SALT LAKE CITY — Aug. 17, 2021 — Instructure Holdings, Inc. (Instructure) (NYSE: INST), the makers of the Canvas Learning Management System, today announced financial results for the second quarter ended June 30, 2021.

“Instructure delivered strong performance across the board in Q2,” said Steve Daly, Instructure CEO. “We have incredible momentum in the business as the Instructure Learning Platform continues to bring together educators, students, administrators, parents, and partners — connecting them all through a foundational educational platform used for in-person, online, or hybrid models of learning.”

“We have an extraordinary opportunity ahead of us, as we believe the need for a learning platform has never been greater. As institutions navigate a highly complex learning landscape and reimagine the way they educate, we provide the right technologies, tools, and insights to make them successful. As a result, we’re poised to continue delivering a unique combination of revenue growth at scale and best-in-class margins.”

Financial Highlights:

• GAAP Revenue of $93.6 million, an increase of 52% year-over-year
• Allocated Combined Receipts, or ACR, of $95.9 million, an increase of 28% year-over-year
  Operating loss of $12.0 million, or negative 12.8% of revenue, and Non-GAAP operating income of $30.4 million, or 31.7% of Allocated Combined Receipts
• GAAP net loss of $21.7 million and Adjusted EBITDA* of $31.2 million, or 32.5% of Allocated Combined Receipts
• Cash flow from operations of $6.4 million and Unlevered Free Cash Flow of $21.8 million

Initial Public Offering:

Instructure completed its initial public offering on July 21, 2021, for net proceeds of $233.1 million, after deducting underwriters’ discounts and commissions. In connection with the Company’s IPO, the Company made a principal payment in August 2021 of $224.3 million on its outstanding Term Loan.

Business and Operating Highlights:

• In April, we announced the release of MasteryView Assessments, a collection of formative assessments for schools developed by curriculum experts to measure and address learning loss, including gaps caused by the COVID-19 pandemic. These short, pre-built evaluations are aligned to key state learning standards that schools can utilize through MasteryConnect, our assessment management system.
• In June, we released the research findings of our State of K-12 study in partnership with Hanover Research. The industry research explores trends for how the pandemic has impacted K-12 education and identifies the needs and opportunities moving forward for schools. The data underscores challenges in areas like equity, with low-income households more than twice as likely to report difficulty in helping their children remain engaged.
• In June, we also launched the Canvas for Elementary user experience, a combination of features that make our Canvas Learning Management System more user-friendly for elementary students. The new features were developed using feedback collected during the pandemic and thoughtfully designed to more closely mimic an elementary school classroom, supporting both in-person and hybrid learning environments.
• As the quarter concluded, we announced an agreement to acquire EesySoft, a technology adoption vendor that empowers educators and students to more effectively use EdTech products like Canvas. We rebranded EesySoft as “Impact by Instructure,” with solutions designed to help institutions improve adoption of education technologies, seamlessly navigate new platforms, and evaluate the impact they have on student engagement and outcomes.

Business Outlook

Based on information as of today, August 17, 2021, the Company is issuing the following financial guidance.

Third Quarter Fiscal 2021:

• Revenue is expected to be in the range of $100.4 million to $101.4 million
• Allocated Combined Receipts is expected to be in the range of $101.3 million to $102.3 million
• Non-GAAP operating income* is expected to be in the range of $31.1 million to $32.1 million
• Adjusted EBITDA* is expected to be in the range of $32.0 million to $33.0 million
• Non-GAAP net income* is expected to be $21.2 million to $22.2 million

Full Year 2021:

• Revenue is expected to be in the range of $392.1 million to $394.1 million
• Allocated Combined Receipts is expected to be in the range of $400.4 million to $402.4 million
• Non-GAAP operating income* is expected to be in the range of $127.3 million to $129.3 million
• Adjusted EBITDA* is expected to be in the range of $130.3 million to $132.3 million
• Non-GAAP net income* is expected to be $87.2 million to $89.2 million

About Instructure

Instructure is an education technology company dedicated to helping everyone learn together. We amplify the power of teaching and elevate the learning process, leading to improved student outcomes. Today, Instructure supports more than 30 million educators and learners at more than 6,000 organizations around the world.