According to a recent Research and Markets report, the global e-learning market is expected to grow to $325 billion by the year 2025. Cedar Valley, Utah-based Pluralsight (Nasdaq: PS) is an e-learning player that recently reported its fourth-quarter results that surpassed market expectations.

Pluralsight’s Financials

For the quarter, Pluralsight’s revenues grew 32% to $89 million, ahead of the Street’s forecast of $87 million. Billings for the quarter grew 28% over the year to $128.4 million. Net loss was $32 million, or $0.31 a share compared with a loss of $16 million, or $0.26 a share a year ago. On an adjusted basis, loss was $0.09 per share, significantly better than the Street’s estimate of a loss of $0.14 per share.

It ended the year with revenues growing 37% over the year to $316.9 million and an adjusted net loss dropping 50% to $0.30 per share.

Pluralsight expects to end the current year with revenues of $390-$400 million and an adjusted net loss of $0.50-$0.45 per share. It expects to end the first quarter with revenues of $86-$88 million and a net loss of $0.14-$0.13 per share. The market was looking for revenues of $395 million with a loss of $0.51 per share for the year and revenues of $87.87 million with a loss of $0.15 per share for the quarter.

Pluralsight’s B2B Focus

During the last few months, Pluralsight has been focusing on driving its B2B segment. For the year, it generated 33% B2B billings growth, down from 50% B2B billings growth a year ago. It expects to continue to grow that contribution in the future. Pluralsight had released Flow last year to address the B2B segment. Built on its GitPrime acquisition, Flow aggregates historical git data into easy-to-understand insights and reports to make engineering teams more successful. Flow gives significant visibility into the team’s workflow patterns to help identify bottlenecks, compare trends and build more effective teams. Pluralsight believes that Flow offers a significant cross-selling opportunity within the enterprise segment and will help drive a strong pipeline into the coming year.

Besides focusing on tech training modules for engineers, Pluralsight is also seeing a growing demand to develop digital literacy in a non-tech workforce. Business leaders want their entire company to understand upcoming technologies and are looking at Pluralsight to enable this transformation. To cater to this market, Pluralsight recently piloted a new SKU that is expected to be released later this year. It will address the demand for tech literacy and its largest enterprise customers.

Last June, news about slowing billing growth coupled with a weak sales strategy had sent Pluralsight’s stock tumbling. Since then though, the company has made several improvements to its go-to-market strategy by focusing on sales leadership, sales operations, and capacity. It added a new sales leader Ross Meyercord to strengthen and motivate its sales team. Besides adding key new hires, he also initiated a thorough review process and instilled more discipline to ensure that the company focuses on strategic customers, segments, and markets. Today, Pluralsight has more than 330 quota-bearing sales reps giving the company confidence in their ability to scale and grow rapidly in the coming years.

The market still remains skeptical about their growth and continued losses. Its stock is trading at $18.73 with a market capitalization of $2.6 billion. It had peaked to a 52-week high of $35.70 in April last year. The stock hit a 52-week low of $14.84 in August last year. The stock had listed in 2018 at $15 apiece raising $310 million at a valuation of $2 billion.