ps-20200930
0001725579false2020Q312/310.0258023P3YP2Y00017255792020-01-012020-09-30xbrli:shares0001725579us-gaap:CommonStockMember2020-10-300001725579us-gaap:CommonClassAMember2020-10-300001725579us-gaap:CommonClassBMember2020-10-300001725579us-gaap:CommonClassCMember2020-10-30iso4217:USD00017255792020-09-3000017255792019-12-31iso4217:USDxbrli:shares0001725579us-gaap:CommonClassAMember2020-09-300001725579us-gaap:CommonClassAMember2019-12-310001725579us-gaap:CommonClassBMember2019-12-310001725579us-gaap:CommonClassBMember2020-09-300001725579us-gaap:CommonClassCMember2020-09-300001725579us-gaap:CommonClassCMember2019-12-3100017255792020-07-012020-09-3000017255792019-07-012019-09-3000017255792019-01-012019-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-06-300001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-06-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-06-300001725579us-gaap:AdditionalPaidInCapitalMember2020-06-300001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-06-300001725579us-gaap:RetainedEarningsMember2020-06-300001725579us-gaap:NoncontrollingInterestMember2020-06-3000017255792020-06-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-07-012020-09-300001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-07-012020-09-300001725579us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001725579us-gaap:NoncontrollingInterestMember2020-07-012020-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-07-012020-09-300001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-07-012020-09-300001725579us-gaap:RetainedEarningsMember2020-07-012020-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-09-300001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-09-300001725579us-gaap:AdditionalPaidInCapitalMember2020-09-300001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-09-300001725579us-gaap:RetainedEarningsMember2020-09-300001725579us-gaap:NoncontrollingInterestMember2020-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2019-06-300001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-06-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2019-06-300001725579us-gaap:AdditionalPaidInCapitalMember2019-06-300001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-06-300001725579us-gaap:RetainedEarningsMember2019-06-300001725579us-gaap:NoncontrollingInterestMember2019-06-3000017255792019-06-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2019-07-012019-09-300001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-07-012019-09-300001725579us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300001725579us-gaap:NoncontrollingInterestMember2019-07-012019-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2019-07-012019-09-300001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-07-012019-09-300001725579us-gaap:RetainedEarningsMember2019-07-012019-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2019-09-300001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2019-09-300001725579us-gaap:AdditionalPaidInCapitalMember2019-09-300001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-09-300001725579us-gaap:RetainedEarningsMember2019-09-300001725579us-gaap:NoncontrollingInterestMember2019-09-3000017255792019-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2019-12-310001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-12-310001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2019-12-310001725579us-gaap:AdditionalPaidInCapitalMember2019-12-310001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-12-310001725579us-gaap:RetainedEarningsMember2019-12-310001725579us-gaap:NoncontrollingInterestMember2019-12-310001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2020-01-012020-09-300001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2020-01-012020-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2020-01-012020-09-300001725579us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001725579us-gaap:NoncontrollingInterestMember2020-01-012020-09-300001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2020-01-012020-09-300001725579us-gaap:RetainedEarningsMember2020-01-012020-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2018-12-310001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2018-12-310001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2018-12-310001725579us-gaap:AdditionalPaidInCapitalMember2018-12-310001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2018-12-310001725579us-gaap:RetainedEarningsMember2018-12-310001725579us-gaap:NoncontrollingInterestMember2018-12-3100017255792018-12-310001725579us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001725579srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:NoncontrollingInterestMember2018-12-310001725579srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2018-12-310001725579us-gaap:CommonStockMemberus-gaap:CommonClassAMember2019-01-012019-09-300001725579us-gaap:CommonClassBMemberus-gaap:CommonStockMember2019-01-012019-09-300001725579us-gaap:CommonStockMemberus-gaap:CommonClassCMember2019-01-012019-09-300001725579us-gaap:AdditionalPaidInCapitalMember2019-01-012019-09-300001725579us-gaap:NoncontrollingInterestMember2019-01-012019-09-300001725579us-gaap:AociIncludingPortionAttributableToNoncontrollingInterestMember2019