Instructure
02/17/2022

Instructure Announces Fourth Quarter and Fiscal Year 2021 Financial Results

Fourth Quarter GAAP Revenue of $110.6 Million Grows 26% year over year (23% ACR* Growth)

Fiscal Year 2021 GAAP Revenue of $405.4 Million Grows 34% year over year (28% ACR* Growth)

Fiscal Year 2021 Cash Flow From Operations of $105.1 Million and Adjusted Unlevered Free Cash Flow* of $168.7 Million

Salt Lake City, UT (February 17, 2022)—Instructure Holdings, Inc. (Instructure) (NYSE: INST), the makers of the Canvas Learning Management System, today announced financial results for the fourth quarter and fiscal year ended December 31, 2021.

“Instructure’s strong fourth quarter performance capped off a truly outstanding year for our company,” said Steve Daly, Instructure CEO. “During the year, we added over 800 new customers, a 14% increase, as we continued to gain share across our key markets. We delivered 109% net revenue retention for the year, as our clients took advantage of the expanded set of ed tech tools available on the Instructure Learning Platform. Our strong growth trajectory is supported by ongoing momentum in both new logo and cross sell wins, both domestically and internationally. Looking ahead, we will continue to make disciplined investments in sales and innovation to reinforce our position at the center of the teaching and learning ecosystem and extend our platform into multi-billion dollar adjacent markets. We look forward to bringing more value to our clients, partners and shareholders in the months and years ahead.”

Fourth Quarter Financial Highlights:

  • GAAP Revenue of $110.6 million, an increase of 26% year over year
  • Allocated Combined Receipts*, or ACR, of $111.4 million, an increase of 23% year over year
  • Operating loss of $5.4 million, or negative 4.9% of revenue, and Non-GAAP operating income* of $40.7 million, or 36.5% of ACR
  • GAAP net loss of $20.7 million and Adjusted EBITDA* of $41.7 million, or 37.4% of ACR
  • Cash flow from operations of negative $3.7 million and Adjusted Unlevered Free Cash Flow* of $4.0 million

Full Year 2021 Financial Highlights:

  • GAAP Revenue of $405.4 million, an increase of 34% year over year
  • ACR* of $414.7 million, an increase of 28% year over year
  • Operating loss of $46.9 million, or negative 11.6% of revenue, and Non-GAAP operating income* of $143.7 million, or 34.7% of ACR
  • GAAP net loss of $88.7 million and Adjusted EBITDA* of $146.7 million, or 35.4% of ACR
  • Cash flow from operations of $105.1 million and Adjusted Unlevered Free Cash Flow* of $168.7 million

*See “Non-GAAP Financial Measures” for information regarding the Company’s use of non-GAAP financial measures as well as reconciliations to the most closely comparable GAAP measures in this press release.

Business and Operating Highlights:

  • In October, Newport News public schools in Virginia, a Canvas client, added MasteryConnect as their student assessment management system. The relationship builds on our statewide Virtual Virginia contract. By directly addressing learning loss and providing accurate data about students’ academic progress, MasteryConnect will empower Newport News public schools to make more informed decisions on how to best address learning needs and differentiate instruction.
  • In November, Australian Catholic University (ACU) selected Canvas to replace their Moodle system. After a comprehensive competitive tender process, ACU selected Canvas and Impact as the foundation for their next-generation digital ecosystem to underpin ACU Online, the university’s recently launched fully online education portfolio.
  • In November, we announced the acquisition of Kimono (Elevate Data Sync), our secure data syncing solution. Adding Elevate Data Sync to the Instructure Learning Platform accelerates our plans to provide broad support and deeper integration points to the platform for thousands of ed tech providers globally, further empowering schools and higher education institutions to craft the digital learning environment that meets the unique needs of their students.
  • In December, Walden University selected Canvas for its 40,000 student population because of its superior user experience and flexibility at scale, while providing data access and a robust API. The deal also included Impact to help accelerate Walden’s transition from Blackboard to Canvas while providing continuity with previous functionality.
  • In January 2022, we announced the launch of a new channel partner program, which we expect will allow Instructure to expand rapidly to new international markets and address the complex educational needs of higher education and K-12 institutions worldwide by providing them access to its Instructure Learning Platform. The program is specifically tailored to assist partners in emerging markets and key countries where educational institutions are looking for more robust, flexible solutions to the unique learning challenges facing students today.

Business Outlook

Based on information as of today, February 17, 2022, the Company is issuing the following financial guidance.

