BOSTON - Skillsoft, a major player in transformative learning, has rolled out a comprehensive generative AI (GenAI) skilling program in partnership with Microsoft (NASDAQ:MSFT). The initiative is designed to help organizations and their workforce harness Microsoft AI tools, including Copilot and Azure Open AI, to boost business productivity and innovation.
The program, developed through Skillsoft's AI Skill Accelerator, aims to upskill employees to effectively implement GenAI technology in their daily operations. Skillsoft's Executive Chair, Ron Hovsepian, emphasized the importance of a skilled workforce to leverage the full potential of AI technologies, like Microsoft 365's Copilot, in achieving business goals.
Skillsoft's AI Skill Accelerator offers a blended learning experience that includes on-demand courses, personalized coaching, live instructor-led training (ILT), and hands-on practice labs. An initial pilot showed that 98% of learners could immediately apply their new skills in their professional roles.
The program is structured to guide organizations through AI maturity in as few as 90 days, enabling them to assess, index, develop, and reassess AI-related skills across their workforce.
Jeana Jorgensen, Corporate Vice President of Worldwide Learning at Microsoft, highlighted the shared objective of both companies to facilitate AI transformation across all business areas. She noted that the learning experience is crafted to empower individuals and organizations to utilize the full scope of generative AI and Microsoft's AI apps and services.
The collaboration between Skillsoft and Microsoft reflects a long-standing relationship, with both companies committed to driving AI adoption and innovation among their customers. This partnership could provide participants with a competitive edge in their respective industries by fostering a culture of continuous learning and skill development.
This information is based on a press release statement from Skillsoft.
In other recent news, Skillsoft, a key player in corporate learning, has announced its Q1 fiscal 2025 results. The company reported a revenue of $128 million, marking a 6% year-over-year decrease. Despite this, Skillsoft's content and platform revenue remained consistent at $98 million, while the instructor-led training revenue saw a significant 20% drop to $30 million.
However, Skillsoft has maintained its full-year revenue guidance of $530 million to $550 million and adjusted EBITDA guidance of $105 million to $110 million. The company attributes its financial performance to market pressures and weaker demand trends but remains confident in its strategy to enhance operational foundations and execution.
In terms of future expectations, Skillsoft aims to leverage market opportunities in enterprise learning and the individual learner/consumer market. The company has also implemented a dual business unit structure and leadership changes to revitalize its instructor-led training segment.
Despite the challenges, Skillsoft is optimistic about improving its dollar retention rate over the year.
InvestingPro Insights
As Skillsoft launches its GenAI skilling program in collaboration with Microsoft, it's important for investors to consider the financial health and market sentiment surrounding the company. According to InvestingPro data, Skillsoft currently has a market capitalization of $106.46 million USD and a striking gross profit margin of 72.54% for the last twelve months as of Q1 2025. This indicates a robust ability to generate revenue relative to the cost of goods sold. Furthermore, the company has experienced a substantial one-month price total return of 41.88%, signaling strong recent market performance.
However, it's not all smooth sailing for Skillsoft. The company operates with a significant debt burden and has been flagged by InvestingPro Tips for potentially having trouble making interest payments on its debt. This financial strain is compounded by the fact that analysts do not anticipate the company will be profitable this year, and it has not been profitable over the last twelve months. These factors could impact the company's ability to invest in and expand its AI Skill Accelerator program.
For those considering investing in Skillsoft, note that there are 13 additional InvestingPro Tips available, which could provide further insights into the company's performance and outlook. To explore these tips and gain a deeper understanding of Skillsoft's financials and market potential, visit InvestingPro. And remember, by using the coupon code PRONEWS24, you can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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