Financial Data and Key Metrics Changes - Instructure reported Q2 2022 GAAP revenue of $114.6 million, representing a 22% year-over-year increase, while Allocated Combined Receipts (ACR) reached $114.9 million, up 20% year-over-year [13][39] - Non-GAAP gross margins improved to 77.6%, an increase of 390 basis points year-over-year, indicating operational efficiencies [14][39] - Adjusted EBITDA for Q2 grew 28% year-over-year to $39.8 million, with a margin of 35% [14][46] - Deferred revenue at the end of Q2 was $283.3 million, up 13% year-over-year, and Remaining Performance Obligations (RPO) were $783.7 million, up 17% year-over-year [41] Business Line Data and Key Metrics Changes - Subscription and support ACR accounted for 90% of Q2 revenue at $103.2 million, up 19% year-over-year, driven by the core Canvas LMS product [40] - Professional services and other ACR made up 10% of revenue at $11.7 million, up 24% year-over-year, due to strong implementation and training services [40] Market Data and Key Metrics Changes - In the U.S. Higher Education LMS market, Canvas usage increased to 42% of institutions, up from 39% the previous year, indicating a growing market share [17] - International markets remain the fastest-growing segment, with significant agreements signed, such as with the Brazilian College of Radiology [23][24] Company Strategy and Development Direction - The company is focused on expanding its Instructure Learning Platform through R&D investments and strategic acquisitions, aiming to capture a larger share of the $30 billion market opportunity [10][15] - The channel partner program is being leveraged to enter new international markets cost-effectively [11][24] - The company plans to continue investing in R&D and sales headcount despite macroeconomic challenges, indicating a commitment to long-term growth [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the financial model, citing solid top-line growth and strong margins [12] - The company remains insulated from macroeconomic pressures, with a diverse revenue stream that mitigates risks from enrollment declines in higher education [66][70] - Management anticipates continued demand for digital transformation in K-12 education, driven by the need for modern LMS solutions [58][66] Other Important Information - The majority of the $190 billion allocated for K-12 schools under the ESSER fund remains unspent, presenting future opportunities for technology spending [32][33] - The company hosted over 12,000 registrants at InstructureCon 2022, showcasing its brand and product improvements [34] Q&A Session Summary Question: Update on K-12 competitive environment and market penetration - Management noted that approximately 40% to 45% of the K-12 market remains unpaid, with expectations for continued growth in paid LMS adoption [60] Question: Impact of macroeconomic conditions on education customers - Management indicated that the education market is generally countercyclical, with a stable demand for digital transformation despite potential recessionary pressures [65][66] Question: Enrollment trends in higher education and their impact - Management acknowledged declining enrollments but emphasized that the shift towards online and non-traditional education mitigates the impact on their business [69][70] Question: International demand and market performance - Management confirmed that international markets, particularly APAC and Latin America, continue to show strong growth without significant changes in demand [82] Question: Assessment solutions and cross-selling opportunities - Management highlighted that the integration of assessment solutions with the LMS is a key growth driver, with significant potential for cross-selling within existing customer accounts [97][98]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40647 Instructure Holdings, Inc. (Exact name of registrant as specified in its charter) Delaware 84-4325548 (Stat ...

Instructure Holdings, Inc. (NYSE:INST) Q1 2022 Earnings Conference Call May 2, 2022 5:00 PM ET Company Participants Denise Garcia – Investor Relations Steve Daly – Chief Executive Officer Dale Bowen – Chief Financial Officer Conference Call Participants Josh Baer – Morgan Stanley Fred Havemeyer – Macquarie Joe Vruwink – Baird Alex Sklar – Raymond James Matt VanVliet – BTIG Steven Sheldon – William Blair Operator Ladies and gentlemen, thank you for standing by, and welcome to Instructure's First Quarter 2022 ...

