Hello, welcome to the Skillsoft Q3 2023 financial results conference call and webcast. At this time, all participants are in listen-only mode. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to Eric Boyer, Senior Vice President and Head of Investor Relations. Please go ahead, sir. Good afternoon. Welcome to Skillsoft's Q3 fiscal 2023 earnings call. After the market closed, we issued our Q3 earnings press release and posted supplemental materials to the Skillsoft Investor Relations website. Today's call will contain forward-looking statements about the company's business outlook and expectations, including statements concerning financial and business trends, our expected future business and financial performance, financial condition, and outlook. These forward-looking statements, and all statements that are not historical facts, reflect management's beliefs and predictions as of today and therefore are subject to risks and uncertainties that could cause actual results to differ materially from expectations. For a discussion of the material risks and other important factors that could affect our actual results, please refer to the risks described in the safe harbor discussion found in the company's SEC filings. During the call, we will also discuss certain non-GAAP financial measures which are not prepared in accordance with generally accepted accounting principles. GAAP requires accounting periods before and after the merger and de-SPAC on June 11, 2021, to be separated into predecessor and successor periods to reflect the change in ownership and lack of comparability between periods due to different ownership and investment bases. In addition, Global Knowledge activity is only reflected in the GAAP financial statements after June 11. References on this call to pro forma results refer to our results that have been prepared and presented to reflect historical periods as if Skillsoft, Global Knowledge, and Codecademy had merged on February 1, 2021. A reconciliation of the non-GAAP financial measures included in today's commentary and in the supplement materials to the most directly comparable GAAP financial measures, as well as how we define these metrics and other 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. After our prepared remarks, Jeffrey Tarr, CEO, and Richard Walker, CFO, will be available to take questions. With that, it's my pleasure to turn the call over to Jeff. Thanks, Eric. Good afternoon, and thank you all for joining us. Today, I'll provide some financial and operational commentary on the quarter and then turn the call over to Rich Walker to cover our financial results in detail. I'm very grateful that Rich has agreed to take on the CFO role. Rich has been involved in Skillsoft since before the company's return to public markets, served as our Chief Strategy and Corporate Development Officer, and was previously the CFO of 2 public companies, including IHS, where we worked together. Before turning to the business, I also want to thank Gary Ferrera for his contributions to our company and his commitment to a smooth transition. Q3 results were in line with our expectations, and we're pleased to reaffirm our full year guidance. Importantly, we successfully stabilized our Global Knowledge instructor-led training or ILT business, delivering 3% sequential bookings growth. While the segment was down year-over-year in the quarter due to reduced subsidies by one large partner, we've seen healthy growth in other products within the segment. With a new general manager with deep experience in instructor-led training reporting directly to me, we are cautiously optimistic in the potential to deliver continued progress. We also remain focused on integrating instructor-led training into relevant subscription offerings and continue to believe it can be a meaningful differentiator. Turning to our core Skillsoft Content segment, we believe the best way to look at bookings growth is on a trailing twelve-month basis. This metric was up 5% in constant currency, driven by customer wins and cross-sell and upsell success with large enterprises. That said, our Skillsoft Content business was down in the quarter due primarily to a downgrade by one account. Despite the general macro headwinds, we continue to expect solid growth in Q4, which generally represents approximately half of our subscription bookings. Turning to Codecademy. As a reminder, we acquired the business earlier in the year to establish a leadership position in tech and dev, where skills gaps are most acute. Codecademy is one of the strongest brands in tech and dev learning, and we're still early in realizing the potential of the acquisition. Codecademy bookings were up 6%, and revenue was up 16% in constant currency. We believe our revenue growth and traffic are outpacing other B2C competitors. We also continue to see early traction cross-selling Codecademy to our enterprise customers. It is important to note that we had a slow start to the quarter due to a promotion that depressed short-term results in return for longer-term benefit and returned the business to double-digit bookings growth on a constant currency basis in October. We've learned a lot during our first two quarters since acquiring Codecademy that will help us achieve what we believe to be a substantial cross-sell opportunity. We're in discussions with more than 100 enterprise customers regarding Codecademy and have already cross-sold the offering into some of the world's largest and most recognizable brands in tech, retail, pharma, and professional services. Given the impact of currency exchange rates, wage inflation, and slower economic