Artificial Intelligence
Pluralsight Announces Third Quarter 2020 Results
SILICON SLOPES, Utah, Nov. 05, 2020 (GLOBE NEWSWIRE) — Pluralsight, Inc. (NASDAQ: PS), the technology workforce development company, today announced financial results for the third quarter ended September 30, 2020.
“We’re proud of the progress we made in the quarter while still in the midst of the COVID-19 pandemic. We handily beat our revenue, earnings, and cash expectations in Q3 and have raised our annual expectations for each.” said Aaron Skonnard, co-founder and CEO of Pluralsight. “Q3 billings came in lighter than we expected, but we had strong participation and enthusiasm at our PS LIVE customer event in October. With the pipeline generated from PS LIVE and our new products and capabilities, we remain confident in our outlook.”
Third Quarter Financial Highlights
- Billings – Q3 2020 billings were $100.0 million, an increase of 9% period over period. Q3 2020 billings from business customers were $88.6 million, an increase of 10% period over period.
- Revenue – Q3 2020 revenue was $99.5 million, an increase of 20% period over period.
- Gross margin – Q3 2020 gross margin was 79%, compared to 78% in Q3 2019. Q3 2020 non-GAAP gross margin was 81%, compared to 80% in Q3 2019.
- Net loss per share – GAAP net loss per share for Q3 2020 was $0.24, compared to $0.32 in Q3 2019. Adjusted pro forma net loss per share for Q3 2020 was $0.00, compared to $0.08 in Q3 2019.
- Cash flows – Cash used in operations was $2.4 million for Q3 2020, compared to $2.2 million in Q3 2019. Free cash flow was negative $14.9 million for Q3 2020, compared to negative $6.6 million in Q3 2019.
For information regarding the non-GAAP financial measures discussed in this press release, please see the section titled “Non-GAAP Financial Measures.” Reconciliations between GAAP and non-GAAP financial measures are provided in the tables of this press release.
Financial Outlook
The following forward-looking statements reflect Pluralsight’s expectations as of November 5, 2020.
Full Year 2020 Guidance
- Revenue is expected to be in the range of $387.0 million to $390.0 million.
- Adjusted pro forma net loss per share is expected to be in the range of $0.12 to $0.14, 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 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.
Conference Call Information
Pluralsight will host a conference call for analysts and investors to discuss its third quarter 2020 results and outlook for the full year 2020, today at 2:30 p.m. Mountain Time (4:30 p.m. Eastern Time).
A live audio webcast of the conference call will also be accessible from the Pluralsight website at investors.pluralsight.com. A telephonic replay of the call will be available three hours after the call, will run for seven days, and may be accessed by dialing (855) 859-2056 or (404) 537-3406 and entering the passcode 3430067.
About Pluralsight
Pluralsight is the leading technology skills and engineering management platform. Trusted by forward-thinking companies of every size in every industry, Pluralsight helps individuals and businesses transform with technology through its Skills and Flow products. Skills helps build technology skills at scale with expert-authored courses on today’s most important technologies, including cloud, artificial intelligence, machine learning, data science, and security, among others. Skills also offers analytics and Skill IQ and Role IQ assessments. Flow complements Skills by providing visibility and analytics into software development workflows to accelerate the delivery of products and services.
Pluralsight and the Pluralsight logo are trademarks of Pluralsight, LLC in the United States and in jurisdictions throughout the world.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws that involve risks and uncertainties, including the quotations of management and statements regarding our future financial and operating performance, and our financial outlook for the full year 2020. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our ability to attract and retain customers; our ability to expand our course library and develop new platform features; the demand for, and market acceptance of our platform; competition; our ability to improve sales management and execution; our expectations of the potential impact the COVID-19 pandemic may have on our business; and other market, political, economic, and business conditions.
Additional risks and uncertainties that could affect our financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K/A filed with the SEC on March 2, 2020 and in our quarterly report on Form 10-Q filed with the SEC on November 5, 2020, which is available on our website at investors.pluralsight.com and on the SEC’s website at www.sec.gov. Additional information will also be set forth in other filings that we make with the SEC from time to time. All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law.
Key Business Metrics
Billings. Billings represents total revenue plus the change in deferred revenue in the period, as presented in our condensed consolidated statements of cash flows, less the change in contract assets and unbilled accounts receivable in the period. Billings in any particular period represents amounts invoiced to customers and reflects subscription renewals and upsells to existing customers plus sales to new customers. We use billings to measure our ability to sell subscriptions to our platform to both new and existing customers. We use billings from business customers and our percentage of billings from business customers to measure and monitor our ability to sell subscriptions to our platform to business customers.
Non-GAAP Financial Measures
Pluralsight has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (GAAP). Pluralsight uses the non-GAAP financial measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, adjusted pro forma net loss, adjusted pro forma net loss per share, and free cash flow in analyzing its financial results and believes that the use of these metrics is useful to investors as an additional tool to evaluate ongoing operating results and trends and in comparing Pluralsight’s financial results with other companies in its industry, many of which present similar non-GAAP financial measures.
