Pluralsight (PS) Tops Q4 EPS by 5c, Revenues Beat; Offers Q1 & FY20 EPS/Revenue Outlook

Pluralsight (NASDAQ: PS) reported Q4 EPS of ($0.09), $0.05 better than the analyst estimate of ($0.14). Revenue for the quarter came in at $88.8 million versus the consensus estimate of $87.56 million.

“Pluralsight’s fourth quarter capped off a strong second half to the year, further demonstrating that the operational improvements we implemented in the second half of 2019 are working and laying the foundation for durable, long-term B2B billings growth above 30%,” said Aaron Skonnard, co-founder and CEO of Pluralsight. “We began 2020 with nearly a million business users and 18,000 business customers, and are on track to carry the momentum from the second half of 2019 through 2020.”

Fourth Quarter Financial Highlights

• Billings - Q4 2019 billings were $128.4 million, an increase of 28% period over period. Q4 2019 billings from business customers were $113.2 million, an increase of 30% period over period.
• Revenue - Q4 2019 revenue was $88.8 million, an increase of 32% period over period.
• Gross margin - Q4 2019 gross margin was 79%, compared to 76% in Q4 2018. Q4 2019 non-GAAP gross margin was 80%, compared to 77% in Q4 2018.
• Net loss per share - GAAP net loss per share for Q4 2019 was $0.31, compared to $0.26 in Q4 2018. Adjusted pro forma net loss per share for Q4 2019 and Q4 2018 was $0.09.
• Cash flows - Cash used in operations was $7.9 million for Q4 2019, compared to cash provided by operations of $8.4 million in Q4 2018. Free cash flow was negative $13.0 million for Q4 2019, compared to positive free cash flow of $5.2 million in Q4 2018.

GUIDANCE:

Pluralsight sees Q1 2020 EPS of ($0.14)-($0.13), versus the consensus of ($0.14). Pluralsight sees Q1 2020 revenue of $88-89 million, versus the consensus of $87.42 million.

Pluralsight sees FY2020 EPS of ($0.50)-($0.45), versus the consensus of ($0.51). Pluralsight sees FY2020 revenue of $390-400 million, versus the consensus of $395.27 million.

The following forward-looking statements reflect Pluralsight's expectations as of February 12, 2020.

First Quarter 2020 Guidance

• Revenue is expected to be in the range of $88 million to $89 million.
• Adjusted pro forma net loss per share is expected to be in the range of $0.14 to $0.13, assuming weighted-average shares outstanding of approximately 141 million.

Full Year 2020 Guidance

• Revenue is expected to be in the range of $390 million to $400 million.
• Adjusted pro forma net loss per share is expected to be in the range of $0.50 to $0.45, assuming weighted-average shares outstanding of approximately 143 million.

For earnings history and earnings-related data on Pluralsight (PS) click here.

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