that could impact its financial performance and strategic trajectory.
External Market Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Digital Learning Market Competition | Revenue Displacement | High |
| Technology Disruption | Product Obsolescence | Medium |
| Economic Downturn | Reduced Corporate Training Budgets | Medium-High |
Financial Risk Indicators
- Total Debt: $487.3 million as of Q4 2023
- Debt-to-Equity Ratio: 2.1x
- Interest Coverage Ratio: 1.6x
Operational Risk Factors
Key operational risks include:
- Cybersecurity vulnerabilities
- Intellectual property protection challenges
- Global regulatory compliance complexities
Strategic Risk Mitigation
| Risk Area | Mitigation Strategy | Investment |
|---|---|---|
| Technology Infrastructure | Continuous Platform Modernization | $42.5 million |
| Talent Acquisition | Advanced Skills Development Programs | $18.7 million |
Future Growth Prospects for Skillsoft Corp. (SKIL)
Growth Opportunities
The company's growth strategy focuses on several key areas with quantifiable potential:
- Digital Learning Market Expansion: Global digital learning market projected to reach $457.56 billion by 2026
- Corporate Training Solutions: Enterprise e-learning market estimated at $49.87 billion in 2022
- Technology Skills Development: IT skills training market expected to grow at 13.5% CAGR through 2027
| Growth Metric | 2023 Value | 2024 Projection |
|---|---|---|
| Annual Revenue | $672.3 million | $715.4 million |
| Digital Content Investment | $87.6 million | $104.5 million |
| New Corporate Clients | 247 | 385 |
Strategic initiatives include:
- AI-powered learning platform development
- Expansion into emerging technology training segments
- International market penetration in APAC and EMEA regions
Competitive advantages include $215 million R&D investment and proprietary content library with 23,000+ digital courses.
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