SKIL - Earnings call 2 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Skillsoft Second Quarter Fiscal 2022 Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Jim Gruskin, Interim Head of Investor Relations. Thank you. Please go ahead.

James Gruskin

Good afternoon, and welcome to Skillsoft Second Quarter Fiscal 2022 Earnings Call.

the market in closed discussing issued press be the after today. will results our announced release We With me are CFO, Ryan Skillsoft CEO, Jeff Tarr; Murray. and Interim

pursuant provisions Today's the XXXX. Litigation will contain statements, of are call forward-looking Reform Act safe the of made harbor Private Securities which to

plan, relied business our identified include statements intend, of subsequent as guidance based on today our only not our These expect, update XXXX. can and should be internally we market future generated for words will. financial and performance data as such and anticipate, trends, our not our undertake and fiscal any seek Forward-looking and the financial be business share, at financial statements. Statements position duty by company. data to upon statements as as these market views concerning are views expected statements do or and believe, condition by any representing and They reflect date, to industry

of regarding to change estimates various aware uncertainties subject involve are not our are and factors. any risks call, or we market industry based discussed today's misstatements While and on data position on

expectations. cause statements results to risks could are their to nature subject Forward-looking uncertainties that differ address that and by matters materially actual

July report For quarterly could with on a important press other Form risks XXXX, periodic the the and and our the for results, be XX, and please Exchange to to the our factors Securities filings risks XX-Q affect X other discussion of material that refer actual filed today's ended Commission months our described SEC. release, with the in

accounting which with are also discuss will accordance non-GAAP principles. not accepted in prepared call, measures, financial generally the we During certain

following due different June reflect ownership Skillsoft's and the presentation basis. to between of to periods the of after be on and accounting into ownership and XX. periods the to few required June XX investment successor change comments and periods lack financial on Now comparability requires GAAP merger separated predecessor a before leaseback GAAP and statements in

XX. In after this June the only to combination the GAAP activity XX. June combined Global XX reflected on June References before addition, after predecessor a excludes statements period that Knowledge call with in Knowledge period the reflect successor Global is of GAAP financial results

these For in define the GAAP with to as to combined periods been measures the today's SEC most materials the is all and have all results trends Skillsoft of release, turn believe the comparable non-GAAP of been earnings to other to Knowledge reconciliation press has supplemental available our the website providing well non-GAAP investors which measures filed go-forward will and financial presented, measures www.skillsoft.com. With the is useful our how on commentary, company. today as that, normalized we and as also if company financial Global for metrics show in I directly at SEC the over included Jeff. and which is to the we these call is furnished metrics A in

Jeffrey Tarr

to the Jim, call our all who earnings joined thanks have and new as first Thanks, Skillsoft.

today of to team workforce and of mean When solutions, members our we say the for we most customers, with valuable, is provider our vision valued shareholders. learners, preparing the be highly learning Our our communities, our skills our the tomorrow. to

online. and solutions serving most workforce built will believe of technology we Importantly, valued that highly provider on its be deliver the learning great will the primarily world's solutions

proud in the $XXX are the than with learning customers. from X,XXX more digital more learning in digital largest business corporate than enterprise operate world We to million revenue

performance and X Skillsoft segments. XX% segments most must profitable. up basis be To delivered major on in quarter, most X%. segment, The with Percipio our also part business by our experience were business XX%, grew includes SumTotal the exceeded during of segment also blue-chip XX%. we up all was I'm are wins Each this deliver up These the platform, a of also was strong Knowledge combined the valuable, XX%. up report customer which to learning growth. expectations Content pleased the Global We we that our our bookings and was quarter.