growth, we've been relentlessly focused on managing our cost structure, and I'm grateful to our team members for making numerous difficult decisions. Doing more with less and shrinking our employee base through attrition, reductions in staffing, and a disciplined approach to hiring. We're fortunate to have an important base of operations in India that's helped us manage our labor costs. Managing our costs will be an ongoing focus while continuing to make selective investments in growth. Overall, I'm optimistic about the future. We serve a large and growing market and an important purpose, propelling organizations and people to grow together through transformational learning experiences. Through organic investment and acquisition, we've built a community of more than 80 million learners who we serve with a highly differentiated suite of capabilities. Our content covers leadership, business skills, technology skills, and compliance. We leverage a wide array of modalities, including micro videos, hands-on learning, assessments, coaching and mentoring, instructor-led training, and blockchain-enabled badges. We deliver our content through a flexible AI-driven learning experience platform. We add additional value to our clients with a team of nearly 200 instructional design professionals and systems integrators. Together, we believe no one is better able to deliver on the complex workforce transformation needs of the world's most demanding and sophisticated customers, including approximately 70% of the Fortune 1000. In Q3, we continued to extend our tech and dev offerings with the release of our Cloud Career Journey, which helps learners achieve proficiency in cloud platforms such as AWS and Azure with hands-on practice and instructor-led classes. The strength of our instructor-led training was recognized by AWS as their 2022 Training Partner of the Year in North America. Similar recognition was awarded to Skillsoft by Nutanix, Palo Alto, Red Hat, VMware, and EC-Council. We released new code of conduct training to the market, featuring 12 engaging scenarios that help our learners navigate the complexities of highly nuanced situations. We released the first editions of our newly refreshed business skills courses, featuring real-world perspectives from our leadership coaches in topics such as problem-solving, critical thinking, and wellness. These courses have been well-received by learners with NPS in excess of 60 and are designed for the way people learn online. We continue to expand our local language coverage and have recently released an AI-powered automation caption capability that makes our content available in 12 languages. We also continue to expand our assessments offering and add new and compelling courses to our content collection, focused on helping our customers deliver on their most important reskilling, upskilling, and workforce transformation initiatives. As a result of these investments in content and platform, we're seeing strength in our most important learning metrics. At the end of Q3 on a year-over-year basis, monthly active users are up 23%, completed courses are up 19%, and badges issued are also up 19%. We're encouraged by these strong positive trends and believe they are evidence that learners are embracing our unique science-based approach to reskilling and upskilling. Importantly, we're in the early innings of integrating our capabilities to create a new, more absorbing and connected way to learn online and are excited by the potential of what we are creating. We've also largely completed our go-to-market transformation. We've hired key talent, made investments in tools and technology, and realigned our sales force to a coverage model that better enables cross-sell, upsell, and acquiring new logos. We also redesigned compensation to drive higher levels of performance. This transformation was predictably disruptive, but now better positions us for future growth and value creation. In Q3, some notable wins include two large U.S. government agencies, a large French energy company, a global hospitality leader, and a major media corporation. Finally, we're pleased to have released our first annual impact report entitled Living Our Values: A Responsible Business for a Sustainable Future. This report serves as an important milestone in our ESG journey. During our first five quarters as a public company, we've made much progress transforming Skillsoft into a business that can deliver growth and margin expansion over the long term. We acquired three businesses and divested another, have been executing a complex sales force transformation, and made important investments in content and platform. We've returned our Skillsoft content segment to growth on an LTM basis and stabilized our instructor-led training segment on a sequential basis. Despite a challenging macro environment, we're entering our important Q4 and next year with confidence and look forward to updating you on our progress. With that, I'll turn it over to Rich. Thanks, Jeff. Welcome, everyone. I just want to start by saying how excited I am to be able to take on the role of Chief Financial Officer. Gary has built a strong finance team, which I've been working with closely already, and this has made for a seamless transition. I will now begin with a summary of Q3 results before turning to our thoughts on the remainder of the year. The prior year comparisons will be presented on a pro forma basis. As if Skillsoft, Global Knowledge, and Codecademy had been merged and their fiscal quarters had been aligned to end on January 31st, 2022. Additionally, due to the SumTotal divestiture, the pro forma