SALT LAKE CITY, July 30, 2018 /PRNewswire/ -- Instructure,
Inc. (NYSE: INST), a leading software-as-a-service (SaaS)
technology company in education, learning and talent management,
today announced its financial results for the second quarter ended
June 30, 2018.
"We delivered solid second quarter results with 30%
year-over-year revenue growth," said Josh
Coates, CEO at Instructure. "Customer adoption for both
Canvas and Bridge was strong during the quarter as we surpassed
4,000 customers across 70 countries."
First Quarter
Financial Summary
|
|
(in thousands, except
per share data)
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Six
Months
Ended June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Revenue
|
|
$
|
50,063
|
|
|
$
|
38,545
|
|
|
$
|
98,054
|
|
|
$
|
73,017
|
|
Gross
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
70.8
|
%
|
|
|
71.3
|
%
|
|
|
70.8
|
%
|
|
|
71.6
|
%
|
Non-GAAP(1)
|
|
|
72.5
|
%
|
|
|
72.2
|
%
|
|
|
72.5
|
%
|
|
|
72.4
|
%
|
Operating
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
(12,425)
|
|
|
|
(10,160)
|
|
|
|
(24,558)
|
|
|
|
(21,763)
|
|
Non-GAAP(1)
|
|
|
(8,128)
|
|
|
|
(6,627)
|
|
|
|
(15,214)
|
|
|
|
(14,857)
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
-24.8
|
%
|
|
|
-26.4
|
%
|
|
|
-25.0
|
%
|
|
|
-29.8
|
%
|
Non-GAAP(1)
|
|
|
-16.2
|
%
|
|
|
-17.2
|
%
|
|
|
-15.5
|
%
|
|
|
-20.3
|
%
|
Net
loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
|
(12,538)
|
|
|
|
(10,268)
|
|
|
|
(24,405)
|
|
|
|
(21,869)
|
|
Non-GAAP(1)
|
|
|
(8,241)
|
|
|
|
(6,659)
|
|
|
|
(15,183)
|
|
|
|
(14,880)
|
|
EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP
|
|
$
|
(0.36)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.73)
|
|
|
$
|
(0.76)
|
|
Non-GAAP(1)
|
|
$
|
(0.24)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.51)
|
|
___________
|
|
(1) Non-GAAP
financial measures exclude stock-based compensation, reversal of
estimated accruals related to payroll taxes on secondary stock
purchase transactions, amortization of acquisition related
intangibles, the change in fair value of the warrant liability and
the change in fair value of the contingent liability.
|
Second Quarter 2018 Business Highlights
- Instructure continued to expand its customer base in the second
quarter. A few highlights include:
-
- U.S. Higher Education and K-12 Schools – Within the U.S.
higher education market, Cornell
University switched to Canvas for their over 22,000
students. Canvas was also selected by Arizona
State University for their over 90,000 students and faculty.
ASU has been ranked as the nation's most innovative school for the
last three years by U.S. News and World Report. Additionally,
Collier County Public Schools in
Florida chose Canvas and Arc for
their 48,000 K-12 students and
educators.
- International – The University of Toronto, Canada's top ranked university,
selected Canvas for their 80,000 students. In Norway, two different municipalities, which
are the equivalent of school districts, chose Canvas for their
29,000 faculty and students. Additionally, Global Radio,
Europe's largest radio company
with 25 million listeners, will use Bridge Learn and Arc for
employee training and onboarding. And Bacardi MARTINI chose Bridge
Learn for employee engagement and development of their distributed
global workforce of over 5,000 employees.
- Corporate – Qualtrics selected the full Bridge suite of
Learn, Perform and Practice, as well as Arc, for sales enablement
and partner training for their global sales team. Holiday
Retirement, the second largest provider of senior living in the
U.S., also chose the full Bridge suite of Learn, Perform and
Practice, as well as Arc, for their 10,000 employees. Cox
Automotive, the owner of Autotrader.com and Kelley Blue Book, selected Bridge Learn to help
increase customer loyalty by offering training, including new
orientation training and a manager bootcamp.