First Quarter Fiscal 2022:

  • Revenue is expected to be in the range of $108.6 million to $109.6 million   
  • ACR* is expected to be in the range of $109.1 million to $110.1 million   
  • Non-GAAP operating income* is expected to be in the range of $36.8 million to $37.8 million
  • Adjusted EBITDA* is expected to be in the range of $37.9 million to $38.9 million
  • Non-GAAP net income* is expected to be $33.0 million to $34.0 million

Full Year 2022:

  • Revenue is expected to be in the range of $455.8 million to $459.8 million   
  • ACR* is expected to be in the range of $456.7 million to $460.7 million
  • Non-GAAP operating income* is expected to be in the range of $157.5 million to $161.5 million
  • Adjusted EBITDA* is expected to be in the range of $162.1 million to $166.1 million
  • Non-GAAP net income* is expected to be $140.9 million to $144.9 million
  • Adjusted unlevered free cash flow* is expected to be in the range of $183.0 million to $187.0 million

*ACR, Non-GAAP operating income, Adjusted EBITDA, non-GAAP net income and adjusted unlevered free cash flow are non-GAAP measures. See "Non-GAAP Financial Measures" for a reconciliation of ACR to the most closely comparable GAAP measure. Instructure is unable to provide guidance, or a reconciliation, for operating loss and net loss, the most closely comparable GAAP measures with respect to non-GAAP operating income, Adjusted EBITDA, non-GAAP net income and adjusted unlevered free cash flow because Instructure cannot provide a meaningful or accurate calculation or estimation of certain reconciling items without unreasonable effort. This is due to the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliation, including stock-based compensation and amortization of acquisition related intangibles. Thus, Instructure is unable to present a quantitative reconciliation of non-GAAP guidance to GAAP guidance because such information is not available.

Conference Call Information

Instructure’s management team will hold a conference call to discuss our fourth quarter and fiscal year ended December 31, 2021 financial results today, February 17, 2022 at 5:00 p.m. ET. The conference call can be accessed by dialing (833) 921-1674 from the United States and Canada or (236) 389-2674 internationally with conference ID 7093477. A live webcast and replay of the conference call can be accessed from the investor relations page of Instructure's website at ir.instructure.com. An archived replay of the webcast will be available following the conclusion of the call.

INSTRUCTURE HOLDINGS, INC.

 

CONSOLIDATED BALANCE SHEETS

 

(in thousands, except per share data)

 

 

 

December 31,
2021

 

 

December 31,
2020

 

Assets

 

(unaudited)

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

164,928

 

 

$

146,212

 

Accounts receivable—net

 

 

51,607

 

 

 

47,315

 

Prepaid expenses

 

 

15,475

 

 

 

12,733

 

Deferred commissions

 

 

11,418

 

 

 

6,663

 

Assets held for sale

 

 

 

 

 

57,334

 

Other current assets

 

 

3,384

 

 

 

3,083

 

Total current assets

 

 

246,812

 

 

 

273,340

 

Property and equipment, net

 

 

10,792

 

 

 

11,289

 

Right-of-use assets

 

 

18,175

 

 

 

26,904

 

Goodwill

 

 

1,194,221

 

 

 

1,172,395

 

Intangible assets, net

 

 

629,746

 

 

 

755,349

 

Noncurrent prepaid expenses

 

 

1,553

 

 

 

6,269

 

Deferred commissions, net of current portion

 

 

20,105

 

 

 

16,434

 

Deferred tax assets

 

 

6,477

 

 

 

 

Other assets

 

 

5,901

 

 

 

6,651

 

Total assets

 

$

2,133,782

 

 

$

2,268,631

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

18,324

 

 

$

13,302

 

Accrued liabilities

 

 

28,408

 

 

 

23,638

 

Lease liabilities

 

 

6,666

 

 

 

6,037

 

Long-term debt, current

 

 

2,763

 

 

 

6,118

 

Liabilities held for sale

 

 

 

 

 

11,834

 

Deferred revenue

 

 

240,936

 

 

 

192,864

 

Total current liabilities

 

 

297,097

 

 

 

253,793

 

Long-term debt, net of current portion

 

 

490,500

 

 

 

820,925

 

Deferred revenue, net of current portion

 

 

14,740

 

 

 

12,015

 

Lease liabilities, net of current portion

 

 

23,678

 

 

 

30,670

 

Deferred tax liabilities

 

 

29,851

 

 

 

58,601

 

Other long-term liabilities

 

 

3,531

 

 

 

4,643

 

Total liabilities

 

 

859,397

 

 

 

1,180,647

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, par value $0.01 per share; 500,000 and 252,480 shares authorized as of December 31, 2021 and December 31, 2020, respectively; 140,741 and 126,219 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively.

 

 

1,407

 

 

 

1,262

 

Additional paid-in capital

 

 

1,539,638

 

 

 

1,264,703

 

Accumulated deficit

 

 

(266,660

)

 

 

(177,981

)

Total stockholders’ equity

 

 

1,274,385

 

 

 

1,087,984

 

Total liabilities and stockholders’ equity

 

$

2,133,782

 

 

$

2,268,631

 

INSTRUCTURE HOLDINGS, INC.

