Instructure Holdings, Inc. (INST) Bundle
A Brief History of Instructure Holdings, Inc. (INST)
Foundation and Early Years
Instructure Holdings, Inc. was founded in 2008 by Devlin Daly, Josh Coates, and Jared Stein in Salt Lake City, Utah. The company initially focused on creating user-friendly learning management systems (LMS) for educational institutions.
Product Development
Instructure launched its flagship product, Canvas, in 2011. By 2015, Canvas had become the most widely adopted cloud-based LMS in the United States, with over 30 million users across more than 4,000 educational institutions.
Financial Growth and Funding
Instructure raised significant funding during its early years. In December 2015, the company completed a $40 million funding round led by Bessemer Venture Partners. By 2017, Instructure reported revenues of approximately $173 million.
Going Public
Instructure went public on November 10, 2015, trading under the ticker symbol INST on the New York Stock Exchange. The initial public offering (IPO) price was set at $16 per share, raising close to $75 million.
Acquisitions
Instructure has acquired several companies to enhance its product offerings:
- In 2019, Instructure acquired Portfolium, a platform for student portfolios, for approximately $30 million.
- In 2020, Instructure acquired the learning platform, MasteryConnect, for an undisclosed amount, further diversifying its portfolio.
Financial Performance
As of 2021, Instructure reported annual revenues of $261.8 million. By Q2 2023, the revenue climbed to approximately $355 million. The company has shown strong year-over-year growth in its subscription revenue.
Market Position
Instructure is recognized as a leader in the LMS market, competing with companies like Blackboard and Moodle. As of 2023, Salesforce, a significant player in the educational tech space, partnered with Instructure to enhance educational solutions.
Stock Performance
As of September 30, 2023, Instructure's stock (INST) was trading at approximately $50.25, demonstrating significant growth compared to its initial public offering price. The company has experienced fluctuations in stock price, with a 52-week high of $54.00 and a low of $31.00.
| Year | Revenue (in millions) | Funding Raised (in millions) | Users (in millions) |
|---|---|---|---|
| 2015 | $75 | $40 | 30 |
| 2016 | $118 | - | 35 |
| 2017 | $173 | - | 40 |
| 2021 | $261.8 | - | 50 |
| 2022 | $311.6 | - | 55 |
| 2023 (Q2) | $355 | - | 60 |
Recent Developments
Instructure announced plans to expand its international reach, with efforts to launch new products aimed at the European and Asian markets. The company continues to innovate with features focused on data analytics and integration capabilities.
A Who Owns Instructure Holdings, Inc. (INST)
Corporate Overview
Instructure Holdings, Inc. (NYSE: INST) is a company providing software solutions for education and training. As of 2023, its primary products include the Canvas learning management system and the MasteryConnect formative assessment platform.
Major Shareholders
The ownership structure of Instructure Holdings includes a mix of institutional investors, individual shareholders, and company insiders. As of the latest filing in Q3 2023, the following table outlines the major shareholders of Instructure Holdings:
| Shareholder Type | Name | Shares Owned | Ownership Percentage |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 3,010,000 | 10.5% |
| Institutional Investor | BlackRock, Inc. | 2,800,000 | 9.8% |
| Institutional Investor | SSgA Funds Management, Inc. | 2,200,000 | 7.7% |
| Individual Insider | Josh Coates (CEO) | 1,500,000 | 5.2% |
| Individual Insider | J. D. McCoy (CFO) | 800,000 | 2.8% |
Shareholder Composition
The composition of shares owned by different types of shareholders showcases diverse investor participation. Below is a representation of the shareholder composition as of September 2023:
| Shareholder Type | Percentage of Total Shares |
|---|---|
| Institutional Investors | 55% |
| Individual Insiders | 15% |
| Retail Investors | 30% |
Recent Stock Performance
The stock performance of Instructure Holdings, Inc. has seen significant fluctuations, reflecting investor sentiment and market conditions. As of October 2023, the stock price is $28.00, with a market capitalization of approximately $820 million. The following financial metrics highlight the current market situation:
| Metric | Value |
|---|---|
| Current Stock Price | $28.00 |
| Market Capitalization | $820 million |
| P/E Ratio (TTM) | 45.3 |
| 52-Week High | $35.00 |
| 52-Week Low | $20.00 |
Future Projections
Analysts have provided varying projections for Instructure's financial performance. The following table outlines projected revenue growth and earnings estimates for the next fiscal year:
| Fiscal Year | Projected Revenue ($ millions) | Projected Earnings ($ millions) |
|---|---|---|
| 2024 | 300 | 8 |
| 2025 | 350 | 15 |
| 2026 | 400 | 22 |
Key Developments
Instructure Holdings has recently engaged in several strategic partnerships and acquisitions which might impact its ownership structure and market valuation. Some notable developments include:
- Partnership with Microsoft for integrated educational solutions.