Business Outlook
Today, Instructure issued financial guidance for the third
quarter and full year 2018. The financial guidance discussed below
is on a non-GAAP basis, except for revenue, and excludes
stock-based compensation expense, reversal of payroll tax expense
on secondary stock purchase transactions, amortization of
acquisition related intangibles, the change in fair value of the
warrant liability, and the change in fair value of the contingent
liability (see tables below that reconcile these non-GAAP financial
measures to the related GAAP measures). On January 1, 2018, Instructure adopted Accounting
Standards Codification (ASC) 606 "Revenue from Contracts with
Customers" using the full retrospective transition method.
For the third quarter ending September
30, 2018, Instructure expects revenue of approximately
$53.6 million to $54.2 million, a non-GAAP net loss of
($8.6) million to ($8.0) million, and non-GAAP net loss per common
share of ($0.25) to ($0.23).
For the full year ending December 31,
2018, Instructure expects revenue of approximately
$205.1 million to $209.5 million, as compared to previously stated
guidance of $204.5 million to
$209.5 million, non-GAAP net loss of
($31.8) million to ($29.8) million, up from ($32.0) million to ($30.0)
million, and non-GAAP net loss per common share of
($0.93) to ($0.87), up from ($0.94) to ($0.88).
Conference Call Details:
Instructure will discuss its second quarter 2018 results today,
July 30, 2018, via teleconference at
3:00 p.m. Mountain Time /
5:00 p.m. Eastern Time. The call may
be accessed at (888) 204-4368 or (323) 794-2423, passcode
4199102.
The live webcast of the call can be accessed at the Instructure
Investor Relations website at ir.instructure.com. A replay of the
call will be available at the same web address approximately two
hours following the conclusion of the live event. You may register
for the live webcast at http://bit.ly/INST_Q22018EarningsCall.
Non-GAAP Financial Measures
In this press release and related conference call, Instructure's
non-GAAP gross margin, non-GAAP operating expenses, non-GAAP
operating loss, non-GAAP operating margin, non-GAAP net loss,
non-GAAP net loss per share, non-GAAP free cash flow and 12-month
billings are not presented in accordance with GAAP and are not
intended to be used in lieu of GAAP presentations of results of
operations.
Management presents these non-GAAP financial measures because it
considers them to be important supplemental measures of
performance. Management uses the non-GAAP financial measures for
planning purposes, including analysis of the company's performance
against prior periods, the preparation of operating budgets and to
determine appropriate levels of operating and capital investments.
Management also believes that the non-GAAP financial measures
provide additional insight for analysts and investors in evaluating
the company's financial and operational performance. However, these
non-GAAP financial measures have limitations as an analytical tool
and are not intended to be an alternative to financial measures
prepared in accordance with GAAP. We intend to provide these
non-GAAP financial measures as part of our future earnings
discussions and, therefore, the inclusion of these non-GAAP
financial measures will provide consistency in our financial
reporting. Investors are encouraged to review the reconciliation of
these non-GAAP measures to their most directly comparable GAAP
financial measures. A reconciliation of our non-GAAP financial
measures to their most directly comparable GAAP measures has been
provided in the financial statement tables included below in this
press release. Our definitions may differ from the definitions used
by other companies and therefore comparability may be limited. In
addition, other companies may not publish these or similar
metrics.
Non-GAAP measures exclude stock-based compensation, payroll
taxes related to secondary stock purchase transactions or the
reversal of such expense due to the retirement of the liability,
amortization of acquisition related intangibles, the change in fair
value of the warrant liability, and the change in fair value of the
contingent 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.
- Change in fair value of the contingent liability - Under
GAAP, we are required to record mark-to-market adjustments for the
change in the fair value of the liability for contingent
consideration related to an acquisition. The expense or gain
recognized is excluded from management's assessment of our
operating performance because management believes that these
non-cash items are not indicative of ongoing operating
performance.
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 2018 and for the full year ending December 31, 2018, the company's growth, customer
demand and application adoption, the company's research and
development efforts and future application releases, and the
company's expectations regarding future revenue, expenses, cash
flows and net income or loss. These statements are not guarantees
of future performance, but are based on management's expectations
as of the date of this press release and assumptions that are
inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements. Important factors that could cause actual results to
differ materially from those expressed or implied by these
forward-looking statements include the following: risks associated
with anticipated growth in Instructure's addressable market;
competitive factors, including changes in the competitive
environment, pricing changes, sales cycle time and increased
competition; Instructure's ability to build and expand its sales
efforts; general economic and industry conditions; new application
introductions and Instructure's ability to develop and deliver
innovative applications and features; Instructure's ability to
provide high-quality service and support offerings; risks
associated with international operations; and macroeconomic
conditions. These and other important risk factors are described
more fully in the Quarterly Report on Form 10-Q for the quarter
ended March 31, 2018, which was filed
with the Securities and Exchange Commission (the "SEC") on
May 2, 2018, and other documents
filed with the SEC and could cause actual results to vary from
expectations. All information provided in this press release and in
the conference call is as of the date hereof and Instructure
undertakes no duty to update this information except as required by
law.