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(in thousands, except per share data)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
December 31,

 

 

Three months
ended
December 31,

 

 

Year
ended
December 31,

 

 

Period from April 1, to December 31,

 

 

 

Period from January 1 to March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

2020

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription and support

 

$

101,007

 

 

$

79,688

 

 

$

367,781

 

 

$

209,148

 

 

 

$

65,968

 

Professional services and other

 

 

9,586

 

 

 

7,843

 

 

 

37,580

 

 

 

21,525

 

 

 

 

5,421

 

Total revenue

 

 

110,593

 

 

 

87,531

 

 

 

405,361

 

 

 

230,673

 

 

 

 

71,389

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription and support

 

 

36,348

 

 

 

38,628

 

 

 

148,923

 

 

 

108,603

 

 

 

 

19,699

 

Professional services and other

 

 

5,442

 

 

 

4,955

 

 

 

20,942

 

 

 

15,547

 

 

 

 

4,699

 

Total cost of revenue

 

 

41,790

 

 

 

43,583

 

 

 

169,865

 

 

 

124,150

 

 

 

 

24,398

 

Gross profit

 

 

68,803

 

 

 

43,948

 

 

 

235,496

 

 

 

106,523

 

 

 

 

46,991

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

 

41,686

 

 

 

41,616

 

 

 

162,544

 

 

 

125,650

 

 

 

 

27,010

 

Research and development

 

 

16,580

 

 

 

14,330

 

 

 

63,771

 

 

 

51,066

 

 

 

 

19,273

 

General and administrative

 

 

15,968

 

 

 

15,039

 

 

 

54,911

 

 

 

62,572

 

 

 

 

17,295

 

Impairment on held-for-sale goodwill

 

 

 

 

 

 

 

 

 

 

 

29,612

 

 

 

 

 

Impairment on disposal group

 

 

 

 

 

6,777

 

 

 

1,218

 

 

 

10,166

 

 

 

 

 

Total operating expenses

 

 

74,234

 

 

 

77,762

 

 

 

282,444

 

 

 

279,066

 

 

 

 

63,578

 

Loss from operations

 

 

(5,431

)

 

 

(33,814

)

 

 

(46,948

)

 

 

(172,543

)

 

 

 

(16,587

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

16

 

 

 

9

 

 

 

29

 

 

 

49

 

 

 

 

313

 

Interest expense

 

 

(6,182

)

 

 

(16,472

)

 

 

(50,360

)

 

 

(50,921

)

 

 

 

(8

)

Other income (expense), net

 

 

(330

)

 

 

907

 

 

 

(2,695

)

 

 

1,510

 

 

 

 

(5,738

)

Loss on extinguishment of debt

 

 

(22,424

)

 

 

 

 

 

(22,424

)

 

 

 

 

 

 

 

Total other income (expense), net

 

 

(28,920

)

 

 

(15,556

)

 

 

(75,450

)

 

 

(49,362

)

 

 

 

(5,433

)

Loss before income tax benefit (expense)

 

 

(34,351

)

 

 

(49,370

)

 

 

(122,398

)

 

 

(221,905

)

 

 

 

(22,020

)

Income tax benefit (expense)

 

 

13,697

 

 

 

8,136

 

 

 

33,719

 

 

 

43,924

 

 

 

 

(183

)

Net loss and comprehensive loss

 

$

(20,654

)

 

$

(41,234

)

 

$

(88,679

)

 

$

(177,981

)

 

 

$

(22,203

)

Net loss per common share, basic and diluted

 

$

(0.15

)

 

$

(0.33

)

 

$

(0.67

)

 

$

(1.41

)

 

 

$

(0.58

)

Weighted-average common shares used in computing basic and diluted net loss per common share attributable to common stockholders

 

 

140,531

 

 

 

126,235

 

 

 

132,387

 

 

 

126,235

 

 

 

 

38,369

 

 

INSTRUCTURE HOLDINGS, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(in thousands)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
December 31,

 

 

Three months
ended
December 31,

 

 

Year
ended
December 31,

 

 

Period from April 1, to December 31,

 

 

 

Period from January 1 to March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

2020

 

 

 

(unaudited)

 

 

(unaudited)

 

 

(unaudited)

 

 

 

 

 

 

 

 

Operating Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(20,654

)

 

$

(41,234

)

 

$

(88,679

)

 

$

(177,981

)

 

 

$

(22,203

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation of property and equipment

 

 

985

 

 

 

1,203

 

 

 

3,713

 

 

 

3,630

 

 

 

 

2,982

 

Amortization of intangible assets

 

 

33,684

 

 

 

29,713

 

 

 

134,003

 

 

 

95,315

 

 

 

 

2,620

 

Amortization of deferred financing costs

 

 

477

 

 

 

490

 

 

 

2,435

 

 

 

1,508

 

 

 

 

 

Impairment on disposal group

 

 

 

 

 

6,777

 

 

 

1,218

 

 

 

10,166

 

 

 

 

 

Impairment on held-for-sale goodwill

 

 

 

 

 

 

 

 

 

 

 

29,612

 

 

 

 

 

Loss on extinguishment of debt

 

 

22,424

 

 

 

 

 

 

22,424

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

6,540

 

 

 

5,569

 

 

 

18,072

 

 

 

8,685

 

 

 

 

7,109

 

Deferred income taxes

 

 

(16,231

)

 

 

(7,862

)

 

 

(36,485

)

 

 

(43,924

)

 

 

 

 

Other

 

 

120

 

 

 

260

 

 

 

1,685

 

 

 

1,641

 

 

 

 

1,959

 

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

3,386

 

 

 

3,232

 

 

 

(4,314

)

 

 

(19,947

)

 

 

 

11,903

 

Prepaid expenses and other assets

 

 

2,014

 

 

 

5,565

 

