Document
 
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
___________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
 
Date of Report (date of earliest event reported)
October 30, 2019
___________________________________
PLURALSIGHT, INC.
(Exact name of registrant as specified in its charter)
___________________________________
 
 
 
Delaware
(State or other jurisdiction of incorporation or organization)
001-38498
(Commission File Number)

82-3605465
(I.R.S. Employer Identification Number)

 
 
 
182 North Union Avenue
 Farmington, Utah 84025
(Address of principal executive offices and zip code)
(801) 784-9007 
(Registrant's telephone number, including area code)
___________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Class A Common Stock, $0.0001 par value per share
 
PS
 
Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ý
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


 
 
 



Item 2.02 Results of Operations and Financial Condition.

On October 30, 2019, the Company issued a press release announcing its financial results for the quarter ended September 30, 2019. A copy of the press release is furnished herewith as Exhibit 99.1 and incorporated by reference.

The information contained in this Item 2.02 and Item 9.01 in this Form 8-K, including the accompanying Exhibit 99.1 hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.
 
 
Exhibit No.
Description of Exhibit
99.1






SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
Pluralsight, Inc.
 
 
 
October 30, 2019
/s/
James Budge
 
 
James Budge
 
 
Chief Financial Officer


Exhibit
Exhibit 99.1

Pluralsight Announces Third Quarter 2019 Results

Third quarter revenue grew 34 percent period over period to $82.6 million
Third quarter billings grew 28 percent period over period to $92.1 million

Silicon Slopes, Utah - October 30, 2019 - Pluralsight, Inc. (NASDAQ: PS), the enterprise technology skills company, today announced financial results for the third quarter ended September 30, 2019.
“We had a solid quarter and improved many of our growth metrics demonstrating that the operational improvements we put into motion at the beginning of the quarter are working. I’m happy with the progress we made in the quarter, and recognize we still have work to do,” said Aaron Skonnard, co-founder and CEO of Pluralsight. “B2B billings grew 32%, total billings grew 28%, revenue grew 34% and our guidance for 2019 remains inside the range we provided and reiterated earlier in the year.”
Third Quarter Financial Highlights
Billings - Q3 2019 billings were $92.1 million, an increase of 28% period over period. Q3 2019 billings from business customers were $80.7 million, an increase of 32% period over period.
Revenue - Q3 2019 revenue was $82.6 million, an increase of 34% period over period.
Gross margin - Q3 2019 gross margin was 78%, compared to 75% in Q3 2018. Q3 2019 non-GAAP gross margin was 80%, compared to 77% in Q3 2018.
Net loss per share - GAAP net loss per share for Q3 2019 was $0.32, compared to $0.26 in Q3 2018. Adjusted pro forma net loss per share for Q3 2019 was $0.08, compared to $0.10 in Q3 2018.
Cash flows - Cash used in operations was $2.2 million for Q3 2019, compared to cash provided by operations of $1.9 million in Q3 2018. Free cash flow was negative $6.6 million for Q3 2019, compared to negative free cash flow of $0.9 million in Q3 2018.
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 October 30, 2019.
Full Year 2019 Guidance
Revenue is expected to be in the range of $314 million to $316 million.
Adjusted pro forma net loss per share is expected to be in the range of $0.37 to $0.35, assuming weighted-average shares outstanding of approximately 137 million.



Guidance for non-GAAP financial measures excludes equity-based compensation, amortization of acquired intangible assets, employer payroll taxes on employee stock transactions, secondary offering costs, acquisition-related costs, amortization of debt discount and issuance costs, and loss on debt extinguishment. 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.
Conference Call Information
Pluralsight will host a conference call for analysts and investors to discuss its second quarter 2019 results and outlook for its full year 2019, today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time).
Date:
October 30, 2019
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: 2080527
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 2080527.
About Pluralsight
Pluralsight is an enterprise technology skills platform that delivers a unified, end-to-end learning experience for businesses across the globe. Through a subscription service, companies are empowered to move at the speed of technology, increasing proficiency, innovation, and efficiency. Founded in 2004 and trusted by Fortune 500 companies, Pluralsight provides customers with on-demand access to a digital ecosystem of learning tools, including adaptive skill tests, directed learning paths, expert-authored courses, interactive labs and analytics. For more information, visit pluralsight.com.
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 statements regarding our future financial and operating performance, including our financial outlook for the full year 2019 and future periods. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: the pace of market adoption of cloud-based learning solutions; our ability to expand our course library and develop new platform features; our ability to successfully integrate GitPrime into our platform; competition; our ability to attract and retain customers; our ability to increase sales of subscriptions to our platform to customers; our ability to expand our sales and marketing capabilities and to improve sales management and execution; and general 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 June 27, 2019 and in our quarterly report on Form 10-Q filed with the SEC on October 30, 2019, 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 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 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, secondary offering costs, and acquisition-related costs.
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, secondary offering costs, acquisition-related costs, amortization of debt discount and issuance costs, and loss on debt extinguishment. 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,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Revenue
 
