Pluralsight, Inc. (NASDAQ:PS) Q4 2018 Earnings Conference Call - Final Transcript
Feb 13, 2019 • 04:30 pm ET
Thank you. (Operator Instructions) Our first question comes from Brian Essex from Morgan Stanley. You may proceed with your question.
Hi, good afternoon, and thank you for taking the question. Congratulations on the quarter. Great results. I was wondering if you could touch on a little bit on -- you announced the price increases for professional enterprise. What is being your experience with the price increases historically? How do you anticipate delivering those to customers in terms of grandfathering legacy pricing versus converting to new pricing? And maybe lastly could you touch on the additional features and functionality that you have that might support those increases as customers assess that change?
Yes, thanks, Brian. Thanks for joining. I'll take that one. I take you back probably a year ago to answer the question a little bit. If you remember with all the excitement we had around Skill IQ, skill assessment in 2017 at Pluralsight LIVE, we rolled that into a new line, our enterprise SKU with 699 SKU we put out at the beginning of 2018. And since that time, we've seen about 45% to 50% of our enterprise customers move on to the enterprise SKU that's 699 SKU relative to the 499 SKU professional SKU we have prior to that. In aggregate we have about 20% to 25% of our overall customers that are now on the enterprise SKU and we see that continuing to climb as we move through 2019.
So as we came in to 2018 and at least in our estimate we actually put out more capability, more technology, more into the platform 2018 relative to 2017 with some of those items I mentioned like Role IQ, interactive courses, projects, some other capabilities, more content, all of what we did at the beginning of '18 gave us the conviction and bouncing that off of a number for customers that we could slightly increase both the professional SKU which hasn't seen a price increase in a long, long time. And even take the enterprise SKU while being a new SKU we thought we could take the price of that as well given the capability in the platform. So we're confident we can get there. We have -- already have customers adopting on to the new price points as we speak. And we expect to see that as we go through 2019 to continue to increase.
To your question about the legacy customers, certainly those who've signed into multi-year cycling (ph) packages in the last 6 or 12 months, we're going to honor those, they would continue to have that pricing as they go forward. But as their contracts comes to an end and we go back for another price discussion we'd expect to have that at the higher price point higher list price contemplated in those discussions.
Makes a lot of sense. That's a great color. Thank you very much.
Thank you. And our next question comes from Brad Sills of Bank of America Merrill Lynch. You may