The presentation of these non-GAAP financial measures is not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP. A reconciliation of our historical non-GAAP financial measures to their most directly comparable GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
Non-GAAP gross profit. We define non-GAAP gross profit as gross profit plus equity-based compensation, amortization of acquired intangible assets, and employer payroll taxes on employee stock transactions.
Non-GAAP gross margin. We define non-GAAP gross margin as non-GAAP gross profit divided by our revenue.
Non-GAAP operating expenses. We define non-GAAP operating expenses as operating expenses less equity-based compensation, amortization of acquired intangible assets, and employer payroll taxes on employee stock transactions, and, as applicable, other special items.
Non-GAAP operating loss. We define non-GAAP operating loss as loss from operations plus equity-based compensation, amortization of acquired intangible assets, employer payroll taxes on employee stock transactions, and, as applicable, other special items.
Adjusted pro forma net loss and adjusted pro forma net loss per share. We define adjusted pro forma net loss as net loss attributable to Pluralsight, Inc. adjusted for the reallocation of loss attributable to non-controlling interests from the assumed exchange of LLC Units of Pluralsight Holdings for newly-issued shares of Class A common stock of Pluralsight, Inc. and further adjusted for 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. We define adjusted pro forma net loss per share as adjusted pro forma net loss divided by the weighted-average shares of Class A common stock outstanding, assuming the full exchange of all outstanding LLC Units of Pluralsight Holdings for newly-issued shares of Class A common stock of Pluralsight, Inc.
Free cash flow. We define free cash flow as cash (used in) provided by operating activities less purchases of property and equipment and purchases of our content library.
PLURALSIGHT, INC.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue | $ | 99,465 | $ | 82,620 | $ | 286,876 | $ | 228,099 | ||||||||
Cost of revenue(1)(2) | 20,426 | 17,829 | 59,151 | 52,344 | ||||||||||||
Gross profit | 79,039 | 64,791 | 227,725 | 175,755 | ||||||||||||
Operating expenses(1)(2): | ||||||||||||||||
Sales and marketing | 57,206 | 55,797 | 177,380 | 150,014 | ||||||||||||
Technology and content | 29,345 | 27,847 | 89,003 | 72,937 | ||||||||||||
General and administrative | 20,366 | 20,844 | 66,733 | 63,610 | ||||||||||||
Total operating expenses | 106,917 | 104,488 | 333,116 | 286,561 | ||||||||||||
Loss from operations | (27,878 | ) | (39,697 | ) | (105,391 | ) | (110,806 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (7,409 | ) | (7,412 | ) | (21,799 | ) | (16,436 | ) | ||||||||
Loss on debt extinguishment | — | (950 | ) | — | (950 | ) | ||||||||||
Other income, net | 1,992 | 3,001 | 6,429 | 8,783 | ||||||||||||
Loss before income taxes | (33,295 | ) | (45,058 | ) | (120,761 | ) | (119,409 | ) | ||||||||
Income tax expense | (476 | ) | (404 | ) | (253 | ) | (701 | ) | ||||||||
Net loss | $ | (33,771 | ) | $ | (45,462 | ) | $ | (121,014 | ) | $ | (120,110 | ) | ||||
Less: Net loss attributable to non-controlling interests | (6,410 | ) | (12,983 | ) | (28,405 | ) | (39,429 | ) | ||||||||
Net loss attributable to Pluralsight, Inc. | $ | (27,361 | ) | $ | (32,479 | ) | $ | (92,609 | ) | $ | (80,681 | ) | ||||
Net loss per share, basic and diluted | $ | (0.24 | ) | $ | (0.32 | ) | $ | (0.85 | ) | $ | (0.88 | ) | ||||
Weighted-average shares of Class A common stock used in computing basic and diluted net loss per share | 115,196 | 101,407 | 109,009 | 91,741 |
(1) Includes equity-based compensation as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cost of revenue | $ | 312 | $ | 138 | $ | 878 | $ | 355 | ||||||||
Sales and marketing | 10,908 | 8,739 | 31,308 | 22,967 | ||||||||||||
Technology and content | 6,361 | 6,666 | 19,581 | 15,513 | ||||||||||||
General and administrative | 6,633 | 9,114 | 24,450 | 28,822 | ||||||||||||
Total equity-based compensation | $ | 24,214 | $ | 24,657 | $ | 76,217 | $ | 67,657 |
(2) Includes amortization of acquired intangible assets as follows:
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Cost of revenue | $ | 1,208 | $ | 1,209 | $ | 3,626 | $ | 2,436 | ||||||||
Sales and marketing | 50 | 50 | 150 | 79 | ||||||||||||
Technology and content | 122 | 176 | 459 | 529 | ||||||||||||
Total amortization of acquired intangible assets | $ | 1,380 | $ | 1,435 | $ | 4,235 | $ | 3,044 |
PLURALSIGHT, INC.