 

 

2,094

 

 

 

26,948

 

 

 

 

(25,121

)

Deferred commissions

 

 

(2,762

)

 

 

(5,527

)

 

 

(8,358

)

 

 

(24,537

)

 

 

 

1,469

 

Right-of-use assets

 

 

1,177

 

 

 

2,695

 

 

 

8,729

 

 

 

7,989

 

 

 

 

4,509

 

Accounts payable and accrued liabilities

 

 

(596

)

 

 

7,297

 

 

 

8,038

 

 

 

(4,499

)

 

 

 

2,187

 

Deferred revenue

 

 

(31,927

)

 

 

(9,698

)

 

 

48,543

 

 

 

122,157

 

 

 

 

(36,983

)

Lease liabilities

 

 

(1,617

)

 

 

(2,498

)

 

 

(6,363

)

 

 

(2,836

)

 

 

 

(7,489

)

Other liabilities

 

 

(693

)

 

 

(1,058

)

 

 

(1,612

)

 

 

2,957

 

 

 

 

 

Net cash provided by (used in) operating activities

 

 

(3,673

)

 

 

(5,076

)

 

 

105,143

 

 

 

36,884

 

 

 

 

(57,058

)

Investing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(1,459

)

 

 

(776

)

 

 

(4,259

)

 

 

(1,634

)

 

 

 

(732

)

Proceeds from sale of property and equipment

 

 

13

 

 

 

14

 

 

 

53

 

 

 

81

 

 

 

 

19

 

Proceeds from sale of Bridge

 

 

 

 

 

 

 

 

46,018

 

 

 

 

 

 

 

 

Business acquisitions, net of cash received

 

 

(9,698

)

 

 

(121,173

)

 

 

(26,584

)

 

 

(2,025,237

)

 

 

 

 

Maturities of marketable securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,584

 

Net cash provided by (used in) investing activities

 

 

(11,144

)

 

 

(121,935

)

 

 

15,228

 

 

 

(2,026,790

)

 

 

 

14,871

 

Financing Activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IPO proceeds, net of offering costs paid of $6,068

 

 

(350

)

 

 

 

 

 

259,254

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock from employee equity plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,067

 

Shares repurchased for tax withholdings on vesting of restricted stock units

 

 

(250

)

 

 

 

 

 

(1,568

)

 

 

 

 

 

 

(1,413

)

Proceeds from issuance of term debt, net of discount

 

 

493,090

 

 

 

67,453

 

 

 

493,090

 

 

 

830,729

 

 

 

 

 

Proceeds from contributions from stockholders

 

 

 

 

 

(87

)

 

 

 

 

 

1,257,240

 

 

 

 

 

Distributions to stockholders

 

 

 

 

 

 

 

 

(930

)

 

 

 

 

 

 

 

Repayments of long-term debt

 

 

(531,305

)

 

 

(1,938

)

 

 

(839,187

)

 

 

(5,813

)

 

 

 

 

Term Loan prepayment premium

 

 

(8,066

)

 

 

 

 

 

(11,893

)

 

 

 

 

 

 

 

Payments of financing costs

 

 

(937

)

 

 

 

 

 

(937

)

 

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

 

(47,818

)

 

 

65,428

 

 

 

(102,171

)

 

 

2,082,156

 

 

 

 

(346

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

(62,635

)

 

 

(61,583

)

 

 

18,200

 

 

 

92,250

 

 

 

 

(42,533

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

231,788

 

 

 

212,536

 

 

 

150,953

 

 

 

58,703

 

 

 

 

101,236

 

Cash, cash equivalents and restricted cash, end of period

 

$

169,153

 

 

$

150,953

 

 

$

169,153

 

 

$

150,953

 

 

 

$

58,703

 

Supplemental cash flow disclosure:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for taxes

 

$

90

 

 

$

39

 

 

$

646

 

 

$

296

 

 

 

$

32

 

Interest paid

 

$

5,756

 

 

$

15,969

 

 

$

48,058

 

 

$

49,227

 

 

 

$

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures incurred but not yet paid

 

$

83

 

 

$

 

 

$

83

 

 

$

 

 

 

$

79

 

 

RECONCILIATIONS OF NON-GAAP MEASURES TO GAAP MEASURES

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP ALLOCATED COMBINED RECEIPTS

 

(in thousands)

 

(unaudited)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
December 31,

 

 

Three months
ended
December 31,

 

 

Year
ended
December 31,

 

 

Period from April 1, to December 31,

 

 

 

Period from January 1 to March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

2020

 

Revenue

 

$

110,593

 

 

$

87,531

 

 

$

405,361

 

 

$

230,673

 

 

 

$

71,389

 

Fair value adjustments to deferred revenue in connection with purchase accounting

 

 

851

 

 

 

3,163

 

 

 

9,322

 

 

 

22,751

 

 

 

 

 

Allocated combined receipts

 

$

111,444

 

 

$

90,694

 

 

$

414,683

 

 

$

253,424

 

 

 

$

71,389

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP OPERATING INCOME

 

(in thousands)

 

(unaudited)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
December 31,

 

 

Three months
ended
December 31,

 

 