-01-012019-09-300001725579us-gaap:RetainedEarningsMember2019-01-012019-09-30xbrli:pure0001725579ps:PluralsightInc.Memberps:PluralsightHoldingsMember2020-01-012020-09-300001725579ps:ContinuingMembersMemberps:PluralsightHoldingsMember2020-01-012020-09-300001725579us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberps:SubscriptionAccountsMember2020-07-012020-09-300001725579us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberps:SubscriptionAccountsMember2019-07-012019-09-300001725579us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberps:SubscriptionAccountsMember2020-01-012020-09-300001725579us-gaap:ProductConcentrationRiskMemberus-gaap:SalesRevenueNetMemberps:SubscriptionAccountsMember2019-01-012019-09-300001725579country:US2020-07-012020-09-300001725579country:USus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-07-012020-09-300001725579country:US2019-07-012019-09-300001725579country:USus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-07-012019-09-300001725579us-gaap:EMEAMember2020-07-012020-09-300001725579us-gaap:EMEAMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-07-012020-09-300001725579us-gaap:EMEAMember2019-07-012019-09-300001725579us-gaap:EMEAMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-07-012019-09-300001725579ps:OtherForeignLocationsMember2020-07-012020-09-300001725579ps:OtherForeignLocationsMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-07-012020-09-300001725579ps:OtherForeignLocationsMember2019-07-012019-09-300001725579ps:OtherForeignLocationsMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-07-012019-09-300001725579us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-07-012020-09-300001725579us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-07-012019-09-300001725579country:US2020-01-012020-09-300001725579country:USus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-01-012020-09-300001725579country:US2019-01-012019-09-300001725579country:USus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-01-012019-09-300001725579us-gaap:EMEAMember2020-01-012020-09-300001725579us-gaap:EMEAMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-01-012020-09-300001725579us-gaap:EMEAMember2019-01-012019-09-300001725579us-gaap:EMEAMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-01-012019-09-300001725579ps:OtherForeignLocationsMember2020-01-012020-09-300001725579ps:OtherForeignLocationsMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-01-012020-09-300001725579ps:OtherForeignLocationsMember2019-01-012019-09-300001725579ps:OtherForeignLocationsMemberus-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-01-012019-09-300001725579us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2020-01-012020-09-300001725579us-gaap:SalesRevenueNetMemberus-gaap:GeographicConcentrationRiskMember2019-01-012019-09-300001725579country:GB2020-07-012020-09-300001725579country:GB2019-07-012019-09-300001725579country:GB2020-01-012020-09-300001725579country:GB2019-01-012019-09-300001725579ps:BusinessCustomersMember2020-07-012020-09-300001725579ps:BusinessCustomersMember2019-07-012019-09-300001725579ps:BusinessCustomersMember2020-01-012020-09-300001725579ps:BusinessCustomersMember2019-01-012019-09-300001725579ps:IndividualCustomersMember2020-07-012020-09-300001725579ps:IndividualCustomersMember2019-07-012019-09-300001725579ps:IndividualCustomersMember2020-01-012020-09-300001725579ps:IndividualCustomersMember2019-01-012019-09-3000017255792020-10-012020-09-300001725579us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2020-09-300001725579us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2020-09-300001725579us-gaap:USTreasurySecuritiesMemberus-gaap:ShortTermInvestmentsMember2020-09-300001725579us-gaap:CorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2020-09-300001725579us-gaap:ShortTermInvestmentsMemberus-gaap:ForeignGovernmentDebtSecuritiesMember2020-09-300001725579us-gaap:CertificatesOfDepositMemberus-gaap:ShortTermInvestmentsMember2020-09-300001725579us-gaap:ShortTermInvestmentsMember2020-09-300001725579us-gaap:MoneyMarketFundsMemberps:RestrictedCashEquivalentsMember2020-09-300001725579ps:LongTermInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2020-09-300001725579ps:LongTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2020-09-300001725579ps:LongTermInvestmentsMember2020-09-300001725579us-gaap:CashAndCashEquivalentsMemberus-gaap:MoneyMarketFundsMember2019-12-310001725579us-gaap:CommercialPaperMemberus-gaap:CashAndCashEquivalentsMember2019-12-310001725579us-gaap:CashAndCashEquivalentsMember2019-12-310001725579us-gaap:CommercialPaperMemberus-gaap:ShortTermInvestmentsMember2019-12-310001725579us-gaap:USTreasurySecuritiesMemberus-gaap:ShortTermInvestmentsMember2019-12-310001725579us-gaap:CorporateDebtSecuritiesMemberus-gaap:ShortTermInvestmentsMember2019-12-310001725579us-gaap:ShortTermInvestmentsMember2019-12-310001725579us-gaap:MoneyMarketFundsMemberps:RestrictedCashEquivalentsMember2019-12-310001725579ps:LongTermInvestmentsMemberus-gaap:CorporateDebtSecuritiesMember2019-12-310001725579ps:LongTermInvestmentsMemberus-gaap:USGovernmentAgenciesDebtSecuritiesMember2019-12-310001725579ps:LongTermInvestmentsMemberus-gaap:CertificatesOfDepositMember2019-12-310001725579ps:LongTermInvestmentsMember2019-12-