Instructure Reports Fourth Quarter and Full Year 2018 Financial Results

SALT LAKE CITY, Feb. 19, 2019 /PRNewswire/ -- Instructure, Inc. (NYSE: INST), the leading software-as-a-service (SaaS) technology company that helps people learn and develop, from their first day of school to their last day of work, today announced its financial results for the fourth quarter and full year ended December 31, 2018.

"In 2018, we grew revenue 30% year over year, enhanced our operating structure, and defined and launched our growth initiatives," said Dan Goldsmith, CEO of Instructure. "With a strong management team in place and a clear focus on growth and operational excellence, Instructure is well-positioned for success in 2019 and beyond."

Fourth Quarter and Full Year Financial Summary

 

(in thousands, except per share data)

 
   
   

Three Months

Ended December 31,

   

Year Ended December 31,

 
   

2018

   

2017

   

2018

   

2017

 
   

(unaudited)

   

(unaudited)

                 

Revenue

 

$

56,251

   

$

44,755

   

$

209,544

   

$

160,975

 

Gross Margin

                               

GAAP

   

69.6

%

   

70.3

%

   

70.5

%

   

71.1

%

Non-GAAP(1)

   

71.3

%

   

71.5

%

   

72.2

%

   

72.0

%

Operating Loss

                               

GAAP

   

(8,259)

     

(10,411)

     

(44,773)

     

(43,802)

 

Non-GAAP(1)

   

(1,012)

     

(6,277)

     

(21,898)

     

(28,495)

 

Operating Margin

                               

GAAP

   

-14.7

%

   

-23.3

%

   

-21.4

%

   

-27.2

%

Non-GAAP(1)

   

-1.8

%

   

-14.0

%

   

-10.5

%

   

-17.7

%

Net loss

                               

GAAP

   

(7,587)

     

(9,744)

     

(43,465)

     

(43,084)

 

Non-GAAP(1)

   

(340)

     

(6,189)

     

(20,712)

     

(28,258)

 

EPS

                               

GAAP

 

$

(0.22)

   

$

(0.32)

   

$

(1.27)

   

$

(1.47)

 

Non-GAAP(1)

 

$

(0.01)

   

$

(0.20)

   

$

(0.60)

   

$

(0.96)

 

__________

 

(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 mark-to-market liabilities, the change in fair value of the contingent liability and the deferred income tax benefit.

Fourth Quarter 2018 Business Highlights

  • Instructure continued to expand its customer base in the fourth quarter. A few highlights include:
    • Corporate – ETQ, a leading provider of quality and compliance management software, selected Bridge Learn to train their over 100,000 customers. Deloitte España will be using Bridge Learn not only for internal employee training, but also to deliver cyber security training to their clients. Chewy, the online pet retailer, chose Bridge Learn for their customer success team of 10,000 employees. In Canada, lululemon athletica selected Bridge Learn and Arc to assist them with employee training and development. And finally, The Pacific Financial Group chose Bridge Learn and Practice for their 3,000 financial representatives and clients.
    • U.S. Education – UC San Diego selected Canvas for their over 34,000 students and Harvard Medical Schoolselected Practice in support of their global training for clinical research programs.
    • International Education – In Mexico, Canvas was selected by Tecnológico de Monterrey for their 200,000 learners. In Australia, the University of Melbourne and the University of Technology Sydney chose Canvas for their collective 80,000 students. Additionally, Our Lady of Fatima University in the Philippines with 70,000 learners and the Wine and Spirit Education Trust in the United Kingdom with 30,000 learners also selected Canvas.

Business Outlook

Today, Instructure issued financial guidance for the first quarter and full year 2019. 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 mark-to-market liabilities, the change in fair value of the contingent 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.

For the first quarter ending March 31, 2019, Instructure expects revenue of approximately $56.9 million to $57.5 million, a non-GAAP net loss of ($5.6) million to ($5.0) million, and non-GAAP net loss per common share of ($0.16) to ($0.14).

For the full year ending December 31, 2019, Instructure expects revenue of approximately $256 million to $260 million, non-GAAP net loss of ($23.5) million to ($21.5) million, and non-GAAP net loss per common share of ($0.65) to ($0.59).