comparisons exclude SumTotal for all periods. Before I get into the financials, I wanna provide just a few high-level thoughts on the Skillsoft financial model as it has gone through changes over the past year due to acquisitions and divestitures. Skillsoft now has approximately 70% of its revenue from the content business, which is primarily subscription-based with a large portion that are multi-year contracts. This part of the business is the SaaS-like business with strong operating leverage and low capital intensity. The seasonality of the business remains largely the same, with approximately half of our content bookings in the Q4. Therefore, looking at the business on a quarterly basis can be difficult. As such, we try to focus on the last 12-month trends as a more useful measure. The remaining 30% of the business is our Global Knowledge or instructor-led training segment, which is transactional and lower margin. Over time, we expect the content segment to grow more quickly, which should drive margin expansion. Moving on to the Q3 results. Bookings for the total company for the Q3 were $133 million, down 13% and down 9% on a constant currency basis, which is due largely to declines in our lower margin transactional business and the downgrade of a large customer that Jeff referenced in his comments. We continue to believe our subscription content bookings are on pace to have a solid end to this year. Notably, as a result of our realignment efforts and incremental focus, our ILT bookings grew sequentially, both on a reported and a constant currency basis. Content bookings in the Q3 were $85 million, down 6% and down 4% in constant currency due to the aforementioned downgrade of one larger account. Due to the smaller contribution in our first three quarters, it does not take much to move our quarterly year-over-year growth rate in either direction. On an LTM basis, content bookings growth was 5% in constant currency. In the Q3, Codecademy bookings grew 6% on a constant currency basis and is included in the content segment. We continue to make progress closing more enterprise deals in Q3 and are encouraged by the success in building our pipeline for this product. We would expect to report material progress in cross-sell bookings in the Q4, which is our heaviest renewal period and when we sign the bulk of cross-sell activity. Bookings for ILT in the Q3 were $48 million, down 23% and down 16% in constant currency. On a constant currency basis, the year-to-date decline was due primarily to changes in the training program with two large technology partners, one of which has recovered in the quarter. We have also largely stabilized the sales efforts within our ILT business and expect the productivity of recent sales hires to continue to improve. Turning to revenue. GAAP revenue was $139 million in the quarter, down 8% and down 3% on a constant currency basis. We are no longer reporting adjusted gross revenue to conform with GAAP accounting, which is net of reseller fees. Reseller fees in the quarter were $7 million. GAAP revenue for the Skillsoft content segment in Q3 was $98 million, which was flat and up 3% in constant currency. GAAP revenue growth for Codecademy, which is included in the content segment, was up 12% and up 16% on a constant currency basis. Our quarterly DRR was 96%, and on an LTM basis, it held steady at 98%. Q3 GAAP revenue for our ILT business was $41 million, down 22% and down 15% in constant currency. The decline was due to lower prior quarter and in-quarter bookings, as these bookings typically convert to revenue within two quarters. Moving on to profitability. As we've mentioned on previous calls, when comparing adjusted EBITDA year-over-year, you need to also consider the increase in public company costs as we move through the first year as a public company. Accordingly, Q3 adjusted EBITDA was $28 million, down $6 million, a decrease of 15% compared to last year and down 8% in constant currency. Adjusted EBITDA margin for the quarter was 20.1%, down approximately 160 basis points from the prior year. Our GAAP net loss from continuing operations was $520 million for the quarter, which included an approximate $571 million impairment of goodwill and intangible costs. Our adjusted net loss was $31 million for the quarter. Moving on to capital allocation. At the end of Q3, we ended the quarter with $175 million of cash on the balance sheet and pro forma net leverage of 4.6x, which includes the negative contribution of Codecademy for periods which we did not own them. On a reported basis, net leverage was 4.1x. As previously mentioned, we closed the SumTotal transaction in mid-August. Net cash proceeds after all fees and other adjustments were approximately $175 million. We paid down $31 million of debt in the quarter. We also repurchased 645,000 shares. Our trading window was cut short due to information that has now been shared publicly. Moving forward, we expect to continuously weigh the benefits of reducing debt versus share repurchase based on market conditions. We are reaffirming our prior outlook. As I mentioned earlier, we are moving to a GAAP revenue presentation to conform to GAAP accounting, not due to a change in the fundamentals of the business. As such, our GAAP revenue outlook is now $520 million-$550 million, and we are trending above the midpoint of the range. Our booking range remains $580 million-$615 million. Our Adjusted EBITDA range remains $105 million-$125 million, and we are trending towards the lower end of the range, due primarily to revenue mix. With that, I'll turn the call back over to Jeff. Thank you all for joining our