(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) | |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
☒ | Accelerated filer | ☐ | ||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||
Emerging growth company | ||||||||
Page | ||
PART I. FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 6. | ||
• | 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. |
June 30, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Short-term investments | ||||||||
Accounts receivable, net of allowances of $5,370 and $3,465 as of June 30, 2020 and December 31, 2019, respectively | ||||||||
Deferred contract acquisition costs | ||||||||
Prepaid expenses and other current assets | ||||||||
Total current assets | ||||||||
Restricted cash and cash equivalents | ||||||||
Long-term investments | ||||||||
Property and equipment, net | ||||||||
Right-of-use assets | ||||||||
Content library, net | ||||||||
Intangible assets, net | ||||||||
Goodwill | ||||||||
Deferred contract acquisition costs, noncurrent | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | $ | ||||||
Accrued expenses | ||||||||
Accrued author fees | ||||||||
Lease liabilities | ||||||||
Deferred revenue | ||||||||
Total current liabilities | ||||||||
Deferred revenue, noncurrent | ||||||||
Convertible senior notes, net | ||||||||
Lease liabilities, noncurrent | ||||||||
Other liabilities | ||||||||
Total liabilities | ||||||||
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 June 30, 2020 and December 31, 2019 | ||||||||
Class A common stock, $0.0001 par value per share, 1,000,000,000 shares authorized, 111,875,235 and 104,083,271 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | ||||||||
Class B common stock, $0.0001 par value per share, 200,000,000 shares authorized, 19,366,038 and 23,211,418 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | ||||||||
Class C common stock, $0.0001 par value per share, 50,000,000 shares authorized, 13,191,913 and 14,269,199 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively | ||||||||
Additional paid-in capital | ||||||||
Accumulated other comprehensive income | ||||||||
Accumulated deficit | ( | ) | ( | ) | ||||
Total stockholders’ equity attributable to Pluralsight, Inc. | ||||||||
Non-controlling interests | ||||||||
Total stockholders’ equity | ||||||||
Total liabilities and stockholders’ equity | $ | $ | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue | $ | $ | $ | $ | ||||||||||||
Cost of revenue | ||||||||||||||||
Gross profit | ||||||||||||||||
Operating expenses: | ||||||||||||||||
Sales and marketing | ||||||||||||||||
Technology and content | ||||||||||||||||
General and administrative | ||||||||||||||||
Total operating expenses | ||||||||||||||||
Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other income, net | ||||||||||||||||
Loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income tax benefit (expense) | ( | ) | ( | ) | ||||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Less: Net loss attributable to non-controlling interests | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net loss attributable to Pluralsight, Inc. | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Net loss per share, basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Weighted-average shares of Class A common stock used in computing basic and diluted net loss per share | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gains on investments | ||||||||||||||||
Foreign currency translation gains (losses), net | ( | ) | ( | ) | ||||||||||||
Comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Less: Comprehensive loss attributable to non-controlling interests | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Comprehensive loss attributable to Pluralsight, Inc. | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Class A Common Stock | Class B Common Stock | Class C Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-Controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||
Effect of exchanges of LLC Units | — | ( | ) | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted stock units | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Shares withheld for tax withholding on equity awards | — | — | — | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Adjustments to non-controlling interests | — | — | — | — | — | — | ( | ) | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Class C Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-Controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||
Effect of exchanges of LLC Units | — | ( | ) | ( | ) | ( | ) | — | — | — | ( | ) | |||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted stock units | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Forfeiture of unvested LLC Units | — | — | ( | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Adjustments to non-controlling interests | — | — | — | — | — | — | ( | ) | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Class C Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-Controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||||
Effect of exchanges of LLC Units | — | ( | ) | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted stock units | — | — | — | ( | ) | — | — | — | |||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Shares withheld for tax withholding on equity awards | — | — | — | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Adjustments to non-controlling interests | — | — | — | — | — | — | ( | ) | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at June 30, 2020 | $ | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Class C Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Non-Controlling Interests | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||
Cumulative effect of accounting changes | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Effect of exchanges of LLC Units | ( | ) | ( | ) | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||||||||||||
Issuance of common stock under employee stock purchase plan | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Vesting of restricted stock units | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Exercise of common stock options | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Forfeiture of unvested LLC Units | — | — | ( | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||
Equity component of convertible senior notes, net of issuance costs | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Purchase of capped calls related to issuance of convertible senior notes | — | — | — | — | — | — | ( | ) | — | — | — | ( | ) | ||||||||||||||||||||||||||||
Equity-based compensation | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Adjustments to non-controlling interests | — | — | — | — | — | — | ( | ) | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | $ | $ | $ | ( | ) | $ | $ | |||||||||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Operating activities | ||||||||
Net loss | $ | ( | ) | $ | ( | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation of property and equipment | ||||||||
Amortization of acquired intangible assets | ||||||||
Amortization of course creation costs | ||||||||
Equity-based compensation | ||||||||
Amortization of deferred contract acquisition costs | ||||||||
Amortization of debt discount and issuance costs | ||||||||
Investment discount and premium amortization, net | ( | ) | ( | ) | ||||
Other | ||||||||
Changes in assets and liabilities, net of acquired assets and liabilities: | ||||||||
Accounts receivable | ||||||||
Deferred contract acquisition costs | ( | ) | ( | ) | ||||
Prepaid expenses and other assets | ( | ) | ( | ) | ||||
Right-of-use assets | ||||||||
Accounts payable | ( | ) | ||||||
Accrued expenses and other liabilities | ( | ) | ( | ) | ||||
Accrued author fees | ||||||||
Lease liabilities | ( | ) | ( | ) | ||||
Deferred revenue | ( | ) | ||||||
Net cash provided by (used in) operating activities | ( | ) | ||||||
Investing activities | ||||||||
Purchases of property and equipment | ( | ) | ( | ) | ||||
Purchases of content library | ( | ) | ( | ) | ||||
Cash paid for acquisition, net of cash acquired | ( | ) | ||||||
Purchases of investments | ( | ) | ( | ) | ||||
Proceeds from sales of investments | ||||||||
Proceeds from maturities of investments | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Financing activities | ||||||||
Proceeds from issuance of common stock from employee equity plans | ||||||||
Taxes paid related to net share settlement | ( | ) | ||||||
Proceeds from issuance of convertible senior notes, net of discount and issuance costs | ||||||||
Purchase of capped calls related to issuance of convertible senior notes | ( | ) | ||||||
Net cash provided by financing activities | ||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | ( | ) | ||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents | ( | ) | ||||||
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period | ||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, end of period | $ | $ | ||||||
Supplemental cash flow disclosure: | ||||||||
Cash paid for interest | $ | $ | ||||||
Cash paid for income taxes, net | $ | $ | ||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Lease liabilities arising from obtaining right-of-use assets and tenant improvements | $ | $ | ||||||
Unpaid capital expenditures | $ | $ | ||||||
Equity-based compensation capitalized as internal-use software | $ | $ | ||||||
Unrealized gains on investments | $ | $ | ||||||
Reconciliation of cash, cash equivalents, and restricted cash and cash equivalents as shown in the statement of cash flows: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted cash and cash equivalents | ||||||||
Total cash, cash equivalents, and restricted cash and cash equivalents | $ | $ | ||||||
Three Months Ended June 30, | Growth | ||||||||||||||||
2020 | 2019 | Rate | |||||||||||||||
Amount | % | Amount | % | % | |||||||||||||
United States | $ | % | $ | % | % | ||||||||||||
Europe, Middle East and Africa(1) | % | % | % | ||||||||||||||
Other foreign locations | % | % | % | ||||||||||||||
Total revenue | $ | % | $ | % | |||||||||||||
Six Months Ended June 30, | Growth | ||||||||||||||||
2020 | 2019 | Rate | |||||||||||||||
Amount | % | Amount | % | % | |||||||||||||
United States | $ | % | $ | % | % | ||||||||||||
Europe, Middle East and Africa(1) | % | % | % | ||||||||||||||
Other foreign locations | % | % | % | ||||||||||||||
Total revenue | $ | % | $ | % | |||||||||||||
(1) | Revenue from the United Kingdom represented |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Business customers | $ | $ | $ | $ | ||||||||||||
Individual customers | ||||||||||||||||
Total revenue | $ | $ | $ | $ | ||||||||||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Beginning balance | $ | $ | ||||||
Capitalization of contract acquisition costs | ||||||||
Amortization of deferred contract acquisition costs | ( | ) | ( | ) | ||||
Ending balance | $ | $ | ||||||
June 30, 2020 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||||
Commercial paper | $ | $ | $ | $ | ||||||||||||
U.S. treasury securities | ( | ) | ||||||||||||||
Corporate notes and obligations | ( | ) | ||||||||||||||
Foreign government obligations | ( | ) | ||||||||||||||
Total short-term investments | $ | $ | $ | ( | ) | $ | ||||||||||
Restricted cash equivalents | ||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||
Long-term investments | ||||||||||||||||
Corporate notes and obligations | $ | $ | $ | ( | ) | $ | ||||||||||
Certificates of deposit | ||||||||||||||||
Total long-term investments | $ | $ | $ | ( | ) | $ | ||||||||||
Total cash equivalents, restricted cash equivalents, and investments | $ | $ | $ | ( | ) | $ | ||||||||||
December 31, 2019 | ||||||||||||||||
Amortized Cost | Unrealized Gains | Unrealized Losses | Fair Value | |||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||
Commercial paper | ||||||||||||||||
Total cash equivalents | $ | $ | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||||
Commercial paper | $ | $ | $ | $ | ||||||||||||
U.S. treasury securities | ||||||||||||||||
Corporate notes and obligations | ( | ) | ||||||||||||||
Total short-term investments | $ | $ | $ | ( | ) | $ | ||||||||||
Restricted cash equivalents | ||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||
Long-term investments | ||||||||||||||||
Corporate notes and obligations | $ | $ | $ | ( | ) | $ | ||||||||||
U.S. agency obligations | ( | ) | ||||||||||||||
Certificates of deposit | ||||||||||||||||
Total long-term investments | $ | $ | $ | ( | ) | $ | ||||||||||
Total cash equivalents, restricted cash equivalents, and investments | $ | $ | $ | ( | ) | $ | ||||||||||
Amortized Cost | Fair Value | |||||||
Due within one year | $ | $ | ||||||
Due between one and two years | ||||||||
Total investments | $ | $ | ||||||
June 30, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||||
Commercial paper | $ | $ | $ | $ | ||||||||||||
U.S. treasury securities | ||||||||||||||||
Corporate notes and obligations | ||||||||||||||||
Foreign government obligations | ||||||||||||||||
Total short-term investments | $ | $ | $ | $ | ||||||||||||
Restricted cash equivalents | ||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||
Long-term investments | ||||||||||||||||
Corporate notes and obligations | $ | $ | $ | $ | ||||||||||||
Certificates of deposit | ||||||||||||||||
