SALT LAKE CITY — Nov. 1, 2022 — Instructure Holdings, Inc. (Instructure) (NYSE: INST), the makers of the Canvas Learning Management System, today announced financial results for the third quarter ended September 30, 2022.

“Instructure delivered a solid performance in the third quarter, with continued strong top line growth and industry-leading profitability,” said Steve Daly, Instructure CEO. “We remain the platform of choice for teaching and learning and will continue to make disciplined investments that position us to win a disproportionate share of the opportunities across international, higher education, K12 and non-traditional learning while maintaining best-in-class profitability.”

Financial Highlights:

• • GAAP Revenue of $122.4 million, an increase of 14.2% year over year
  • Allocated Combined Receipts*, or ACR, of $122.5 million, an increase of 12.8% year over year
  • Operating loss of $2.4 million, or negative 1.9% of revenue, and Non-GAAP operating income* of $46.2 million, or 37.7% of ACR
  • GAAP net loss of $10.1 million, or negative 8.2% of revenue, and Adjusted EBITDA* of $47.6 million, or 38.9% of ACR
  • Cash flow from operations of $179.9 million and Adjusted Unlevered Free Cash Flow* of $187.6 million
  • For the twelve months ended September 30, 2022, cash flow from operations of $118.9 million and Adjusted Unlevered Free Cash Flow* of $147.5 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:

• • Market research firm ListEdTech reported last month that 33% of all K12 districts are now using Canvas, displacing Google Classroom as the share leader in this segment of the market.
  • Wichita Public Schools converted from a 600-student pilot program during the quarter to implement Canvas across the entire school district with a plan already in place to expand the Instructure Learning Platform further once Canvas is live.
  • University of Texas-San Antonio (UT-SA) selected Canvas as its LMS. UT-SA was already using Instructure’s Impact product and after a long evaluation process, decided to migrate to Canvas due to the engaging learning platform and the power of combining Canvas, Studio, Catalog, and Impact.
  • The University of Galway selected the Instructure Learning Platform after a lengthy evaluation process due to its world-class user experience and unrivaled interoperability.

Business Outlook

Based on information as of today, November 1, 2022, the Company is issuing the following financial guidance.

Fourth Quarter Fiscal 2022:

• • Revenue and ACR* are expected to be in the range of $120.7 million to $121.7 million
  • Non-GAAP operating income* is expected to be in the range of $42.5 million to $43.5 million
  • Adjusted EBITDA* is expected to be in the range of $43.8 million to $44.8 million
  • Non-GAAP net income* is expected to be in the range of $36.6 million to $37.6 million

Full Year 2022:

• • Revenue is expected to be in the range of $471.2 million to $472.2 million
  • ACR* is expected to be in the range of $472.1 million to $473.1 million
  • Non-GAAP operating income* is expected to be in the range of $169.9 million to $170.9 million
  • Adjusted EBITDA* is expected to be in the range of $174.8 million to $175.8 million
  • Non-GAAP net income* is expected to be in the range of $155.2 million to $156.2 million
  • Adjusted unlevered free cash flow* is expected to be in the range of $181.5 million to $182.5 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 and non-GAAP net income, and net cash provided by operating activities, the most closely comparable measure with respect to 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 third quarter results today, November 1, 2022 at 5:00 p.m. ET. The conference call can be accessed by dialing (888) 330-2384 from the United States and Canada or (240) 789-2701 internationally with conference ID 1348899. 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.

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 tens of millions of educators and learners around the world. Learn more at www.instructure.com.