Pluralsight, Inc. (NASDAQ:PS) Q4 2019 Earnings Conference Call - Final Transcript

Feb 12, 2020 • 04:30 pm ET

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Pluralsight, Inc. (NASDAQ:PS) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good afternoon, ladies and gentlemen, and welcome to the Pluralsight Fourth Quarter and Year-End 2019 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to hand the conference over to your host, Mr. Mark McReynolds, Director of Investor Relations. Please go ahead, sir.

Executive
Mark McReynolds

Thank you. Good afternoon, and welcome to Pluralsight's fourth quarter and full-year 2019 earnings conference call. With me today are Aaron Skonnard, Co-Founder and CEO and James Budge, CFO.

Some of our remarks will include forward-looking statements within the meaning of the federal securities laws. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are included in today's press release and in our SEC filings. Any forward-looking statements that we make on this call are based on information and assumptions as of today, and we assume no obligation to update these statements.

During this call, we may present both GAAP and non-GAAP financial measures. Except for revenue, balance sheet amounts, cash flow from operations and billings, all financial amounts discussed are non-GAAP and growth rates are compared to the prior year comparable period, unless otherwise stated. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The press release is available on our website at investors.pluralsight.com.

Before we hear from Aaron, I'd like to note that we are holding our second annual Pluralsight LIVE event in London coming up next month. Our annual user event for the EMEA region will be held on March 23 through the 24 at the Park Plaza, Westminster Bridge Hotels in London. The event will provide an excellent opportunity for investors and analysts in Europe to connect with our customers and partners. We'll hold a short breakout session on March 23rd for investors and analysts that join us at LIVE. Please send an email to ir@pluralsight.com or reach out to me directly if you are interested in attending.

And with that, I'll turn the call over to Aaron.

Executive
Aaron Skonnard

Thanks, Mark, and thanks to everyone for joining our Q4 earnings call. Pluralsight's fourth quarter capped off a strong second half, further demonstrating that the operational improvements we implemented during the second half of 2019 are working and laying the foundation for durable, long-term B2B billings growth above 30%. We ended the year with 37% revenue growth, above the high-end of our guidance, and we also produced 33% B2B billings growth. We've now achieved 30% or greater B2B billings growth in 10 out of the last 11 quarters.

We began 2020 with nearly 1 million business users and 18,000 business customers in a new integrated product line to carry the momentum forward from the second half of 2019 through 2020.

We made several improvements to our go-to-market in the second half of 2019, which can be boiled down to three primary areas: sales leadership, sales operations, and capacity. We added a world-class sales leader, Ross Meyercord, who has already made key