We debt, world's the of to with strong bookings we our world-class of Board reduced We academia $XX our relevant cash Exchange. from milestones technology of interest of New number of healthy highest one the in from trading We a key experience began eliminating strategic and quarter. addition of Directors Prosus, investors. industry, with decades expense. York the In growth, benefit achieved refined a Stock established a We annual appointed million on investment We the government. levels new sheet a Pluma, largest this balance against to to and us And that will management portfolio. Notably, Investor of the announced our team targets a completed seeded as of be our Knowledge. already a team dedication can accomplished of CFO integration the and our significantly we fast-growing digital joining members well soon. is our Skillsoft. of we who all to coaching new Global adding with platform and SVP what we accomplish Relations, acquisition the this and new advancing speaks This executing while a

strategy. I'll are open to the provide over to I'd walk update and I'll to then you an numbers in Skillsoft, with who like opportunity new guidance close on market the a the company questions. And share to detail. the before and of our Ryan our hand greater call for those brief For overview through growth it we

increasing is by billion and learning. Skillsoft $XX new We growth in to learning being has been an to and classroom-first growing leader digital-first from skills from XX% the serve work global COVID a approach the corporate by accelerated at corporate estimated the a gap The addressable that digital market approach approximately home. annually. transition total driven believe an We is

workforce to at gaps either have X.X pace. topics. With XXXX Not learning the in is we believe but they business the an scale jobs technology skills largest companies McKinsey, customers, to the and changing are we According prepare largest become have to of dev also Fortune operates all skills, as Reskilling, approximately great only solutions learning: OECD, enterprise digital within According few to the for the the jobs today's talent resignation believe XX% C-suite of the will is positioned categories next of for radically provider are X And the of Skillsoft years. and compliance. that leadership core unprecedented and transform only at skills worldwide the XX% by corporate our tomorrow. customers, currently or XXXX. Skillsoft player will ideally billion and tech war of digital

we're overall. of digital corporate of in revenue XX% are or collectively categories, each approximately the learning represent these which We #X #X market. in And addressable #X

all positioned range for a learning categories, of uniquely are X in one-stop playing we digital By shop corporate as a needs. wide

comes new revenue, retention or Pluma, find drive to to like rates. buy expect retention customers X cross-sell recurring offerings and Currently, Importantly, Global our both offerings the XX% the as retention when buys categories, breadth higher one. XX% buy of Knowledge rates. a that XX all ARR, and get from in all that higher customer growth add a revenue X drives remaining And our they lift when annual products. and of compared we we new percentage we dollar We point to

through Percipio, LXP. Percipio SumTotal the is platform, LMS. AI-driven talent meeting learning regulated highly and content third-party a a and learning advanced focused SaaS-based and SumTotal, modern management learning system, needs LXP; industries experience an immersive software or via deployments. X is leading proprietary leading our deliver best-in-class of on We and SaaS platforms: or SaaS development on-premise

all reached small XXXX, scale, addition businesses, learners serve the we of globally. our through a By solutions organization. million our go-to-market XX Fortune to to governments we virtue In selling and approximately roughly XXX-person XX% of

Our and enterprise a are growth. number and relationships, competitive strong important learners provide for customer foundation go-to-market future large of organization advantages

our We're improved strong and with to an high content, trajectory. investments low starting intensity with an create SaaS value free and cash leverage, We put incredible conversion. a model attractive the foundation shareholders. an on with flow capital go-to-market, also in operating and growth enterprise for have platform opportunity business we've business And subscriptions, strong

valued is the tomorrow. skills most our preparing today mentioned, be for the I of with As of the learning to solutions, workforce vision highly provider

to of vision and X platform pillars: Our leadership, leadership, disciplined operational rests excellence, key realize this leadership leadership, go-to-market M&A learning. culture our strategy bold on content and

few a organic and platform of key leadership leadership. drivers growth: leadership, our minutes the on spend me Let X go-to-market content today

is the industry. First, in an differentiates Skillsoft advantage. Content important competitive a content leadership. and us this is leading creator, content

forming designed own content a people over of usually catalog Our for is learning learn a minutes few XX,XXX strung XX consists badges, Aspire journeys. We than and micro-learning our together the offer courses online, are assets, more original short our XXX,XXX with XX% content. and using of content and currently XXX,XXX way approach assessments length, videos, and interspersed nearly in where

