Pluralsight Announces Third Quarter 2020 Results
Pluralsight (NASDAQ: PS) reported strong Q3 2020 results, exceeding revenue, earnings, and cash expectations. Q3 revenue grew by 20% year-over-year to $99.5 million, while billings increased by 9% to $100 million. Business customer billings rose 10% to $88.6 million. The gross margin improved to 79%, and net loss per share narrowed to $0.24. However, cash used in operations was $2.4 million, and free cash flow turned negative at $14.9 million. Despite lighter billings, the company remains optimistic following its recent PS LIVE event.
- Q3 2020 revenue increased by 20% to $99.5 million.
- Billings for Q3 2020 increased by 9% to $100 million.
- Gross margin improved to 79%, up from 78% in Q3 2019.
- Narrowed net loss per share to $0.24 from $0.32 in Q3 2019.
- Cash used in operations was $2.4 million, slightly higher than $2.2 million in Q3 2019.
- Free cash flow was negative $14.9 million compared to negative $6.6 million in Q3 2019.
- Q3 billings were lighter than expectations.
SILICON SLOPES, Utah, Nov. 05, 2020 (GLOBE NEWSWIRE) -- Pluralsight, Inc. (NASDAQ: PS), the technology workforce development company, today announced financial results for the third quarter ended September 30, 2020.
“We’re proud of the progress we made in the quarter while still in the midst of the COVID-19 pandemic. We handily beat our revenue, earnings, and cash expectations in Q3 and have raised our annual expectations for each.” said Aaron Skonnard, co-founder and CEO of Pluralsight. “Q3 billings came in lighter than we expected, but we had strong participation and enthusiasm at our PS LIVE customer event in October. With the pipeline generated from PS LIVE and our new products and capabilities, we remain confident in our outlook.”
Third Quarter Financial Highlights
- Billings - Q3 2020 billings were
$100.0 million , an increase of9% period over period. Q3 2020 billings from business customers were$88.6 million , an increase of10% period over period. - Revenue - Q3 2020 revenue was
$99.5 million , an increase of20% period over period. - Gross margin - Q3 2020 gross margin was
79% , compared to78% in Q3 2019. Q3 2020 non-GAAP gross margin was81% , compared to80% in Q3 2019. - Net loss per share - GAAP net loss per share for Q3 2020 was
$0.24 , compared to$0.32 in Q3 2019. Adjusted pro forma net loss per share for Q3 2020 was$0.00 , compared to$0.08 in Q3 2019. - Cash flows - Cash used in operations was
$2.4 million for Q3 2020, compared to$2.2 million in Q3 2019. Free cash flow was negative$14.9 million for Q3 2020, compared to negative$6.6 million in Q3 2019.
For information regarding the non-GAAP financial measures discussed in this press release, please see the section titled “Non-GAAP Financial Measures.” Reconciliations between GAAP and non-GAAP financial measures are provided in the tables of this press release.
Financial Outlook
The following forward-looking statements reflect Pluralsight's expectations as of November 5, 2020.
Full Year 2020 Guidance
- Revenue is expected to be in the range of
$387.0 million to$390.0 million . - Adjusted pro forma net loss per share is expected to be in the range of
$0.12 t o$0.14 , assuming weighted-average shares outstanding of approximately 143.5 million.
Guidance for non-GAAP financial measures excludes equity-based compensation, amortization of acquired intangible assets, employer payroll taxes on employee stock transactions, amortization of debt discount and issuance costs, and, as applicable, other special items, which may be significant. Pluralsight has not reconciled its expectations as to adjusted pro forma net loss per share to their most directly comparable GAAP measures because certain items cannot be reasonably predicted. Accordingly, a reconciliation for expectations of adjusted pro forma net loss per share is not available without unreasonable effort.