Key Business Metrics and Non-GAAP Financial Measures
(dollars in thousands)
(unaudited)
Key Business Metrics
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Billings | $ | 100,022 | $ | 92,123 | $ | 279,334 | $ | 250,603 | ||||||||
Billings from business customers | $ | 88,599 | $ | 80,707 | $ | 246,766 | $ | 216,967 | ||||||||
% of billings from business customers | 89 | % | 88 | % | 88 | % | 87 | % |
Non-GAAP Financial Measures
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Reconciliation of gross profit to non-GAAP gross profit: | ||||||||||||||||
Gross profit | $ | 79,039 | $ | 64,791 | $ | 227,725 | $ | 175,755 | ||||||||
Equity-based compensation | 312 | 138 | 878 | 355 | ||||||||||||
Amortization of acquired intangible assets | 1,208 | 1,209 | 3,626 | 2,436 | ||||||||||||
Employer payroll taxes on employee stock transactions | 10 | 2 | 42 | 18 | ||||||||||||
Non-GAAP gross profit | $ | 80,569 | $ | 66,140 | $ | 232,271 | $ | 178,564 | ||||||||
Gross margin | 79 | % | 78 | % | 79 | % | 77 | % | ||||||||
Non-GAAP gross margin | 81 | % | 80 | % | 81 | % | 78 | % |
PLURALSIGHT, INC.
Key Business Metrics and Non-GAAP Financial Measures (cont.)
(dollars in thousands)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Reconciliation of operating expenses to non-GAAP operating expenses: | ||||||||||||||||
Sales and marketing | $ | 57,206 | $ | 55,797 | $ | 177,380 | $ | 150,014 | ||||||||
Less: Equity-based compensation | (10,908 | ) | (8,739 | ) | (31,308 | ) | (22,967 | ) | ||||||||
Less: Amortization of acquired intangible assets | (50 | ) | (50 | ) | (150 | ) | (79 | ) | ||||||||
Less: Employer payroll taxes on employee stock transactions | (161 | ) | (71 | ) | (982 | ) | (1,212 | ) | ||||||||
Non-GAAP sales and marketing | $ | 46,087 | $ | 46,937 | $ | 144,940 | $ | 125,756 | ||||||||
Sales and marketing as a percentage of revenue | 58 | % | 68 | % | 62 | % | 66 | % | ||||||||
Non-GAAP sales and marketing as a percentage of revenue | 46 | % | 57 | % | 51 | % | 55 | % | ||||||||
Technology and content | $ | 29,345 | $ | 27,847 | $ | 89,003 | $ | 72,937 | ||||||||
Less: Equity-based compensation | (6,361 | ) | (6,666 | ) | (19,581 | ) | (15,513 | ) | ||||||||
Less: Amortization of acquired intangible assets | (122 | ) | (176 | ) | (459 | ) | (529 | ) | ||||||||
Less: Employer payroll taxes on employee stock transactions | (192 | ) | (65 | ) | (1,044 | ) | (979 | ) | ||||||||
Non-GAAP technology and content | $ | 22,670 | $ | 20,940 | $ | 67,919 | $ | 55,916 | ||||||||
Technology and content as a percentage of revenue | 30 | % | 34 | % | 31 | % | 32 | % | ||||||||
Non-GAAP technology and content as a percentage of revenue | 23 | % | 25 | % | 24 | % | 25 | % | ||||||||
General and administrative | $ | 20,366 | $ | 20,844 | $ | 66,733 | $ | 63,610 | ||||||||
Less: Equity-based compensation | (6,633 | ) | (9,114 | ) | (24,450 | ) | (28,822 | ) | ||||||||
Less: Employer payroll taxes on employee stock transactions | (182 | ) | (195 | ) | (852 | ) | (897 | ) | ||||||||
Less: Secondary offering costs | — | — | (1,260 | ) | (918 | ) | ||||||||||
Less: Acquisition-related costs | (341 | ) | — | (341 | ) | (835 | ) | |||||||||
Non-GAAP general and administrative | $ | 13,210 | $ | 11,535 | $ | 39,830 | $ | 32,138 | ||||||||
General and administrative as a percentage of revenue | 20 | % | 25 | % | 23 | % | 28 | % | ||||||||
Non-GAAP general and administrative as a percentage of revenue | 13 | % | 14 | % | 14 | % | 14 | % | ||||||||
Reconciliation of loss from operations to non-GAAP operating loss: | ||||||||||||||||
Loss from operations | $ | (27,878 | ) | $ | (39,697 | ) | $ | (105,391 | ) | $ | (110,806 | ) | ||||
Equity-based compensation | 24,214 | 24,657 | 76,217 | 67,657 | ||||||||||||
Amortization of acquired intangible assets | 1,380 | 1,435 | 4,235 | 3,044 | ||||||||||||
Employer payroll taxes on employee stock transactions | 545 | 333 | 2,920 | 3,106 | ||||||||||||
Secondary offering costs | — | — | 1,260 | 918 | ||||||||||||
Acquisition-related costs | 341 | — | 341 | 835 | ||||||||||||
Non-GAAP operating loss | $ | (1,398 | ) | $ | (13,272 | ) | $ | (20,418 | ) | $ | (35,246 | ) |
PLURALSIGHT, INC.
