Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Item 7.01 | Regulation FD Disclosure. |
On March 15, 2022, the Company issued a press
release announcing the commencement of the Company’s syndication of a $160 million senior secured term loan B facility, which will
be used to finance a portion of the cash consideration of the Company’s pending acquisition of Codecademy, a leading online learning
platform for technical skills. A copy of the press release and certain related slides are furnished as Exhibits 99.1 and 99.2 to this
Current Report on Form 8-K and incorporated herein by reference.
| Item 9.01 | Financial Statements and Exhibits |
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: March 15, 2022
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SKILLSOFT CORP. |
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By: |
/s/ Gary W. Ferrera |
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Gary W. Ferrera |
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Chief Financial Officer |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Skillsoft Commences Incremental
Term Loan Syndication to Fund Codecademy Acquisition
Transaction Expected to Close
in April 2022
Raises FY 2022 Outlook
BOSTON – March 15, 2022 – Skillsoft
Corp. (NYSE: SKIL) (“Skillsoft” or the “Company”), a global leader in corporate digital learning,
today commenced a $160 million senior secured incremental term loan B facility syndication. This facility will be used to finance
a portion of the cash consideration of Skillsoft’s pending acquisition of Codecademy, a leading
online learning platform for technical skills.
Codecademy’s
innovative and popular learning platform has provided high-demand technical skills to approximately 40 million registered learners in
nearly every country worldwide. The platform offers interactive, self-paced courses and hands-on learning in 14 programming languages
across multiple domains such as application development, data science, cloud and cybersecurity. The combination of Codecademy with Skillsoft’s
existing technical skills offering is expected to create a leader in the high-demand, high-growth Technology & Developer digital
learning segment.
As previously
announced, the acquisition is expected to be significantly accretive to Skillsoft’s bookings and revenue growth, and accretive
to gross margin upon closing. Skillsoft expects revenue synergies primarily from cross-selling Codecademy’s products to Skillsoft’s
large enterprise customer base, and that the acquisition will be accretive to Skillsoft’s EBITDA over the long term.
Updated Full
Year Fiscal 2022 Outlook (fiscal year ended January 31, 2022)
| |
Previous Outlook | |
Updated Outlook |
Bookings | |
$700 million to $720 million | |
$716 million to $721 million |
Adjusted Revenue | |
$685 million to $700 million | |
$693 million to $698 million |
Adjusted EBITDA | |
Approximately $165 million | |
Approximately $167 million |
The Company
will provide its fiscal year 2023 outlook when it reports its fourth quarter and full fiscal year 2022 results on April 6, 2022.
The transaction
is subject to approval by Skillsoft shareholders and the satisfaction of customary closing conditions. Additional information is available
in a Definitive Proxy Statement filed with U.S. Securities and Exchange Commission on February 28, 2022.
Additional
Information and Where to Find It
This communication
may be deemed solicitation material in respect of the proposed acquisition of Codecademy by the Company. This communication does not
constitute a solicitation of any vote or approval. In connection with the proposed transaction, the Company has filed with the Securities
and Exchange Commission (the “SEC”) and mailed or otherwise provided to its shareholders a proxy statement regarding the
proposed transaction. The Company may also file other documents with the SEC regarding the proposed transaction. This document is not
a substitute for the proxy statement that has been filed or any other document that may be filed by the Company with the SEC.
BEFORE MAKING
ANY VOTING DECISION, THE COMPANY’S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT IN ITS ENTIRETY AND ANY OTHER DOCUMENTS FILED
BY THE COMPANY WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE THEREIN BEFORE MAKING ANY VOTING
DECISION WITH RESPECT TO THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES
TO THE PROPOSED TRANSACTION.
Any vote in
respect of resolutions to be proposed at the Company’s stockholder meeting to approve the proposed transaction or related matters,
or other responses in relation to the proposed transaction, should be made only on the basis of the information contained in the Company’s
proxy statement. Shareholders may obtain a free copy of the proxy statement and other documents the Company files with the SEC through
the website maintained by the SEC at www.sec.gov. The Company makes available free of charge on its investor relations website at https://investor.skillsoft.com/
copies of materials it files with, or furnishes to, the SEC.