About Instructure
Instructure, Inc. is 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 4,000 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
Manager, Investor Relations
Instructure
(866) 574-3127
kgodfrey@instructure.com
Becky Frost
Senior Director, Corporate Communications
Instructure
(801) 869-5017
becky@instructure.com
INSTRUCTURE,
INC.
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(in
thousands)
|
|
|
|
June
30,
2018
|
|
|
December
31,
2017
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
67,951
|
|
|
$
|
35,693
|
|
Short-term marketable
securities
|
|
|
48,588
|
|
|
|
5,697
|
|
Accounts
receivable—net of allowances of $387 and $318 at June 30,
2018 and December 31, 2017,
respectively
|
|
|
93,841
|
|
|
|
34,312
|
|
Prepaid
expenses
|
|
|
10,079
|
|
|
|
11,492
|
|
Deferred
commissions
|
|
|
8,070
|
|
|
|
7,086
|
|
Other current
assets
|
|
|
2,010
|
|
|
|
2,419
|
|
Total current
assets
|
|
|
230,539
|
|
|
|
96,699
|
|
Property and
equipment, net
|
|
|
27,547
|
|
|
|
23,926
|
|
Goodwill
|
|
|
12,354
|
|
|
|
12,354
|
|
Intangible assets,
net
|
|
|
7,609
|
|
|
|
9,048
|
|
Noncurrent prepaid
expenses
|
|
|
3,347
|
|
|
|
2,939
|
|
Deferred commissions,
net of current portion
|
|
|
11,108
|
|
|
|
11,160
|
|
Other
assets
|
|
|
537
|
|
|
|
497
|
|
Total
assets
|
|
$
|
293,041
|
|
|
$
|
156,623
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
6,961
|
|
|
$
|
2,892
|
|
Accrued
liabilities
|
|
|
11,437
|
|
|
|
13,702
|
|
Deferred
rent
|
|
|
1,330
|
|
|
|
936
|
|
Deferred
revenue
|
|
|
129,860
|
|
|
|
99,773
|
|
Total current
liabilities
|
|
|
149,588
|
|
|
|
117,303
|
|
Deferred revenue, net
of current portion
|
|
|
2,666
|
|
|
|
1,889
|
|
Deferred rent, net of
current portion
|
|
|
10,643
|
|
|
|
9,201
|
|
Other long-term
liabilities
|
|
|
20
|
|
|
|
1,286
|
|
Total
liabilities
|
|
|
162,917
|
|
|
|
129,679
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
Common
stock
|
|
|
3
|
|
|
|
3
|
|
Additional paid-in
capital
|
|
|
378,485
|
|
|
|
250,899
|
|
Accumulated other
comprehensive income
|
|
|
(2)
|
|
|
|
(1)
|
|
Accumulated
deficit
|
|
|
(248,362)
|
|
|
|
(223,957)
|
|
Total stockholders'
equity
|
|
|
130,124
|
|
|
|
26,944
|
|
Total liabilities
and stockholders' equity
|
|
$
|
293,041
|
|
|
$
|
156,623
|
|
INSTRUCTURE,
INC.