Key Business Metrics and Non-GAAP Financial Measures (cont.)
(in thousands, except per share amounts)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Adjusted pro forma net loss per share | ||||||||||||||||
Numerator: | ||||||||||||||||
Net loss attributable to Pluralsight, Inc. | $ | (27,361 | ) | $ | (32,479 | ) | $ | (92,609 | ) | $ | (80,681 | ) | ||||
Net loss attributable to non-controlling interests | (6,410 | ) | (12,983 | ) | (28,405 | ) | (39,429 | ) | ||||||||
Equity-based compensation | 24,214 | 24,657 | 76,217 | 67,657 | ||||||||||||
Amortization of acquired intangibles | 1,380 | 1,435 | 4,235 | 3,044 | ||||||||||||
Employer payroll taxes on employee stock transactions | 545 | 333 | 2,920 | 3,106 | ||||||||||||
Secondary offering costs | — | — | 1,260 | 918 | ||||||||||||
Acquisition-related costs | 341 | — | 341 | 835 | ||||||||||||
Amortization of debt discount and issuance costs | 6,853 | 6,826 | 20,128 | 15,120 | ||||||||||||
Loss on debt extinguishment | — | 950 | — | 950 | ||||||||||||
Adjusted pro forma net loss | $ | (438 | ) | $ | (11,261 | ) | $ | (15,913 | ) | $ | (28,480 | ) | ||||
Denominator: | ||||||||||||||||
Weighted-average shares of Class A common stock outstanding | 115,196 | 101,407 | 109,009 | 91,741 | ||||||||||||
Weighted-average LLC Units of Pluralsight Holdings that are convertible into Class A common stock | 28,932 | 36,791 | 33,437 | 44,834 | ||||||||||||
Adjusted pro forma weighted-average common shares outstanding, basic and diluted | 144,128 | 138,198 | 142,446 | 136,575 | ||||||||||||
Adjusted pro forma net loss per share | $ | — | $ | (0.08 | ) | $ | (0.11 | ) | $ | (0.21 | ) |
Reconciliation of net cash (used in) provided by operating activities to free cash flow: | ||||||||||||||||
Net cash (used in) provided by operating activities | $ | (2,352 | ) | $ | (2,175 | ) | $ | 6,693 | $ | (3,823 | ) | |||||
Less: Purchases of property and equipment | (10,706 | ) | (3,029 | ) | (31,226 | ) | (7,619 | ) | ||||||||
Less: Purchases of content library | (1,803 | ) | (1,381 | ) | (5,596 | ) | (3,822 | ) | ||||||||
Free cash flow | $ | (14,861 | ) | $ | (6,585 | ) | $ | (30,129 | ) | $ | (15,264 | ) |
PLURALSIGHT, INC.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
September 30, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 100,882 | $ | 90,515 | ||||
Short-term investments | 304,077 | 332,234 | ||||||
Accounts receivable, net | 76,492 | 101,576 | ||||||
Deferred contract acquisition costs | 19,469 | 18,331 | ||||||
Prepaid expenses and other current assets | 18,847 | 14,174 | ||||||
Total current assets | 519,767 | 556,830 | ||||||
Restricted cash and cash equivalents | 17,337 | 28,916 | ||||||
Long-term investments | 114,623 | 105,805 | ||||||
Property and equipment, net | 65,058 | 22,896 | ||||||
Right-of-use assets | 61,719 | 15,804 | ||||||
Content library, net | 11,880 | 8,958 | ||||||
Intangible assets, net | 18,416 | 22,631 | ||||||
Goodwill | 262,532 | 262,532 | ||||||
Deferred contract acquisition costs, noncurrent | 8,317 | 5,982 | ||||||
Other assets | 1,940 | 1,599 | ||||||
Total assets | $ | 1,081,589 | $ | 1,031,953 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 7,041 | $ | 10,615 | ||||
Accrued expenses | 47,090 | 40,703 | ||||||
Accrued author fees | 11,988 | 11,694 | ||||||
Lease liabilities | 9,184 | 5,752 | ||||||
Deferred revenue | 207,823 | 215,137 | ||||||
Total current liabilities | 283,126 | 283,901 | ||||||
Deferred revenue, noncurrent | 21,138 | 19,517 | ||||||
Convertible senior notes, net | 490,355 | 470,228 | ||||||
Lease liabilities, noncurrent | 75,393 | 11,167 | ||||||
Other liabilities | 69 | 980 | ||||||
Total liabilities | 870,081 | 785,793 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | — | — | ||||||
Class A common stock | 12 | 10 | ||||||
Class B common stock | 1 | 2 | ||||||
Class C common stock | 1 | 1 | ||||||
Additional paid-in capital | 724,184 | 641,128 | ||||||
Accumulated other comprehensive income | 1,166 | 225 | ||||||
Accumulated deficit | (550,990 | ) | (458,381 | ) | ||||
Total stockholders’ equity attributable to Pluralsight, Inc. | 174,374 | 182,985 | ||||||
Non-controlling interests | 37,134 | 63,175 | ||||||
Total stockholders’ equity | 211,508 | 246,160 | ||||||
Total liabilities and stockholders’ equity | $ | 1,081,589 | $ | 1,031,953 |