Total long-term investments | $ | $ | $ | $ | ||||||||||||
December 31, 2019 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Cash equivalents | ||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||
Commercial paper | ||||||||||||||||
Total cash equivalents | $ | $ | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||||
Commercial paper | $ | $ | $ | $ | ||||||||||||
U.S. treasury securities | ||||||||||||||||
Corporate notes and obligations | ||||||||||||||||
Total short-term investments | $ | $ | $ | $ | ||||||||||||
Restricted cash equivalents | ||||||||||||||||
Money market funds | $ | $ | $ | $ | ||||||||||||
Long-term investments | ||||||||||||||||
Corporate notes and obligations | $ | $ | $ | $ | ||||||||||||
U.S. agency obligations | ||||||||||||||||
Certificates of deposit | ||||||||||||||||
Total long-term investments | $ | $ | $ | $ | ||||||||||||
June 30, 2020 | December 31, 2019 | |||||||
Prepaid expenses | $ | $ | ||||||
Other current assets | ||||||||
Prepaid expenses and other current assets | $ | $ | ||||||
June 30, 2020 | December 31, 2019 | |||||||
Accrued compensation | $ | $ | ||||||
Accrued income and other taxes payable | ||||||||
Accrued other current liabilities | ||||||||
Accrued expenses | $ | $ | ||||||
June 30, 2020 | December 31, 2019 | |||||||
Computer equipment | $ | $ | ||||||
Software | ||||||||
Capitalized internal-use software costs | ||||||||
Furniture and fixtures | ||||||||
Leasehold improvements | ||||||||
Construction in progress | ||||||||
Total property and equipment | ||||||||
Less: Accumulated depreciation | ( | ) | ( | ) | ||||
Property and equipment, net | $ | $ | ||||||
Fair Value | ||||
Cash and cash equivalents | $ | |||
Accounts receivable | ||||
Other assets acquired | ||||
Property and equipment | ||||
Right-of-use assets | ||||
Goodwill | ||||
Intangible assets | ||||
Lease liabilities | ( | ) | ||
Deferred revenue | ( | ) | ||
Other liabilities assumed | ( | ) | ||
Total fair value of net assets acquired | $ | |||
Fair Value of Intangible Assets Acquired (in thousands) | Useful Lives (in years) | |||||
Technology | $ | |||||
Customer relationships | ||||||
Total fair value of intangible assets acquired | $ | |||||
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||
Revenue | $ | $ | ||||||
Net loss | ( | ) | ( | ) | ||||
Net loss per share, basic and diluted | $ | ( | ) | $ | ( | ) | ||
June 30, 2020 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||
Content library: | ||||||||||||
Acquired content library | $ | $ | $ | |||||||||
Course creation costs | ||||||||||||
Total | $ | $ | $ | |||||||||
Intangible assets: | ||||||||||||
Technology | $ | $ | $ | |||||||||
Trademarks | ||||||||||||
Noncompetition agreements | ||||||||||||
Customer relationships | ||||||||||||
Domain names | — | |||||||||||
Total | $ | $ | $ | |||||||||
December 31, 2019 | ||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||
Content library: | ||||||||||||
Acquired content library | $ | $ | $ | |||||||||
Course creation costs | ||||||||||||
Total | $ | $ | $ | |||||||||
Intangible assets: | ||||||||||||
Technology | $ | $ | $ | |||||||||
Trademarks | ||||||||||||
Noncompetition agreements | ||||||||||||
Customer relationships | ||||||||||||
Database | ||||||||||||
Domain names | — | |||||||||||
Total | $ | $ | $ | |||||||||
Year Ending December 31, | Amortization | |||
2020 (remaining six months) | ||||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
2025 | ||||
Total | $ | |||
• | During any calendar quarter commencing after the calendar quarter ended on June 30, 2019 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least |
• | During the |
• | Upon the occurrence of specified corporate events described in the Indenture. These events include a change in control transaction, or a recapitalization, liquidation, or delisiting of the Company’s Class A common stock. |
June 30, 2020 | ||||
Principal | $ | |||
Less: Unamortized debt discount | ( | ) | ||
Less: Unamortized issuance costs | ( | ) | ||
Net carrying amount | $ | |||
June 30, 2020 | ||||
Proceeds allocated to the conversion option (debt discount) | $ | |||
Less: Issuance costs | ( | ) | ||
Less: Reacquisition of conversion option related to the repurchases of convertible senior notes | ( | ) | ||
Net carrying amount | $ | |||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Contractual interest expense | $ | $ | $ | $ | ||||||||||||
Amortization of debt issuance costs and discount | ||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating lease expense | $ | $ | $ | $ | ||||||||||||
Variable lease expense | ||||||||||||||||
Short-term lease expense | ||||||||||||||||
Total lease expense | $ | $ | $ | $ | ||||||||||||
Year Ending December 31, | ||||
2020 (remaining six months) | $ | |||
2021 | ||||
2022 | ||||
2023 | ||||
2024 | ||||
Thereafter | ||||
Total lease payments | ||||
Less: Imputed interest | ( | ) | ||
Lease liabilities | $ | |||
June 30, 2020 | December 31, 2019 | |||||||||||
Units | Ownership % | Units | Ownership % | |||||||||
Pluralsight, Inc.’s ownership of LLC Units | % | % | ||||||||||
LLC Units owned by the Continuing Members(1) | % | % | ||||||||||
% | % | |||||||||||
(1) |
Stock Options Outstanding | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in millions) | ||||||||||
Outstanding as of December 31, 2019 | $ | ||||||||||||
Granted | |||||||||||||
Exercised | ( | ) | |||||||||||
Forfeited or cancelled | ( | ) | |||||||||||
Outstanding as of June 30, 2020 | $ | $ | |||||||||||
Vested and exercisable as of June 30, 2020 | $ | $ | |||||||||||
Number of RSUs or Units | Weighted-Average Grant Date Fair Value | ||||||
RSUs of Pluralsight, Inc.: | |||||||
Balance at December 31, 2019 | $ | ||||||
Granted | |||||||
Forfeited or cancelled | ( | ) | |||||
Vested | ( | ) | |||||
Balance at June 30, 2020 | $ | ||||||
Restricted Share Units of Pluralsight Holdings: | |||||||
Balance at December 31, 2019 | $ | ||||||
Vested | ( | ) | |||||
Balance at June 30, 2020 | $ | ||||||
Unvested Units | Weighted- Average Grant Date Fair Value | ||||||
Unvested LLC Units outstanding—December 31, 2019 | $ | ||||||
Vested | ( | ) | |||||
Unvested LLC Units outstanding—June 30, 2020 | $ | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cost of revenue | $ | $ | $ | $ | ||||||||||||
Sales and marketing | ||||||||||||||||
Technology and content | ||||||||||||||||
General and administrative | ||||||||||||||||
Total equity-based compensation | $ | $ | $ | $ | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Numerator: | ||||||||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Less: Net loss attributable to non-controlling interests | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Net loss attributable to Pluralsight, Inc. | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average shares of Class A common stock outstanding, basic and diluted | ||||||||||||||||
Net loss per share: | ||||||||||||||||
Net loss per share, basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
June 30, 2020 | |||
LLC Units held by Continuing Members | |||
Stock options | |||
RSUs of Pluralsight, Inc. | |||
Restricted Share Units of Pluralsight Holdings | |||
Purchase rights committed under the ESPP | |||
Total | |||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Billings | $ | 89,034 | $ | 80,552 | $ | 179,312 | $ | 158,480 | ||||||||
Billings from business customers | $ | 77,695 | $ | 69,104 | $ | 158,167 | $ | 136,260 | ||||||||
% of billings from business customers | 87 | % | 86 | % | 88 | % | 86 | % | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 94,765 | $ | 75,862 | $ | 187,411 | $ | 145,479 | ||||||||
Cost of revenue(1)(2) | 19,717 | 17,803 | 38,725 | 34,515 | ||||||||||||
Gross profit | 75,048 | 58,059 | 148,686 | 110,964 | ||||||||||||
Operating expenses(1)(2): | ||||||||||||||||
Sales and marketing | 57,759 | 50,046 | 120,174 | 94,217 | ||||||||||||
Technology and content | 29,514 | 24,819 | 59,658 | 45,090 | ||||||||||||
General and administrative | 22,996 | 20,575 | 46,367 | 42,766 | ||||||||||||
Total operating expenses | 110,269 | 95,440 | 226,199 | 182,073 | ||||||||||||
Loss from operations | (35,221 | ) | (37,381 | ) | (77,513 | ) | (71,109 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (7,241 | ) | (7,346 | ) | (14,390 | ) | (9,024 | ) | ||||||||
Other income, net | 2,267 | 4,106 | 4,437 | 5,782 | ||||||||||||
Loss before income taxes | (40,195 | ) | (40,621 | ) | (87,466 | ) | (74,351 | ) | ||||||||
Income tax benefit (expense) | 465 | (143 | ) | 223 | (297 | ) | ||||||||||
Net loss | $ | (39,730 | ) | $ | (40,764 | ) | $ | (87,243 | ) | $ | (74,648 | ) | ||||
(1) | Includes equity-based compensation as follows: |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenue | $ | 296 | $ | 133 | $ | 566 | $ | 217 | ||||||||
Sales and marketing | 10,878 | 7,952 | 20,400 | 14,228 | ||||||||||||
Technology and content | 6,884 | 5,137 | 13,220 | 8,847 | ||||||||||||
General and administrative | 8,367 | 9,510 | 17,817 | 19,708 | ||||||||||||
Total equity-based compensation | $ | 26,425 | $ | 22,732 | $ | 52,003 | $ | 43,000 | ||||||||
(2) | Includes amortization of acquired intangible assets as follows: |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of revenue | $ | 1,209 | $ | 702 | $ | 2,418 | $ | 1,227 | ||||||||
Sales and marketing | 50 | 29 | 100 | 29 | ||||||||||||
Technology and content | 161 | 176 | 337 | 353 | ||||||||||||
Total amortization of acquired intangible assets | $ | 1,420 | $ | 907 | $ | 2,855 | $ | 1,609 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||
Revenue | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Cost of revenue | 21 | 23 | 21 | 24 | ||||||||
Gross profit | 79 | 77 | 79 | 76 | ||||||||
Operating expenses: | ||||||||||||
Sales and marketing | 61 | 66 | 64 | 65 | ||||||||
Technology and content | 31 | 33 | 32 | 31 | ||||||||
General and administrative | 24 | 27 | 25 | 29 | ||||||||
Total operating expenses | 116 | 126 | 121 | 125 | ||||||||
Loss from operations | (37 | ) | (49 | ) | (42 | ) | (49 | ) | ||||
Other income (expense): | ||||||||||||
Interest expense | (8 | ) | (10 | ) | (8 | ) | (6 | ) | ||||
Other income, net | 2 | 5 | 2 | 4 | ||||||||
Loss before income taxes | (43 | ) | (54 | ) | (48 | ) | (51 | ) | ||||
Provision for income taxes | — | — | — | — | ||||||||
Net loss | (43 | )% | (54 | )% | (48 | )% | (51 | )% | ||||
Three Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Revenue | $ | 94,765 | $ | 75,862 | $ | 18,903 | 25 | % | |||||||
Three Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Cost of revenue | $ | 19,717 | $ | 17,803 | $ | 1,914 | 11 | % | |||||||
Gross profit | 75,048 | 58,059 | 16,989 | 29 | % | ||||||||||
Three Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Sales and marketing | $ | 57,759 | $ | 50,046 | $ | 7,713 | 15 | % | |||||||
Technology and content | 29,514 | 24,819 | 4,695 | 19 | % | ||||||||||
General and administrative | 22,996 | 20,575 | 2,421 | 12 | % | ||||||||||
Total operating expenses | $ | 110,269 | $ | 95,440 | $ | 14,829 | 16 | % | |||||||
Three Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Interest expense | $ | (7,241 | ) | $ | (7,346 | ) | $ | 105 | (1 | )% | |||||
Other income, net | 2,267 | 4,106 | (1,839 | ) | (45 | )% | |||||||||
Six Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Revenue | $ | 187,411 | $ | 145,479 | $ | 41,932 | 29 | % | |||||||
Six Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Cost of revenue | $ | 38,725 | $ | 34,515 | $ | 4,210 | 12 | % | |||||||
Gross profit | 148,686 | 110,964 | 37,722 | 34 | % | ||||||||||
Six Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Sales and marketing | $ | 120,174 | $ | 94,217 | $ | 25,957 | 28 | % | |||||||
Technology and content | 59,658 | 45,090 | 14,568 | 32 | % | ||||||||||
General and administrative | 46,367 | 42,766 | 3,601 | 8 | % | ||||||||||
Total operating expenses | $ | 226,199 | $ | 182,073 | $ | 44,126 | 24 | % | |||||||
Six Months Ended June 30, | Change | ||||||||||||||
2020 | 2019 | Amount | % | ||||||||||||
(dollars in thousands) | |||||||||||||||
Interest expense | $ | (14,390 | ) | $ | (9,024 | ) | $ | (5,366 | ) | 59 | % | ||||
Other income, net | 4,437 | 5,782 | (1,345 | ) | (23 | )% | |||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Non-GAAP gross profit | $ | 76,568 | $ | 58,907 | $ | 151,702 | $ | 112,424 | ||||||||
Non-GAAP gross margin | 81 | % | 78 | % | 81 | % | 77 | % | ||||||||
Non-GAAP operating loss | $ | (5,119 | ) | $ | (11,578 | ) | $ | (19,020 | ) | $ | (21,974 | ) | ||||
Free cash flow | $ | (17,989 | ) | $ | (11,145 | ) | $ | (15,268 | ) | $ | (8,679 | ) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(dollars in thousands) | ||||||||||||||||
Gross profit | $ | 75,048 | $ | 58,059 | $ | 148,686 | $ | 110,964 | ||||||||
Equity-based compensation | 296 | 133 | 566 | 217 | ||||||||||||
Amortization of acquired intangible assets | 1,209 | 702 | 2,418 | 1,227 | ||||||||||||
Employer payroll taxes on employee stock transactions | 15 | 13 | 32 | 16 | ||||||||||||
Non-GAAP gross profit | $ | 76,568 | $ | 58,907 | $ | 151,702 | $ | 112,424 | ||||||||
Gross margin | 79 | % | 77 | % | 79 | % | 76 | % | ||||||||
Non-GAAP gross margin | 81 | % | 78 | % | 81 | % | 77 | % | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Loss from operations | $ | (35,221 | ) | $ | (37,381 | ) | $ | (77,513 | ) | $ | (71,109 | ) | ||||
Equity-based compensation | 26,425 | 22,732 | 52,003 | 43,000 | ||||||||||||
