Pluralsight, Inc. (NASDAQ: PS), the enterprise technology skills
and engineering management platform, today announced financial
results for the second quarter ended June 30, 2020.
"Our commitment to our customers and each other
has never been stronger despite these extraordinary circumstances.
I’m proud to see this commitment reflected in our financial
performance for the quarter, and I’m confident that our platform
will continue to help companies and individuals adapt to the
changing remote work environments around the globe," said Aaron
Skonnard, co-founder and CEO of Pluralsight. “This need, coupled
with our commitment to our customers and our world-class, highly
differentiated product offerings allowed us to excel in the current
environment."
Second Quarter Financial
Highlights
- Billings - Q2 2020 billings were $89.0
million, an increase of 11% period over period. Q2 2020 billings
from business customers were $77.7 million, an increase of 12%
period over period.
- Revenue - Q2 2020 revenue was $94.8 million,
an increase of 25% period over period.
- Gross margin - Q2 2020 gross margin was 79%,
compared to 77% in Q2 2019. Q2 2020 non-GAAP gross margin was 81%,
compared to 78% in Q2 2019.
- Net loss per share - GAAP net loss per share
for Q2 2020 was $0.28, compared to $0.30 in Q2 2019. Adjusted pro
forma net loss per share for Q2 2020 was $0.02, compared to $0.06
in Q2 2019.
- Cash flows - Cash used in operations was $9.3
million for Q2 2020, compared to $7.2 million in Q2 2019. Free cash
flow was negative $18.0 million for Q2 2020, compared to negative
$11.1 million in Q2 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 July 29, 2020.
Third Quarter 2020 Guidance
- Revenue is expected to be in the range of $95.0 million to
$96.0 million.
- Adjusted pro forma net loss per share is expected to be in the
range of $0.05 to $0.06, assuming weighted-average shares
outstanding of approximately 144 million.
Full Year 2020 Guidance
- Revenue is expected to be in the range of $375.0 million to
$390.0 million.
- Adjusted pro forma net loss per share is expected to be in the
range of $0.19 to $0.27, 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 third quarter and
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 second quarter 2020 results
and outlook for its third quarter and full year 2020, today at 2:30
p.m. Mountain Time (4:30 p.m. Eastern Time).
Date: |
July 29, 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: 1883129 |
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 1883129.
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 third
quarter and 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 July 29, 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
provided by (used in) 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 June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Revenue |
|
$ |
94,765 |
|
|
$ |
75,862 |
|
|
$ |
187,411 |
|
|
$ |
