Instructure Reports Fourth Quarter and Full Year 2017 Financial Results

SALT LAKE CITY, Feb. 12, 2018 /PRNewswire/ -- Instructure, Inc. (NYSE: INST), a leading software-as-a-service (SaaS) technology company that makes software that makes people smarter, today announced its financial results for the fourth quarter and full year ended December 31, 2017.

Instructure official logo (PRNewsFoto/Instructure)

"We had a strong finish to 2017, delivering 39% revenue growth in the fourth quarter and 43% growth for the year," said Josh Coates, CEO at Instructure. "During the year we further drove innovation with the introduction of new modules for both Canvas and Bridge. Additionally, we made our first product acquisition, Practice, a video microlearning solution that makes it easy to learn and improve through assessment and coaching. We are excited about the tremendous opportunities we see in the education and corporate learning markets in 2018 and beyond." 

Fourth Quarter and Full Year Financial Summary

 

(in thousands, except per share data)

 
   

Three Months
Ended December 31,

   

Year Ended
Ended December 31,

 
   

2017

   

2016

   

2017

   

2016

 
   

(unaudited)

   

(unaudited)

   

(unaudited)

         

Revenue

 

$

43,835

   

$

31,546

   

$

158,806

   

$

110,880

 

Gross Margin

                               

GAAP

   

69.7

%

   

71.1

%

   

70.8

%

   

70.5

%

Non-GAAP(1)

   

70.9

%

   

71.8

%

   

71.7

%

   

71.3

%

Operating Loss

                               

GAAP

   

(12,482)

     

(12,838)

     

(50,776)

     

(53,375)

 

Non-GAAP(1)

   

(8,348)

     

(9,862)

     

(35,469)

     

(42,909)

 

Operating Margin

                               

GAAP

   

-28.5

%

   

-40.7

%

   

-32.0

%

   

-48.1

%

Non-GAAP(1)

   

-19.0

%

   

-31.3

%

   

-22.3

%

   

-38.7

%

Net loss

                               

GAAP

   

(11,722)

     

(12,922)

     

(49,822)

     

(53,568)

 

Non-GAAP(1)

   

(8,167)

     

(9,956)

     

(34,996)

     

(43,164)

 

EPS

                               

GAAP

 

$

(0.39)

   

$

(0.46)

   

$

(1.69)

   

$

(1.92)

 

Non-GAAP(1)

 

$

(0.27)

   

$

(0.35)

   

$

(1.19)

   

$

(1.55)

 
                   
                   

(1)  Non-GAAP financial measures exclude stock-based compensation, reversal of estimated accruals related to payroll taxes on secondary stock purchase transactions, amortization of acquisition related intangibles, the change in fair value of the warrant liability and the deferred income tax benefit.

Fourth Quarter 2017 Business Highlights

  • Instructure continued to expand its customer base in the fourth quarter. A few highlights include:
    • U.S. Higher Education and K-12 Schools – Within the U.S. higher education market, Canvas was selected by the University of Wisconsin System for their more than 120,000 students across 26 campuses. With the addition of Florida A&M and Florida International University this quarter, all students in the State University System of Florida will use Canvas as their LMS. Central Bucks School District, the third largest school district in Pennsylvania, also chose Canvas to serve their K-12 students.
    • International – Canvas was chosen by the University of Sussex for their 18,000 learners and France's INSEAD, one of the world's leading and largest graduate business schools, selected Canvas for their global students, faculty and executives participating in their executive education programs. Additionally, SUNET, the organization responsible for Sweden's University Computer Network, selected Canvas as a preferred supplier for their member schools. Already, 12 universities in Sweden, representing almost 80,000 students, have signed up for Canvas.
    • Corporate – Bridge was selected by Scripps Networks Interactive, Vivint Smart Home, and a large California-based aerospace company. Additionally, Instructure entered into a partnership with Paychex, which allows Paychex to offer Bridge Learn to their more than half a million customers, representing about 6 million users nationwide.

Business Outlook

Today, Instructure issued financial guidance for the first quarter and full year 2018. The financial guidance discussed below is on a non-GAAP basis, except for revenue, and excludes stock-based compensation expense, reversal of payroll tax expense on secondary stock purchase transactions, amortization of acquisition related intangibles, the change in fair value of the warrant liability, and the deferred income tax benefit (see tables below that reconcile these non-GAAP financial measures to the related GAAP measures). On January 1, 2018, Instructure adopted Accounting Standards Codification (ASC) 606 "Revenue from Contracts with Customers" using the full retrospective transition method. The 2018 guidance below includes the expected impact of the adoption of the new accounting standard (see tables below that disclose the 2017 quarterly results as if reported under ASC 606).

