Pluralsight (PS) 4q18

Pluralsight just announced 4q18 earnings.

Here was my write up from a few weeks back, with a link in the thread to a write up from Matt a few months back.…

Revenue (% change)

2017 19 18 36 38
2018 34 38 42 42

net expansion rate
2016 109
2017 117
2018 120 125 127 128

  • revenue growth expanding from 38% last yr to 42%
  • net expansion rate accelerating
  • during the conference call, they said they see the net expansion rate ticking up next year to the low 130’s

Here is what was said about the net expansion rate during the call (from Seeking Alpha)

"James Budge

Yeah. Thanks, Brad. This is James. I’ll take that again. I think, again, as a reminder, we’ve gone from the 117% at the end of 2017 to 128% at the end of 2018. So, we not like the 128% in absolute terms, but we like the trend. And if I take you back even another year – I know you know this – we were 109% at the end of 2016. So, the trend has been fantastic. We’ve got teams that are focused on it. We have a better platform today than we had a year ago or two years ago to keep people engaged and wanting to come back for more.

When you do unpack that a little bit, I’ll just remind that the net revenue retention, the net billings retention number we have is higher. So, in Aaron’s comments, prepared remarks, he did mention that we see that continuing to go higher, probably not a ton more, but we do expect that to get into the 130 over the next year or so. So, a lot of good growth."

4Q18 numbers

rev. 67.3 (+42%)
billings 100.6 (+42%)

g. m. 77% (vs 75%)
eps -.09 (-.53)
cffo $8.4 M (-$1.3M)
FCF $5.2 M (-$3.4M)

customers > $100 K annual billings 275 (+76%)
def. revenue up 55%

*They are now in 70% of the fortune 500, up from 65% last quarter.
*Still only have 5% penetration within those companies.

*Added amazon aws as a partner, now partners with amazon, google, microsoft, oracle for IT training

  • NPS score of 63

With Amazon now being a partner, and 70% of the fortune 500 using them, I see them as becoming the standard for IT training, and with the constant quick pace of IT, the need should only grow.

Jim (long PS)