145,479 |
|
Cost of revenue(1)(2) |
|
19,717 |
|
|
17,803 |
|
|
38,725 |
|
|
34,515 |
|
Gross profit |
|
75,048 |
|
|
58,059 |
|
|
148,686 |
|
|
110,964 |
|
Operating expenses(1)(2): |
|
|
|
|
|
|
|
|
Sales and marketing |
|
57,759 |
|
|
50,046 |
|
|
120,174 |
|
|
94,217 |
|
Technology and content |
|
29,514 |
|
|
24,819 |
|
|
59,658 |
|
|
45,090 |
|
General and administrative |
|
22,996 |
|
|
20,575 |
|
|
46,367 |
|
|
42,766 |
|
Total operating expenses |
|
110,269 |
|
|
95,440 |
|
|
226,199 |
|
|
182,073 |
|
Loss from operations |
|
(35,221 |
) |
|
(37,381 |
) |
|
(77,513 |
) |
|
(71,109 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
Interest expense |
|
(7,241 |
) |
|
(7,346 |
) |
|
(14,390 |
) |
|
(9,024 |
) |
Other income, net |
|
2,267 |
|
|
4,106 |
|
|
4,437 |
|
|
5,782 |
|
Loss before income taxes |
|
(40,195 |
) |
|
(40,621 |
) |
|
(87,466 |
) |
|
(74,351 |
) |
Income tax benefit
(expense) |
|
465 |
|
|
(143 |
) |
|
223 |
|
|
(297 |
) |
Net loss |
|
$ |
(39,730 |
) |
|
$ |
(40,764 |
) |
|
$ |
(87,243 |
) |
|
$ |
(74,648 |
) |
Less: Net loss attributable to
non-controlling interests |
|
(9,801 |
) |
|
(11,637 |
) |
|
(21,995 |
) |
|
(26,446 |
) |
Net loss attributable to Pluralsight, Inc. |
|
$ |
(29,929 |
) |
|
$ |
(29,127 |
) |
|
$ |
(65,248 |
) |
|
$ |
(48,202 |
) |
Net loss per share, basic and
diluted(3) |
|
$ |
(0.28 |
) |
|
$ |
(0.30 |
) |
|
$ |
(0.62 |
) |
|
$ |
(0.56 |
) |
Weighted-average shares of
Class A common stock used in computing basic and diluted net loss
per share |
|
107,153 |
|
|
97,608 |
|
|
105,899 |
|
|
86,827 |
|
(1) Includes equity-based compensation as
follows:
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
296 |
|
|
$ |
133 |
|
|
$ |
566 |
|
|
$ |
217 |
|
Sales and marketing |
|
10,878 |
|
|
7,952 |
|
|
20,400 |
|
|
14,228 |
|
Technology and content |
|
6,884 |
|
|
5,137 |
|
|
13,220 |
|
|
8,847 |
|
General and administrative |
|
8,367 |
|
|
9,510 |
|
|
17,817 |
|
|
19,708 |
|
Total equity-based compensation |
|
$ |
26,425 |
|
|
$ |
22,732 |
|
|
$ |
52,003 |
|
|
$ |
43,000 |
|
(2) Includes amortization of acquired intangible
assets as follows:
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Cost of revenue |
|
$ |
1,209 |
|
|
$ |
702 |
|
|
$ |
2,418 |
|
|
$ |
1,227 |
|
Sales and marketing |
|
50 |
|
|
29 |
|
|
100 |
|
|
29 |
|
Technology and content |
|
161 |
|
|
176 |
|
|
337 |
|
|
353 |
|
Total amortization of acquired intangible assets |
|
$ |
1,420 |
|
|
$ |
907 |
|
|
$ |
2,855 |
|
|
$ |
1,609 |
|
PLURALSIGHT, INC.
Key Business Metrics and Non-GAAP
Financial Measures(dollars in thousands)(unaudited)
Key Business Metrics
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Billings |
|
$ |
89,034 |
|
|
$ |
80,552 |
|
|
$ |
179,312 |
|
|
$ |
158,480 |
|
Billings from business customers |
|
$ |
77,695 |
|
|
$ |
69,104 |
|
|
$ |
158,167 |
|
|
$ |
136,260 |
|
% of billings from business customers |
|
87 |
% |
|
86 |
% |
|
88 |
% |
|
86 |