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
(in thousands,
except per share data)
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Six
Months
Ended June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
$
|
45,104
|
|
|
$
|
33,713
|
|
|
$
|
88,304
|
|
|
$
|
65,267
|
|
Professional services
and other
|
|
|
4,959
|
|
|
|
4,832
|
|
|
|
9,750
|
|
|
|
7,750
|
|
Total net
revenue
|
|
|
50,063
|
|
|
|
38,545
|
|
|
|
98,054
|
|
|
|
73,017
|
|
Cost of
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subscription and
support
|
|
|
10,784
|
|
|
|
7,967
|
|
|
|
21,175
|
|
|
|
15,072
|
|
Professional services
and other
|
|
|
3,814
|
|
|
|
3,088
|
|
|
|
7,408
|
|
|
|
5,663
|
|
Total cost of
revenue
|
|
|
14,598
|
|
|
|
11,055
|
|
|
|
28,583
|
|
|
|
20,735
|
|
Gross
profit
|
|
|
35,465
|
|
|
|
27,490
|
|
|
|
69,471
|
|
|
|
52,282
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
|
24,841
|
|
|
|
18,972
|
|
|
|
48,029
|
|
|
|
37,199
|
|
Research and
development
|
|
|
14,849
|
|
|
|
11,057
|
|
|
|
29,509
|
|
|
|
22,239
|
|
General and
administrative
|
|
|
8,200
|
|
|
|
7,621
|
|
|
|
16,491
|
|
|
|
14,607
|
|
Total operating
expenses
|
|
|
47,890
|
|
|
|
37,650
|
|
|
|
94,029
|
|
|
|
74,045
|
|
Loss from
operations
|
|
|
(12,425)
|
|
|
|
(10,160)
|
|
|
|
(24,558)
|
|
|
|
(21,763)
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
529
|
|
|
|
39
|
|
|
|
767
|
|
|
|
115
|
|
Interest
expense
|
|
|
(20)
|
|
|
|
(4)
|
|
|
|
(29)
|
|
|
|
(18)
|
|
Other income
(expense), net
|
|
|
(529)
|
|
|
|
25
|
|
|
|
(353)
|
|
|
|
48
|
|
Total other income
(expense), net
|
|
|
(20)
|
|
|
|
60
|
|
|
|
385
|
|
|
|
145
|
|
Loss before income
taxes
|
|
|
(12,445)
|
|
|
|
(10,100)
|
|
|
|
(24,173)
|
|
|
|
(21,618)
|
|
Income tax
expense
|
|
|
(93)
|
|
|
|
(168)
|
|
|
|
(232)
|
|
|
|
(251)
|
|
Net loss
|
|
$
|
(12,538)
|
|
|
$
|
(10,268)
|
|
|
$
|
(24,405)
|
|
|
$
|
(21,869)
|
|
Net loss per common
share, basic and diluted
|
|
$
|
(0.36)
|
|
|
$
|
(0.35)
|
|
|
$
|
(0.73)
|
|
|
$
|
(0.76)
|
|
Weighted average
shares used to compute net loss per share, basic and
diluted
|
|
|
34,491
|
|
|
|
29,090
|
|
|
|
33,444
|
|
|
|
28,909
|
|
INSTRUCTURE,
INC.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(in
thousands)
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Six
Months
Ended June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(12,538)
|
|
|
$
|
(10,268)
|
|
|
$
|
(24,405)
|
|
|
$
|
(21,869)
|
|
Adjustments to
reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation of
property and equipment
|
|
|
2,105
|
|
|
|
1,456
|
|
|
|
4,118
|
|
|
|
2,693
|
|
Amortization of
intangible assets
|
|
|
676
|
|
|
|
117
|
|
|
|
1,439
|
|
|
|
259
|
|
Amortization of
deferred financing costs
|
|
|
3
|
|
|
|
10
|
|
|
|
10
|
|
|
|
16
|
|
Change in fair value
of mark-to-market liabilities
|
|
|
(755)
|
|
|
|
76
|
|
|
|
(1,266)
|
|
|
|
83
|
|
Stock-based
compensation
|
|
|
5,675
|
|
|
|
4,067
|
|
|
|
10,419
|
|
|
|
7,440
|
|
Other
|
|
|
(963)
|
|
|
|
(68)
|
|
|
|
(899)
|
|
|
|
(66)
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(68,724)
