Have Investors Overreacted to Pluralsight’s Q2?

By Chris Lange Updated Jan 11, 7:15AM EST · Published Aug 1, 11:25AM EDT

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Have Investors Overreacted to Pluralsight’s Q2? — © seenad / iStock

Pluralsight Inc. (NASDAQ: PS) shares tumbled after it reported its most recent quarterly results before the markets opened on Thursday. The company posted a net loss of $0.06 per share and $75.9 million in revenue, which was better than the consensus estimates calling for a net loss of $0.14 per share and $73.88 million in revenue. The second quarter of last year reportedly had a net loss of $0.21 per share and $53.57 million in revenue.

During the latest quarter, billings increased 23% year over year to $80.6 million. Billings from business customers increased 27% to $69.1 million. At the same time, gross margin was 78%, compared to 76% in the same period last year.

Looking ahead to the third quarter, the company expects to see a pro forma net loss per share in the range of $0.15 to $0.13 and revenue between $79.5 million and $80.0 million. The consensus estimates are a net loss of $0.11 per share and $82.34 million in revenue for the quarter.

As for the full year, Pluralsight expects a net loss per share in the range of $0.42 to $0.38 and revenue of $312 million to $318 million. Consensus estimates call for a net loss of $0.40 per share and $315.92 million in revenue.

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Aaron Skonnard, co-founder and CEO of Pluralsight, commented:

Our Q2 revenue and Non-GAAP EPS were both above guidance with revenue growing 42% and Non-GAAP EPS improving by 71%. Our continued penetration with our top customers, our best in class net revenue retention and our early wins with GitPrime give us a strong base for continued success, and I’m excited about the insights and capabilities our platform and content provide to technology leaders.

Shares of Pluralsight traded down 35% Thursday to $19.90, in a 52-week range of $17.88 to $38.37. The consensus price target is $41.10.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.