Instructure Reports Third Quarter 2017 Financial Results

SALT LAKE CITY, Oct. 30, 2017 /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 third quarter ended September 30, 2017.

Instructure official logo (PRNewsFoto/Instructure)

"We had a solid third quarter, delivering 42% revenue growth while posting continued improvements to our operating margin," said Josh Coates, CEO at Instructure. "Strong adoption of both Canvas and Bridge as well as exceptional customer satisfaction give us confidence in our ability to continue to expand our leadership position."
 
"Earlier this month we introduced our newest HCM module Bridge Perform, a platform for facilitating meaningful employee-manager interaction. We are excited about the positive response we have received to date and look forward to expanding our presence in the HCM market."

Third Quarter Financial Summary

 

(in thousands, except per share data)

 
   
   

Three Months

Ended September 30,

 
   

2017

   

2016

 
   

(unaudited)

   

(unaudited)

 

Revenue

 

$

42,948

   

$

30,145

 

Gross Margin

               

GAAP

   

71.0

%

   

71.3

%

Non-GAAP(1)

   

71.8

%

   

72.2

%

Operating Loss

               

GAAP

   

(12,562)

     

(12,267)

 

Non-GAAP(1)

   

(8,295)

     

(9,461)

 

Operating Margin

               

GAAP

   

-29.2

%

   

-40.7

%

Non-GAAP(1)

   

-19.3

%

   

-31.4

%

Net loss

               

GAAP

   

(12,373)

     

(12,317)

 

Non-GAAP(1)

   

(8,091)

     

(9,521)

 

EPS

               

GAAP

 

$

(0.42)

   

$

(0.44)

 

Non-GAAP(1)

 

$

(0.27)

   

$

(0.34)

 
                 
 

(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, and the change in fair value of the warrant liability.

Third Quarter 2017 Business Highlights

  • Instructure continued to expand its customer base in the third quarter. A few highlights include:
    • U.S. Higher Education and K-12 Schools – Canvas was selected as the statewide LMS by the Utah Education and Telehealth Network for all public K-12 school districts and charter schools, and by the Wyoming Department of Education for over 100,000 K-12 and higher education students. Within the U.S. higher education market, Canvas was chosen by Tufts University for their 11,000 students. Additionally, the Georgia Institute of Technology and the University of Colorado Boulder chose Canvas as their LMS for their 25,000 and 29,000 students, respectively.
    • International – Canvas was chosen by the Centro de Integração Empresa-Escola (CIEE) for their 36,000 learners and by the Swinburne University of Technology for their 24,000 students. Additionally, the Pontifical Catholic University of Minas Gerais, one of the top private universities in Brazil and one of the largest Catholic universities in the world, selected Canvas for their entire e-learning department of 16,000 students. 
    • Corporate – Bridge Learn was selected by Discovery Communications, Clemson University, and Banco BTG Pactual, a global financial company that specializes in Investment Banking, Wealth Management and Asset Management.

Business Outlook

Today, Instructure issued financial guidance for the fourth quarter and full year 2017. 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, and the change in fair value of the warrant liability (see tables below that reconcile these non-GAAP financial measures to the related GAAP measures).

For the fourth quarter ending December 31, 2017, Instructure expects revenue of approximately $41.0 million to $41.6 million, a non-GAAP net loss of ($8.8) million to ($8.2) million, and non-GAAP net loss per share of ($0.29) to ($0.27) per common share.

For the full year ending December 31, 2017, Instructure expects revenue of approximately $156.0 million to $156.6 million, up from previously stated guidance of $152.9 million to $154.1 million, non-GAAP net loss of ($35.6) million to ($35.0) million, up from ($36.8) million to ($35.8) million, and non-GAAP net loss per share of ($1.21) to ($1.19) per common share, up from ($1.26) to ($1.23).

Conference Call Details:

Instructure will discuss its third quarter 2017 results today, October 30, 2017, via teleconference at 3:00 p.m. Mountain Time / 5:00 p.m. Eastern Time. The call may be accessed at (800) 967-7137, or outside the U.S. at (719) 325-2145, conference ID 5036293. 

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/INSTEarningsCall.

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, 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.
  • 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.

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 fourth quarter of 2017 and for the full year ending December 31, 2017, 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 June 30, 2017, which was filed with the Securities and Exchange Commission (the "SEC") on August 2, 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]

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

 

INSTRUCTURE, INC.