No Offer
or Solicitation
This communication
is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation
of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation
of any vote or approval in any jurisdiction, pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance
or transfer of securities in any jurisdiction in contravention of applicable law.
Participants
in the Solicitation
The Company and its directors,
executive officers and certain employees and other persons may be deemed to be participants in the solicitation of proxies from the Company’s
shareholders in connection with the proposed transaction. Security holders may obtain information regarding the names, affiliations and
interests of the Company’s directors and executive officers in the Company’s Report on Form 8-K and Form 8-K/A
filed on June 17, 2021. To the extent the holdings of the Company’s securities by the Company’s directors and executive
officers have changed since the amounts set forth in the Company’s Form 8-K filed on June 17, 2021, such changes have
been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the
interests of such individuals in the proposed transaction has been included in the proxy statement relating to the proposed transaction
filed with the SEC. These documents may be obtained free of charge from the SEC’s website at www.sec.gov and the investor relations
page of the Company’s website at https://investor.skillsoft.com/.
Non-GAAP
Financial Measures and Key Performance Metrics
We track several
non-GAAP financial measures and key performance metrics that we believe are key financial measures of our success. Non-GAAP measures
and key performance metrics are frequently used by securities analysts, investors, and other interested parties in their evaluation of
companies comparable to us, many of which present non-GAAP measures and key performance metrics when reporting their results. These measures
can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight
into key components of U.S. GAAP financial disclosures. For example, a company with higher U.S. GAAP net income may not be as appealing
to investors if its net income is more heavily comprised of gains on asset sales. Likewise, excluding the effects of interest income
and expense moderates the impact of a company’s capital structure on its performance. However, non-GAAP measures and key performance
metrics have limitations as analytical tools. Because not all companies use identical calculations, our presentation of non-GAAP financial
measures and key performance metrics may not be comparable to other similarly titled measures of other companies. They are not presentations
made in accordance with U.S. GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative
to profit or loss for the period determined in accordance with U.S. GAAP or operating cash flows determined in accordance with U.S. GAAP.
As a result, these performance measures should not be considered in isolation from, or as a substitute analysis for, results of operations
as determined in accordance with U.S. GAAP.
We do not reconcile
the forward-looking non-GAAP financial contained in the “Updated Full Year Fiscal 2022 Outlook” in this press release measures
to the corresponding U.S. GAAP measures, due to variability and difficulty in making accurate forecasts and projections, certain information
not being ascertainable or accessible, and because not all of the information necessary for a quantitative reconciliation of these forward-looking
non-GAAP financial measures to the most directly comparable U.S. GAAP financial measure is available to us without unreasonable efforts.
For the same reasons, we are unable to address the probable significance of the unavailable information. We provide non-GAAP financial
measures that we believe will be achieved, however we cannot accurately predict all of the components of the adjusted calculations and
the U.S. GAAP measures may be materially different than the non-GAAP measures.
Forward Looking
Statements
This document
includes statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended
to be covered by the safe harbors created by those laws. These forward-looking statements include information about possible or assumed
future results of our operations, the timing and occurrence of the closing of the transaction, anticipated transaction benefits, and
our updated full year fiscal 2022 outlook including bookings, adjusted revenue, and adjusted EBITDA. All statements, other than statements
of historical facts, that address activities, events or developments that we expect or anticipate may occur in the future, including
such things as our outlook, our product development and planning, our pipeline, future capital expenditures, financial results, the impact
of regulatory changes, existing and evolving business strategies and acquisitions and dispositions, demand for our services and competitive
strengths, goals, the benefits of new initiatives, growth of our business and operations, our ability to successfully implement our plans,
strategies, objectives, expectations and intentions are forward-looking statements. Also, when we use words such as “may,”
“will,” “would,” “anticipate,” “believe,” “estimate,” “expect,”
“intend,” “plan,” “projects,” “forecasts,” “seeks,” “outlook,”
“target,” goals,” “probably,” or similar expressions, we are making forward-looking statements. Such statements
are based upon the current beliefs and expectations of Skillsoft’s management and are subject to significant risks and uncertainties.