For the first quarter ending March 31, 2018, Instructure expects revenue of approximately $46.8 million to $47.4 million, a non-GAAP net loss of ($7.4) million to ($6.8) million, and non-GAAP net loss per common share of ($0.24) to ($0.22).

For the full year ending December 31, 2018, Instructure expects revenue of approximately $203.5 million to $209.5 million, a non-GAAP net loss of ($32.3) million to ($30.3) million, and non-GAAP net loss per common share of ($1.03) to ($0.97).

Conference Call Details:

Instructure will discuss its fourth quarter and full year 2017 results today, February 12, 2018, via teleconference at 3:00 p.m. Mountain Time / 5:00 p.m. Eastern Time. The call may be accessed at (877) 681-3372, or outside the U.S. at (719) 325-2249, conference ID 9922149. 

The live webcast of the call can be accessed at the Instructure Investor Relations website at ir.instructure.com. A replay of the call will be available at the same web address approximately two hours following the conclusion of the live event. You may register for the live webcast at bit.ly/INST_Q42017EarningsCall.

Non-GAAP Financial Measures

In this press release and related conference call, Instructure's non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, non-GAAP net loss per share and 12-month billings are not presented in accordance with GAAP and are not intended to be used in lieu of GAAP presentations of results of operations.

Management presents these non-GAAP financial measures because it considers them to be important supplemental measures of performance. Management uses the non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance. However, these non-GAAP financial measures have limitations as an analytical tool and are not intended to be an alternative to financial measures prepared in accordance with GAAP. We intend to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics.

Non-GAAP measures exclude stock-based compensation, payroll taxes related to secondary stock purchase transactions or the reversal of such expense due to the retirement of the liability, amortization of acquisition related intangibles, the change in fair value of the warrant liability, and the deferred income tax benefit. We believe investors may want to exclude the effects of these items in order to compare our financial performance between time periods:

  • Stock-based compensation - Although stock-based compensation is an important aspect of the compensation of our employees and executives, management believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of our core business. Unlike cash compensation, the value of equity awards is determined using a complex formula that incorporates factors, such as market volatility and forfeiture rates that are beyond our control.
  • Reversal of estimated accruals related to payroll taxes on secondary stock purchase transactions – Prior to our IPO, operating expenses included employer payroll tax-related items on employee sales of securities to investors. The amount of employer payroll tax-related items on these transactions was dependent on the fair market value of our stock. Beginning in the second quarter of 2016, operating expenses included the reversal of such payroll tax expense due to the reduction of the estimated liability, which will continue to occur in the second quarter of each year.
  • Amortization of acquisition related intangibles - Expense for the amortization of acquisition related intangibles is a non-cash item, and we believe that the exclusion of this expense provides for a useful comparison of our operating results to prior periods.
  • Change in fair value of the warrant liability - Under GAAP, we are required to record mark-to-market adjustments for the change in fair value of the liability for warrants issued in connection with term debt and our credit facility. This expense or gain is excluded from management's assessment of our operating performance because management believes that these non-cash items are not indicative of ongoing operating performance.
  • Deferred income tax benefit - The deferred income tax benefit is a non-cash item created by the difference in the carrying amount and tax basis of the assets and liabilities acquired. This taxable temporary difference resulted in the recognition of a $0.6 million deferred tax liability which was recorded as an adjustment to goodwill on the consolidated balance sheet as of December 31, 2017. The creation of the deferred tax liability represents a source of future taxable income which supports the realization of a portion of the income tax benefit associated with historical net operating losses. The deferred income tax benefit is a non-cash item that is unique to the business combination, and we believe the exclusion of this deferred tax benefit provides for a useful comparison of our operating results to prior periods and our peer companies.