Knowledge and strengthened than usage of last Global with by our and acquisition, $XXX no content investment. a technology mission-critical has one using over developed is prepared million It of content refreshed neuroscience-based as position proprietary catalog partnerships than authorized world's tech our been through drives MIT. X with We validated our IT us. we XX% of more result a approach substantially for dev, the companies. adding have And believe the substantially the in years our largest more professionals certification of largest Our has

updated of of generate collectively launched Net equity our and underscoring quality a content. diversity, quarter, This the refreshed inclusion Score we that high service and courses Promoter XX, customer

by a is coaching to of executives executive disruptive our valuable Coaching over to the employers regular of closed at acquisitions tens seek offering personalized Pluma which highly Pluma employee to we also thousands of of has valued both and leaders is opportunity complete cost. development We fraction customers. offering for a by number indicative small on high been cost, the current engaging and basis. powerful professional dollars. tool to sessions access coaching impactful digital has future a only platform that to Pluma, bolt-on available brings often a of is an due a its acquisition growth-oriented democratized their and and this of and coaching robust retention. Historically,

platform platform. leadership. learning legacy Turning to focused on We've our second migration experience pillar, to of our the from Percipio the accelerating Skillport customers been

quarter, the XX% up of was We consistent on generated dual end fiscal for QX by end or platform. from adoption dual Content we the and of XX%, Percipio Percipio year. of track with our were Percipio customers end of XX% revenue of of second year, Skillsoft the deployment highlighting at customer our As migrated up ARR the the base believe up XX% from bookings base to deployment, have of our business plan. on bookings XX% the were last are

quarters, Percipio Content and the dollar the average, the On platform retention the dollar second X customers of Skillport legacy combined deployment quarter, has Skillsoft was fiscal In deployment by that dual retention the the retention points. rate XX%, Percipio and for rate XX was last percentage combined over dollar dual rate exceeded and on XXX%.

this quarter in the features platform important X several in that further ways. added differentiate also We Percipio market

First, of tech the dev and that learning. through we our enhance strengthened offering experiential launch cloud labs

migration help content platform. we a milestones number on allowing their completed the that with Second, for achieved integration customers will to the We Percipio. Cornerstone of improved Learning key experience management system, and consumption that complete

We bringing platform, to to X languages the better the Percipio allows also learning which needs customer the us our to total base. serve added global additional XX, of

from this And month, Percipio, we launching events learning experience Journeys to depth to within Global Knowledge us third, dev allowing be value our strengthen later will and blended tech that Aspire and add instructor-led deliver the proposition. training

go-to-market to pillar, third our leadership. Now

professionals Eric and dev to experience. needs XX the new of creating sales and customer the Knowledge tremendous sales more Global Officer, and team and tech CTOs, organizations, approximately start. Revenue Chief people, training their of organizations. CDOs team integrated staffed with certification new Skillsoft up We XXX a a We is serving enterprise extensive CIOs, off acquisition stood than a Our Stine,

for for growth well us others. showing wins in considerable leader of a Canon, of Americas customer new filled Kyocera and Ingersoll operations, in Canada, new to also sales head of Rand, a Eric, a a market signs including leader that and leadership is We and for number include key potential. Notable go-to-market addition sales new positions Ricoh, the a quarter the performing among Datacom,

providers LMS Our had competing SumTotal largest against when also big wins the head-to-head industry. in business some the

through have scale we just and X we sheet, and we're what gained In started. with and growth of the and Global offering we have In a for Knowledge powerful and getting do, digital track a a the our platform world-class transaction, established a Board and debt last leadership value done with our dev by strengthened healthy and months, refinanced we tech driving assembled in short, would record skills adding acquisition. shareholders business said the team Pluma balance coaching

offering to we Looking is we to there completed completion. the dev through With to our ahead, for and all and With on on technical continuing strengthen platform, build and integrated process certification have Content, completing our momentum. and more and M&A. respect for as tech and our Skillsoft our required FedRAMP organically work we our on partnerships remain Knowledge continue and do focused both approach to Global business,

We Percipio. features customers integrations and necessary developing are to also to Skillport adding remaining transition

priority our achieving complete our go-to-market positioned and With new model and accretive well at to that is top team our we growth our become substantial to value and additional Our vision leadership products force targets. acquisitions synergy in stakeholders. achieve we this purpose, point leadership our values. primarily an targets. and vision will improvements learners seek and built content, create on we With are excellence recent our are we achieving and Operational platform And long-term committed value. And believe finally, sales our learning transformation learning a to growth role relates of to to culture to are and other and inspiring development. we'll place customers, for our shareholders, leverage go-to-market, M&A, for and to

now detail. to over to Murray the I'll Ryan discuss our in call results financial greater turn

Ryan Murray

detail with some provide performance, first on additional background information quarter will I Jeff. our and more second the Thanks, about along the half financials.