Pluralsight’s guidance for the full year 2020 reflects its expectations for the periods after taking into account the impact of COVID-19. However, the crisis that this pandemic has created is very fluid, and the situation is constantly evolving. As such, Pluralsight’s actual results may differ materially from such guidance based on a variety of factors, including Pluralsight’s ability to execute its business during this crisis, the impact of the crisis on Pluralsight’s suppliers, customers and partners, governmental action taken in response to COVID-19, and other factors.
Conference Call Information
Pluralsight will host a conference call for analysts and investors to discuss its third quarter 2020 results and outlook for the full year 2020, today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time).
| Date: | November 5, 2020 |
| Time: | 2:30 p.m. MT (4:30 p.m. ET) |
| Webcast: | https://investors.pluralsight.com/ |
| Dial-in number: | (877) 350-6732 or (629) 228-0693, conference ID: 3430067 |
A live audio webcast of the conference call will also be accessible from the Pluralsight website at investors.pluralsight.com. A telephonic replay of the call will be available three hours after the call, will run for seven days, and may be accessed by dialing (855) 859-2056 or (404) 537-3406 and entering the passcode 3430067.
About Pluralsight
Pluralsight is the leading technology skills and engineering management platform. Trusted by forward-thinking companies of every size in every industry, Pluralsight helps individuals and businesses transform with technology through its Skills and Flow products. Skills helps build technology skills at scale with expert-authored courses on today’s most important technologies, including cloud, artificial intelligence, machine learning, data science, and security, among others. Skills also offers analytics and Skill IQ and Role IQ assessments. Flow complements Skills by providing visibility and analytics into software development workflows to accelerate the delivery of products and services.
Pluralsight and the Pluralsight logo are trademarks of Pluralsight, LLC in the United States and in jurisdictions throughout the world.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws that involve risks and uncertainties, including the quotations of management and statements regarding our future financial and operating performance, and our financial outlook for the full year 2020. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our ability to attract and retain customers; our ability to expand our course library and develop new platform features; the demand for, and market acceptance of our platform; competition; our ability to improve sales management and execution; our expectations of the potential impact the COVID-19 pandemic may have on our business; and other market, political, economic, and business conditions.
Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K/A filed with the SEC on March 2, 2020 and in our quarterly report on Form 10-Q filed with the SEC on November 5, 2020, which is available on our website at investors.pluralsight.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
Key Business Metrics
Billings. Billings represents total revenue plus the change in deferred revenue in the period, as presented in our condensed consolidated statements of cash flows, less the change in contract assets and unbilled accounts receivable in the period. Billings in any particular period represents amounts invoiced to customers and reflects subscription renewals and upsells to existing customers plus sales to new customers. We use billings to measure our ability to sell subscriptions to our platform to both new and existing customers. We use billings from business customers and our percentage of billings from business customers to measure and monitor our ability to sell subscriptions to our platform to business customers.
Non-GAAP Financial Measures
Pluralsight has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). Pluralsight uses the non-GAAP financial measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, adjusted pro forma net loss, adjusted pro forma net loss per share, and free cash flow in analyzing its financial results and believes that the use of these metrics is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Pluralsight’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures.
The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
Non-GAAP gross profit. We define non-GAAP gross profit as gross profit plus equity-based compensation, amortization of acquired intangible assets, and employer payroll taxes on employee stock transactions.
Non-GAAP gross margin. We define non-GAAP gross margin as non-GAAP gross profit divided by our revenue.
Non-GAAP operating expenses. We define non-GAAP operating expenses as operating expenses less equity-based compensation, amortization of acquired intangible assets, and employer payroll taxes on employee stock transactions, and, as applicable, other special items.
Non-GAAP operating loss. We define non-GAAP operating loss as loss from operations plus equity-based compensation, amortization of acquired intangible assets, employer payroll taxes on employee stock transactions, and, as applicable, other special items.