PLURALSIGHT, INC.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Operating activities | ||||||||||||||||
Net loss | $ | (33,771 | ) | $ | (45,462 | ) | $ | (121,014 | ) | $ | (120,110 | ) | ||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||||||||||
Depreciation of property and equipment | 2,998 | 2,417 | 8,866 | 6,996 | ||||||||||||
Amortization of acquired intangible assets | 1,380 | 1,435 | 4,235 | 3,044 | ||||||||||||
Amortization of course creation costs | 883 | 651 | 2,464 | 1,841 | ||||||||||||
Equity-based compensation | 24,214 | 24,657 | 76,217 | 67,657 | ||||||||||||
Amortization of deferred contract acquisition costs | 6,251 | 6,006 | 19,018 | 17,317 | ||||||||||||
Amortization of debt discount and issuance costs | 6,853 | 6,826 | 20,128 | 15,120 | ||||||||||||
Investment discount and premium amortization, net | 496 | (1,065 | ) | 68 | (1,771 | ) | ||||||||||
Loss on debt extinguishment | — | 950 | — | 950 | ||||||||||||
Other | (104 | ) | (478 | ) | 589 | (178 | ) | |||||||||
Changes in assets and liabilities, net of acquired assets and liabilities: | ||||||||||||||||
Accounts receivable | (14,581 | ) | (5,258 | ) | 23,512 | 1,858 | ||||||||||
Deferred contract acquisition costs | (9,128 | ) | (7,238 | ) | (22,491 | ) | (18,668 | ) | ||||||||
Prepaid expenses and other assets | (4,026 | ) | 535 | (4,237 | ) | (3,509 | ) | |||||||||
Right-of-use assets | 1,449 | 1,412 | 4,487 | 4,339 | ||||||||||||
Accounts payable | 1,480 | (3,573 | ) | (3,126 | ) | (2,520 | ) | |||||||||
Accrued expenses and other liabilities | 11,492 | 8,317 | 6,880 | 5,188 | ||||||||||||
Accrued author fees | 277 | (7 | ) | 293 | 1,292 | |||||||||||
Lease liabilities | (730 | ) | (1,758 | ) | (3,604 | ) | (5,130 | ) | ||||||||
Deferred revenue | 2,215 | 9,458 | (5,592 | ) | 22,461 | |||||||||||
Net cash (used in) provided by operating activities | (2,352 | ) | (2,175 | ) | 6,693 | (3,823 | ) | |||||||||
Investing activities | ||||||||||||||||
Purchases of property and equipment | (10,706 | ) | (3,029 | ) | (31,226 | ) | (7,619 | ) | ||||||||
Purchases of content library | (1,803 | ) | (1,381 | ) | (5,596 | ) | (3,822 | ) | ||||||||
Cash paid for acquisition, net of cash acquired | — | 100 | — | (163,771 | ) | |||||||||||
Purchases of investments | (110,118 | ) | (212,573 | ) | (427,130 | ) | (529,653 | ) | ||||||||
Proceeds from sales of investments | — | — | — | 4,967 | ||||||||||||
Proceeds from maturities of investments | 131,225 | 112,995 | 446,830 | 112,995 | ||||||||||||
Net cash provided by (used in) investing activities | 8,598 | (103,888 | ) | (17,122 | ) | (586,903 | ) | |||||||||
Financing activities | ||||||||||||||||
Proceeds from issuance of common stock from employee equity plans | 3,863 | 245 | 14,741 | 14,876 | ||||||||||||
Taxes paid related to net share settlement | (1,732 | ) | — | (5,605 | ) | — | ||||||||||
Proceeds from issuance of convertible senior notes, net of discount and issuance costs | — | — | — | 616,654 | ||||||||||||
Purchase of capped calls related to issuance of convertible senior notes | — | — | — | (69,432 | ) | |||||||||||
Repurchases of convertible senior notes | — | (35,000 | ) | — | (35,000 | ) | ||||||||||
Proceeds from terminations of capped calls related to repurchases of convertible senior notes | — | 1,284 | — | 1,284 | ||||||||||||
Net cash provided by (used in) financing activities | 2,131 | (33,471 | ) | 9,136 | 528,382 | |||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents | 238 | (130 | ) | 81 | (108 | ) | ||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents | 8,615 | (139,664 | ) | (1,212 | ) | (62,452 | ) | |||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period | 109,604 | 288,283 | 119,431 | 211,071 | ||||||||||||
Cash, cash equivalents, and restricted cash and cash equivalents, end of period | $ | 118,219 | $ | 148,619 | $ | 118,219 | $ | 148,619 |
Investor Relations Contact:
Mark McReynolds
Investor Relations
Pluralsight
801-784-9007
[email protected]
Media Contact:
DJ Anderson
Communications/Press
Pluralsight
801-784-9007
[email protected]
Artificial Intelligence
Highlights from the Finale: Day Three of the London Blockchain Conference Unravelled
As the London Blockchain Conference draws to a close, attendees heard from industry experts on Driving Innovation with Blockchain.