Actual results may differ from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its
nature.
There are important
risks, uncertainties, events and factors that could cause our actual results or performance to differ materially from those in the forward-looking
statements contained in this document, including:
· | the impact of changes in consumer spending patterns, consumer preferences,
local, regional and national economic conditions, crime, weather, demographic trends and
employee availability; |
· | the impact of the ongoing COVID-19 pandemic (including any variant)
on our business, operating results and financial condition; |
· | fluctuations in our future operating results; |
· | our ability to successfully identify, consummate and achieve strategic
objectives in connection with our acquisition opportunities and realize the benefits expected
from the acquisition; |
· | the demand for, and acceptance of, our products and for cloud-based
technology learning solutions in general; |
· | our ability to compete successfully in competitive markets and changes
in the competitive environment in our industry and the markets in which we operate; |
· | our ability to market existing products and develop new products; |
· | a failure of our information technology infrastructure or any significant
breach of security, including in relation to the migration of our key platforms from our
systems to cloud storage; |
· | future regulatory, judicial and legislative changes in our industry; |
· | our ability to comply with laws and regulations applicable to our
business; |
· | the impact of natural disasters, public health crises, political
crises, or other catastrophic events; |
· | our ability to attract and retain key employees and qualified technical
and sales personnel; |
· | fluctuations in foreign currency exchange rates; |
· | our ability to protect or obtain intellectual property rights; |
· | our ability to raise additional capital; |
· | the impact of our indebtedness on our financial position and operating
flexibility; |
· | our ability to meet future liquidity requirements and comply with
restrictive covenants related to long-term indebtedness; |
· | our ability to successfully defend ourselves in legal proceedings;
and |
· | our ability to continue to meet applicable listing standards. |
Additional factors
that may cause actual results to differ materially from any forward-looking statements regarding the transaction between Skillsoft and
Codecademy include, but are not limited to:
· | our ability to timely satisfy the conditions to the closing of the
transaction contemplated in the definitive agreement; |
· | our ability to obtain financing for the cash consideration required
to complete the transaction; |
· | occurrence of any event, change or other circumstances that could
give rise to the termination of the definitive agreement; |
· | the possibility that the consummation of the acquisition is delayed
or does not occur, including the failure to obtain stockholder approval of the transaction; |
· | our ability to realize the benefits from the acquisition; |
· | our ability to effectively and timely incorporate the acquired business
into our business operations; |
· | risks that the acquisition and other transactions contemplated by
the definitive agreement disrupt current plans and operations that may harm the parties’
current businesses; |
· | the amount of any costs, fees, expenses, impairments and charges
related to the acquisition; and |
· | uncertainty as to the effects of the announcement or pendency of
the acquisition on the market price of the Company’s common stock and/or on the parties’
respective financial performance. |
The foregoing
list of factors is not exhaustive and new factors may emerge from time to time that could also affect actual performance and results.
For more information, please see the risk factors included in the Company’s Amendment No. 1 to its Registration Statement
on Form S-1 declared effective by the SEC on July 29, 2021, and subsequent filings with the SEC.
Although we
believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the
forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent
in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by
us that our objectives and plans will be achieved. Annualized, pro forma, projected and estimated numbers are used for illustrative purpose
only, are not forecasts and may not reflect actual results. Additionally, statements as to market share, industry data and our market
position are based on the most currently available data available to us and our estimates regarding market position or other industry
data included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various
factors, including as set forth above.
Our forward-looking
statements speak only as of the date made and we will not update these forward-looking statements unless required by applicable law.
With regard to these risks, uncertainties and assumptions, the forward-looking events discussed in this document may not occur, and we
caution you against unduly relying on these forward-looking statements.