Year
ended
December 31,

 

 

Period from April 1, to December 31,

 

 

 

Period from January 1 to March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

2020

 

Loss from operations

 

$

(5,431

)

 

$

(33,814

)

 

$

(46,948

)

 

$

(172,543

)

 

 

$

(16,587

)

Stock-based compensation

 

 

8,063

 

 

 

9,612

 

 

 

25,785

 

 

 

50,162

 

 

 

 

7,109

 

Restructuring, transaction and sponsor related costs

 

 

3,522

 

 

 

16,641

 

 

 

21,564

 

 

 

66,959

 

 

 

 

8,360

 

Amortization of acquisition-related intangibles

 

 

33,682

 

 

 

29,713

 

 

 

133,994

 

 

 

95,310

 

 

 

 

2,586

 

Fair value adjustments to deferred revenue in connection with purchase accounting

 

 

851

 

 

 

3,163

 

 

 

9,322

 

 

 

22,751

 

 

 

 

 

Non-GAAP operating income

 

$

40,687

 

 

$

25,315

 

 

$

143,717

 

 

$

62,639

 

 

 

$

1,468

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP ADJUSTED EBITDA

 

(in thousands)

 

(unaudited)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
December 31,

 

 

Three months
ended
December 31,

 

 

Year
ended
December 31,

 

 

Period from April 1, to December 31,

 

 

 

Period from January 1 to March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

2020

 

Net loss

 

$

(20,654

)

 

$

(41,234

)

 

$

(88,679

)

 

$

(177,981

)

 

 

$

(22,203

)

Interest on outstanding debt and loss on debt extinguishment

 

 

28,605

 

 

 

16,472

 

 

 

72,775

 

 

 

50,921

 

 

 

 

 

Provision (benefit) for taxes

 

 

(13,697

)

 

 

(8,136

)

 

 

(33,719

)

 

 

(43,924

)

 

 

 

183

 

Depreciation

 

 

985

 

 

 

1,204

 

 

 

3,713

 

 

 

3,630

 

 

 

 

2,982

 

Amortization

 

 

2

 

 

 

2

 

 

 

7

 

 

 

7

 

 

 

 

35

 

Stock-based compensation

 

 

8,063

 

 

 

9,612

 

 

 

25,785

 

 

 

50,162

 

 

 

 

7,109

 

Restructuring, transaction and sponsor related costs

 

 

3,828

 

 

 

15,750

 

 

 

23,480

 

 

 

65,449

 

 

 

 

14,117

 

Amortization of acquisition-related intangibles

 

 

33,682

 

 

 

29,713

 

 

 

133,994

 

 

 

95,310

 

 

 

 

2,586

 

Fair value adjustments to deferred revenue in connection with purchase accounting

 

 

851

 

 

 

3,163

 

 

 

9,322

 

 

 

22,751

 

 

 

 

 

Adjusted EBITDA

 

$

41,665

 

 

$

26,546

 

 

$

146,678

 

 

$

66,325

 

 

 

$

4,809

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF FREE CASH FLOW, UNLEVERED FREE CASH FLOW & ADJUSTED UNLEVERED FREE CASH FLOW

 

(in thousands)

 

(unaudited)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
December 31,

 

 

Three months
ended
December 31,

 

 

Year
ended
December 31,

 

 

Period from April 1, to December 31,

 

 

 

Period from January 1 to March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

(3,673

)

 

$

(5,076

)

 

$

105,143

 

 

$

36,884

 

 

 

$

(57,058

)

Purchases of property and equipment

 

 

(1,459

)

 

 

(776

)

 

 

(4,259

)

 

 

(1,634

)

 

 

 

(732

)

Proceeds from disposals of property and equipment

 

 

13

 

 

 

14

 

 

 

53

 

 

 

81

 

 

 

 

19

 

Free cash flow

 

$

(5,119

)

 

$

(5,838

)

 

$

100,937

 

 

$

35,331

 

 

 

$

(57,771

)

Cash paid for interest on outstanding debt

 

 

5,756

 

 

 

16,472

 

 

 

48,058

 

 

 

50,921

 

 

 

 

 

Cash settled stock-based compensation

 

 

1,522

 

 

 

4,003

 

 

 

7,616

 

 

 

41,437

 

 

 

 

 

Unlevered free cash flow

 

$

2,159

 

 

$

14,637

 

 

$

156,611

 

 

$

127,689

 

 

 

$

(57,771

)

Restructuring, transaction and sponsor related costs paid in cash

 

 

1,884

 

 

 

6,306

 

 

 

12,085

 

 

 

21,744

 

 

 

 

8,058

 

Adjusted unlevered free cash flow

 

$

4,043

 

 

$

20,943

 

 

$

168,696

 

 

$

149,433

 

 

 

$

(49,713

)

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP NET INCOME

 

(in thousands, except per share data)

 

(unaudited)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
December 31,

 

 

Three months
ended
December 31,

 

 

Year
ended
December 31,

 

 

Period from April 1, to December 31,

 

 

 

Period from January 1 to March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

2020

 

Net loss

 

$

(20,654

)

 

$

(41,234

)

 

$

(88,679

)

 