$
82,620

 
$
61,553

 
$
228,099

 
$
164,769

Cost of revenue(1)(2)
 
17,825

 
15,347

 
52,336

 
46,166

Gross profit
 
64,795

 
46,206

 
175,763

 
118,603

Operating expenses(1)(2):
 
 
 
 
 
 
 
 
Sales and marketing
 
55,727

 
42,632

 
149,852

 
113,956

Technology and content
 
27,799

 
18,137

 
72,829

 
49,858

General and administrative
 
20,817

 
19,818

 
63,591

 
57,112

Total operating expenses
 
104,343

 
80,587

 
286,272

 
220,926

Loss from operations
 
(39,548
)
 
(34,381
)
 
(110,509
)
 
(102,323
)
Other (expense) income:
 
 
 
 
 
 
 
 
Interest expense
 
(7,778
)
 
(342
)
 
(17,499
)
 
(6,476
)
Loss on debt extinguishment
 
(950
)
 

 
(950
)
 
(4,085
)
Other income, net
 
2,878

 
654

 
8,532

 
689

Loss before income taxes
 
(45,398
)
 
(34,069
)
 
(120,426
)
 
(112,195
)
Provision for income taxes
 
(404
)
 
(254
)
 
(701
)
 
(506
)
Net loss
 
$
(45,802
)
 
$
(34,323
)
 
$
(121,127
)
 
$
(112,701
)
Less: Net loss attributable to non-controlling interests
 
(13,073
)
 
(17,980
)
 
(39,763
)
 
(31,890
)
Net loss attributable to Pluralsight, Inc.
 
$
(32,729
)
 
$
(16,343
)
 
$
(81,364
)
 
$
(80,811
)
Less: Accretion of Series A redeemable convertible preferred units
 

 

 

 
(176,275
)
Net loss attributable to shares of Class A common stock
 
$
(32,729
)
 
$
(16,343
)
 
$
(81,364
)
 
$
(257,086
)
Net loss per share, basic and diluted(3)
 
$
(0.32
)
 
$
(0.26
)
 
$
(0.89
)
 
$
(0.47
)
Weighted-average shares of Class A common stock used in computing basic and diluted net loss per share(3)
 
101,407

 
62,472

 
91,741

 
62,400


(1) Includes equity-based compensation as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Cost of revenue
 
$
138

 
$
56

 
$
355

 
$
145

Sales and marketing
 
8,739

 
5,612

 
22,967

 
13,507

Technology and content
 
6,666

 
3,700

 
15,513

 
8,652

General and administrative
 
9,114

 
11,262

 
28,822

 
30,678

Total equity-based compensation
 
$
24,657

 
$
20,630

 
$
67,657

 
$
52,982







PLURALSIGHT, INC.
Condensed Consolidated Statements of Operations (cont.)
(in thousands)
(unaudited)

(2) Includes amortization of acquired intangible assets as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Cost of revenue
 
$
1,209

 
$
880

 
$
2,436

 
$
6,803

Sales and marketing
 
50

 

 
79

 
389

Technology and content
 
176

 
176

 
529

 
529

Total amortization of acquired intangible assets
 
$
1,435

 
$
1,056

 
$
3,044

 
$
7,721


(3) Net loss per share, basic and diluted and weighted-average common shares used in computing basic and diluted net loss per share for the nine months ended September 30, 2019 reflect only the activity for the portion of the period following Pluralsight, Inc.'s initial public offering and the related reorganization transactions.
























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,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Billings
 
$
92,123

 
$
72,243

 
$
250,603

 
$
192,959

Billings from business customers
 
$
80,707

 
$
61,143

 
$
216,967

 
$
161,018

% of billings from business customers
 
88
%
 
85
%
 
87
%
 
83
%
Non-GAAP Financial Measures
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Reconciliation of gross profit to non-GAAP gross profit:
 
 
 
 
 
 
 
 
Gross profit
 
$
64,795

 
$
46,206

 
$
175,763

 
$
118,603

Equity-based compensation
 
138

 
56

 
355

 
145

Amortization of acquired intangible assets
 
1,209

 
880

 
2,436

 
6,803

Employer payroll taxes on employee stock transactions
 
2

 

 
18

 

Non-GAAP gross profit
 
$
66,144

 
$
47,142

 
$
178,572

 
$
125,551

Gross margin
 
78
%
 
75
%
 
77
%
 
72
%
Non-GAAP gross margin
 
80
%
 
77
%
 
78
%
 
76
%
Reconciliation of loss from operations to non-GAAP operating loss:
 
