PS - Pluralsight plunges as billings deceleration concerns outweigh Q3 beats upside forecast

Pluralsight (PS) shares are down 12.3% pre-market after yesterday's Q3 results, which beat estimates with 20% Y/Y revenue growth to $99.47M and break-even profit. The company also provided upside guidance, but the billings deceleration weighed down the good news.Billings were up 9% period over period to $100M in the quarter. Billings from business customers were up 10% to $88.6M. In Q2, the billings rates were up 11% and 12%, respectively.FY20 guidance: PS sees $387.0-390.0M in revenue (prior guidance: $375M-390M, consensus: $382.6M) and a loss per share of $0.12-0.14 (prior: $0.19-0.27 loss, consensus: $0.23 loss).JPMorgan downgrades the company from Overweight to Neutral and shaves $9 off the price target for $20 but says the move was a "tough" decision. The firm cites the decelerating revenue growth.The firm notes that the December forecast is just above Street estimates and thinks it will take "better than typical pipeline conversion activity coming out of Pluralsight Live" to hit

For further details see:

Pluralsight plunges as billings deceleration concerns outweigh Q3 beats, upside forecast