310001725579us-gaap:InvestmentsMember2020-09-300001725579us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel1Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel2Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel3Memberus-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:ForeignGovernmentDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:FairValueMeasurementsRecurringMember2020-09-300001725579us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel2Memberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel2Memberus-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:CommercialPaperMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:CommercialPaperMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel2Memberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:USTreasurySecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel1Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel3Memberus-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:CorporateDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel1Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel2Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel3Memberus-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:FairValueInputsLevel2Memberus-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:CertificatesOfDepositMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579us-gaap:CertificatesOfDepositMemberus-gaap:FairValueMeasurementsRecurringMember2019-12-310001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2020-09-300001725579us-gaap:FairValueInputsLevel2Member2020-09-300001725579us-gaap:ComputerEquipmentMember2020-09-300001725579us-gaap:ComputerEquipmentMember2019-12-310001725579ps:SoftwareMember2020-09-300001725579ps:SoftwareMember2019-12-310001725579us-gaap:SoftwareDevelopmentMember2020-09-300001725579us-gaap:SoftwareDevelopmentMember2019-12-310001725579us-gaap:FurnitureAndFixturesMember2020-09-300001725579us-gaap:FurnitureAndFixturesMember2019-12-310001725579us-gaap:LeaseholdImprovementsMember2020-09-300001725579us-gaap:LeaseholdImprovementsMember2019-12-310001725579us-gaap:ConstructionInProgressMember2020-09-300001725579us-gaap:ConstructionInProgressMember2019-12-310001725579ps:GitPrimeInc.Member2019-05-092019-05-090001725579ps:GitPrimeInc.Member2019-05-090001725579us-gaap:DevelopedTechnologyRightsMemberps:GitPrimeInc.Member2019-05-092019-05-090001725579us-gaap:CustomerRelationshipsMemberps:GitPrimeInc.Member2019-05-092019-05-090001725579ps:GitPrimeInc.Member2019-01-012019-12-310001725579ps:GitPrimeInc.Member2019-07-012019-09-300001725579ps:GitPrimeInc.Member2019-01-012019-09-300001725579ps:AcquiredContentLibraryMember2020-09-300001725579ps:CourseCreationCostsMember2020-09-300001725579ps:ContentLibraryMember2020-09-300001725579us-gaap:DevelopedTechnologyRightsMember2020-09-300001725579us-gaap:TrademarksMember2020-09-300001725579us-gaap:NoncompeteAgreementsMember2020-09-300001725579us-gaap:CustomerRelationshipsMember2020-09-300001725579us-gaap:InternetDomainNamesMember2020-09-300001725579us-gaap:OtherIntangibleAssetsMember2020-09-300001725579ps:AcquiredContentLibraryMember2019-12-310001725579ps:CourseCreationCostsMember2019-12-310001725579ps:ContentLibraryMember2019-12-310001725579us-gaap:DevelopedTechnologyRightsMember2019-12-310001725579us-gaap:TrademarksMember2019-12-310001725579us-gaap:NoncompeteAgreementsMember2019-12-310001725579us-gaap:CustomerRelationshipsMember2019-12-310001725579us-gaap:DatabasesMember2019-12-310001725579us-gaap:InternetDomainNamesMember2019-12-310001725579us-gaap:OtherIntangibleAssetsMember2019-12-310001725579us-gaap:OtherIntangibleAssetsMember2019-07-012019-09-300001725579us-gaap:OtherIntangibleAssetsMember2020-07-012020-09-300001725579us-gaap:OtherIntangibleAssetsMember2020-01-012020-09-300001725579us-gaap:OtherIntangibleAssetsMember2019-01-012019-09-300001725579ps:CourseCreationCostsMember2020-07-012020-09-300001725579ps:CourseCreationCostsMember2019-07-012019-09-300001725579ps:CourseCreationCostsMember2020-01-012020-09-300001725579ps:CourseCreationCostsMember2019-01-012019-09-300001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2019-03-310001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2019-03-012019-03-310001725579us-gaap:CommonStockMemberps:SeniorNotesDueIn2024Memberus-gaap:CommonClassAMemberus-gaap:ConvertibleDebtMember2019-03-310001725579us-gaap:DebtInstrumentRedemptionPeriodOneMemberps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2019-03-012019-03-31ps:day0001725579srt:MinimumMemberps:SeniorNotesDueIn2024Memberps:ConversionInstance130Memberus-gaap:ConvertibleDebtMember2019-03-012019-03-310001725579ps:SeniorNotesDueIn2024Memberps:ConversionInstance130Memberus-gaap:ConvertibleDebtMember2019-03-012019-03-310001725579srt:MinimumMemberps:SeniorNotesDueIn2024Memberps:ConversionInstance98Memberus-gaap:ConvertibleDebtMember2019-03-012019-03-310001725579ps:SeniorNotesDueIn2024Membersrt:MaximumMemberps:ConversionInstance98Memberus-gaap:ConvertibleDebtMember2019-03-012019-03-310001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2020-01-012020-09-300001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2019-09-300001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2019-09-012019-09-300001