I'd like dive we and our terminology. in, points Before our about year quick make to X fiscal

year fiscal XX to with Our fiscal legacy reporting is Skillsoft's January ending year. period the align

referring Regarding we order will terminology, than and beginning bookings this going forward, rather quarter be intake. to

than still term define we changed of appropriate year. of is our indicator value bookings as period calculate for While of bookings the bookings of at revenue. the it contracts, captured sales the We contracted the referred renewal believe we or definition future is commitments better to believe including sometimes is X This as We for and annual value beyond not conservative more all those industry. this we've forward full that a even contract XX-month of more a start definition is way the metric, annual extend date.

consolidated XX% Turning million, $XXX $XXX first were million, for $XX compared first And for the to quarter up million up bookings now and $XX compared million the the year. quarter year. the to Bookings of year. the or half XX% to results half or prior were the last

QX for of an first $XXX increase $X X%. And was revenue a decrease adjusted $X Adjusted half million, million. or million, of revenue million was $XXX

purchase in remove revenue to under reseller required of $XXX noncash Knowledge We gross for which deferred year. accounted fair accounting up revenue of and the basis. adjustment first to a $XXX and have for the adjusted are was fees, Global revenue impact the million -- value net GAAP for QX in half on GAAP Combined million

profitability, In an adjusted million, million. of EBITDA of was increase QX terms $XX $X

the the year. million, XX%. prior adjusted of EBITDA half both million to $XX first half Adjusted $X was margin EBITDA the down First QX and compared year for was

bookings correspond lower Our strength seasonality, has the the due of business, margins. adjusted half with the Global of EBITDA lower second margin expenses in higher the during Knowledge of to benefited year which the the and year expenses where from first half relative higher

net the and $XX for the Our million for quarter was combined loss million half. $XX first GAAP

debt the and go-forward annualized approximately our will our $XX million. cash lower interest financing and reduced Given be refinancing corresponding paydown costs, to

the to a in cash quarters. terms of periods will in In our expect fourth our generated such and On the is after in and billings we more EBITDA free is flow basis, first free that of as move of highest convert collected cash QX. cash adjusted we long-term typically to timing continue QX flow fiscal quarter billing flow. Cash XX% forward, first occur approximately

of XX and is point issue our floor current excluding plus rate refinancing, discount balance point interest X.X%, our at debt a of issuance costs LIBOR basis spread. basis Following XXX an comprised original million, debt $XXX gross

at end balance cash was Our $XX quarter million.

have $XX facility. leverage net based We $XXX also X.Xx capacity million accounts on is our and EBITDA receivable credit year prior X.Xx Gross of million. adjusted remaining leverage on of is

increase was of individual for $XX QX million, of terms or an Content million In X%. $X bookings Skillsoft for segments,

were of increase $X First an million half bookings or million, X%. $XXX

XX% end XX%. QX, retention At on our dual of combined dollar dual deployment. is And XXX%. ARR Content importantly, rate retention Our Percipio the is of rate Percipio dollar the or deployment was

Jeff deployment XX% recurring Percipio annual year. our As or to the of Skillsoft expect by dual fiscal have we mentioned, on end the Content based of revenue

to to expect continue migrate see we to improving business As we rates. Percipio, renewal

between customers $XX the half for first in bookings and the track deliver were million. year, to million we Content for this. customers the new $X are for of $XX Also, on and time merger the through be business announcement, to bookings new believe we QX we At million estimated

team and year increase our pipeline. an see new its sales focused build the Content as bookings acquisition out to in on to expect new We customer continues throughout

revenue Skillsoft Adjusted million. half revenue $XX the $X of in a a million, first decrease was was for million. lower $X The driven in million, QX And decrease $XXX by of year. Content was decrease adjusted bookings prior

and between delay portion revenue of the a contracts, bookings for year. into booking significant in annual the following revenue Given subscription flow GAAP recognition

bookings growth to fiscal GAAP as trajectory support current the revenue expect We recognition year an improving in move into XXXX. year we of

