Pluralsight (NASDAQ: PS) reported Q2 EPS of ($0.02), $0.10 better than the analyst estimate of ($0.12). Revenue for the quarter came in at $94.8 million versus the consensus estimate of $88.24 million.

Second Quarter Financial Highlights

• Billings - Q2 2020 billings were $89.0 million, an increase of 11% period over period. Q2 2020 billings from business customers were $77.7 million, an increase of 12% period over period.
• Revenue - Q2 2020 revenue was $94.8 million, an increase of 25% period over period.
• Gross margin - Q2 2020 gross margin was 79%, compared to 77% in Q2 2019. Q2 2020 non-GAAP gross margin was 81%, compared to 78% in Q2 2019.
• Net loss per share - GAAP net loss per share for Q2 2020 was $0.28, compared to $0.30 in Q2 2019. Adjusted pro forma net loss per share for Q2 2020 was $0.02, compared to $0.06 in Q2 2019.
• Cash flows - Cash used in operations was $9.3 million for Q2 2020, compared to $7.2 million in Q2 2019. Free cash flow was negative $18.0 million for Q2 2020, compared to negative $11.1 million in Q2 2019.

"Our commitment to our customers and each other has never been stronger despite these extraordinary circumstances. I’m proud to see this commitment reflected in our financial performance for the quarter, and I’m confident that our platform will continue to help companies and individuals adapt to the changing remote work environments around the globe," said Aaron Skonnard, co-founder and CEO of Pluralsight. “This need, coupled with our commitment to our customers and our world-class, highly differentiated product offerings allowed us to excel in the current environment."

GUIDANCE:

Pluralsight sees Q3 2020 EPS of ($0.06)-($0.05), versus the consensus of ($0.10). Pluralsight sees Q3 2020 revenue of $95-96 million, versus the consensus of $93.52 million.

Pluralsight sees FY2020 EPS of ($0.27)-($0.19), versus the consensus of ($0.38). Pluralsight sees FY2020 revenue of $375-390 million, versus the consensus of $375.21 million.

The following forward-looking statements reflect Pluralsight's expectations as of July 29, 2020.

Third Quarter 2020 Guidance

• Revenue is expected to be in the range of $95.0 million to $96.0 million.
• Adjusted pro forma net loss per share is expected to be in the range of $0.05 to $0.06, assuming weighted-average shares outstanding of approximately 144 million.

Full Year 2020 Guidance

• Revenue is expected to be in the range of $375.0 million to $390.0 million.
• Adjusted pro forma net loss per share is expected to be in the range of $0.19 to $0.27, assuming weighted-average shares outstanding of approximately 143.5 million.

Guidance for non-GAAP financial measures excludes equity-based compensation, amortization of acquired intangible assets, employer payroll taxes on employee stock transactions, amortization of debt discount and issuance costs, and, as applicable, other special items, which may be significant. Pluralsight has not reconciled its expectations as to adjusted pro forma net loss per share to their most directly comparable GAAP measures because certain items cannot be reasonably predicted. Accordingly, a reconciliation for expectations of adjusted pro forma net loss per share is not available without unreasonable effort.

Pluralsight’s guidance for the third quarter and full year 2020 reflects its expectations for the periods after taking into account the impact of COVID-19. However, the crisis that this pandemic has created is very fluid, and the situation is constantly evolving. As such, Pluralsight’s actual results may differ materially from such guidance based on a variety of factors, including Pluralsight’s ability to execute its business during this crisis, the impact of the crisis on Pluralsight’s suppliers, customers and partners, governmental action taken in response to COVID-19, and other factors.

For earnings history and earnings-related data on Pluralsight (PS) click here.