Forward-Looking Statements

This press release contains, and statements made during the above referenced conference call will contain, "forward-looking" statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's financial guidance for the first quarter of 2018 and for the full year ending December 31, 2018, the company's growth, customer demand and application adoption, the company's research and development efforts and future application releases, and the company's expectations regarding future revenue, expenses, cash flows and net income or loss. These statements are not guarantees of future performance, but are based on management's expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include the following: risks associated with anticipated growth in Instructure's addressable market; competitive factors, including changes in the competitive environment, pricing changes, sales cycle time and increased competition; Instructure's ability to build and expand its sales efforts; general economic and industry conditions; new application introductions and Instructure's ability to develop and deliver innovative applications and features; Instructure's ability to provide high-quality service and support offerings; risks associated with international operations; and macroeconomic conditions. These and other important risk factors are described more fully in the Quarterly Report on Form 10-Q for the quarter ended September 30, 2017, which was filed with the Securities and Exchange Commission (the "SEC") on November 1, 2017, and other documents filed with the SEC and could cause actual results to vary from expectations. All information provided in this press release and in the conference call is as of the date hereof and Instructure undertakes no duty to update this information except as required by law.

About Instructure

Instructure, Inc. is a leading software-as-a-service (SaaS) technology company that makes software that makes people smarter. With a vision to help maximize the potential of people through technology, Instructure created Canvas, Gauge, Arc and Bridge to enable organizations everywhere to easily develop, deliver and manage engaging face-to-face and online learning experiences. To date, Instructure has connected millions of instructors and learners at more than 3,000 educational institutions and corporations throughout the world. Learn more about Canvas for higher ed and K-12, and Bridge for the corporate market at www.Instructure.com.

Contacts:
Keaton Godfrey
Instructure
(866) 574-3127
[email protected]re.com

Becky Frost
Instructure
(801) 869-5017
[email protected]

 

INSTRUCTURE, INC.

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 
   

December 31,

2017

   

December 31,

2016

 
   

(unaudited)

         

Assets

               

Current assets:

               

Cash and cash equivalents

 

$

35,693

   

$

44,539

 

Short term marketable securities

   

5,697

     

23,895

 

Accounts receivable—net of allowances of $318 and $241 at December 31, 2017 and 2016, respectively

   

30,797

     

18,072

 

Prepaid expenses

   

11,492

     

5,434

 

Other current assets

   

2,419

     

936

 

Total current assets

   

86,098

     

92,876

 

Property and equipment, net

   

23,926

     

14,733

 

Goodwill

   

12,354

     

989

 

Intangible assets, net

   

9,048

     

760

 

Noncurrent prepaid expenses

   

2,939

     

984

 

Other assets

   

1,045

     

994

 

Total assets

 

$

135,410

   

$

111,336

 

Liabilities and stockholders' equity

               

Current liabilities:

               

Accounts payable

 

$

2,892

   

$

5,374

 

Accrued liabilities

   

13,702

     

10,905

 

Deferred rent

   

936

     

773

 

Deferred revenue

   

99,086

     

72,747

 

Total current liabilities

   

116,616

     

89,799

 

Deferred revenue, net of current portion

   

3,950

     

3,144

 

Deferred rent, net of current portion

   

9,201

     

8,372

 

Warrant liability

   

122

     

25

 

Other long term liabilities

   

1,164

     

32

 

Total liabilities

   

131,053

     

101,372

 

Commitments and contingencies

               

Stockholders' equity:

               

Common stock

   

3

     

3

 

Additional paid-in capital

   

250,899

     

206,442

 

Accumulated other comprehensive income

   

(1)

     

(12)

 

Accumulated deficit

   

(246,544)

     

(196,469)

 

Total stockholders' equity

   

4,357

     

9,964

 

Total liabilities and stockholders' equity

 

$

135,410

   

$

111,336

 

 

INSTRUCTURE, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, except per share data)

 
   

Three Months
Ended December 31,

   

Year Ended
December 31,

 
   

2017

   

2016

   

2017

   

2016

 
   

(unaudited)

   

(unaudited)

   

(unaudited)

         

Revenue:

                               

Subscription and support

 

$

39,335

   

$

28,308

   

$

139,925

   

$

97,115

 

Professional services and other

   

4,500

     

3,238

     

18,881

     

13,765

 

Total Net revenue

   

43,835

     

31,546

     

158,806

     

110,880

 

Cost of Revenue:

                               

Subscription and support

   

10,001

     

6,917

     

34,351

     

24,252

 

Professional services and other

   

3,297

     

2,210

     

12,026

     

8,497

 

Total cost of revenue

   

13,298

     

9,127

     

46,377

     

32,749

 

Gross profit

   

30,537

     

22,419

     

112,429

     

78,131

 

Operating expenses:

                               

Sales and marketing

   

21,287

     

18,002

     

83,716

     

69,991

 

Research and development

   

13,477

     

10,141

     

48,293

     

35,973

 

General and administrative

   

8,255

     

7,114

     

31,196

     

25,542

 

Total operating expenses

   