% |
Non-GAAP Financial Measures
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Reconciliation of
gross profit to non-GAAP gross profit: |
|
|
|
|
|
|
|
|
Gross profit |
|
$ |
75,048 |
|
|
$ |
58,059 |
|
|
$ |
148,686 |
|
|
$ |
110,964 |
|
Equity-based compensation |
|
296 |
|
|
133 |
|
|
566 |
|
|
217 |
|
Amortization of acquired
intangible assets |
|
1,209 |
|
|
702 |
|
|
2,418 |
|
|
1,227 |
|
Employer payroll taxes on
employee stock transactions |
|
15 |
|
|
13 |
|
|
32 |
|
|
16 |
|
Non-GAAP gross profit |
|
$ |
76,568 |
|
|
$ |
58,907 |
|
|
$ |
151,702 |
|
|
$ |
112,424 |
|
Gross margin |
|
79 |
% |
|
77 |
% |
|
79 |
% |
|
76 |
% |
Non-GAAP gross margin |
|
81 |
% |
|
78 |
% |
|
81 |
% |
|
77 |
% |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Reconciliation of
operating expenses to non-GAAP operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
$ |
57,759 |
|
|
$ |
50,046 |
|
|
$ |
120,174 |
|
|
$ |
94,217 |
|
Less: Equity-based
compensation |
|
(10,878 |
) |
|
(7,952 |
) |
|
(20,400 |
) |
|
(14,228 |
) |
Less: Amortization of acquired
intangible assets |
|
(50 |
) |
|
(29 |
) |
|
(100 |
) |
|
(29 |
) |
Less: Employer payroll taxes on
employee stock transactions |
|
(329 |
) |
|
(533 |
) |
|
(821 |
) |
|
(1,141 |
) |
Non-GAAP sales and marketing |
|
$ |
46,502 |
|
|
$ |
41,532 |
|
|
$ |
98,853 |
|
|
$ |
78,819 |
|
Sales and marketing as a
percentage of revenue |
|
61 |
% |
|
66 |
% |
|
64 |
% |
|
65 |
% |
Non-GAAP sales and marketing as a
percentage of revenue |
|
49 |
% |
|
55 |
% |
|
53 |
% |
|
54 |
% |
|
|
|
|
|
|
|
|
|
Technology and content |
|
$ |
29,514 |
|
|
$ |
24,819 |
|
|
$ |
59,658 |
|
|
$ |
45,090 |
|
Less: Equity-based
compensation |
|
(6,884 |
) |
|
(5,137 |
) |
|
(13,220 |
) |
|
(8,847 |
) |
Less: Amortization of acquired
intangible assets |
|
(161 |
) |
|
(176 |
) |
|
(337 |
) |
|
(353 |
) |
Less: Employer payroll taxes on
employee stock transactions |
|
(381 |
) |
|
(434 |
) |
|
(852 |
) |
|
(914 |
) |
Non-GAAP technology and content |
|
$ |
22,088 |
|
|
$ |
19,072 |
|
|
$ |
45,249 |
|
|
$ |
34,976 |
|
Technology and content as a
percentage of revenue |
|
31 |
% |
|
33 |
% |
|
32 |
% |
|
31 |
% |
Non-GAAP technology and content
as a percentage of revenue |
|
23 |
% |
|
25 |
% |
|
24 |
% |
|
24 |
% |
|
|
|
|
|
|
|
|
|
General and administrative |
|
$ |
22,996 |
|
|
$ |
20,575 |
|
|
$ |
46,367 |
|
|
$ |
42,766 |
|
Less: Equity-based
compensation |
|
(8,367 |
) |
|
(9,510 |
) |
|
(17,817 |
) |
|
(19,708 |
) |
Less: Employer payroll taxes on
employee stock transactions |
|
(272 |
) |
|
(349 |
) |
|
(670 |
) |
|
(702 |
) |
Less: Secondary offering
costs |
|
(1,260 |
) |
|
— |
|
|
(1,260 |
) |
|
(918 |
) |
Less: Acquisition-related
costs |
|
— |
|
|
(835 |
) |
|
— |
|
|
(835 |
) |
Non-GAAP general and administrative |
|
$ |
13,097 |
|
|
$ |
9,881 |
|
|
$ |
26,620 |
|
|
$ |
20,603 |
|
General and administrative as a
percentage of revenue |
|
24 |
% |
|
27 |