LONDON, May 23, 2024 /PRNewswire/ — Attendees at the London Blockchain Conference were in to witness the final day, which featured a line-up of informative and thought-provoking speakers. Throughout the day, there were exciting panels and presentations which featured cutting-edge ideas and insights.
Day 3 kickstarted with BSVA launching a new report focusing on the role of blockchain in safeguarding data and streamlining transactions.
Other sessions included:
The Intersection of Web3, AI, and Emerging Tech – Somi Aran, Founder of InPeak gave the opening keynote which explored the dynamic convergence of Web3, Artificial Intelligence, and emerging technologies. She delved into how these technologies are reshaping industries and redefining the boundaries of innovation and the potential impacts and opportunities these technologies present.
Bridging the gap: Making Web3 technologies user-friendly – Christine Leong, CIO, nChain – discussed some of the innovative strategies and practical solutions aimed at simplifying Web3 technologies. She also discussed how nChain is planning to transform Web3 from a domain exclusive to the tech-savvy, into a user-friendly ecosystem that empowers all users.
Is code law? – Rules applicable to blockchain networks – panel featuring Marcin Zarakowski, CEO of Token Recovery, Akber Datoo CEO of D2 Legal Technology, Jeffrey Golden, King’s Counsel (Hon) at 3 Hare Court Chambers, Andrei Kirilenko, Professor of Finance at Cambridge Judge Business School, Professor Sarah Green, Law Commissioner at Law Commission, where they discussed that rules apply to the nodes and validators which support the particular network and process its transactions. The group also discussed whether the blockchain protocols’ rules and software code are the only sources of regulation in blockchain networks.
An Introduction to nChain Identity – Thomas Moretti, Head of Product Development at nChain. He spoke about the Self Sovereignty Identity concept and showcased the latest project it is working on – nChain Identity.
Reimagining Roles: How regulated industry leaders are shaping the future of finance – a panel featuring, Andrew Mosson (Chief Commercial Officer of OneTrading, Néstor Palao, Head DLT & Corporate Clients at Sygnum Bank, Laurence Lewandowska, CFO/COO at BSV Association and Wojciech Kaszycki Chairman & Founder at Mobilum. The panel discussed how the new era of digital assets, traditional banking institutions, exchanges, and financial services are being reimagined in the context of emerging technologies such as blockchain and AI.
Please register here if you would like to listen to any of the sessions today.
If you want to interview any speaker from today’s sessions, please email [email protected].
About the London Blockchain Conference NETWORK. LEARN. ENGAGE. At the London Blockchain Conference, we show how Blockchain will change the world and help people see another way to manage data, build scalable on-chain solutions and achieve great things. We do this by creating valuable, insightful, and engaging events that educate and inform, allowing you to connect and network to build strong business relationships. Our conference is the best avenue to see blockchain innovations, ecosystem announcements, product launches, technology updates, keynote speeches, panels, and fireside chats from blockchain leaders. Join us and experience it for yourself.
View original content:https://www.prnewswire.co.uk/news-releases/highlights-from-the-finale-day-three-of-the-london-blockchain-conference-unravelled-302154546.html
Artificial Intelligence
Nord Anglia Education publishes new insights on the role of AI and metacognition in learning
LONDON, May 23, 2024 /PRNewswire/ — INSIGHTS, the global publication from Nord Anglia Education, has published two new articles taking an in-depth look at AI in education and the role of metacognition in teaching and learning.
Exploring the role of AI in learning
https://www.nordangliaeducation.com/insights/2024/articles/the-generative-generationIn its ‘Generative Generation’ feature, INSIGHTS explores the role of artificial intelligence (AI) in education, and whether the technology is making it easier for children to learn. Speaking to Nord Anglia’s educators as well as leading experts from the world of academia, it also includes real-life examples of how Nord Anglia’s schools are using AI in the classroom.
For example, Nord Anglia’s British International School in Kuala Lumpur has adapted the technology to create an AI-powered teaching assistant that can personalise learning, guide students through content exploration, and deepen their understanding through interactive activities. Learners define the topic they want to explore and the course specification they are working to, and the AI explores the content with them in a conversational way, enabling them to ask questions as they go.
Dr Bruce Geddes, Deputy Head of Secondary at the school, told INSIGHTS that AI represents “the biggest opportunity we’ve had in our lifetimes, for many, many spheres, but particularly in education”.