$

(177,981

)

 

 

$

(22,203

)

Stock-based compensation

 

 

8,063

 

 

 

9,612

 

 

 

25,785

 

 

 

50,162

 

 

 

 

7,109

 

Amortization of acquisition-related intangibles

 

 

33,682

 

 

 

29,713

 

 

 

133,994

 

 

 

95,310

 

 

 

 

2,586

 

Fair value adjustments to deferred revenue in connection with purchase accounting

 

 

851

 

 

 

3,163

 

 

 

9,322

 

 

 

22,751

 

 

 

 

 

Loss on extinguishment of debt

 

 

22,424

 

 

 

 

 

 

22,424

 

 

 

 

 

 

 

 

Restructuring, transaction and sponsor related costs

 

 

3,828

 

 

 

15,750

 

 

 

23,480

 

 

 

65,449

 

 

 

 

14,117

 

Non-GAAP net income

 

$

48,194

 

 

$

17,004

 

 

$

126,326

 

 

$

55,691

 

 

 

$

1,609

 

Non-GAAP net income per common share, basic

 

$

0.34

 

 

$

0.13

 

 

$

0.95

 

 

$

0.44

 

 

 

$

0.04

 

Non-GAAP net income per common share, diluted

 

$

0.34

 

 

$

0.13

 

 

$

0.95

 

 

$

0.44

 

 

 

$

0.04

 

Weighted average common shares used in computing basic Non-GAAP net income per common share

 

 

140,531

 

 

 

126,235

 

 

 

132,387

 

 

 

126,235

 

 

 

 

38,369

 

Weighted average common shares used in computing diluted Non-GAAP net income per common share

 

 

142,870

 

 

 

126,235

 

 

 

133,487

 

 

 

126,235

 

 

 

 

38,369

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP GROSS PROFIT

 

(in thousands)

 

(unaudited)

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Three months
ended
December 31,

 

 

Three months
ended
December 31,

 

 

Year
ended
December 31,

 

 

Period from April 1, to December 31,

 

 

 

Period from January 1 to March 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

2020

 

Gross profit

 

$

68,803

 

 

$

43,948

 

 

$

235,496

 

 

$

106,523

 

 

 

$

46,991

 

Stock-based compensation

 

 

596

 

 

 

590

 

 

 

1,858

 

 

 

1,707

 

 

 

 

586

 

Restructuring, transaction and sponsor related costs

 

 

54

 

 

 

224

 

 

 

3,045

 

 

 

3,137

 

 

 

 

66

 

Amortization of acquisition-related intangibles

 

 

15,648

 

 

 

14,000

 

 

 

62,060

 

 

 

44,167

 

 

 

 

1,293

 

Fair value adjustments to deferred revenue in connection with purchase accounting

 

 

851

 

 

 

3,163

 

 

 

9,322

 

 

 

22,751

 

 

 

 

 

Non-GAAP gross profit

 

$

85,952

 

 

$

61,925

 

 

$

311,781

 

 

$

178,285

 

 

 

$

48,936

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP COST OF REVENUE

 

Three Months Ended December 31, 2021

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription and support

 

$

36,348

 

 

 

(247

)

 

 

(24

)

 

 

(15,648

)

 

$

20,429

 

Professional services and other

 

 

5,442

 

 

 

(349

)

 

 

(30

)

 

 

 

 

 

5,063

 

Total cost of revenue

 

$

41,790

 

 

 

(596

)

 

 

(54

)

 

 

(15,648

)

 

$

25,492

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP COST OF REVENUE

 

Year Ended December 31, 2021

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription and support

 

$

148,923

 

 

 

(899

)

 

 

(2,132

)

 

 

(62,060

)

 

$

83,832

 

Professional services and other

 

 

20,942

 

 

 

(959

)

 

 

(913

)

 

 

 

 

 

19,070

 

Total cost of revenue

 

$

169,865

 

 

 

(1,858

)

 

 

(3,045

)

 

 

(62,060

)

 

$

102,902

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP COST OF REVENUE

 

Three Months Ended December 31, 2020

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription and support

 

$

38,628

 

 

 

(366

)

 

 

(178

)

 

 

(14,000

)

 

$

24,084

 

Professional services and other

 

 

4,955

 

 

 

(224

)

 

 

(46

)

 

 

 

 

 

4,685

 

Total cost of revenue

 

$

43,583

 

 

 

(590

)

 

 

(224

)

 

 

(14,000

)

 

$

28,769

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP COST OF REVENUE

 

Period from April 1 to December 31, 2020 (Successor)

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription and support

 

$

108,603

 

 

 

(1,020

)

 

 

(2,235

)

 

 

(44,167

)

 

$

61,181

 

Professional services and other

 

 

15,547

 

 

 

(687

)

 

 

(902

)

 

 

 

 

 

13,958

 

Total cost of revenue

 

$

124,150

 

 

 

(1,707

)

 

 

(3,137

)

 

 

(44,167

)

 

$

75,139

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP COST OF REVENUE

 

Period from January 1 to March 31, 2020 (Predecessor)

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Cost of Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subscription and support

 

$

19,699

 

 

 

(301

)

 

 

 

 