About Skillsoft
Skillsoft (NYSE: SKIL) is a global leader in corporate digital learning,
focused on transforming today’s workforce for tomorrow’s economy. The Company provides enterprise learning solutions designed
to prepare organizations for the future of work, overcome critical skill gaps, drive demonstrable behavior-change, and unlock the potential
in their people. Skillsoft offers a comprehensive suite of premium, original, and authorized partner content, including one of the broadest
and deepest libraries of leadership & business skills, technology & developer, and compliance curricula. With access
to a broad spectrum of learning options (including video, audio, books, bootcamps, live events, and practice labs), organizations can
meaningfully increase learner engagement and retention. Skillsoft’s offerings are delivered through Percipio, its award-winning,
AI-driven, immersive learning platform purpose built to make learning easier, more accessible, and more effective. Learn more at www.skillsoft.com.
Investors
Eric Boyer
eric.boyer@skillsoft.com
Media
Nancy Coleman
nancy.coleman@skillsoft.com
Exhibit 99.2
TRANSACTION SUMMARY 1 TRANSACTION OVERVIEW Skillsoft Corp (“Skillsoft”, “SKIL” or the “Company”), is a global leader in digital learning, focused on transforming today’s workforce for tomorrow‘s economy Skillsoft operates in three main content categories: Leadership & Business Skills, Technology & Developer and Compliance On December 21, 2021, Skillsoft entered into a definitive agreement to acquire Codecademy for stock and cash (the “Transactio n”) . Current transaction value is approx. $411 million. (1) Skillsoft intends to fund the transaction including expenses with the following: ▪ $160M Incremental Term Loan o Company will utilize the early SOFR opt - in documentation change with the existing facility migrating to SOFR via a negative consent amendment. The CSA for a one - month rate is 11.448 bps, for a three - month rate is 26.161 bps, for a six - month rate is 42. 826 bps and for a twelve - month rate is 71.513 bps ▪ $60M of balance sheet cash ▪ $206M of New Equity to Codecademy Shareholders (1) Prosus , Skillsoft’s largest shareholder and significant minority shareholder in Codecademy , will receive 100% equity consideration TARGET OVERVIEW Codecademy is a leading online learning platform for technical skills, offering interactive, self - paced courses in categories re lated to the growing digital economy. Codecademy has served approximately 40 million users ▪ Caters to both B2C (primarily “Prosumers”) and B2B organizations Transaction combines Skillsoft’s leading reach / footprint with Codecademy’s differentiated capabilities in training high - demand skillsets FINANCIAL IMPACT* Projected to be immediately accretive to Skillsoft’s PF bookings, revenue growth and gross margin upon closing Net Debt/PF Adj EBITDA of 4.1x 2022E (2) PF Adj. EBITDA of $151M (3) , declining to approx. 3.9x at - close, inclusive of expected cash generation in February - March 2022 APPROVAL & CLOSING Transaction expected to close in April 2022, subject to customary closing conditions including regulatory approvals and Share hol der approval 1. Equity consideration per merger agreement; Transaction value impacted by collar on equity consideration. 2. Churchill II (SPAC entity) utilized a December 31st fiscal year end prior to its combination with Skillsoft. This de - SPAC result ed in the adoption of Skillsoft’s fiscal year end, January. 3. Preliminary and expected to be approximately $151M. * Total Debt / PF EBITDA, Net Debt / PF EBITDA and PF Adjusted EBITDA are non - GAAP measures. See Appendix for discussion of non - GAAP measures used in this presentation and reconciliations.
