Pluralsight, Inc. #IPO Preview ($PS)

Company: Pluralsight, Inc.
Symbol: PS
Description: Pluralsight is an enterprise software company committed to closing the global technology skills gap.
Trade Date: 5/17
Shares: 20.7 million
Price Range: $10.00-$12.00
Underwriter(s): Morgan Stanley, J.P. Morgan, Barclays, BofA Merrill Lynch
Co-Manager(s): First Analysis Securities, Needham & Co., Raymond James, SunTrust Robinson Humphrey
Terms Added: 5-7-18

Business: Pluralsight is an enterprise software company committed to closing the global technology skills gap. This gap is holding back companies and entire industries from reaching their full potential.

The skills gap exists because technology is changing faster than the world’s ability to acquire and adapt to new skills. To address this challenge, many companies still use traditional in-person, instructor-led training, or ILT, models, which don’t move fast enough or scale quickly enough to meet the ever-increasing demand.

They disrupt these in-person ILT models by offering a cloud-based technology learning platform that is broadly accessible. Learners on their platform can quickly acquire today’s most valuable technology skills through high-quality learning experiences delivered by subject-matter experts, available on any device at any time. They provide businesses with visibility into the strengths of their workforce, allowing them to better align resources, provide targeted skill development, and advance the skills of their teams.

Financials: They have achieved significant growth in recent periods. For the years ended December 31, 2016 and 2017, their billings were $149.2 million and $205.8 million, respectively, representing year-over-year growth of 38%, and their billings from business customers were $104.9 million and $163.0 million, respectively, representing year-over-year growth of 55%. For the three months ended March 31, 2017 and 2018, their billings were $38.9 million and $55.4 million, respectively, representing period-over-period growth of 43%, and their billings from business customers were $29.3 million and $45.3 million, respectively, representing period-over-period growth of 54%. For the years ended December 31, 2016 and 2017, and the three months ended March 31, 2017 and 2018, their revenue was $131.8 million, $166.8 million, $37.2 million, and $49.6 million, respectively. Their net loss was $20.6 million, $96.5 million, $9.8 million, and $23.2 million, respectively, which reflects their substantial investments in the future growth of their business.

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Pluralsight, Inc. #IPO Preview ($PS)