Part I [Business](index=4&type=section&id=Item%201.%20Business) Instructure provides a cloud-native SaaS learning platform, serving nearly 7,000 global customers, with 2021 revenue of $405.4 million and a net loss of $88.7 million Financial Performance Summary (in millions) | Period | Revenue | Net Loss | | :--- | :--- | :--- | | **2021 (Successor)** | $405.4 | $(88.7) | | **Successor 2020 Period** | $230.7 | $(178.0) | | **Predecessor 2020 Period** | $71.4 | $(22.2) | | **2019 (Predecessor)** | $258.5 | $(80.8) | - The company operates a SaaS business model, providing a scalable, cloud-native learning platform with a guaranteed **99.9% uptime**[15](index=15&type=chunk)[20](index=20&type=chunk)[26](index=26&type=chunk) - Instructure's platform includes a suite of solutions beyond the core Canvas LMS, such as Canvas Studio, MasteryConnect, Impact, and Elevate Data Sync[16](index=16&type=chunk)[21](index=21&type=chunk) - As of December 31, 2021, the company served nearly **7,000 customers** in over 100 countries, including all Ivy League universities, with no single customer accounting for more than **10% of 2021 revenue**[45](index=45&type=chunk) - The company competes with established LMS providers like Blackboard, D2L, Moodle, and Schoology, differentiating itself through its comprehensive, integrated platform offering[56](index=56&type=chunk)[57](index=57&type=chunk) - The company is subject to various data privacy and security regulations, including GDPR, CCPA, FERPA, and COPPA[66](index=66&type=chunk)[67](index=67&type=chunk)[69](index=69&type=chunk) [Risk Factors](index=18&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks including potential post-COVID customer decline, net losses, intense competition, security breaches, reliance on third-party infrastructure, substantial indebtedness, and regulatory complexities - **COVID-19 Related Risks:** The company benefited from U.S. federal stimulus packages and increased demand for remote learning due to the pandemic, but these trends may not be sustained, potentially affecting customer acquisition and renewals[78](index=78&type=chunk)[80](index=80&type=chunk) - **Business and Financial Risks:** The company has a history of net losses, reporting **$88.7 million in 2021**, and anticipates continued losses as it invests in growth, facing significant competition and unpredictable sales cycles[89](index=89&type=chunk)[108](index=108&type=chunk)[111](index=111&type=chunk) - **Technology and Security Risks:** The business relies on AWS for its cloud infrastructure, making it vulnerable to service disruptions, and a security breach could lead to unauthorized data access, reputational damage, and significant liabilities; a substantial portion of the Canvas source code is open source, which could enable competition and create licensing risks[134](index=134&type=chunk)[139](index=139&type=chunk)[146](index=146&type=chunk) - **Regulatory Risks:** The company is subject to complex and evolving global data privacy laws, such as GDPR and CCPA, as well as U.S. education-specific regulations like FERPA and COPPA, with non-compliance potentially resulting in significant fines and business harm[159](index=159&type=chunk)[162](index=162&type=chunk)[168](index=168&type=chunk) - **Indebtedness Risks:** As of December 31, 2021, the company had approximately **$500.0 million** in outstanding term loans, requiring significant cash flow for service and including covenants that restrict operational and financial flexibility[192](index=192&type=chunk)[193](index=193&type=chunk) - **Ownership and Governance Risks:** Thoma Bravo controls approximately **86.7%** of the company's voting power, qualifying it as a "controlled company," which allows it to control board elections and exempts the company from certain NYSE corporate governance requirements[204](index=204&type=chunk)[207](index=207&type=chunk) [Unresolved Staff Comments](index=48&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved comments from the staff of the Securities and Exchange Commission - None [Properties](index=48&type=section&id=Item%202.%20Properties) Instructure's corporate headquarters are in Salt Lake City, Utah, with additional leased offices globally, including London, Sydney, Sao Paulo, and Budapest - The main corporate headquarters are in Salt Lake City, Utah, under leases expiring in 2025 and 2027[233](index=233&type=chunk) - International headquarters are in London, England, with other key offices in Australia, Brazil, and Hungary[233](index=233&type=chunk) [Legal Proceedings](index=48&type=section&id=Item%203.%20Legal%20Proceedings) The company is defending a class action lawsuit filed in February 2021 in Delaware, alleging breach of fiduciary duties related to the 2020 Take-Private Transaction - A class action lawsuit, *Oklahoma Law Enforcement Retirement System v. Goldsmith et al.