Note: Skillsoft FY2022E outlook preliminary and subject to change. Codecademy financials shown on historical 12/31 fiscal yea r e nd basis. * Indicates non - GAAP measures. See Appendix for discussion of non - GAAP measures used in this presentation and reconciliations. 1. Equity consideration per merger agreement; Transaction value impacted by collar in equity consideration. 2. Equity value bas ed on 3/11/2022 share price of $6.02. 3. Includes $65m of cash used to pay down the AR Facility and ~$34m of expected cash generation in February and March. 4. Fo r i llustration – FY2022E: ~$167M. 5. Credit agreement leverage metrics exclude AR Facility (which is remote). SOURCES & USES ($M) PRO FORMA CAPITALIZATION ($M) ILLUSTRATIVE TRANSACTION OVERVIEW FY2022E OUTLOOK – PRELIMINARY AND SUBJECT TO CHANGE 2 (1)(2) (2) (1)(2) (3) (5) (4) (5) Sources of Funds Amount % Cash From Balance Sheet $60 14% Incremental Term Loan 160 38% New Equity to Codecademy Shareholders 206 48% Total Sources $426 100% Uses of Funds Amount % Codecademy Purchase Price $411 96% Fees, Expenses & OID 15 4% Total Uses $426 100% Pro Forma Pro Forma % of 1/31/2022E Adj. 1/31/2022E Adj. 3/31/2022E Total Cap. Unrestricted Cash $155 ($60) $95 ($31) $65 AR Facility 75 - 75 (65) 10 First Lien Term Loan 480 - 480 - 480 29% Incremental Term Loan - 160 160 - 160 10% Total Debt $480 $160 $640 - $640 38% Existing Skillsoft Equity 833 - 833 - 833 50% New Equity to Codecademy Shareholders - 206 206 - 206 12% Total Capitalization $1,313 $366 $1,679 - $1,679 100% Pro Forma Pro Forma Operating Metrics 1/31/2022E Adj. 1/31/2022E Adj. 1/31/2022E PF Adj. EBITDA* $167 ($16) $151 - $151 Net Cash Interest Exp. 26 13 39 - 39 Capex 15 2 17 - 17 Leverage Metrics Total Debt / PF Adj. EBITDA* 3.3x 4.7x 4.3x Net Debt / PF Adj. EBITDA* 2.4x 4.1x 3.9x Total Debt / (PF Adj. EBITDA - Capex)* 3.7x 5.3x 4.9x PF Adj. EBITDA / Net Cash Interest Expense* 6.3x 3.9x 3.9x Credit Agreement Leverage Metrics Total Debt / PF Adj. EBITDA* 2.9x 4.2x 4.2x Net Debt / PF Adj. EBITDA* 1.9x 3.6x 3.8x Total Debt / (PF Adj. EBITDA - Capex)* 3.2x 4.8x 4.8x PF Adj. EBITDA / Net Cash Interest Expense* 6.3x 3.9x 3.9x
KEY METRICS ~75% OF FORTUNE 1000 (1) 46M+ LEARNERS 200K+ CONTENT ASSETS SKILLSOFT BY THE NUMBERS Note: FY2022E outlook preliminary and subject to change. 1. Based on sample of customers who have purchased training from Skillsoft or Global Knowledge in the most recent two year perio d. * Indicates non - GAAP measures. See Appendix for discussion of non - GAAP measures used in this presentation and reconciliations . 3 $716M to $721M BOOKINGS ~$167M ADJUSTED EBITDA * FY22E OUTLOOK
PRELIMINARY FY2022E OUTLOOK AND HIGHLIGHTS $693M to $698M Revenue 104% Dollar Retention Rate (Percipio + Dual Deployment) ~$167M Adjusted EBITDA * 24% Margin • Delivered Bookings growth across both core segments (Skillsoft and Global Knowledge) • Advanced platform migration: 88% of Content ARR on Percipio or Dual Deployment • Increased Fortune 1000 penetration to ~75% • Completed new management team • Entered new strategic alliances: Udemy, GetAbstract and GoodHabitz • Closed acquisitions of Global Knowledge and Pluma 4 Note: FY2022E outlook preliminary and subject to change. * Indicates non - GAAP measures. See Appendix for discussion of non - GAAP measures used in this presentation and reconciliations . $716M to $721M Total Bookings 7% Year - over - Year Growth