Amortization of acquired intangible assets | 1,420 | 907 | 2,855 | 1,609 | ||||||||||||
Employer payroll taxes on employee stock transactions | 997 | 1,329 | 2,375 | 2,773 | ||||||||||||
Secondary offering costs | 1,260 | — | 1,260 | 918 | ||||||||||||
Acquisition-related costs | — | 835 | — | 835 | ||||||||||||
Non-GAAP operating loss | $ | (5,119 | ) | $ | (11,578 | ) | $ | (19,020 | ) | $ | (21,974 | ) | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Net cash (used in) provided by operating activities | $ | (9,250 | ) | $ | (7,184 | ) | $ | 9,045 | $ | (1,648 | ) | |||||
Less: Purchases of property and equipment | (6,626 | ) | (2,457 | ) | (20,520 | ) | (4,590 | ) | ||||||||
Less: Purchases of content library | (2,113 | ) | (1,504 | ) | (3,793 | ) | (2,441 | ) | ||||||||
Free cash flow | $ | (17,989 | ) | $ | (11,145 | ) | $ | (15,268 | ) | $ | (8,679 | ) | ||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Net cash provided by (used in) operating activities | $ | 9,045 | $ | (1,648 | ) | |||
Net cash used in investing activities | (25,720 | ) | (483,015 | ) | ||||
Net cash provided by financing activities | 7,005 | 561,853 | ||||||
Effect of exchange rate change on cash, cash equivalents, and restricted cash and cash equivalents | (157 | ) | 22 | |||||
Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents | $ | (9,827 | ) | $ | 77,212 | |||
• | the requirement that a majority of its board of directors consist of independent directors; |
• | the requirement that its director nominees be selected or recommended for the board's selection by a majority of the board's independent directors in a vote in which only independent directors participate or by a nominating committee comprised solely of independent directors, in either case, with board resolutions or a written charter, as applicable, addressing the nominations process and related matters as required under the federal securities laws; and |
• | the requirement that its compensation committee be composed entirely of independent directors with a written charter addressing the committee's purposes and responsibilities. |
• | actual or anticipated fluctuations in our revenue and other results of operations, including as a result of the addition or loss of any number of customers; |
• | announcements by us or our competitors of significant technical innovations, acquisitions, strategic partnerships, joint ventures, or capital commitments; |
• | the financial projections we may provide to the public, any changes in these projections, or our failure to meet these projections; |
• | failure of securities analysts to initiate or maintain coverage of us, changes in ratings and financial estimates and the publication of other news by any securities analysts who follow our company, or our failure to meet these estimates or the expectations of investors; |
• | changes in operating performance and stock market valuations of SaaS-based software or other technology companies, or those in our industry in particular; |
• | the size of our public float; |
• | price and volume fluctuations in the trading of our Class A common stock and in the overall stock market, including as a result of trends in the economy as a whole; |
• | new laws or regulations or new interpretations of existing laws or regulations applicable to our business or industry, including data privacy, data protection, and information security; |
• | lawsuits threatened or filed against us for claims relating to intellectual property, employment issues, or otherwise; |
• | actual or perceived security breaches; |
• | changes in our board of directors or management; |
• | short sales, hedging, and other derivative transactions involving our Class A common stock; |
• | sales of large blocks of our Class A common stock including sales by our executive officers, directors, and significant stockholders; |
• | the impact of the COVID-19 pandemic on our business operations and overall financial performance; and |
• | other events or factors, including changes in general economic, industry, and market conditions, and trends, as well as any natural disasters, which may affect our operations. |
Incorporated by Reference | Filed or Furnished Herewith | |||||||||||
Exhibit Number | Description | Form | File No. | Exhibit Number | Filing Date with SEC | |||||||
10.1 | X | |||||||||||
10.2 | X | |||||||||||
10.3 | X | |||||||||||
10.4+ | X | |||||||||||
31.1 | X | |||||||||||
31.2 | X | |||||||||||
32.1* | X | |||||||||||
32.2* | X | |||||||||||
101.INS | Inline XBRL Instance Document | X | ||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||||||
PLURALSIGHT, INC. | |||
By: | /s/ Aaron Skonnard | ||
Date: | July 29, 2020 | Aaron Skonnard Chief Executive Officer | |
PLURALSIGHT, INC. | |||
By: | /s/ James Budge | ||
Date: | July 29, 2020 | James Budge Chief Financial Officer | |
By: | /s/ Kem Gardner |
Name: | Kem Gardner |
Its: | Manager |
TENANT: | PLURALSIGHT, LLC, a Nevada limited liability company |
By: | /s/ Matthew Tenney |
Name: | Matthew Tenney |
Its: | Authorized Representative |
By: | /s/ Christian Gardner |
Name: | Christian Gardner |
Its: | Manager |
TENANT: | PLURALSIGHT, LLC, a Nevada limited liability company |
By: | /s/ James Budge |
Name: | James Budge |
Its: | Chief Financial Officer |
By: | /s/ Christian Gardner |
Name: | Christian Gardner |
Its: | Manager |
By: | /s/ S. Val Staker |
Name: | S. Val Staker |
Its: | Manager |
TENANT: | PLURALSIGHT, LLC, a Nevada limited liability company |
By: | /s/ Mark Hansen |
Name: | Mark Hansen |
Its: | Director of Finance and Accounting |
1. | Consideration. |
i. | Employee’s employment with the Company and any of its affiliates shall terminate effective the earlier of (1) July 17, 2020, (2) the date Employee’s employment is terminated by the Company if for "cause" (as defined in Section 8.1 of the Employment Agreement), or (3) Employee resigns and designates his last day as a date earlier than July 17, 2020 (the "Separation Date"). |
ii. | The Company shall timely provide Employee with all necessary and required documents and information to allow Employee to elect continuation coverage as provided for in the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA"). Subject to Employee signing this Agreement and not timely revoking, to assist with Employee’s transition to a new benefits provider, the Company shall provide Employee a lump sum payment equal to $11,140.35 (the "Severance Payment"). Regardless of whether the Separation Date is on July 17, 2020 or an earlier date, Employee acknowledges and agrees that the Company is only obligated to pay the Severance Payment. |
iii. | The Severance Payment shall be paid to Employee on the first available payday following the Separation Date, less applicable federal and state income taxes, employee taxes, and other appropriate withholdings. The Company will deposit the Severance Payment into to the bank account where the Company had been transmitting Employee’s pay immediately prior to the Separation Date. |
iv. | Employee shall resign from all positions with the Company, including any of its parent, subsidiary, or affiliate companies, effective as of the Separation Date. |
Dated: | July 9, 2020 | /s/ Nate Walkingshaw | ||
Nate Walkingshaw | ||||
Pluralsight, LLC | ||||
Dated: | July 9, 2020 | By: | /s/ Aaron Skonnard | |
Name: | Aaron Skonnard | |||
Its: | Chief Executive Officer | |||
1. | I have reviewed this Quarterly Report on Form 10-Q of Pluralsight, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
c. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; | |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |
Date: July 29, 2020 | /s/ Aaron Skonnard | |||||
Aaron Skonnard | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
1. | I have reviewed this Quarterly Report on Form 10-Q of Pluralsight, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
a. | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; | |
b. | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and | |
c. | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; | |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and | |
b. | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. | |
Date: July 29, 2020 | /s/ James Budge | |||||
James Budge | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) | ||||||
1. | the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2020 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | |
Date: July 29, 2020 | /s/ Aaron Skonnard | |||||
Aaron Skonnard | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
1. | the Quarterly Report on Form 10-Q of the Company for the fiscal quarter ended June 30, 2020 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and | |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. | |
Date: July 29, 2020 | /s/ James Budge | |||||
James Budge | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) | ||||||
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
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| Income Statement [Abstract] | ||||
| Revenue | $ 94,765 | $ 75,862 | $ 187,411 | $ 145,479 |
| Cost of revenue | 19,717 | 17,803 | 38,725 | 34,515 |
| Gross profit | 75,048 | 58,059 | 148,686 | 110,964 |
| Operating expenses: | ||||
| Sales and marketing | 57,759 | 50,046 | 120,174 | 94,217 |
| Technology and content | 29,514 | 24,819 | 59,658 | 45,090 |
| General and administrative | 22,996 | 20,575 | 46,367 | 42,766 |
| Total operating expenses | 110,269 | 95,440 | 226,199 | 182,073 |
| Loss from operations | (35,221) | (37,381) | (77,513) | (71,109) |
| Other income (expense): | ||||
| Interest expense | (7,241) | (7,346) | (14,390) | (9,024) |
| Other income, net | 2,267 | 4,106 | 4,437 | 5,782 |
| Loss before income taxes | (40,195) | (40,621) | (87,466) | (74,351) |
| Income tax benefit (expense) | 465 | (143) | 223 | (297) |
| Net loss | (39,730) | (40,764) | (87,243) | (74,648) |
| Less: Net loss attributable to non-controlling interests | (9,801) | (11,637) | (21,995) | (26,446) |
| Net loss attributable to Pluralsight, Inc. | $ (29,929) | $ (29,127) | $ (65,248) | $ (48,202) |
| Net loss per share, basic and diluted (in dollars per share) | $ (0.28) | $ (0.30) | $ (0.62) | $ (0.56) |
| Weighted average shares of Class A common stock used in computing basic and diluted net loss per share (in shares) | 107,153 | 97,608 | 105,899 | 86,827 |
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Statement of Comprehensive Income [Abstract] | ||||
| Net loss | $ (39,730) | $ (40,764) | $ (87,243) | $ (74,648) |
| Other comprehensive income (loss): | ||||
| Unrealized gains on investments | 2,954 | 379 | 1,389 | 379 |
| Foreign currency translation gains (losses), net | 73 | (7) | (149) | 11 |
| Comprehensive loss | (36,703) | (40,392) | (86,003) | (74,258) |
| Less: Comprehensive loss attributable to non-controlling interests | (9,030) | (11,533) | (21,684) | (26,334) |
| Comprehensive loss attributable to Pluralsight, Inc. | $ (27,673) | $ (28,859) | $ (64,319) | $ (47,924) |
Organization and Description of Business |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Organization and Description of Business | Organization and Description of Business Pluralsight, Inc. was incorporated as a Delaware corporation on December 4, 2017 as a holding company for the purpose of facilitating an initial public offering (“IPO”) and other related transactions in order to carry on the business of Pluralsight Holdings, LLC (“Pluralsight Holdings”) and its subsidiaries (together with Pluralsight, Inc., the “Company” or “Pluralsight”). In May 2018, Pluralsight, Inc. completed its IPO and used the net proceeds to purchase newly issued common limited liability company units (“LLC Units”) from Pluralsight Holdings. Following the reorganization transactions completed in connection with the IPO (“Reorganization Transactions”), Pluralsight, Inc. became the sole managing member of Pluralsight Holdings. As the sole managing member, Pluralsight, Inc. has the sole voting interest in Pluralsight Holdings and controls all of the business operations, affairs, and management of Pluralsight Holdings. Accordingly, Pluralsight, Inc. consolidates the financial results of Pluralsight Holdings and reports the non-controlling interests representing the economic interests held by the other members of Pluralsight Holdings. As of June 30, 2020, Pluralsight, Inc. owned 78.0% of Pluralsight Holdings and the members of Pluralsight Holdings who retained LLC Units prior to the IPO (the “Continuing Members”) owned the remaining 22.0% of Pluralsight Holdings. Pluralsight operates a cloud-based technology skills and engineering management platform that provides a broad range of tools for businesses and individuals, including skill assessments, a curated library of courses, learning paths, developer productivity metrics, and business analytics. As the sole managing member of Pluralsight Holdings, Pluralsight, Inc. operates and controls all of the business operations and affairs of Pluralsight. Secondary Offering In June 2020, the Company completed a secondary offering, in which certain selling stockholders sold 11,711,009 shares of Class A common stock at a public offering price of $19.50 per share. Pluralsight did not receive any proceeds from the sale of shares by selling stockholders. A total of $1.3 million in costs were incurred by Pluralsight in connection with this offering.