Avenues: The World School in New York, which became part of Nord Anglia in 2023, encourages its students to use AI in their work. As an example, in an app development project students use ChatGPT to generate the bulk of the coding, then review, correct and refine it. This saves them “hours of manual work by leveraging the appropriate tool in an academically appropriate way,” says Lia Muschellack, Director of Technology at the school.
The school also has its own generative AI chatbot, Savvy, built in 2019 and now powered by open AI technology. It can answer queries, provide information, and engage in “diverse discussions ranging from academic topics to casual conversations”.
“We understand that our students will be actively leveraging these tools throughout their academic and professional pathways, so we want to make sure they not only understand the potentials and limitations, but that they have tinkered and truly experienced them,” Muschellack explains.
Metacognition: a learning superpower
In its feature ‘Metacognition. Helping Kids Unlock the Power of ‘Thinking about Thinking’, INSIGHTS looks at how students can develop the important skill of metacognition.
“Metacognition is the ability to be aware of our cognitive or thought processes and to monitor, reflect on, and change those processes,” Dr Rose Luckin, Professor of Learner Centred Design at the University College London Knowledge Lab, told INSIGHTS.
Nord Anglia Education is working with Dr Luckin to develop its approach to metacognition and to help teachers introduce metacognitive strategies into classrooms. It has developed a metacognitive framework of six “Learner Ambitions” to help students develop the 6 Cs: to become critical, creative, committed, and curious learners, working compassionately and collaboratively in the classroom and beyond.
As the article explains, Nord Anglia’s deep dive into metacognition has many goals: developing student agency, boosting academic performance, and developing ‘future’ skills that employers want. The framework is being initially applied across 27 Nord Anglia schools around the world and its impact will be measured in independent research in partnership with Boston College, reporting in 2025.
Nord Anglia’s examination of metacognition also involves exploring personalised goals and thinking routines. For instance, students at Nord Anglia International School Hong Kong use the “Step In, Step Out, Step Back” routine to develop empathy and understanding in their studies. “It’s about asking the right questions; those really big questions that lead to even more questions,” says Raquel Thomson, the school’s Deputy Head of Primary. “Thinking strategies like this stay with students and serve a purpose whatever they do in their lives, whether they choose to be a scientist or a teacher or go into business.”
For media enquiries please contact: Francesca Milani Communications Manager, Digital Education Portfolio +44 20 7131 0000 [email protected]
About Nord Anglia Education:
As the world’s leading international schools organisation, we’re shaping a generation of creative and resilient global citizens who graduate from our schools with everything they need for success, whatever they choose to be or do in life.
Our strong academic foundations combine world-class teaching and curricula with cutting-edge technology and facilities, creating learning experiences like no other. Inside and outside of the classroom, we inspire our students to achieve more than they ever thought possible.
No two children learn the same way, which is why our schools around the world personalise learning to what works best for every student. Inspired by our high-quality teachers, our students achieve outstanding academic results and go on to study at the world’s top universities.
To learn more or apply for a place for your child, go to nordangliaeducation.com.
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Artificial Intelligence
Facing the Power Crunch: Tech Developers Push for More Efficient Hardware Amidst AI Boom
USA News Group News Commentary Issued on behalf of Avant Technologies Inc.
VANCOUVER, BC, May 23, 2024 /PRNewswire/ — USA News Group News Commentary – In order to power the ongoing artificial intelligence (AI) revolution, behind the scenes there’s going to need a lot more investment and… power. This is because cloud based services, especially those fuelling new AI capabilities, requires lots and lots of power, which is allowing contractors to cash in on building rooms containing power management equipment. But while the demand for more AI solutions is set to threaten the world’s electricity grids according to Blackstone CEO Steve Schwarzman, tech developers are working diligently to make hardware more efficient and to service this surging demand, with several developments recently announced by tech companies including: Avant Technologies Inc. (OTC: AVAI), Advanced Micro Devices, Inc. (NASDAQ: AMD), Microsoft Corporation (NASDAQ: MSFT), Broadcom Inc. (NASDAQ: AVGO), and Astera Labs, Inc. (NASDAQ: ALAB).
The article continued: According to Research and Markets, the Global Data Center Infrastructure Market alone is expected to nearly hit US$6 billion by 2029, growing at a CAGR of 9.58%. Analysts at Exactitude Consultancy are also projecting the Global Data Centre Market as a whole, will reach US$536.38 billion by 2030, growing at a CAGR of 10.72%.
Avant Technologies Engages Wired4Tech to Evaluate the Performance of Next Generation AI Server Technology
Avant Technologies, Inc. (OTCQB: AVAI) (“Avant” or the “Company”), a leading innovator and enabler of AI infrastructure technology, today announced its engagement with Wired4Tech, a renowned AI infrastructure consulting firm.
As part of its existing technology services agreement with Wired4Tech, Avant Technologies has engaged Wired4Tech to conduct comprehensive performance benchmarking of a next-generation AI cloud server that Avant is evaluating for future use in its AI data center cloud infrastructure.