Conference Call Details

Instructure will discuss its fourth quarter and full year 2018 results today, February 19, 2019, via teleconference at 3:00 p.m. Mountain Time / 5:00 p.m. Eastern Time. The call may be accessed at (877) 201-0168 or (647) 788-4901, passcode 8690028. 

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 http://bit.ly/INST_Q42018EarningsCall.

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, non-GAAP free cash flow 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 mark-to-market liabilities, the change in fair value of the contingent 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 mark-to-market liabilities - 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.
  • Change in fair value of the contingent liability - Under GAAP, we are required to record mark-to-market adjustments for the change in the fair value of the liability for contingent consideration related to an acquisition. The expense or gain recognized 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 sheets 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 2019 and for the full year ending December 31, 2019, 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, 2018, which was filed with the Securities and Exchange Commission (the "SEC") on October 31, 2018, 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 the leading software-as-a-service (SaaS) technology company that helps people learn and develop, from their first day of school to their last day of work. Its software solutions include Canvas, the learning platform that simplifies teaching and elevates learning, and Bridge, the employee development and engagement solution for people-focused companies. To date, Instructure has connected millions of educators and learners at more than 4,000 educational institutions and corporations throughout the world. Learn more about Canvas for higher ed and K–12 and Bridge for companies at www.Instructure.com.   

Contacts:
Keaton Godfrey
Director, Investor Relations
Instructure
(866) 574-3127
[email protected]

Becky Frost 
Senior Director, Corporate Communications
Instructure
(801) 869-5017
[email protected]

INSTRUCTURE, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands)

 
   

December 31,

2018

   

December 31,

2017

Assets

             

Current assets:

             

Cash and cash equivalents

 

$

94,320

   

$

35,693

Short term marketable securities

   

58,630

     

5,697

Accounts receivable—net of allowances of $1,092 and $318 at December 31, 2018 and 2017, respectively

   

35,514

     

34,312

Prepaid expenses

   

13,918

     

11,492

Deferred commissions

   

8,226

     

7,086

Other current assets

   

2,019

     

2,419

Total current assets

   

212,627

     

96,699

Property and equipment, net

   

27,388

     

23,926

Goodwill

   

12,354

     

12,354

Intangible assets, net

   

6,262

     

9,048

Noncurrent prepaid expenses

   

3,516

     

2,939

Deferred commissions, net of current portion

   

11,404

     

11,160

Other assets

   

446

     

497

Total assets

 

$

273,997

   

$

156,623

Liabilities and stockholders' equity

             

Current liabilities:

             

Accounts payable

 

$

3,581

   

$

2,892

Accrued liabilities

   

9,809

     

13,702

Deferred rent

   

1,329

     

936

Deferred revenue

   

117,298

     

99,773

Total current liabilities

   

132,017

     

117,303

Deferred revenue, net of current portion

   

3,372

     

1,889

Deferred rent, net of current portion

   

10,150

     

9,201

Other long-term liabilities

   

20

     

1,286

Total liabilities

   

145,559

     

129,679

Commitments and contingencies

             

Stockholders' equity:

             

Common stock

   

3

     

3

Additional paid-in capital

   

395,865

     

250,899

Accumulated other comprehensive loss

   

(8)

     

(1)

Accumulated deficit

   

(267,422)

     

(223,957)

Total stockholders' equity

   

128,438

     

26,944

Total liabilities and stockholders' equity

 

$

273,997

   

$

156,623

INSTRUCTURE, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 
   

Three Months

Ended December 31,

   

Year Ended

December 31,

   

2018

   

2017

   

2018

   

2017

   

(unaudited)

   

(unaudited)

               

Revenue:

                             

Subscription and support

 

$

50,962

   

$

40,551

   

$

188,501

   

$

144,108

Professional services and other

   

5,289

     

4,204

     

21,043

     

16,867

Total Net revenue

   

56,251

     

44,755

     

209,544

     

160,975

Cost of Revenue:

                             

Subscription and support

   

13,382

     

10,001

     

46,706

     

34,351

Professional services and other

   

3,740

     

3,303

     

15,137

     

12,211

Total cost of revenue

   

17,122

     

13,304

     

61,843

     

46,562

Gross profit

   

39,129

     

31,451

     

147,701

     

114,413

Operating expenses:

                             

Sales and marketing

   

23,811

     

20,130

     

97,481

     

78,726

Research and development

   

14,281

     

13,477

     

59,391

     

48,293

General and administrative

   

9,296

     

8,255

     

35,602

     

31,196

Total operating expenses

   

47,388

     

41,862

     

192,474

     

158,215

Loss from operations

   

(8,259)

     

(10,411)

     

(44,773)

     

(43,802)

Other income (expense):

                             

Interest income

   

885

     

162

     

2,413

     

361

Interest expense

   

(14)

     

(37)

     

(68)

     

(55)

Other income (expense), net

   

(167)

     

4

     

(698)

     

257

Total other income, net

   

704

     

129

     

1,647

     

563

Loss before income taxes

   

(7,555)

     

(10,282)

     

(43,126)

     

(43,239)

Income tax expense (benefit)

   

(32)

     

538

     

(339)

     

155

Net loss

 

$

(7,587)

   

$

(9,744)

   

$

(43,465)

   

$

(43,084)

Net loss per common share, basic and diluted

 

$

(0.22)

   

$

(0.32)

   

$

(1.27)

   

$

(1.47)

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

   

35,175

     

30,237

     

34,248

     

29,401

INSTRUCTURE, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 
   
   

Three Months

Ended December 31,

   

Year Ended

December 31,

 
   

2018

   

2017

   

2018

   

2017

 
   

(unaudited)

   

(unaudited)

                 

Operating Activities:

                               

Net loss

 

$

(7,587)

   

$

(9,744)

   

$

(43,465)

   

$

(43,084)

 

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

                               

Depreciation of property and equipment

   

2,311

     

1,865

     

8,749

     

6,187

 

Amortization of intangible assets

   

674

     

242

     

2,786

     

572

 

Amortization of deferred financing costs

   

4

     

7

     

19

     

31

 

Change in fair value of mark-to-market liabilities

   

     

(1)

     

(1,266)

     

97

 

Stock-based compensation

   

6,645

     

3,963

     

22,747

     

15,670

 

Other

   

320

     

25

     

(437)

     

(17)

 

Changes in assets and liabilities:

                               

Accounts receivable, net

   

11,368

     

2,388

     

(2,643)

     

(14,882)

 

Prepaid expenses and other assets

   

(2,385)

     

(7,308)

     

(2,553)

     

(9,176)

 

Accounts payable and accrued liabilities

   

(13,046)

     

(7,457)

     

(2,805)

     

740

 

Deferred revenue

   

(18,003)

     

(8,929)

     

19,008

     

26,763

 

Deferred rent

   

(261)

     

1,055

     

1,342

     

992

 

Deferred commissions

   

(212)

     

(1,157)

     

(1,384)

     

(4,990)

 

Other liabilities

   

     

     

     

(32)

 

Net cash provided by (used in) operating activities

   

(20,172)

     

(25,051)

     

98

     

(21,129)

 

Investing Activities:

                               

Purchases of property and equipment

   

(2,244)

     

(4,920)

     

(11,132)

     

(15,750)

 

Purchases of intangible assets

   

     

(9)

     

     

(310)

 

Proceeds from disposal of property and equipment

   

10

     

26

     

88

     

76

 

Purchases of marketable securities

   

(21,690)

     

(2,997)

     

(113,860)

     

(11,085)

 

Maturities of marketable securities

   

23,750

     

5,400

     

61,600

     

29,300

 

Net cash provided by (used in) investing activities

   

(174)

     

(2,500)

     

(63,304)

     

2,231

 

Financing Activities:

                               

Proceeds from common stock offerings, net of offering costs

   

     

     

109,789

     

 

Proceeds from issuance of common stock from employee equity plans

   

3,707

     

4,606

     

12,467

     

10,375

 

Shares repurchased for tax withholdings on vesting of restricted stock

   

(72)

     

(78)

     

(405)

     

(292)

 

Payments for financing costs

   

     

     

(18)

     

(31)

 

Net cash provided by financing activities

   

3,635

     

4,528

     

121,833

     

10,052

 

Net increase (decrease) in cash

   

(16,711)

     

(23,023)

     

58,627

     

(8,846)

 

Cash, beginning of period

   

111,031

     

58,716

     