call. While there's uncertainty in today's operating environment, we believe our approach provides unique benefits to organizations and their employees. By optimizing our solutions for how people learn online and aligning with the strategies of our enterprise customers, we believe we are uniquely positioned to deliver on the upskilling, reskilling, and workforce transformation needs of the most complex and demanding organizations. Operator, please open the call for questions. Certainly. We will now be conducting a question and answer session. If you'd like to be placed in the question queue, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to move your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing star one. One moment please while we poll for questions. Our first question today is coming from Raimo Lenschow from Barclays. Your line is now live. Hi, this is Shel McMeans, on for Raimo. Thanks for taking our questions. I wanted to first ask about the core content business. This quarter was the first time in a while that we saw negative bookings growth here. You discussed a reduction in the quarter, and my question is, what gives you confidence that this is an isolated incident as you approach the large Q4 renewal period? I have a follow-up. Sure. Thanks. As you pointed out, the quarter we feel was an anomaly. It was due to one large customer that was experiencing severe financial pressures and downgraded quite significantly their business with us. We really don't have many accounts of this size and we really don't have any significant revenue concentration at all. The loss of an account that, you know, is neighborhood 1% of revenue was a really unusual event. As we look at the quarter going forward, you know, we're one month into the quarter. We can see how large our pipeline is, how much business we've closed. We've closed approximately 60% of our quarter, and that's ahead of where it was last year, this time. We feel really good about that. We feel really good about the pipeline. Despite the fact that the economy is a little shaky, we feel good about how we're teed up for our most important quarter. Got it. Thank you. Then, second for Richard. First congratulations on the new role. I wanted to ask just a broad question on how you feel your guidance philosophy is, you know, relative to previous. Is there any changes to call out there? Thanks. Thanks for the question and the and the remarks. I don't have a different viewpoint in how we think about guidance. We only give annual guidance. I think it's so critically tied to how we finish our forward planning for the coming year, and that's informed by how we finish the quarter, in this case, our Q4. We are trying to make sure that when we guide, we're giving consistent guiding metrics. I personally wanna look at bookings and think if there's not more relevant metrics, perhaps looking at total bookings, the lifetime value, and then showing a backlog against that. Short of looking at bookings guidance, no change in philosophy at all. Got it. Thank you. Thank you. Next question today is coming from Thomas Singlehurst from Citi. Your line is now live. Yeah. Good evening. Tom here from Citigroup. Thank you very much for taking the questions. Yeah. I supposed I just wanted to go back to that, when you were very clear about the driver of that one account, but I suppose the hot topic for everybody is sensitivity to the cycle. I was just wondering, you know, whether you can talk about whether there's any difference in outlook for smaller companies versus larger ones, international versus US. Any color on, as I say, sort of your perspectives around sort of broad cyclicality. It's, if we can start with that, and I'll have a quick follow-up, if that's okay. Thanks, Tom. It was a little broken up, so if I didn't get the question exactly right, just let me know. I think what you're asking is, are we seeing segments of customers that are performing better or worse than others or than we've seen historically? You asked specifically about SMB. Historically, SMB has had lower retention rates than our large enterprise. When we give you a dollar retention rate, you should anticipate our large enterprise customers are meaningfully outperforming that blended rate, and our SMB customers are underperforming that blended rate. We haven't seen significant change in that other than the fact that our mix has shifted, and we have less exposure to SMB than we had a year ago. At this point, we consider roughly about 20% of our enterprise, of our customer base, rather, to be SMB. I hope that answers the question. We would expect in this cycle that to continue to see more pressure on SMB, less pressure on large enterprise. When we look at the business through the lens of geography, the biggest impact we see is the impact of currency, which has been a quite substantial headwind, given that we're a global business and do have exposure outside the US. Other than that, nothing really new or remarkable to report. Very clear. Then on the cash usage, you sort of talked about the... Well, you sort of intimated that the buyback had been somewhat curtailed. I mean, can you just sort of once again sort of outline the sort of priorities for cash usage from here on in, especially in the context, I suppose, of rising interest rates and therefore sort of higher interest costs? Great. It's Rich. I think it's pretty simple. Given the magnitude of Q4, we've consistently signaled that as our confidence grows with that quarter, we'll be informed as to what we wanna do from a capital allocation. Second, if juxtaposing between debt and share repurchase, on the