* Indicates non - GAAP measures. See Appendix for discussion of non - GAAP measures used in this presentation and reconciliations. Note: FY22E outlook preliminary and subject to change. Dual Deployment (DD) reflects customers who are paying for Percipio an d S killport platforms. Percipio reflects customers who are only paying for Percipio products. Legacy platform Skillport reflects customers who are only paying for legacy platform Skillport. Information shown r efl ects FYE January 31st financials (e.g., FYE 1/31/22 shown for CY2021A). 1. Dollar Retention Rate (“DRR”) represents subscription renewals, upgrades, churn, and downgrades in a period divided by the to tal renewable base for such customers for such period. DRR does not include new business for new customers. 5 PERCIPIO VS. LEGACY PLATFORM SKILLPORT PERFORMANCE COMPARISON 13% ~24% ~34% 32% ~51% ~54% 55% ~25% 12% FY20 FY21 FY22E Dual Deployment of Percipio and Skillport Legacy Platform Skillport ($ in millions, except percentages) $327 $317 $321 FY20 FY21 FY22E Percipio + Dual Deployment DRR (1) 106% 101% 104% Skillport DRR (1) 84% 75% 67% Percipio & DD New Business OI (Bookings) $10 $15 $23 Percipio + Dual Deployment ARR $145 $237 $284 ~75% on Percipio or Dual Deploy - ment ~88% on Percipio or Dual Deploy - ment at 1/31/22 Annual Recurring Revenue (Excl SumTotal)* PERCIPIO MIGRATION SUPPORTS IMPROVED REVENUE RETENTION AND MORE NEW BUSINESS FY2022E OUTLOOK – PRELIMINARY AND SUBJECT TO CHANGE # 2
6 SKILLSOFT Q4 2022E OUTLOOK PRELIMINARY AND SUBJECT TO CHANGE Q4 2022E OUTLOOK COMMENTARY BOOKINGS REVENUE* ADJ. EBITDA* • Majority of Skillsoft bookings generated in second half of each year due to customer renewal timing • Revenue lags bookings growth given revenue recognition timing; still meaningful growth over prior year • Shift from classroom to digital in Global Knowledge driving margin improvement 1. For illustration, Q4 2022E preliminary outlook derived from the high end of FY2022E outlook ranges less Q3 2022A YTD. * Indicates non - GAAP measures. See Appendix for discussion of non - GAAP measures used in this presentation and reconciliations.. Comparison vs. Prior Year Change ($M) Outlook (1) Q4 2021A $ % Content $168 $164 $4 3% Global Knowledge 60 53 6 12% Total Bookings (Ex. SumTotal) 227 $217 11 0 SumTotal 41 40 1 3% Total Bookings $268 $256 $12 5% Content $86 $88 ($2) (2%) Global Knowledge 60 55 6 10% Total Revenue (Ex. SumTotal)* 146 $143 4 0 SumTotal 30 31 (1) (4%) Total Revenue $176 $174 $3 2% Adj. EBITDA* $37 $29 $8 27% % Margin 21.0% 16.8%
7 SKILLSOFT FY 2022E OUTLOOK PRELIMINARY AND SUBJECT TO CHANGE FY 2022E OUTLOOK COMMENTARY BOOKINGS REVENUE ADJ. EBITDA* • DRR continues to increase on Percipio/ Dual Deployment; migration ~88% complete • Win rates have increased significantly • Expect the growth in current year bookings to positively impact revenue growth in FY23 • Revenue lags bookings growth given revenue recognition timing; still meaningful growth over prior year • Company continues to invest in content, platform and go - to - market capabilities to support growth 1. For illustration, represents high end of outlook range, $716M - $721M. 2. For illustration, represents high end of outlook ran ge, $693M - $698M. 3. For illustration - FY2022E outlook: ~$167M. * Indicates non - GAAP measures. See Appendix for discussion of non - GAAP measures used in this presentation and reconciliations. Comparison vs. Prior Year Change ($M) Outlook FY 2021A $ % Content $349 $334 $14 4% Global Knowledge 250 214 36 17% Total Bookings (Ex. SumTotal) 599 $549 50 0 SumTotal 123 124 (1) (1%) Total Bookings (1) $721 $672 $49 7% Content $341 $346 ($5) (1%) Global Knowledge 237 217 21 10% Total Revenue (Ex. SumTotal)* 578 $563 16 0 SumTotal 120 128 (9) (7%) Total Revenue (2) $698 $691 $7 1% Adj. EBITDA (3) * $167 $164 $3 2% % Margin 23.9% 23.7%