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Summary of Significant Accounting Policies and Recent Accounting Pronouncements |
6 Months Ended |
|---|---|
Jun. 30, 2020 | |
| Accounting Policies [Abstract] | |
| Summary of Significant Accounting Policies and Recent Accounting Pronouncements | Summary of Significant Accounting Policies and Recent Accounting Pronouncements Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and the applicable regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read 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 Pluralsight, Inc.’s Annual Report on Form 10-K/A, as filed with the SEC on March 2, 2020 (“Annual Report”). These unaudited condensed consolidated financial statements include the accounts of Pluralsight, Inc. and its directly and indirectly wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. As discussed in Note 1—Organization and Description of Business, Pluralsight, Inc. consolidates the financial results of Pluralsight Holdings as a Variable Interest Entity (“VIE”). The Company periodically evaluates entities for consolidation either through ownership of a majority voting interest, or through means other than a voting interest, in accordance with the VIE accounting model. Under the VIE accounting model, Pluralsight, Inc. is the primary beneficiary as it has the majority economic interest in Pluralsight Holdings, and, as the sole managing member, has decision making authority that significantly affects the economic performance of the entity, while the limited partners have no substantive kick-out or participating rights. The assets and liabilities of Pluralsight Holdings represent substantially all of the consolidated assets and liabilities of Pluralsight, Inc. with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement (“TRA”) as discussed in Note 15—Income Taxes and the obligations under the Company’s convertible senior notes discussed in Note 10—Convertible Senior Notes. Interim Unaudited Condensed Consolidated Financial Statements The accompanying condensed consolidated balance sheet as of June 30, 2020, and the condensed consolidated statements of operations, comprehensive loss, and stockholders’ equity, for the three and six months ended June 30, 2020 and 2019, and the interim condensed consolidated statements of cash flows for the six months ended June 30, 2020 and 2019, are unaudited. The condensed consolidated balance sheet as of December 31, 2019 was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The interim unaudited condensed consolidated financial statements have been prepared on a basis consistent with the annual consolidated financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial condition, its operations and cash flows for the periods presented. The historical results are not necessarily indicative of future results, and the results of operations for the three and six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year or any other period. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses for the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to the determination of the fair value of equity awards, the fair value of the liability and equity components of the convertible senior notes, the fair value of identified assets and liabilities acquired in business combinations, the useful lives of property and equipment, content library and intangible assets, impairment of long-lived and intangible assets, including goodwill, provisions for doubtful accounts receivable, the standalone selling price (“SSP”) of performance obligations, the determination of the period of benefit for deferred contract acquisition costs, certain accrued expenses, including author fees, and the discount rate used in measuring lease liabilities. These estimates and assumptions are based on the Company’s historical results and management’s future expectations. Actual results could differ from those estimates. Significant Accounting Policies The Company’s significant accounting policies are discussed in Note 2—Summary of Significant Accounting Policies and Recent Accounting Pronouncements in the Annual Report. There have been no significant changes to these policies that have had a material impact on the Company’s unaudited condensed consolidated financial statements and related notes during the three months ended June 30, 2020, except as noted below. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. The allowance for credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The ASU also amends the impairment model for available-for-sale debt securities and requires any credit losses on available-for-sale debt securities to be presented as an allowance rather than as a write-down, with changes presented through earnings. The Company adopted the standard effective January 1, 2020 using the modified retrospective approach. The effect of the adoption was not material to the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset. The Company adopted the standard prospectively effective January 1, 2020. As a result of the adoption, the Company capitalizes certain implementation costs that were previously expensed as incurred. These costs will be amortized to expense over the term of the hosting arrangement. The effect of adopting the standard was not material to the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2020. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740 and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The standard is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company early adopted the standard during the three months ended June 30, 2020. The effect of adopting the standard was not material to the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2020. The standard removes the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and other comprehensive income, as a result the Company was not required to apply the incremental approach for intraperiod tax allocation during the three months ended June 30, 2020.
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Revenue |
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| Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | Revenue Disaggregation of Revenue Subscription revenue accounted for approximately 96% and 97% of the Company’s revenue for the three months ended June 30, 2020 and 2019, respectively, and 96% and 98% for the six months ended June 30, 2020 and 2019, respectively. Revenue by geographic region, based on the physical location of the customer, was as follows (dollars in thousands):
Revenue by type of customer, was as follows (dollars in thousands):
Contract Balances Contract assets represent amounts for which the Company has recognized revenue, pursuant to the Company’s revenue recognition policy, for contracts that have not yet been invoiced to customers where there is a remaining performance obligation, typically for multi-year arrangements. Total contract assets were $1.1 million and $0.8 million as of June 30, 2020 and December 31, 2019, respectively. The change in contract assets reflects the difference in timing between the satisfaction of remaining performance obligations and the Company’s contractual right to bill its customers. Deferred revenue consists of contract liabilities and includes payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. The Company recognized revenue that was included in the corresponding deferred revenue balance at the beginning of the period of $84.0 million and $65.4 million for the three months ended June 30, 2020 and 2019, respectively, and $142.1 million and $104.9 million for the six months ended June 30, 2020 and 2019, respectively. Remaining Performance Obligations As of June 30, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $303.4 million. The Company expects to recognize 75% of the transaction price over the next 12 months. Costs to Obtain a Contract The following table summarizes the activity of the deferred contract acquisition costs (in thousands):
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Cash Equivalents and Investments |
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| Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash Equivalents and Investments | Cash Equivalents and Investments Cash equivalents, restricted cash equivalents, and investments consisted of the following (in thousands):
The amortized cost and fair value of the Company’s investments based on their stated maturities consisted of the following as of June 30, 2020 (in thousands):
The Company reviews the individual securities that have unrealized losses in its investment portfolio on a regular basis to evaluate whether or not any declines in fair value are the result of credit losses. The Company evaluates, among other factors, whether it has the intention to sell any of these investments and whether it is more likely than not that it will be required to sell any of them before recovery of the amortized cost basis. Based on this evaluation, the Company determined that the unrealized losses were primarily related to investments in corporate notes and obligations, and were due to increases in credit spreads and temporary declines in liquidity for the asset class that were not specific to the underlying issuer of the investments. The Company does not intend to sell the investments with unrealized losses and it is not more likely than not that the Company will be required to sell its investments before the recovery of the amortized cost basis. As a result of this evaluation, no credit losses were recorded for investments as of June 30, 2020. The investments with unrealized loss positions have been in an unrealized loss position for less than 12 months.
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Fair Value Measurements |
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| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | Fair Value Measurements The Company measures and records certain financial assets at fair value on a recurring basis. Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company’s financial instruments that are measured at fair value on a recurring basis consist of money market funds and investments in available-for-sale debt securities. The following three levels of inputs are used to measure the fair value of financial instruments: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The fair value of the Company’s financial instruments was as follows (in thousands):
Convertible Senior Notes As of June 30, 2020, the estimated fair value of the Company’s convertible senior notes, with aggregate principal totaling $593.5 million, was $513.4 million. The Company estimates the fair value based on quoted market prices in an inactive market on the last trading day of the reporting period (Level 2). These convertible senior notes are recorded at face value less unamortized debt discount and transaction costs on the Company’s condensed consolidated balance sheet. Refer to Note 10—Convertible Senior Notes for further information. Fair Value of Other Financial Instruments The carrying amounts of the Company’s accounts receivable, accounts payable, accrued expenses, and other liabilities approximate their fair values due to the short maturities of these assets and liabilities.
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Balance Sheet Components |
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| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following (in thousands):
Accrued Expenses Accrued expenses consisted of the following (in thousands):
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Property and Equipment |
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| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment | Property and Equipment Property and equipment, net consisted of the following (in thousands):
Depreciation expense totaled $3.2 million and $2.3 million for the three months ended June 30, 2020 and 2019, respectively, and $5.9 million and $4.6 million for the six months ended June 30, 2020 and 2019, respectively.