43,019

     

35,257

     

163,205

     

131,506

 

Loss from operations

   

(12,482)

     

(12,838)

     

(50,776)

     

(53,375)

 

Other income (expense):

                               

Interest income

   

162

     

116

     

361

     

352

 

Interest expense

   

(37)

     

(33)

     

(55)

     

(87)

 

Change in fair value of warrant liability

   

1

     

10

     

(97)

     

62

 

Other income (expense), net

   

36

     

(119)

     

354

     

(353)

 

Total other income (expense)

   

162

     

(26)

     

563

     

(26)

 

Loss before income taxes

   

(12,320)

     

(12,864)

     

(50,213)

     

(53,401)

 

Income tax expense

   

598

     

(58)

     

391

     

(167)

 

Net loss

 

$

(11,722)

   

$

(12,922)

   

$

(49,822)

   

$

(53,568)

 

Net loss per common share, basic and diluted

 

$

(0.39)

   

$

(0.46)

   

$

(1.69)

   

$

(1.92)

 

Weighted average shares used to compute net loss per share, basic and diluted

   

30,237

     

28,348

     

29,401

     

27,838

 

 

INSTRUCTURE, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 
   

Three Months
Ended December 31,

   

Year Ended
December 31,

 
   

2017

   

2016

   

2017

   

2016

 
   

(unaudited)

   

(unaudited)

   

(unaudited)

         

Operating Activities:

                               

Net loss

 

$

(11,722)

   

$

(12,922)

   

$

(49,822)

   

$

(53,568)

 

Adjustments to reconcile net loss to net cash used in operating activities:

                               

Depreciation of property and equipment

   

1,865

     

1,149

     

6,187

     

3,981

 

Amortization of intangible assets

   

242

     

121

     

572

     

405

 

Amortization of deferred financing costs

   

7

     

12

     

31

     

46

 

Change in fair value of warrant liability

   

(1)

     

(10)

     

97

     

(62)

 

Stock-based compensation

   

3,963

     

2,973

     

15,670

     

10,674

 

Other

   

25

     

(28)

     

(17)

     

92

 

Changes in assets and liabilities:

                               

Accounts receivable, net

   

4,790

     

5,050

     

(12,830)

     

(8,837)

 

Prepaid expenses and other assets

   

(7,370)

     

(1,667)

     

(9,599)

     

(818)

 

Accounts payable and accrued liabilities

   

(7,456)

     

(571)

     

740

     

3,732

 

Deferred revenue

   

(10,449)

     

(8,894)

     

26,882

     

23,566

 

Deferred rent

   

1,055

     

(95)

     

992

     

(474)

 

Other liabilities

   

     

16

     

(32)

     

(345)

 

Net cash used in operating activities

   

(25,051)

     

(14,866)

     

(21,129)

     

(21,608)

 

Investing Activities:

                               

Purchases of property and equipment

   

(4,920)

     

(2,099)

     

(15,750)

     

(7,021)

 

Purchases of intangible assets

   

(9)

     

(410)

     

(310)

     

(721)

 

Proceeds from disposal of property and equipment

   

26

     

40

     

76

     

63

 

Purchases of marketable securities

   

(12,997)

     

(4,389)

     

(11,085)

     

(28,752)

 

Maturities of marketable securities

   

15,400

     

4,800

     

29,300

     

5,125

 

Net cash provided by (used in) investing activities

   

(2,500)

     

(2,058)

     

2,231

     

(31,306)

 

Financing Activities:

                               

Proceeds from issuance of common stock from employee equity plans

   

4,606

     

2,515

     

10,375

     

7,009

 

Shares repurchased for tax withholdings on vesting of restricted stock

   

(78)

     

(27)

     

(292)

     

(27)

 

Payments of financing costs

   

     

     

(31)

     

 

Net cash provided by financing activities

   

4,528

     

2,488

     

10,052

     

6,982

 

Net decrease in cash

   

(23,023)

     

(14,436)

     

(8,846)

     

(45,932)

 

Cash, beginning of period

   

58,716

     

58,975

     

44,539

     

90,471

 

Cash, end of period

 

$

35,693

   

$

44,539

   

$

35,693

   

$

44,539

 

 

INSTRUCTURE, INC.