debt side, I think the simple answer is we are definitely going to do something. It's a question of when and how much, particularly as exacerbated by the current rate environment. Even since our Q2 call, there's been 2 rate increases, 150 basis points. When you put a very specific disciplined financial analysis, attending to the capital structure and the debt profile is probably an increasingly higher priority for us. We did announce an approved up to a $30 million share repurchase. We only executed, about less than $2 million against that, and that plan is still in place, and we'll continue to evaluate share buyback. Yeah. Very clear. Thank you so much. Thank you. Next question is coming from [Rajiv] Sharma from B. Riley. Your line is now live. Hi. Thank you for taking my questions. I wanted to address a few things just in terms of the Global Knowledge uptake sequentially. Do you expect to see that continuing stabilization/increase for the next several quarters? Then I have a similar question on Codecademy, just in terms of the growth and the metrics of the product uptake, if you could give some color on that. Sure, Raj. Thanks. We are really pleased that we've been able to stabilize the Global Knowledge business, and we also have a much better understanding of that business with each passing quarter. I feel good about it, about continued stabilization for the foreseeable future. Now, keep in mind it's a transactional business, so we don't have, you know. Our visibility on that business is more limited than our subscription business. With that said, from what I can see today, it is stable, and that's good news. To understand why it's stable, couple key points. First of all, the entirety of the year-over-year decline in that business can be attributed to two partners on a year-to-date basis and one partner in the quarter. Those partners reduced their subsidies. In other words, they subsidized the customer in purchasing training. when they changed their subsidy model, that reduced consumption. That is largely behind us. We understand it very deeply today. The rest of the business has actually been growing. That's good news. That's where we get our confidence that this business is stable at this point in time. Great. Yeah. Thank you. Then on Codecademy, the growth metrics and product uptake, any color on that and whether you're expecting to reach breakeven in the following 12 months as you had expected earlier? Yeah, certainly. Let's talk about Codecademy through the lens of Code B2C and Code B2B. Code B2C is growing. It got a slow start in the quarter, re-accelerated as the quarter progressed and into the current quarter. We feel good about the B2C business as sort of at this point, a high single-digit, low double-digit grower on a constant currency basis. By the way, I'll point out while that is below what we thought when we acquired the business, it's above where we believe most of our competitors are performing. We believe that we're taking share in Code B2C. If we look at the B2B side of the business, we're getting good traction with some very sophisticated customers. I'm talking Fortune 50 customers of real scale and sophistication taking Codecademy. That's the good news. Sales cycles have been a little longer than we expected, and I believe that's largely due to just caution that is with all customers in this economy. We are seeing uptick. We are talking to more than 100 customers, most of them very large companies, about Code, and feel very good about our ability over time to achieve the original expectations we set on the B2B side of things. Got it. Just wanted to clarify on the Skillsoft content business. Am my understanding this correctly that you expect a good bookings quarter? That's largely obviously the new customers. In terms of this one downgrade you had from a large enterprise, you don't expect that is a one-off event in your minds, and you shouldn't expect to see that occurring consistently, especially since you say the large enterprises are gonna perform better than the SMBs, despite a potentially shaky economy. Is that? We have very few customers of that size. We have no reason to believe there's anything like that hanging out in the foreseeable future. I'd also say our organization has learned from that experience. That's another reason why I feel that we're well positioned going forward to not have that kind of event again anywhere in the foreseeable future. If you look through that one event, the metrics in the business in the quarter were pretty consistent with our LTM metrics. You know, that's another way to look at the business and really, you know, get some confidence around Q4. Great. Okay, thank you. Thank you for answering my questions. I'll take this offline. Thanks. Thank you. Thank you. Next question today is coming from Ken Wong from Oppenheimer. Your line is now live. Hi, this is Nancy Liu on for Ken. Thanks for taking our questions. I have two. The first one, as you focus a bit more on cost savings here, do you see more areas or levers you can pull to further reduce the OPEX going forward and have the full effect of prior cost savings hit the P&L yet? Why don't I start and then Rich may add something. We're taking a very disciplined approach to our cost structure going into Q4 and next year. I'm really pleased with how the team is approaching that. Our headcount, we've been managing that very tightly. Actually, headcount was down sequentially. We've been focused on offshoring talent, where that makes sense. I expect that discipline to continue. Rich, anything to add? I'd maybe add only the context. We did, in the first 15 months, bring