Instructure Holdings, Inc. has recently released its 10-Q report, detailing its financial performance for the three and six months ended June 30, 2024. Instructure provides cloud-based learning, assessment, development, and engagement systems globally, offering a range of solutions including Canvas LMS, Canvas Studio, Canvas Catalog, and Canvas Network, among others. The company's revenue for the three months ended June 30, 2024, was $170.4 million, compared to $131.1 million for the same period in 2023. The net loss for the same period was $20.9 million, up from $11.0 million in 2023. Adjusted EBITDA for the three months ended June 30, 2024, was $73.4 million, compared to $51.3 million in 2023.
In its Management’s Discussion and Analysis of Financial Condition and Results of Operations, Instructure detailed its financial performance for the three and six months ended June 30, 2024. For the three months ended June 30, 2024, the company reported a revenue of $170.4 million, representing an increase from $131.1 million for the same period in 2023. The net loss for the three months ended June 30, 2024, was $20.9 million, compared to $11.0 million in 2023. Additionally, the adjusted EBITDA for the same period was $73.4 million, up from $51.3 million in 2023. For the six months ended June 30, 2024, Instructure reported a revenue of $325.9 million, compared to $259.9 million in 2023. The net loss for the six months ended June 30, 2024, was $42.1 million, up from $22.8 million in 2023. The adjusted EBITDA for the same period was $138.4 million, compared to $99.5 million in 2023.
In addition to its financial performance, Instructure highlighted its take-private merger agreement with Parent and Merger Sub, affiliates of investment funds managed by KKR, a leading global investment firm. Under the agreement, Instructure stockholders will have the right to receive $23.60 per share in cash, subject to applicable withholding taxes. The proposed merger is expected to close during the second half of 2024, and upon consummation, the company will become a privately held entity.
Instructure also discussed the macroeconomic conditions and trends that could impact its business and customer spending, including high inflation, slower economic growth, changes to fiscal and monetary policy, and high interest rates. The company noted that it has experienced high usage on its platform as customers continue to embrace remote learning platforms, generating a positive impact on its gross margin. Instructure also highlighted the surge in non-traditional use case projects entering the market and its strategic position to capture market share in this segment.
The company emphasized key factors affecting its performance, including the increase in adoption of cloud-based software by higher education and K-12 institutions, the opportunity to grow its customer base, and the ability to cross-sell into its existing customer base. Instructure also detailed its revenue sources, including subscription and support revenue, and related professional services revenue, and discussed its cost of revenue, operating expenses, and sales and marketing expenses.
As a result of these announcements, the company's shares have moved -0.2% on the market, and are now trading at a price of $23.32. For more information, read the company's full 10-Q submission here.
