PluralSight Raises IPO Target To As Much As $14 Per Share

PluralSight, a Utah-based technical learning service, raised its IPO price range from $10 to $12 to $12 to $14 per share today, likely indicating healthy demand for its shares.

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The company’s march to IPO has been interesting. When PluralSight first filed, Crunchbase News noted the firm’s rapid growth and expanding losses. On the deficit topic, PluralSight’s net losses grew on a quarterly basis from the single digit millions in 2016 to over $20 million in the next quarter, before finally cresting $30 million in each of the final two quarters of the year.

The company’s most recent filing includes the firm’s Q1 2018 results. They are encouraging. PluralSight’s net loss fell from around $31 million in the fourth quarter of 2017 to $23 million in the first quarter of this year. Its revenue grew a few million from $47.4 million to $49.6 million.

So its top line grew while its red ink began to dry up. That, in English, is at least the first step on a path to profitability. Perhaps the most recent quarter’s potentially encouraging signs allowed PluralSight to boost its IPO price range.

Valuation

So, at $12 to $14 per share, what is PluralSight worth? Using a simple share count for the firm (denoted in the S-1 as “[t]otal common stock to be outstanding after this offering”), PluralSight would be worth $1.84 billion at the top end of its range, not including its greenshoe option.

Taking into account those extra 3.1 million shares that the banks may buy, the company’s valuation rises to $1.88 billion.

Those numbers should make PluralSight’s investors reasonably happy. PluralSight’s key raise, a $135 million Series B back in 2014, was raised at a $1.0 billion or $865 million on a pre-money basis, according to Crunchbase. For those five investors (here), the new valuation is nearly twice their entry point.

How the new IPO valuation compares to the firm’s comparatively modest $30 million Series C that it raised in 2016 isn’t clear, as we don’t know its valuation at the time.

As of the time of writing, the firm is expected to price tomorrow, and begin trading on Thursday. More as it happens.

iStockPhoto / Oksana Raievska