RECONCILIATION OF NON-GAAP GROSS MARGIN

(in thousands, except percentages)

(unaudited)

   

Three Months Ended
December 31,

   

Year Ended
December 31,

 
   

2017

   

2016

   

2017

   

2016

 

GAAP gross profit

 

$

30,537

   

$

22,419

   

$

112,429

   

$

78,131

 

Stock-based compensation

   

408

     

240

     

1,358

     

962

 

Amortization of acquisition related intangibles

   

135

     

     

135

     

 

Non-GAAP gross margin

 

$

31,080

   

$

22,659

   

$

113,922

   

$

79,093

 
                                 

GAAP gross margin %

   

69.7

%

   

71.1

%

   

70.8

%

   

70.5

%

Non-GAAP gross margin %

   

70.9

%

   

71.8

%

   

71.7

%

   

71.3

%

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING LOSS

 

(in thousands, except percentages)

 

(unaudited)

 
   

Three Months Ended
December 31,

   

Year Ended
December 31,

 
   

2017

   

2016

   

2017

   

2016

 

Loss from operations

 

$

(12,482)

   

$

(12,838)

   

$

(50,776)

   

$

(53,375)

 

Stock-based compensation

   

3,963

     

2,973

     

15,670

     

10,674

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(534)

     

(217)

 

Amortization of acquisition related intangibles

   

171

     

3

     

171

     

9

 

Non-GAAP operating loss

 

$

(8,348)

   

$

(9,862)

   

$

(35,469)

   

$

(42,909)

 
                                 

GAAP operating margin

   

-28.5

%

   

-40.7

%

   

-32.0

%

   

-48.1

%

Non-GAAP operating margin

   

-19.0

%

   

-31.3

%

   

-22.3

%

   

-38.7

%

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS

 

(in thousands, except per share data)

 

(unaudited)

 
   

Three Months Ended
December 31,

   

Year Ended
December 31,

 
   

2017

   

2016

   

2017

   

2016

 

Net Loss

 

$

(11,722)

   

$

(12,922)

   

$

(49,822)

   

$

(53,568)

 

Stock-based compensation

   

3,963

     

2,973

     

15,670

     

10,674

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(534)

     

(217)

 

Amortization of acquisition related intangibles

   

171

     

3

     

171

     

9

 

Deferred income tax benefit from business combination

   

(578)

     

     

(578)

     

 

Change in fair value of warrant liability

   

(1)

     

(10)

     

97

     

(62)

 

Non-GAAP net loss

 

$

(8,167)

   

$

(9,956)

   

$

(34,996)

   

$

(43,164)

 

Non-GAAP net loss per common share, basic and diluted

 

$

(0.27)

   

$

(0.35)

   

$

(1.19)

   

$

(1.55)

 

Weighted average common shares used in computing basic and diluted net loss per common share

   

30,237

     

28,348

     

29,401

     

27,838

 

 

INSTRUCTURE, INC.

RECONCILIATION OF 12-MONTH BILLINGS

(in thousands)

(unaudited)

   

Trailing Twelve Months Ended
December 31,

 
   

2017

   

2016

 

Total net revenue

 

$

158,806

   

$

110,880

 
                 

Current deferred revenue

               

Beginning balance

   

72,747

     

49,384

 

Ending balance

   

99,086

     

72,747

 

Net change in current deferred revenue

   

26,339

     

23,363

 
                 

Long term deferred revenue

               

Beginning balance

   

3,144

     

2,941

 

Ending balance

   

3,950

     

3,144

 

Net change in long term deferred revenue

   

806

     

203

 
                 

Total 12-month billings

 

$

185,951

   

$

134,446

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended December 31, 2017

 

(in thousands)

 

(unaudited)

 
   

GAAP

   

Stock-based
Compensation
Expense

   

Reversal of
Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

NON-GAAP

 

Operating expenses:

                                       

Sales and marketing

 

$

21,287

     

(926)

     

     

(36)

   

$

20,325

 

Research and development

   

13,477

     

(1,648)

     

     

   

$

11,829

 

General and administrative

   

8,255

     

(981)

     

     

   

$

7,274

 

Total operating expenses

 

$

43,019

     

(3,555)

     

     

(36)

   

$

39,428

 
                                                         

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended December 31, 2016

 

(in thousands)

 

(unaudited)

 
   

GAAP

   

Stock-based
Compensation
Expense

   

Reversal of
Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

NON-GAAP

 

Operating expenses:

                                       

Sales and marketing

 

$

18,002

     

(811)

     

     

   

$

17,191

 

Research and development

   

10,141

     

(1,120)

     

     

(3)

   

$

9,018

 

General and administrative

   

7,114

     

(802)

     

     

   

$

6,312

 

Total operating expenses

 

