Instructure Reports Second Quarter 2016 Financial Results

SALT LAKE CITY, Aug. 1, 2016 /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 second quarter ended June 30, 2016.

Instructure official logo (PRNewsFoto/Instructure)

"Our growth strategy is simple - increase our customer base, extend our relationships with existing customers, expand internationally and continue to extend our product offerings," said Josh Coates, CEO at Instructure. "In Q2, we successfully executed against this strategy and delivered 63% year-over-year top line growth while at the same time drove substantial margin improvements. Our continued innovation in delivering solutions that provide a new way for people to learn is fueling our business momentum and further driving long-term growth prospects for the company."

Second Quarter Financial Summary

(in thousands, except per share data)

 
   

Three Months
Ended June 30

   
   

2016

   

2015

   

Revenue

 

$

25,890

   

$

15,877

   

Gross Margin

                 

GAAP

   

70.5

%

   

65.2

%

 

Non-GAAP(1)

   

71.6

%

   

65.6

%

 

Operating Loss

                 

GAAP

 

$

(14,516)

   

$

(13,273)

   

Non-GAAP(1)

 

$

(12,069)

   

$

(12,513)

   

Net loss

                 

GAAP

 

$

(14,590)

   

$

(13,966)

   

Non-GAAP(1)

 

$

(12,143)

   

$

(12,535)

   

EPS

                 

GAAP(2)

 

$

(0.53)

   

$

(2.21)

   

Non-GAAP(1)(2)

 

$

(0.44)

   

$

(0.59)

   
               

(1)

Non-GAAP financial measures exclude stock-based compensation, accrual or reversal of payroll taxes related to secondary stock purchase transactions, amortization of acquisition related intangibles, and the change in fair value of the warrant liability.

(2)

Q2 2016 and Q2 2015 GAAP share count was 27.6M and 6.3M, respectively, due to the conversion of redeemable convertible preferred shares into common stock, which occurred on the closing of Instructure's IPO on November 18, 2015.  Non-GAAP share count assumes the conversion of the redeemable convertible preferred shares to common stock occurred at the beginning of the annual period.

Second Quarter 2016 Business Highlights

  • Instructure continued to grow its customer base in the second quarter. A few highlights include:
    • Higher Education – Canvas was selected as the primary learning management system by Ohio State University and University of North Carolina at Charlotte.
    • K-12 Schools – Canvas was chosen by the Broward County Public Schools in Florida with its more than 200,000 students, and the San Diego Unified School District which has 100,000 in its student body.
    • International – Canvas was selected by the University of Wolverhampton in the UK, Oslo National Academy of Arts in Norway and Melbourne High School in Australia.
    • Corporate – Bridge was chosen by Starz Entertainment because of its easy integration with their existing talent management system; Jet.com for the training of their 1,000 employees; by the Better Business Bureau to train employees across their more than 100 locations in the US and Canada and Yale School of Medicine for their employee training.

Business Outlook

Today, Instructure issued financial guidance for the third quarter and full year 2016. The financial guidance discussed below is on a non-GAAP basis, except for revenues, and excludes stock-based compensation expense, reversal of payroll tax expense on secondary stock purchase transactions, amortization of acquisition related intangibles, and the change in fair value of the warrant liability (see table below which reconciles these non-GAAP financial measures to the related GAAP measures).

For the third quarter ending September 30, 2016, Instructure expects revenue of approximately $29.9 million to $30.5 million, a non-GAAP net loss of ($11.9) million to ($11.4) million, and non-GAAP net loss per share of ($0.42) to ($0.40).

For the full year ending December 31, 2016, Instructure expects revenue of approximately $110.8 million to $112 million, up from previously stated guidance of $108 million to $110 million, a non-GAAP net loss of ($49) million to ($47.5) million, up from ($52) million to ($50) million, and non-GAAP net loss per share of ($1.75) to ($1.70), up from ($1.87) to ($1.81).

Conference Call Details:

Instructure will discuss its second quarter 2016 results today, August 1, 2016, via teleconference at 3:00 p.m. Mountain Time / 5:00 p.m. Eastern Time. The call may be accessed at (877) 604-9673 or (719) 325-4750, passcode 4052315.  A live webcast, as well as replay, of the conference call will be accessible at Instructure's investor relations website, http://ir.instructure.com.