35,693

     

44,539

 

Cash, end of period

 

$

94,320

   

$

35,693

   

$

94,320

   

$

35,693

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP GROSS MARGIN

 

(in thousands, except percentages)

 

(unaudited)

 
   
   

Three Months

Ended December 31,

   

Year Ended

December 31,

 
   

2018

   

2017

   

2018

   

2017

 

GAAP gross profit

 

$

39,129

   

$

31,451

   

$

147,701

   

$

114,413

 

Stock-based compensation

   

632

     

408

     

2,210

     

1,358

 

Amortization of acquisition related intangibles

   

332

     

135

     

1,339

     

135

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(49)

     

 

Non-GAAP gross margin

 

$

40,093

   

$

31,994

   

$

151,201

   

$

115,906

 
                                 

GAAP gross margin %

   

69.6

%

   

70.3

%

   

70.5

%

   

71.1

%

Non-GAAP gross margin %

   

71.3

%

   

71.5

%

   

72.2

%

   

72.0

%

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING LOSS

 

(in thousands, except percentages)

 

(unaudited)

 
   
   

Three Months

Ended December 31,

   

Year Ended

December 31,

 
   

2018

   

2017

   

2018

   

2017

 

Loss from operations

 

$

(8,259)

   

$

(10,411)

   

$

(44,773)

   

$

(43,802)

 

Stock-based compensation

   

6,645

     

3,963

     

22,747

     

15,670

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(1,225)

     

(534)

 

Amortization of acquisition related intangibles

   

602

     

171

     

2,497

     

171

 

Change in fair value of contingent liability

   

     

     

(1,144)

     

 

Non-GAAP operating loss

 

$

(1,012)

   

$

(6,277)

   

$

(21,898)

   

$

(28,495)

 
                                 

GAAP operating margin

   

-14.7

%

   

-23.3

%

   

-21.4

%

   

-27.2

%

Non-GAAP operating margin

   

-1.8

%

   

-14.0

%

   

-10.5

%

   

-17.7

%

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS

 

(in thousands, except per share data)

 

(unaudited)

 
   
   

Three Months

Ended December 31,

   

Year Ended

December 31,

 
   

2018

   

2017

   

2018

   

2017

 

Net loss

 

$

(7,587)

   

$

(9,744)

   

$

(43,465)

   

$

(43,084)

 

Stock-based compensation

   

6,645

     

3,963

     

22,747

     

15,670

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(1,225)

     

(534)

 

Amortization of acquisition related intangibles

   

602

     

171

     

2,497

     

171

 

Change in fair value of mark-to-market liabilities

   

     

(1)

     

(122)

     

97

 

Change in fair value of contingent liability

   

     

     

(1,144)

     

 

Deferred income tax benefit from business combination

   

     

(578)

     

     

(578)

 

Non-GAAP net loss

 

$

(340)

   

$

(6,189)

   

$

(20,712)

   

$

(28,258)

 

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

 

$

(0.01)

   

$

(0.20)

   

$

(0.60)

   

$

(0.96)

 

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

   

35,175

     

30,237

     

34,248

     

29,401

 

INSTRUCTURE, INC.

 

RECONCILIATION OF FREE CASH FLOW

 

(in thousands)

 

(unaudited)

 
   
   

Three Months

Ended December 31,

   

Year Ended

December 31,

 
   

2018

   

2017

   

2018

   

2017

 

Net cash provided by (used in) operating activities

 

$

(20,172)

   

$

(25,051)

   

$

98

   

$

(21,129)

 

Purchase of property and equipment and intangibles

   

(2,244)

     

(4,929)

     

(11,132)

     

(16,060)

 

Proceeds from disposals of property and equipment

   

10

     

26

     

88

     

76

 

Free cash flow

 

$

(22,406)

   

$

(29,954)

   

$

(10,946)

   

$

(37,113)

 

INSTRUCTURE, INC.