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Acquisition of GitPrime, Inc. |
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| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisition of GitPrime, Inc. | Acquisition of GitPrime, Inc. On May 9, 2019, the Company completed the acquisition of GitPrime, Inc. (“GitPrime”), a leading provider of software developer productivity software. Under the terms of the agreement, the Company acquired all of the outstanding stock of GitPrime for approximately $163.8 million in cash, excluding cash acquired and including working capital adjustments. The Company accounted for the transaction as a business combination using the acquisition method of accounting. The Company allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition date. The excess of the purchase consideration over the fair value of the net tangible and identifiable intangible assets acquired was recorded as goodwill. The goodwill is attributable to GitPrime’s assembled workforce and synergies acquired, and is not deductible for income tax purposes. The following table summarizes the acquisition date fair values of assets acquired and liabilities assumed at the date of acquisition (in thousands):
The useful lives, primarily based on the period of benefit to the Company, and fair values of the identifiable intangible assets at acquisition date were as follows:
The fair value of the technology acquired in the acquisition was determined using the excess earnings model and the customer relationships acquired was determined using a distributor model. These models utilize certain unobservable inputs, including discounted cash flows, historical and projected financial information, customer attrition rates, and technology obsolescence rates, classified as Level 3 measurements as defined by Fair Value Measurement (Topic 820). The Company engaged third-party valuation specialists to assist in management’s analysis of the fair value of the acquired intangibles. All estimates, key assumptions, and forecasts were reviewed by the Company. While the Company chose to utilize a third-party valuation specialist for assistance, the fair value analysis and related valuations reflect the conclusions of management and not those of any third party. During the year ended December 31, 2019, the Company incurred acquisition costs of $0.8 million. These costs include legal and accounting fees, and other costs directly related to the acquisition and are classified within general and administrative expenses in the Company’s consolidated statements of operations. Unaudited Pro Forma Information The following unaudited pro forma information has been prepared for illustrative purposes only and assumes the acquisition occurred on January 1, 2018. It includes pro forma adjustments related to the amortization of acquired intangible assets, equity-based compensation expense, adjustments for ASC 606, and fair value adjustments for deferred revenue. The unaudited pro forma results have been prepared based on estimates and assumptions, which management believes are reasonable, however, the results are not necessarily indicative of the consolidated results of operations had the acquisition occurred on January 1, 2018, or of future results of operations (in thousands, except per share amounts):
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Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Intangible Assets | Intangible Assets Intangible assets, net are summarized as follows (in thousands):
Intangible assets are amortized using the straight-line method over the estimated useful lives. Amortization expense of acquired intangible assets was $1.4 million and $0.9 million for the three months ended June 30, 2020 and 2019, respectively, and $2.9 million and $1.6 million for the six months ended June 30, 2020 and 2019, respectively. Amortization expense of course creation costs was $0.8 million and $0.6 million for the three months ended June 30, 2020 and 2019, respectively, and $1.6 million and $1.2 million for the six months ended June 30, 2020 and 2019, respectively. Based on the recorded content library and intangible assets at June 30, 2020, estimated amortization expense is expected to be as follows (in thousands):
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Convertible Senior Notes | Convertible Senior Notes Convertible Senior Notes In March 2019, Pluralsight, Inc. issued $633.5 million aggregate principal amount of 0.375% convertible senior notes due in 2024 (the “Notes”), in a private placement to qualified institutional buyers exempt from registration under the Securities Act. The net proceeds from the issuance of the Notes were $616.7 million after deducting the initial purchasers’ discounts and estimated issuance costs. The Notes are governed by an indenture (the “Indenture”) between the Company, as the issuer, and U.S. Bank National Association, as trustee. The Notes are Pluralsight, Inc.’s senior unsecured obligations and rank senior in right of payment to any of its indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to any of the Company’s unsecured indebtedness then existing and future liabilities that are not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness, to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of its subsidiaries. The Indenture does not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness, or the issuance or repurchase of securities by the Company or any of its subsidiaries. The Notes mature on March 1, 2024 unless earlier repurchased or converted. Interest is payable semi-annually in arrears on March 1 and September 1 of each year. The Notes have an initial conversion rate of 25.8023 shares of the Company’s Class A common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $38.76 per share of its Class A common stock and is subject to adjustment if certain events occur. Following certain corporate events that occur prior to the maturity date, the Company will increase the conversion rate for a holder who elects to convert its Notes in connection with such corporate event. Additionally, upon the occurrence of a corporate event that constitutes a “fundamental change” per the Indenture, holders of the Notes may require the Company to repurchase for cash all or a portion of their Notes at a purchase price equal to 100% of the principal amount of the Notes plus accrued and unpaid interest. Holders of the Notes may convert all or any portion of their Notes at any time prior to the close of business on December 1, 2023, in integral multiples of $1,000 principal amount, only under the following circumstances:
On or after December 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes at the conversion rate at any time irrespective of the foregoing conditions. Upon conversion, holders will receive cash, shares of the Company’s Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election. During the three months ended June 30, 2020, the conditions allowing holders of the Notes to convert were not met. The Notes are therefore not currently convertible and are classified as long-term debt. The Company accounts for the Notes as separate liability and equity components. The Company determined the carrying amount of the liability component as the present value of its cash flows using a discount rate of approximately 5.5% based on comparable debt transactions for similar companies. The estimated interest rate was applied to the Notes, which resulted in a fair value of the liability component of $492.7 million upon issuance, calculated as the present value of future contractual payments based on the $633.5 million aggregate principal amount. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense over the term of the Notes using the effective interest method. The $140.8 million difference between the gross proceeds received from issuance of the Notes of $633.5 million and the estimated fair value of the liability component represents the equity component, or the conversion option, of the Notes and was recorded in additional paid-in capital. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocated issuance costs related to the issuance of the Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Issuance costs attributable to the liability component were $13.1 million and are being amortized to interest expense using the effective interest method over the term of the Notes. Issuance costs attributable to the equity components were $3.7 million and are netted with the equity component of the Notes in stockholders’ equity on the condensed consolidated balance sheets. In September 2019, Pluralsight, Inc. repurchased a total of $40.0 million in aggregate principal of its Notes for approximately $35.0 million in cash. The Company first allocated the cash paid to repurchase the Notes to the liability component based on the estimated fair value of that component immediately prior to the extinguishment. The difference between the fair value of the liability component and the carrying value of the repurchased Notes resulted in a loss on debt extinguishment of $1.0 million. The remaining consideration of approximately $3.0 million was allocated to the reacquisition of the equity component and recorded as a reduction of stockholders’ equity. The net carrying value of the liability component of the Notes was as follows (in thousands):
The net carrying value of the equity component of the Notes was as follows (in thousands):
The interest expense recognized related to the Notes was as follows (in thousands):
Capped Calls In connection with the offering of the Notes, the Company entered into privately-negotiated capped call transactions (“Capped Calls”) with certain counterparties. The Capped Calls each have an initial strike price of approximately $38.76 per share, subject to certain adjustments, which corresponds to the initial conversion price of the Notes. The Capped Calls have initial cap prices of $58.50 per share, subject to certain adjustments. As of June 30, 2020, the Capped Calls cover, subject to anti-dilution adjustments, 15,313,665 shares of the Company’s Class A common stock. The Capped Calls are generally intended to reduce or offset the potential dilution from shares of Class A common stock issued upon any conversion of the Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. As the Capped Call transactions are considered indexed to the Company’s own stock and are considered equity classified, they are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $69.4 million incurred in connection with the Capped Calls was recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. In connection with the repurchase of the convertible senior notes in September 2019, the Company terminated a portion of its existing Capped Calls that cover 1,032,092 shares of the Company’s Class A common stock, which corresponds to the number of shares underlying the principal amount of Notes that were repurchased. The Company received proceeds of $1.3 million in connection with the portion of the Capped Calls that were terminated in September 2019. Intercompany Convertible Promissory Note with Pluralsight Holdings In connection with the issuance of the Notes, Pluralsight, Inc. entered into an intercompany convertible promissory note with Pluralsight Holdings, whereby Pluralsight, Inc. provided the net proceeds from the issuance of the Notes to Pluralsight Holdings. The terms of the convertible promissory note mirror the terms of the Notes issued by Pluralsight, Inc. The intent of the convertible promissory note is to maintain the parity of shares of Class A common stock with LLC Units as required by the LLC Agreement in order to preserve the Company’s legal structure. This note was amended in September 2019 in connection with the Repurchase. All effects of the convertible promissory note on the condensed consolidated financial statements have been eliminated in consolidation.
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases The Company leases office space under non-cancellable operating leases with lease terms expiring between 2020 and 2035. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional three to five years. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options. The Company performed evaluations of its contracts and determined that each of its identified leases are operating leases. The components of operating lease expense were as follows:
Variable lease expense consists of the Company’s proportionate share of operating expenses, property taxes, and insurance and is classified as lease expense due to the Company’s election to not separate lease and non-lease components. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended June 30, 2020 and 2019 was $1.8 million and $1.3 million, respectively, and $3.5 million and $2.7 million for the six months ended June 30, 2020 and 2019, respectively, and was included in net cash used in operating activities in the consolidated statements of cash flows. As of June 30, 2020, the maturities of the Company’s operating lease liabilities were as follows (in thousands):
As of June 30, 2020, the weighted average remaining lease term is 13.3 years and the weighted average discount rate used to determine operating lease liabilities was 8.2%. The Company has various sublease agreements with third parties. These subleases have remaining lease terms of up to two years. Sublease income, which is recorded within other income, was $0.1 million during the three months ended June 30, 2020 and 2019. In August 2018, the Company entered into a non-cancellable lease agreement to rent office space for the Company’s headquarters in Draper, Utah for a period of 15 years. In May 2020, certain construction milestones were met and as a result the lease agreement was amended to establish the rent commencement date and define the basic rent for the lease beginning in July 2020. The lease commencement date occurred during the three months ended June 30, 2020. At the commencement date, the Company classified the lease as an operating lease and recorded a lease liability of $70.3 million with a corresponding right-of-use asset and an increase to property and equipment for tenant improvements that were deemed lease incentives. The lease liability was measured using an estimated incremental borrowing rate derived from comparable market data. The lease agreement provides the Company with three extension periods of five years each. The Company did not include these extension periods in the lease term as the extension options are not reasonably certain to be exercised. In connection with the lease agreement, the Company is required to maintain a deposit of $16.0 million with a financial institution for the benefit of the landlord to secure the Company’s obligations under the lease. The deposit is recorded within restricted cash and cash equivalents on the condensed consolidated balance sheets. The lease agreement provides for both a partial and full release of the deposit funds to the Company, provided the Company meets certain liquidity and other financial conditions. Additionally, as of June 30, 2020 and December 31, 2019, the Company recorded a deposit of $4.3 million and $11.6 million, respectively, into restricted cash and cash equivalents on its condensed consolidated balance sheet for use in constructing tenant improvements in connection with the Draper headquarters.
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| Leases | Leases The Company leases office space under non-cancellable operating leases with lease terms expiring between 2020 and 2035. These leases require monthly lease payments that may be subject to annual increases throughout the lease term. Certain of these leases also include renewal options at the election of the Company to renew or extend the lease for an additional three to five years. These optional periods have not been considered in the determination of the right-of-use assets or lease liabilities associated with these leases as the Company did not consider it reasonably certain it would exercise the options. The Company performed evaluations of its contracts and determined that each of its identified leases are operating leases. The components of operating lease expense were as follows:
Variable lease expense consists of the Company’s proportionate share of operating expenses, property taxes, and insurance and is classified as lease expense due to the Company’s election to not separate lease and non-lease components. Cash paid for amounts included in the measurement of operating lease liabilities for the three months ended June 30, 2020 and 2019 was $1.8 million and $1.3 million, respectively, and $3.5 million and $2.7 million for the six months ended June 30, 2020 and 2019, respectively, and was included in net cash used in operating activities in the consolidated statements of cash flows. As of June 30, 2020, the maturities of the Company’s operating lease liabilities were as follows (in thousands):
As of June 30, 2020, the weighted average remaining lease term is 13.3 years and the weighted average discount rate used to determine operating lease liabilities was 8.2%. The Company has various sublease agreements with third parties. These subleases have remaining lease terms of up to two years. Sublease income, which is recorded within other income, was $0.1 million during the three months ended June 30, 2020 and 2019. In August 2018, the Company entered into a non-cancellable lease agreement to rent office space for the Company’s headquarters in Draper, Utah for a period of 15 years. In May 2020, certain construction milestones were met and as a result the lease agreement was amended to establish the rent commencement date and define the basic rent for the lease beginning in July 2020. The lease commencement date occurred during the three months ended June 30, 2020. At the commencement date, the Company classified the lease as an operating lease and recorded a lease liability of $70.3 million with a corresponding right-of-use asset and an increase to property and equipment for tenant improvements that were deemed lease incentives. The lease liability was measured using an estimated incremental borrowing rate derived from comparable market data. The lease agreement provides the Company with three extension periods of five years each. The Company did not include these extension periods in the lease term as the extension options are not reasonably certain to be exercised. In connection with the lease agreement, the Company is required to maintain a deposit of $16.0 million with a financial institution for the benefit of the landlord to secure the Company’s obligations under the lease. The deposit is recorded within restricted cash and cash equivalents on the condensed consolidated balance sheets. The lease agreement provides for both a partial and full release of the deposit funds to the Company, provided the Company meets certain liquidity and other financial conditions. Additionally, as of June 30, 2020 and December 31, 2019, the Company recorded a deposit of $4.3 million and $11.6 million, respectively, into restricted cash and cash equivalents on its condensed consolidated balance sheet for use in constructing tenant improvements in connection with the Draper headquarters.