Non-GAAP Financial Measures

In this release, Instructure's non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating loss, non-GAAP operating margin, non-GAAP net loss, 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.

These 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, and the change in fair value of the warrant liability. 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. Stock-based compensation from the employee sale of securities to investors, prior to our IPO, at a price above the current fair market value was dependent on our fair value assumptions and other factors that were beyond our control.
  • Accrual or reversal of payroll taxes related to secondary stock purchase transactions - In prior periods, operating expenses included employer payroll tax-related items on employee sales of securities to investors prior to our IPO. The amount of employer payroll tax-related items on these transactions was dependent on the fair market value of our stock. In the current period, operating expenses included the reversal of such payroll tax expense due to the reduction of the estimated liability.
  • 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.

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 third quarter of 2016 and full year 2016, 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 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 for the quarter ended March 31, 2016, which was filed with the Securities and Exchange Commission (the "SEC") on May 6, 2016 and other documents filed with the SEC and could cause actual results to vary from expectations. All information provided in this 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 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 2,000 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:

Lisa Laukkanen
The Blueshirt Group
(415) 217-4967
[email protected]

Heather Erickson
VP, Global Communications
Instructure
(866) 574-3127
[email protected]

INSTRUCTURE, INC.

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 
   
   

June 30,
2016

   

December 31,
2015

 
   

(unaudited)

       

Assets

               

Current assets:

               

Cash and cash equivalents

 

$

62,027

   

$

90,471

 

Short term marketable securities

   

     

325

 

Accounts receivable—net of allowances of $199 and $225 at June 30, 2016 and December 31, 2015, respectively

   

41,327

     

9,523

 

Prepaid expenses

   

4,983

     

5,010

 

Other current assets

   

583

     

614

 

Total current assets

   

108,920

     

105,943

 

Property and equipment, net

   

13,242

     

11,732

 

Goodwill

   

989

     

989

 

Intangible assets, net

   

576

     

444

 

Noncurrent prepaid expenses

   

785

     

749

 

Other assets

   

1,069

     

1,203

 

Total assets

 

$

125,581

   

$

121,060

 

Liabilities and stockholders' equity

               

Current liabilities:

               

Accounts payable

 

$

3,816

   

$

3,912

 

Accrued liabilities

   

10,428

     

8,852

 

Deferred rent

   

658

     

541

 

Deferred revenue

   

72,983

     

49,384

 

Total current liabilities

   

87,885

     

62,689

 

Deferred revenue, net of current portion

   

3,136

     

2,941

 

Deferred rent, net of current portion

   

8,721

     

9,078

 

Warrant liability

   

25

     

331

 

Other long term liabilities

   

65

     

402

 

Total liabilities

   

99,832

     

75,441

 

Commitments and contingencies

               

Stockholders' equity:

               

Common stock

   

3

     

4

 

Treasury stock

   

     

(1)

 

Additional paid-in capital

   

196,976

     

188,517

 

Accumulated other comprehensive income

   

     

 

Accumulated deficit

   

(171,230)

     

(142,901)

 

Total stockholders' equity

   

25,749

     

45,619

 

Total liabilities and stockholders' equity

 

$

125,581

   

$

121,060

 

 

 

INSTRUCTURE, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, except per share data)

 

(unaudited)

 
   
   

Three Months

Ended June 30,

   

Six Months

Ended June 30,

 
   

2016

   

2015

   

2016

   

2015

 

Revenue:

                               

Subscription and support

 

$

22,416

   

$

13,347

   

$

42,993

   

$

25,948

 

Professional services and other

   

3,474

     

2,530

     

6,196

     

4,554

 

Total Net revenue

   

25,890

     

15,877

     

49,189

     

30,502

 

Cost of Revenue:

                               

Subscription and support

   

5,586

     

3,937

     

11,023

     

7,613

 

Professional services and other

   

2,049

     

1,595

     

3,961

     

2,830

 

Total cost of revenue

   

7,635

     

5,532

     

14,984

     

10,443

 

Gross profit

   

18,255

     

10,345

     

34,205

     

20,059

 

Operating expenses:

                               

Sales and marketing

   

18,038

     

14,050

     

34,201

     

25,131

 

Research and development

   

8,730

     

5,645

     

16,535

     

10,916

 

General and administrative

   

6,003

     

3,923

     

11,739

     