|
|
|
|
(59,786)
|
|
|
|
(60,004)
|
|
|
|
(54,489)
|
|
Prepaid expenses and
other assets
|
|
|
(1,241)
|
|
|
|
3,483
|
|
|
|
1,382
|
|
|
|
(2,035)
|
|
Accounts payable and
accrued liabilities
|
|
|
942
|
|
|
|
3,720
|
|
|
|
3,010
|
|
|
|
2,198
|
|
Deferred
revenue
|
|
|
53,419
|
|
|
|
47,913
|
|
|
|
30,864
|
|
|
|
29,639
|
|
Deferred
rent
|
|
|
464
|
|
|
|
(275)
|
|
|
|
1,836
|
|
|
|
(414)
|
|
Deferred
commissions
|
|
|
(1,144)
|
|
|
|
(2,342)
|
|
|
|
(932)
|
|
|
|
(3,101)
|
|
Net cash used in
operating activities
|
|
|
(22,081)
|
|
|
|
(11,897)
|
|
|
|
(34,428)
|
|
|
|
(39,646)
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
|
|
(2,543)
|
|
|
|
(3,810)
|
|
|
|
(7,390)
|
|
|
|
(6,955)
|
|
Purchases of
intangible assets
|
|
|
—
|
|
|
|
(11)
|
|
|
|
—
|
|
|
|
(301)
|
|
Proceeds from disposal
of property and equipment
|
|
|
26
|
|
|
|
23
|
|
|
|
52
|
|
|
|
38
|
|
Purchases of
marketable securities
|
|
|
(48,441)
|
|
|
|
—
|
|
|
|
(48,441)
|
|
|
|
—
|
|
Maturities of
marketable securities
|
|
|
—
|
|
|
|
10,000
|
|
|
|
5,700
|
|
|
|
23,900
|
|
Net cash (used in)
provided by investing activities
|
|
|
(50,958)
|
|
|
|
6,202
|
|
|
|
(50,079)
|
|
|
|
16,682
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from common
stock offerings, net of offering costs
|
|
|
(14)
|
|
|
|
—
|
|
|
|
109,789
|
|
|
|
—
|
|
Proceeds from issuance
of common stock from employee equity plans
|
|
|
4,417
|
|
|
|
3,278
|
|
|
|
7,249
|
|
|
|
4,316
|
|
Shares repurchased for
tax withholdings on vesting of restricted stock
|
|
|
(128)
|
|
|
|
(81)
|
|
|
|
(255)
|
|
|
|
(123)
|
|
Payments for financing
costs
|
|
|
(18)
|
|
|
|
(24)
|
|
|
|
(18)
|
|
|
|
(24)
|
|
Net cash provided by
financing activities
|
|
|
4,257
|
|
|
|
3,173
|
|
|
|
116,765
|
|
|
|
4,169
|
|
Net (decrease)
increase in cash and cash equivalents
|
|
|
(68,782)
|
|
|
|
(2,522)
|
|
|
|
32,258
|
|
|
|
(18,795)
|
|
Cash and cash
equivalents, beginning of period
|
|
|
136,733
|
|
|
|
28,266
|
|
|
|
35,693
|
|
|
|
44,539
|
|
Cash and cash
equivalents, end of period
|
|
$
|
67,951
|
|
|
$
|
25,744
|
|
|
$
|
67,951
|
|
|
$
|
25,744
|
|
INSTRUCTURE,
INC.
|
|
RECONCILIATION OF
NON-GAAP GROSS MARGIN
|
|
(in thousands,
except percentages)
|
|
(unaudited)
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Six
Months
Ended June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
GAAP gross
profit
|
|
$
|
35,465
|
|
|
$
|
27,490
|
|
|
$
|
69,471
|
|
|
$
|
52,282
|
|
Stock-based
compensation
|
|
|
553
|
|
|
|
347
|
|
|
|
975
|
|
|
|
578
|
|
Amortization of
acquisition related intangibles
|
|
|
333
|
|
|
|
—
|
|
|
|
675
|
|
|
|
—
|
|
Reversal of payroll
tax expense on secondary stock purchase transactions
|
|
|
(49)
|
|
|
|
—
|
|
|
|
(49)
|
|
|
|
—
|
|
Non-GAAP gross
margin
|
|
$
|
36,302
|
|
|
$
|
27,837
|
|
|
$
|
71,072
|
|
|
$
|
52,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross margin
%
|
|
|
70.8
|
%
|
|
|
71.3
|
%
|
|
|
70.8
|
%
|
|
|
71.6
|
%
|
Non-GAAP gross margin
%
|
|
|
72.5
|
%
|
|
|
72.2
|
%
|
|
|
72.5
|
%
|
|
|
72.4
|
%
|
INSTRUCTURE,
INC.