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2020-07-012020-09-300001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2019-07-012019-09-300001725579ps:SeniorNotesDueIn2024Memberus-gaap:ConvertibleDebtMember2019-01-012019-09-300001725579ps:SeniorNotesDueIn2024Member2020-09-300001725579ps:SeniorNotesDueIn2024Member2019-03-012019-03-3100017255792019-09-012019-09-300001725579us-gaap:CommonStockMemberps:SeniorNotesDueIn2024Memberus-gaap:CommonClassAMemberus-gaap:ConvertibleDebtMember2019-03-012019-03-310001725579srt:MinimumMember2020-09-300001725579srt:MaximumMember2020-09-300001725579srt:MaximumMember2020-01-012020-09-300001725579ps:DraperUtahOfficeSpace2018Member2018-08-310001725579ps:DraperUtahOfficeSpace2018Member2020-09-30ps:extension0001725579ps:DraperUtahOfficeSpace2018Member2020-01-012020-09-3000017255792018-08-310001725579ps:TenantImprovementsMember2020-09-300001725579ps:TenantImprovementsMember2019-12-310001725579us-gaap:LetterOfCreditMember2019-12-310001725579us-gaap:LetterOfCreditMember2020-09-300001725579ps:PluralsightInc.Memberps:PluralsightHoldingsMember2020-09-300001725579ps:PluralsightInc.Memberps:PluralsightHoldingsMember2019-12-310001725579ps:PluralsightInc.Memberps:PluralsightHoldingsMember2019-01-012019-12-310001725579ps:ContinuingMembersMemberps:PluralsightHoldingsMember2020-09-300001725579ps:ContinuingMembersMemberps:PluralsightHoldingsMember2019-12-310001725579ps:ContinuingMembersMemberps:PluralsightHoldingsMember2019-01-012019-12-310001725579ps:PluralsightHoldingsMember2020-09-300001725579ps:PluralsightHoldingsMember2020-01-012020-09-300001725579ps:PluralsightHoldingsMember2019-12-310001725579ps:PluralsightHoldingsMember2019-01-012019-12-310001725579ps:LLCIncentiveUnitsMemberps:PluralsightHoldingsMember2020-09-300001725579ps:LLCIncentiveUnitsMemberps:PluralsightHoldingsMember2019-12-310001725579us-gaap:StockCompensationPlanMemberps:A2018EquityIncentivePlanMember2018-05-160001725579us-gaap:StockCompensationPlanMemberps:A2018EquityIncentivePlanMember2018-05-162018-05-160001725579us-gaap:StockCompensationPlanMemberps:A2018EquityIncentivePlanMember2020-09-300001725579us-gaap:IPOMember2018-05-160001725579srt:MinimumMemberus-gaap:EmployeeStockOptionMemberps:GitPrimeInc.Member2020-01-012020-09-300001725579us-gaap:EmployeeStockOptionMembersrt:MaximumMemberps:GitPrimeInc.Member2020-01-012020-09-300001725579us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001725579us-gaap:ShareBasedCompensationAwardTrancheOneMemberus-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001725579us-gaap:RestrictedStockUnitsRSUMembersrt:ParentCompanyMember2019-12-310001725579us-gaap:RestrictedStockUnitsRSUMembersrt:ParentCompanyMember2020-01-012020-09-300001725579us-gaap:RestrictedStockUnitsRSUMembersrt:ParentCompanyMember2020-09-300001725579srt:SubsidiariesMemberus-gaap:RestrictedStockUnitsRSUMember2019-12-310001725579srt:SubsidiariesMemberus-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001725579srt:SubsidiariesMemberus-gaap:RestrictedStockUnitsRSUMember2020-09-300001725579us-gaap:RestrictedStockUnitsRSUMember2020-09-3000017255792020-05-012020-05-310001725579us-gaap:EmployeeStockMember2018-05-310001725579us-gaap:EmployeeStockMember2018-05-012018-05-310001725579us-gaap:EmployeeStockMember2020-09-300001725579us-gaap:EmployeeStockMember2020-01-012020-09-30ps:period0001725579us-gaap:EmployeeStockMember2019-12-310001725579ps:LLCIncentiveUnitsMember2019-12-310001725579ps:LLCIncentiveUnitsMember2020-01-012020-09-300001725579ps:LLCIncentiveUnitsMember2020-09-300001725579us-gaap:CostOfSalesMember2020-07-012020-09-300001725579us-gaap:CostOfSalesMember2019-07-012019-09-300001725579us-gaap:CostOfSalesMember2020-01-012020-09-300001725579us-gaap:CostOfSalesMember2019-01-012019-09-300001725579us-gaap:SellingAndMarketingExpenseMember2020-07-012020-09-300001725579us-gaap:SellingAndMarketingExpenseMember2019-07-012019-09-300001725579us-gaap:SellingAndMarketingExpenseMember2020-01-012020-09-300001725579us-gaap:SellingAndMarketingExpenseMember2019-01-012019-09-300001725579ps:TechnologyAndContentMember2020-07-012020-09-300001725579ps:TechnologyAndContentMember2019-07-012019-09-300001725579ps:TechnologyAndContentMember2020-01-012020-09-300001725579ps:TechnologyAndContentMember2019-01-012019-09-300001725579us-gaap:GeneralAndAdministrativeExpenseMember2020-07-012020-09-300001725579us-gaap:GeneralAndAdministrativeExpenseMember2019-07-012019-09-300001725579us-gaap:GeneralAndAdministrativeExpenseMember2020-01-012020-09-300001725579us-gaap:GeneralAndAdministrativeExpenseMember2019-01-012019-09-300001725579ps:ExchangeOfCommonSharesMember2020-01-012020-09-300001725579us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001725579us-gaap:RestrictedStockUnitsRSUMembersrt:ParentCompanyMember2020-01-012020-09-300001725579us-gaap:RestrictedStockUnitsRSUMemberps:PluralsightHoldingsMember2020-01-012020-09-300001725579us-gaap:EmployeeStockMember2020-01-012020-09-300001725579srt:ChiefExecutiveOfficerMember2020-09-300001725579srt:ChiefExecutiveOfficerMember2019-12-310001725579srt:ChiefExecutiveOfficerMember2020-01-012020-09-300001725579srt:ChiefExecutiveOfficerMember2019-01-012019-09-300001725579us-gaap:SubsequentEventMember2020-10-092020-10-09
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 
(Mark One)

