A recent Research and Markets report forecasts that the global e-learning market will grow to $325 billion by the year 2025. Besides individual consumers who are flocking to the digital learning resources during the pandemic, organizations are also relying on these technologies to help upskill their globally dispersed employee base. Cedar Valley, Utah-based Pluralsight (Nasdaq: PS) is an e-learning player that recently reported a strong second quarter.
For the quarter, Pluralsight’s revenues grew 25% to $94.8 million, ahead of the Street’s forecast of $88 million. Billings for the quarter grew 11% over the year to $89 million. Net loss was $0.28 a share compared with a loss of $0.30 a share a year ago. On an adjusted basis, loss was $0.02 per share, significantly better than the Street’s estimate of a loss of $0.12 per share.
Pluralsight expects to end the current year with revenues of $375-$390 million and an adjusted net loss of $0.19-$0.27 per share. It expects to end the third quarter with revenues of $95-$96 million and a net loss of $0.05-$0.06 per share. The market was looking for revenues of $375.21 million with a loss of $0.38 per share for the year and revenues of $93.52 million with a loss of $0.10 per share for the quarter.
Pluralsight’s Product Expansion
Earlier this quarter, Pluralsight announced a new tool designed to help engineering teams proactively overcome issues in the software development process and identify improvements to deliver greater value and improve time-to-market. Pluralsight Flow’s Delivery Module is the first tool of its kind that uses data from Jira to measure human interactions that occur during the software development process, so that teams can analyze their progress against goals and identify opportunities to optimize collaboration and workflow.
The analytics dashboard on the module aggregates metrics based on activity levels, ticket movement, and flow efficiency from recent engineering cycles, thus helping engineering teams identify opportunities to improve processes. It also hosts a ticket log that shows metrics like cycle time, backflow rate, queue time, and activity level against tickets so that high-activity or stagnant ticket issues can be identified and addressed faster.
Pluralsight announced several enhancements for its Skills platform. The updates include the introduction of Priorities – a tool designed to align skills development strategy with business objectives; and cloud labs – a hands-on learning experience designed to accelerate cloud skills development. Both Priorities and cloud labs are available to enterprises and will help their customers meet digital transformation initiatives and manage the demands of an increasingly distributed workforce.
Earlier this month, Pluralsight announced the acquisition of Louisville, Colorado-based DevelopIntelligence, a provider of strategic skills consulting and virtual instructor-led training for IT, software development, and engineering teams. DevelopIntelligence designs, delivers, and manages technology learning programs for developers and engineers. Pluralsight plans to leverage DevelopIntelligence to deliver an all-in-one solution to enterprise customers to help organizations adapt to the demands of upskilling a globally distributed workforce. Terms of the acquisition were not disclosed. DevelopIntelligence had raised $250,000 in a seed round back in 2003.
Its stock is trading at $18.04 with a market capitalization of $2.5 billion. It had peaked to a 52-week high of $22.69 in July. The stock hit a 52-week low of $6.59 in March. The stock had listed in 2018 at $15 apiece raising $310 million at a valuation of $2 billion.