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands)

 
   
   

September 30,

2017

   

December 31,

2016

 
   

(unaudited)

         

Assets

               

Current assets:

               

Cash and cash equivalents

 

$

58,716

   

$

44,539

 

Short term marketable securities

   

8,089

     

23,895

 

Accounts receivable—net of allowances of $355 and $241 at September 30, 2017 and December 31, 2016 respectively

   

35,465

     

18,072

 

Prepaid expenses

   

6,935

     

5,434

 

Other current assets

   

918

     

936

 

Total current assets

   

110,123

     

92,876

 

Property and equipment, net

   

20,907

     

14,733

 

Goodwill

   

989

     

989

 

Intangible assets, net

   

731

     

760

 

Noncurrent prepaid expenses

   

1,757

     

984

 

Other assets

   

974

     

994

 

Total assets

 

$

135,481

   

$

111,336

 

Liabilities and stockholders' equity (deficit)

               

Current liabilities:

               

Accounts payable

 

$

10,146

   

$

5,374

 

Accrued liabilities

   

13,771

     

10,905

 

Deferred rent

   

897

     

773

 

Deferred revenue

   

109,280

     

72,747

 

Total current liabilities

   

134,094

     

89,799

 

Deferred revenue, net of current portion

   

3,942

     

3,144

 

Deferred rent, net of current portion

   

8,185

     

8,372

 

Warrant liability

   

123

     

25

 

Other long term liabilities

   

     

32

 

Total liabilities

   

146,344

     

101,372

 

Commitments and contingencies

               

Stockholders' equity (deficit):

               

Common stock

   

3

     

3

 

Additional paid-in capital

   

223,957

     

206,442

 

Accumulated other comprehensive income

   

(1)

     

(12)

 

Accumulated deficit

   

(234,822)

     

(196,469)

 

Total stockholders' equity (deficit)

   

(10,863)

     

9,964

 

Total liabilities and stockholders' equity (deficit)

 

$

135,481

   

$

111,336

 

 

INSTRUCTURE, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, except per share data)

 
   
   

Three Months

Ended September 30,

   

Nine Months

Ended September 30,

 
   

2017

   

2016

   

2017

   

2016

 
   

(unaudited)

   

(unaudited)

   

(unaudited)

   

(unaudited)

 

Revenue:

                               

Subscription and support

 

$

37,427

   

$

25,814

   

$

100,590

   

$

68,807

 

Professional services and other

   

5,521

     

4,331

     

14,381

     

10,527

 

Total Net revenue

   

42,948

     

30,145

     

114,971

     

79,334

 

Cost of Revenue:

                               

Subscription and support

   

9,278

     

6,312

     

24,350

     

17,335

 

Professional services and other

   

3,192

     

2,326

     

8,729

     

6,287

 

Total cost of revenue

   

12,470

     

8,638

     

33,079

     

23,622

 

Gross profit

   

30,478

     

21,507

     

81,892

     

55,712

 

Operating expenses:

                               

Sales and marketing

   

22,129

     

17,788

     

62,429

     

51,989

 

Research and development

   

12,577

     

9,297

     

34,816

     

25,832

 

General and administrative

   

8,334

     

6,689

     

22,941

     

18,428

 

Total operating expenses

   

43,040

     

33,774

     

120,186

     

96,249

 

Loss from operations

   

(12,562)

     

(12,267)

     

(38,294)

     

(40,537)

 

Other income (expense):

                               

Interest income

   

84

     

104

     

199

     

236

 

Interest expense

   

     

(31)

     

(18)

     

(54)

 

Change in fair value of warrant liability

   

(15)

     

(10)

     

(98)

     

52

 

Other income (expense), net

   

191

     

(103)

     

318

     

(234)

 

Total other income (expense)

   

260

     

(40)

     

401

     

 

Loss before income taxes

   

(12,302)

     

(12,307)

     

(37,893)

     

(40,537)

 

Income tax expense

   

(71)

     

(10)

     

(207)

     

(109)

 

Net loss

 

$

(12,373)

   

$

(12,317)

   

$

(38,100)

   

$

(40,646)

 

Net loss per common share, basic and diluted

 

$

(0.42)

   

$

(0.44)

   

$

(1.31)

   

$

(1.47)

 

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

   

29,535

     

28,084

     

29,120

     

27,667

 

 

INSTRUCTURE, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 
   
   

Three Months

Ended September 30,

   

Nine Months Ended

September 30,

 
   

2017

   

2016

   

2017

   

2016

 
   

(unaudited)

   

(unaudited)

   

(unaudited)

   

(unaudited)

 

Operating Activities:

                               

Net loss

 

$

(12,373)

   

$

(12,317)

   

$

(38,100)

   

$

(40,646)

 

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

                               

Depreciation of property and equipment

   

1,629

     

946

     

4,322

     

2,832

 

Amortization of intangible assets

   

71

     

120

     

330

     

284

 