Adjusted pro forma net loss and adjusted pro forma net loss per share. We define adjusted pro forma net loss as net loss attributable to Pluralsight, Inc. adjusted for the reallocation of loss attributable to non-controlling interests from the assumed exchange of LLC Units of Pluralsight Holdings for newly-issued shares of Class A common stock of Pluralsight, Inc. and further adjusted for equity-based compensation, amortization of acquired intangible assets, employer payroll taxes on employee stock transactions, amortization of debt discount and issuance costs, and, as applicable, other special items. We define adjusted pro forma net loss per share as adjusted pro forma net loss divided by the weighted-average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC Units of Pluralsight Holdings for newly-issued shares of Class A common stock of Pluralsight, Inc.
Free cash flow. We define free cash flow as cash (used in) provided by operating activities less purchases of property and equipment and purchases of our content library.
PLURALSIGHT, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | 99,465 | $ | 82,620 | $ | 286,876 | $ | 228,099 | ||||||||
| Cost of revenue(1)(2) | 20,426 | 17,829 | 59,151 | 52,344 | ||||||||||||
| Gross profit | 79,039 | 64,791 | 227,725 | 175,755 | ||||||||||||
| Operating expenses(1)(2): | ||||||||||||||||
| Sales and marketing | 57,206 | 55,797 | 177,380 | 150,014 | ||||||||||||
| Technology and content | 29,345 | 27,847 | 89,003 | 72,937 | ||||||||||||
| General and administrative | 20,366 | 20,844 | 66,733 | 63,610 | ||||||||||||
| Total operating expenses | 106,917 | 104,488 | 333,116 | 286,561 | ||||||||||||
| Loss from operations | (27,878 | ) | (39,697 | ) | (105,391 | ) | (110,806 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (7,409 | ) | (7,412 | ) | (21,799 | ) | (16,436 | ) | ||||||||
| Loss on debt extinguishment | — | (950 | ) | — | (950 | ) | ||||||||||
| Other income, net | 1,992 | 3,001 | 6,429 | 8,783 | ||||||||||||
| Loss before income taxes | (33,295 | ) | (45,058 | ) | (120,761 | ) | (119,409 | ) | ||||||||
| Income tax expense | (476 | ) | (404 | ) | (253 | ) | (701 | ) | ||||||||
| Net loss | $ | (33,771 | ) | $ | (45,462 | ) | $ | (121,014 | ) | $ | (120,110 | ) | ||||
| Less: Net loss attributable to non-controlling interests | (6,410 | ) | (12,983 | ) | (28,405 | ) | (39,429 | ) | ||||||||
| Net loss attributable to Pluralsight, Inc. | $ | (27,361 | ) | $ | (32,479 | ) | $ | (92,609 | ) | $ | (80,681 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.24 | ) | $ | (0.32 | ) | $ | (0.85 | ) | $ | (0.88 | ) | ||||
| Weighted-average shares of Class A common stock used in computing basic and diluted net loss per share | 115,196 | 101,407 | 109,009 | 91,741 | ||||||||||||
(1) Includes equity-based compensation as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Cost of revenue | $ | 312 | $ | 138 | $ | 878 | $ | 355 | ||||||||
| Sales and marketing | 10,908 | 8,739 | 31,308 | 22,967 | ||||||||||||
| Technology and content | 6,361 | 6,666 | 19,581 | 15,513 | ||||||||||||
| General and administrative | 6,633 | 9,114 | 24,450 | 28,822 | ||||||||||||
| Total equity-based compensation | $ | 24,214 | $ | 24,657 | $ | 76,217 | $ | 67,657 | ||||||||
(2) Includes amortization of acquired intangible assets as follows:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Cost of revenue | $ | 1,208 | $ | 1,209 | $ | 3,626 | $ | 2,436 | ||||||||
| Sales and marketing | 50 | 50 | 150 | 79 | ||||||||||||
| Technology and content | 122 | 176 | 459 | 529 | ||||||||||||
| Total amortization of acquired intangible assets | $ | 1,380 | $ | 1,435 | $ | 4,235 | $ | 3,044 | ||||||||
PLURALSIGHT, INC.