    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

Or

    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-38498
PLURALSIGHT, INC.
(Exact name of registrant as specified in its charter)
 
Delaware82-3605465
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification Number)

42 Future Way
Draper, Utah 84020
(Address of principal executive offices, including zip code)

(801) 784-9007
(Registrant’s telephone number, including area code)
 
 

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common Stock, $0.0001 par value per sharePSNasdaq Global Select Market
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer   Accelerated filer  
Non-accelerated filer   Smaller reporting company  
   Emerging growth company  
 
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.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of October 30, 2020, the registrant had 145,694,625 shares of common stock outstanding, consisting of 119,624,728 shares of Class A common stock, 12,669,110 shares of Class B common stock, and 13,400,787 shares of Class C common stock.



PLURALSIGHT, INC.
TABLE OF CONTENTS
 
 Page
PART I. FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II. OTHER INFORMATION
Item 1.
Item 1A.
Item 6.





SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
As used in this Quarterly Report on Form 10-Q, unless expressly indicated or the context otherwise requires, references to “Pluralsight,” “we,” “us,” “our,” “the Company,” and similar references refer to Pluralsight, Inc. and its consolidated subsidiaries, including Pluralsight Holdings, LLC, or Pluralsight Holdings.
This Quarterly Report on Form 10-Q, including the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and the Securities Exchange Act of 1934, as amended, or the Exchange Act. These forward-looking statements, which are subject to a number of risks, uncertainties, and assumptions, generally relate to future events or our future financial or operating performance. In some cases, you can identify these statements by forward-looking words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “design,” “intend,” “expect,” “could,” “plan,” “potential,” “predict,” “seek,” “should,” “would,” “target,” “project,” “contemplate,” or the negative version of these words and other comparable terminology that concern our expectations, strategy, plans, intentions, or projections. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about: 
our ability to attract new customers and retain and expand our relationships with existing customers;
our ability to expand our course library and develop new platform features;
our future financial performance, including trends in billings, revenue, costs of revenue, gross margin, operating expenses, cash provided by (used in) operating activities, and free cash flow;
the demand for, and market acceptance of, our platform or for cloud-based technology learning solutions in general;
our ability to compete successfully in competitive markets;
our ability to respond to rapid technological changes;
our expectations of the impact the novel coronavirus strain named SARS-CoV-2, abbreviated as COVID-19, pandemic may have on our business;
our ability to maintain operations and implement effective measures in response to the COVID-19 pandemic;
our expectations and management of future growth;
our ability to enter new markets and manage our expansion efforts, particularly internationally;
our ability to attract and retain key employees and qualified technical and sales personnel;
our ability to effectively and efficiently protect our brand;
our ability to timely scale and adapt our infrastructure;
our ability to maintain, protect, and enhance our intellectual property and not infringe upon others’ intellectual property;
our ability to successfully identify, acquire, and integrate companies and assets;
our ability to successfully defend ourselves in legal proceedings;
the amount and timing of any payments we make under the fourth amended and restated limited liability company agreement of Pluralsight Holdings, or the Fourth LLC Agreement, and our Tax Receivable Agreement, or TRA, with the members of Pluralsight Holdings; and
our ability to satisfy our obligations under the convertible senior notes, or the Notes.
These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described in the section titled “Risk Factors” in our Annual Report on Form 10-K/A as filed with the Securities and Exchange Commission, or the SEC, under the Exchange Act. Moreover, we operate in a very competitive and rapidly changing environment, and new risks emerge from time to time. Such risks and uncertainties include the impact of the spread of COVID-19. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the forward-looking events and circumstances discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements and you should not place undue reliance on our forward-looking statements.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report
1



on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law.
You should read this Quarterly Report on Form 10-Q in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2019 included in our Annual Report on Form 10-K/A.