13,969

 

Total operating expenses

   

32,771

     

23,618

     

62,475

     

50,016

 

Loss from operations

   

(14,516)

     

(13,273)

     

(28,270)

     

(29,957)

 

Other income (expense):

                               

Interest income

   

61

     

4

     

132

     

7

 

Interest expense

   

(12)

     

(22)

     

(23)

     

(44)

 

Change in fair value of warrant liability

   

     

(39)

     

62

     

(527)

 

Other income (expense), net

   

(56)

     

10

     

(131)

     

(109)

 

Total other income (expense)

   

(7)

     

(47)

     

40

     

(673)

 

Loss before income taxes

   

(14,523)

     

(13,320)

     

(28,230)

     

(30,630)

 

Income tax expense

   

(67)

     

(14)

     

(99)

     

(14)

 

Net loss

 

$

(14,590)

   

$

(13,334)

   

$

(28,329)

   

$

(30,644)

 

Deemed dividend to investors

   

     

(632)

     

     

(632)

 

Net loss attributable to common stockholders

 

$

(14,590)

   

$

(13,966)

   

$

(28,329)

   

$

(31,276)

 

Net loss per common share attributable to common stockholders, basic and diluted

 

$

(0.53)

   

$

(2.21)

   

$

(1.03)

   

$

(5.00)

 

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

   

27,610

     

6,316

     

27,456

     

6,261

 

 

 

INSTRUCTURE, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 

(unaudited)

 
   
   

Three Months
Ended June 30,

   

Six Months
Ended June 30,

 
   

2016

   

2015

   

2016

   

2015

 

Operating Activities:

                               

Net loss

 

$

(14,590)

   

$

(13,334)

   

$

(28,329)

   

$

(30,644)

 

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

                               

Depreciation of property and equipment

   

974

     

613

     

1,886

     

1,136

 

Amortization of intangible assets

   

87

     

78

     

164

     

155

 

Amortization of deferred financing costs

   

11

     

17

     

23

     

32

 

Change in fair value of warrant liability

   

     

39

     

(62)

     

527

 

Stock-based compensation

   

2,662

     

758

     

4,897

     

6,687

 

Other

   

(75)

     

84

     

(47)

     

111

 

Changes in assets and liabilities:

                               

Accounts receivable, net

   

(34,579)

     

(23,302)

     

(31,978)

     

(20,167)

 

Prepaid expenses and other assets

   

(2)

     

(1,863)

     

133

     

(2,451)

 

Accounts payable and accrued liabilities

   

1,182

     

3,263

     

1,697

     

3,945

 

Deferred revenue

   

35,296

     

20,633

     

23,794

     

13,839

 

Deferred rent

   

(205)

     

454

     

(240)

     

379

 

Other liabilities

   

(303)

     

(237)

     

(330)

     

(261)

 

Net cash used in operating activities

   

(9,542)

     

(12,797)

     

(28,392)

     

(26,712)

 

Investing Activities:

                               

Purchases of property and equipment

   

(1,142)

     

(2,212)

     

(3,410)

     

(3,139)

 

Purchases of intangible assets

   

(145)

     

     

(296)

     

 

Proceeds from disposal of property and equipment

   

10

     

9

     

18

     

18

 

Purchases of marketable securities

   

     

(1,153)

     

     

(1,153)

 

Maturities of marketable securities

   

     

     

325

     

500

 

Net cash used in investing activities

   

(1,277)

     

(3,356)

     

(3,363)

     

(3,774)

 

Financing Activities:

                               

Proceeds from exercise of redeemable convertible preferred stock warrants

   

     

     

     

250

 

Proceeds from issuance of common stock from employee equity plans

   

3,188

     

46

     

3,311

     

111

 

Payments of line of credit financing costs

   

     

(32)

     

     

(32)

 

Repayment of capital lease obligations

   

     

(76)

     

     

(150)

 

Net cash provided by financing activities

   

3,188

     

(62)

     

3,311

     

179

 

Net decrease in cash

   

(7,631)

     

(16,215)

     

(28,444)

     

(30,307)

 

Cash, beginning of period

   

69,658

     

29,823

     

90,471

     

43,915

 

Cash, end of period

 

$

62,027

   

$

13,608

   

$

62,027

   

$

13,608

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP GROSS MARGIN

 

