SALT LAKE CITY — May 1, 2023 — Instructure Holdings, Inc. (Instructure) (NYSE: INST), the makers of the Canvas Learning Management System, today announced financial results for the first quarter ended March 31, 2023.

“In the first quarter of 2023, we achieved outstanding results with $128.8 million in revenue, a 13.6% year-over-year increase and another Rule of 50 quarterly performance,” said Steve Daly, Instructure CEO. “Our dedication to customer satisfaction, efficient market strategy, and innovative platform has allowed us to adapt and thrive even in a difficult macroeconomic backdrop. Looking ahead, we will continue to lead innovation in the EdTech sector while maintaining a healthy balance between growth and profitability.”

Financial Highlights:

• • GAAP Revenue of $128.8 million, an increase of 13.6% year over year
  • Allocated Combined Receipts*, or ACR, of $128.8 million, an increase of 13.1% year over year
  • Operating loss of $5.9 million, or negative 4.6% of revenue, and Non-GAAP operating income* of $47.2 million, or 36.6% of ACR*
  • GAAP net loss of $11.9 million, or negative 9.2% of revenue, and Adjusted EBITDA* of $48.3 million, or 37.5% of ACR*
  • Cash flow from operations of negative $80.9 million and Adjusted Unlevered Free Cash Flow* of negative $63.4 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:

• • The University of Massachusetts – Amherst selected Canvas based on a desire for a common experience for all of their students and faculty, whether they were engaged in a traditional, in-person, online or non-traditional education.
  • Sioux Falls School District selected Canvas LMS, Canvas Studio, and the full suite of Mastery products due to our comprehensive solution, customization capabilities, and our ability to migrate their district benchmark data to Mastery Connect.
  • The Dutch Institute for Public Safety (NIPV) selected Canvas due to our proven track record of integrating Canvas into customers’ existing enterprise architecture, coupled with our experience in both higher education and continuing education.
    Business Outlook

Based on information as of today, May 1, 2023, the Company is issuing the following financial guidance.

Second Quarter Fiscal 2023:

• • Revenue is expected to be in the range of $128.5 million to $129.5 million
  • Non-GAAP operating income* is expected to be in the range of $47.3 million to $48.3 million
  • Adjusted EBITDA* is expected to be in the range of $48.5 million to $49.5 million
  • Non-GAAP net income* is expected to be in the range of $26.0 million to $27.0 million

Full Year 2023:

• • Revenue is expected to be in the range of $521.3 million to $525.3 million
  • Non-GAAP operating income* is expected to be in the range of $194.8 million to $198.8 million
  • Adjusted EBITDA* is expected to be in the range of $199.4 million to $203.4 million
  • Non-GAAP net income* is expected to be in the range of $110.9 million to $114.9 million
  • Adjusted Unlevered Free Cash Flow* is expected to be in the range of $202.5 million to $206.5 million

*Non-GAAP operating income, Adjusted EBITDA, non-GAAP net income and Adjusted Unlevered Free Cash Flow are non-GAAP measures. 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 used in 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.

Effective January 1, 2022, Instructure adopted ASU No. 2021-08, Business Combinations (Topic 805), which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Revenue from Contracts with Customers (Topic 606). As a result, Instructure will no longer present guidance for ACR because GAAP revenue and ACR have now converged.