four companies together and divest of another. We're constantly on a journey, on a continuum of degrees of integration. As we continue to do that, we'll drive further efficiencies out of the business. Great companies do this all the time, and part of our culture is continually and unrelentingly to look at how we're organized, spans and layers. I think the quick response around our ILT business is evidence of organizing smartly and driving efficiencies in the process. Got it. That makes sense. Very helpful. Thank you. My second question, I believe you mentioned previously you were increasing your inside sales capacity, for Global Knowledge specifically. -uous effort because there's always turnover in functions like that. In terms of fully productive, the answer is no. I mean, people that are hired take generally 12-24 months to be fully productive. It's one of the reasons we feel good about the future of this business. We made a lot of changes to our sales force, not just within our instructor-led training business of Global Knowledge, but the subscription business too. We hired a lot of great talent, and we expect that for that talent to be fully productive will take 12-24 months. We won't achieve full productivity on those hires until next year. Thank you. Thank you. Next question today is coming from Robert Simmons from D.A. Davidson. Your line is now live. Hey, thanks for taking our questions. I guess first, what changes are you looking to see, at, as CFO, Rich? Is it basically gonna be essentially the same kind of approach to things? You already touched on guidance, but I'm thinking, kinda thinking kind of operationally. How much of your time right now is spent on more CFO type activities versus your old role of strategy and development, and how do you expect that to evolve over the next few quarters? Yeah, I think thanks for the question, Robert. I'm spending a lot of time on capital allocation. Not only the debt and share repurchase that we spoke to, but as we look at the portfolio, make sure we're driving the investment to our highest growth, more profitable areas of the business. That address your second question, I'm spending almost all of my time on that. Have a good team, a continuity of team in our business and corporate development and our transformational office. We're not in an environment now where we're acquisitive. We'll continue to evaluate partnerships as they make sense, but that's not consuming my time. Mine is entirely focused on driving more efficiencies, productivity and good, smart, disciplined capital allocation. Got it. On the Global Knowledge transition to subscription, can you give us an update on how that's going? You kind of briefly alluded to it, but any more detail or color would be great. I don't wanna overstate that. It is a transactional business, and it's not going to suddenly and remarkably become a subscription business. We see the subscription opportunity on the margin, and we see the ILT capability as a differentiator for our subscription business. For example, we've included ILT in our growing suite of career journeys. Those career journeys blend all of our capabilities to deliver a really immersive experience, a really transformative experience to our learners and an experience that's aligned with the strategies of our customers, regardless of what the topic area is, whether it's business skills, leadership, technology, all of the above, and leveraging all of our modalities, including ILT. We see that as a source of future growth. Beyond that, the core ILT business is transactional in nature and will likely continue to be. Got it. That makes sense. You touched on this, or you talked about this for Codecademy, but, what are you seeing in terms of changes in your sales cycles for the rest of the business? How much longer are they getting? Are you seeing deal compression or breakup? Any kind of color there would be helpful. We are seeing sales cycles prolong, from maybe 6 to 9 months to more 9 to 12 months. These are larger transactions with big sophisticated companies, and everybody's watching their budgets these days. We're adapting to that and you see that in our performance, you see it in our guidance. We should assume that continues for the foreseeable future. With that said, reskilling, upskilling, workforce transformation remain critical imperatives. We also have a labor shortage and in certain key roles, and employees are looking increasingly to development, their own development as a reason they stay with companies. I believe we're well positioned. This is an increasingly critical service inside the enterprise. It just takes a little longer to close new business or upsell. Got it. Thank you very much. Thank you. Next question is coming from Arvind Ramnani from Piper Sandler. Your line is now live. Hi. Thanks for taking my question. You know, I just wanted to follow up on some of the comments you just made on the, you know, sort of overall demand environment. You know, you indicated, you know, on one hand you have some of the deal cycles that are taking longer. From my own checks that I've done on enterprise spend, looks like 2023 budgets will likely come in pressured. Like, overall tech education, I mean, just kinda overall, it looks like kinda spending will be a little bit more curtailed in 2023 versus 2022, based on initial checks. While I fully appreciate that, budgets have not yet been finalized, that's kind of where... how things are looking. On the other hand, it also looks like there's, you know, pretty good demand for kinda pretty good demand that you're seeing. Can you just kind of, kinda help reconcile