2


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
PLURALSIGHT, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share and per share amounts)
(unaudited)
September 30, 2020December 31, 2019
Assets
Current assets:
Cash and cash equivalents$100,882 $90,515 
Short-term investments304,077 332,234 
Accounts receivable, net of allowances of $5,037 and $3,465 as of September 30, 2020 and December 31, 2019, respectively
76,492 101,576 
Deferred contract acquisition costs19,469 18,331 
Prepaid expenses and other current assets18,847 14,174 
Total current assets519,767 556,830 
Restricted cash and cash equivalents17,337 28,916 
Long-term investments114,623 105,805 
Property and equipment, net65,058 22,896 
Right-of-use assets61,719 15,804 
Content library, net11,880 8,958 
Intangible assets, net18,416 22,631 
Goodwill262,532 262,532 
Deferred contract acquisition costs, noncurrent8,317 5,982 
Other assets1,940 1,599 
Total assets$1,081,589 $1,031,953 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$7,041 $10,615 
Accrued expenses47,090 40,703 
Accrued author fees11,988 11,694 
Lease liabilities9,184 5,752 
Deferred revenue207,823 215,137 
Total current liabilities283,126 283,901 
Deferred revenue, noncurrent21,138 19,517 
Convertible senior notes, net490,355 470,228 
Lease liabilities, noncurrent75,393 11,167 
Other liabilities69 980 
Total liabilities870,081 785,793 
Commitments and contingencies (Note 12)
Stockholders’ equity:
Preferred stock, $0.0001 par value per share, 100,000,000 shares authorized, no shares issued and outstanding as of September 30, 2020 and December 31, 2019
  
Class A common stock, $0.0001 par value per share, 1,000,000,000 shares authorized, 119,381,936 and 104,083,271 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
12 10 
Class B common stock, $0.0001 par value per share, 200,000,000 shares authorized, 12,813,383 and 23,211,418 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
1 2 
Class C common stock, $0.0001 par value per share, 50,000,000 shares authorized, 13,296,350 and 14,269,199 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
1 1 
Additional paid-in capital724,184 641,128 
Accumulated other comprehensive income1,166 225 
Accumulated deficit(550,990)(458,381)
Total stockholders’ equity attributable to Pluralsight, Inc.174,374 182,985 
Non-controlling interests37,134 63,175 
Total stockholders’ equity211,508 246,160 
Total liabilities and stockholders’ equity$1,081,589 $1,031,953 
The accompanying notes are an integral part of these condensed consolidated financial statements.
3





PLURALSIGHT, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
 Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
Revenue$99,465 $82,620 $286,876 $228,099 
Cost of revenue20,426 17,829 59,151 52,344 
Gross profit79,039 64,791 227,725 175,755 
Operating expenses:
Sales and marketing57,206 55,797 177,380 150,014 
Technology and content29,345 27,847 89,003 72,937 
General and administrative20,366 20,844 66,733 63,610 
Total operating expenses106,917 104,488 333,116 286,561 
Loss from operations(27,878)(39,697)(105,391)(110,806)
Other income (expense):
Interest expense(7,409)(7,412)(21,799)(16,436)
Loss on debt extinguishment (950) (950)
Other income, net1,992 3,001 6,429 8,783 
Loss before income taxes(33,295)(45,058)(120,761)(119,409)
Income tax expense(476)(404)(253)(701)
Net loss$(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 share115,196 101,407 109,009 91,741 
The accompanying notes are an integral part of these condensed consolidated financial statements.
4





PLURALSIGHT, INC.
Condensed Consolidated Statements of Comprehensive Loss
(in thousands)
(unaudited)
 Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
Net loss$(33,771)$(45,462)$(121,014)$(120,110)
Other comprehensive income (loss):
Unrealized (losses) gains on investments(193)19 1,196 398 
Foreign currency translation gains (losses), net
181 (90)32 (79)
Comprehensive loss$(33,783)$(45,533)$(119,786)$(119,791)
Less: Comprehensive loss attributable to non-controlling interests
(6,434)(13,002)(28,118)(39,336)
Comprehensive loss attributable to Pluralsight, Inc.$(27,349)$(32,531)$(91,668)$(80,455)
The accompanying notes are an integral part of these condensed consolidated financial statements.
5