 

RECONCILIATION OF 12-MONTH BILLINGS

 

(in thousands)

 

(unaudited)

 
   
   

Trailing Twelve Months Ended

December 31,

 
   

2018

   

2017

 

Total net revenue

 

$

209,544

   

$

160,975

 
                 

Total deferred revenue

               

Beginning balance

   

101,662

     

74,637

 

Ending balance

   

120,669

     

101,662

 

Net change in current deferred revenue

   

19,007

     

27,025

 
                 

Total 12-month billings

 

$

228,551

   

$

188,000

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended December 31, 2018

 

(in thousands)

 

(unaudited)

 
   
   

GAAP

   

Stock-based
Compensation
Expense

   

Reversal of
Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

Change in
fair value of
contingent
earn-out
liability

   

NON-GAAP

 

Operating expenses:

                                               

Sales and marketing

 

$

23,811

     

(1,618)

     

     

(270)

     

   

$

21,923

 

Research and development

   

14,281

     

(2,385)

     

     

     

     

11,896

 

General and administrative

   

9,296

     

(2,010)

     

     

     

     

7,286

 

Total operating expenses

 

$

47,388

     

(6,013)

     

     

(270)

     

   

$

41,105

 

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

   

Change in
fair value of
contingent
earn-out
liability

   

NON-GAAP

 

Operating expenses:

                                               

Sales and marketing

 

$

20,130

     

(926)

     

     

(36)

     

   

$

19,168

 

Research and development

   

13,477

     

(1,648)

     

     

     

     

11,829

 

General and administrative

   

8,255

     

(981)

     

     

     

     

7,274

 

Total operating expenses

 

$

41,862

     

(3,555)

     

     

(36)

     

   

$

38,271

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Year Ended December 31, 2018

 

(in thousands)

 

(unaudited)

 
   
   

GAAP

   

Stock-based
Compensation
Expense

   

Reversal of
Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

Change in
fair value of
contingent
earn-out
liability

   

NON-GAAP

 

Operating expenses:

                                               

Sales and marketing

 

$

97,481

     

(6,022)

     

430

     

(1,158)

     

   

$

90,731

 

Research and development

   

59,391

     

(8,338)

     

616

     

     

     

51,669

 

General and administrative

   

35,602

     

(6,177)

     

130

     

     

1,144

     

30,699

 

Total operating expenses

 

$

192,474

     

(20,537)

     

1,176

     

(1,158)

     

1,144

   

$

173,099

 

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

   

Change in
fair value of
contingent
earn-out
liability

   

NON-GAAP

 

Operating expenses:

                                               

Sales and marketing

 

$

78,726

     

(4,331)

     

256

     

(36)

     

   

$

74,615

 

Research and development

   

48,293

     

(6,023)

     

256

     

     

     

42,526

 

General and administrative

   

31,196

     

(3,958)

     

22

     

     

     

27,260

 

Total operating expenses

 

$

158,215

     

(14,312)

     

534

     

(36)

     

   

$

144,401

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS GUIDANCE

 

(in thousands)

 

(unaudited)

 
   
   

Three Months Ending

March 31,

   

Full Year Ending

December 31,

 
   

2019

   

2019

   

2019

   

2019

 
   

LOW

   

HIGH

   

LOW

   

HIGH

 

Net loss

 

$

(17,225)

   

$

(16,625)

   

$

(74,360)

   

$

(72,330)

 

Stock-based compensation

   

11,025

     

11,025

     

49,775

     

49,775

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(1,325)

     

(1,325)

 

Amortization of acquisition related intangibles

   

600

     

600

     

2,410

     

2,410

 

Non-GAAP net loss

 

$

(5,600)

   

$

(5,000)

   

$

(23,500)

   

$

(21,470)

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS PER COMMON SHARE GUIDANCE

 

(unaudited)

 
   
   

Three Months Ending

March 31,

   

Full Year Ending

December 31,

 
   

2019

   

2019

   

2019

   

2019

 
   

LOW

   

HIGH

   

LOW

   

HIGH

 

Net loss per common share

 

$

(0.49)

   

$

(0.47)

   

$

(2.06)

   

$

(2.00)

 

Stock-based compensation

   

0.31

     

0.31

     

1.38

     

1.38

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(0.04)

     

(0.04)

 

Amortization of acquisition related intangibles

   

0.02

     

0.02

     

0.07

     

0.07

 

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

 

$

(0.16)

   

$

(0.14)

   

$

(0.65)

   

$

(0.59)

 

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

   

35,500

     

35,500

     

36,100

     

36,100

 

SOURCE Instructure