|
|
RECONCILIATION OF
NON-GAAP OPERATING LOSS
|
|
(in thousands,
except percentages)
|
|
(unaudited)
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Six
Months
Ended June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Loss from
operations
|
|
$
|
(12,425)
|
|
|
$
|
(10,160)
|
|
|
$
|
(24,558)
|
|
|
$
|
(21,763)
|
|
Stock-based
compensation
|
|
|
5,675
|
|
|
|
4,067
|
|
|
|
10,419
|
|
|
|
7,440
|
|
Reversal of payroll
tax expense on secondary stock purchase transactions
|
|
|
(1,225)
|
|
|
|
(534)
|
|
|
|
(1,225)
|
|
|
|
(534)
|
|
Amortization of
acquisition related intangibles
|
|
|
602
|
|
|
|
—
|
|
|
|
1,294
|
|
|
|
—
|
|
Change in fair value
of contingent liability
|
|
|
(755)
|
|
|
|
—
|
|
|
|
(1,144)
|
|
|
|
—
|
|
Non-GAAP operating
loss
|
|
$
|
(8,128)
|
|
|
$
|
(6,627)
|
|
|
$
|
(15,214)
|
|
|
$
|
(14,857)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP operating
margin
|
|
|
-24.8
|
%
|
|
|
-26.4
|
%
|
|
|
-25.0
|
%
|
|
|
-29.8
|
%
|
Non-GAAP operating
margin
|
|
|
-16.2
|
%
|
|
|
-17.2
|
%
|
|
|
-15.5
|
%
|
|
|
-20.3
|
%
|
INSTRUCTURE,
INC.
|
|
RECONCILIATION OF
NON-GAAP NET LOSS
|
|
(in thousands,
except per share data)
|
|
(unaudited)
|
|
|
|
Three
Months
Ended June
30,
|
|
|
Six
Months
Ended June
30,
|
|
|
|
2018
|
|
|
2017
|
|
|
2018
|
|
|
2017
|
|
Net loss
|
|
$
|
(12,538)
|
|
|
$
|
(10,268)
|
|
|
$
|
(24,405)
|
|
|
$
|
(21,869)
|
|
Stock-based
compensation
|
|
|
5,675
|
|
|
|
4,067
|
|
|
|
10,419
|
|
|
|
7,440
|
|
Reversal of payroll
tax expense on secondary stock purchase transactions
|
|
|
(1,225)
|
|
|
|
(534)
|
|
|
|
(1,225)
|
|
|
|
(534)
|
|
Amortization of
acquisition related intangibles
|
|
|
602
|
|
|
|
—
|
|
|
|
1,294
|
|
|
|
—
|
|
Change in fair value
of mark-to-market liabilities
|
|
|
—
|
|
|
|
76
|
|
|
|
(122)
|
|
|
|
83
|
|
Change in fair value
of contingent liability
|
|
|
(755)
|
|
|
|
—
|
|
|
|
(1,144)
|
|
|
|
—
|
|
Non-GAAP net
loss
|
|
$
|
(8,241)
|
|
|
$
|
(6,659)
|
|
|
$
|
(15,183)
|
|
|
$
|
(14,880)
|
|
Non-GAAP net loss per
common share,
basic
and diluted
|
|
$
|
(0.24)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.45)
|
|
|
$
|
(0.51)
|
|
Weighted average
common shares used in computing
basic
and diluted net loss per common share
|
|
|
34,491
|
|
|
|
29,090
|
|
|
|
33,444
|
|
|
|
28,909
|
|
INSTRUCTURE,
INC.
|
|
RECONCILIATION OF
FREE CASH FLOW
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
Three Months
Ended
June
30,
|
|
|
|
2018
|
|
|
2017
|
|
Net cash used in
operating activities
|
|
$
|
(22,081)
|
|
|
$
|
(11,897)
|
|
Purchase of property
and equipment and intangibles
|
|
|
(2,543)
|
|
|
|
(3,821)
|
|
Proceeds from
disposals of property and equipment
|
|
|
26
|
|
|
|
23
|
|
Free cash
flow
|
|
$
|
(24,598)
|
|
|
$
|
(15,695)
|
|
INSTRUCTURE,
INC.
