Skillsoft Corp.

Thank you for standing by, and welcome to Skillsoft's third quarter fiscal 2025 results conference call. At this time, all participants are in a listen-only mode. After the speakers present, there will be a question and answer session. Please note that today's call is being recorded. I would now like to hand the conference over to your first speaker today, Stephen Poe, Investor Relations. Thank you. Please go ahead.

Thank you, operator. Good day and thank you for joining us to discuss our results for the third quarter ended October 31, 2024. Before we jump in, I want to remind you that today's call will contain forward-looking statements about the company's business outlook and our expectations, including statements concerning financial and business trends, our expected future business and financial performance, financial condition, and market outlook. These forward-looking statements and all statements that are not historical facts reflect management's current beliefs and expectations as of today and and therefore are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of the material risks and other important factors that could affect our actual results, we refer you to our most recent Form 10-K filing with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements or information which speak as of their respective dates. During the call, unless otherwise noted, all financial metrics we discuss will be non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures included in today's commentary to the most directly comparable GAAP financial measures, as well as how we define these metrics, is included in our earnings press release, which has been furnished to the SEC and is also available on our website at www.skillsoft.com. Following today's prepared remarks, Ron Hovsupian, Skillsoft's Executive Chair and Chief Executive Officer, and Rich Walker, Skillsoft's Chief Financial Officer, will be available for Q&A. With that, it's my pleasure to turn the call over to Ron.

Thanks, Stephen. Good afternoon, and thank you for joining us. I am pleased with our fiscal third quarter results, which demonstrate the real progress we are making on the transformation plan we laid out earlier this year. As a reminder, our transformation strategy focuses on two key principles. Fix the Basics and Invest to Grow. Fix the Basics aims to improve operational execution for growth and margin expansion. Invest to Grow reallocates resources strategically to achieve above market growth rates. As we work towards becoming the number one talent development partner for both organizations and learners, our near-term commitments include the following. driving at least 45 million in annualized expense reductions this fiscal year on a run rate basis, with 40 to 50% of these savings being invested back into the business, returning to top line growth and continued margin expansion in fiscal year 2026, and generating positive free cash flow for the full fiscal year 2026. Putting it all together, we expect to deliver above market growth and deliver a leading financial profile in the coming years. Let me update you on our progress and action so far. We've implemented the new business unit structure with two general managers now accountable for their business unit performances. We're making quicker decisions closer to the customer and markets and early results are promising. We were able to do this while staying on track with our resource allocation efforts, and we are seeing customer validation of our strategy. During the quarter, we delivered key new customer wins, including a successful customer upgrade solution that was fueled by Skillsoft's AI Accelerator program. NTT Data, a global business and technology services organization, set out on a journey to build a curricula to upskill their global leaders, frontline teams, consultants, and more in AI. Understanding AI technology was only half the story. They were determined to get ahead of the curve to better serve their clients. Leveraging our investment in AI training resources, the Skillsoft's European team and North American team Teams collaborated with the global NTT data talent development teams on a role-based solution with tiered learning programs from beginner to expert. The Microsoft AI program powered by Skillsoft helped as our proof point and our expertise in this area. Skillsoft also secured a seven-figure multi-year deal with a top 30 global brand in media and entertainment. With over 200,000 employees, the company is in a transformation to become a skills-based organization, and Skillsoft will assist with a skill strategy, skill measurements, and a customized AI role-play simulations, which we refer to as CASEY. These are two examples of customers that are working with Skillsoft to achieve workforce transformation and create analytics to inform workforce planning along with the talent development lifecycle. Now I would like to give an update on some of our product innovations and go-to-market improvements. In the TDS business unit that serves the individual learner and the organization, we have delivered four new innovations to the market. First, AI Coaching Assistant. Helps leaders develop a personalized coaching plan. The average time to complete a coaching plan decreased from 13 days to just three days, a 77% reduction. Skillsoft launched two AI assistants to personalize the learning experience. One curates learning in response to questions across our organizational platform, Precipio, and the other helps teach the learner how to code on our learner tool set, Codecademy. Third, we introduced the new compliance suite that simplifies the process of managing a compliance cycle and improves the user experience. This change resulted in a 48% increase in Net Promoter Score, which will aid in improving our retention. Finally, we introduced new end-to-end certification paths, both on our organizational platform, Precipio, and our learner platform, Codecademy that guide learners end-to-end in getting a globally recognized certification from companies like AWS, Microsoft, and many others. Skillsoft helps learners prepare for 90 different certification programs. In the Global Knowledge Business Unit, where we deliver interactive learning experiences virtually or physically, we moved the go-to-market resources to a more regionally focused model. This new approach aided in the stabilization as demonstrated by the sequential revenue improvement. Under the new general manager's focused leadership, the year-over-year decline in GK revenue improved to a 10% drop as compared to a 20% drop in the previous two quarters. So overall, our execution in Q3 continues to grow my confidence in the business. We delivered two critical proof points in this quarter. First, we delivered positive free cash flow. Secondly, we demonstrated go to market improvement in GK. Therefore, we are raising and tightening our fiscal year 25 revenue guidance range. In closing, while we still have much more to do, the actions taken to realign our organization are taking hold and are evident in our financial results. We made significant strides forward this quarter. With that said, let me now hand the call over to Rich to cover our financial results in more detail.