 
 
 
 
 
 
 
Loss from operations
 
$
(39,548
)
 
$
(34,381
)
 
$
(110,509
)
 
$
(102,323
)
Equity-based compensation
 
24,657

 
20,630

 
67,657

 
52,982

Amortization of acquired intangible assets
 
1,435

 
1,056

 
3,044

 
7,721

Employer payroll taxes on employee stock transactions
 
333

 

 
3,106

 

Secondary offering costs
 

 

 
918

 

Acquisition-related costs
 

 

 
835

 

Non-GAAP operating loss
 
$
(13,123
)
 
$
(12,695
)
 
$
(34,949
)
 
$
(41,620
)



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,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Adjusted pro forma net loss per share
 
 
 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
 
 
GAAP net loss attributable to shares of Class A common stock
 
$
(32,729
)
 
$
(16,343
)
 
$
(81,364
)
 
$
(257,086
)
Accretion of Series A redeemable convertible preferred units
 

 

 

 
176,275

Reallocation of net loss attributable to non-controlling interests from the assumed exchange of LLC Units of Pluralsight Holdings for Class A common stock
 
(13,073
)
 
(17,980
)
 
(39,763
)
 
(31,890
)
Equity-based compensation
 
24,657

 
20,630

 
67,657

 
52,982

Amortization of acquired intangibles
 
1,435

 
1,056

 
3,044

 
7,721

Employer payroll taxes on employee stock transactions
 
333

 

 
3,106

 

Secondary offering costs
 

 

 
918

 

Acquisition-related costs
 

 

 
835

 

Amortization of debt discount and issuance costs
 
6,826

 

 
15,120

 
126

Loss on debt extinguishment
 
950

 

 
950

 
4,085

Adjusted pro forma net loss
 
$
(11,601
)
 
$
(12,637
)
 
$
(29,497
)
 
$
(47,787
)
Denominator:
 
 
 
 
 
 
 
 
Weighted-average shares of Class A common stock outstanding
 
101,407

 
62,472

 
91,741

 
31,314

Weighted-average LLC Units of Pluralsight Holdings that are convertible into Class A common stock
 
36,791

 
68,734

 
44,834

 
58,529

Adjusted pro forma weighted-average common shares outstanding, basic and diluted
 
138,198

 
131,206

 
136,575

 
89,843

Adjusted pro forma net loss per share
 
$
(0.08
)
 
$
(0.10
)
 
$
(0.22
)
 
$
(0.53
)

Reconciliation of net cash (used in) provided by operating activities to free cash flow:
 
 
 
 
 
 
 
 
Net cash (used in) provided by operating activities
 
$
(2,171
)
 
$
1,934

 
$
(3,812
)
 
$
(14,283
)
Less: Purchases of property and equipment
 
(3,029
)
 
(2,002
)
 
(7,619
)
 
(6,576
)
Less: Purchases of content library
 
(1,381
)
 
(841
)
 
(3,822
)
 
(2,345
)
Free cash flow
 
$
(6,581
)
 
$
(909
)
 
$
(15,253
)
 
$
(23,204
)












PLURALSIGHT, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)

 
 
September 30,
2019
 
December 31,
2018
 
 
 
 
 
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
120,871

 
$
194,306

Short-term investments
 
328,602

 

Accounts receivable, net
 
63,001

 
63,436

Deferred contract acquisition costs, net
 
17,128

 

Prepaid expenses and other current assets
 
12,664

 
8,323

Total current assets
 
542,266

 
266,065

Restricted cash
 
27,748

 
16,765

Long-term investments
 
84,210

 

Property and equipment, net
 
56,471

 
31,641

Content library, net
 
8,207

 
7,050

Intangible assets, net
 
24,057

 
1,759

Goodwill
 
261,622

 
123,119

Deferred contract acquisition costs, noncurrent, net
 
4,435

 

Other assets
 
1,530

 
1,064

Total assets
 
$
1,010,546

 
$
447,463

Liabilities and stockholders' equity
 
 
 
 
Current liabilities:
 
 
 
 
Accounts payable
 
$
4,664

 
$
7,160

Accrued expenses
 
37,635

 
32,047

Accrued author fees
 
11,294

 
10,002

Deferred revenue
 
177,523

 
157,695

Total current liabilities
 
231,116

 
206,904

Deferred revenue, noncurrent
 
17,586

 
14,886

Convertible senior notes, net
 
463,656

 

Facility financing obligations
 
38,225

 
15,777

Other liabilities
 
2,157

 
1,303

Total liabilities
 
752,740

 
238,870

Stockholders' equity:
 
 
 
 
Preferred stock
 

 

Class A common stock
 
10

 
7

Class B common stock
 
2

 
6

Class C common stack
 
1

 
1

Additional paid-in capital
 
615,713

 
456,899

Accumulated other comprehensive income (loss)
 
185

 
(41
)
Accumulated deficit
 
(426,777
)
 
(355,446
)
Total stockholders’ equity attributable to Pluralsight, Inc.
 