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2020 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies Letters of Credit As of June 30, 2020 and December 31, 2019, the Company had a total of $2.1 million in letters of credit outstanding with financial institutions. These outstanding letters of credit were issued for purposes of securing certain of the Company’s obligations under facility leases. The letters of credit were collateralized by $1.3 million of the Company’s cash, as of June 30, 2020 and December 31, 2019, respectively, which is reflected as restricted cash and cash equivalents on the condensed consolidated balance sheets. Other Commitments The Company has also entered into certain non-cancellable agreements primarily related to cloud infrastructure and software subscriptions in the ordinary course of business. There have been no material changes in the Company’s commitments and contingencies, as disclosed in the Annual Report. Legal Proceedings In August 2019, a class action complaint was filed by a stockholder of the Company in the U.S. District Court for the Southern District of New York against the Company, and certain of the Company’s officers alleging violation of securities laws and seeking unspecified damages. In October 2019, the action was transferred to the U.S. District Court for the District of Utah and in March 2020, a lead plaintiff was appointed. An amended complaint was filed in June 2020. The amended complaint names us as defendants, along with certain of the Company’s officers, members of the Board of Directors, and Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC, the lead underwriters from the Company’s March 2019 common stock offering. A response from the defendants to the amended complaint is due August 2020. The Company believes this suit is without merit and intends to defend it vigorously. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision. If an unfavorable outcome were to occur, it is possible that the impact could be material to the Company’s results of operations in the period(s) in which any such outcome becomes probable and estimable. In March 2020, a derivative lawsuit was filed by a shareholder in the United States District Court for the District of Delaware as an outgrowth of the aforementioned class action. It includes as defendants certain of the Company’s officers and the Board of Directors, alleging violations of fiduciary duties to the Company. The Company is named as a nominal defendant. On May 18, 2020, the Court entered a stipulated order that stays the derivative lawsuit until the class action is dismissed with prejudice, the defendants’ motion to dismiss the class action complaint is denied, or the defendants file an answer to the class action complaint. The Company is involved in other legal proceedings from time to time arising in the normal course of business. The Company is unable to estimate a range of loss, if any, that could result were there to be an adverse final decision. Management believes that the outcome of these proceedings will not have a material impact on the Company’s financial condition, results of operations, or liquidity. Warranties and Indemnification The performance of the Company’s cloud-based technology skills platform is typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable. The Company’s contractual arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third-party’s intellectual property rights. In addition, the Company has some contractual arrangements with provisions for indemnifying customers against liabilities in the case of breaches of the Company’s platform or the other systems or networks used in the Company’s business, including those of vendors, contractors, or others with which the Company has strategic relationships. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any material liabilities related to such obligations in the accompanying condensed consolidated financial statements. The Company has also agreed to indemnify its directors and executive officers for costs associated with any fees, expenses, judgments, fines, and settlement amounts incurred by any of these persons in any action or proceeding to which any of those persons is, or is threatened to be, made a party by reason of the person’s service as a director or officer, including any action by the Company, arising out of that person’s services as the Company’s director or officer or that person’s services provided to any other company or enterprise at the Company’s request. The Company maintains director and officer insurance coverage that would generally enable the Company to recover a portion of any future amounts paid. The Company may also be subject to indemnification obligations by law with respect to the actions of its employees under certain circumstances and in certain jurisdictions.
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Non-Controlling Interests |
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| Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-Controlling Interests | Non-Controlling Interests In connection with the Reorganization Transactions, Pluralsight, Inc. became the sole managing member of Pluralsight Holdings and as a result consolidates the results of operations of Pluralsight Holdings. The non-controlling interests balance represents the economic interests of the LLC Units held by other members of Pluralsight Holdings. As these members exchange these LLC Units for shares of Class A common stock, these LLC Units are then owned by Pluralsight, Inc. and a portion of the non-controlling interests balance is reclassified to additional paid-in capital. During the three months ended June 30, 2020, the adjustments to the non-controlling interests were primarily related to equity-based compensation and the issuance and settlement of equity-based awards. Income or loss is attributed to the non-controlling interests based on the weighted-average ownership percentages of LLC Units outstanding during the period, excluding LLC Units that are subject to time-based vesting requirements. As of June 30, 2020, the non-controlling interests of Pluralsight Holdings owned 22.0% of the outstanding LLC Units, with the remaining 78.0% owned by Pluralsight, Inc. The ownership of the LLC Units is summarized as follows:
(1) Excludes 968,736 and 1,543,813 LLC Units still subject to time-based vesting requirements as of June 30, 2020 and December 31, 2019, respectively.
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Equity-Based Compensation |
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| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity-Based Compensation | Equity-Based Compensation Equity Incentive Plans In June 2017, Pluralsight Holdings adopted the 2017 Equity Incentive Plan (“2017 Plan”) and issued RSUs to employees. In connection with the IPO, the 2017 Plan was terminated. In May 2018, Pluralsight, Inc. adopted the 2018 Equity Incentive Plan (“2018 Plan”). The 2018 Plan provides for the grant of nonstatutory stock options, restricted stock, RSUs, stock appreciation rights, performance units, and performance shares to employees, directors, and consultants of the Company. The number of shares available for issuance under the 2018 Plan also includes an annual increase on the first day of each fiscal year, equal to the lesser of: (i) 14,900,000 shares, (ii) 5.0% of the outstanding shares of capital stock as of the last day of the immediately preceding fiscal year, or (iii) a lower number of shares determined by the 2018 Plan administrator. The number of shares available under the 2018 Plan also includes shares under the 2017 Plan that expire, terminate, are forfeited or repurchased by the Company, or are withheld by the Company to cover tax withholding obligations. As of June 30, 2020, a total of 20,011,454 shares were available for issuance under the 2018 Plan. Stock Options In connection with the IPO, the Company granted to employees stock options under the 2018 Plan to purchase shares of Class A common stock at an exercise price equal to the IPO price of $15.00 per share. As of June 30, 2020, these options have fully vested. In connection with the GitPrime acquisition, the stock options granted to GitPrime employees under GitPrime’s 2015 and 2018 Equity Incentive Plans were replaced with options to purchase shares of the Company’s Class A common stock, subject to appropriate adjustments to the number of shares issuable pursuant to such options and the exercise price of such options as provided in the Merger Agreement. The options are subject to time-based vesting conditions and continue to vest over the remaining vesting period of the original award ranging from two to four years. The following table summarizes the stock option activity for the six months ended June 30, 2020:
The total intrinsic value of options exercised during the six months ended June 30, 2020 was $1.3 million. As of June 30, 2020, the total unrecognized equity-based compensation cost related to the stock options was $2.3 million, which is expected to be recognized over a weighted-average period of 1.8 years. RSUs The Company has granted RSUs to employees under the 2018 Plan and previously under the 2017 Plan. RSUs represent the right to receive shares of Pluralsight Inc.’s Class A common stock at a specified future date. Restricted share units of Pluralsight Holdings under the 2017 Plan are subject to both a service condition and a liquidity condition, whereas RSUs under the 2018 Plan are generally subject to service conditions only. The service conditions are generally satisfied over four years, whereby 25% of the share units satisfy this condition on the first anniversary of the grant date and then ratably on a quarterly basis thereafter through the end of the vesting period. The liquidity condition for RSUs granted under the 2017 Plan is deemed a performance condition and was satisfied upon the expiration of the lock-up period following the IPO. RSUs with both performance and service conditions, including shares issued under the 2017 Plan, are recognized using the accelerated attribution method. RSUs issued under the 2018 Plan are primarily subject to service conditions only and are recognized over the remaining requisite service period using the straight-line attribution method. Under the 2017 Plan, all restricted share units granted were initially restricted share units of Pluralsight Holdings. In connection with the IPO, all restricted share units were converted into RSUs of Pluralsight, Inc., except for restricted share units of Pluralsight Holdings that convey the right to receive LLC Units and corresponding shares of Class C common stock of Pluralsight, Inc. upon vesting. The activity for RSUs of Pluralsight, Inc. and restricted share units of Pluralsight Holdings for the six months ended June 30, 2020 was as follows:
As of June 30, 2020, the total unrecognized equity-based compensation cost related to the RSUs, including the restricted share units of Pluralsight Holdings, was $199.0 million, which is expected to be recognized over a weighted-average period of 3.0 years. 401(k) Equity Match In May 2020, the Compensation Committee of the Board of Directors of Pluralsight, Inc. approved the issuance of Class A common shares to pay the Company’s 401(k) matching contributions to employees during the year ended December 31, 2020. The Company's matching contribution is equal to 50% of eligible wages contributed up to a maximum of 6%. As of June 30, 2020, the Company had recorded a matching liability of $0.2 million that is expected to be settled in shares of Class A common stock on a quarterly basis. Employee Stock Purchase Plan In May 2018, Pluralsight Inc.’s Board of Directors adopted the ESPP. The number of shares of Class A common stock available for issuance under the ESPP will be increased on the first day of each fiscal year equal to the lesser of: (i) 2,970,000 shares of Class A common stock, (ii) 1.5% of the outstanding shares of all classes of common stock of the Company on the last day of the immediately preceding fiscal year, or (iii) an amount determined by the plan administrator. As of June 30, 2020, the total number of shares available for issuance under the ESPP was 4,386,452. The ESPP generally provides for consecutive overlapping 24-month offering periods comprised of four six-month purchase periods. The offering periods are scheduled to start on the first trading day on or after May 31 and November 30 of each year. The ESPP permits participants to elect to purchase shares of Class A common stock through fixed contributions from eligible compensation paid during each purchase period during an offering period, provided that this fixed contribution amount will not exceed $12,500. A participant may purchase a maximum of 5,000 shares during each purchase period. Amounts deducted and accumulated by the participant will be used to purchase shares of Class A common stock at the end of each purchase period. The purchase price of the shares will be 85% of the lower of the fair market value of Class A common stock on the first trading day of each offering period or on the purchase date. If the fair market value of the common stock on any purchase date within an offering period is lower than the stock price as of the beginning of the offering period, the offering period will immediately reset after the purchase of shares on such purchase date and participants will automatically be re-enrolled in a new offering period. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of common stock. Participation ends automatically upon termination of employment. As of June 30, 2020, a total of 1,953,706 shares were issuable to employees based on contribution elections made under the ESPP. As of June 30, 2020, total unrecognized equity-based compensation costs was $17.5 million, which is expected to be recognized over a weighted-average period of 1.7 years. ESPP employee payroll contributions accrued at June 30, 2020 and December 31, 2019 totaled $1.5 million and $1.6 million, respectively, and are included within accrued expenses in the condensed consolidated balance sheets. Employee payroll contributions ultimately used to purchase shares under the ESPP will be reclassified to stockholders’ equity at the end of the purchase period. Incentive Unit Plan The Company granted incentive units of Pluralsight Holdings to certain employees and directors prior to its IPO pursuant to the Incentive Unit Plan (“2013 Plan”). In connection with the Reorganization Transactions and the IPO, the 2013 Plan was terminated and all outstanding incentive units were converted into LLC Units of Pluralsight Holdings. In addition, certain holders elected to exchange LLC Units for shares of Class A common stock of Pluralsight, Inc. Shares of Class A common stock and LLC Units issued as a result of the exchange or conversion of unvested incentive units remain subject to the same time-based vesting requirements that existed prior to the Reorganization Transactions, and as such the Company continues to record equity-based compensation expense for unvested awards. The activity of unvested LLC Units during the six months ended June 30, 2020 was as follows:
As of June 30, 2020, total unrecognized equity-based compensation related to all unvested LLC Units was $6.5 million, which is expected to be recognized over a weighted-average period of 1.0 year. The total fair value of Class A common shares and LLC Units vested during the six months ended June 30, 2020 was $10.0 million. Equity-Based Compensation Expense Equity-based compensation expense was classified as follows in the accompanying condensed consolidated statements of operations (in thousands):
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Income Taxes |
6 Months Ended |
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Jun. 30, 2020 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes Pluralsight, Inc. is the sole managing member of Pluralsight Holdings, which is treated as a partnership for U.S. federal and most applicable state and local income tax purposes. As a partnership, Pluralsight Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pluralsight Holdings is passed through to, and included in, the taxable income or loss of its members, including Pluralsight, Inc., on a pro rata basis, except as otherwise provided under Section 704 of the Internal Revenue Code. Pluralsight, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to its allocable share of any taxable income of Pluralsight Holdings. The Company is also subject to taxes in foreign jurisdictions. The tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that arise during the period. Each quarter, the Company updates its estimate of its annual effective tax rate, and if the estimated annual effective tax rate changes, the Company makes a cumulative adjustment in such period. The quarterly tax provision and estimate of the Company’s annual effective tax rate are subject to variation due to several factors including variability in pre-tax income (or loss), the mix of jurisdictions to which such income relates, changes in how the Company conducts business, and tax law developments. For the three months ended June 30, 2020 and 2019 the Company’s estimated effective tax rate was 1.2% and (0.5)%, respectively. For the six months ended June 30, 2020 and 2019 the Company’s estimated effective tax rate was 0.3% and (0.6)%, respectively. The variations between the Company’s estimated effective tax rate and the U.S. statutory rate are primarily due to the portion of the Company’s earnings (or loss) attributable to non-controlling interests and the domestic valuation allowance. In addition, a portion of the Company’s state valuation allowance was released as a result of the Company meeting the conditions to file a unitary tax return in certain state jurisdictions, which resulted in an income tax benefit during the three and six months ended June 30, 2020. The Company is subject to income tax in the U.S. as well as other tax jurisdictions in which the Company operates. The provision for income taxes consists primarily of income taxes and withholding taxes in foreign jurisdictions in which the Company conducts business. The Company’s U.S. operations have resulted in losses, and as such, the Company maintains a valuation allowance against substantially all its U.S. deferred tax assets. While the Company believes its current valuation allowance is appropriate, the Company assesses the need for an adjustment to the valuation allowance on a quarterly basis. The assessment is based on estimates of future sources of taxable income for the jurisdictions in which the Company operates and the periods over which deferred tax assets will be realizable. In the event the Company determines that it will be able to realize all or part of its net deferred tax assets in the future, all or part of the valuation allowance will be released in the period in which the Company makes such determination. The release of all or part of the valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which it is released. Tax Receivable Agreement On the date of the IPO, the Company entered into a Tax Receivable Agreement (“TRA”) with Continuing Members that provides for a payment to the Continuing Members of 85% of the amount of tax benefits, if any, that Pluralsight, Inc. realizes, or is deemed to realize as a result of redemptions or exchanges of LLC Units. During the six months ended June 30, 2020, certain Continuing Members exchanged 5,131,199 LLC Units for shares of Class A common stock. The Company has concluded that, based on applicable accounting standards, it is more-likely-than-not that its deferred tax assets subject to the TRA will not be realized; therefore, the Company has not recorded a TRA liability related to the tax savings it may realize from the utilization of deferred tax assets arising from the exchanges that have occurred through June 30, 2020. The total unrecorded TRA liability as of June 30, 2020 is approximately $295.3 million.