(in thousands, except percentages)

 

(unaudited)

 
   
   

Three Months Ended

June 30,

   

Six Months Ended

June 30,

 
   

2016

   

2015

   

2016

   

2015

 

GAAP gross profit

 

$

18,255

   

$

10,345

   

$

34,205

   

$

20,059

 

Stock-based compensation

   

273

     

67

     

466

     

115

 

Non-GAAP gross margin

 

$

18,528

   

$

10,412

   

$

34,671

   

$

20,174

 
                                 

GAAP gross margin %

   

70.5

%

   

65.2

%

   

69.5

%

   

65.8

%

Non-GAAP gross margin %

   

71.6

%

   

65.6

%

   

70.5

%

   

66.1

%

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING LOSS

 

(in thousands)

 

(unaudited)

 
   
   

Three Months Ended
June 30,

   

Six Months Ended
June 30,

 
   

2016

   

2015

   

2016

   

2015

 

Loss from operations

 

$

(14,516)

   

$

(13,273)

   

$

(28,270)

   

$

(29,957)

 

Stock-based compensation

   

2,662

     

758

     

4,897

     

6,687

 

Payroll tax expense on secondary stock purchase transactions

   

     

     

     

1,327

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

(217)

     

     

(217)

     

 

Amortization of acquisition related intangibles

   

2

     

2

     

4

     

4

 

Non-GAAP operating loss

 

$

(12,069)

   

$

(12,513)

   

$

(23,586)

   

$

(21,939)

 
                                 

GAAP operating margin

   

-56

%

   

-84

%

   

-57

%

   

-98

%

Non-GAAP operating margin

   

-47

%

   

-79

%

   

-48

%

   

-72

%

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS

 

(in thousands)

 

(unaudited)

 
   
   

Three Months Ended
June 30,

   

Six Months Ended
June 30,

 
   

2016

   

2015

   

2016

   

2015

 

Net Loss

 

$

(14,590)

   

$

(13,334)

   

$

(28,329)

   

$

(30,644)

 

Stock-based compensation

   

2,662

     

758

     

4,897

     

6,687

 

Payroll tax expense on secondary stock purchase transactions

   

     

     

     

1,327

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

(217)

     

     

(217)

     

 

Amortization of acquisition related intangibles

   

2

     

2

     

4

     

4

 

Change in fair value of warrant liability

   

     

39

     

(62)

     

527

 

Non-GAAP net loss

 

$

(12,143)

   

$

(12,535)

   

$

(23,707)

   

$

(22,099)

 

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

 

$

(0.44)

   

$

(0.59)

   

$

(0.86)

   

$

(1.04)

 

Non-GAAP weighted average common shares used in computing basic and diluted net loss per common share(1)

   

27,610

     

21,293

     

27,456

     

21,238

 
                                   

(1)

Non-GAAP weighted average common shares used in computing basic and diluted net loss per common share on a non-GAAP basis assumes that the redeemable convertible preferred shares that converted to common shares upon execution of our IPO were outstanding for the full year.

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP WEIGHTED AVERAGE SHARES OUTSTANDING

 

(in thousands)

 

 (unaudited)

 
   
   

Three Months Ended
June 30,

   

Six Months Ended
June 30,

 
   

2016

   

2015

   

2016

   

2015

 

GAAP weighted average common shares, basic and diluted

   

27,610

     

6,316

     

27,456

     

6,261

 

Effect of redeemable convertible preferred stock conversion (assuming converted shares were outstanding for the full year)

   

     

14,977

     

     

14,977

 

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

   

27,610

     

21,293

     

27,456

     

21,238

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF 12-MONTH BILLINGS

 

(in thousands)

 

 (unaudited) 

 
   
   

Trailing Twelve Months Ended
June 30,

 
   

2016

   

2015

 

Total net revenue

 

$

91,880

   

$

56,678

 
                 

Current deferred revenue

               

Beginning balance

   

42,978

     

29,483

 

Ending balance

   

72,983

     

42,978

 

Net change in current deferred revenue

   

30,005

     

13,495

 
                 

Long term deferred revenue

               

Beginning balance

   

2,815

     

2,559

 

Ending balance

   

3,136

     

2,815

 

Net change in long term deferred revenue

   

321

     

256

 
                 

Total 12-month billings

 

$

122,206

   