% |
|
25 |
% |
|
29 |
% |
Non-GAAP general and
administrative as a percentage of revenue |
|
14 |
% |
|
13 |
% |
|
14 |
% |
|
14 |
% |
Reconciliation of loss
from operations to non-GAAP operating loss: |
|
|
|
|
|
|
|
|
Loss from operations |
|
$ |
(35,221 |
) |
|
$ |
(37,381 |
) |
|
$ |
(77,513 |
) |
|
$ |
(71,109 |
) |
Equity-based compensation |
|
26,425 |
|
|
22,732 |
|
|
52,003 |
|
|
43,000 |
|
Amortization of acquired
intangible assets |
|
1,420 |
|
|
907 |
|
|
2,855 |
|
|
1,609 |
|
Employer payroll taxes on
employee stock transactions |
|
997 |
|
|
1,329 |
|
|
2,375 |
|
|
2,773 |
|
Secondary offering costs |
|
1,260 |
|
|
— |
|
|
1,260 |
|
|
918 |
|
Acquisition-related costs |
|
— |
|
|
835 |
|
|
— |
|
|
835 |
|
Non-GAAP operating loss |
|
$ |
(5,119 |
) |
|
$ |
(11,578 |
) |
|
$ |
(19,020 |
) |
|
$ |
(21,974 |
) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Adjusted pro forma net
loss per share |
|
|
|
|
|
|
|
|
Numerator: |
|
|
|
|
|
|
|
|
Net loss attributable to Pluralsight, Inc. |
|
$ |
(29,929 |
) |
|
$ |
(29,127 |
) |
|
$ |
(65,248 |
) |
|
$ |
(48,202 |
) |
Net loss attributable to
non-controlling interests |
|
(9,801 |
) |
|
(11,637 |
) |
|
(21,995 |
) |
|
(26,446 |
) |
Equity-based compensation |
|
26,425 |
|
|
22,732 |
|
|
52,003 |
|
|
43,000 |
|
Amortization of acquired
intangibles |
|
1,420 |
|
|
907 |
|
|
2,855 |
|
|
1,609 |
|
Employer payroll taxes on
employee stock transactions |
|
997 |
|
|
1,329 |
|
|
2,375 |
|
|
2,773 |
|
Secondary offering costs |
|
1,260 |
|
|
— |
|
|
1,260 |
|
|
918 |
|
Acquisition-related costs |
|
— |
|
|
835 |
|
|
— |
|
|
835 |
|
Amortization of debt discount and
issuance costs |
|
6,684 |
|
|
6,749 |
|
|
13,275 |
|
|
8,294 |
|
Adjusted pro forma net loss |
|
$ |
(2,944 |
) |
|
$ |
(8,212 |
) |
|
$ |
(15,475 |
) |
|
$ |
(17,219 |
) |
Denominator: |
|
|
|
|
|
|
|
|
Weighted-average shares of Class
A common stock outstanding |
|
107,153 |
|
|
97,608 |
|
|
105,899 |
|
|
86,827 |
|
Weighted-average LLC Units of
Pluralsight Holdings that are convertible into Class A common
stock |
|
35,276 |
|
|
39,006 |
|
|
35,702 |
|
|
48,923 |
|
Adjusted pro forma weighted-average common shares outstanding,
basic and diluted |
|
142,429 |
|
|
136,614 |
|
|
141,601 |
|
|
135,750 |
|
Adjusted pro forma net loss per share |
|
$ |
(0.02 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.11 |
) |
|
$ |
(0.13 |
) |
Reconciliation of net
cash (used in) provided by operating activities to free cash
flow: |
|
|
|
|
|
|
|
|
Net cash (used in) provided by operating activities |
|
$ |
(9,250 |
) |
|
$ |
(7,184 |
) |
|
$ |
9,045 |
|
|
$ |
(1,648 |
) |
Less: Purchases of property and
equipment |
|
(6,626 |
) |
|
(2,457 |
) |
|
(20,520 |
) |
|
(4,590 |
) |
Less: Purchases of content
library |
|
(2,113 |
) |
|
(1,504 |
) |
|
(3,793 |
) |
|
(2,441 |
) |
Free cash flow |
|
$ |
(17,989 |
) |
|
$ |
(11,145 |
) |
|
$ |
(15,268 |
) |
|
$ |
(8,679 |
) |
PLURALSIGHT, INC.