*, was filed concerning the Take-Private Transaction[235](index=235&type=chunk) - The complaint alleges breach of fiduciary duties by former directors/officers and that Instructure Holdings, LLC and Thoma Bravo entities aided and abetted these breaches[235](index=235&type=chunk) - The company filed a motion to dismiss the amended complaint in October 2021 and believes the claims are without merit[236](index=236&type=chunk) [Mine Safety Disclosures](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's business operations - Not applicable Part II [Market for Registrant's Common Equity, Related Stockholders Matters and Issuer Purchases of Equity Securities](index=50&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholders%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Instructure's common stock began trading on NYSE in July 2021, with no cash dividends paid or planned, and limited share repurchases for tax obligations - The company's common stock began trading on the NYSE on **July 22, 2021**, under the symbol "INST"[240](index=240&type=chunk) - The company has never declared or paid cash dividends and does not anticipate paying any in the foreseeable future, with its ability to do so also restricted by its credit facility[242](index=242&type=chunk) Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | Oct 2021 | — | $ — | | Nov 2021 | — | $ — | | Dec 2021 | 10,000 | $21.70 | | **Total** | **10,000** | **$21.70** | [Reserved](index=51&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's SaaS business model, 2021 financial performance with $405.4 million revenue, key growth metrics, liquidity, and non-GAAP measures - The company's business model is primarily based on subscription and support revenue from its SaaS learning platform, which accounted for **91% of total revenue in 2021**[252](index=252&type=chunk)[253](index=253&type=chunk) - The COVID-19 pandemic accelerated the adoption of the company's learning platform, resulting in increased operational performance and cash flows, though it also increased operating costs due to higher usage[262](index=262&type=chunk)[263](index=263&type=chunk) Key Business Metrics | Metric | Dec 31, 2019 | Dec 31, 2020 | Dec 31, 2021 | | :--- | :--- | :--- | :--- | | **Number of Customers** | ~5,000 | ~6,000 | ~7,000 | | **Net Revenue Retention Rate** | 107% | 117% | 109% | | **Gross Revenue Retention Rate** | 95% | 96% | 95% | | **Remaining Performance Obligations (RPO)** | $599M | $569M | $698M | Results of Operations Summary (in thousands) | Line Item | 2021 (Successor) | Successor 2020 Period | Predecessor 2020 Period | | :--- | :--- | :--- | :--- | | **Total revenue** | $405,361 | $230,673 | $71,389 | | **Gross profit** | $235,496 | $106,523 | $46,991 | | **Loss from operations** | $(46,948) | $(172,543) | $(16,587) | | **Net loss** | $(88,679) | $(177,981) | $(22,203) | - As of December 31, 2021, principal sources of liquidity were cash and cash equivalents of **$169.2 million** and available credit facilities, with **$500.0 million** outstanding on its Senior Term Loan[308](index=308&type=chunk)[322](index=322&type=chunk) Non-GAAP Financial Measures (in thousands) | Measure | 2021 (Successor) | Successor 2020 Period | Predecessor 2020 Period | | :--- | :--- | :--- | :--- | | **Non-GAAP Operating Income** | $143,717 | $62,639 | $1,468 | | **Free Cash Flow** | $100,937 | $35,331 | $(57,771) | | **Adjusted EBITDA** | $146,678 | $66,325 | $4,809 | [Quantitative and Qualitative Disclosures About Market Risk](index=73&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include foreign currency fluctuations, significant interest rate exposure from variable-rate debt, and minimal impact from inflation in 2021 - The company is exposed to foreign currency risk as operating expenses are denominated in various currencies, primarily in Europe and Australia, while most sales are in U.S. dollars[380](index=380&type=chunk) - Significant interest rate risk exists due to approximately **$500.0 million** in outstanding variable-rate debt under the Senior Term Loan as of December 31, 2021[381](index=381&type=chunk)[382](index=382&type=chunk) - Management does not believe that inflation had a material effect on the business, financial condition, or results of operations for the fiscal year ended December 31, 2021[384](index=384&type=chunk) [Financial Statements and Supplementary Data](index=75&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2021, including balance sheets, income statements, cash flows, and notes, with revenue allocation identified as a critical audit matter - The financial statements are presented for two distinct periods due to the Take-Private Transaction on March 24, 2020: the "Predecessor" period (before March 31, 2020) and the "Successor" period (after April 1, 2020)[420](index=420&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | $2,133,782 | $2,268,631 | | Cash and