$

70,429

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended June 30, 2016

 

(in thousands)

 

 (unaudited)

 
   
   

GAAP

   

Stock-based
Compensation
Expense

   

Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

NON-GAAP

 

Operating expenses:

                                       

Sales and marketing

 

$

18,038

     

(789)

     

57

     

   

$

17,306

 

Research and development

   

8,730

     

(935)

     

57

     

(2)

     

7,850

 

General and administrative

   

6,003

     

(665)

     

103

     

     

5,441

 

Total operating expenses

 

$

32,771

     

(2,389)

     

217

     

(2)

   

$

30,597

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended June 30, 2015

 

(in thousands)

 

 (unaudited)

 
   
   

GAAP

   

Stock-based
Compensation
Expense

   

Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

NON-GAAP

 

Operating expenses:

                                       

Sales and marketing

 

$

14,050

     

(241)

     

     

   

$

13,809

 

Research and development

   

5,645

     

(287)

     

     

(2)

     

5,356

 

General and administrative

   

3,923

     

(163)

     

     

     

3,760

 

Total operating expenses

 

$

23,618

     

(691)

     

     

(2)

   

$

22,925

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Six Months Ended June 30, 2016

 

(in thousands)

 

 (unaudited)

 
   
   

GAAP

   

Stock-based
Compensation
Expense

   

Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

NON-GAAP

 

Operating expenses:

                                       

Sales and marketing

 

$

34,201

     

(1,444)

     

57

     

   

$

32,814

 

Research and development

   

16,535

     

(1,720)

     

57

     

(4)

     

14,868

 

General and administrative

   

11,739

     

(1,267)

     

103

     

     

10,575

 

Total operating expenses

 

$

62,475

     

(4,431)

     

217

     

(4)

   

$

58,257

 

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Six Months Ended June 30, 2015

 

(in thousands)

 

(unaudited) 

 
   

GAAP

   

Stock-based
Compensation
Expense

   

Payroll Tax
Associated
with Equity
Transactions

   

Amortization
of acquired
intangibles

   

NON-GAAP

 

Operating expenses:

                                       

Sales and marketing

 

$

25,131

     

(422)

     

     

   

$

24,709

 

Research and development

   

10,916

     

(527)

     

     

(4)

     

10,385

 

General and administrative

   

13,969

     

(5,623)

     

(1,327)

     

     

7,019

 

Total operating expenses

 

$

50,016

     

(6,572)

     

(1,327)

     

(4)

   

$

42,113

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP GUIDANCE - NET LOSS

 

(in thousands)

 

(unaudited)

 
   
   

Three Months Ending
September 30,

   

Full Year Ending
December 31,

 
   

2016

   

2016

   

2016

   

2016

 
   

LOW

   

HIGH

   

LOW

   

HIGH

 

Net loss

 

$

(14,623)

   

$

(14,123)

   

$

(59,287)

   

$

(57,787)

 

Stock-based compensation

   

2,721

     

2,721

     

10,557

     

10,557

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

-

     

-

     

(217)

     

(217)

 

Amortization of acquisition related intangibles

   

2

     

2

     

9

     

9

 

Change in fair value of warrant liability

   

-

     

-

     

(62)

     

(62)

 

Non-GAAP net loss

 

$

(11,900)

   

$

(11,400)

   

$

(49,000)

   

$

(47,500)

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP GUIDANCE - NET LOSS PER COMMON SHARE

 

(unaudited)

 
   
   

Three Months Ending
September 30,

   

Full Year Ending
December 31,

 
   

2016

   

2016

   

2016

   

2016

 
   

LOW

   

HIGH

   

LOW

   

HIGH

 

Net loss per common share

 

$

(0.52)

   

$

(0.50)

   

$

(2.12)

   

$

(2.07)

 

Stock-based compensation

   

0.10

     

0.10

     

0.38

     

0.38

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

-

     

-

     

(0.01)

     

(0.01)

 

Amortization of acquisition related intangibles

   

0.00

     

0.00

     

0.00

     

0.00

 

Change in fair value of warrant liability

   

-

     

-

     

(0.00)

     

(0.00)

 

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

 

$

(0.42)

   

$

(0.40)

   

$

(1.75)

   

$

(1.70)

 

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

   

28,100

     

28,100

     

27,900

     

27,900

 

 

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SOURCE Instructure