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Net Loss Per Share |
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| Net Loss Per Share | Net Loss Per Share The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):
Shares of Class B and Class C common stock do not share in the earnings or losses of Pluralsight and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B and Class C common stock under the two-class method has not been presented. During the three and six months ended June 30, 2020, the Company incurred net losses and, therefore, the effect of the Company’s potentially dilutive securities were not included in the calculation of diluted loss per share as the effect would be anti-dilutive. The following table contains outstanding share/unit totals with a potentially dilutive impact (in thousands):
The Notes will not have an impact on the Company’s diluted earnings per share until the average market share price of Class A common stock exceeds the conversion price of $58.50 per share, as the Company intends and has the ability to settle the principal amount of the Notes in cash upon conversion. The Company is required under the treasury stock method to compute the potentially dilutive shares of common stock related to the Notes for periods it reports net income. However, upon conversion, until the average market price of the Company’s common stock exceeds the cap price of $58.50 per share, exercise of the Capped Calls will mitigate dilution from the Notes from the conversion price up to the cap price. Capped Calls are excluded from the calculation of diluted earnings per share, as they would be antidilutive under the treasury stock method.
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Related Party Transactions |
6 Months Ended |
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Jun. 30, 2020 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Related Party Transactions The Company utilizes an aircraft owned by the Company’s Chief Executive Officer on an as-needed basis. The Company has agreed to reimburse the Chief Executive Officer for use of the private aircraft for business purposes at an hourly rate per flight hour. The reimbursement rate was approved by the Company’s Board of Directors based upon a review of comparable chartered aircraft rates. The Company accrued less than $0.1 million as of June 30, 2020 and approximately $0.3 million as of December 31, 2019 included within accrued expenses on the condensed consolidated balance sheets. A total of $0.5 million and $0.6 million has been paid under the arrangement during the six months ended June 30, 2020 and 2019, respectively. Tax Receivable Agreement On the date of the IPO, the Company entered into a TRA with Continuing Members that provides for a payment to the Continuing Members of 85% of the amount of tax benefits, if any, that Pluralsight, Inc. realizes, or is deemed to realize as a result of redemptions or exchanges of LLC Units. As discussed in Note 15—Income Taxes, no amounts were paid or payable to Continuing Members under the TRA as it is more-likely-than-not that the Company’s tax benefits obtained from exchanges subject to the TRA will not be realized.
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Summary of Significant Accounting Policies and Recent Accounting Pronouncements (Policies) |
6 Months Ended |
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Jun. 30, 2020 | |
| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and the applicable regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Therefore, these unaudited condensed consolidated financial statements should be read 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 Pluralsight, Inc.’s Annual Report on Form 10-K/A, as filed with the SEC on March 2, 2020 (“Annual Report”).
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| Consolidation | These unaudited condensed consolidated financial statements include the accounts of Pluralsight, Inc. and its directly and indirectly wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. As discussed in Note 1—Organization and Description of Business, Pluralsight, Inc. consolidates the financial results of Pluralsight Holdings as a Variable Interest Entity (“VIE”). The Company periodically evaluates entities for consolidation either through ownership of a majority voting interest, or through means other than a voting interest, in accordance with the VIE accounting model. Under the VIE accounting model, Pluralsight, Inc. is the primary beneficiary as it has the majority economic interest in Pluralsight Holdings, and, as the sole managing member, has decision making authority that significantly affects the economic performance of the entity, while the limited partners have no substantive kick-out or participating rights. The assets and liabilities of Pluralsight Holdings represent substantially all of the consolidated assets and liabilities of Pluralsight, Inc. with the exception of certain deferred taxes and liabilities under the Tax Receivable Agreement (“TRA”) as discussed in Note 15—Income Taxes and the obligations under the Company’s convertible senior notes discussed in Note 10—Convertible Senior Notes.
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| Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses for the reporting period. On an ongoing basis, the Company evaluates its estimates, including, but not limited to, those related to the determination of the fair value of equity awards, the fair value of the liability and equity components of the convertible senior notes, the fair value of identified assets and liabilities acquired in business combinations, the useful lives of property and equipment, content library and intangible assets, impairment of long-lived and intangible assets, including goodwill, provisions for doubtful accounts receivable, the standalone selling price (“SSP”) of performance obligations, the determination of the period of benefit for deferred contract acquisition costs, certain accrued expenses, including author fees, and the discount rate used in measuring lease liabilities. These estimates and assumptions are based on the Company’s historical results and management’s future expectations. Actual results could differ from those estimates.
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| Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of operations. The allowance for credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The ASU also amends the impairment model for available-for-sale debt securities and requires any credit losses on available-for-sale debt securities to be presented as an allowance rather than as a write-down, with changes presented through earnings. The Company adopted the standard effective January 1, 2020 using the modified retrospective approach. The effect of the adoption was not material to the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset. The Company adopted the standard prospectively effective January 1, 2020. As a result of the adoption, the Company capitalizes certain implementation costs that were previously expensed as incurred. These costs will be amortized to expense over the term of the hosting arrangement. The effect of adopting the standard was not material to the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2020. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740 and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The standard is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company early adopted the standard during the three months ended June 30, 2020. The effect of adopting the standard was not material to the Company’s condensed consolidated financial statements for the three and six months ended June 30, 2020. The standard removes the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and other comprehensive income, as a result the Company was not required to apply the incremental approach for intraperiod tax allocation during the three months ended June 30, 2020.
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| Fair Value Measurements | The Company measures and records certain financial assets at fair value on a recurring basis. Fair value is based on the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
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Revenue (Tables) |
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| Disaggregation of Revenue | Revenue by geographic region, based on the physical location of the customer, was as follows (dollars in thousands):
Revenue by type of customer, was as follows (dollars in thousands):
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| Summary of Deferred Contract Acquisition Costs Activity | The following table summarizes the activity of the deferred contract acquisition costs (in thousands):
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Cash Equivalents and Investments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Cash Equivalents, Short-term and Long-term Investments | Cash equivalents, restricted cash equivalents, and investments consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Investments Based on Stated Maturities | The amortized cost and fair value of the Company’s investments based on their stated maturities consisted of the following as of June 30, 2020 (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The fair value of the Company’s financial instruments was as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Prepaid and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands):
|
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| Schedule of Accrued Expenses | Accrued expenses consisted of the following (in thousands):
|
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Property and Equipment (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment | Property and equipment, net consisted of the following (in thousands):
|
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Acquisition of GitPrime, Inc. (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the acquisition date fair values of assets acquired and liabilities assumed at the date of acquisition (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Identifiable Intangible Assets Fair Value and Useful Lives | The useful lives, primarily based on the period of benefit to the Company, and fair values of the identifiable intangible assets at acquisition date were as follows:
|
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| Summary of Unaudited Pro Forma Information | The unaudited pro forma results have been prepared based on estimates and assumptions, which management believes are reasonable, however, the results are not necessarily indicative of the consolidated results of operations had the acquisition occurred on January 1, 2018, or of future results of operations (in thousands, except per share amounts):
|
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Intangible Assets (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Finite-Lived Intangible Assets | Intangible assets, net are summarized as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Indefinite-Lived Intangible Assets | Intangible assets, net are summarized as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Estimated Amortization Expense | Based on the recorded content library and intangible assets at June 30, 2020, estimated amortization expense is expected to be as follows (in thousands):
|
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Convertible Senior Notes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Convertible Senior Notes Liability and Equity Components, and Interest Expense Recognized | The net carrying value of the liability component of the Notes was as follows (in thousands):
The net carrying value of the equity component of the Notes was as follows (in thousands):
The interest expense recognized related to the Notes was as follows (in thousands):
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Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Components of Operating Lease Expense | The Company performed evaluations of its contracts and determined that each of its identified leases are operating leases. The components of operating lease expense were as follows:
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| Schedule of Maturities of Operating Lease Liabilities | As of June 30, 2020, the maturities of the Company’s operating lease liabilities were as follows (in thousands):
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Non-Controlling Interests (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ownership of the LLC Units | The ownership of the LLC Units is summarized as follows:
(1) Excludes 968,736 and 1,543,813 LLC Units still subject to time-based vesting requirements as of June 30, 2020 and December 31, 2019, respectively
|
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Equity-Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Compensation, Stock Options, Activity | The following table summarizes the stock option activity for the six months ended June 30, 2020:
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| Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The activity for RSUs of Pluralsight, Inc. and restricted share units of Pluralsight Holdings for the six months ended June 30, 2020 was as follows:
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| Schedule of Share-based Compensation, Performance Shares Award Activity | The activity of unvested LLC Units during the six months ended June 30, 2020 was as follows:
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| Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | Equity-based compensation expense was classified as follows in the accompanying condensed consolidated statements of operations (in thousands):
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Net Loss Per Share (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share amounts):
|
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| Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table contains outstanding share/unit totals with a potentially dilutive impact (in thousands):
|
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Organization and Description of Business (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 6 Months Ended | 12 Months Ended |
|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2020 |
Dec. 31, 2019 |
|
| Pluralsight Holdings | |||
| Subsidiary, Sale of Stock [Line Items] | |||
| Ownership interest | 100.00% | 100.00% | |
| Pluralsight Holdings | Continuing Members | |||
| Subsidiary, Sale of Stock [Line Items] | |||
| Ownership interest | 22.00% | 25.70% | |
| Pluralsight Holdings | Pluralsight, Inc. | |||
| Subsidiary, Sale of Stock [Line Items] | |||
| Ownership interest | 78.00% | 74.30% | |
| Secondary Offering | |||
| Subsidiary, Sale of Stock [Line Items] | |||
| Number of shares sold (in shares) | 11,711,009 | ||
| Stock price (in dollars per share) | $ 19.50 | $ 19.50 | |
| Payment for stock offering costs | $ 1.3 |
Revenue - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
|---|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Disaggregation of Revenue [Line Items] | |||||
| Contract assets | $ 1.1 | $ 1.1 | $ 0.8 | ||
| Revenue recognized | $ 84.0 | $ 65.4 | $ 142.1 | $ 104.9 | |
| Product Concentration Risk | Revenue | Subscription Accounts | |||||
| Disaggregation of Revenue [Line Items] | |||||
| Revenue, percent | 96.00% | 97.00% | 96.00% | 98.00% | |
Revenue - Remaining Performance Obligations (Details) $ in Millions |
Jun. 30, 2020
USD ($)
|
|---|---|
| Revenue from Contract with Customer [Abstract] | |
| Remaining performance obligation | $ 303.4 |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
| Percent of remaining performance obligations to be recognized | 75.00% |
| Period for satisfaction of remaining performance obligation | 12 months |
Revenue - Summary of Deferred Contract Acquisition Costs Activity (Details) - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Contract with Customer, Asset and Liability [Roll Forward] | ||
| Beginning balance | $ 24,313 | $ 20,212 |
| Capitalization of contract acquisition costs | 13,363 | 11,430 |
| Amortization of deferred contract acquisition costs | (12,767) | (11,311) |
| Ending balance | $ 24,909 | $ 20,331 |
Cash Equivalents and Investments - Schedule of Investments by Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Amortized Cost | ||
| Amortized Cost | $ 524,541 | $ 533,153 |
| Fair Value | ||
| Fair Value | 526,263 | $ 533,486 |
| Investments | ||
| Amortized Cost | ||
| Due within one year | 317,768 | |
| Due between one and two years | 121,217 | |
| Amortized Cost | 438,985 | |
| Fair Value | ||
| Due within one year | 318,483 | |
| Due between one and two years | 122,224 | |
| Fair Value | $ 440,707 |
Cash Equivalents and Investments - Narrative (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2020
USD ($)
| |
| Investments, Debt and Equity Securities [Abstract] | |
| Other-than temporary impairments | $ 0 |
Fair Value Measurements - Narrative (Details) - USD ($) |
Jun. 30, 2020 |
Mar. 31, 2019 |
|---|---|---|
| Level 2 | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Fair value of convertible senior notes | $ 513,400,000 | |
| Senior Notes Due In 2024 | Convertible Senior Notes | ||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
| Aggregate principal | $ 593,500,000 | $ 633,500,000 |
Balance Sheet Components - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Prepaid expenses | $ 12,584 | $ 11,469 |
| Other current assets | 2,180 | 2,705 |
| Prepaid expenses and other current assets | $ 14,764 | $ 14,174 |
Balance Sheet Components - Accrued Expenses (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
| Accrued compensation | $ 18,776 | $ 23,310 |
| Accrued income and other taxes payable | 7,010 | 7,116 |
| Accrued other current liabilities | 13,164 | 10,277 |
| Accrued expenses | $ 38,950 | $ 40,703 |
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | $ 90,895 | $ 54,239 |
| Less: Accumulated depreciation | (30,107) | (31,343) |
| Property and equipment, net | 60,788 | 22,896 |
| Computer equipment | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 9,263 | 9,047 |
| Software | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 546 | 2,047 |
| Capitalized internal-use software costs | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 22,619 | 23,021 |
| Furniture and fixtures | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 5,922 | 5,826 |
| Leasehold improvements | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | 9,367 | 9,871 |
| Construction in progress | ||
| Property, Plant and Equipment [Line Items] | ||
| Total property and equipment | $ 43,178 | $ 4,427 |
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Property, Plant and Equipment [Abstract] | ||||
| Depreciation expense | $ 3,200 | $ 2,300 | $ 5,868 | $ 4,579 |
Acquisition of GitPrime, Inc. - Narrative (Details) - GitPrime, Inc. - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
May 09, 2019 |
Dec. 31, 2019 |
|
| Business Acquisition [Line Items] | ||
| Cash consideration | $ 163.8 | |
| Acquisition costs | $ 0.8 |
Acquisition of GitPrime, Inc. - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
May 09, 2019 |
|---|---|---|---|
| Business Acquisition [Line Items] | |||
| Goodwill | $ 262,532 | $ 262,532 | |
| GitPrime, Inc. | |||
| Business Acquisition [Line Items] | |||
| Cash and cash equivalents | $ 5,290 | ||
| Accounts receivable | 1,798 | ||
| Other assets acquired | 207 | ||
| Property and equipment | 223 | ||
| Right-of-use assets | 549 | ||
| Goodwill | 139,413 | ||
| Intangible assets | 24,800 | ||
| Lease liabilities | (549) | ||
| Deferred revenue | (1,367) | ||
| Other liabilities assumed | (1,303) | ||
| Total fair value of net assets acquired | $ 169,061 |
Acquisition of GitPrime, Inc. - Schedule of Intangible Assets Acquired (Details) - GitPrime, Inc. $ in Thousands |
May 09, 2019
USD ($)
|
|---|---|
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Fair Value of Intangible Assets Acquired | $ 24,800 |
| Technology | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Fair Value of Intangible Assets Acquired | $ 24,000 |
| Useful Lives | 5 years |
| Customer relationships | |
| Acquired Finite-Lived Intangible Assets [Line Items] | |
| Fair Value of Intangible Assets Acquired | $ 800 |
| Useful Lives | 4 years |
Acquisition of GitPrime, Inc. - Summary of Unaudited Pro Forma Information (Details) - GitPrime, Inc. - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended |
|---|---|---|
Jun. 30, 2019 |
Jun. 30, 2019 |
|
| Business Acquisition [Line Items] | ||
| Revenue | $ 77,100 | $ 149,369 |
| Net loss | $ (42,592) | $ (80,056) |
| Net loss per share, basic and diluted (in dollars per share) | $ (0.31) | $ (0.60) |
Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Other Intangible Assets | ||||
| Finite-Lived Intangible Assets [Line Items] | ||||
| Amortization of acquired intangible assets | $ 1.4 | $ 0.9 | $ 2.9 | $ 1.6 |
| Course creation costs | ||||
| Finite-Lived Intangible Assets [Line Items] | ||||
| Amortization of acquired intangible assets | $ 0.8 | $ 0.6 | $ 1.6 | $ 1.2 |
Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| 2020 (remaining six months) | $ 4,426 |
| 2021 | 8,502 |
| 2022 | 7,640 |
| 2023 | 6,978 |
| 2024 | 3,015 |
| 2025 | 204 |
| Net Book Value | $ 30,765 |
Leases - Components of Operating Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Leases [Abstract] | ||||
| Operating lease expense | $ 2,267 | $ 1,506 | $ 4,067 | $ 2,966 |
| Variable lease expense | 142 | 84 | 315 | 144 |
| Short-term lease expense | 187 | 69 | 458 | 86 |
| Total lease expense | $ 2,596 | $ 1,659 | $ 4,840 | $ 3,196 |
Leases - Schedule of Maturities of Operating Lease Liabilities (Details) $ in Thousands |
Jun. 30, 2020
USD ($)
|
|---|---|
| Leases [Abstract] | |
| 2020 (remaining six months) | $ 3,177 |
| 2021 | 11,808 |
| 2022 | 11,776 |
| 2023 | 11,305 |
| 2024 | 10,574 |
| Lessee, Operating Lease, Liability, To Be Paid, After Year Four | 100,176 |
| Total lease payments | 148,816 |
| Less: Imputed interest | (64,724) |
| Lease liabilities | $ 84,092 |
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands |
Jun. 30, 2020 |
Dec. 31, 2019 |
|---|---|---|
| Loss Contingencies [Line Items] | ||
| Restricted cash and cash equivalents | $ 21,622 | $ 28,916 |
| Letter of credit | ||
| Loss Contingencies [Line Items] | ||
| Letters of credit outstanding | 2,100 | 2,100 |
| Restricted cash and cash equivalents | $ 1,300 | $ 1,300 |
Non-Controlling Interests (Details) - shares |
6 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2020 |
Dec. 31, 2019 |
|
| Pluralsight Holdings | ||
| Noncontrolling Interest [Line Items] | ||
| Ownership interest | 100.00% | 100.00% |
| Units outstanding (in shares) | 143,464,450 | 140,020,075 |
| Pluralsight Holdings | Pluralsight, Inc. | ||
| Noncontrolling Interest [Line Items] | ||
| Ownership interest | 78.00% | 74.30% |
| Units outstanding (in shares) | 111,875,235 | 104,083,271 |
| Continuing Members | Pluralsight Holdings | ||
| Noncontrolling Interest [Line Items] | ||
| Ownership interest | 22.00% | 25.70% |
| Units outstanding (in shares) | 31,589,215 | 35,936,804 |
| LLC Units | ||
| Noncontrolling Interest [Line Items] | ||
| Units still subject to time-based vesting requirements (in shares) | 968,736 | 1,543,813 |
| LLC Units | Pluralsight Holdings | ||
| Noncontrolling Interest [Line Items] | ||
| Units still subject to time-based vesting requirements (in shares) | 968,736 | 1,543,813 |
Equity-Based Compensation - Schedule of Equity-Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation | $ 26,425 | $ 22,732 | $ 52,003 | $ 43,000 |
| Cost of revenue | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation | 296 | 133 | 566 | 217 |
| Sales and marketing | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation | 10,878 | 7,952 | 20,400 | 14,228 |
| Technology and content | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation | 6,884 | 5,137 | 13,220 | 8,847 |
| General and administrative | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Equity-based compensation | $ 8,367 | $ 9,510 | $ 17,817 | $ 19,708 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Income Tax Contingency [Line Items] | ||||
| Effective tax rate | 1.20% | (0.50%) | 0.30% | (0.60%) |
| Total unrecorded TRA liability | $ 295.3 | $ 295.3 | ||
| Common Stock | Class A Common Stock | ||||
| Income Tax Contingency [Line Items] | ||||
| Effect of exchanges of LLC Units (in shares) | 4,929,959,000 | 4,469,843,000 | 5,131,199,000 | 33,419,553,000 |
Net Loss Per Share - Calculation of Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Jun. 30, 2020 |
Jun. 30, 2019 |
|
| Numerator: | ||||
| Net loss | $ (39,730) | $ (40,764) | $ (87,243) | $ (74,648) |
| Less: Net loss attributable to non-controlling interests | (9,801) | (11,637) | (21,995) | (26,446) |
| Net loss attributable to Pluralsight, Inc. | $ (29,929) | $ (29,127) | $ (65,248) | $ (48,202) |
| Denominator: | ||||
| Weighted-average shares of Class A common stock outstanding, basic and diluted (in shares) | 107,153 | 96,708 | 105,899 | 86,827 |
| Net loss per share, basic and diluted (in dollars per share) | $ (0.28) | $ (0.30) | $ (0.62) | $ (0.56) |
Net Loss Per Share - Narrative (Details) - $ / shares |
Jun. 30, 2020 |
Mar. 31, 2019 |
|---|---|---|
| Senior Notes Due In 2024 | Convertible Senior Notes | ||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
| Initial capped call price (in dollars per share) | $ 58.50 | $ 58.50 |
Related Party Transactions - Narrative (Details) - Chief Executive Officer - USD ($) $ in Millions |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2020 |
Jun. 30, 2019 |
Dec. 31, 2019 |
|
| Related Party Transaction [Line Items] | |||
| Due to related parties | $ 0.1 | $ 0.3 | |
| Amount paid under the arrangement | $ 0.5 | $ 0.6 | |
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