Global million, QX an for was $XX in of $XX million increase or Knowledge Bookings XX%.

shift First bookings has of to a $XX million, COVID recovery $XXX XX%. QX. in prior improvement total classroom more from Global better from also than million Virtual was Global and to training headwinds training, an the experienced half training by transition continues or digital bookings year. of Knowledge margin in-person The virtual were which XX% represented in structure-led Knowledge to characteristic. and driven a increase

of an million Knowledge or Adjusted for QX revenue Global XX%. for million, $XX $XX was increase

revenue $X X%. million, adjusted million or increase of was half an First $XXX

XX%. turning were SumTotal. Bookings increase $X to or of an million Now million, $XX

was position year, million, to customers continues decrease strong a this with year. last development, turn market of And and learning with decrease business million, XX current Adjusted of reporting talent it Jeff. first $X a decrease notable of revenue was of $X wins million. SumTotal half customer In we the $XX that, had $XX compliance in in complex maintain servicing revenue I'll were a a versus adjusted million, logos. With $XX number bookings half First million a million. back requirements. to new $X

Jeffrey Tarr

Ryan. Thanks,

you've maintaining and by at As our on guidance our we adjusted first increasing and $XX million are guidance strategic half, midpoint on the heard EBITDA. for midpoint delivering at strong year for while are Based bookings the today, increasing $XX financial million commitments. our full our by revenue we adjusted

updated and for adjusted $XXX is The $XXX $XXX the first million. is year. outlook revenue bookings to better-than-expected million, our year half reflects for million the in of updated increase Our to the outlook million $XXX performance

Our guidance also considers that bookings weighted are quarter. to fourth heavily the

costs million corporate outlook for million. industry, $XXX close, digital to growth better-than-expected due delay the adjusted between of at business a performance. combination the realizing EBITDA extend reflects synergies This position as D&O margin leadership we in insurance Our in and Knowledge's of Global remains the and the unchanged $XXX our impact investments higher-than-anticipated transaction timing learning

line term, is In content, to drive the focus growth. Accordingly, platform as driver bookings in creation. near of go-to-market the we continue primary value intend our and shareholder foundational investments most making on important to growth top and revenue

valued tomorrow. preparing we While our margin solutions, focus to to remain achieve and the workforce and an sustaining our the and learning vision doing, most top is our will of believe long-term achieving provider customers so accelerating targets. In on skills today profile EBITDA with line committed being the growth, of highly of we for deliver shareholders value we near-term attractive

for the open I'll questions. call that, With

Operator

Instructions] first Davidson. from is Our Peter Heckmann of question [Operator D.A.

Peter Heckmann

the within contribute growth results. the And bookings the Can FedRAMP the about in achieve quarter? bookings did talk -- company certification? to did Nice that you Percipio,

Jeffrey Tarr

made necessary. We've FedRAMP certification work the great all Peter. The progress. Thanks, has completed

what's And now we've Process. what's FedRAMP moved called FedRAMP called from In to so Ready

It's in phase the last phase. we're certification. FedRAMP administrative a prior So to final

track. on we're So

Peter Heckmann

you it. run it. provide for rate Pluma? it. Got then Got And so, a revenue number If did missed I

Jeffrey Tarr

did not. we but high-growth business, stage. is No, a Pluma it's early

quarter was So in the the contribution immaterial.

Operator

Knop B. Our from Katherine is next question Riley. of

Katherine Knop

'XX? XXX% We for And then track rate be the by adoption what were entities. just Percipio near looking adoption to fiscal year Knop with know the federal to Katherine of end still is is This Sharma. of on was Percipio overall Raj on

Jeffrey Tarr

question the first the missed little a part So so garbled, I it. was of

deployment the part, of we to perhaps are complete we fiscal Let and you Percipio to again. Percipio dual did second are me the the first But hit the this your to both first hit end and answer just the migration part -- XX% year I achieve and then believe -- your by our I question, target, we to which year. hear, of conversion on by hear. And end the track which next part of couldn't fiscal can

Katherine Knop

was the with of rate what entities? Percipio adoption federal Just

Jeffrey Tarr

point, is not Percipio at yet Well, FedRAMP this certified.