Condensed Consolidated Balance
Sheets(in thousands)(unaudited)
|
|
June 30, 2020 |
|
December 31, 2019 |
|
|
|
|
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
87,982 |
|
|
$ |
90,515 |
|
Short-term investments |
|
318,483 |
|
|
332,234 |
|
Accounts receivable, net |
|
61,578 |
|
|
101,576 |
|
Deferred contract acquisition costs |
|
17,745 |
|
|
18,331 |
|
Prepaid expenses and other current assets |
|
14,764 |
|
|
14,174 |
|
Total current assets |
|
500,552 |
|
|
556,830 |
|
Restricted cash and cash
equivalents |
|
21,622 |
|
|
28,916 |
|
Long-term investments |
|
122,224 |
|
|
105,805 |
|
Property and equipment,
net |
|
60,788 |
|
|
22,896 |
|
Right-of-use assets |
|
62,982 |
|
|
15,804 |
|
Content library, net |
|
11,017 |
|
|
8,958 |
|
Intangible assets, net |
|
19,787 |
|
|
22,631 |
|
Goodwill |
|
262,532 |
|
|
262,532 |
|
Deferred contract acquisition
costs, noncurrent |
|
7,164 |
|
|
5,982 |
|
Other assets |
|
1,709 |
|
|
1,599 |
|
Total assets |
|
$ |
1,070,377 |
|
|
$ |
1,031,953 |
|
Liabilities and
stockholders' equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
5,985 |
|
|
$ |
10,615 |
|
Accrued expenses |
|
38,950 |
|
|
40,703 |
|
Accrued author fees |
|
11,711 |
|
|
11,694 |
|
Lease liabilities |
|
7,752 |
|
|
5,752 |
|
Deferred revenue |
|
207,575 |
|
|
215,137 |
|
Total current liabilities |
|
271,973 |
|
|
283,901 |
|
Deferred revenue,
noncurrent |
|
18,813 |
|
|
19,517 |
|
Convertible senior notes,
net |
|
483,503 |
|
|
470,228 |
|
Lease liabilities,
noncurrent |
|
76,340 |
|
|
11,167 |
|
Other liabilities |
|
70 |
|
|
980 |
|
Total liabilities |
|
850,699 |
|
|
785,793 |
|
Stockholders' equity: |
|
|
|
|
Preferred stock |
|
— |
|
|
— |
|
Class A common stock |
|
11 |
|
|
10 |
|
Class B common stock |
|
2 |
|
|
2 |
|
Class C common stock |
|
1 |
|
|
1 |
|
Additional paid-in capital |
|
693,768 |
|
|
641,128 |
|
Accumulated other comprehensive income |
|
1,154 |
|
|
225 |
|
Accumulated deficit |
|
(523,629 |
) |
|
(458,381 |
) |
Total stockholders’ equity attributable to Pluralsight, Inc. |
|
171,307 |
|
|
182,985 |
|
Non-controlling interests |
|
48,371 |
|
|
63,175 |
|
Total stockholders’ equity |
|
219,678 |
|
|
246,160 |
|
Total liabilities and stockholders' equity |
|
$ |
1,070,377 |
|
|
$ |
1,031,953 |
|
PLURALSIGHT, INC.
Condensed Consolidated Statements of Cash
Flows(in thousands)(unaudited)
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(39,730 |
) |
|
$ |
(40,764 |
) |
|
$ |
(87,243 |
) |
|
$ |
(74,648 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by
operating activities: |
|
|
|
|
|
|
|
|
Depreciation of property and equipment |
|
3,225 |
|
|
2,332 |
|
|
5,868 |
|
|
4,579 |
|
Amortization of acquired intangible assets |
|
1,420 |
|
|
907 |
|
|
2,855 |
|
|
1,609 |
|
Amortization of course creation costs |
|
820 |
|
|
611 |
|
|
1,581 |
|
|
1,190 |
|
Equity-based compensation |
|
26,425 |
|
|
22,732 |
|
|
52,003 |
|
|
43,000 |
|
Amortization of deferred contract acquisition costs |
|
6,316 |
|
|
5,444 |
|
|
12,767 |
|
|
11,311 |
|
Amortization of debt discount and issuance costs |
|
6,684 |
|
|
6,749 |
|
|
13,275 |
|
|
8,294 |
|
Investment discount and premium amortization, net |