 

(1,293

)

 

$

18,105

 

Professional services and other

 

 

4,699

 

 

 

(285

)

 

 

(66

)

 

 

 

 

 

4,348

 

Total cost of revenue

 

$

24,398

 

 

 

(586

)

 

 

(66

)

 

 

(1,293

)

 

$

22,453

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended December 31, 2021

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

$

41,686

 

 

 

(2,122

)

 

 

(120

)

 

 

(18,034

)

 

$

21,410

 

Research and development

 

 

16,580

 

 

 

(2,047

)

 

 

(1,137

)

 

 

 

 

 

13,396

 

General and administrative

 

 

15,968

 

 

 

(3,298

)

 

 

(2,211

)

 

 

 

 

 

10,459

 

Total operating expenses

 

$

74,234

 

 

 

(7,467

)

 

 

(3,468

)

 

 

(18,034

)

 

$

45,265

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Year Ended December 31, 2021

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

$

162,544

 

 

 

(6,936

)

 

 

(2,671

)

 

 

(71,934

)

 

$

81,003

 

Research and development

 

 

63,771

 

 

 

(6,943

)

 

 

(4,041

)

 

 

 

 

 

52,787

 

General and administrative

 

 

54,911

 

 

 

(10,048

)

 

 

(10,589

)

 

 

 

 

 

34,274

 

Impairment on disposal group

 

 

1,218

 

 

 

 

 

 

(1,218

)

 

 

 

 

 

 

Total operating expenses

 

$

282,444

 

 

 

(23,927

)

 

 

(18,519

)

 

 

(71,934

)

 

$

168,064

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Three Months Ended December 31, 2020

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

$

41,616

 

 

 

(2,144

)

 

 

(3,690

)

 

 

(15,713

)

 

$

20,069

 

Research and development

 

 

14,330

 

 

 

(2,710

)

 

 

(1,179

)

 

 

 

 

 

10,441

 

General and administrative

 

 

15,039

 

 

 

(4,168

)

 

 

(4,772

)

 

 

 

 

 

6,099

 

Impairment on disposal group

 

 

6,777

 

 

 

 

 

 

(6,777

)

 

 

 

 

 

 

Total operating expenses

 

$

77,762

 

 

$

(9,022

)

 

$

(16,418

)

 

$

(15,713

)

 

$

36,609

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Period from April 1 to December 31, 2020 (Successor)

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

$

125,650

 

 

 

(7,580

)

 

 

(7,395

)

 

 

(51,143

)

 

$

59,532

 

Research and development

 

 

51,066

 

 

 

(9,903

)

 

 

(4,760

)

 

 

 

 

 

36,403

 

General and administrative

 

 

62,572

 

 

 

(30,972

)

 

 

(11,889

)

 

 

 

 

 

19,711

 

Impairment on held-for-sale goodwill

 

 

29,612

 

 

 

 

 

 

(29,612

)

 

 

 

 

 

 

Impairment on disposal group

 

 

10,166

 

 

 

 

 

 

(10,166

)

 

 

 

 

 

 

Total operating expenses

 

$

279,066

 

 

$

(48,455

)

 

$

(63,822

)

 

$

(51,143

)

 

$

115,646

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP OPERATING EXPENSES

 

Period from January 1 to March 31, 2020 (Predecessor)

 

(in thousands)

 

(unaudited)

 

 

 

GAAP

 

 

Stock-based compensation expense

 

 

Restructuring, transaction and sponsor related costs

 

 

Amortization of acquired intangibles

 

 

Non-GAAP

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

$

27,010

 

 

 

(1,977

)

 

 

(556

)

 

 

(1,293

)

 

$

23,184

 

Research and development

 

 

19,273

 

 

 

(1,874

)

 

 

(1,273

)

 

 

 

 

 

16,126

 

General and administrative

 

 

17,295

 

 

 

(2,672

)

 

 

(6,465

)

 

 

 

 

 

8,158

 

Total operating expenses

 

$

63,578

 

 

 

(6,523

)

 

 

(8,294

)

 

 

(1,293

)

 

$

47,468

 

 

INSTRUCTURE HOLDINGS, INC.

 

RECONCILIATION OF NON-GAAP ALLOCATED COMBINED RECEIPTS GUIDANCE

 

(in thousands)

 

(unaudited)

 

 

 

Three Months Ending
March 31,

 

 

Full Year Ending
December 31,

 

 

 

2022

 

 

2022

 

 

2022

 

 

2022

 

 

 

LOW

 

 

HIGH

 

 

LOW

 

 

HIGH

 

Revenue

 

$

108,600

 

 

$

109,600

 

 

$

455,800

 

 

$

459,800

 

Fair value adjustments to deferred revenue in connection with purchase accounting

 

 

500

 

 

 

500

 

 

 

900

 

 

 

900

 

Allocated combined receipts

 

$

109,100

 

 

$

110,100

 

 

$

456,700

 

 

$

460,700

 

Non-GAAP Financial Measures

Instructure has provided in this press release financial information that has not been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). In addition to Instructure’s results determined in accordance with GAAP, Instructure believes the following non-GAAP measures are useful in evaluating its operating performance and liquidity. Instructure believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance and assists in comparisons with other companies, some of which use similar non-GAAP financial information to supplement their GAAP results. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies.