Key Business Metrics and Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)
Key Business Metrics
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Billings | $ | 100,022 | $ | 92,123 | $ | 279,334 | $ | 250,603 | ||||||||
| Billings from business customers | $ | 88,599 | $ | 80,707 | $ | 246,766 | $ | 216,967 | ||||||||
| % of billings from business customers | 89 | % | 88 | % | 88 | % | 87 | % | ||||||||
Non-GAAP Financial Measures
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Reconciliation of gross profit to non-GAAP gross profit: | ||||||||||||||||
| Gross profit | $ | 79,039 | $ | 64,791 | $ | 227,725 | $ | 175,755 | ||||||||
| Equity-based compensation | 312 | 138 | 878 | 355 | ||||||||||||
| Amortization of acquired intangible assets | 1,208 | 1,209 | 3,626 | 2,436 | ||||||||||||
| Employer payroll taxes on employee stock transactions | 10 | 2 | 42 | 18 | ||||||||||||
| Non-GAAP gross profit | $ | 80,569 | $ | 66,140 | $ | 232,271 | $ | 178,564 | ||||||||
| Gross margin | 79 | % | 78 | % | 79 | % | 77 | % | ||||||||
| Non-GAAP gross margin | 81 | % | 80 | % | 81 | % | 78 | % | ||||||||
PLURALSIGHT, INC.
Key Business Metrics and Non-GAAP Financial Measures (cont.)
(dollars in thousands)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Reconciliation of operating expenses to non-GAAP operating expenses: | ||||||||||||||||
| Sales and marketing | $ | 57,206 | $ | 55,797 | $ | 177,380 | $ | 150,014 | ||||||||
| Less: Equity-based compensation | (10,908 | ) | (8,739 | ) | (31,308 | ) | (22,967 | ) | ||||||||
| Less: Amortization of acquired intangible assets | (50 | ) | (50 | ) | (150 | ) | (79 | ) | ||||||||
| Less: Employer payroll taxes on employee stock transactions | (161 | ) | (71 | ) | (982 | ) | (1,212 | ) | ||||||||
| Non-GAAP sales and marketing | $ | 46,087 | $ | 46,937 | $ | 144,940 | $ | 125,756 | ||||||||
| Sales and marketing as a percentage of revenue | 58 | % | 68 | % | 62 | % | 66 | % | ||||||||
| Non-GAAP sales and marketing as a percentage of revenue | 46 | % | 57 | % | 51 | % | 55 | % | ||||||||
| Technology and content | $ | 29,345 | $ | 27,847 | $ | 89,003 | $ | 72,937 | ||||||||
| Less: Equity-based compensation | (6,361 | ) | (6,666 | ) | (19,581 | ) | (15,513 | ) | ||||||||
| Less: Amortization of acquired intangible assets | (122 | ) | (176 | ) | (459 | ) | (529 | ) | ||||||||
| Less: Employer payroll taxes on employee stock transactions | (192 | ) | (65 | ) | (1,044 | ) | (979 | ) | ||||||||
| Non-GAAP technology and content | $ | 22,670 | $ | 20,940 | $ | 67,919 | $ | 55,916 | ||||||||
| Technology and content as a percentage of revenue | 30 | % | 34 | % | 31 | % | 32 | % | ||||||||
| Non-GAAP technology and content as a percentage of revenue | 23 | % | 25 | % | 24 | % | 25 | % | ||||||||
| General and administrative | $ | 20,366 | $ | 20,844 | $ | 66,733 | $ | 63,610 | ||||||||
| Less: Equity-based compensation | (6,633 | ) | (9,114 | ) | (24,450 | ) | (28,822 | ) | ||||||||
| Less: Employer payroll taxes on employee stock transactions | (182 | ) | (195 | ) | (852 | ) | (897 | ) | ||||||||
| Less: Secondary offering costs | — | — | (1,260 | ) | (918 | ) | ||||||||||
| Less: Acquisition-related costs | (341 | ) | — | (341 | ) | (835 | ) | |||||||||