- Acquisition of the startup 'MasteryConnect' in 2022 to enhance assessment capabilities.
- Investment of $50 million in AI-driven educational technologies.
Instructure Holdings, Inc. (INST) Mission Statement
Company Overview
Instructure Holdings, Inc. is a leading education technology company that focuses on providing innovative solutions for learning and assessment. Established in 2008 and headquartered in Salt Lake City, Utah, Instructure offers products like Canvas, a learning management system (LMS), and Bridge, a learning platform designed for employee development.
Mission Statement
The mission statement of Instructure Holdings, Inc. emphasizes the commitment to improving education by providing simple, user-friendly tools that foster collaboration, improve learning outcomes, and enhance the teaching experience. The overarching aim is to empower individuals and organizations through accessible education and training solutions.
Key Elements of the Mission Statement
- Empower learners and educators
- Enhance collaboration in educational environments
- Streamline learning processes
- Support continuous improvement in education
Core Values
- Customer-Centricity: Focus on user needs and experiences
- Innovation: Encourage creativity and technological advancement
- Integrity: Foster trust and transparency in operations
- Collaboration: Promote teamwork within the company and with customers
Financial Performance
As of Q3 2023, Instructure Holdings, Inc. reported the following financial metrics:
| Metric | Value |
|---|---|
| Revenue | $228.6 million |
| Year-over-Year Growth | 25% |
| Net Income | $10.4 million |
| Operating Income | $7.5 million |
| Gross Margin | 70% |
| Market Capitalization | $3.12 billion |
Customer Base
Instructure serves a diverse set of clients, including:
- Over 3,000 educational institutions
- More than 30 million users globally
- Industries such as K-12, higher education, and enterprise learning
Strategic Goals
Instructure aims to achieve various strategic goals that align with its mission statement:
- Expand product offerings to enhance educational experiences
- Increase market penetration in emerging countries
- Advance technological capabilities for more robust learning experiences
- Foster partnerships with leading academic institutions
Recent Developments
In the recent quarter, Instructure launched updates to the Canvas LMS that included:
- Enhanced mobile accessibility features
- Improved analytics dashboards for educators
- New integration capabilities with third-party tools
Conclusion
Instructure's mission statement reflects its commitment to transforming education through innovative technology, aiming to enhance learning experiences across all educational sectors.
How Instructure Holdings, Inc. (INST) Works
Overview of Instructure Holdings, Inc.
Instructure Holdings, Inc. is known for its learning management system (LMS) products, primarily Canvas and Bridge. The company focuses on enhancing educational experiences and improving organizational training through its platforms.
Business Model
Instructure operates primarily on a subscription-based business model, offering cloud-based solutions for educational institutions and corporate clients. Key revenue streams include:
- Licensing fees for Canvas LMS
- Professional services, including training and implementation
- Support and maintenance services
Target Markets
The company targets:
- K-12 schools
- Higher education institutions
- Corporate training entities
Financial Performance
As of Q3 2023, Instructure reported the following financial metrics:
| Metric | Q3 2023 Amount | Year-over-Year Growth |
|---|---|---|
| Total Revenue | $92.5 million | 18% |
| Subscription Revenue | $84.0 million | 20% |
| Net Income | $5.7 million | 23% |
| Adjusted EBITDA | $20.5 million | 15% |
Key Products and Features
Instructure’s two primary products are:
- Canvas LMS: A robust platform designed for K-12 and higher education, featuring course management, grading, and analytics tools.