cash equivalents | $164,928 | $146,212 | | Goodwill | $1,194,221 | $1,172,395 | | **Total Liabilities** | $859,397 | $1,180,647 | | Long-term debt, net | $493,263 | $827,043 | | Deferred revenue | $255,676 | $204,879 | | **Total Stockholders' Equity** | $1,274,385 | $1,087,984 | - The independent auditor, Ernst & Young LLP, identified the allocation of revenue in contracts with multiple performance obligations as a critical audit matter due to the judgment required in identifying distinct performance obligations and estimating standalone selling prices[397](index=397&type=chunk)[398](index=398&type=chunk) - In 2021, the company completed two acquisitions: Eesysoft (rebranded as Impact) for **$19.0 million** and Kimono (rebranded as Elevate Data Sync) for **$11.4 million**[482](index=482&type=chunk)[485](index=485&type=chunk) - On February 26, 2021, the company sold its corporate learning platform subsidiary, Bridge, for a total purchase price of **$47.0 million**[516](index=516&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=115&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports that there have been no changes in or disagreements with its accountants regarding any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure - None [Controls and Procedures](index=115&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of December 31, 2021, with no material changes to internal controls, and no management assessment of internal controls over financial reporting due to exemption - Management concluded that disclosure controls and procedures were effective as of December 31, 2021[581](index=581&type=chunk) - The report does not include a management assessment of internal control over financial reporting, as permitted for newly public companies[582](index=582&type=chunk) - There were no material changes in internal control over financial reporting during the fourth quarter of 2021[583](index=583&type=chunk) [Other Information](index=115&type=section&id=Item%209B.%20Other%20Information) This item is not applicable - Not applicable [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=115&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable - Not applicable Part III [Directors, Executive Officers and Corporate Governance](index=116&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the forthcoming 2022 Proxy Statement - Information is incorporated by reference from the forthcoming 2022 Proxy Statement[589](index=589&type=chunk) [Executive Compensation](index=116&type=section&id=Item%2011.%20Executive%20Compensation) The information required for this item regarding executive compensation is incorporated by reference from the company's 2022 Proxy Statement - Information is incorporated by reference from the forthcoming 2022 Proxy Statement[590](index=590&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=116&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) The information required for this item concerning security ownership is incorporated by reference from the company's 2022 Proxy Statement - Information is incorporated by reference from the forthcoming 2022 Proxy Statement[591](index=591&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=116&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The information required for this item regarding related party transactions and director independence is incorporated by reference from the company's 2022 Proxy Statement - Information is incorporated by reference from the forthcoming 2022 Proxy Statement[592](index=592&type=chunk) [Principal Accountant Fees and Services](index=116&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) The information required for this item regarding principal accountant fees and services is incorporated by reference from the company's 2022 Proxy Statement - Information is incorporated by reference from the forthcoming 2022 Proxy Statement[593](index=593&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=117&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists all financial statements and exhibits filed with the Form 10-K, including corporate governance documents, material contracts, and certifications - This item lists all financial statements, schedules, and exhibits filed with the Annual Report on Form 10-K[596](index=596&type=chunk) [Form 10-K Summary](index=118&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable

Financial Data and Key Metrics Changes - Fourth quarter GAAP revenue was $110.6 million, up 26% year-over-year, while allocated combined receipts (ACR) was $111.4 million, up 23% year-over-year [8][25] - Full year 2021 GAAP revenue was $405.4 million, up 34% year-over-year, while ACR was $414.7 million, up 28% year-over-year [8] - Fourth quarter adjusted EBITDA grew 57% year-over-year to $41.7 million, representing a 37% margin [10] - Full year 2021 adjusted EBITDA more than doubled to $146.7 million, with a conversion of 115% of full year adjusted EBITDA to adjusted unlevered free cash flow [10][33] - Total customers grew 14% year-over-year to nearly 7,000 at the end of Q4, with a net revenue retention rate of 109% in 2021 [10][31] Business Line Data and Key Metrics Changes - Subscription and support ACR accounted for 91% of fourth quarter revenue at $101 million, up 27% year-over-year, driven by momentum in core Canvas LMS products [25] - Professional services and other revenue accounted for 9% of fourth quarter revenue at $9.6 million, up 22% year-over-year, primarily due to strong implementation and training services in K-12 [25] - The company saw strong uptake of its impact solutions in both higher education and K-12 markets, with significant wins such as Walden University and Hartford County Public Schools [11][12] Market Data and Key Metrics Changes - The international market remained the fastest-growing segment, with significant deals such as Australian Catholic University replacing Moodle with Canvas [13] - The company expects the number of RFP opportunities in U.S. higher education to significantly increase in 2022, indicating a favorable market environment [21] - The Department of Education announced $41 billion in additional funding through the American Rescue Plan, which is expected to positively impact the funding environment for educational institutions [19] Company Strategy and Development Direction - The company is focused on expanding its platform and driving long-term growth through disciplined investments and strategic M&A [15][16] - A new channel partner program was launched to enhance growth in APAC, EMEA, and LatAm markets, allowing partners to offer implementation, training, and support services [17][18] - The company aims to address the complex challenges in the education sector, including fragmented user experiences and unclear ROI, through its learning platform [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the pipeline for 2022, noting increased RFP activity in U.S. higher education and a strong outlook for K-12 [41][46] - The company anticipates that the international business will continue to grow rapidly, supported by the new channel partner program [44] - Management highlighted the importance of addressing learning loss in K-12 through assessment solutions, which are expected to see increased demand [52] Other Important Information - The company ended Q4 with $169.2 million in cash and cash equivalents, and $493.3 million in long-term debt, resulting in a net debt to trailing 12-month adjusted EBITDA ratio of 2.2 times [32] - Full year 2021 unlevered free cash flow was $156.6 million, a 124% year-over-year increase [33] - The company plans to use adjusted unlevered free cash flow as its primary cash flow metric moving forward [36] Q&A Session Summary Question: What does the pipeline look heading into 2022 across higher ed, K-12, and international segments? - Management noted continued momentum in the marketplace with a good pipeline build for 2022 and 2023, particularly in U.S. higher education [41] Question: How should we think about the contribution from the new international channel partner program? - Management indicated that the program is a long-term growth strategy and is expected to drive growth in international markets over the next two to three years [42][44] Question: What appetite do schools have for more assessment capabilities in the K-12 environment? - Management highlighted that there is significant demand for assessment solutions to address learning loss, with a focus on real-time feedback for teachers [51][52] Question: Any observations on engagement in higher education as colleges return to session? - Management reported that utilization on the platform remains high, indicating that it has become core infrastructure for teaching and learning [57] Question: How is the competitive landscape evolving in the higher ed space? - Management noted that institutions are looking to re-platform and that Canvas is well-positioned to meet the demands of modern education [63] Question: What is the current penetration of K-12 and assessment markets? - Management estimated that K-12 penetration is around 50%, with significant opportunities remaining in the assessment space [69][71] Question: What is the expected growth rate for the assessment segment? - Management indicated that the assessment segment is growing faster than the core business and is expected to continue to do so [78] Question: What is the hiring environment for tech talent? - Management acknowledged challenges in the competitive labor market but expressed confidence in their ability to attract and retain talent due to their mission and recent public offering [105]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40647 Instructure Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorpo ...