| Non-GAAP general and administrative | $ | 13,210 | $ | 11,535 | $ | 39,830 | $ | 32,138 | ||||||||
| General and administrative as a percentage of revenue | 20 | % | 25 | % | 23 | % | 28 | % | ||||||||
| Non-GAAP general and administrative as a percentage of revenue | 13 | % | 14 | % | 14 | % | 14 | % | ||||||||
| Reconciliation of loss from operations to non-GAAP operating loss: | ||||||||||||||||
| Loss from operations | $ | (27,878 | ) | $ | (39,697 | ) | $ | (105,391 | ) | $ | (110,806 | ) | ||||
| Equity-based compensation | 24,214 | 24,657 | 76,217 | 67,657 | ||||||||||||
| Amortization of acquired intangible assets | 1,380 | 1,435 | 4,235 | 3,044 | ||||||||||||
| Employer payroll taxes on employee stock transactions | 545 | 333 | 2,920 | 3,106 | ||||||||||||
| Secondary offering costs | — | — | 1,260 | 918 | ||||||||||||
| Acquisition-related costs | 341 | — | 341 | 835 | ||||||||||||
| Non-GAAP operating loss | $ | (1,398 | ) | $ | (13,272 | ) | $ | (20,418 | ) | $ | (35,246 | ) | ||||
PLURALSIGHT, INC.
Key Business Metrics and Non-GAAP Financial Measures (cont.)
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Adjusted pro forma net loss per share | ||||||||||||||||
| Numerator: | ||||||||||||||||
| Net loss attributable to Pluralsight, Inc. | $ | (27,361 | ) | $ | (32,479 | ) | $ | (92,609 | ) | $ | (80,681 | ) | ||||
| Net loss attributable to non-controlling interests | (6,410 | ) | (12,983 | ) | (28,405 | ) | (39,429 | ) | ||||||||
| Equity-based compensation | 24,214 | 24,657 | 76,217 | 67,657 | ||||||||||||
| Amortization of acquired intangibles | 1,380 | 1,435 | 4,235 | 3,044 | ||||||||||||
| Employer payroll taxes on employee stock transactions | 545 | 333 | 2,920 | 3,106 | ||||||||||||
| Secondary offering costs | — | — | 1,260 | 918 | ||||||||||||
| Acquisition-related costs | 341 | — | 341 | 835 | ||||||||||||
| Amortization of debt discount and issuance costs | 6,853 | 6,826 | 20,128 | 15,120 | ||||||||||||
| Loss on debt extinguishment | — | 950 | — | 950 | ||||||||||||
| Adjusted pro forma net loss | $ | (438 | ) | $ | (11,261 | ) | $ | (15,913 | ) | $ | (28,480 | ) | ||||
| Denominator: | ||||||||||||||||
| Weighted-average shares of Class A common stock outstanding | 115,196 | 101,407 | 109,009 | 91,741 | ||||||||||||
| Weighted-average LLC Units of Pluralsight Holdings that are convertible into Class A common stock | 28,932 | 36,791 | 33,437 | 44,834 | ||||||||||||
| Adjusted pro forma weighted-average common shares outstanding, basic and diluted | 144,128 | 138,198 | 142,446 | 136,575 | ||||||||||||
| Adjusted pro forma net loss per share | $ | — | $ | (0.08 | ) | $ | (0.11 | ) | $ | (0.21 | ) | |||||
| Reconciliation of net cash (used in) provided by operating activities to free cash flow: | ||||||||||||||||
| Net cash (used in) provided by operating activities | $ | (2,352 | ) | $ | (2,175 | ) | $ | 6,693 | $ | (3,823 | ) | |||||
| Less: Purchases of property and equipment | (10,706 | ) | (3,029 | ) | (31,226 | ) | (7,619 | ) | ||||||||
| Less: Purchases of content library | (1,803 | ) | (1,381 | ) | (5,596 | ) | (3,822 | ) | ||||||||
| Free cash flow | $ | (14,861 | ) | $ | (6,585 | ) | $ | (30,129 | ) | $ | (15,264 | ) | ||||