A reconciliation of Instructure’s historical non-GAAP financial measures to the most directly comparable GAAP measures has been provided in the financial statement tables included in this press release, and investors are encouraged to review the reconciliation.

ACR. We define ACR as the combined receipts of our Company and companies that we have acquired allocated to the period of service delivery. We calculate ACR as the sum of (i) revenue and (ii) the impact of fair value adjustments to acquired unearned revenue related to Thoma Bravo’s acquisition of Instructure (the “Take-Private Transaction”) and the Certica Holdings, LLC (“Certica”), Eesysoft Software International B.V. (which was rebranded to “Impact by Instructure” or “Impact” subsequent to acquisition), and Kimono LLC (which was rebranded to “Elevate Data Sync” subsequent to acquisition) acquisitions where we do not believe such adjustments are reflective of our ongoing operations. Management uses this measure to evaluate organic growth of the business period over period, as if the Company had operated as a single entity and excluding the impact of acquisitions or adjustments due to purchase accounting.

Non-GAAP Operating Income.  We define non-GAAP operating income as loss from operations excluding the impact of stock-based compensation, restructuring, transaction and sponsor related costs, amortization of acquisition-related intangibles, and the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact and Elevate Data Sync acquisitions that we do not believe are reflective of our ongoing operations. We believe non-GAAP operating income is useful in evaluating our operating performance compared to that of other companies in our industry, as this metric generally eliminates the effects of certain items that may vary for different companies for reasons unrelated to overall operating performance.

Non-GAAP Net Income. We define non-GAAP net income as net loss excluding the impact of stock-based compensation, amortization of acquisition-related intangibles, the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact and Elevate Data Sync acquisitions, and restructuring, transaction and sponsor related costs that we do not believe are reflective of our ongoing operations. Basic non-GAAP net income per common share attributable to common stockholders is computed by dividing non-GAAP net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted non-GAAP net income per common share attributable to common stockholders is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period.

 Adjusted EBITDA. EBITDA is defined as earnings before debt-related costs, including interest and loss on debt extinguishment, provision (benefit) for taxes, depreciation, and amortization. We further adjust EBITDA to exclude certain items of a significant or unusual nature, including stock-based compensation, restructuring, transaction and sponsor related costs, amortization of acquisition-related intangibles, and the impact of fair value adjustments to acquired unearned revenue relating to the Take-Private Transaction and the Certica, Impact and Elevate Data Sync acquisitions. Although we exclude the amortization of acquisition-related intangibles from this non-GAAP measure, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Free Cash Flow, Unlevered Free Cash Flow and Adjusted Unlevered Free Cash Flow. We define free cash flow as net cash provided by operating activities less purchases of property and equipment and intangible assets, net of proceeds from disposals of property and equipment. We define unlevered free cash flow as free cash flow adjusted for cash paid for interest on outstanding debt and cash settled stock-based compensation. We define adjusted unlevered free cash flow as unlevered free cash flow adjusted for restructuring, transaction and sponsor related costs paid in cash. We believe free cash flow and adjusted unlevered free cash flow facilitate period-to-period comparisons of liquidity. We consider free cash flow and adjusted unlevered free cash flow to be important measures because they measure the amount of cash we generate and reflect changes in working capital.

Non-GAAP Cost of Revenue and Non-GAAP Operating Expenses. We define non-GAAP cost of revenue and non-GAAP operating expenses as GAAP cost of revenue and GAAP operating expenses, respectively, excluding the impact of stock-based compensation, restructuring, transaction and sponsor related costs, and amortization of acquisition-related intangibles, that we do not believe are reflective of our ongoing operations.

Non-GAAP Gross Profit. We define non-GAAP gross profit as gross profit excluding the impact of stock-based compensation, restructuring, transaction and sponsor related costs, amortization of acquisition-related intangibles, and fair value adjustments to deferred revenue in connection with purchase accounting, that we do not believe are reflective of our ongoing operations.

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 2022 and for the full year ending December 31, 2022, 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 future stimulus packages approved by the U.S. federal government; failure to continue our recent growth rates; our ability to acquire new customers and successfully retain existing customers; the effects of increased usage of, or interruptions or performance problems associated with, our learning platform; the impact on our business and prospects from the effects of the current COVID-19 pandemic; our history of losses and expectation that we will not be profitable for the foreseeable future; the impact of adverse general and industry-specific economic and market conditions; and changes in the spending policies or budget priorities for government funding of Higher Education and K-12 institutions.

These and other important risk factors are described more fully in the Company’s initial public offering prospectus filed with the Securities and Exchange Commission (the "SEC") on July 23, 2021, most recent Annual Report on Form 10-K 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 (NYSE: INST) is an education technology company dedicated to elevating student success, amplifying the power of teaching, and inspiring everyone to learn together. Today the Instructure Learning Platform supports more than 30 million educators and learners around the world. Learn more at www.instructure.com.

Contact

Brian Watkins
Corporate Communications

Instructure

April Scee
Managing Director 
ICR, Inc.
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