Amortization of deferred financing costs

   

8

     

11

     

24

     

34

 

Change in fair value of warrant liability

   

15

     

10

     

98

     

(52)

 

Stock-based compensation

   

4,267

     

2,804

     

11,707

     

7,701

 

Other

   

24

     

167

     

(42)

     

120

 

Changes in assets and liabilities:

                               

Accounts receivable, net

   

37,485

     

18,091

     

(17,620)

     

(13,887)

 

Prepaid expenses and other assets

   

51

     

716

     

(2,229)

     

849

 

Accounts payable and accrued liabilities

   

5,998

     

2,606

     

8,196

     

4,303

 

Deferred revenue

   

6,074

     

8,666

     

37,331

     

32,460

 

Deferred rent

   

351

     

(139)

     

(63)

     

(379)

 

Other liabilities

   

(32)

     

(31)

     

(32)

     

(361)

 

Net cash provided by (used in) operating activities

   

43,568

     

21,650

     

3,922

     

(6,742)

 

Investing Activities:

                               

Purchases of property and equipment

   

(3,875)

     

(1,512)

     

(10,830)

     

(4,922)

 

Purchases of intangible assets

   

     

(15)

     

(301)

     

(311)

 

Proceeds from disposal of property and equipment

   

12

     

5

     

50

     

23

 

Purchases of marketable securities

   

(8,088)

     

     

(8,088)

     

(24,363)

 

Maturities of marketable securities

   

     

(24,363)

     

23,900

     

325

 

Net cash provided by (used in) investing activities

   

(11,951)

     

(25,885)

     

4,731

     

(29,248)

 

Financing Activities:

                               

Proceeds from issuance of common stock from employee equity plans

   

1,453

     

1,183

     

5,769

     

4,494

 

Shares repurchased for tax withholdings on vesting of restricted stock

   

(91)

     

     

(214)

     

 

Payments of financing costs

   

(7)

     

     

(31)

     

 

Net cash provided by financing activities

   

1,355

     

1,183

     

5,524

     

4,494

 

Net increase (decrease) in cash

   

32,972

     

(3,052)

     

14,177

     

(31,496)

 

Cash, beginning of period

   

25,744

     

62,027

     

44,539

     

90,471

 

Cash, end of period

 

$

58,716

   

$

58,975

   

$

58,716

   

$

58,975

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP GROSS MARGIN

 

(in thousands, except percentages)

 

(unaudited)

 
   
   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
   

2017

   

2016

   

2017

   

2016

 

GAAP gross profit

 

$

30,478

   

$

21,507

   

$

81,892

   

$

55,712

 

Stock-based compensation

   

372

     

256

     

950

     

722

 

Non-GAAP gross margin

 

$

30,850

   

$

21,763

   

$

82,842

   

$

56,434

 
                                 

GAAP gross margin %

   

71.0

%

   

71.3

%

   

71.2

%

   

70.2

%

Non-GAAP gross margin %

   

71.8

%

   

72.2

%

   

72.1

%

   

71.1

%

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING LOSS

 

(in thousands, except percentages)

 

(unaudited)

 
   
   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
   

2017

   

2016

   

2017

   

2016

 

Loss from operations

 

$

(12,562)

   

$

(12,267)

   

$

(38,294)

   

$

(40,537)

 

Stock-based compensation

   

4,267

     

2,804

     

11,707

     

7,701

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(534)

     

(217)

 

Amortization of acquisition related intangibles

   

     

2

     

     

6

 

Non-GAAP operating loss

 

$

(8,295)

   

$

(9,461)

   

$

(27,121)

   

$

(33,047)

 
                                 

GAAP operating margin

   

-29.2

%

   

-40.7

%

   

-33.3

%

   

-51

%

Non-GAAP operating margin

   

-19.3

%

   

-31.4

%

   

-23.6

%

   

-42

%

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS

 

(in thousands, except per share data)

 

(unaudited)

 
   
   

Three Months Ended

September 30,

   

Nine Months Ended

September 30,

 
   

2017

   

2016

   

2017

   

2016

 

Net Loss

 

$

(12,373)

   

$

(12,317)

   

$

(38,100)

   

$

(40,646)

 

Stock-based compensation

   

4,267

     

2,804

     

11,707

     

7,701

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(534)

     

(217)

 

Amortization of acquisition related intangibles

   

     

2

     

     

6

 

Change in fair value of warrant liability

   

15

     

(10)

     

98

     

(52)

 

Non-GAAP net loss

 

$

(8,091)

   

$

(9,521)

   

$

(26,829)

   

$

(33,208)

 

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

 

$

(0.27)

   

$

(0.34)

   

$

(0.92)