after not occur which widely we certification, that this later year. So yet FedRAMP deployed inside U.S. it's the to the we're expecting government, expect

Operator

of is question next Our from Raimo Barclays. Lenschow

Raimo Lenschow

demand bigger on what area, can customer we picture Congrats So Global Jeff, from in Knowledge, like terms there the talk -- of you out industry in digital? in appetite pandemic, As changed now? the the kind out staying years? me as over are how your back well. seeing to terms versus of just to you the are the are in you of and of terms more classrooms refocus X.X last of going also coming of what has picture terms seeing

Jeffrey Tarr

customers. in Knowledge retention business, see overperformance seeing in We've we're Global So seen Knowledge, in cycle we dollar tighter the and to think can primarily sales. the big revenue an and in our you and most bookings that new the and strong Global adoption because numbers rate. by our the Raimo, is seeing was sales just the a seeing are momentum bookings improvement apparent I in The lift. from bookings We're flow

in backwards that revenue. during We've saw in the of with we strong we EMEA. recovery been mix seen that pleased seen, also that any with COVID we've haven't improvement especially terms very the And pleased in step I'm digital

revenue XX% of remains north digital. fact, the In of

is and level. may So counting on some as come performing higher-margin will is. pleased that It digital back? not revenue it, back it as at classroom come We're we're the well

Raimo Lenschow

Perfect.

and as the you do convert you game? little about end that how XXX% one there. about think retention your base follow-up. needed to like rate then over, Is room Okay. the client kind have but If Percipio there's to there? better just I upside, for you seems the bit I a that like on industry think understand like you of And It

me. could would to speak If that, you nice. from be that congrats And

Jeffrey Tarr

My progress, and Percipio. the And of Thank it's why on a rate. so is Raimo. XXX% dollar reason focused the just is get it's arrival. been XXX%, migrating We've but that see is, improvement, getting to view we you, I no reason not customers are business point I to say this say, retention can't And first of all, started.

back the So making increases, migration we've held on price priority. first

talked just the of getting to investment localization investing making improving with We're dev on in started example. investment, in on our We content. we work for and product strengthen product. We're tech how customers, about also

things have XXX% better. a So is a retention target, to is rate we will impact we're what time the on that which positive and or best-in-class doing dollar over believe reasonable believe I us take

Operator

is next Schappel [Operator from Instructions] Company. of Mark Benchmark question Our the

Mark Schappel

I here. to the Congrats little a integration to Jeff, so bring may you this. just already quarter on the up us on on Workday could you where you apologize the call if I But date stand jumped Percipio? have covered bit late,

Jeffrey Tarr

a next beta to of were Well, update. Workday and call, just with didn't with of give the I'm particular. in Mark. -- an the integration Workday We Skillsoft to gave I was it but that see think year on but its it week March last talk we prior commitment Percipio they customers happy in about really communicated pleased Thanks, to writing Yes. to main date customers that. to And its you

in pleased formally but committed is We not has about feel is that. the good fast. LMS base, And Workday growing we're the to customer progress. That's it largest good our integration. that Workday

So that's we stand. where

Mark Schappel

little company discuss shifting I in the a it maybe that Jeff, thoughts, you embrace where to right? are micro-learning, on Great. believe if wondering company's the just if then your focus with And approach is was customers could was or competitive-wise the to continuing seeing. gears wondering just us And give bit. respect you're micro-learning? I you

Jeffrey Tarr

levels leader Well, much general we believe a and and rates, our in We're of Micro-learning micro-learning enterprise. in digital completion we're to much higher the many And as the in drives we're we quarter why engagement. believe for -- this we the that's believe the of the leader. we're to future. learning higher success one we contributors positioned delivering strong result, growth the believe

Mark Schappel

a Great. then, business the just could about talk Okay. plans bit and Jeff, SumTotal you the in it little you And going where see for forward? fitting

Jeffrey Tarr

we SumTotal Well, And multiple, LMSs we're winning seen world. which quarter, good this -- were in the is execution more. We've a organization. in improved the SumTotal head-to-head pleased XX been very most really with competition of Thanks. the we've that business. I'm won the actually And accounts with past leading

progress. terrific that's So

that business, is to growth is committed the good good of and the which saw You in bookings, to being so critical feel very we're we about and stewards our portfolio, SumTotal. It customers. part our of