PLURALSIGHT, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| September 30, 2020 | December 31, 2019 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 100,882 | $ | 90,515 | ||||
| Short-term investments | 304,077 | 332,234 | ||||||
| Accounts receivable, net | 76,492 | 101,576 | ||||||
| Deferred contract acquisition costs | 19,469 | 18,331 | ||||||
| Prepaid expenses and other current assets | 18,847 | 14,174 | ||||||
| Total current assets | 519,767 | 556,830 | ||||||
| Restricted cash and cash equivalents | 17,337 | 28,916 | ||||||
| Long-term investments | 114,623 | 105,805 | ||||||
| Property and equipment, net | 65,058 | 22,896 | ||||||
| Right-of-use assets | 61,719 | 15,804 | ||||||
| Content library, net | 11,880 | 8,958 | ||||||
| Intangible assets, net | 18,416 | 22,631 | ||||||
| Goodwill | 262,532 | 262,532 | ||||||
| Deferred contract acquisition costs, noncurrent | 8,317 | 5,982 | ||||||
| Other assets | 1,940 | 1,599 | ||||||
| Total assets | $ | 1,081,589 | $ | 1,031,953 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 7,041 | $ | 10,615 | ||||
| Accrued expenses | 47,090 | 40,703 | ||||||
| Accrued author fees | 11,988 | 11,694 | ||||||
| Lease liabilities | 9,184 | 5,752 | ||||||
| Deferred revenue | 207,823 | 215,137 | ||||||
| Total current liabilities | 283,126 | 283,901 | ||||||
| Deferred revenue, noncurrent | 21,138 | 19,517 | ||||||
| Convertible senior notes, net | 490,355 | 470,228 | ||||||
| Lease liabilities, noncurrent | 75,393 | 11,167 | ||||||
| Other liabilities | 69 | 980 | ||||||
| Total liabilities | 870,081 | 785,793 | ||||||
| Stockholders' equity: | ||||||||
| Preferred stock | — | — | ||||||
| Class A common stock | 12 | 10 | ||||||
| Class B common stock | 1 | 2 | ||||||
| Class C common stock | 1 | 1 | ||||||
| Additional paid-in capital | 724,184 | 641,128 | ||||||
| Accumulated other comprehensive income | 1,166 | 225 | ||||||
| Accumulated deficit | (550,990 | ) | (458,381 | ) | ||||
| Total stockholders’ equity attributable to Pluralsight, Inc. | 174,374 | 182,985 | ||||||
| Non-controlling interests | 37,134 | 63,175 | ||||||
| Total stockholders’ equity | 211,508 | 246,160 | ||||||
| Total liabilities and stockholders' equity | $ | 1,081,589 | $ | 1,031,953 | ||||
PLURALSIGHT, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Operating activities | ||||||||||||||||
| Net loss | $ | (33,771 | ) | $ | (45,462 | ) | $ | (121,014 | ) | $ | (120,110 | ) | ||||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||||||||||
| Depreciation of property and equipment | 2,998 | 2,417 | 8,866 | 6,996 | ||||||||||||
| Amortization of acquired intangible assets | 1,380 | 1,435 | 4,235 | 3,044 | ||||||||||||
| Amortization of course creation costs | 883 | 651 | 2,464 | 1,841 | ||||||||||||
| Equity-based compensation | 24,214 | 24,657 | 76,217 | 67,657 | ||||||||||||
| Amortization of deferred contract acquisition costs | 6,251 | 6,006 | 19,018 | 17,317 | ||||||||||||
| Amortization of debt discount and issuance costs | 6,853 | 6,826 | 20,128 | 15,120 | ||||||||||||
| Investment discount and premium amortization, net | 496 | (1,065 | ) | 68 | (1,771 | ) | ||||||||||
| Loss on debt extinguishment | — | 950 | — | 950 | ||||||||||||