$

35,257

     

(2,733)

     

     

(3)

   

$

32,521

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Year Ended December 31, 2017

 

(in thousands)

 

(unaudited)

 
   

GAAP

   

Stock-based
Compensation
Expense

   

Reversal of
Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

NON-GAAP

 

Operating expenses:

                                       

Sales and marketing

 

$

83,716

     

(4,331)

     

256

     

(36)

   

$

79,605

 

Research and development

 

$

48,293

     

(6,023)

     

256

     

     

42,526

 

General and administrative

 

$

31,196

     

(3,958)

     

22

     

     

27,260

 

Total operating expenses

 

$

163,205

     

(14,312)

     

534

     

(36)

   

$

149,391

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Year Ended December 31, 2016

 

(in thousands)

 

(unaudited)

 
   

GAAP

   

Stock-based
Compensation
Expense

   

Reversal of
Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

NON-GAAP

 

Operating expenses:

                                       

Sales and marketing

 

$

69,991

     

(3,030)

     

57

     

   

$

67,018

 

Research and development

   

35,973

     

(3,862)

     

57

     

(9)

     

32,159

 

General and administrative

   

25,542

     

(2,820)

     

103

     

     

22,825

 

Total operating expenses

 

$

131,506

     

(9,712)

     

217

     

(9)

   

$

122,002

 

 

INSTRUCTURE, INC.

 

As If Reported Under ASC 606

 

(in thousands)

 

(unaudited)

 
   

Three Months Ended

   

Full Year
Ended

 
   

Dec. 31, 
2017

   

Sept. 30,
2017

   

June 30,
2017

   

March 31,
2017

   

Dec. 31,
2017

 

Consolidated Statements of Operations Data:

                                       

Revenue:

                                       

Subscription and support

 

$

40,551

   

$

38,290

   

$

33,713

   

$

31,554

   

$

144,108

 

Professional services and other

   

4,176

     

4,937

     

4,835

     

2,919

     

16,867

 

Total revenue

   

44,727

     

43,227

     

38,548

     

34,473

     

160,975

 

Cost of revenue:

                                       

Professional services and other

   

3,303

     

3,245

     

3,089

     

2,574

     

12,211

 

Operating expenses:

                                       

Sales and marketing

   

20,130

     

21,397

     

18,972

     

18,227

     

78,726

 

Loss from operations

   

(10,411)

     

(11,628)

     

(10,161)

     

(11,602)

     

(43,802)

 

Net loss

 

$

(9,679)

   

$

(11,412)

   

$

(10,202)

   

$

(11,555)

   

$

(42,848)

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS GUIDANCE

 

(in thousands)

 

(unaudited)

 
   

Three Months Ending

March 31,

   

Full Year Ending

December 31,

 
   

2018

   

2018

   

2018

   

2018

 
   

LOW

   

HIGH

   

LOW

   

HIGH

 

Net loss

 

$

(13,010)

   

$

(12,410)

   

$

(58,120)

   

$

(56,130)

 

Stock-based compensation

   

4,900

     

4,900

     

24,350

     

24,350

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(1,200)

     

(1,200)

 

Amortization of acquisition related intangibles

   

680

     

680

     

2,550

     

2,550

 

Change in fair value of warrant liability

   

30

     

30

     

120

     

120

 

Non-GAAP net loss

 

$

(7,400)

   

$

(6,800)

   

$

(32,300)

   

$

(30,310)

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS PER COMMON SHARE GUIDANCE

 

(unaudited)

 
   

Three Months Ending
March 31,

   

Full Year Ending
December 31,

 
   

2018

   

2018

   

2018

   

2018

 
   

LOW

   

HIGH

   

LOW

   

HIGH

 

Net loss per common share

 

$

(0.42)

   

$

(0.40)

   

$

(1.85)

   

$

(1.79)

 

Stock-based compensation

   

0.16

     

0.16

     

0.78

     

0.78

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(0.04)

     

(0.04)

 

Amortization of acquisition related intangibles

   

0.02

     

0.02

     

0.08

     

0.08

 

Change in fair value of warrant liability

 

0.00

   

0.00

   

0.00

   

0.00

 

Non-GAAP net loss per common share, basic and diluted

 

$

(0.24)

   

$

(0.22)

   

$

(1.03)

   

$

(0.97)

 

Non-GAAP weighted average common shares used in computing basic and diluted net loss per common share (in thousands)

   

31,000

     

31,000

     

31,400

     

31,400

 

 

 

SOURCE Instructure