|
|
RECONCILIATION OF
12-MONTH BILLINGS
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
|
Trailing Twelve
Months Ended
June
30,
|
|
|
|
2018
|
|
|
2017
|
|
Total net
revenue
|
|
$
|
186,008
|
|
|
$
|
135,475
|
|
|
|
|
|
|
|
|
|
|
Total deferred
revenue
|
|
|
|
|
|
|
|
|
Beginning
balance
|
|
|
104,275
|
|
|
|
76,281
|
|
Ending
balance
|
|
|
132,526
|
|
|
|
104,275
|
|
Net change in current
deferred revenue
|
|
|
28,251
|
|
|
|
27,994
|
|
|
|
|
|
|
|
|
|
|
Total 12-month
billings
|
|
$
|
214,259
|
|
|
$
|
163,469
|
|
INSTRUCTURE,
INC.
|
RECONCILIATION OF
NON-GAAP OPERATING EXPENSES
|
Three Months Ended
June 30, 2018
|
(in
thousands)
|
(unaudited)
|
|
|
GAAP
|
|
|
Stock-based
Compensation
Expense
|
|
|
Reversal of
Payroll Tax
Associated
with Equity
Transactions
|
|
|
Amortization
of
acquired
intangibles
|
|
|
Change in
fair value
of
contingent
liability
|
|
|
NON-
GAAP
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
$
|
24,841
|
|
|
|
(1,671)
|
|
|
|
430
|
|
|
|
(269)
|
|
|
|
—
|
|
|
$
|
23,331
|
Research and
development
|
|
|
14,849
|
|
|
|
(2,033)
|
|
|
|
616
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
13,432
|
General and
administrative
|
|
|
8,200
|
|
|
|
(1,418)
|
|
|
|
130
|
|
|
|
—
|
|
|
|
755
|
|
|
$
|
7,667
|
Total operating
expenses
|
|
$
|
47,890
|
|
|
|
(5,122)
|
|
|
|
1,176
|
|
|
|
(269)
|
|
|
|
755
|
|
|
$
|
44,430
|
INSTRUCTURE,
INC.
|
RECONCILIATION OF
NON-GAAP OPERATING EXPENSES
|
Three Months Ended
June 30, 2017
|
(in
thousands)
|
(unaudited)
|
|
|
GAAP
|
|
|
Stock-based
Compensation
Expense
|
|
|
Reversal
of
Payroll Tax
Associated
with Equity
Transactions
|
|
|
Amortization
of
acquired
intangibles
|
|
|
Change in
fair value
of
contingent
liability
|
|
|
NON-
GAAP
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
$
|
18,972
|
|
|
|
(1,195)
|
|
|
|
256
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
18,033
|
Research and
development
|
|
|
11,057
|
|
|
|
(1,506)
|
|
|
|
256
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
9,807
|
General and
administrative
|
|
|
7,621
|
|
|
|
(1,019)
|
|
|
|
22
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
6,624
|
Total operating
expenses
|
|
$
|
37,650
|
|
|
|
(3,720)
|
|
|
|
534
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
34,464
|
INSTRUCTURE,
INC.
|
RECONCILIATION OF
NON-GAAP OPERATING EXPENSES
|
Six Months Ended
June 30, 2018
|
(in
thousands)
|
(unaudited)
|
|
|
GAAP
|
|
|
Stock-based
Compensation
Expense
|
|
|
Reversal of
Payroll Tax
Associated
with Equity
Transactions
|
|
|
Amortization
of
acquired
intangibles
|
|
|
Change in
fair value
of
contingent
liability
|
|
|
NON-
GAAP
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
$
|
48,029
|
|
|
|
(3,019)
|
|
|
|
430
|
|
|
|
(619)
|
|
|
|
—
|
|
|
$
|
44,821
|
Research and
development
|
|
$
|
29,509
|
|
|
|
(3,927)
|
|
|
|
616
|
|
|
|
—
|
|
|
|
—
|
|
|
|
26,198
|
General and
administrative
|
|
$
|
16,491
|
|
|
|
(2,498)
|
|
|
|
130
|
|
|
|
—
|
|
|
|
1,144
|
|
|
|
15,267
|
Total operating
expenses
|
|
$
|
94,029
|
|
|
|
(9,444)
|
|
|
|
1,176
|
|
|
|
(619)
|
|
|
|
1,144
|
|
|
$
|
86,286
|
INSTRUCTURE,
INC.