Wired4Tech’s performance benchmarking will encompass a range of crucial metrics, including response time, throughput, CPU and memory usage, disk I/O, network latency, and error rates. These metrics are essential for assessing the server’s ability to handle complex AI workloads efficiently and reliably. Additionally, Wired4Tech will measure the server’s power consumption and anticipated cost savings.
Response time will be evaluated to measure the speed at which the server responds to various actions, providing insight into its overall responsiveness. Throughput analysis will assess the server’s data transfer capabilities, considering factors such as file size, cached or uncached content, and available network bandwidth.
Furthermore, CPU and memory usage will be closely monitored to gauge the server’s processing power and memory management efficiency. Disk I/O performance will be evaluated to ensure smooth data access and storage operations, while network latency measurements will provide valuable information on the server’s communication speed with external systems.
“We are excited to engage Wired4Tech to benchmark the performance of an innovative, next-generation AI server,” said William Hisey, Chief Executive Officer, at Avant Technologies. “By conducting rigorous benchmark testing of this promising server technology, we expect to validate its expected performance and cost-saving benefits.”
The results of the benchmark testing will enable Avant Technologies to further execute on its AI infrastructure business strategy.
CONTINUED… Read this and more news for Avant Technologies at: https://equity-insider.com/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
In other industry developments and happenings in the market this week include:
Advanced Micro Devices, Inc. (NASDAQ: AMD), a leading global semiconductor company with Data Center, Client, Gaming, and Embedded segments, showcased its latest end-to-end compute and software capabilities for Microsoft customers and developers, that utilize AMD solutions such as AMD Instinct MI300X accelerators, ROCm open software, Ryzen AI processors and software, and Alveo MA35D media accelerators. By using these, Microsoft is able to provide a powerful suite of tools for AI-based deployments across numerous markets.
“The AMD Instinct MI300X and ROCm software stack is powering the Azure OpenAI Chat GPT 3.5 and 4 services, which are some of the world’s most demanding AI workloads,” said Victor Peng, president, AMD. “With the general availability of the new VMs from Azure, AI customers have broader access to MI300X to deliver high-performance and efficient solutions for AI applications.”
Microsoft Corporation (NASDAQ: MSFT), global leader in developing and supporting software, services, devices and solutions, announced new computers called “Copilot+” PCS, with the company’s AI tech directly into them, serving to further boost the race among tech giants to push out AI tools to the public. According to CEO Satya Nadella at an event at Microsoft’s headquarters prior to its annual Build conference, adding computer chips tailored to run AI technology to its PCs and tablets will make AI tools and features run faster than if the technology runs through an internet connect, as most chatbots today run.
However, Microsoft is also continuing its efforts to expand cloud-computing services in East Africa, by announcing it is partnering with UAE-based AI firm G42 to invest $1 billion in a data center in Kenya. The data center will be powered by geothermal energy and provide access to Microsoft’s Azure through a new cloud region for East Africa.
Broadcom Inc. (NASDAQ: AVGO), a global technology leader in a broad range of semiconductor, enterprise software and security solutions, announced its latest portfolio of highly-scalable, high-performing, low-power 400G PCIe Gen 5.0 Ethernet adapters to revolutionize the data center ecosystem. The new products offer an enhanced, open, standards-based Ethernet NIC and switching solution to resolve connectivity bottlenecks as XPU bandwidth and cluster sizes grow rapidly in AI data centers.
“Broadcom is prioritizing open standards and fostering collaboration with industry leaders to deliver the most extensive selection of high-performance connectivity solutions for AI infrastructure,” said Jas Tremblay, Vice President and General Manager of the Data Center Solutions Group, Broadcom. “Our 400G PCIe Gen 5.0 Ethernet adapters yet again underscore our commitment to enable the network-centric AI infrastructure platform.”
Astera Labs, Inc. (NASDAQ: ALAB), a global leader in purpose-built connectivity solutions that unlock the full potential of AI and cloud infrastructure, announced expanded PCIe 6.x testing capabilities in its Cloud-Scale Interop Lab to enable seamless interoperability between Aries 6 PCIe/CXL Smart DSP Retimers and a broad range of PCIe 6.x hosts and endpoints. The new capabilities pave the way for AI platform developers to design high-bandwidth, low-latency PCIe 6.x connectivity with confidence, reduce overall development time, and deploy at scale.
“As AI systems continue to advance at a rapid pace, data center operators need to deploy increasingly complex systems on an accelerated timeline,” said Thad Omura, Chief Business Officer of Astera Labs. “Expanding our Cloud-Scale Interop Lab test suite to support PCIe 6.x operation fast-tracks deployment for customers integrating Aries 6 – the industry’s lowest power PCIe 6.x/CXL 3.x Retimer – with solutions from our ecosystem partners.”
Source: https://equity-insider.com/unlocking-the-trillion-dollar-ai-market-what-investors-need-to-know/
CONTACT:
USA NEWS GROUP [email protected] (604) 265-2873
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