   

$

(1.20)

 

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

   

29,535

     

28,084

     

29,120

     

27,667

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF 12-MONTH BILLINGS

 

(in thousands)

 

(unaudited)

 
   
   

Trailing Twelve Months Ended

September 30,

 
   

2017

   

2016

 

Total net revenue

 

$

146,517

   

$

101,131

 
                 

Current deferred revenue

               

Beginning balance

   

81,563

     

53,754

 

Ending balance

   

109,280

     

81,563

 

Net change in current deferred revenue

   

27,717

     

27,809

 
                 

Long term deferred revenue

               

Beginning balance

   

3,222

     

3,996

 

Ending balance

   

3,942

     

3,222

 

Net change in long term deferred revenue

   

720

     

(774)

 
                 

Total 12-month billings

 

$

174,954

   

$

128,166

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended September 30, 2017

 

(in thousands)

 

(unaudited)

 
   
   

GAAP

   

Stock-based Compensation Expense

   

Reversal of Payroll Tax Associated with Equity Transactions

   

NON-GAAP

 

Operating expenses:

                               

Sales and marketing

 

$

22,129

     

(1,255)

     

   

$

20,874

 

Research and development

   

12,577

     

(1,637)

     

     

10,940

 

General and administrative

   

8,334

     

(1,003)

     

     

7,331

 

Total operating expenses

 

$

43,040

     

(3,895)

     

   

$

39,145

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended September 30, 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

 

$

17,788

     

(775)

     

     

   

$

17,013

 

Research and development

   

9,297

     

(1,022)

     

     

(2)

   

$

8,273

 

General and administrative

   

6,689

     

(751)

     

     

   

$

5,938

 

Total operating expenses

 

$

33,774

     

(2,548)

     

     

(2)

   

$

31,224

 

 

INSTRUCTURE, INC.

     

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

     

Nine Months Ended September 30, 2017

     

(in thousands)

     

(unaudited)

     
       
   

GAAP

   

Stock-based Compensation Expense

   

Reversal of Payroll Tax Associated with Equity Transactions

   

NON-GAAP

     

Operating expenses:

                                   

Sales and marketing

 

$

62,429

     

(3,405)

     

256

   

$

59,280

     

Research and development

 

$

34,816

     

(4,375)

     

256

     

30,697

     

General and administrative

 

$

22,941

     

(2,977)

     

22

     

19,986

     

Total operating expenses

 

$

120,186

     

(10,757)

     

534

   

$

109,963

     

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Nine Months Ended September 30, 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

 

$

51,989

     

(2,219)

     

57

     

   

$

49,827

 

Research and development

   

25,832

     

(2,742)

     

57

     

(6)

     

23,141

 

General and administrative

   

18,428

     

(2,018)

     

103

     

     

16,513

 

Total operating expenses

 

$

96,249

     

(6,979)

     

217

     

(6)

   

$

89,481

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS GUIDANCE

 

(in thousands)

 

(unaudited)

 
   
   

Three Months Ending

December 31,

   

Full Year Ending

December 31,

 
   

2017

   

2017

   

2017

   

2017

 
   

LOW

   

HIGH

   

LOW

   

HIGH

 

Net loss

 

$

(13,210)

   

$

(12,610)

   

$

(51,320)

   

$

(50,720)

 

Stock-based compensation

   

4,400

     

4,400

     

16,110

     

16,110

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(530)

     

(530)

 

Change in fair value of warrant liability

   

50

     

50

     

150

     

150

 

Non-GAAP net loss

 

$

(8,760)

   

$

(8,160)

   

$

(35,590)

   

$

(34,990)

 

 

INSTRUCTURE, INC.

 

RECONCILIATION OF NON-GAAP NET LOSS PER COMMON SHARE GUIDANCE

 

(unaudited)

 
   
   

Three Months Ending

December 31,

   

Full Year Ending

December 31,

 
   

2017

   

2017

   

2017

   

2017

 
   

LOW

   

HIGH

   

LOW

   

HIGH

 

Net loss per common share

 

$

(0.44)

   

$

(0.42)

   

$

(1.75)

   

$

(1.73)

 

Stock-based compensation

   

0.15

     

0.15

     

0.55

     

0.55

 

Reversal of payroll tax expense on secondary stock purchase transactions

   

     

     

(0.02)

     

(0.02)

 

Change in fair value of warrant liability

   

0.00

     

0.00

     

0.01

     

0.01

 

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

 

$

(0.29)

   

$

(0.27)

   

$

(1.21)

   

$

(1.19)

 

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

   

29,900

     

29,900

     

29,300

     

29,300

 

 

 

SOURCE Instructure, Inc.