|
(52 |
) |
|
(706 |
) |
|
(428 |
) |
|
(706 |
) |
Other |
|
32 |
|
|
275 |
|
|
693 |
|
|
300 |
|
Changes in assets and liabilities, net of acquired assets and
liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
(1,107 |
) |
|
(4,276 |
) |
|
38,093 |
|
|
7,116 |
|
Deferred contract acquisition costs |
|
(7,492 |
) |
|
(5,579 |
) |
|
(13,363 |
) |
|
(11,430 |
) |
Prepaid expenses and other assets |
|
(497 |
) |
|
(2,243 |
) |
|
(211 |
) |
|
(4,044 |
) |
Right-of-use assets |
|
1,548 |
|
|
1,643 |
|
|
3,038 |
|
|
2,927 |
|
Accounts payable |
|
(2,139 |
) |
|
18 |
|
|
(4,606 |
) |
|
1,053 |
|
Accrued expenses and other liabilities |
|
1,719 |
|
|
2,030 |
|
|
(4,612 |
) |
|
(3,129 |
) |
Accrued author fees |
|
114 |
|
|
564 |
|
|
16 |
|
|
1,299 |
|
Lease liabilities |
|
(949 |
) |
|
(1,636 |
) |
|
(2,874 |
) |
|
(3,372 |
) |
Deferred revenue |
|
(5,587 |
) |
|
4,715 |
|
|
(7,807 |
) |
|
13,003 |
|
Net cash (used in) provided by operating activities |
|
(9,250 |
) |
|
(7,184 |
) |
|
9,045 |
|
|
(1,648 |
) |
Investing activities |
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
(6,626 |
) |
|
(2,457 |
) |
|
(20,520 |
) |
|
(4,590 |
) |
Purchases of content library |
|
(2,113 |
) |
|
(1,504 |
) |
|
(3,793 |
) |
|
(2,441 |
) |
Cash paid for acquisition, net of cash acquired |
|
— |
|
|
(163,871 |
) |
|
— |
|
|
(163,871 |
) |
Purchases of investments |
|
(155,150 |
) |
|
(317,080 |
) |
|
(317,012 |
) |
|
(317,080 |
) |
Proceeds from sales of investments |
|
— |
|
|
4,967 |
|
|
— |
|
|
4,967 |
|
Proceeds from maturities of investments |
|
155,070 |
|
|
— |
|
|
315,605 |
|
|
— |
|
Net cash used in investing activities |
|
(8,819 |
) |
|
(479,945 |
) |
|
(25,720 |
) |
|
(483,015 |
) |
Financing activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock from employee equity
plans |
|
10,179 |
|
|
12,010 |
|
|
10,878 |
|
|
14,631 |
|
Taxes paid related to net share settlement |
|
(1,523 |
) |
|
— |
|
|
(3,873 |
) |
|
— |
|
Proceeds from issuance of convertible senior notes, net of discount
and issuance costs |
|
— |
|
|
(1,009 |
) |
|
— |
|
|
616,654 |
|
Purchase of capped calls related to issuance of convertible senior
notes |
|
— |
|
|
— |
|
|
— |
|
|
(69,432 |
) |
Net cash provided by financing activities |
|
8,656 |
|
|
11,001 |
|
|
7,005 |
|
|
561,853 |
|
Effect of exchange rate changes on cash, cash equivalents, and
restricted cash and cash equivalents |
|
110 |
|
|
(4 |
) |
|
(157 |
) |
|
22 |
|
Net (decrease) increase in cash, cash equivalents, and
restricted cash and cash equivalents |
|
(9,303 |
) |
|
(476,132 |
) |
|
(9,827 |
) |
|
77,212 |
|
Cash, cash equivalents, and restricted cash and cash
equivalents, beginning of period |
|
118,907 |
|
|
764,415 |
|
|
119,431 |
|
|
211,071 |
|
Cash, cash equivalents, and restricted cash and cash
equivalents, end of period |
|
$ |
109,604 |
|
|
$ |
288,283 |
|
|
$ |
109,604 |
|
|
$ |
288,283 |
|
Investor Relations Contact:Mark
McReynoldsInvestor
RelationsPluralsight801-784-9007ir@pluralsight.com
Media Contact:DJ
AndersonCommunications/PressPluralsight801-784-9007dj@pluralsight.com
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