Skillsoft

SKIL · NYSE

$5.38+$0.48 (+9.80%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $4.90

SKIL analyst rating

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The case for and against

Updated Oct 10, 2024

Bull case

Skillsoft Corp's digital platform, Percipio, demonstrates a robust performance indicated by a Last Twelve Months (LTM) Dollar Revenue Retention (DRR) rate exceeding 100%, reflecting strong customer satisfaction and loyalty. The company anticipates a modest increase in revenue and bookings for FY24, projecting revenues between $555 million and $585 million and bookings ranging from $610 million to $640 million, with expected growth driven by its primarily content-focused segment, which operates with low capital intensity. Moreover, Skillsoft's emphasis on strong renewals, enhanced cross-selling opportunities, and improved retention rates positions it favorably for sustained growth in the evolving corporate learning market.

Bear case

Skillsoft is expected to experience ongoing modest growth in FY24, yet both bookings and revenue have fallen short of market expectations, indicating potential weaknesses in its performance. The company anticipates a slow single-digit revenue contraction in the first half of the year, with a recovery projected for the second half, which raises concerns about its overall financial health. Additionally, the CEO transition and the elimination of bookings guidance may exacerbate investor apprehension, suggesting instability within the company's leadership and future performance.

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