|
RECONCILIATION OF
NON-GAAP OPERATING EXPENSES
|
Six Months Ended
June 30, 2017
|
(in
thousands)
|
(unaudited)
|
|
|
GAAP
|
|
|
Stock-based
Compensation
Expense
|
|
|
Reversal of
Payroll Tax
Associated
with Equity
Transactions
|
|
|
Amortization
of
acquired
intangibles
|
|
|
Change in
fair value
of
contingent
liability
|
|
|
NON-
GAAP
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
|
$
|
37,199
|
|
|
|
(2,150)
|
|
|
|
256
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
35,305
|
Research and
development
|
|
|
22,239
|
|
|
|
(2,738)
|
|
|
|
256
|
|
|
|
—
|
|
|
|
—
|
|
|
|
19,757
|
General and
administrative
|
|
|
14,607
|
|
|
|
(1,974)
|
|
|
|
22
|
|
|
|
—
|
|
|
|
—
|
|
|
|
12,655
|
Total operating
expenses
|
|
$
|
74,045
|
|
|
|
(6,862)
|
|
|
|
534
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
67,717
|
INSTRUCTURE,
INC.
|
RECONCILIATION OF
NON-GAAP NET LOSS GUIDANCE
|
(in
thousands)
|
(unaudited)
|
|
|
Three Months
Ending
September
30,
|
|
|
Full Year
Ending
December
31,
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
LOW
|
|
|
HIGH
|
|
|
LOW
|
|
|
HIGH
|
Net loss
|
|
$
|
(15,650)
|
|
|
$
|
(15,050)
|
|
|
$
|
(55,155)
|
|
|
$
|
(53,155)
|
Stock-based
compensation
|
|
|
6,425
|
|
|
|
6,425
|
|
|
|
23,300
|
|
|
|
23,300
|
Reversal of payroll
tax expense on secondary stock purchase transactions
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,225)
|
|
|
|
(1,225)
|
Amortization of
acquisition related intangibles
|
|
|
625
|
|
|
|
625
|
|
|
|
2,550
|
|
|
|
2,550
|
Change in fair value
of warrant liability
|
|
|
—
|
|
|
|
—
|
|
|
|
(120)
|
|
|
|
(120)
|
Change in fair value
of contingent liability
|
|
|
—
|
|
|
|
—
|
|
|
|
(1,150)
|
|
|
|
(1,150)
|
Non-GAAP net
loss
|
|
$
|
(8,600)
|
|
|
$
|
(8,000)
|
|
|
$
|
(31,800)
|
|
|
$
|
(29,800)
|
INSTRUCTURE,
INC.
|
RECONCILIATION OF
NON-GAAP NET LOSS PER COMMON SHARE GUIDANCE
|
(unaudited)
|
|
|
Three Months
Ending
September
30,
|
|
|
Full Year
Ending
December
31,
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
2018
|
|
|
LOW
|
|
|
HIGH
|
|
|
LOW
|
|
|
HIGH
|
Net loss per common
share
|
|
$
|
(0.45)
|
|
|
$
|
(0.43)
|
|
|
$
|
(1.61)
|
|
|
$
|
(1.55)
|
Stock-based
compensation
|
|
|
0.18
|
|
|
|
0.18
|
|
|
|
0.68
|
|
|
|
0.68
|
Reversal of payroll
tax expense on secondary stock purchase transactions
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.04)
|
|
|
|
(0.04)
|
Amortization of
acquisition related intangibles
|
|
|
0.02
|
|
|
|
0.02
|
|
|
|
0.07
|
|
|
|
0.07
|
Change in fair value
of warrant liability
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.00)
|
|
|
|
(0.00)
|
Change in fair value
of contingent liability
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.03)
|
|
|
|
(0.03)
|
Non-GAAP net loss per
common share, basic and diluted
|
|
$
|
(0.25)
|
|
|
$
|
(0.23)
|
|
|
$
|
(0.93)
|
|
|
$
|
(0.87)
|
Non-GAAP weighted
average common shares used in computing basic and diluted net loss per
common share (in
thousands)
|
|
|
34,800
|
|
|
|
34,800
|
|
|
|
34,200
|
|
|
|
34,200
|
View original content with
multimedia:http://www.prnewswire.com/news-releases/instructure-reports-second-quarter-2018-financial-results-300688104.html
SOURCE Instructure