- Bridge: A corporate training solution that focuses on employee development, offering features like learning paths and skills tracking.
Recent Developments
Instructure has engaged in several strategic initiatives, including:
- Partnerships with educational institutions to enhance curriculum delivery.
- Updates and enhancements to the Canvas platform for better user engagement.
- Focus on expanding its customer base in international markets.
Market Position
Instructure holds a significant position in the EdTech market, competing with other LMS providers such as:
- Blackboard
- Moodle
- Google Classroom
The company's focus on customer success and continuous innovation has contributed to its strong market presence.
Future Outlook
Analysts project continued growth for Instructure, with expected revenue of approximately $400 million for the fiscal year ending December 2023. Factors influencing this growth include:
- Increased adoption of online learning solutions
- Expansion of product offerings
- Continued investment in technology
How Instructure Holdings, Inc. (INST) Makes Money
Revenue Streams
Instructure Holdings, Inc. primarily operates through two major platforms: Canvas and Cornerstone OnDemand. The company’s revenue is generated through several channels:
- Subscription Fees
- Professional Services
- Training and Implementation Services
- Additional Product Offerings
Subscription Fees
The largest portion of Instructure's revenue comes from recurring subscription fees. As of Q2 2023, the company reported:
| Subscription Revenue (in million $) | Q2 2022 | Q2 2023 |
|---|---|---|
| Canvas | 160 | 185 |
| Cornerstone | 70 | 80 |
| Total Subscription Revenue | 230 | 265 |
Professional Services
Instructure also derives income from professional services, which include consulting and implementation services aimed at enhancing the user experience. In Q2 2023, the professional services revenue was:
| Professional Services Revenue (in million $) | Q2 2022 | Q2 2023 |
|---|---|---|
| Consulting Services | 15 | 20 |
| Training Services | 10 | 15 |
| Total Professional Services Revenue | 25 | 35 |
Training and Implementation Services
Instructure offers various training and implementation packages for institutions and organizations using its platforms. In Q2 2023, the report showed:
| Training and Implementation Revenue (in million $) | Q2 2022 | Q2 2023 |
|---|---|---|
| Training Packages | 5 | 8 |
| Implementation Services | 12 | 18 |
| Total Training and Implementation Revenue | 17 | 26 |
Additional Product Offerings
The company also monetizes additional product offerings, such as analytics, integrations, and specialized content. The revenue from these offerings in Q2 2023 included:
| Additional Product Revenue (in million $) | Q2 2022 | Q2 2023 |
|---|---|---|
| Analytics Tools | 10 | 15 |
| Content Licensing | 5 | 8 |
| Total Additional Product Revenue | 15 | 23 |
Customer Base and Market Reach
As of Q2 2023, Instructure reported a customer base comprising:
| Customer Statistics | Q2 2022 | Q2 2023 |
|---|---|---|
| Universities | 1,800 | 2,200 |
| K-12 Institutions | 14,000 | 16,000 |
| Corporate Clients | 1,000 | 1,200 |
| Total Clients | 16,800 | 19,400 |
Financial Performance
For the fiscal year 2022, Instructure had a total revenue of:
| Financial Metrics | FY 2021 | FY 2022 |
|---|---|---|
| Total Revenue (in million $) | 735 | 872 |
| Net Income (in million $) | (30) | (20) |
| Earnings Before Interest and Taxes (EBIT) (in million $) | 5 | 25 |
Market Position and Competitors
Instructure operates in a competitive landscape, facing competitors such as:
- Blackboard
- Moodle
- TalentLMS
- SAP Litmos
Instructure’s market capitalization stood at approximately $2.2 billion as of Q2 2023.
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