189,134

 
101,426

Non-controlling interests
 
68,672

 
107,167

Total stockholders’ equity
 
257,806

 
208,593

Total liabilities and stockholders' equity
 
$
1,010,546

 
$
447,463




PLURALSIGHT, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
 
Operating activities
 
 
 
 
 
 
 
 
Net loss
 
$
(45,802
)
 
$
(34,323
)
 
$
(121,127
)
 
$
(112,701
)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
 
 
 
 
 
 
 
 
Depreciation of property and equipment
 
2,275

 
1,973

 
6,471

 
6,331

Amortization of acquired intangible assets
 
1,435

 
1,056

 
3,044

 
7,721

Amortization of course creation costs
 
651

 
507

 
1,841

 
1,437

Equity-based compensation
 
24,657

 
20,630

 
67,657

 
52,982

Amortization of deferred contract acquisition costs
 
6,006

 

 
17,317

 

Amortization of debt discount and issuance costs
 
6,826

 

 
15,120

 
1,215

Investment discount and premium amortization, net
 
(1,065
)
 

 
(1,771
)
 

Loss on debt extinguishment
 
950

 

 
950

 
4,085

Other
 
(478
)
 
118

 
(178
)
 
507

Changes in assets and liabilities, net of acquired assets and liabilities:
 
 
 
 
 
 
 
 
Accounts receivable
 
(5,258
)
 
(11,687
)
 
1,858

 
(10,352
)
Deferred contract acquisition costs
 
(7,238
)
 

 
(18,668
)
 

Prepaid expenses and other assets
 
534

 
868

 
(3,660
)
 
(2,990
)
Accounts payable
 
(3,556
)
 
1,516

 
(2,486
)
 
928

Accrued expenses and other liabilities
 
8,441

 
9,751

 
6,067

 
6,912

Accrued author fees
 
(7
)
 
835

 
1,292

 
1,452

Deferred revenue
 
9,458

 
10,690

 
22,461

 
28,190

Net cash (used in) provided by operating activities
 
(2,171
)
 
1,934

 
(3,812
)
 
(14,283
)
Investing activities
 
 
 
 
 
 
 
 
Purchases of property and equipment
 
(3,029
)
 
(2,002
)
 
(7,619
)
 
(6,576
)
Purchases of content library
 
(1,381
)
 
(841
)
 
(3,822
)
 
(2,345
)
Cash paid for acquisition, net of cash acquired
 
100

 

 
(163,771
)
 

Purchases of investments
 
(212,573
)
 

 
(529,653
)
 

Proceeds from sales of investments
 

 

 
4,967

 

Proceeds from maturities of short-term investments
 
112,995

 

 
112,995

 

Net cash used in investing activities
 
(103,888
)
 
(2,843
)
 
(586,903
)
 
(8,921
)
Financing activities
 
 
 
 
 
 
 
 
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

 

Proceeds from issuance of common stock from employee equity plans
 
245

 

 
14,876

 

Proceeds from initial public offering, net of underwriting discounts and commissions
 

 

 

 
332,080

Payments of costs related to initial public offering
 

 
(3,998
)
 

 
(7,083
)
Borrowings of long-term debt
 

 

 

 
20,000

Repayments of long-term debt
 

 

 

 
(137,710
)
Payments of debt extinguishment costs
 

 
(17
)
 

 
(2,179
)
Payments of debt issuance costs
 

 

 

 
(450
)
Payments to settle equity appreciation rights
 

 

 

 
(325
)
Taxes paid related to net share settlement
 

 

 

 
(78
)
Other
 
(4
)
 
(5
)
 
(10
)
 
(13
)
Net cash (used in) provided by financing activities
 
(33,475
)
 
(4,020
)
 
528,372

 
204,242

Effect of exchange rate changes on cash, cash equivalents, and restricted cash
 
(130
)
 
(50
)
 
(109
)
 
(136
)
Net (decrease) increase in cash, cash equivalents, and restricted cash
 
(139,664
)
 
(4,979
)
 
(62,452
)
 
180,902

Cash, cash equivalents, and restricted cash, beginning of period
 
288,283

 
214,358

 
211,071

 
28,477

Cash, cash equivalents, and restricted cash, end of period
 
$
148,619

 
$
209,379

 
$
148,619

 
$
209,379




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