| Other | (104 | ) | (478 | ) | 589 | (178 | ) | |||||||||
| Changes in assets and liabilities, net of acquired assets and liabilities: | ||||||||||||||||
| Accounts receivable | (14,581 | ) | (5,258 | ) | 23,512 | 1,858 | ||||||||||
| Deferred contract acquisition costs | (9,128 | ) | (7,238 | ) | (22,491 | ) | (18,668 | ) | ||||||||
| Prepaid expenses and other assets | (4,026 | ) | 535 | (4,237 | ) | (3,509 | ) | |||||||||
| Right-of-use assets | 1,449 | 1,412 | 4,487 | 4,339 | ||||||||||||
| Accounts payable | 1,480 | (3,573 | ) | (3,126 | ) | (2,520 | ) | |||||||||
| Accrued expenses and other liabilities | 11,492 | 8,317 | 6,880 | 5,188 | ||||||||||||
| Accrued author fees | 277 | (7 | ) | 293 | 1,292 | |||||||||||
| Lease liabilities | (730 | ) | (1,758 | ) | (3,604 | ) | (5,130 | ) | ||||||||
| Deferred revenue | 2,215 | 9,458 | (5,592 | ) | 22,461 | |||||||||||
| Net cash (used in) provided by operating activities | (2,352 | ) | (2,175 | ) | 6,693 | (3,823 | ) | |||||||||
| Investing activities | ||||||||||||||||
| Purchases of property and equipment | (10,706 | ) | (3,029 | ) | (31,226 | ) | (7,619 | ) | ||||||||
| Purchases of content library | (1,803 | ) | (1,381 | ) | (5,596 | ) | (3,822 | ) | ||||||||
| Cash paid for acquisition, net of cash acquired | — | 100 | — | (163,771 | ) | |||||||||||
| Purchases of investments | (110,118 | ) | (212,573 | ) | (427,130 | ) | (529,653 | ) | ||||||||
| Proceeds from sales of investments | — | — | — | 4,967 | ||||||||||||
| Proceeds from maturities of investments | 131,225 | 112,995 | 446,830 | 112,995 | ||||||||||||
| Net cash provided by (used in) investing activities | 8,598 | (103,888 | ) | (17,122 | ) | (586,903 | ) | |||||||||
| Financing activities | ||||||||||||||||
| Proceeds from issuance of common stock from employee equity plans | 3,863 | 245 | 14,741 | 14,876 | ||||||||||||
| Taxes paid related to net share settlement | (1,732 | ) | — | (5,605 | ) | — | ||||||||||
| Proceeds from issuance of convertible senior notes, net of discount and issuance costs | — | — | — | 616,654 | ||||||||||||
| Purchase of capped calls related to issuance of convertible senior notes | — | — | — | (69,432 | ) | |||||||||||
| Repurchases of convertible senior notes | — | (35,000 | ) | — | (35,000 | ) | ||||||||||
| Proceeds from terminations of capped calls related to repurchases of convertible senior notes | — | 1,284 | — | 1,284 | ||||||||||||
| Net cash provided by (used in) financing activities | 2,131 | (33,471 | ) | 9,136 | 528,382 | |||||||||||
| Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | 238 | (130 | ) | 81 | (108 | ) | ||||||||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents | 8,615 | (139,664 | ) | (1,212 | ) | (62,452 | ) | |||||||||
| Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period | 109,604 | 288,283 | 119,431 | 211,071 | ||||||||||||
| Cash, cash equivalents, and restricted cash and cash equivalents, end of period | $ | 118,219 | $ | 148,619 | $ | 118,219 | $ | 148,619 | ||||||||
Investor Relations Contact:
Mark McReynolds
Investor Relations
Pluralsight
801-784-9007
ir@pluralsight.com
Media Contact:
DJ Anderson
Communications/Press
Pluralsight
801-784-9007
dj@pluralsight.com
FAQ
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