Operator

Arvind question Sandler. Our of next Ramnani Piper from is

Arvind Ramnani

learning interest the competition increased in question, But space? kind large as with of kind say, that enterprise of and don't viewing like have. of at of you you sort mean, your overall certainly interest positive a certainly -- amount the companies Or some private backdrop, they for had in scale remote funding would increased. have in in of Certainly, on are at I I content -- even has you terms for the like or looking education environment relationships of space of learning kind that funding this kind more valuation and that I and your of that of funds these, kind space? digital of overall have look do as the

Jeffrey Tarr

the a we itself large healthy public The fact balance and advantage. compelling in that is and believe lends enterprise that our sufficiently currency important that also future to that's value have Arvind, creation. competitive we lead a an also sheet

ultimately. multiple close and will going stronger that, for with that shareowners believe a Now We believe to we that helpful create reflect performance value and industry. that currency be with in the that. we we'll obviously, continued are execution, it'd do we gap multiple have our as do our others to And for

Arvind Ramnani

the QX. largely a had on provided itself, quarter the on same you QX. bit just had up guidance robust hopped when on And I taken by Perfect. this, kind look guidance, late, beat you that of sorry then was but a your already Perfect. you at quite in if the by I -- and color the And

you conservatism some kind that Or year kind realistic baked there's guidance you level guidance? it's would of of full So more do say it's -- of the kind you've of think provided? into

Jeffrey Tarr

And that quarter raise also pleased the pleased to say I'd the we doing. to half we're we're momentum were first able and and that What the guidance first is that we're I'm the the business. in with with confidence seeing

do As I the are of at the to fact business. fourth weighted in I also mindful that the bookings second see quarter. I'm momentum the look half, heavily

So and are, you and to and we update we we'll are have we more great soon it. as the share to our business about feel as where ability grow

Arvind Ramnani

Certainly, for sort changes XX, of concerns last like variant question there's of And were as of and and a lot whatnot. around month Perfect. made last entering still the we're the months, XX cyclical me. Delta a there pandemic. result But the

the this the secular looking fixes out So causing opposed of more learning? as the for as pandemic to as -- pertains -- out to guidance, over look permanent it prolonged changes over mean, X but as I next X more of to going to some some nature look years, next are has you some quick digital certainly, you in sort be not

Jeffrey Tarr

we're moved And corporate learning the going environment digital first. in I this have to world believe from digital backwards. believe that classroom of the world of in we I first don't

corporate an As customers, university shut a them delivery. permanent talk many have I made of down what and to I'm hearing were shift online to campuses

it also online ease we that allows the that from in-sourced with the outsourced to bring to our believe customers brings benefit shift and of delivery solution. scale moving I to to from

So long-term of I of we'll about headroom be this great feel still the prospects continued for and growth industry. that a beneficiary market They're much that.

my view. So that's

Operator

question-and-answer Jeff back the to now session. We Tarr of for have I reached will turn end over remarks. the call closing the

Jeffrey Tarr

communicate that and to who's today. business want I spent who lot you the clients. so so thanks Well, analysts to Super. everyone appreciate learn our much. of call on thank your I can are the here And and all first effort have to a

to he's which he who role interim call wanted been a in. And full-time on Officer, this Ryan in He's a Accounting him. with and terrific, continue additional role going I'm the Chief to is addition on to to also his this CFO. just to job thank forward take taken -- as to work Murray, has I moment of continuing looking

to for business. as role very knows, corporate He's Gruskin in want lead his our a to Jim strategically and our also interim Head our moving development everyone IR. thank work important as into organization, of that's I

Many him us will Gary And He's to CFO us of joining in here of later don't introducing you know of very be you of closing Ferrera Markit. finally, looking be and the this Boyer building of to upon IHS soon. Eric month. joining the those will who today. I'm forward S&P's SVP actually as as then him, acquisition IR

sooner. So looking thank quarter, seeing if forward here not everyone, and I'm you, to next back you

Operator

conference. today's concludes This

Thank you have great time. disconnect your day. at lines a this for participation, You your may and

Skillsoft (SKIL) 14 Sep 212022 Q2 Earnings call transcript