those, right? You have budgets coming in, but it feels like the demand environment for Skillsoft still seems quite healthy. Thanks for the question. We see a critical need for what we do. The key to growing in an environment like this and growing profitably, we believe, is to be really smart about segmentation, really understanding where we can win, where we have a high likelihood to win, where we can grow, and aligning our products and our packaging and our pricing to those segments. We're hard at work, you know, doing that hard work to make sure that we can deliver the best possible outcome next year. The environment's a reality, the critical need for what we do is a reality, too. We believe we have a really unique offering. We are a player with deep enterprise heritage and the largest enterprise customer base. We have a tremendous breadth of content. We're the one player that's deep in technology, business skills, leadership skills, and compliance. We have a tremendous breadth of modalities that allows us to deliver a truly transformational experience to our learners. We've designed our product as a content creator for the way people learn online today. For example, large percentages of the workforce are mobile. They don't have laptops or even tablets. They're working on mobile phones, and we're optimized with our micro-learning approach for that kind of delivery. We believe this, the value that we deliver positions us in a really unique way, and we're gonna seize that opportunity as the quarters progress. That's helpful. Just on pricing, right? Like, you know, as some some of your clients may be looking to keep kind of volumes and to keep kind of business healthy and growing with y'all. Are you seeing any pressure on unit pricing? Well, I think in this environment, we often end up in those kinds of conversations. We try to move them to be conversations about value and ROI, and we have really compelling ROI data, including a study we just did with Forrester on our ROI, which is really quite powerful. We're equipped to have those conversations. The other important tool is to have clear segmentation and thinking about pricing and packaging. There is a segment of the market that sees learning as a checkbox, and we generally don't serve that part of the market. Well, maybe we need to play there. We tend to play and win where there's a workforce transformation imperative, and there's a need to get employees from point A to point B. For example, from hire to billable or reskilling a cohort for a project or development people to their first promotion to people leader. That's where we win, and we intend to get better and better at that and extend our lead. Terrific. If I can just get one more in. You know, it's been about a year since y'all announced Codecademy. If you can provide any sort of update on, you know, sort of how business on that side has gone. I mean, I would assume, you know, the businesses are fully merged and you may not be keeping full, you know, discrete track of their own growth rates, but, how is Codecademy, has that been a good acquisition, whether it's kind of, helped you land some new deals or has it, you know, Is growth accelerating there? Any sort of updates on Codecademy would be super helpful. Well, we're a little more than two quarters into our period of ownership. While we announced it last year, the starting gun really went off this year, and I feel good about- Mm-hmm. The progress we've made. I should say, first of all, we operate the business, much as it's been operated before. The B2C team has a tremendous amount of autonomy to grow their business. They're really good at it, and, I believe they're outperforming the competition, in that particular segment. That's the B2C side. On the B2B side, we're just getting started. Sales cycles are, you know, 9, 6, 9, 12 months. We've closed our first deals with very large customers. We've got about two dozen very large enterprise customers that have signed. We've got a pipeline of more than 100 customers of scale that we're talking to, and I feel good about where we are and the progress that we're making. In terms of being able to tease out the various costs, we are integrating a lot of the back office cost structure, so we don't report, you know, bottom line for Codecademy. It's not a separate reportable segment. There was a question I neglected to ask earlier, and I think you're asking that too. Are we roughly on track to be roughly break even in that business next year? As best as we can tell, yes. The fact is that, you know, there has been substantial integration of back office and so it's hard to break that out. I feel we're roughly on the trajectory that we set at the time of the transaction. Terrific. Thank you for those answers. Appreciate it. Thank you. Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over for any further closing comments. Super. Thank you very much. First of all, I'd like to thank the entire Skillsoft team around the globe. This is a challenging operating environment, and I'm pleased with the way the team is stepping up to that challenge and the opportunity ahead. I also wanna thank all of the analysts who are on this call and who follow our business. We don't take you for granted. We greatly appreciate all the hard work that you do to follow our company. To all of our shareowners, thank you very much. We are deeply committed to delivering return, and in many ways, we're just getting started on the operational execution of a vision that we feel is very big and very important and will make a difference. Thank you very much. We look forward to keeping you posted. Thank you.