PLURALSIGHT, INC.
Condensed Consolidated Statements of Stockholders’ Equity
(in thousands, except share amounts)
(unaudited)
Three Months Ended September 30, 2020
Class A Common StockClass B Common StockClass C Common StockAdditional
Paid-In
Capital
Accumulated Other Comprehensive
Income
Accumulated
Deficit
Non-Controlling Interests
Total Stockholders Equity
SharesAmountSharesAmountSharesAmount
Balance at June 30, 2020111,875,235 $11 19,366,038 $2 13,191,913 $1 $693,768 $1,154 $(523,629)$48,371 $219,678 
Effect of exchanges of LLC Units6,552,655 1 (6,552,655)(1)— — 10,033 — — (10,033) 
Vesting of restricted stock units689,334 — — — 104,437 — — — — —  
Exercise of common stock options264,712 — — — — — 3,863 — — — 3,863 
Shares withheld for tax withholding on equity awards— — — — — — (1,732)— — — (1,732)
Equity-based compensation— — — — — — 23,482 — — — 23,482 
Adjustments to non-controlling interests— — — — — — (5,230)— — 5,230  
Other comprehensive income (loss)— — — — — — — 12 — (24)(12)
Net loss— — — — — — — — (27,361)(6,410)(33,771)
Balance at September 30, 2020119,381,936 $12 12,813,383 $1 13,296,350 $1 $724,184 $1,166 $(550,990)$37,134 $211,508 
The accompanying notes are an integral part of these condensed consolidated financial statements.

6





PLURALSIGHT, INC.
Condensed Consolidated Statements of Stockholders’ Equity (Continued)
(in thousands, except share amounts)
(unaudited)
Three Months Ended September 30, 2019
Class A Common StockClass B Common StockClass C Common StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive Income
Accumulated
Deficit
Non-Controlling Interests
Total Stockholders Equity
SharesAmountSharesAmountSharesAmount
Balance at June 30, 2019101,096,472 $10 24,664,113 $2 14,186,856 $1 $599,464 $237 $(393,925)$74,356 $280,145 
Effect of exchanges of LLC Units116,709 — (116,709)— — — 238 — — (238) 
Vesting of restricted stock units399,052 — — — 102,906 — — — — —  
Exercise of common stock options25,946 — — — — — 245 — — — 245 
Forfeiture of unvested LLC Units— — (104,452)— — — — — — —  
Repurchases of equity component of convertible senior notes— — — — — — (2,965)— — — (2,965)
Settlement of capped calls related to repurchases of convertible senior notes— — — — — — 1,284 — — — 1,284 
Equity-based compensation— — — — — — 25,009 — — — 25,009 
Adjustments to non-controlling interests— — — — — — (7,656)— — 7,656  
Other comprehensive income (loss)— — — — — — — (52)— (19)(71)
Net loss— — — — — — — — (32,479)(12,983)(45,462)
Balance at September 30, 2019101,638,179 $10 24,442,952 $2 14,289,762 $1 $615,619 $185 $(426,404)$68,772 $258,185 
The accompanying notes are an integral part of these condensed consolidated financial statements.


7





PLURALSIGHT, INC.
Condensed Consolidated Statements of Stockholders’ Equity (Continued)
(in thousands, except share amounts)
(unaudited)
Nine Months Ended September 30, 2020
Class A Common StockClass B Common StockClass C Common StockAdditional
Paid-In
Capital
Accumulated Other Comprehensive
Income
Accumulated
Deficit
Non-Controlling Interests
Total Stockholders Equity
SharesAmountSharesAmountSharesAmount
Balance at December 31, 2019104,083,271 $10 23,211,418 $2 14,269,199 $1 $641,128 $225 $(458,381)$63,175 $246,160 
Effect of exchanges of LLC Units11,683,854 1 (10,398,035)(1)(1,285,819)— 18,086 — — (18,086) 
Issuance of common stock under employee stock purchase plan629,927 — — — — — 8,348 — — — 8,348 
Vesting of restricted stock units2,526,331 1 — — 312,970 — (1)— — —  
Exercise of common stock options458,553 — — — — — 6,393 — — — 6,393 
Shares withheld for tax withholding on equity awards— — — — — — (5,605)— — — (5,605)
Equity-based compensation— — — — — — 75,998 — — — 75,998 
Adjustments to non-controlling interests— — — — — — (20,163)— — 20,163  
Other comprehensive income— — — — — — — 941 — 287 1,228 
Net loss— — — — — — — — (92,609)(28,405)(121,014)
Balance at September 30, 2020119,381,936 $12 12,813,383 $1 13,296,350 $1 $724,184 $1,166 $(550,990)$37,134 $211,508 
The accompanying notes are an integral part of these condensed consolidated financial statements.