Financial Data and Key Metrics Changes - Instructure reported Q3 2021 GAAP revenue of $107.2 million, representing a 31% year-over-year increase, while allocated combined receipts (ACR) reached $108.6 million, up 24% year-over-year [8][25] - Adjusted EBITDA for Q3 was $41.3 million, with an adjusted EBITDA margin of 38%, an increase from 30% in the same quarter last year [32] - Non-GAAP net income for Q3 was $33.7 million, or $0.25 per share, compared to $24.8 million, or $0.20 per share, a year ago [33] Business Line Data and Key Metrics Changes - Subscription and support revenue accounted for 90% of total revenue at $96.2 million, up 31% year-over-year, driven by the momentum in the Canvas LMS product [26] - Professional services and other revenue made up 10% of total revenue at $11.1 million, also up 31% year-over-year, due to strong implementation and training services [26] - Deferred revenue at the end of Q3 was $287.1 million, up 38% from the previous year, with remaining performance obligations (RPO) at $684 million, up 16% year-over-year [27] Market Data and Key Metrics Changes - Instructure experienced over 30% revenue growth in international markets during Q3 [16] - The K-12 segment saw strong momentum, with a notable win in a top 10 U.S. school district that chose Canvas over a competitor's free offering [15] - The higher education market continues to show strength, with institutions like Johns Hopkins University and Miami Dade College transitioning to Canvas from legacy systems [12][13] Company Strategy and Development Direction - The company is focused on digital transformation in education, leveraging federal funding dynamics and expanding its product offerings through strategic M&A [10][21] - Instructure aims to enhance its platform capabilities and increase its total addressable market (TAM) through acquisitions, such as the recent acquisition of Kimono [21][22] - The company is committed to cross-selling additional products to existing customers, with a growing percentage of new bookings coming from these opportunities [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing strong customer demand and the ongoing digital transformation in education [10][23] - The management noted that the utilization of the Canvas platform remains significantly higher than pre-pandemic levels, indicating its critical role in education [11][53] - The company anticipates continued growth in ACR and adjusted EBITDA for Q4 and the full fiscal year 2021, with guidance provided in the earnings release [37][38] Other Important Information - The company ended Q3 with $231.8 million in cash and cash equivalents, a significant increase from the previous quarter, driven by strong cash collections [34] - Operating cash flow for Q3 was $161.2 million, compared to $100.3 million in the same quarter last year, reflecting strong financial performance [36] - The company expects to recognize revenue on approximately 77% of its RPO over the next 24 months [27] Q&A Session Summary Question: Update on customer conversations and pipeline for 2022 - Management reported consistent customer conversations, with many institutions evaluating their platforms for future needs, leading to an increase in RFPs for 2022 and 2023 [41][42] Question: Strategic value of the Kimono acquisition - The acquisition strengthens Instructure's integration capabilities with student information systems, enhancing the value proposition for partners and customers [43][44][46] Question: Pipeline of state deals for K-12 - Management highlighted strong demand in K-12, driven by significant stimulus funding and a focus on addressing learning loss through technology [50][51] Question: Impact of higher education enrollment trends - Management noted that Instructure's diversified business model mitigates risks associated with fluctuations in higher education enrollments, maintaining stable revenue streams [52][55] Question: Competitive landscape post-Blackboard-Anthology merger - Management observed that customers are still assessing the implications of the merger, but no significant changes in the competitive landscape have been noted [60][61] Question: Pricing trends in the market - Management indicated continued pricing strength in both higher education and K-12 markets, with institutions recognizing the value of quality solutions [99][100] Question: Insights from InstructureCon event - The event saw high attendance, with many prospects participating, indicating its significance as a lead generation opportunity [101][102][104] Question: Overlap between Canvas and Kimono's customer base - Management clarified that the acquisition primarily enhances integration capabilities rather than expanding the customer base directly [108][109] Question: Updates on the Impact solution - The pipeline for the Impact solution is building, with positive feedback expected as it becomes available for K-12 markets [111]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40647 Instructure Holdings, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporatio ...

Instructure Holdings, Inc. (NYSE:INST) Q2 2021 Earnings Conference Call August 17, 2021 5:00 PM ET Company Participants | --- | --- | |--------------------------------------|-------| | | | | April Scee – Investor Relations | | | Steve Daly – Chief Executive Officer | | | Dale Bowen – Chief Financial Officer | | | Conference Call Participants | | | Fred Havemeyer – Macquarie | | | Sterling Auty – JPMorgan | | | Josh Baer – Morgan Stanley | | | Avi Kumar – Jefferies | | | Joe Vruwink – Baird | | | Matt VanVli ...

Instructure, Inc. (NYSE:INST) Q3 2019 Earnings Conference Call October 28, 2019 5:00 PM ET | --- | |-----------------------------------------| | | | Company Participants | | Natalia Kanevsky - VP, IR | | Daniel Goldsmith - CEO | | Steven Kaminsky - CFO | | Conference Call Participants | | Ryan MacDonald - Needham | | Brian Peterson - Raymond James | | Bhavin Shah - Credit Suisse | | Stephen Sheldon - William Blair | | Brian Schwartz - Oppenheimer | | Corey Greendale - First Analysis | | Eric Lemus - SunTrus ...