Consistent Profitability and Improved Adjusted EBITDA Margins
Despite a lower revenue base, Skillsoft delivered consistent profitability and improved adjusted EBITDA margins due to successful expense reduction and operational improvement initiatives. Adjusted EBITDA was $28.3 million, flat compared to last year, with a margin of 22% compared to 21.4% last year.
Transformation and Strategic Investments
Skillsoft is one year into its transformation plan, showing encouraging results. The company has delivered $45 million in expense reductions and has begun to stabilize its core TDS enterprise segment. Key transformation actions include creating a dual business unit structure, operational execution improvements, and building a talented bench of leaders.
TDS Enterprise Solution Growth
The TDS enterprise solution demonstrated a fourth consecutive quarter of revenue growth. TDS performance benefits from a market shift towards comprehensive talent development solutions.
Customer Wins and Demand for Scalable Solutions
Skillsoft secured significant customer wins in Q2, including partnerships with a global athletic apparel brand, a semiconductor manufacturer, and a European digital services provider. These wins reflect demand for scalable learning solutions.
Precipio Platform Momentum
The Skillsoft Precipio platform showed significant growth with technology learners up 50% year over year, AI learners up 74%, and AI learning hours up 158%.