8





PLURALSIGHT, INC.
Condensed Consolidated Statements of Stockholders’ Equity (Continued)
(in thousands, except share amounts)
(unaudited)

Nine Months Ended September 30, 2019
Class A Common StockClass B Common StockClass C Common StockAdditional
Paid-In
Capital
Accumulated
Other
Comprehensive Income (Loss)
Accumulated
Deficit
Non-Controlling Interests
Total Stockholders Equity
SharesAmountSharesAmountSharesAmount
Balance at December 31, 201865,191,907 $7 57,490,881 $6 14,586,173 $1 $456,899 $(41)$(355,446)$107,167 $208,593 
Cumulative effect of accounting changes— — — — — — — — 9,723 10,273 19,996 
Effect of exchanges of LLC Units33,536,262 3 (32,926,084)(4)(610,178)— 59,158 — — (59,157) 
Issuance of common stock under employee stock purchase plan621,463 — — — — — 8,257 — — — 8,257 
Vesting of restricted stock units1,835,633 — — — 313,767 — — — — —  
Exercise of common stock options452,914 — — — — — 6,619 — — — 6,619 
Forfeiture of unvested LLC Units— — (121,845)— — — — — — —  
Equity component of convertible senior notes, net of issuance costs— — — — — — 137,033 — — — 137,033 
Purchase of capped calls related to issuance of convertible senior notes— — — — — — (69,432)— — — (69,432)
Repurchases of equity component of convertible senior notes— — — — — — (2,965)— — — (2,965)
Settlement of capped calls related to repurchases of convertible senior notes— — — — — — 1,284 — — — 1,284 
Equity-based compensation— — — — — — 68,591 — — — 68,591 
Adjustments to non-controlling interests— — — — — — (49,825)— — 49,825  
Other comprehensive income— — — — — — — 226 — 93 319 
Net loss— — — — — — — — (80,681)(39,429)(120,110)
Balance at September 30, 2019101,638,179 $10 24,442,952 $2 14,289,762 $1 $615,619 $185 $(426,404)$68,772 $258,185 
The accompanying notes are an integral part of these condensed consolidated financial statements.

9





PLURALSIGHT, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended September 30,
20202019
Operating activities
Net loss$(121,014)$(120,110)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation of property and equipment8,866 6,996 
Amortization of acquired intangible assets4,235 3,044 
Amortization of course creation costs2,464 1,841 
Equity-based compensation76,217 67,657 
Amortization of deferred contract acquisition costs19,018 17,317 
Amortization of debt discount and issuance costs20,128 15,120 
Investment discount and premium amortization, net68 (1,771)
Loss on debt extinguishment 950 
Other589 (178)
Changes in assets and liabilities, net of acquired assets and liabilities:
Accounts receivable23,512 1,858 
Deferred contract acquisition costs(22,491)(18,668)
Prepaid expenses and other assets(4,237)(3,509)
Right-of-use assets4,487 4,339 
Accounts payable(3,126)(2,520)
Accrued expenses and other liabilities6,880 5,188 
Accrued author fees293 1,292 
Lease liabilities(3,604)(5,130)
Deferred revenue(5,592)22,461 
Net cash provided by (used in) operating activities6,693 (3,823)
Investing activities
Purchases of property and equipment(31,226)(7,619)
Purchases of content library(5,596)(3,822)
Cash paid for acquisition, net of cash acquired (163,771)
Purchases of investments(427,130)(529,653)
Proceeds from sales of investments 4,967 
Proceeds from maturities of investments446,830 112,995 
Net cash used in investing activities(17,122)(586,903)
Financing activities
Proceeds from issuance of common stock from employee equity plans14,741 14,876 
Taxes paid related to net share settlement(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)
Proceeds from terminations of capped calls related to repurchases of convertible senior notes 1,284 
Net cash provided by financing activities9,136 528,382 
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents81 (108)
Net decrease in cash, cash equivalents, and restricted cash and cash equivalents(1,212)(62,452)
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period119,431 211,071 
Cash, cash equivalents, and restricted cash and cash equivalents, end of period$118,219 $148,619 
The accompanying notes are an integral part of these condensed consolidated financial statements.
10





PLURALSIGHT, INC.
Condensed Consolidated Statements of Cash Flows (Continued)
(in thousands)
(unaudited)
Nine Months Ended September 30,
20202019
Supplemental cash flow disclosure:
Cash paid for interest$2,226 $1,126 
Cash paid for income taxes, net$1,191 $539 
Supplemental disclosure of non-cash investing and financing activities:
Lease liabilities arising from obtaining right-of-use assets and tenant improvements$70,313 $3,147 
Unpaid capital expenditures$2,671 $752 
Equity-based compensation capitalized as internal-use software$963 $934 
Unrealized gains on investments$1,196 $