BOSTON - Skillsoft (NYSE: SKIL), a global provider of transformative learning experiences, has expanded its Board of Directors with the appointment of two new members, effective as of Monday. Jim Frankola, a seasoned technology executive, and Fahd Beg, an investment partner with a focus on technology and education, have joined Skillsoft's governance team.
Jim Frankola brings over thirty years of leadership and operational experience, most recently serving as the CFO of Cloudera (NYSE:CLDR), an enterprise data cloud company. He currently sits on the board of Ansys (NASDAQ:ANSS), Inc. and advises early-stage AI companies. Fahd Beg is an investment partner at Prosus (OTC:PROSF) N.V., a prominent technology investor, and serves on the boards of several leading technology firms.
The appointments come as Skillsoft aims to enhance its go-to-market strategy and scale AI-powered learning experiences. Executive Chair Ron Hovsepian expressed confidence in gaining strategic and functional insights from the new directors to deliver greater value to customers and shareholders.
Frankola and Beg's appointments coincide with the departure of Lawrence Illg, who has stepped down from the Skillsoft board after serving since the company went public in June 2021. Hovsepian acknowledged Illg's valuable contributions during his tenure.
Skillsoft, known for partnering with enterprises to prepare employees for the evolving economy, emphasizes the importance of developing and applying new skills in the workplace reshaped by generative AI. The company's focus is on providing learning experiences that not only build skills but also foster a more capable, adaptive, and engaged workforce.
In other recent news, Skillsoft Corp. reported a year-over-year decrease in its Q1 fiscal 2025 revenue, landing at $128 million. Despite this downturn, the company remains steadfast in its full-year revenue guidance, projected between $530 million and $550 million.
Analysts from Oppenheimer maintained a Perform rating on Skillsoft, acknowledging the company's future financial targets and resource reallocation strategy aimed at supporting growth initiatives. Skillsoft also announced a $10 million share repurchase program and a revision of its FY25E revenue outlook to $510-$525 million.
The company also unveiled a partnership with Microsoft (NASDAQ:MSFT) to launch a generative AI skilling program, aiming to boost business productivity and innovation. Skillsoft's management is optimistic about improving their dollar retention rate over the year.
InvestingPro Insights
As Skillsoft (NYSE: SKIL) welcomes new expertise to its Board of Directors, the company's financial health and market performance are key considerations for investors monitoring its potential growth trajectory. Skillsoft's commitment to scaling AI-powered learning experiences is underscored by the latest real-time data and insights from InvestingPro.
InvestingPro Data shows that Skillsoft currently holds a market capitalization of $143.69 million USD, indicating its size and significance in the sector. Despite the company's impressive gross profit margins, which stand at 72.54% for the last twelve months as of Q1 2023, it operates with a significant debt burden that may challenge its ability to make interest payments. This is a crucial factor for stakeholders to consider, given the company's current P/E Ratio of -0.42, reflecting its earnings relative to its share price.
From an investment perspective, Skillsoft's shareholder yield is high, suggesting a potential return to investors through stock price appreciation, dividends, and share buybacks. However, it's worth noting that Skillsoft does not currently pay dividends, as per one of the InvestingPro Tips. Additionally, analysts have recently revised their earnings upwards for the upcoming period, signaling a positive outlook on the company's future earnings potential. With two more InvestingPro Tips available for Skillsoft at InvestingPro, investors can gain deeper insights into the company's performance and prospects.
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