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 of 9% period over period.
Q3 2020 billings from business customers were $88.6 million, an
increase of 10% period over period.
- Revenue - Q3 2020
revenue was $99.5 million, an increase of 20% period over
period.
- Gross margin - Q3
2020 gross margin was 79%, compared to 78% in Q3 2019. Q3 2020
non-GAAP gross margin was 81%, compared to 80% 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 to $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
McReynoldsInvestor
RelationsPluralsight801-784-9007ir@pluralsight.com
Media Contact:DJ Anderson
Communications/PressPluralsight801-784-9007dj@pluralsight.com
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