Oppenheimer Reiterates Perform Rating on Skillsoft Corp. (SKIL)

Oppenheimer analyst Ken Wong reiterated a Perform rating on Skillsoft Corp. (NYSE: SKIL).

The analyst comments "Skillsoft posted F2Q revenue and adj. EBITDA ($132M/$28M) above consensus expectations ($131M/$24M) despite tighter budgets and decreased upgrade/renewal linearity. ILT execution remained static sequentially (-20%). LTM retention declined -1pt q/q to 98% (Public sector / SMB). Management reiterated the FY25 outlook (rev: $510-$525M/adj. EBITDA: $105-110M) as expected. CEO Hovsepian highlighted early gains from the shift to a dual business structure with some customer win-backs. FY25 FCF should mirror FY24 levels (-$15M). It remains too early to gauge success of the business realignment, but hiring three new execs should advance the cause. We continue to take a wait and see approach to FY25 outlook with retention continuing to inch lower sequentially, and FCF objectives largely dependent on the seasonally heavy F4Q."

For an analyst ratings summary and ratings history on Skillsoft Corp. click here. For more ratings news on Skillsoft Corp. click here.

Shares of Skillsoft Corp. closed at $15.00 yesterday.

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